Colorado Springs Utilities

P.O. Box 1103, Mail Code 1023

Colorado Springs, CO 80947-1023

Website: http://www.csu.org

Ownership:

Community-owned utility

Background:

This is a community-owned utility that provides its customers with electric, water, and gas services. Colorado Springs Utilities (CSU) has 1,800 employees. It serves 158,000 natural gas customers, 184,000 electric customers, and 114,000 water customers.

 Colorado Springs Utilities has received national recognition for its outstanding customer service and commitment to the environment, and its community. CSU has not yet parlayed this reputation into a strong commitment to geothermal heat pumps.

Service Territory: Approximately 500 square miles and provides services the communities of Colorado Springs and Manitou Springs, and a variety of military installations including United States Air Force Academy, Fort Carson, and Peterson Air Force Base.

 

Relevant Program Name and Description

HomeVantage® Program consists of several components including:

• Home Improvement Financing:  This is a low-interest financing program designed for residential customers to fund energy-and water-saving home improvements. Its funds are provided through the Ent Federal Credit Union.
•  HomeVantage® Service Referral:  This free service provides homeowners with qualified local contractors for a variety of home improvement projects including climate control, landscaping, plumbing, natural gas, outside service lines, and structural repairs.

Dates Offered:  This program has been in operation since 2001.

Price/Cost to Customer: The home improvement financing is offered through the credit union at competitive interest rates based upon the loan term and customer qualifications.   More than 60 pre-approved energy efficiency projects are available for financing through this program, including installation of geothermal heat pumps.

How/Where Marketed:  The program is marketed through CSU’s customer materials and on its website.

How Customers Enroll/Sign Up: Customers contact Ent Federal Credit Union or call a CSU customer representative for more information.

Number of Installations: So far, none. 

  Key Vendors/Partners/Allies:  

• Ent Federal Credit Union
• More than 50 local contractors. 

Qualified contractors participating in the referral program must meet CSU’s standards including: 

• Appropriate licensing 

• Insured 

• In good standing with the Better Business Bureau and 

• Been in business for at least year. 

Contractors pay a  fee to CSU for referrals, either on a monthly or seasonal basis.

Future Enhancements Planned/Anticipated:  CSU plans on making geothermal heat pumps more visible as it continues to build on its national reputation as an outstanding electric utility committed to environmental and resource conservation.

Best Way to Learn of New Developments:  Its website.

Key Staff Individuals and Primary Contacts:

Deborah Heck, Product Planner
Phone: 719/668-3612
e-mail: dheck@csu.org

Christiana King, Product Planner
Phone: 719/668-3612
e-mail: cking@csu.org

For more information on the Colorado Springs District 11 School:
Thomas Fernandez, Energy Manager, Colorado Springs School District 11
Phone: 719/ 477-601l
email: fernatom@dll.org

top

.

Delta-Montrose Electric  Association (DMEA)

11925 6300 Rd.

Montrose, CO 81401

Phone: 970/ 249-4572

Website: www.dmea.com

Program website: www.dmea.com/geoex/co-zfacts.htm

Intermountain Energy Services: www.intermountainenergy.com

Ownership:

Rural electric cooperative

Background:

Delta-Montrose Rural Power Lines Association was organized in August 1938. DMEA is a private, non-profit cooperative owned by the members it serves. DMEA has a history of developing innovative energy programs that have won praise and recognition at the regional and national level.

 “I think DMEA is one of the most innovative co-ops in the country,” said Peggy Plate, an energy services manager for the Department of Energy’s Western Area Power Administration (WAPA).

Number of Customers and Service Territory: Delta-Montrose Electric Association (DMEA) serves 28,000 customers in four southwest Colorado counties.

History:

Reasons for program, past/recent activities/programs and or primary drivers. DMEA developed its GeoExchange program as a way to provide service using the concept of “chauffage” or guaranteeing heating bills. Chauffage is a popular financing plan used in Europe and its intent is to lower energy costs by financing the installation of energy efficient technologies and then recouping the investment from the energy savings from these installations.  DMEA took this concept into the single-family residential market a step further than the Europeans in designing its geothermal program.

DMEA’s program is called “CO-Z Energy Plan,” and “the intent to remove the first cost barrier” associated with geothermal heat pump installations, explained Paul Bony, DMEA’s Marketing and Customer Service  Manager. “DMEA took the loop lease concept to the next level, through the development of the chauffage concept.”

 DMEA viewed this program as a way to target both new construction and existing home (retrofit) markets. Targeting the retrofit market offered a new opportunity to increase GeoExchange installations in DMEA’s service territory, while installations in the new construction market would allow DMEA to reach new members as they moved into its territory.

According to company research, DMEA estimated that forced-air fossil fuel systems accounted for approximately 50% of the total systems in its territory. This represented an attractive target market for geothermal heat pumps as a strategy to convert current gas and propane members to GeoExchange systems.

One senior DMEA staff member explained, the retrofit market made an ideal target market for GeoExchange installations “because the duct work was already in place.” GeoExchange would be positioned as a split-system — offering geothermal heating and cooling with a gas or propane back up heating source.

The Co-op also identified “basic houses” as sites for pilot GeoExchange installations. “We targeted houses that had existing gas furnaces…houses that weren’t really tight,” a DMEA staff member explained. This was done deliberately to determine if it was possible to retrofit existing homes with geothermal systems.

DMEA also wanted to increase GeoExchange installations within the new construction market, so the co-op approached builders to promote this technology. Historically, custom builders and higher-end customers in the new construction market have been an easier market in which to promote new technologies, such as GeoExchange, because the financing costs can be included in the mortgage. It is also often easier to install the necessary equipment as a new home is built.

The Co-Z Energy Plan program has been in continuous development for the past four years, because it was necessary to gather all the energy information required to properly calculate the actual operating costs of geothermal systems. But, the Co-Z Energy Plan program is not like traditional ESCo financing programs, because DMEA does not monitor actual energy consumption. Rather, the cooperative relies on the energy model it created to guarantee the GeoExchange energy consumption.

This program also fits in with the overall corporate strategy of DMEA. “GeoExchange systems support our Board of Directors’ vision of providing a variety of high-quality, affordable energy services to our members,” says Dan McClendon, DMEA’s General Manager.

From an economic point of view, geothermal systems represent high load factor, low peak load impacting kilowatt-hour sales to the cooperative. “We are making more money on kilowatt hour sales and we are recouping our expenses for advertising, sales and installation through an imbedded fee,” Mr. Bony explained.

Relevant Program name and description

Co-Z Energy Plan

In the Co-Z Energy Plan program, DMEA pays for the installation of major components of a geothermal heat pump (GeoExchange) system for a homeowner.  The program does not include ductwork or other “inside the house” elements.  The program originally relied on outdoor split GeoExchange equipment.  In 2002 the Co-op expanded its Co-Z Energy Plan offering to include more options including package systems and a loop only payment option.

Price/Cost to Customer: 

The Co-Z Energy Plan is a monthly financing plan between the customer and DMEA. The plan includes the following elements:

 ·        Custom design of a geothermal system;

·        Installation of all equipment;

·        On-going maintenance and repair;

·        Monthly payment plan and

·        An energy credit rate lock, adjustable in 5-year intervals based on the system’s estimated energy usage.

