addressing climate changerelaymagazine.org/wp-content/uploads/2013/07/relay_vol43...joe n.linxwiler...

Impact of Demand-side Management and Real-time Pricing 15 | Profi le: FMEA President Kevin McCarthy 18

Volume 43, Issue 1 Winter 2008

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Florida’s energy and electric utility magazine

Addressing Climate Change

Volume 43, Issue 1

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Winter 2008 | Volume 43 | Issue 1

COVER STORY

Environmental and Energy Leaders

Make Recommendations for Addressing Climate Change

FMEA staff asked Florida Energy Commission

Chair Tommy Boroughs;

Florida Representative Stan Mayfield;

FMEA President Kevin McCarthy;

and FMEA Executive Director, Barry Moline

to discuss their recommendations for addressing climate change in

Florida.

FEATURESImpact of Demand-side Management

and Real-time Pricing

FMEA Explores DSM effects with Florida Energy

Efficiency and Conservation Act participants and new technologies

with DSM technology providers.

Profi le: FMEA President Kevin McCarthy

FMEA President Kevin McCarthy shares his views on current util-

ity issues and FMEA leadership.

COLUMNS/DEPARTMENTS

Ohm Page – Perspectives on Climate Change

APPA Washington Report – The Climate for Coal

Where in the World is Relay?

Index to Advertisers

Events Calendar

FSU Meteorologist Tracks Hurricanes

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15

18

7

13

20

21

22

NTTENTSCONTENTS

Profi le: FMEA President Kevin McCarthy

18

Environmental and Energy Leaders Make Recommendations for Addressing Climate Change

Impact of Demand-side Management and Real-time Pricing

2006 Florida DSM Comparisons

Percent ofCustomers

Percent ofTotal from

EE & DLC MWAverage KW

per customer

6.5% 17%

UnitedStates

Florida

Florida is 124% more cost effctive per MWHachieved than USA DSM MWH average

- Saving Florida ratepayers an estimated

$293 million in program costs

Source: DOE EIA F861 2006 Report

USABalance Florida

$21.30

$9.507.0

5.7

15

9

www.publicpower.com | Winter 2008 | RELAY 5


Winter Volume 43, Issue 1

RELAYFLORIDA’S ENERGY AND ELECTRIC UTILITY MAGAZINE

www.publicpower.com/relay • [email protected]

FMEA Board of Directors

PresidentKevin McCarthy, Clewiston

President-ElectLynne Tejeda, Key West

Vice PresidentEdward J. Regan, Gainesville

Secretary/TreasurerPaul Kalv, Leesburg

Immediate Past PresidentTeala Milton, Jacksonville

DirectorsBill Bogan, Quincy

Don Bowles, Green Cove SpringsCal Byrd, Williston

James F. Coleman, WillistonZoila Easterling, OrlandoSamy Faried, Lake Worth

George D. Forbes, Jacksonville Beach

Lee Garner, ChattahoocheeRichard Giroux, Wauchula

Gregg Griffi n, Green Cove SpringsLou Hernandez, Key West

Fred Hilliard, Ft. MeadeAllan J. Katz, Tallahassee

Ken Konkol, HomesteadJames A. Lewis, Alachua

Rebecca M. Mattey, OcalaDonald McBride, Winter Park

Howard McKinnon, HavanaMike New, Alachua

Harry Ogletree, Moore HavenDon Ouchley, Jacksonville Beach

Bud Para, JacksonvilleJames Pittman, Clewiston

Bill Polk, LeesburgJeffrey D. Porter, Homestead

Charles F. Revell, Mount DoraThomas W. Richards, Fort PierceRobert Rodi, New Smyrna Beach

Vicente R. Ruano, BushnellMike Shehadeh, Homestead

R.B. Sloan, Vero BeachJames Stanfi eld, Lakeland

Thomas B. Tart, OrlandoRicky Thompson, Starke

Mike Wade, QuincyJerry Warren, Winter Park

Kevin G. Wailes, TallahasseeJames C. Welsh, Kissimmee

Jaqmes Woods, BlountstownCamille Yates, Ft. Pierce

FMEA Executive DirectorBarry Moline, Tallahassee

PUBLISHED JANUARY 2008/FLE-Q0108/6809Publication Mail Agreement 40787580

Relay is a publication of the Florida Municipal Electric Association, 417 East College Avenue, Tallahassee, FL 32301. For permission to reprint articles, contact FMEA. © 2008

Editor-in-ChiefNicole Carlson [email protected]

Associate Editor/Contributing DesignerGarnie [email protected]

DesignerJill Ihasz

Contributing WriterBarry Moline

CirculationBrenda Thompson

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Ohm Page

Perspectives on Climate ChangeBy Barry Moline, FMEA Executive Director

TThere’s an old story about a group of blind men tasked with describing an elephant. One touches its tail and says it’s a rope. Another puts his hand on the elephant’s giant side and says it’s a wall. A third grabs its leg and says it’s a tree. A fourth touches its trunk and says it’s a snake. All are correct, but at the same time, none are. To get the complete picture, we must pull all the information together.

