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ETS incentive still works for Colorado utility, customers

MPEI's Master Electrician Guy Larson (left) and Member Services and Marketing Manager Gary Ashby inspect an installation of a Steffes ETS hydronic heating system. (Photo by Rob Taylor)

The sign of a good program is its ability to change with the times and remain popular. Take the special rate package Mountain Parks Electric, Inc., offers to customers installing electric thermal storage heating. At 10 years, it is still going strong.

ETS systems store heat in high-density ceramic bricks during off-peak hours when electricity costs less to supply. The 100-percent efficient units provide homeowners with clean, safe electrical heat at economical time-of-use rates. Utilities benefit, too, by increasing their off-peak loads.

Program created to shape load

That was the reason the north central Colorado utility launched its ETS program back in 1995. "We had some big valleys in our load in the middle of the day and overnight," explained MPEI Member Services and Marketing Manager Gary Ashby. "ETS offered a solution that would also help our customers save money."

The program started out with room units that MPEI bought from the manufacturer, Steffes Corp. in North Dakota and sold to customers. Two MPEI electricians were trained to install the systems initially. "There are some local licensed electricians who like the technology and can do installs, now," said Ashby.

After a round of billing inserts to announce the ETS offer, word of mouth was all that was needed to keep the two electricians busy. "The technology didn't really need a big marketing push," recalled Ashby.

Improved systems, energy costs keep interest up

Ten years and 350 ETS systems later, MPEI's mission has been accomplished. "The program was so successful that it flattened our load curve," said Ashby.

The utility was not about to discontinue a program that had worked so well, but it was time to make a few changes. A new rate structure went into effect for customers installing ETS systems after Jan. 1, 2005. They receive off-peak rates between 10 p.m. and 7 a.m. Past participants were grandfathered in at the old off-peak times of 11 a.m. to 5 p.m. and 10:30 p.m. to 6 a.m.

That hasn't affected the popularity of the ETS systems, however, said Ashby. "With the increase in natural gas and electricity prices, we've been getting a lot of inquiries," he noted.

Changes in ETS technology have helped to keep the system in demand. In addition to the room unit that started it all, a centrally-ducted, forced-air furnace became available about five years ago. The Comfort Plus unit can be used as a stand-alone furnace or can be installed with a heat pump for greater efficiency and savings.

The latest version of ETS adds a hydronic boiler system for greater flexibility. A heat exchanger transfers the stored heat to a water or glycol solution, which is circulated through a delivery network when heat is needed. Most of the hydronic systems MPEI installs deliver heat through a radiant floor, although baseboard radiation, free-standing radiators and forced air systems can also deliver the heat. Like the ETS forced-air furnace, the hydronic system can be combined with a heat pump.

Good payback may get better

Program participants are split about half and half between new installs and retrofits, Ashby reported. The hydronic systems have been very popular with customers building new, large and up-scale homes in MPEI's territory, he added. The retrofits mainly replaced electric resistance baseboard heaters and propane systems.

Depending on many factors, including the size of the home and the tightness of the building envelope, owners can expect a 5- to 15-year payback. "Compared to propane, it's going to be sooner," Ashby said. "Rising natural gas prices are going to improve the equation, too."

ETS units may get some competition from other electric heating options. In addition to ETS rebates, MPEI also offers rebates on heat pumps and new installations of controlled resistive heat through power wholesaler TriState Generation and Transmission Association. Energy efficiency, after all, is not a one-size-fits-all proposition. Electric thermal storage still ranks as a timeless classic that can change with the times, though, and Mountain Park Electric knows that won't go out of style.