 The Co-Z Energy Plan is intended to cover the majority of the system’s estimated energy operating costs averaged over 12 months.

 Steve Metheny, Chief Operating Officer, explained, “The GeoExchange system is financed for up to 50 years on a monthly lease payment that includes equipment maintenance. Mr. Metheny added that in DMEA’s service territory, “It costs about $1,400 a year to heat with propane without any air conditioning compared to the geothermal system that provides heating and air conditioning for about $320 to $420 per year.”

Dates Offered: Pilot efforts began in 1997 and the formal program was launched in September of 1998.

How/Where Marketed:   DMEA promotes its geothermal program through its member outreach by of its geothermal systems and creating a culture among geothermal owners.

“People are not exposed to geothermal and they don’t understand the benefits. We educate the population to the process, the overall concept,” Mr. Bony said.

For example, DMEA has brought out a well-known geothermal expert, Doug Rye, to talk to prospective owners about the benefits that geothermal systems offer, especially in conjunction with building an energy efficient home.

The Co-Z Energy Plan is also promoted in articles in the cooperative’s newsletter, through its Geo Comfort Club Newsletter, via displays at the annual meeting, and on the website.

DMEA is also creating a “geo culture” among system owners. “Sales is a one-on-one process, but when we hit the hundred mark with installations, then we invited all the geo customers to a dinner… We are building a culture for everyone and using it for future referrals,” Mr. Bony said.

The cooperative is also “looking for better ways to streamline the (installation) process and better ways for realtors to understand geothermal systems,” Mr. Bony added.

Number of Customer Sign-ups: 

According to DMEA, “There were 200 sales so far, but that doesn’t count sales of geothermal heat pumps in our market by other installers in other markets in Colorado,” Mr. Bony said.

Its efforts are also paying off as the word is beginning to spread about geothermal to other nearby communities. “Another market is opening up in Grand Junction, Colorado and three neighboring rural electric cooperatives are working with DMEA to promote GeoExchange in their service areas,” Mr. Bony added.

Key Vendors/Partners/Allies:

DMEA took a unique approach to developing relationships with trade partners. Since there wasn’t an infrastructure in place to support a geothermal program, DMEA developed it. The electric cooperative is the owner of a heating and air conditioning company called Intermountain Energy, owns a stake in a geothermal heat pump manufacturing company called Co-Energies, and has been providing research and development assistance to a drilling company called TEI Rock Drilling.

“We started up our own HVAC company with the goal to control our pricing, quality, customer care…We became profitable this year,” Mr. Bony said.  Intermountain Energy installs and services the geothermal systems sold as part of the CO-Z Energy Plan.

Despite all the growing pains, DMEA set into motion the elements required to grow a sustainable geothermal market. In that way, DMEA has already distinguished itself from the scores of other utility programs that have offered geothermal programs and achieved limited success.  

Future Enhancements Planned/Anticipated:  DMEA’s installation subsidiary, Intermountain Energy, continues to promote geothermal heat pump installations throughout Western Colorado, including sponsoring local community events, and developing proactive outreach programs to local builders and realtors.

 As Intermountain Energy gains experience, the company is also starting to look at small commercial installations as a way to grow and expand beyond its residential base. Intermountain Energy is also exploring partnerships with larger, more experienced commercial installation contractors, as a way to promote geothermal installations throughout the Western Slope in Colorado.

Best Way to Learn of New Developments: From the web site, newsletter, the trade press and via Intermountain Energy's website at www.intermountainenergy.com.

Key Staff Individuals: 

Paul Bony, Marketing and Customer Service Manager
e-mail: pbony@dmea.com

Primary Staff Contact:

Ed Thomas, Manager, Intermountain Energy
Phone: 970/240-1279
e-mail: ethomas@intermountenergy.com

Lenny Rose, Energy Use Supervisor
Phone: 970/240-1263
e-mail: lrose@dmea.com

top

.

FirstEnergy 

(previously GPU)
76 South Main Street

Akron, OH  44308

Phone: 800/823-6462
Corporate:  http://www.firstenergycorp.com/

Ownership:  

GPU, Inc., a Pennsylvania corporation, is a holding company registered under the Public Utility Holding Company Act of 1935. Its three domestic electric utility subsidiaries Jersey Central Power and Light (JCP&L), Metropolitan Edison Company (Met-Ed) and Pennsylvania Electric Company (Penelec) conducted business under the name GPU. In November 2000, GPU, an Investor-Owned Utility, was merged with FirstEnergy Corp, and is now operating a subsidiary of First Energy Corp.  It was as GPU that the analysis was completed. Please see Background section.

Number of customers and service territory:  Counties Served: Burlington, Essex, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union and Warren. Provides approximately 44 billion kilowatt-hours of electricity to more than 2 million customers in New Jersey and Pennsylvania. 

Background:

It bears repeating that in November 2000, GPU, an Investor-Owned Utility, was merged with FirstEnergy Corp, and is now operating a subsidiary of First Energy Corp.  Revenues in 2000 were $5.2 billion, against $4.8 billion in 1999, and total assets at 2000 year-end were $19.3 billion compared to $21.7 billion at year-end 1999. Net income for the year 2000 was $233.5 million or $1.92 per share, against $459 million or $3.66 per share in 1999.

History:

While GPU Energy has offered rebates for geothermal installations in New Jersey since 1991,  deregulation of the New Jersey electric utility market and the mandate by the NJ Board of Public Utilities for all the utilities to offer comprehensive rebates, led to the inclusion of geothermal rebates in the statewide energy efficiency incentive programs contained in the New Jersey’s Clean Energy Program. This program, which has a component specifically targeting Commercial & Industrial Construction called NJ Smart Start Buildings and another residential program called Energy Star® Homes. Both programs are funded through “Societal Benefits” charges that offer rebates to encourage the installation of various energy efficient equipment, including geothermal.

Relevant Program Name and Description

New Jersey Clean Energy Program-Energy Efficient Commercial & Industrial Construction Program

This program supports a variety of technologies, including geothermal heat pumps, fuel cells, photovoltaic as well as design assistance and special grants for other technical assistances The NJ Smart Start Buildings program offers financial incentives to encourage the installation of qualified energy efficient equipment or grants to make customers facilities more energy efficient.

Eligibility Requirements: Commercial, educational, governmental/institutional, industrial, and agricultural customers that are located in New Jersey and are served by sponsoring utilities are eligible to participate. Eligible construction projects include: new construction, renovations, additions, remodeling, equipment replacement and manufacturing process improvements. The NJ Utility Collaborative, including GPU Energy, anticipates that schools, group housing, and the hospitality industry will be prime targets for geothermal installations.

Dates Offered:  May 9, 2001 was the effective date for NJ Smart Start, although First Energy had previously offered the same rebate through its Powersavers Program prior to that.

Price/Cost to Customer:  Customer receives rebate of $585/ton installed and also receives incentives to support design and additional installation costs on facilities over 50,000 square feet. The incentive structures are summarized in the following tables.

Incentives:

Design Support Incentives
Pre-design planning session	Up to $1,000.00
Design simulation and screening	$5,000.00 or more
Detailed analysis of energy-efficiency measures	Up to $5,000.00
Multiple Measure Bonus	10% above the incentive measure
Qualifying Equipment Incentive
Geo-Thermal Heat Pumps:
Open Loop & Closed Loop	$585 per ton

How/Where Marketed:  First Energy and other NJ Collaborative members are targeting key decision-makers, such as architects and engineers, through design seminars, training sessions and meetings. Other activities include conferences, trade shows, demonstration projects, and general rebate presentations.  First Energy also targets key trade allies through a number of professional organizations such as the Air Conditioning Contractors Association, ASHRAE and the Northeast Heating and Cooling Council.