That’s what this issue of Relay is about. We asked FMEA members, industry stake-holders and Florida policy-makers for their perspectives on climate change. Separately, they describe “the elephant” from many points of view. Like it or not, since little is actually de-fined at this time, it’s you who must formulate the image in your mind of where we are and where we are headed on this climate-change journey.

This issue of Ohm Page was compiled from FMEA members’ opinions on climate change. Thanks to everyone who contributed – anonymously. They report, you decide!

Complex Systems Don’t Always Have Predictable Outcomes

In the 1800s, certain people “in the know” predicted that unless something was done about horses, cities would be knee-deep in horse manure within 25 years. So goes the idea that complex systems will result in simple, predictable outcomes.

Unfortunately, the whole “green/climate change/environmental/sustainability” issue has become a media-inspired, politically motivated boondoggle.

Everyone has jumped on the bandwagon.

Greenwashing abounds. Just the other day, I was in a store that featured “Eco-Friendly” plants. I thought maybe they were organic (an-other definition of green), but no, they were sim-ply plants. Certainly all plants are “eco-friend-ly,” unless you happen to think that flesh-eating plants like the Venus Flytrap cross the line.

We Need to be on the Same Page

I wonder how the overall economy of Florida will “sustain” the multiple assaults of even moderate costs of climate change, hurricane insurance coverage, property tax impacts on services and quality of life and potential reductions in electric reliability caused by the reduced ability to construct supply side resources...or get fuel (i.e., natural gas) for those conventional technologies that might still be constructed.

We see significant philosophical differ-ences and opposing goals between the climate- change discussion and proposed solutions and the direction of the increasingly more stringent mandatory electric reliability standards. One would have us build no significant electric sup-ply resources and the other would have us build more. How long must it take for everyone to get on the same page?

Not Enough Bad News to go Around

I keep thinking about my dad – who lives in coastal Maine – and global warming. He said he is planning on being the first palm tree farmer there, if the climate forecasters are to be believed.

It does feel a little like Armageddon. Or

maybe there isn’t enough bad news to go around through the media and we need something that sounds as imminently catastrophic as rising seas and huge hurricanes. Maybe the climate is no worse off now than it was decades ago.

Hoax or truth, global warming isn’t going to change anyone’s way of life unless and until it hits them in the pocketbook. So maybe that’s where the electric and oil industries come into play. If the prices of non-renewable, greenhouse-gas-causing energy fuels and technologies keeps going up, it will be cheaper to be green. But not until then.

The Sky is FallingWhat is clear to me is that there is a

coming together of “Chicken Little” and “bandwagon” effects that will likely result in much more expensive power and potential for wrecking the United States’ economy while achieving negligible effect on the climate.

Consumers Feel Betrayed Consumers are revolting, at least in

my town. Many here do not see it as a global issue and think it’s a local, unfair, overpriced utility contributing to their high bills. They marched on city hall twice this year and threaten to continue until changes are made with our rates. To quote a col-league in a conversation today, “How come they’re not picketing the gas stations and grocery stores?”


Ohm Page continued

Our Dependency Can Hurt us

If we could use our own oil and not be dependent on other countries, it might not be so bad, but to be as dependent as we appear to be, especially since the United States is now a debtor nation, owing just about all of our known enemies enormous amounts of money. It’s an embarrassment to me that we have allowed ourselves to get into this mess.

Look back 20 years and see what has been accomplished; and I know that we will continue to have changes in the future.

We’ve Become Complacent I started in the electric industry in

1970, so I was around for the Arab Oil Embargo and the instant increase in electric rates. Once people became aware of the situation, changes were made. Heat Pumps

replaced resistance heat, homes became bet-ter insulated, and for a couple of decades, things were looking up. I believe the term that best describes what happened next is “complacency.” The size of homes began to slowly increase, and the amount of neat stuff, all using electricity, rapidly increased.

Unfortunately, the least fortunate among us will be hurt the most as the electric industry and government struggle to find the right answer to a problem that impacts ev-eryone. With other countries struggling with their own version of an “Industrial Revolu-tion,” the competition for limited resources will make this a worldwide problem.

Long-term Goals Take TimeDecisions made today are similar to

the captain ordering a direction change for an ocean liner – it takes a long time to see much change in direction – and it’s incre-mental, not a 180 degree swing overnight.

Nuclear Acceptance is Needed

It should be important for those involved in the power industry to focus edu-cational efforts on gaining more acceptance for nuclear energy from the general public.

Positive Hoax? We’ll learn to live and be more energy

efficient as a result of the global-warming issue. This is a good thing. If it is a hoax, it will be a hoax with a positive benefit.

Our Choices Leave Footprints

The choices we make every day are leaving footprints. If our footprints are too deep or big, then the earth cannot heal or repair the damage we leave behind. It is no different than if we put a cut on our body every day. If we cut too deep or too large a wound, then our body cannot heal, and we die. Why would we think the earth is any different?

We are InsignificantWe are insignificant to a great degree,

and are fooling ourselves if we believe we can change planetary evolution. Just look up at a moonless, cloudless night sky and consider how we fit into the universe.

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Environmental and Energy Leaders Make Recommendations for Addressing Climate Change

From FMEA Staff Reports

FMEA staff asked Florida Energy Com-mission Chair Tommy Boroughs; Florida Representative Stan Mayfield; FMEA President Kevin McCarthy; and FMEA Executive Director, Barry Moline to discuss their recommendations for addressing climate change in Florida.

