In this issue
		Energy Services Bulletin home page
		Utility contest shows how energy-efficiency improvements pay
		California updates building standards to cut energy use
		Wyrulec loan program grows local business
		Efficient lighting takes off at California airports
		Nebraska's first digester produces energy, controls hog odor
		Granite Falls, Minn., offers customers first conservation incentive
		Utility's biodiesel fleet promotes New Mexico clean energy goal
		Arizona sun powers sustainable farming experiment
		Western governors map out region's renewable energy future
		Heating calculator helps utility promote electric heat systems
		Topics from the Power Line: Saving energy, maintenance with LED exit signs
		Energy shorts
		Technology Spotlight: Insulating Process Steam Systems
		Calendar of events

Utility contest shows how energy-efficiency improvements pay

The grand prize winner in DMEA's Home Energy Makeover contest was a 2600-sq. ft. house built in 1945 and expanded in 1959. It used 16,100 kWh and 1,200 gallons of propane annually. (Photo by Delta Montrose Energy Association)

On makeover shows, the lucky subjects receive thousands of dollars worth of merchandise, services and—most important—expert advice to transform their wardrobe or living room or car. Wouldn't it be great if the shows told those of us who don't have that kind of money or technical assistance which changes we could make at home to get the most bang for the buck.

Contestants look at home energy bills

Delta Montrose Energy Association took that extra step with its Home Energy Makeover Contest last fall, and everyone came out a winner. "Our goal was to show how a one-time investment in energy-efficiency improvements can save homeowners money every month for as long as they own the home," explained Ed Thomas, marketing director for the DMEA subsidiary Intermountain Energy. "We also wanted to make a compelling case for homeowners to make the improvements themselves."

The southwestern Colorado cooperative partnered with the Colorado Energy Science Center and several local businesses to offer its members the chance to win $25,000 in energy-related home improvements. Entrants had to ponder the questions, "Are your home energy bills higher than your neighbors? Are your home energy bills higher than anyone's in DMEA's service area?"

In addition to the grand prize, two runners-up received $10,000 in energy-related improvements. Seven members won a free energy analysis of their homes to determine the best ways to cut their energy bills. Consumers got a Home Energy Makeover Guide to help them make their own improvements. DMEA and CESC got benchmarking data, a network of contractors and the framework for a new business line for Intermountain Energy.

Selecting finalists

The contest kicked off in August 2005, and received 130 entries. Typical DMEA member homes—1,000 to 2,500 sq. ft., with no unusual types of major energy use—were eligible to participate.

Entrants had to give CESC permission to review their total energy bills, including electricity, gas and propane, for the last 12 months. CESC calculated the total BTUs and divided by the home's square feet to get the BTUs per sq. ft. use. From those calculations, a review team selected the 30 highest energy users.

Finalists had to be willing to open their homes to the media for publicity and to the review team comprising representatives from DMEA, CESC and business co-sponsors. The review team did a walk-through at about 20 homes. "Homes where the owners had already made improvements and buildings with serious structural problems were disqualified," said Thomas. "We came up with 10 finalists to receive an extensive home energy efficiency performance analysis with a blower door test."

Data determines prize package

CESC plugged the data into TREAT, a software program developed by the National Renewable Energy Laboratory and New York State Energy Research and Development Authority. TREAT models the home's energy use based on the building shell and appliances and “trues up” the model with the homeowner’s 12 months of actual use and local weather data.

When local contractor costs are entered, the program produces a menu of cost-effective improvements that can be grouped into price levels: good (up to $2,500), better (up to $10,000) and best (up to $25,000). "It was critical to find a software program that worked with real data and treated the house as a system," said Thomas. "TREAT was good for that. It shows people which investments pay for themselves."

The grand prize winner was a 2,600-sq. ft. home built in 1945 and expanded in 1959 that used 16,100 kWh annually and 1,200 gallons of propane for heating. The most cost-effective investment of $2,500 would be adding cellulose insulation to the attic and crawlspace, sealing air leaks, installing low-flow faucet aerators and showerheads and replacing 10 incandescent bulbs with CFLs.

The next level includes all those measures, plus upgrading the boiler and water heater and installing Energy Star windows. The best package—the one the winners received—replaced the propane furnace with a geothermal heat pump. "If we assume that the owner refinanced his mortgage to borrow the money for the upgrades, these are the improvements that would save more money monthly than the loan added," said Thomas.

Makeover could launch business

Co-sponsoring businesses donated systems and equipment for the contest, resulting in an alliance of providers, and the occasional surprise. "One vendor donated an air purifier system," Thomas recalled. "Air quality is not an energy efficiency issue, but the owner said that when his wife fries fish, they don't have to open the windows. So there was an energy savings component after all."

If a system was identified as cost-effective and there was no donor, DMEA bought it and installed it anyway. "We're looking to demonstrate a whole menu of energy-efficiency concepts," noted Thomas. "If a measure can save the homeowner money, it's worth the investment to us to have a working example."

That market-based approach hints at the direction DMEA may take with the benchmarking data, vendor network and analysis tools the contest brought together. "The Home Energy Makeover could be the launching pad for a new business," Thomas said. "This isn't about creating a market for free energy audits. We need to see if people are interested in a comprehensive service to help them improve their home's energy performance."

At a November workshop DMEA held on how to launch a home energy efficiency program, about half the participants said they would be willing to pay for such a service. "No one is doing the whole package right now," Thomas said, adding that logistics like certification would have to be worked out.

In the meantime, consumers can visit the Home Energy Makeover Guide to learn more about energy-saving improvements that pay. The guide is available through a licensing agreement DMEA has with Apogee through TriState Generation and Transmission Association. "It's quick and free and anonymous, but it gets the idea across." That is, with a few small improvements, you too can transform your energy bill.