First Energy provides case studies that promote the benefits and suitability of geothermal installations in New Jersey, such as showcasing Richard Stockton College and many other schools that use the technology.

How Customer Signs Up:  A customer may register a project via an on-line Registration form on the NJ Smart Start Buildings website and then download, via PDF format, specific applications for the qualifying technologies.  Once the technologies applications are submitted, the utility company sends a commitment letter that locks in the rebates at present level for two years.

Number of Customer Sign-ups:  First Energy’s activities have led to a variety of installations in a range of commercial and industrial applications. These include installations in 17 schools, a hotel, a US Army officers’ quarters, post offices, office buildings, an environmental center and a NJ State historical tourist center.

How Service Is Delivered and Billed: The NJ Smart Start program delivers rebates to customers for qualifying technology, however the Utility Collaborative who offer the program, do not install the technologies nor finance them. 

Key Vendors/Partners/Allies:  

First Energy recognizes the importance of developing the infrastructure and therefore works closely with loop installers, HVAC contractors, architects, and engineers. 

Future Enhancements Planned/Anticipated: The NJ Collaborative will continue to work within the context of NJ Smart Start Buildings to promote the technology.  Ongoing efforts are being made at the State level with the Economic Development Authority to consider geothermal as a reference systems to consider when developing or renovating schools under the NJ School Construction and Finance Act. This bill has allocated up to $12 billion to be spend on NJ schools over the next ten years.

Best Way to Learn of New Program Developments: The NJ Clean Energy and NJ Smart Start Buildings websites (www.njcleanenergy.com and www.njsmartstartbuildings.com) are the best ways to keep up with new developments.  For specific information contact Steve Bauman who can provide case studies and customer contacts.

Key Staff Individuals and Primary Contacts: 

Steve Bauman, Senior Project Consultant
Phone: 732/672-0765
e-mail: sbauman@eamenergy.com

Doug Shattuck, Senior Project Consultant, PE
Phone: 732/267-1174
e-mail: dshattuck@eamenergy.com

top

.

Gulf Power Company

One Energy Place

Pensacola, FL 32520-0231

Phone:  850/505-5402

Website: www.southernco.com/gulfpower

Ownership:  

Gulf Power Company is an investor-owned electric utility headquartered in Pensacola, Florida selling low-priced electricity throughout Northwest Florida.

Number of Customers and Service Territory: Gulf Power's service territory spans the area from the Alabama border on the west to the Apalachicola River on the east; from the Alabama border on the north to the Gulf of Mexico on the south. Gulf Power serves more than 373,224 retail customers directly and indirectly serves over 13,415 customers through the wholesale delivery of electricity to one investor-owned electric utility and one municipality. Gulf Power-generated electricity reaches customers in 71 towns and communities in Northwest Florida. It has approximately 1,400 employees.

Background:

Gulf Power Company’s began in 1925, through the purchase of the Pensacola Electric Company by Southeastern Power and Light Company. Southeastern was a holding company that operated electric, gas and street railway systems in Alabama, Georgia and Mississippi. In 1926, Gulf Power Company acquired the Chipley Light and Power Company. The company prides itself on rates that are the lowest in Florida and among the lowest in the nation.

History:

Gulf Power has the lowest electricity price in the state and one of the lowest in the nation. As a subsidiary of Southern Company, Gulf Power gains the benefits of large economies of scale while retaining the small company flexibility to develop successful, innovative products. The GoodCents Home is one such product developed right here at Gulf Power. The Southern Company is one of the largest investor-owned utilities in the United States with more than 26,000 employees and more than $17 billion in earnings.

Relevant Program Name and Description

GoodCents Efficiency-Geothermal Heat Pumps

 Dates offered: Since 1995

Price/Cost to Customer: When the geothermal program was first getting started, Gulf Power offered rebates to reduce the incremental costs of installing the systems. However, this is no longer necessary because customers are able to get fairly rapid paybacks and significant energy savings without needing any additional financial inducements from Gulf Power. 

Mr. Keith Swilley, District Manager for Gulf Power and one of the architects behind Gulf’s geothermal program explained that the commercial installations usually get paybacks in 5 years or less and the residential installations usually have a payback of 7 or 8 years. “That is very competitive,” he added.

The energy savings sell themselves. For example, Mr. Swilley said, “I paid  $25 in August to cool his 2,500 square foot home and paid $14 in January to heat it.” The energy costs are so low because he uses a geothermal heat pump.

He also added that geothermal heat pumps are used to supply heating, cooling, and water heating, the additional energy savings really add up.

“Commercial customers are getting very good savings especially when they are using it with a water heater. One hotel saved $15,000 in 6 months just on energy costs for heating the outdoor pools,” Mr. Swilley added.

 While Gulf Power does not offer rebates, the utility does provide design assistance, contractor referrals, and life cycle costing to interested customers.

“We will usually run a lifecycle cost for anybody who considers a geothermal installation,” he added.

How/Where Marketed:  In the past, Gulf Power did more high visibility marketing such as field days, and some bill inserts. However, now that the geothermal market has developed, the utility relies more on word-of-mouth advertising.

“We are not spending more in dollars, it is more of a one-on-one approach… The dealers are pushing and promoting it,” Mr. Swilley said. “We don’t spend the money to advertise. This is still a niche market and just continues to build.”

Gulf Power also offers a $500 rebate on any geothermal heat pumps system.

How Customer Signs Up:  By contacting Gulf Power, the utility provides information on geothermal heat pumps and also a list of qualified dealers.

Number of Customer Installations:  Gulf Power estimates that more than 5,200 tons of geothermal heat pumps have been installed throughout its service territory. Geothermal has been a very popular choice among military installations and schools located throughout Gulf Power’s territory. The utility also has a number of installations in commercial offices, retail establishments, and within the residential market.

“The installations are growing more on the commercial side...we do one or two a month and are slowly building the market through contact rather than through mass-market advertising,” Mr. Swilley said.

“We are not going ‘gangbusters,’ but we consistently have something going on,” he added.

Gulf Power was also among the first utilities to successfully install geothermal heat pumps in a condominium complex. “In 1995, we got the Shores Condos in,” Mr. Swilley said. He added that geothermal installations have also been done in several low-income multifamily housing projects.

The most widespread installations are in military housing. “We have done over 1,000 to 1,500 installations in military housing. The Energy Reduction Mandate was the original driver for the installations at Pensacola NAS, but now the housing administrator believes 100% in geothermal installations. They have had good results, so every bit of money they do geothermal,” Mr. Swilley said.

How Service Delivered and Billed: Directly with the contractor/dealer.

Key Vendors/Partners/Allies:

Gulf Power worked hard to develop the commercial infrastructure necessary to support a geothermal program. In the beginning, they sought out the dealers they thought would be most interested and willing to build a geothermal business.

“We learned what dealers and installers supported it and were willing to invest in it,” Mr. Swilley said, “We also found out from customers what dealers were supporting geothermal…and those (dealers) that weren’t no longer receive utility referrals.”