FMEA: What are your recommen-dations regarding meeting Governor Crist’s 2050 energy goals and beyond?

Boroughs: The interim greenhouse gas-reduction deadlines pose more immedi-ate challenges than the 2050 deadline. De-termining how best to meet the first goal is a major part of the answer to achieving the two later ones.

Measures adopted by the Florida En-ergy Commission (FEC) would call for re-ducing Florida’s greenhouse gas emissions to 2000 levels by the year 2020, 1990 levels by the year 2030, and 80 percent of 1990 levels by the year 2050.

The FEC’s greenhouse-gas emissions re-duction goals begin three years later than Gov. Crist’s, which set targets for 2000 levels by 2017 and 1990 levels by 2025. The reason for this is to allow enough time for Florida’s utilities to begin the process of adding more nuclear gen-eration to Florida’s mix. Currently, there are no pending permits on new Florida nuclear plants, which generally take at least 10 or more years to plan, permit and construct.

The extra three years also affords utili-ties more time to give biomass and solar en-ergy – both considered to be strong renew-able energy candidates in Florida – enough time to become affordable and more widely available for deployment. Solar photovoltaic (PV) panels are commercially available now, but can be cost-prohibitive. The industry pre-dicts the price of solar PV will be cut in half before 2015.

Mr. Boroughs is chair of the Florida Energy Com-mission. He is a partner in the Orlando office of Holland & Knight, focusing his practice in the areas of zoning and land-use regulatory matters and real-estate acquisition and sales. He currently serves as chairman of the firm’s Florida Land Use Team. He is a board member of the Orlando Utilities Commission, upon which he served as president from 2004-2006.

He is the immediate past chair of the Policy Makers Council of the APPA, and in this role served as an ex-of-ficio member of the APPA Board of Directors.

Tommy Boroughs

Mayfield: I believe it is premature to provide recommendations regarding the Governor’s 2050 energy goals. The issues and goals raised by Gov. Crist in his three executive orders this July, as well as the recommendations of the Governor’s Action Team on Energy and Climate Change pro-posed in November, are welcome additions to the ongoing discussions Florida policy-mak-ers and citizens are having regarding future energy and environmental goals and policies

Rep. Stan Mayfi eld

Rep. Mayfield, Rep (D-80) is chair of the Envi-ronmental and Natural Resources Council; vice chair of the Policy and Budget Commission and serves on the Rules and Calendar Council.

for the State of Florida. The Florida House of Representatives

is pursuing a deliberate process to define en-ergy and environmental goals for Florida that are achievable, and to develop cost-effec-tive policies that can reasonably be expected to achieve these goals. This process will build on last year’s comprehensive energy legisla-tion, which was unanimously passed by both the Florida House of Representatives and the


Florida Senate. Although the bill was vetoed, I believe

the goals and policies included in the bill are sound and continue to be widely sup-ported. In brief, these goals included en-suring the reliability and affordability of Florida’s energy supply through economi-cally and environmentally sound policies. The climate change goals and recommenda-tions proposed by Gov. Crist and the Action Team, as well as the underlying problems they are designed to address, have been and will continue to be included in our delibera-tions.

McCarthy: I think all energy pro-viders need to pursue the best available tech-nologies from an economic, environmental and reliability standpoint. This will be a broader mix than we are currently using and will force consumers to rethink their en-ergy use, and how we as providers deliver the service.

Moline: Addressing climate change will require thinking differently about the way we have become accustomed to liv-ing. Most folks don’t pay much attention to how they use electricity, except maybe once a month when they get their bill. There’s just not a lot of financial feedback when you turn on the light.

This will need to change if we’re going to meet Gov. Crist’s 2050 goal. The solution won’t be a single technology, but a variety that will each play an important part in re-ducing carbon emissions. For example, solar water heating will help reduce demand, and nuclear energy will provide clean carbon-free supply. Expanding demand-response will

Kevin McCarthy is the president of FMEA. He is utilities director for the city of Clewiston. He serves as treasurer of the Florida Municipal Power Agency (FMPA). He has served on FMPA’s Executive Com-mittee for three years and has been on the Board of Directors since 2002.

Prior to joining the city of Clewiston, he served 14 years as the owner and manager of Glades Gas Com-pany.

Kevin McCarthy

allow customers to adjust their consumption with information about pricing. We need to avoid energy prices rising too much making electricity unaffordable and literally forcing people to shut off their air conditioners on blistering-hot summer days.

FMEA: What are your recommenda-tions for electric utilities seeking to address these issues and work toward these goals, while meeting the challenge of providing reli-able energy to their customers?

Boroughs: A major tenet of our overall goal has been to form recommenda-tions for an energy policy that both utilities and their customers could afford and em-brace, and that will decrease our statewide energy use. Direct input from utilities has been, and will continue to be, critical to get-ting this right.

This year, Florida’s utilities have pro-vided a strong showing in terms of meeting attendance, advisory group participation and general input in the FEC’s process of determining what we would recommend to lawmakers. They have given us a wealth of energy information and have illustrated their individual positions as stakeholders in this process.

