Being a Municipal Electric Utility is Like Being a Member of a Special Fraternity. The responsibility for electric power is a community responsibility, as all are stakeholders in the utility's management. Silicon Valley Power (SVP), the municipal electric utility for the City of Santa Clara, California, U.S., takes this responsibility seriously. This is reflected in the programs and services SVP offers its commercial and residential customers.

SVP has adopted a core set of objectives that enables it to meet its customers' needs:

• Be competitive in the marketplace with a continuous focus on customer service

• Provide economic value to the City of Santa Clara and utility customers by maintaining low and competitive rates for all customer classes

• Be a strategically driven organization with a focus on performance as an energy-services supplier

• Operate the utility in a safe, reliable, efficient and environmentally responsible manner

• Enhance value for customers through the delivery of new products and services

• Develop the flexibility to respond to changing business environments

• Achieve quality communications with all stakeholders

• Expand the production of renewable energy and improve energy efficiency to meet consumer demands for power without increasing carbon-dioxide emissions

• Become more efficient in electric use by adopting new technologies and avoiding waste

• Encourage the adoption of energy-efficient habits, from buying ENERGY STAR appliances and environmentally sound products, to driving energy-efficient vehicles and recycling.

COMMITMENT, CONTRIBUTION AND COMMUNITY

As one of more than 2000 community- or state-owned electric utilities that collectively provide electricity on a not-for-profit basis to 43 million Americans, SVP provides: competitive rates consistent with reliability, community goals and sound business practices; greater reliability than investor-owned utilities; efficient service; in-town management and operations leading to more innovation; a commitment to conservation, safety and the environment; and the ability to match local resources to local needs.

The utility places an emphasis on long-term community goals and contributes to its local community's coffers, allowing a greater portion of revenues to remain with the residents and businesses in the City of Santa Clara. The commitment of the municipal electric utility to its community enables SVP to maintain control over electric distribution system design and programs, to use local resources and to achieve common long-term goals.

SVP offers affordable and reliable energy at rates 25% to 45% below neighboring communities to more than 50,000 customers, including Applied Materials, Intel, Microsoft, National Semiconductor, Sun Microsystems and Yahoo Inc.

All of SVP's programs — the award-winning Santa Clara Green Power, a 100% renewable energy program; a broad range of rebates for both residential and commercial customers; the Neighborhood Solar Program; turnkey services; one-stop shopping for energy-efficiency upgrades; and free energy audits — contribute to energy savings and efficiency. SVP has achieved success in energy conservation and efficiency by rewarding its community for doing what is good for the environment.

ENERGY-EFFICIENCY PROGRAMS

SVP's “Optimal Power Use Service” (OPUS) paves the way for easy installation of energy-efficient lighting and equipment in facilities. Through OPUS, SVP staff members manage an entire equipment-upgrade project, from start to finish, by identifying and implementing cost-saving opportunities, obtaining competitive bids from vendors, monitoring construction and ensuring rebates.

The “Keep Your Cool” program replaces refrigeration gaskets and strip curtains for free, further enhancing customers' ability to be more efficient in their use of energy.

A free, on-site energy audit assesses a business's electrical equipment, energy usage and needs, and makes cost-saving recommendations. From there, customers can actually have the utility help them install efficient equipment.

Turnkey services under “The Bright Start” program help businesses move into Santa Clara properties with energy-saving equipment already installed. The program also provides promotional incentives (up to 150% of normal rebate levels) for brokers, property managers, owners and prospective tenants to upgrade facility lighting and HVAC.

REWARDS FOR ENERGY SAVINGS

SVP enables businesses to enjoy energy savings up to $1/sq ft per month and helps to reduce costs through tailored services and rebates that reward customers for installing energy-efficient lighting, LED exit signs, HVAC systems and motors, chillers, LCD monitors and commercial washing machines. Examples of these bottom-line improvements for our customers from rebates include replacing less-efficient T12 tube lamps with high-efficiency T8s. For most businesses, this upgrade typically has a payback of 18 months or less. Another excellent rebate is for LED exit signs, which cost about $1 a year to operate compared to $25 for the old kind.

