What Happened?
The mayor of Seattle, Mike McGinn, announced a three-year pilot project to test an energy conservation concept known as “pay for performance.”
Who Cares?
The program, which Gov1 believes is the first in the country, could provide a new model for energy savings that limits financial risk for cities and electric utilities.
Details
The program will be run through “Seattle City Light,” the electric company that has served the city since 1902. City light will provide financial incentives through annual payments “for incremental energy savings.” This is different from a one-time rebate, said City Light Superintendent Jorge Carrasco. “We are looking for partners who can create a modeling tool that can be replicated for future investments,” he said.
Specifically, the city is wants to achieve greater energy savings based on customers’ power use; the utility receives the benefit of actual delivered energy savings performance, with limited financial risk.
The Program
According to press release from the city, Seattle City Light will be looking to work with three commercial office buildings in their initial pilot.
Those buildings can combine capital, operations and maintenance, and behavioral change activities in their responses. The utility will be reviewing the modeling tools used by customers or their partners to estimate energy savings. Energy savings achieved will qualify for incentives at 3 cents per kilowatt-hour. Customer participants will be responsible for documenting their energy-saving actions, and reporting on a monthly basis; a detailed annual report will also be required, summarizing key initiatives and results.
The Process
The city will seek three commercial office buildings to participate in the pilot. The buildings will partner with the city to develop innovative and “verifiable approaches” to conservation. The city is expected to issue a request for proposals in early November, and commercial properties can then apply to participate.
More importantly, City Light will be sharing information with other utilities and organizations in the region. That could be a catalyst to replicate the program in other cities.
More Information
If you’d like more details on the program, consider contacting City Light Superintendent Jorge Carrasco directly via email or at 206-684-3200.
Do you have experience with—or have you seen—other pay-for-performance models related to energy conservation? If so, we want to hear from you. Contact us via email or toll-free at 855-4-EFFGOV.