He added, “There has been a market shakeout…I think the geothermal market has gotten down to the core of the business, those long-term (dealers and contractors) willing to invest in it.”

Future Enhancements Planned/Anticipated: None needed

Best Way to Learn of New Developments: Web site

Key Staff Individual and Primary Contact:

Keith Swilley, District Manager
Phone: 850/505-5402
e-mail: lkswille@southernco.com

top

.

Kansas City Power & Light (KCPL)

P.O. Box 418679
Kansas City, MO 64141-9679

Phone: 816/ 556-2200

Website:  www.kcpl.com

Program website: www.kcpl.com/forhome/geotherm.htm

Ownership:  

Kansas City Power & Light (KCPL) is a subsidiary of Great Plains Inc. (GPE; NYSE: GXP), and is an investor-owned utility.

Service Territory: Headquartered in Kansas City, Missouri, GPE generates and distributes electricity to approximately 470,000 retail customers, cities and electric utilities in Missouri and Kansas. Kansas City Power & Light Company provides energy-related products and services for homes and businesses in the Kansas City Metropolitan area and nationwide.

Background:

KCPL has been promoting geothermal installations since 1990. The utility views its as an excellent system to offer customer savings, and has developed a special geothermal electric rate for its customers. This rate further reduces energy costs for geothermal system owners.

History:

Reasons for program, past/recent activities/programs and or primary drivers. Geothermal systems provide KCPL with an opportunity to promote geothermal systems to its customers while also offering a competitive alternative to natural gas and propane heating systems.

Relevant Program Name and Description

Geothermal Heating and Cooling

KCPL’s geothermal program consists of the following elements:

• Economical rates - Low eight-month winter electric rates.

• Favorable Financing – KCPL’s qualified dealers offer favorable market financing through United Missouri Bank for geothermal systems.

• Quality Assurance - KCPL conducts random inspections on geothermal installations to ensure quality control.

• Quality Installers - Each has earned certification by the Refrigeration Service Engineers Society (RSES), certification by the International Ground Source Heat Pump Association (IGSHPA).

Price/Cost to Customer:  KCPL offers a special geothermal rate that offers a discount of off residential rates.  These discounts vary for Kansas and Missouri customers.

Dates Offered: Since 1988

How/Where Marketed:   KCPL relies on a combination of things to educate customers and dealers about geothermal. Their strategies include calling on all the HVAC dealers that have been installing geothermal systems.

KCPL also promotes geothermal technology by “demonstrations to show how efficient they are,” explained George Crump, Technical Field Coordinator.

KCPL’s staff also uses a small ½ ton unit from ClimateMaster at home shows and conferences to demonstrate how geothermal systems work. This has been an effective way of explaining this technology simply and easily to prospective customers.

How Customer Signs Up: The sign up process begins when a customer calls to ask about the system or visit the website to request information. 

Number of Customer Sign-ups: Geothermal installations have doubled over the pervious years, with one dealer reporting 40 installations. KCPL has also enjoyed success in the school market. One school district in Raytown, MO is installing multiple systems and several schools in the area.

How Service Delivered and Billed: KCPL refers interested customers to qualified contractors. It provides a listing on its website.

Key Vendors/Partners/Allies:

KCPL has a list of approved contractors and well drillers assist customers in geothermal installations. All contractors are RSES, IGSHPA and manufacturer-certified, and have received additional heat pump training from KCPL.    “There are about eight dealers that have been installing geothermal systems,” according to Mr. Crump.

Future Enhancements Planned/Anticipated: None are planned at this time.

Best Way to Learn of New Developments: The website

Key Staff Individuals and Primary Contact:

George Crump, Technical Field Coordinator
Phone: 816/ 556-2106
e-mail: George.crump@kcpl.com

top

.

Long Island Power Authority

333 Earle Ovington Blvd. 

Uniondale, NY 11553

Phone: 516/ 222-7700; Fax: 516/ 222-9137  

LIPA's EnergyWise Infoline at 800/692-2626. 

Website: www.lipower.org 

Program website: www.lipower.org/commercial 

Ownership: 

Municipal Utility

Background:

The Long Island Power Authority (LIPA) is a corporate municipal instrumentality of the State of New York and was created by State legislation enacted in 1986. LIPA was established to resolve the controversy over the Shoreham Nuclear Power Plant (Shoreham) and to seek lower utility rates on Long Island. 

 History:

Reasons for program, past/recent activities/programs and or primary drivers.  LIPA’s Clean Energy Initiative Conservation Program promotes efficient energy use, and the development and use of alternative and renewable energy technologies crucial to Long Island’s energy future.

The Clean Energy Initiative, a five-year $160 million program, was created by Governor George E. Pataki’s Executive Order. It is one of the most aggressive and comprehensive conservation and energy efficiency programs in the state.

To date, LIPA has launched 11 individual Clean Energy Initiative programs, which help both residential and commercial customers save money. In 2001, this program resulted in 44,500 mWhrs and 129 mW of capacity saved.

Relevant Program Name and Description

 LIPA Commercial Construction Program:

A program offering to the Commercial & Industrial market segments that provides either a Prescriptive ($/watt, ton, ballast, horsepower, etc.) rebate or the Custom or Comprehensive rebate programs that offers incentives based on payback derived through the analysis of unique energy efficiency projects or from an entire project analysis. The program goal is to encourage the most energy efficient installation supportable through cost/benefit analysis.

Dates Offered:  Since 1998, this program has been offered continuously as a general program offering under LIPA’s Clean Energy Initiative. 

Price/Cost to Customer:

LIPA offers incentives on a per tonnage basis for C&I customers, based on the size and efficiency level of the installed system. For example, LIPA pays customers $65/ton for geothermal systems with up to SEER 12 and $88/ton for geothermal systems with a SEER of 14 or above.

LIPA also prepares a comprehensive cost-benefit analysis for large commercial and industrial projects that will provide up to $250,000 in incentives for a single project to a maximum of $750,000 for three jobs in a calendar year. However, the actual amounts are based on the incremental costs of the installed system and depend upon payback projections.

How/Where Marketed:  LIPA uses its high profile installations to promote and demonstrate the effectiveness of geothermal systems. For example, the Atlantis Marine World (see below) demonstration is often used a site for various marketing activities, explained Mr. William Jackson, Manager of Sales & Marketing. Since LIPA is targeting the C&I market, it relies heavily on “face-to-face selling” and word of mouth to promote its geothermal program, Mr. Jackson added. LIPA also promotes its programs via tradeshows, its web site, and brochures. How Customers Enroll/Sign Up: The formal application process with required approval is completed prior to enrollment. Number of Installations:  LIPA has installed 1,230 tons in 2000 in various market segments including educational facilities, office buildings, a Marine Aquarium, a museum (The Theodore Roosevelt Museum and The Nature Conservancy), lodging and an assisted living facility. Another 530 tons are under construction and an additional 1,100 tons are committed projects that have not yet started construction.

Key Vendors/Partners/Allies:  

LIPA wants to develop the local infrastructure to support its geothermal program. However, this has been difficult, as Mr. Jackson explained.

“We didn’t have a strong infrastructure for geothermal…we don’t have the local well drillers… the local market mostly has water well drillers and they are still thinking about water wells and are not thinking about geothermal,” Mr. Jackson said. “We had to go out of state to get well drillers because we needed to have (jobs) done quickly and affordably. The local drillers are not there yet…We are still dealing with pricing issues.”

