Agenda Packet 2-11-19 Joint Work Session

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M E M O R A N D U M EUGENE WATER & ELECTRIC BOARD TO: EWEB Commissioners, Mayor and City Council FROM: Frank Lawson, General Manager DATE: January 31, 2019 SUBJECT: Smart Electrification OBJECTIVE: Information Only Issue This memo is a general definition of smart electrification for discussion at the February 11, 2019 joint meeting of the EWEB Commissioners and City Council. Background Comprehensive plans for deep decarbonization include foundational improvements in energy efficiency and conservation, low-carbon electricity, electrification, and low-carbon fuels. As an electric utility, EWEB is involved in all of these aspects of deep decarbonization, which provides the basis for our Climate Change Policy. Discussio n Presently, EWEB has activities and programs in all four areas required for deep decarbonization. We design these programs based on social, environmental, and economic benefits for our entire community. For two decades, EWEB has had a robust energy efficiency and conservation program. Over the past few years, while cutting cost in other areas, our energy efficiency department funding has increased. For over a century, the decisions associated with electricity generation have resulted in the assembly of a generation portfolio that has a low average carbon content. And, more recently we’ve launched incentives intended to leverage the efficiency benefits of electricity, including the “A fossil-free world starts at ho me” campaign. Because of the complexities of the energy system, electrification needs to done in a way that’s socially responsible, economically viable, reliable, and produces the intended reduction in carbon without unintended negative consequences. Based on these considerations, EWEB considers smart electrification to have the following characteristics. Energy Cycle Benefits – Smart electrification will have benefits across society as determined using the entire energy cycle, including acquisition/generation, conversion efficiencies, transmission losses, and end-uses. Demand Response Capable – The electricity use has the potential to be shifted to more beneficial times, as carbon content, reliability, and cost are all highly dynamic and have regional impacts. Cost Effective – It is important for the electricity sector to be competitive with other sectors, and maintain affordability in all social-economic sectors. Electrification will be impacted by consumer choice, which generally includes an economic component. Non-Coincidental Peak – Increases in electric use during seasonal and daily peak times, with little ability to shift, will cause significant investment and will result in little carbon benefit. ATTACHMENT D February 11, 2019, Joint Work Session - Item 1