The status of energy in Florida, the U.S. and the world is perpetually changing. As a result, energy policy is ongoing. State government will need Florida’s utilities to continue to actively participate in future years to help provide sound policy options and ultimately, the best outcome for Florid-ians.

Mayfield: I encourage Florida’s elec-tric utilities, as well other affected groups

and citizens, to actively engage in the on-going discussions regarding Florida’s future energy and environmental goals. The con-sequences of the goals and policies we enact today for the future of Florida are too pro-found to avoid the difficult discussions and decisions we face. It is my hope that through an open, deliberative process, policy-makers will base their decisions on the best science and economic information available.

McCarthy: From the standpoint of a very small utility, we do not have the staff or expertise to pursue energy conservation goals on our own. It has to be a collabora-tive effort between local, state and federal government as well as municipal and in-vestor-owned utilities. Best management practices and best available technologies have to be evaluated, promoted and some-times subsidized in order for them to be ac-cepted by the consumer.

Moline: Ghandi said, “The journey of a thousand miles begins with a single step.” Thus, we need to continue down the road of implementing options, such as en-ergy efficiency and renewable energy. That means designating a budget for these tech-nologies and programs, but limiting the cost so that any price increase to consumers is modest.

FMEA: Please share any concerns you have with meeting the 2050 goal or any problems that may arise while working toward these initiatives.

Boroughs: Like anything else, en-ergy policy is subject to financial costs and perceived social costs. $100 million recently was trimmed from Florida’s budget, leaving less revenue at both state and local levels. Innovative thinking will be required to find ways to fund the energy-related programs and initiatives that can help us accomplish these goals. Without it, it will be difficult and in some cases, impossible, to protect new and existing energy-related programs and initiatives. The FEC plans to address the issue of creating a dedicated revenue source for energy-related programs in its 2008 re-port to the Legislature.

Another major concern is the need for a unified infrastructure for energy policy within state government. Currently, several state entities oversee some aspect of the util-ity industry and other energy sectors. The process needs to be streamlined to clarify re-


McCarthy: I have two large con-cerns: the actual price increase of power in order to implement these programs as op-posed to the future price increase of doing nothing and facing the NIMBY (Not in My Back Yard) attitude of some consumers when it comes to siting power plants, solar arrays, wind turbines, biomass facilities and transmission facilities.

If you have a south facing home in Florida, what are the chances you are going to cover your roof with solar panels or give up a large portion of your yard for a solar array? Energy conservation and renewable energy is only going to be accepted when it has little impact on the daily lives of our consumers.

Moline: Utilities’ greatest collective concern is that poorly designed regulation will require a sudden and giant financial investment that will devastate consum-ers’ budgets. Utilities see up-close customers who cannot pay their bills, and the num-ber requiring assistance is growing. Add climate-change mitigation compliance costs, and there’s only one direction for prices to go – up.

Addressing climate change is a com-plex issue. We need to learn as much as

sponsibilities and increase effectiveness. The FEC’s 2007 Report to the Legislature ad-dresses this concern by proposing an increase in the Commission’s responsibilities, and making it Florida’s primary energy-policy forming body.

Also, finding ways to motivate behav-ioral changes regarding energy use may be challenging. Consumers may view the ini-tial additional costs of some energy-efficient appliances and products as prohibitive. But the energy savings many of these products provide often can pay for any additional product cost. Innovative ideas will be needed to determine how to help consumers understand why investing in these products makes long-term sense.

No energy policy can be a true success without energy consumers’ participation. It will be a challenge to the people of our state to begin thinking about and using energy more efficiently, and as a finite resource, and not an unlimited one.

Florida’s current energy situation didn’t materialize overnight, and we can’t change it overnight. But I believe that a strategic approach based upon a unified ef-fort on the part of Florida’s citizens, busi-nesses and government can change it.

Mayfield: As noted above, the House currently is in the process of devel-oping energy and environmental goals and the policies to achieve these goals. As part of these discussions, we have already initiated an examination of the underlying climate-change concerns Gov. Crist’s goals and rec-ommendations are designed to address.

This discussion will continue with an examination of Florida’s ability to address these concerns, the possible costs and benefits associated with the Gov.’s goals and recom-mendations, and the relationship between these goals and policies and other energy and environment goals, such as the reli-ability and affordability of Florida’s future energy supply.

we can and be the local expert when our communities discuss pros, cons and actions. We need to engage our legislators and cus-tomers and tell them how much it will cost, and reassure them that we’re committed to providing reliable, affordable and environ-mentally responsible power.

Barry Moline

Barry Moline has been FMEA Executive Direc-tor since 1996. He represents Florida’s public power utilities before the Florida Legislature, regulatory agencies such as the Public Service Commission, the U.S. Congress, and in general, is Florida’s ambas-sador for public power.

“ ”We try to ascertain what the best opportunity is for the rate payer. We ask ourselves, ‘How will the decision affect them?


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APPA Washington ReportTHE CLIMATE FOR COALBy Robert Varela, Editor, Public Power Weekly

C committee, the bill isn’t likely to be reported out by the full committee this year. Boxer promised a series of hearings and briefings before the committee tackles the legislation.

