Energy Efficiency and Conservation
Direct Use Program Proposal
Washington Gas Light Co.
For Discussion with EmPOWER Maryland Stakeholders
January 27, 2012
Key Message
The direct use of natural gas at the retail level:

Facilitates achieving EmPOWER MD electricity reduction
goals

Encourages wiser, more efficient energy use

Delivers environmental benefits to the region and the State of
Maryland

Realizes the objective driving DOE to adopt improved methods
for measuring energy efficiency and GHG emissions
2
Natural Gas Direct Use is More Efficient
3
Direct Use of Natural Gas Replaces
Less Efficient Electrical Appliances
 Reducing the population of electrical appliances delivers
definitive energy savings
– Replacement of Average Heat Pump
• Annual Savings: 5,806 kWh
– Replacement of Average Hot Water Heater
• Annual Savings: 3,713 kWh
• Peak Demand Savings: 339 kW
Natural Gas Conversions will help the state reach its
EmPOWER Maryland goals
4
Cost Effects of End-Use of
Natural Gas

Decoupling creates necessary regulatory environment
– Neither utility is unduly harmed or advantaged

Usage of natural gas for electric generation creates upward
pressure on natural gas prices
– Carbon constraining regulations and abundant natural gas
reserves likely to drive expansion of gas-fired generation

Current incentives may further increase demand for electricity

Available supplies of natural gas have dramatically increased
due to shale E&P efforts in recent years
5
Space Heating
6
End-use of Natural Gas Delivers
Environmental Benefits
Pennsylvania Public Utilities Commission
En Banc Hearing Presentation – Paul Raab, EnergyTools LLC
http://www.puc.state.pa.us/electric/dsrwg_DSR_enbanc_Hearing.aspx
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Program Features
 Convert estimated 800 homes annually to natural gas space
and water heating
 Utility paid incentives cover
– High efficiency appliances
– Customer contribution for average line extension
 Administered as part of Washington Gas’s existing on-main
conversion program
 Rapid implementation
 Report to MD PSC on program results
8
Example Incentives and
Expected Results
Party
Utility Incentive
Customer
Contribution
$5,400
$4,700 (est.)
Estimated Participants
Expected Annual Savings
Expected Demand Savings
Est. Annual CO2 Elimination
TRC Test B/C Ratio
800
7,615 MWh
339 kW
2,468 tons
1.07
Cost Effective Results
Proposed Program Lifecycle Costs
$5,308
5,806 kWh * 18 yrs + 3,713 kWh * 10yrs
10
= 3.7¢ / kWh