Entergy New Orleans LLC · NYSE:ENJ
Entergy New Orleans — Corporate Update (November 2008)
17 slides from Entergy New Orleans's corporate update, Nov 19, 2008
Slide 1: Helping to Meet Future Energy Needs Through Cost Effective Demand Side Management
Helping to Meet Future Energy Needs Through Cost Effective Demand Side Management November 19, 2008
Slide 2: Demand Side Management's Role in Resource Planning
Demand Side Management’s Role in Resource Planning Presentation Objective: Review / Discuss the process for integrating DSM into the overall resource planning process What This Presentation Includes: • The process used to identify the cost effective DSM opportunity for the Entergy New Orleans servic
Slide 3: What is Demand Side Management (DSM)
What is Demand Side Management (DSM) Demand Side Management (DSM) is a set of actions, activities or measures that impacts energy use, energy use patterns or customer behavior as it relates to energy consumption. DSM includes: • Conservation: Activities / actions that reduce energy use through chang
Slide 4: Steps to Becoming More Energy Efficient
Steps to Becoming More Energy Efficient… Achievable Potential [3] Market – Driven Efficiency [2] Codes & Standards [1] Utility Programs Encourage Consumers Respond to Increased Adoption Technology Improvements and Market Effects Consumers Comply with Efficiency Mandates [1] Consumers comply with min
Slide 5: Key Steps to Develop and Implement an Integrated DSM Strategy
Key Steps to Develop and Implement an Integrated DSM Strategy Identify Market Achievable DSM Potential DSM Potential Establish Equitable Regulatory Framework Stakeholder Communication Regulatory - Process to allocate cost and benefits Framework Integrate Cost Effective DSM into DSM Programs Develop
Slide 6: DSM Potential Study: Background
DSM Potential Study: Background DSM Potential • Identify “market achievable potential” for Entergy’s service area by Study jurisdiction Objectives • Estimate program costs to capture achievable potential • Identify / prioritize cost-effective programs • Contracted with ICF to perform analysis Proces
Slide 7: Types of DSM Potential Studies
Types of DSM Potential Studies Technical Potential The theoretical maximum amount of energy use that could be displaced by efficiency, disregarding all non-engineering constraints such as cost-effectiveness and the willingness of end-users to adopt the efficiency measures. Economic Potential Refers
Slide 8: Various Benefit-Cost Ratios Describe Distribution of Value for Stakeholders
VARIOUS BENEFIT-COST RATIOS DESCRIBE DISTRIBUTION OF VALUE FOR STAKEHOLDERS FROM IMPLEMENTATION OF DSM PROGRAMS Total Resource Cost (TRC) Test : The total costs and benefits of a program, including costs and benefits to the utility and the participants and the avoided costs of • The TRC test represe
Slide 9: Process Flow Chart
Process Flow Chart ICF Proprietary and Confidential prTEaaATOAL
Slide 10: DSM Potential Study: High-Level Summary of Analytical Approach
DSM POTENTIAL STUDY: HIGH-LEVEL SUMMARY OF ANALYTICAL APPROACH • Highly-detailed analysis was completed for Entergy New Orleans for the residential, commercial, and industrial sectors • For each sector, unique factors were considered: • program costs • building types • customer counts by type • weat
Slide 11: Market Scenarios / Assumptions to Measure DSM Potential
Market Scenarios / Assumptions to Measure DSM Potential Low case Reference case High case Gas price $5.0 / MMBtu $7.60 / MMBtu $12.0 / MMBtu CO2 price $10 / ton by 2020 $25 / ton by 2020 $50 / ton by 2020 New capacity cost $350 / kW $680 / kW $850 / kW Net to gross ratio Same as reference 80% Same a
Slide 12: ENOI – Estimated 10 Year DSM Potential
ENOI – Estimated 10 Year DSM Potential Energy Demand 10 Year Cumulative % of Cumulative % of Cumulative mWh Saved Total % of mW Saved Total % of Program over 10 Energy Sales over 10 Demand Demand Cost Years Forecast Growth Years Forecast Growth (Thousands) Low 57,829 1.2% 16.8% 40 4.4% 32.2% $18,061
Slide 13: Projected CO2 Reductions from DSM Program Energy Savings
Projected CO2 Reductions from DSM Program Energy Savings It is estimated that DSM programs implemented over a ten year time frame in ENO’s service area could avoid 40,682 Metric Tons of CO2 Which is equivalent to: – Annual GHG emissions from 6,759 passenger vehicles – CO2 emissions from 4,189,113 ga
Slide 14: ENOI - Cumulative Energy/Demand Saved Over 10 Yrs
ENOI - Cumulative Energy/Demand Saved Over 10 Yrs Low Scenario Reference Scenario High Scenario Energy Ind Ind mWh Ind 14% 16% 17% Res Com Res Com Res 48% 30% 56% 27% 57% Com 35% 57,829 mWh 114,565 mWh 171,499 mWh Demand mW Ind Ind 4% Ind 5% 4% Com Com Com 19% 22% 20% Res Res 74% Res 76% 76% 40 mW 7
Slide 15: ENOI - Reference Scenario – DSM Energy/Demand Saved Over 10 Yrs
ENOI - Reference Scenario – DSM Energy/Demand Saved Over 10 Yrs Residential Commercial Industrial Energy Lighting HVAC Demand 5% mWh 4% Response 0% Custom CHP Other New Lighting HVAC Existing 11% 0% Appliances 12% 13% Appliances 2% 18% Drives 17% NEW Compressed New Pricing & Lighting 1% Air Construc
Slide 16: Next Steps
NEXT STEPS • Continue to work with the City Council and Key Stakeholders to develop an integrated DSM approach and the regulatory framework to implement cost effective DSM programs on a larger scale • Roll out initial energy efficiency programs that address low hanging fruit and the immediate needs
Slide 17: Building a Comprehensive DSM Platform
Building a Comprehensive DSM Platform Smart Pa Grid rti y x it Tech. enabled c ip a pl e and Advanced t io m Pricing Programs Co n /M of W Demand Response Programs el ev & /L M Traditional EE Programs for All Customers W st H Co Sa Low Income Weatherization vi n gs Education & Awareness Underway Pla
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