Their bill, America’s Climate Security Act, S. 2191, is projected to reduce United States greenhouse-gas emissions by as much as 19 percent below the 2005 level (4 percent below the 1990 level) in 2020 and by as much as 70 percent below the 2005 level in 2050.

States are not waiting on the feds. Western states are talking about their own version of the Northeast states’ Regional Greenhouse Gas Initiative. Citing the Supreme Court’s ruling that carbon dioxide fits the Clean Air Act’s definition of a pollutant, Kansas became the first state to use global warming as a reason for denying an air permit to a proposed coal-fired power plant. Proposed coal plants were derailed by state officials in Florida and Oklahoma, hardly known as bastions of liberal environmentalism.

Keeping up with this changing landscape is difficult. When En-ergy Northwest first proposed to build an IGCC plant, “I thought we had the perfect plant in the perfect place at the perfect time,” Energy Northwest attorney Bill Prentice told the Legal Seminar. But the state Legislature last year passed a bill that essentially limited emissions

Congress and some states are starting to get serious about global climate change. Enactment of a federal law is still some time off. A bill is not likely to make it to the President’s desk for his signature until after the 2008 elections, APPA Senior Vice President of Government Relations Joe Nipper says. Speaking at APPA’s Legal Seminar, he said legislative activity on the issue has slowed, particularly in the House. That “is a good thing because it’s a hugely important and hugely complex issue.”

Early in this Congress, House Energy and Commerce Committee Chairman John Dingell, D-Mich., and Energy and Air Quality Sub-committee Chairman Rick Boucher, D-Va., indicated they expected to mark a climate-change bill by October and have it ready for floor action. Dingell and Boucher instead recently issued a white paper, the first in a planned series.

The white paper offers some detail on a cap-and-trade system, such as the point of regulation for different sectors (at the generator for the electricity industry). However, the paper is less definitive on other issues, with only a brief mention of possible consideration of comple-mentary measures (such as carbon taxes and energy efficiency or other performance standards), Nipper said. The white paper also notes that some issues, such as the point of regulation for the industrial sector, will be difficult to resolve.

Given all of that, the House Energy and Commerce Committee is not likely to act on a climate change bill this year, Nipper said.

The Senate is moving a little faster, with Sens. John Warner, R-Va., and Joseph Lieberman, I-Conn., having introduced a cap-and-trade bill that has been tagged as a vehicle for action. The Warner-Lieberman bill, S. 2191, is “a perfect place to start,” Senate Environment and Public Works Committee Chair Barbara Boxer, D-Calif., said. “Today will be remembered as a turning point in the fight against global warming,” she said of its introduction.

As this was being written, the Subcommittee on Private Sector and Consumer Solutions to Global Warming and Wildlife Protection (with Lieberman as chair and Warner as ranking minority member) was poised to mark the bill. While it may well make it past the sub-“ ”

Moving forward, we plan to focus on continuing to build on the success of our current programs and services, while looking for new and different opportunities.


at any new power plant to those of a natu-ral gas plant. Prentice said he still thinks the plant will be permitted and built, but it won’t be smooth sailing.

While some environmentalists would like to pronounce last rites for coal, to para-phrase Mark Twain, report of its death has been greatly exaggerated. Witness the recent groundbreaking for the Prairie State Energy Campus, a 1,600-MW coal-fired power plant to be built by a coalition that includes several public power agencies. According to the Energy Information Administration’s Electric Power Annual 2006, planned coal-fired capacity on Jan. 1, 2007, totaled 29,698 MW, up slightly from the 27,884 MW re-ported a year earlier. Most of this proposed capacity is scheduled to start commercial op-eration between 2009 and 2011. Coal plants planned for Texas, Kentucky, Illinois and Wisconsin represent more than one-half of all proposed coal-fired capacity additions, EIA noted.

The window of opportunity for new coal plants is still open. But, absent a break-through on carbon sequestration or some other technology, it’s closing fast, and in some areas it’s already shut.

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A

Impact of Demand-side Management and Real-time Pricing

By Nicole Carlson Easley, Editor-in-Chief

DSM Program AchievementsImpact of DSM on Winter Peak Demand

State of Florida

Load Management

Interuptible Service

Conservation

Firm Winter Peak Demand

Win

ter D

eman

d (M

W)

Years

80000

70000

60000

50000

40000

300001995/96 2000/01 2005/06 2010/11 2015/16

2006 Florida DSM Comparisons

Percent ofCustomers

Percent ofTotal from

EE & DLC MWAverage KW

per customer

6.5% 17%

UnitedStates

Florida

Florida is 124% more cost effctive per MWHachieved than USA DSM MWH average

- Saving Florida ratepayers an estimated

$293 million in program costs

Source: DOE EIA F861 2006 Report

USABalance Florida

$21.30

$9.507.0

5.7

water heating

• Reduced air infiltration

• Water heater wrap or replacement

• High-efficiency electric heat pumps

Neighborhood Energy Saver Programs Offering• Compact fluorescent bulb replacement

• Water heater temperature check and adjustments

According to Tom Ballenger of the Florida Public Service Commission, (PSC) Florida’s population continues to grow by about 1,000 new residents a day. Since 1986 the average house size has grown about 30 percent and appliance use has more than doubled. This and efforts to control climate-changing gases by relying less on some of the most reliable and affordable energy producing plants, is causing utilities to take an even harder look at educating their customers about the benefits of energy efficiency including helping them make better decisions through demand-side management (DSM) programs and technologies.

