Energy Services Bulletin, December 2004

California consumers flex power save energy

The 2000-2001 energy crisis knocked California for a loop, but the Golden State came up swinging with an outreach program that put blackouts on the ropes and won it the title of conservation champ.

Flex Your Power showed California consumers how to wield their economic clout to reduce energy prices, avoid shortages and lower their energy bills. The program also produced strategies and resources that utilities around the country can use to promote energy efficiency in their service territories.

Impending electricity shortages spur action
As early as the summer of 2000, the state government saw serious electricity supply shortages looming due to increased energy demand, cuts to energy-efficiency programs, drought conditions and powerplant closings. By winter, state agencies ramped up an outreach campaign to encourage Californians to conserve energy.

In April 2001, then-governor Gray Davis unveiled an energy management strategy that identified three key areas: generation and supply-side issues, stabilization and restructuring plans for the power industry and conservation and demand-side management.

The first two elements are critical to meeting the California’s long-term energy needs. The Flex Your Power campaign, however, proved that energy conservation and efficiency are immediate and powerful weapons for managing energy consumption. During the summer of 2001, Flex Your Power reduced California’s energy consumption at peak by as much as 14 percent. One third of the state’s commercial customers and 33 percent of residents cut energy use by at least 20 percent.

The key to California’s historic success was an aggressive, comprehensive outreach campaign that targeted not only the general public, but also specific consumer sectors. Thousands of business, non-profit and local government partners joined state agencies to teach Californians how to shift energy use away from peak hours to avoid blackouts.

Program educates, rewards wise energy use
Flex Your Power launched in summer 2001 with a statewide paid media campaign that reached 95 percent of adult and teen Californians. Also, targeted cable, radio and newspaper ads focused on educating African-American, Asian-American and Hispanic populations.

Incentives played a role in the campaign’s first phase. Under the 20/20 Program implemented in spring 2001, investor-owned utilities gave a 20-percent credit to all business and residential customers who cut energy use by 20 percent or more from the same month in 2000.

The second phase of Flex Your Power launched 13 demand-reducing initiatives in the summer of 2001 and gained momentum through summer 2002. Field staff in Sacramento, San Francisco, Fresno, Los Angeles and San Diego recruited partners across the commercial, local government, water, agricultural and residential sectors to cut energy demand immediately.

Following a successful summer without blackouts, the campaign moved into its third and most important phase—making conservation a way of life and focusing on energy efficiency. Several factors that lead to the 2000-2001 electricity shortages still exist, and the energy crisis taught California that conservation must be part of the solution.

Utilities support program with local strategies
Flex Your Power continues to build on the success of that first summer with a full range of marketing and outreach strategies. Television, radio and newspaper ads; public relations; printed and electronic collateral materials; events, meetings and forums; and a comprehensive Web site spread the energy efficiency message to all Californians.

The campaign works closely with investor- and consumer-owned utilities, water agencies and other energy efficiency service providers to make the most of its efforts. Many Western customers in California are Flex Your Power partners, linking their Web sites to the Flex Your Power site, running campaign ads and public service announcements in their territory and printing joint collateral material.

Flex Your Power has honored Western customers for conservation and efficiency efforts with its annual energy efficiency awards. Burbank Water and Power’s “Torchiere Exchange Program” earned a 2003 award for education and outreach. The program used video footage produced by the city to showcase the dangers of halogen floor lamps and offered residential customers energy-efficient fluorescent lamp replacements. The switch saved an estimated 877 kilowatts annually.

This year’s Innovative Implementation Actions award went to Lawrence Berkeley National Laboratories in partnership with Doubletree Hotels, Sacramento Municipal Utility District and The Watt Stopper. The team researched and tested motion-sensing wall switches in hotel bathrooms. Analysis of data from a 400-room hotel installation determined an average energy savings of 47 percent.

Investment saves energy, dollars over long run
Of course, broad outreach and education programs come with a price tag. California’s initial investment in energy conservation was $250 million for funded incentives, retrofits and other programs including Flex Your Power. The State Senate went on to approve more than $850 million additional funding for 2001-2002.

The campaign was awarded $15 million to run through 2003, and received $30 million total for two years, 2004-05. The state’s Public Goods Charge supplies the bulk of the funding with municipalities, partner organizations and companies also contributing.

Investments have their payoff, however. While it is difficult to measure an outreach campaign’s results, a report sponsored by the California Energy Commission cited striking changes in consumer energy use during summer 2001. Californians reduced electricity usage by almost seven percent and peak monthly summer demand by 8 to 14 percent compared to 2000. Electricity use continued to drop in 2002. Of the consumers surveyed for the study, 70 percent reported taking one or more conservation actions.

Utilities outside California can take advantage of the state’s pioneering efforts in conservation by visiting the Flex Your Power Web site. Although resources like grant and rebate databases, or audits, classes and services apply only to California, the site offers reports, case studies, product guides and energy-savings tips free.

Just think of your utility as an aspiring prize fighter and Flex Your Power as the champ offering to coach you for the big fight against electricity supply shortages. Only instead of learning how to put your opponent’s lights out, you’ll learn the secret of keeping them on.