Future Enhancements Planned/Anticipated:  LIPA plans to increase promotion of program focused on smaller installations (50 – 150 ton systems) to transform marketplace for greater contractor participation (both well drilling and system installation).

Best Way to Learn of New Developments: Through LIPA’s sales force, and members in the architects and engineering communities.

Key Staff Individuals:

Bill Jackson, Manager Sales & Marketing
Phone: 516/ 719-9846
e-mail:  wjackson@lipower.org

top

.

Moon Lake Electric Association, Inc.

188 W. 2nd North

P. O. Box 278

Roosevelt, UT 84066

Website: www.moonlakeelectric.com

Background:

Moon Lake Electric Association (MLEA) was organized in 1938 as a rural electric cooperative. Today, it services more than 14,000 members with 81 full-time employees in Northeastern Utah and Western Colorado.

Moon Lake is headquartered in Roosevelt, Utah and has district offices in Altamont, and Duchesne, Utah and Rangely, Colorado. 

Relevant Program Name and Description

Moon Lake offers members interested in purchasing and installing geothermal heat pumps a combination program featuring both monthly rebates and low interest loans.

Dates Offered: This program has been operating for the past five years.

Price/Cost to Customer: 

Eligible customers receive financing at the Cooperative’s CFC’s 90-day Commercial Paper rate, which is adjusted every month. The maximum loan amount may receive $3,500 per ton. The maximum term amount is for 6 years (72 months). These loans apply to both residential and commercial installations.  A sampling of these financing loan amounts are summarized in the following table.

Moon Lake’s Financing Incentives for Geothermal Heat Pumps
Equipment Size	Maximum Financing Amount
3 Ton	$10,500
4 Ton	$14,000
5 Ton	$17,500
8 Ton	$28,000
10 Ton	$35,000

 

 

 

 

How/Where Marketed: This program is marketed as part of Moon Lake’s overall strategy to build electric load by encouraging the use of highly efficient electric heating, cooling, and water heating equipment to its members. 

How Customers Enroll/Sign Up: Loans are made for approved geothermal heat pump installations by either the developers or owners of the homes or commercial buildings operating in Moon Lake’s service territory.  Moon Lake requires that all geothermal heat pump installations receiving loans and rebates be approved by IGSPHA and installed by IGSHPA-certified personnel.

After a customer contacts Moon Lake about its geothermal heat pump program, the utility determines the feasibility of the equipment installation. All residential structures, including new and existing homes, must meet MLEA’s weatherization, insulation, and building envelope standards.

If the application meets with MLEA’s approval, then the utility conducts a credit check. After the loan has been approved, funds are withheld until the MLEA receives assurance that the installation was completed properly.

The customer’s loan payments are included on each monthly bill.

In addition to the loan program, customers are also eligible to receive a monthly rebate of $3.00 per ton to a maximum of $12/month reduction on the monthly electric bills. This rebate is available only to residential customers.

Number of Installations:  According to Russ Cowan, Manager-Human Resources & Member Services, this rebate and financing program has been quite popular throughout Southern Utah and Western Colorado.  Mr. Cowan estimates that there  have been approximately 400 residential installations and about 25 commercial and institutional installations.

“We encourage our members to build (or retrofit) an energy efficient home. It is a good program,” Mr. Cowan said. He added that the incentive has helped develop a good local infrastructure that has also increased the number of commercial and institutional geothermal installations.

Geothermal heat pumps are becoming the norm in most school applications throughout Utah.  “”Ever since the first school district went geothermal, every other school district has just fallen in line. Now, every school district in Utah is looking at geothermal heat pumps. They can’t get air conditioning with gas installations, so geothermal is the only application that makes sense,” he said. He added, “The school districts are just tickled pink” about geothermal heat pumps.

MLEA has also had some successful installations in other commercial installations, including on several Indian reservations and also in a large hospital.

Key Vendors/Partners/Allies: 

MLEA works closely with various geothermal heat pump contractors, however it does not provide any engineering support. Rather, MLEA is content to provide financing to offset the higher first cost of geothermal heat pumps as a way to build up its local infrastructure of IGSHPA-certified contractors.

MLEA also relies heavily on its contractors to install the systems correctly and stand behind their work, since the utility does not provide any warranties or guarantees.

Future Enhancements Planned/Anticipated: None

Best Way to Learn of New Developments:  Through Moon Lake’s website.

Key Staff Individuals:

Russ Cowan, Manager, Human Resources
Phone: 435 722-5408; Fax 435-722-5453
email: rcowan@mleanic.com

top

.

Northeast Utilities (NU)

107 Selden Street

Berlin, CT 06037;  (800) 286-5000

Website: www.nu.com

Program website: www.psnh.com/

Ownership:  

Northeast Utilities (NU) is an investor-owned utility consisting of three electric subsidiaries and a natural gas subsidiary.

Number of Customers and Service Territory: NU serves more than 1.7 million electric power customers in Connecticut, Massachusetts and New Hampshire and 187,000 natural gas customers in Connecticut. NU is one of the largest competitive energy suppliers in New England and is a major energy trader in the Northeast.

Background:

The Northeast Utilities system was formed on July 1, 1966, when three companies - The Connecticut Light and Power Company, Western Massachusetts Electric Company (WMECO), and The Hartford Electric Light Company - affiliated under the common ownership of Northeast Utilities (NU), the system's parent company. The NU system was the first new multi-state public utility holding company system created since the enactment of the Public Utility Holding Company Act of 1935. In 1967, Holyoke Water Power Company (HWP) joined followed by Public Service Company of New Hampshire (PSNH) in 1992. On March 1, 2000, NU's merger with Yankee Energy System Inc. is complete. NU gains nearly 181,000 natural gas customers in Connecticut through Yankee Gas. NU has more than 7,000 employees.

(source: NU Web Site)

History:

Reasons for program, past/recent activities/programs and or primary drivers.  NU has been promoting energy efficient new home construction for a number of years through its Energy Crafted Home (ECH) program. However, this program was meeting with limited success throughout NU’s service territory. The ECH program was difficult to attract many builders to participate and “we were only going after one or two custom home builders. It was a tremendous amount of work,” explained Cheryl Mattson, Senior Residential Program Administrator.

“So, in 2000 NU adopted a new home standard- the Energy StarÒ Home (ESH) standard. It has lower standards compared to Energy Crafted Home but was easier for builders to adopt. We also started looking at the incentive structure for GeoExchange and came to the conclusion that the utility needed to fully subsidize the cost of the loop installation. It was difficult to get incentives to pay for a dollar per ton basis. I think there is still a level of uncertainty in geothermal installations with the loop and this took the uncertainty out of customers’ hand,” Ms. Mattson added.

Now, all of NU’s subsidiaries promote geothermal systems through the Energy StarÒ Homes program. The utility promotes geothermal technology under its conservation load management program. NU is not trying to promote fuel switching, but rather trying to promote a more efficient alternative to other electric heating choices such as baseboard heat.

Relevant Program Name and Description

Energy StarÒ Home Program

Geothermal heat pumps are just one of many technologies eligible to receive incentives. The utility subsidizes the cost drilling and loop installation of geothermal systems in homes that meet the ESH’s standards. These standards include installing energy efficient shell measures, water heaters, and lighting.