Florida utilities offer numerous DSM programs, but site a few main pro-grams and incentives as having the greatest impact including conducting various levels of consumer and commercial energy audits, some free to customers and some with a small fee; offering customers cost-saving incentives, and keeping energy ef-ficiency in the forefront of the community’s consciousness through public relations campaigns and attending community events.

Residential DSMPrograms and Measures

Energy Audits • On site

• Online

• Mail-in

• Paid computer analysis

Energy Improvement Recommendations • High-efficiency heat pumps

• Geothermal heat pumps

• HVAC commissioning

• Supply and peturn plenum duct seal

• Proper sizing of high-efficiency AC

• Electronically Commuted Motor (ECM) fans

• Duct testing

• Duct sealing

• Spray-in wall insulation

• Ceiling insulation

• Reflective roof

• Roof coating

• Window film or screen

• Replacement windows

New Construction/Energy Star Recommendations

• Duct seal

• Conditioning space air handler

• HVAC commissioning

• High efficiency heat pumps

• Geothermal heat pumps

• Manual D (Duct design)

• Energy recovery ventila-tion

• Attic insulation

• Cool roof

• Attic spray-on foam insulation

• Window film or screens

• High performance windows

• Alternating water heating

Informative Seminars Offered for Home Builders and Buyers Discussing • Low income weatherization

• Attic insulation upgrades

• Compact fluorescent lamps

• HVAC maintenance

• HVAC filters

• Duct test and repair

• High-efficiency alternate


• Low-flow faucet accelerator

• HVAC winterization kits

• Low-flow showerheads

• Changing filter calendars

• Refrigerator coil brush

• Wall plate thermometers

• HVAC filters

• Weatherization measures

Renewable Recommendations• Solar thermal water heaters with direct load control

• Solar PV for schools with direct load control

Collective Commercial Programs and Measures

Energy Audits

• On site

• Online

• Paid computer analysis

• Green Lodging

• LEEDs assistance

Retrofit for Existing Facilities

• Chillers

• Thermal energy storage

• Packaged heat pumps

• Small heat pumps

• Direct expansion (DX) roof top units

• ECM fans

• Roof top unit reconditioning

• Packaging AC steam cleaning

• Duct sealing

• Demand-control ventilation

• Energy-recovery ventilation

• Efficient indoor lighting

• Occupancy sensors

• Ceiling insulation

• Cool roof

• Roof insulation

• Green roof

• Window film or screens

• Efficient compressed air systems

• Efficient motors

• Refrigerator (anti-condensate)

• Heat recover units for water heating

• Heat pump water heaters

Residential Programs and Measures for Direct

2007 Cumulative Savingsfrom DSM

6,269GWH*

5,655MW

5,332MW

*Represents the cumulative effect of DSM for oneyear. 6,269 GWH is enough energy to serve approximately440,000 residential customers.

Courtesy of Tom Ballinge Florida Public Service Commision

Load Control

Load management• Cooling

• Heating

• Water heating

• Pool heating

Programmable Thermostats for Peak Pricing• Load management (LM) with solar water heater

• Commercial programs and measures for direct load control

• Standby generation

• Interruptible service

• Curtailing service

* Courtesy of John Masiello, Director, DSM & Alternative Energy Strategy, Progress Energy Florida Real-time Pricing

Among the newest DSM programs in use in Florida are technologies that equip utilities to communicate the importance of conservation and demand-side manage-ment by empowering their customers with load infor-mation that enables them to use energy more efficient-ly and lower their electric bills.

Gulf Power’s Good Cents critical peak pricing program offers customers interactive energy manage-ment that enables them to set their HVAC and water heaters to respond to price signals. The program-mable thermostat controls customers’ central cooling and heating systems, elec-tric water heaters and pool pumps.

TECO offers customers a multi-tiered rate structure with energy price signals communicated throughout

the day. Customers can opt for a “smart” thermostat that automatically sets based on programmed pricing specifications.

“I think all utilities will be able to do this,” said Pete Harbin, vice president of sales and marketing for Carina Technol-ogy, Inc. The company is currently working on partnering with several other companies to offer what they call internal house auto-mation. Harbin says the partnership will enable utility customers to control their ap-pliances based on response to peak-demand signals from their utility provider. Among other things, participants’ water heaters will heat water when demand is low.

300000

250000

200000

150000

100000

source: DOE EIA F861 1990-2005 Reports

FL DSM Expenditures

US DSM Expenditures

Florida vs. United States DSM Spending LevelsUS dropped 53% by 2003From 1998 through 2003 Florida was 19% of total nationwide

53% Drop

19901991

19921993

19941995

19961997

19981999

20002001 2003

2002 20042005


“It’s an innovative approach to water heaters being able to read the water tem-perature and then heat it off peak,” says Harbin. “It shaves peak from a demand-side management view point and doesn’t affect customers at all. They always have hot water.”

