In this issue
		Energy Services Bulletin home page
		Innovative ownership makes wind farm a good neighbor
		Arizona co-op cleans up with fly ash sales
		California utilities test peak-shifting cooling technology
		BPU helps Kansas City's biotech industry grow
		Updated cooling rebate program targets commercial customers
		Air Force leads Federal agencies in green power purchases
		Resort area utilities grapple with price of popularity
		Energy organizations make plan to encourage efficiency
		EPTC wind farm simulator answers interconnection questions
		Seminar prepares public utilities for Colorado RPS
		Topics from the Power Line: Select the right heat pump for residential heating and cooling
		Energy shorts
		Technology Spotlight: The rising cost of steam
		Calendar of events

Updated cooling rebate program targets commercial customers

Experience can be a great teacher for a willing pupil like Platte River Power Authority which recently updated its four-year-old cooling rebate program based on lessons learned.

The northern Colorado utility launched its Ka$h for Kilowatts program in 2002 to offset growth in electric demand by promoting efficient, productive use of electricity. The cooling rebate component targeted the steady increase in the utility's summer cooling load, and the response outstripped Platte River's expectations almost immediately. The first year, more than 1,400 customers received rebates. Since then, the program has paid out $1.4 million in rebates and shaved 2.8 MW off summer peak demand.

Rebate application different for large AC units

The majority of the 5,400 customers who received rebates turned out to be residential, even though the program was open to small and medium commercial customers. That was mostly because the incentive applied only to smaller units, said Marketing and Community Relations Manager Jon Little. "The cut-off was at about 21 tons," he said. "We figured that the larger units were better handled under the Energy Efficiency Program because it had more stringent standards."

Platte River's EEP targets commercial and industrial accounts with incentives for lighting, motors, heating and cooling and mechanical systems. "It was a different application process than the cooling rebate program, one that was a lot more effort-intensive," said Energy Services Engineer Paul Davis, who manages the program.

And the more complicated the process, the less likely the customer is to go through it, program managers learned. C&I customers' participation in the cooling program was lukewarm compared to homeowners. Then energy prices started their sharp rise, and Davis and Little started getting calls. "Suddenly they had more money to spend on efficiency," observed Little. "That's when we decided it was time to streamline the program."

"The big units are pretty much the same, so the only thing the 21-ton distinction was doing was creating an obstacle for our larger customers," noted Davis. "Opening up the program to all sizes will make it easier for commercial customers to do something they need to do anyway."

Changes reflect rising efficiency standards

Changes in national efficiency standards offered another motivation for revamping the cooling rebate program. The Department of Energy revised its central air conditioning and heat pump specifications this year. As of January, 13 SEER became the minimum efficiency standard for residential air conditioning systems. "Our rebate started with 12 and 13 SEER units. Now that 13 SEER is the minimum efficiency, the rebate is for 14 and 15 SEER," said Little. “We also require that minimum EER levels be met. All qualifying equipment is included in the Consortium for Energy Efficiency’s Residential Tier 1 or Tier 2 groups.”

Platte River's annual customer survey showed that most people have been putting 10 SEER units into their homes, he added. "A lot of the market is new construction, and 10 SEER has been the standard in the building industry," Little said. "Changing that market is very difficult."

Changing the program's focus to a market segment with a growing interest in efficiency is easier. The partnership network of local vendors is well established, although there are only a handful of commercial dealers in the area. "We made an effort to meet with them in person, since they had less experience with the program than residential dealers," Little said.

Otherwise, dealers are pretty familiar with the cooling rebate program after four years, he said. Each year, Platte River sends vendors a package with program rule updates, flyers and applications. "They are very supportive," Little acknowledged. "The higher initial cost of high-efficiency units means a bigger commission for them."

Consumer marketing strategy stays same

Dealers do most of the marketing to consumers. The retail utilities Platte River serves—the cities of Estes Park, Fort Collins, Loveland and Longmont—help. "They promote the program with billing inserts and customer newsletters. We all do a minimal amount of advertising," said Little.

Fort Collins and Longmont also promote the program with links to Platte River on their utility Web sites.

That strategy worked well for the first version of the cooling rebate program, so Platte River plans to continue it in 2006. And if marketing to commercial customers means learning a few new tricks, Platte River Power Authority is a quick study.