Price/Cost to Customer:  The incentive structure varies depending upon the customer’s electric rate and can be as high as $7,200 depending upon the configuration of measures a customer selects when building a new home.

The difference between NU’s subsidiary on the installation and loop costs and the higher initial cost of the equipment is about $4,000, Ms. Mattson explained. She added, “Customers are willing to pay that. We pay for loops based on bids we get from local contractors and we are able to secure pricing. From the customer point of view, they don’t have to worry about the unseen cost” of the drilling and loop insulation. 

Dates Offered: Program started in 1994-1995  

How/Where Marketed:  The program is being promoted through the Energy StarÒ brand, which has helped raise awareness among residential customers. “The good thing about Energy StarÒ brand is that it is being applied to all technologies. Labeling the brand makes it easier for residential customer to adopt the technology,” Ms. Mattson added.  20% of the homes are market

The program has also been promoted heavily within the contractor community. “The marketing program took off so well through word-of-mouth among well drillers and HVAC installers compared to mass market advertising. We have had (more) installations compared to the past, but with less advertising dollars,” Ms. Mattson said.

Number of Customer Sign-ups:  NU had more than 100 installations in 2000 and the program was fully subscribed with 65 houses within 2 months of program launch in 2001. Moreover, NU has been able to reach production builders that have hundreds or thousands of homes rather than just targeting the small custom builders.

Key Vendors/Partners/Allies:

Subsidizing the looping and installation costs of  geothermal installations, has further encouraged the market infrastructure in NU’s service territory. As Ms. Mattson explained, “Developing incentives has encouraged dealers to reduce costs and so we have had some success. (Contractors) are developing specialized experience with some loops installations in Rhode Island, Massachusetts, and New York.”

Future Enhancements Planned/Anticipated:  NU doesn’t anticipate any changes in its geothermal programs. However, with the investment by dealers and contractors in the geothermal business in NU’s service territory, it will continue to benefit from a more competitive pricing structure.

Ms. Mattson is also anticipating with that with the switch to a different refrigerant for cold climates could lead to further interest among both dealers and customers in geothermal systems.

Best Way to Learn of New Developments: Web site, company newsletters

Key Staff Individual and Primary Staff Contact:

Michael McQueeney, Program Administrator, Energy Efficiency Services
Phone: 603/634-2287
e-mail: Mcquemi@psnh.com

top

.

Otter Tail Corporation

PO Box 496 

215 S Cascade Street

Fergus Falls, MN 56538-0496

Phone: 218/739-8200       

Website: www.ottertail.com

Program website: www.otpco.com/business/comm_tech_heatcool.asp

Ownership:

Investor-owned utility

Number of Customers and Service Territory:  250,000 in Minnesota, North Dakota, and South Dakota

Background:

Otter Tail Corporation is headquartered in Fergus Falls, Minnesota, and Fargo, North Dakota. Its utility subsidiary, Otter Tail Power Company, provides electricity and energy services to nearly a quarter million people in Minnesota, North Dakota, and South Dakota. Otter Tail Corporation operating revenues grew 11.4 percent in 2001.

History:

Reasons for program, past/recent activities/programs and or primary drivers.  Geothermal systems fit naturally with Otter Tail’s business philosophy and competitive position. As Bill Klyve explained, “Otter Tail has a 95 year history in the area and our customers call the utility about everything…People call Otter Tail for advice. Geothermal fits in with a lot commercial applications.”

Relevant Program Name & Description

Geothermal Heating and Cooling

Otter Tail Power Company Minnesota customers are eligible for rebates of $14 per 1,000 Btu of heating capacity for geothermal heat pumps that:

• Meet ARI Standard 330-90.

• Have COP of 3.0 or greater for single installations.

• Have COP of 3.3 or greater for multiple installations.

Dates Offered: Since  1977.

How/Where Marketed:   Since Otter Tail targets commercial and industrial customers, most marketing is directed at key decision-makers. One particularly effective strategy has been to link prospective customers with current owners of geothermal systems. Otter Tail provides lists of customers that have installed these systems, and even arranges for tours of the facilities to demonstrate the systems’ effectiveness first-hand. This lets the owners “sell the system” and has been one of the most effective marketing tools Otter Tail uses, explained Mr. Klyve.

Other marketing activities include giving presentations to school boards and church boards. Otter Tail also offers design assistance and provides information on costs of operating geothermal systems compared to other alternatives such as fuel oil and natural gas.

These strategies seem to be effective as Mr. Klyve added, “We don’t get every one, but we get a lot of geothermal jobs.”

How Customers Enroll/Sign up:  Interested customers contact Otter Tail Power for information on enrollment.

Number of Installations:   Otter Tail staff estimate that there has been about 800 residential and commercial installations. This includes more installations more than 25 installations in schools, nearly two dozen installations in churches, 22 banks, and 12 office buildings. There have also been a variety of installations in auto dealerships, manufacturing firms, health care facilities, and lodging facilities.

Price/Cost to Customer:  Otter Tail offers rebates and incentives to Minnesota customers for a variety of applications including geothermal heat pumps through the state’s Conservation Improvement Programs (CIP). Otter Tail also offers different financing programs for its customers to defray costs associated with the equipment and ductwork.

Otter Tail also recognized that the geothermal system fits well with many interruptible and off-peak rates. So, these lower rates provide an incentive to install geothermal units. By qualifying for lower rates, customers further lower their energy costs, Mr. Klyve added.

This approach has been instrumental at lowering the installation costs of geothermal systems. Mr. Klyve said, “We have had customers get positive cash flow from day one” of the installation.

Key Vendors/Partners/Allies:

Otter Tail has developed a group of installation contractors and drillers that are experienced in geothermal systems. This has driven down installation costs for these systems.

Future Plans: None announced

Best Way to Learn of New Developments: Otter Tail web site, trade shows

Primary Staff Contact:

Jeff Lemen
Manager, Energy Management and Technical Services
Phone: 800/493-3299               
e-mail: jlemen@otpco.com

Bill Klyve, Energy Management Representative 
Phone: 218/739-8200
e-mail: bklyve@otpco.com

top

.

Palmetto Rural Electric Cooperative

1940 Highway 278
Ridgeland, SC 29936;  (843) 726-5551

Website: www.palelec.com

Program website: www.palelec.com/buriedtreasure.htm

Ownership: 

Rural electric cooperative

Service Territory: Palmetto Electric's service area includes Beaufort, Hampton, and Jasper counties of South Carolina.   Palmetto Electric has around 55,000 members.

History:

Reasons for program, past/recent activities/programs and or primary drivers.  Palmetto Electric’s interest in geothermal heat pumps is based on the utility’s desire to promote energy efficient installations to its customers and to provide an alternative to back up strip heat. The back up strip heat used in many homes makes Palmetto Electric a winter peaking utility and that technology “drives our peak up” explained Parrish Neville, marketing representative and geothermal manager for Palmetto Electric.

Relevant Program Name and Description

Buried Treasure^®

The Buried Treasure^® program offers information and rebates for installing a "ground source heat pump.

Price/Cost to Customer: Offers $200 rebate to residential customers up to $1,000. The average cost for drilling the wells is about $1,000.