Customers using Carina Technolo-gy’s System would communicate with the company’s “gateway” through a home dis-play that tells them what the demand level currently is for electricity by emanating a green, yellow or red color. Customers can glance at the box and decide if they want to wait a couple of hours to run a dishwasher or washing machine. Or they may set their thermostat to turn down automatically when peak is “red.”

“I think it will be a behavioral change for people to save money,” says Harbin.

Harbin says the next step in the tech-nology is applying an IP address to every appliance in the house. Customers, he said, soon will be able to turn their thermostat down or turn on their dishwasher from any computer.

MainNet, an APPA Hometown Connections partner, offers DSM services through a unique broadband over power line (BPL) device installed directly on transformers. The device allow for com-munication directly from the utility to the home.

“The problem with this [DSM] tech-nology has never been with the physical devices that control appliances,” said Costa Coz Apostolakis of MainNet. “It’s been communication with the utility.”

MainNet’s technology converts BPL into a wireless mesh or a narrow band communication from the transformer into home devices, which means the company does not require a gateway. The technology enables customers to control their energy use of specific appliances several ways includ-ing a portal on a utility’s Web page or cell phone or through the company’s Home Area Network Device, a 5X7 color LCD touch screen that plugs into the house.

All of the communication methods provide customers with real-time pricing information and the ability to turn off and on and adjust the settings of their applianc-es and lights including thermostats, electric meters, hot water heater control switches, light switches and electric plugs.

345095_Sherman.indd 1 8/31/07 7:39:58 PM


KBy Garnie Holmes, Jr., Associate Editor

Kevin S. McCarthy is a life-long resident of Clewiston, Florida. Coined America’s “Sweetest Town,” Clewiston was incorporated in 1925 and occupies 4.57 square miles in Hendry County on the southern shore of Lake Okeechobee.

“It is one of the nicest rural towns I have been to,” says Kevin. “It’s in the middle of nowhere but within an hour and a half of Stuart or Miami on the east coast, or Punta Gorda or Naples on the west coast, and four International Airports.

“It’s a great place to raise a family without the worries larger cities bring.”

Although he enjoys small-town living, Kevin is a busy man. He serves as utility director for the city of Clewiston Municipal Utilities. He also is a county commissioner of five years, past board member of the Chamber of Commerce, Lions Club and Elks Lodge, and the Clewiston Drainage District.

Kevin also serves his community as a firefighter and works with Dixie Youth Baseball, the American Youth Soccer Organization and coaches his son’s baseball and soccer teams.

So what led Kevin to a career in the utility industry? Kevin’s father served as the utilities commissioner for twenty-five years. Kevin’s brother has worked for Florida Power and Light for more than thirty years.

After graduating from high school, Kevin attended Villanova Uni-versity in Villanova, Pennsylvania. He earned his Bachelor of Mechani-cal Engineering and began working in clean room design. However, after two years in the design industry the quiet quaintness of Clewiston called him back.

In Clewiston, Kevin ran his family’s Propane and Air Condition-ing business and became a mechanical contractor. He successfully ran that business for fifteen years and was eventually elected to the Clewiston City Commission where he served for six years. Once he got a taste of public service and politics, he wanted to take it further. Kevin resigned his seat on the City Commission and ran a winning campaign for a seat on the County Commission. He has maintained that seat for five years and was

Profile: FMEA President Kevin McCarthy

Profile: FMEA President Kevin McCarthy


re-elected last year. Six months after he left the City Commission the sitting utility di-

rector, who had been a city employee for seventeen years, retired. Kevin applied for the position.

“I thought that I would be a good fit for the position,” he said. The Commission agreed.

“My drive is to be a part of a first class organization and to improve that organization through vision and leadership, to improve the commu-nity I live in and ensure it is somewhere my children and their children would want to work and live.”

The city of Clewiston does not operate its own power plant. It pur-chases all of its power from Florida Municipal Power Agency (FMPA). The city averages four thousand electric meters and 3,800 water meters and maintains 50 miles of electric power lines and 1,000 poles with a crew of only seven. It also maintains 50 miles of water lines and 150 fire hydrants with a crew of two; 3,500 sewer connections and 44 sewer lift stations with two employees; a 1.1 million gallon wastewater treatment plant with five people, 8,000 meters read monthly by just two employees; 4,000 customers for billing and service with six employees. During the past two years, these crews averaged more than 5,500 customer service orders and established 90 new customers on their system.

Efficiency is the key to keeping things on track at the Clewiston Utilities Department. Kevin’s leadership philosophy helps maintain that efficiency.

“I believe in setting a vision for my employees and gaining consensus and team building not on the vision, but on how to accomplish that vi-sion.”

As far as what he plans to accomplish as president of the Florida Municipal Electric Association his answer is simple.

“My goal is not to mess up what everyone before me has worked so hard to achieve and in conjunction with Gov. Crist’s executive orders come out at the end of the year with as clear a direction as we can have on power supply, renewables and conservation.”

A hot topic in many conversations these days is conservation and the environment. With so many looking for immediate answers from electric companies, the industry faces challenging times.

“The greatest challenges facing the industry are global warming and the demand for renewable energy. The need and demand for con-servation programs to address our reliance on fossil fuels; and with these issues the perception that we can solve these issues without substantially increasing the cost of power.