Commercial customers also may take advantage of customized energy-saving rewards for customer-directed projects that decrease electrical usage and for new-construction rebates. Incentive levels for consumer-directed rebates are up to $2 million per customer per year, up to 80% of the project's cost. New-construction rebates reward new, expanded or renovated facilities in Santa Clara using energy-efficient equipment exceeding legal requirements. Once a facility is up and running, SVP helps increase the energy performance of building systems and equipment efficiency through its compressed air system and retro-commissioning programs. During the last fiscal year, SVP conducted 59 free audits for businesses, saving 1770 kWhs, and paid out 575 rebates, which saved more than 9.5 million kWhs.

TARGETING RESIDENTS

Residential customers also benefit from a free audit, evaluating energy usage and demand, and the resulting energy-saving recommendations. During the audit, they receive four compact fluorescent lights, a LimeLite nightlight, an easy-to-install digital thermometer and a programmable ENERGY STAR-certified thermostat.

SVP rebates, which promote saving money and energy, provide residential customers with $50 for purchasing a new ENERGY STAR refrigerator, but only if they recycle their old, less-efficient one, which earns another $35. Rebates up to $175 are available for installing insulation in the attic or upgrading existing insulation; $200 for installing a whole-house fan; $25 for recycling an old room air conditioner; and $20 for purchasing an ENERGY STAR-qualifying LCD computer desktop monitor.

During the July 1, 2006 to June 30, 2007 fiscal year, SVP performed 204 free audits for residential customers, saving 251,124 kWhs. Residents received 1827 rebates for a savings of another 932,219 kWhs.

SVP ON THE WEB

Both of SVP's websites — one for all customers and one specifically devoted to new business customers — provide information on ways to save energy, energy education, home energy audits, appliance energy-use charts and a variety of other tools.

Among the offerings is SVP's HomeEnergySuite, a robust set of online energy-conservation tools developed by APOGEE Interactive (Tucker, Georgia), a provider of online solutions for the energy industry. The suite offers its flagship tool, the HomeEnergyCalculator, which helps customers determine energy consumption from their appliances, electronics and lighting; find out how to conserve energy in each area of their house; and take advantage of many energy-saving tips.

GREENING THE ENVIRONMENT

SVP has already reached a goal of 30% of its power coming from eligible renewable resources from geothermal, small hydroelectric and wind sources, with an additional 21% of clean power when large hydroelectric sources are taken into consideration. The accomplishment places SVP way ahead of California's goal of 20% renewable power (excluding large hydro) in the total mix by 2010.

SVP is committed to providing low-cost power, while also leaving a clean footprint on the environment. Initiated in November 2004, SVP's Santa Clara Green Power, a 100% renewable wind and solar energy option, has already garnered 8.5% participation, as of September 2007, quickly nearing the City of Santa Clara's challenge to reach 10% by the end of the year. Santa Clara Green Power costs residents just a penny and a half extra per kilowatt-hour, while businesses may purchase a 100% renewable green power or buy blocks of 1000 kWhs for $15 each.

The average Santa Clara Green Power residential participant will prevent 5640 pounds of carbon dioxide and harmful particulates from entering the atmosphere each year. This translates into environmental and air-quality benefits equivalent to planting 380 trees or not driving a car for six months.

SVP also sponsors the Neighborhood Solar Program, which supports the installation of solar electric systems on community facilities such as Haman Elementary School and Valley Village Retirement Community for just $5 or more a month from customers. SVP supports solar electric system installations for residents through a $4.50/watt rebate for installing a home solar electric system. Businesses also can earn rebates for installing solar electric systems.

SVP's customers want the company to be green, to pay attention to the environment and to create ways to renew our resources. The municipal electric utility works hand in hand with customers to try to fulfill their needs. Thus far, SVP's 30% eligible renewable resources, rebate participation and high customer satisfaction rates — as indicated by annual residential and commercial independent studies conducted by RKS Research and Consulting — illustrate SVP's success.

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Joyce Kinnear has been the public benefits manager for the City of Santa Clara's municipal electric utility, Silicon Valley Power, since 1998. She is responsible for energy-efficiency, renewable-energy, new technology demonstration and low-income programs for residential, business and government customers. Previously, she worked for PG&E Energy Services as a senior rate analyst, and also served as manager of rate analysis for six utilities at the City of Las Cruces, New Mexico. She has a bachelor's degree from the University of Maryland, European Division, and a master's degree in public administration from New Mexico State University.
jkinnear@ci.santa-clara.ca.us