Dates Offered: Since 1990

How/Where Marketed:  This utility program has been operating for more than a decade. Initially, it was advertised more heavily through radio, newspaper advertising, and contractor outreach. In recent years, this media outreach has slowed down considerably. Now, the program is promoted through Palmetto’s general marketing information.

Palmetto REC offers its members rebates up to $1,000 depending upon the size of the system. However, the smaller lot sizes and housing association covenants make it more difficult to actively promote geothermal systems to its members.

How Customer Signs Up: Interested customers sign up through the electric utility. 

Number of Customer Sign-ups: The REC estimates that geothermal heat pumps have been installed at least 300 homes, totaling about 600 to 700 tons. There have also been a few commercial installations including one in the REC’s headquarters office and one at a local Bed & Breakfast.

How Service Delivered and Billed: Customers sign up though the REC and make their own arrangements for installations.

Key Vendors/Partners/Allies:

Palmetto Electric has worked closely with well drillers and dealers throughout South Carolina. They did looping and sizing training with HVAC, lots of training with Manual J to all contractors.  In the past they have been involved with all the HVAC dealers.

There was an association formed South Carolina Heat Pump Association, involved in that association, in the past- contractors taken it over--  training and heating and cooling, professional contractors association.  However, they have not actively developed any on-going contractor programs. There are only one or two specialized HVAC drillers in Palmetto Electric’s territory and only a few dealers offering geothermal installations.

Future Enhancements Planned/Anticipated: Renew emphasis in its program in the next year or so. 

Best Way to Learn of New Developments: The web site provides information on the geothermal program.

Key Staff Individuals:

Parrish Neville, Key Account Manager

Tom Trout, Original Program Manager,

Primary Staff Contact:

Parrish Neville, Key Account Manager
Phone: 803/943-2211

.

Plumas-Sierra Rural Electric Cooperative

73233 State Route 70

Portola, CA 96122-7064

Phone: 530/ 832-4261;  800/ 555-2207

Website: www.psln.com

Ownership: 

Plumas-Sierra is a member-owned electric cooperative with more than 6,500 customers.

Service Territory:  Operates in Plumas, Sierra, and Lassen Counties, California, and Washoe County, Nevada.

Background:

The Sierra Nevada Mountains, with its rugged terrain and breath-taking views, are home to one of industry’s first and most dynamic geothermal heat pump programs.  Plumas-Sierra REC has a long and distinguished history of developing innovative energy services promoting renewable energy sources.

Plumas-Sierra developed one of the first geothermal heat pump programs in California. It also installed the first all-geothermal subdivision in California, and developed the first loop-lease program.

History:

Reasons for program, past/recent activities/programs and or primary drivers.  Plumas-Sierra was interested in promoting geothermal installations as a way to build load and move customers to a more environmentally friendly heating source. The current geothermal program evolved from a pilot program started in 1996.  This pilot began as an experiment to test the effectiveness of offering a long-term loop lease to offset the higher installation cost of geothermal heat pumps. Paying the loop cost significantly reduces the upfront expense of a geothermal installation and makes geothermal a more price-competitive option. The pilot ended in 1997 and a full program was launched in 1998 with some major changes.

Relevant Program Name and Description

GeoExchange Heat Pumps

Plumas-Sierra offers a 30 year interest free loan and the monthly payment is added to the customer’s monthly electric bill. The amount of the loan is based upon the size of the loop installed as part of the geothermal system.

The program includes pricing points to allow for installations from three to ten tons. The pricing schedule is summarized in the following table.

A comparative chart between geothermal heat pump and propane showed that the operating cost, figuring propane at 52 cents/gallon that geothermal was the best choice.

Price/Cost to Customer:

Since many of the GeoExchange installations are in vacation homes customers are able to leave their heating on all winter long. This reduces their level of concern with frozen pipes or having to winterize the home. Since geothermal heat pumps are so cost-effective, the customer’s heating bills remain relatively low even though they are operating throughout the winter months.

As an incentive, Plumas-Sierra also offers a free 85-gallon Marathon Water Heater with every GeoExchange heating system installed. Plumas-Sierra then is able to obtain the water-heating load, which is an advantage to the cooperative.

Although the installation cost for a geothermal system is 10% higher than conventional HVAC installation, (with the loop lease) the combination of the free water heater and lower monthly energy bills have made this a highly appealing program to PSREC’s customers.

Dates Offered: Since 1997

How/Where Marketed:  Plumas-Sierra provides a comprehensive marketing package that is given to prospective customers, including videos and brochures developed from the Geothermal Heat Pump Consortium. As the program manager, Nell Thomas said, “We don’t skimp on the marketing.”

Ms. Thomas summed up their marketing philosophy in this way; “We try to make geothermal heat pumps very easy to understand. We use terms that “granny could understand, but an engineer would not be insulted by.” This approach has made the geothermal system “the product of choice” when building a new home in Plumas-Sierra’s territory. In fact, Plumas-Sierra has one of the highest ratios of installations for any utility in the United States. The cooperative’s innovative pricing plan has also led to new and retrofit installations in modular and manufactured housing.  

How Customer Signs Up: Interested customers sign up through PSREC. 

Number of Customer Sign-ups: Since 1998, Plumas-Sierra has installed nearly 700 tons of geothermal. Ninety projects were completed in 2001, and these projects include a 10,000 square foot vacation home, High Sierra Animal Rescue, five mobile homes, a PSREC board of director’s home and several employee’s homes.

Plumas-Sierra has been successful in gaining a following in the manufactured home industry. “A large percentage of these affordable homes are retrofitting and installing geothermal systems…people are ordering their homes with the standard propane or electric furnace and are replacing them with GeoExchange systems.”

In 2001, Plumas-Sierra had 90 geothermal projects, which doubled the tonnage from 2000.  Ms. Thomas added, “We are also getting 98% of the water heating load due to the 85-gallon hot water heater incentive...that is a major load and advantageous to the co-op.”

How Service Delivered and Billed: Plumas-Sierra controls costs by coordinating the scheduling of the drilling to minimize cost while maximizing effort. This strategy allows drillers to come in, drill all the planned installations and then leave. This reduces the cost per drill installation substantially and recently Plumas-Sierra had three separate drilling companies working to keep pace with the demand.

Key Vendors/Partners/Allies:  

Plumas-Sierra has developed strong relationships with dealers, installers, and builders throughout its service territory. These relationships have contributed to the program’s phenomenal success.

“We had so many installations that the dealers couldn’t keep up with demand and started refusing work, we then had to bring another dealer on board.  We believe that Plumas-Sierra could have more installations per capita than any other utility in the US… We are also expanding into town home installations with a brand new developer.”

 Future Enhancements Planned/Anticipated:  The cooperative continues to improve the program, which has included streamlining the permitting and approval process required with Plumas County. PSREC negotiated reduced fees for permits and shortened the waiting time. These enhancements have provided another unexpected benefit to PSREC—an improved relationship with Plumas County. “They trust our integrity,” Ms. Thomas explained.

Best Ways to Learn of New Developments:    PSREC will post on its website upcoming field days (installations at customer’s homes). Additional ways include website, news releases, Ruralite, and conferences.

Primary Staff Contact:

Nell Thomas, Marketing Manager
e-mail: nell@psln.com

top

.

