Deregulation Provides Incentive to Conserve - New Meters at LCRA Offer a Closer Look at Facility Costs

Abstract

Prior to Texas' electric utility deregulation, the Lower Colorado River Authority's (LCRA's) facilities and plant station service energy use was considered a cost of business - power consumed and never sold. Preparation for competition under Senate Bill 7 meant meters had to be placed at all of LCRA's generation facilities; electric bills followed for the first time in 2001. Plant managers now must include the metered cost for station service in their operating budgets. This change provided an important incentive to conserve. Senate Bill 5 set goals to reduce energy use by political entities such as LCRA. LCRA's in-house energy auditor had previously performed energy audits for LCRA's wholesale customers whose retail customers needed help to improve energy efficiency. LCRA energy services developed experience in contracting to install interval data recorder meters for its customers. Now this department is helping facility managers monitor their own energy use as they begin paying bills for the first time. Impacts of metering; case studies of plant and administrative facilities that requested audits; and implementation of recommended measures follow.