“I think as an industry we are at a critical juncture, not only in Florida but worldwide. We are going to have to address not only our own enormous appetite for power, but also the appetite of other nations, particularly China, and how we are going to produce and deliver clean, affordable, reliable power.”

Through their partnership with FMPA the utilities department of Clewiston has made great strides toward that goal, returning millions of dollars to the community, helping to enhance the recreation, fire and police services, while maintaining a very reliable and efficient system. The city of Clewiston is currently building a state-of-the-art reverse osmosis water treatment facility using the Floridian Aquifer as its water source.

“My long-term goal for the utility industry is to ensure that the voice of municipal utilities is heard and strengthened and that we remember who we represent. It is not always about the money, it’s about the service and quality of life.”

Quality of life is important to Kevin, and a quality life for Kevin

is one where family comes first. Kevin rarely misses one of his children’s events and generally keeps the weekends open so that he can be with his family. They enjoy camping, snow and water skiing.

“My life philosophy is that there is nothing more important than your family and the time you spend with them. Secondly, you should strive to be the best at what you do, but not at the expense of your family. My life revolves around my family and my community.”

345733_TreesInc.indd 1 9/11/07 5:05:08 PM


R

Where in the World is Relay?

Ron Brower stands with Relay magazine in front of the Rock of Gibraltar from the deck of a ship sailing through the Mediterranean sea off the southwestern tip of Europe on the Iberian Peninsula.

In ancient times, the Rock of Gibraltar was one of the Pillars of Hercules and was known to the Greeks as Mons Calpe, the other pillar being Mons Abyla on the African side of the Strait. The Rock of Gibraltar marked the limit to the known world and to pass beyond it was to sail to certain destruction over the bottomless waterfall at the edge of the world.

Send us pictures of your travels with Relay magazine and you may be featured in a future “Where in the World is Relay?”


Index to Adver tisersConsultantsLinxwiler Consulting Services, Inc. .............................. 4

Contractors - Powerline ConstructionPike Electric, Inc. ....................... 14

Electrical Distr ibution & Control Equipment CE Power Solutions LLC .....................6

Energy ServicesBlack & Veatch Corporation. ...............3

Engineering & ConstructionBE&K, Inc. ............................................12

Engineering/Consulting FirmsR.W. Beck. ...............................................21

Engineers/ConsultantsFred Wilson & Associates ................... 22

Stanley Consultants, Inc. ........................4

Equipment, Sale, Rental and Service Scott Powerline & Utility Equipment ..........................................12

Line Clearance Asplundh Tree Expert Company ...............................................3

Management Consultants Downes Associates .................................12

Manufacturers’ RepresentativesFlorida Utility Service Company ...............................................8

Meter Seals & LocksSterling Security Systems .........................4

Power Generation EquipmentRing Power Corporation ........................3

Power MarketerSouthern Company

.....................Outside Back Cover

SubstationsHamby Young, Inc. ...................... 4

Tools - HandBethea Tool & Equipment Company ................................... 6

Transformer Repairs/RemanufacturersFlorida Transformer, Inc.. ....................14

Transmission & Distr ibutionTana Wire Markers ..................... 4

Tree MaintenanceTrees, Inc. .....................................19

Trenchers Ditch Witch of Central and South Florida ............................Inside Back Cover

Utili ty Management Services Sherman & Reilly, Inc.......................... 17

Wire & Cable American Wire Group ........................ Inside Back Cover

0 4

5%

10%

15%

20%

25%

Re

turn

On

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estm

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t

Ye a r s

30%

35%

40%

8 12 16 20

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Calendar 200824-25 FMEA Legislative Rally ................................Tallahassee

25 FMEA Board Meeting ...................................Tallahassee

25 Legislative and Regulatory Meeting ...............................................................Tallahassee

28-29 Florida Linemen’s Competition .......................................................... Lakeland

28 Staking Principles for Lineworkers .......................................................... Lakeland

MAY 6-8 Utility Security and Loss Prevention – Collaboration with Local Law Enforcement .................................Regional Meetings

JUNE12 Customer Connections Mid-Year Workshop ......................................... Vero Beach

17-20 Line Design and Staking Certification Program, Level I ............................ Orlando

JULY

15-18 FMEA-FMPA Annual Conference ........................................... Fort Myers

17 FMEA Board of Directors Meeting ............................................................... Fort Myers

AUGUST27 Electric Utility Business Operations

Workshop ............................South Florida Location TBA

SEPTEMBER

16-18 Electric Utility System Operations Workshop ............................................. Orlando

23-26 Line Design and Staking Certification Program, Level ............................... Orlando

NOVEMBER

5 Tax Seminar ........................................................... Orlando

JANUARY 25 FMEA Board Meeting ........................................ Orlando

25 Legislative and Regulatory Meeting .................................................................... Orlando

FEBRUARY 5-7 Crew Leadership .........................................................Ocala

26-28 Electric Utility System Operations Workshop ........................................Jacksonville

MARCH 4-7 Underground Line Design Program ................................................................................... Orlando

11-14 Line Design and Staking Certification Program, Level III ................................................................... Orlando

13 Electric Utility Business Operations Workshop ..................................................Ocala

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