Tennessee Valley Authority

400 W. Summit Hill Drive

Knoxville, TN 37902-1499

Corporate Telephone: 865/ 632-2101

Website: www. tva.gov

Background:

The Tennessee Valley Authority (TVA) is a federal corporation created during the midst of the Great Depression to provide low-cost, reliable power in rural communities. As the nation’s largest public power company, it operates fossil-fuel, nuclear, and hydropower plants. Recently, TVA has also been focusing more on using energy from renewable sources and promote resource conservation.

History:   TVA was created in 1933 to provide flood control, navigation, and electric power in the Tennessee Valley region. It provides wholesale power to 158 municipal and cooperative power distributors, 62 large industrial users, and government installations throughout the Valley. The utility serves 8.3 million people. It’s service territory includes most of Tennessee, and parts of Mississippi, Kentucky, Alabama, Georgia, North Carolina, and Virginia, and covers 80,000 square miles.

Relevant Program Name and Description

TVA has developed both residential and commercial programs to promote geothermal heat pump installations, as part of its overall focus on renewable energy and environmental conservation.

For its residential customers, TVA created the energy right Heat Pump Program, which provides both financing and lists of qualified contractors to install geothermal heat pumps. As part of this program, TVA had developed a list of pre-screened installation contractors.

TVA has also developed a successful geothermal heat pump program targeting the small commercial and institutional markets throughout its service territory.  To date, geothermal heat pumps have been installed in more than 200 schools throughout its service territory.

In addition to low-cost financing, TVA also provides commercial and industrial customers considering geothermal installations the following services:

• Site-specific feasibility studies. Prepared by an independent engineering firm, these studies compare various types of space-conditioning systems in terms of initial costs, annual energy and maintenance costs, and life-cycle costs.

• Drilling test bores. This ensures that your site is suitable for geothermal-loop field piping.

• Soil thermal-conductivity testing. This assesses the capacity of the ground at your site to transfer energy to and from the geothermal-loop field piping.

• Technical assistance for your design engineer

• A credit on your power bill if you meet certain eligibility requirements

• Leasing options for your geothermal system.

Price/Cost to Customer:  Varies, depending upon the installation costs for both residential and commercial programs. However, TVA provides low-cost financing of geothermal heat pumps for both residential and commercial installations.

Dates Offered:  TVA has been promoting geothermal heat pumps since 1996. It began promoting residential geothermal heat pumps in 1998.

How/Where Marketed: TVA markets the program through its 158 municipal and cooperative power distributors. TVA supports this program through marketing, cooperative advertising, and technical support.

How Customer Signs Up: Residential customers contact their local power distributor or TVA directly. Schools and commercial accounts contact TVA’s Large Commercial and Industrial Department.

Future Enhancements Planned/Anticipated:  None anticipated at this time

Best Way to Learn of New Developments: The website

Primary Staff Contact: 

Steve Morrow, TVA Marketing Manager
Phone: 615/232-6801
e-mail: wsmorrow@tva.gov

.

Yellowstone Valley Electric Cooperative

P.O. Box 249

250 Cooperative Way

Huntley, MT 59037-0249

Phone: 406/348-3411

Website:  www.yvec.com

Program website: www.yvec.com/programs

Ownership:  

Yellowstone Valley Electric Cooperative (YVEC) is a private, non-profit electric cooperative owned by its members in Montana. It is one of the oldest electric cooperatives and currently has approximately 50 employees.

Background:

 Tucked away in this remote corner of Montana resides one of the oldest and most successful geothermal programs in the United States. The cooperative began in 1937 by a group of early Montana settlers and this pioneering spirit continues today, as demonstrated by its commitment to innovative electric programs.

History:

The geothermal heat pump program was initially developed as a way to promote this new technology to the cooperative’s members. However, with the advent of deregulation and the increased competition from natural gas providers, geothermal systems are now also viewed as a way to retain customers and compete more effectively with natural gas.

Number of Customers and Service Territory: YVEC serves 13,500 customers on 2,200 miles of electric lines in Yellowstone, Stillwater, Carbon, Big Horn, Musselshell, and Treasure Counties.

Relevant Program Name and Description

Geothermal Heat Pump (GHP) Program

YVEC offers rebates of up to $1,000 to residential customers and up to $5,000 for commercial customers to encourage the installation and offset the higher cost of geothermal heat pumps. YVEC’s program promotes the superior energy efficiency, comfort, and safety that geothermal heat pumps offer customers.

Dates Offered: YVEC started offering geothermal heat pump rebates in 1989.

Price/Cost to Customer:  

Yellowstone Valley Electric Cooperative’s rebate structure minimizes the out-of-pocket installation costs to its members.

Residential installations - $200/ton rebates with a $1000 maximum are available.

Commercial Buildings - $150/ton rebates with a $5000 maximum are available.

There is also a state tax credit of $250/year up for up to 4 years ($1,000)

Geothermal program manager Brandon Wittman explained, “The system costs is about 1.5 to 2 times more than a conventional system. However, with the incentives and the tax credits, we are able to bring down the extra cost to only $4,000, This makes geothermal a good buy for customers,” since the higher installation costs is offset by lower heating and cooling costs.

How/Where Marketed:  YVEC has prepared a marketing package that it sends out to interested customers. This information packet includes:

• A description of the program and the incentives provided;

• Lists of qualified geothermal heat pump dealers and installers 

• Informational materials describing how and why geothermal heat pump systems work

• Diagrams of the geothermal heat pump process and

• A summary of the benefits that geothermal systems provide to the environment, fuel savings, and customer savings.

How Customer Signs Up: Enrollment is through the REC.

Number of Customer Sign-ups:  To date, there have been about 400 commercial and residential geothermal heat pump installations throughout YVEC’s service territory. The cooperative averages about 25 installations per year, which is fairly high considering the entire service territory has only 13,000 people.

According to Wittman, Yellowstone Valley continues to promote installations among both commercial and residential customers. Recently, the cooperative installed a 40-ton system with 30 wells for its new office headquarters in Huntley, Montana.  

“We have been pretty successful in the commercial and residential areas…the commercial market is making strides and we’ve received help from the GHPC” for commercial projects,” he added.

How Service Delivered and Billed:  YVEC works closely with the trade allies to facilitate the installation of a geothermal heat pump system for its customers. The cooperative also helps customers complete the required paperwork to qualify for Montana’s state tax credit of $250 per year for up to 4 years. This state tax credit is designed to encourage the purchase and installation of energy efficient equipment, such as geothermal heat pumps, and is often a contributing factor in encouraging customers to select geothermal heat pumps.

Key Vendors/Partners/Allies:

Through the years, YVEC has developed relationships with the drillers and dealers operating in the cooperative’s service territory.

Wittman explained, “The utility acts as a facilitator in the installation process. There are three reliable dealers in this area that install geothermal and each is highly recommended. We have formed a relationship. Each dealer installs a variety of equipment from various manufacturers…We also have a good relationship with a local driller working for Bertram.”

Future Enhancements Planned/Anticipated:  YVEC is continuing to promote geothermal heat pump systems through its high visibility installations and on-going marketing activities.

Best Way to Learn of New Developments: YVEC promotes the geothermal heat pump program on its website, through trade shows, bill stuffers, newsletters, and also word-of-mouth.

Key Staff Individual and Primary Staff Contact:

Brandon Wittman, Program Manager
Phone: 406/348-3411
e-mail: bwittman@yvec.com

top