Electric utilities viewed a reward system — carrot and stick techniques — as the best incentive to achieve energy efficiencies. And with money as the carrot, sticks would not be needed.
For the first few years, pilot programs were tested to find out what worked and to smooth out kinks. The utility companies began building partnerships, soliciting bids and offering financing for measures that would increase efficiency and reduce demand.
One goal of the incentive programs was a desire to reduce or shift peak energy demand and consumption. Utilities calculate the value of saved electricity through the avoided cost of building future sources of electricity generation and then reward customers based on their kilowatt (KW) demand or kilowatt-hour (KWH) energy savings. Almost any efficiency measure that saves electricity may qualify for an incentive payment.
Ski resorts, particularly those with large snowmaking plants, are ideal businesses to take advantage of such programs. Today, electric utilities in several states are giving money to ski areas as a reward for energy efficiency.
Many of these money- and energy-saving programs have not been extensively promoted, but several ski resorts that have been approached by utility representatives have profited through upgrading systems, improving procedures and installing new equipment. Here are a few examples of how the incentive programs work.
Paying for Air and More
Two Maine ski resorts worked with Central Maine Power (CMP) to install energy efficient snowmaking equipment. CMP paid over $1.5 million to ski area customers in the last five years as part of its Power Partners and Efficiency Buy Back incentive programs.
CMP’s Power Partners program helped Sugarloaf/USA install a new, power-saving snowmaking system. “We developed a cost-per-acre-foot-of-snow payment schedule that allowed CMP to award $350,000 toward the installation of 200 new Delta Ringer snowmaking guns,” said John Dillar, vice president of Sugarloaf’s mountain operations. “CMP gave us another $300,000 up front toward three new centrifugal compressors to increase pressures from 100-pound to 150-pound air.”
The new compressor system is projected to save the area approximately 1.2 million KWH per year or nearly $62,000. And the improvements increased Sugarloaf’s snowmaking efficiency by 40 percent overall.
CMP’s Efficiency Buy Back program supported significant improvements at Sunday River ski resort including a snowmaking computer management system, five strategically placed remote weather stations, energy efficient 420-horsepower pumps, 700 state-of-the-art Delta Hydrolink Avalanche Guns, larger pipelines and a warm-water anti-freeze injector system for remote guns locations.
“CMP has paid $1.2 million toward the cost of our improved Delta Hydrolink snowmaking system,” said Burt Mills, vice president of mountain operations at Sunday River. “The program has helped us to implement a menu of electric efficiency improvements and install one of the most powerful and technically advanced snowmaking systems in the country.”
Actual savings from the efficiency improvements at Sunday River during the 1991-92 season were more than 4 million KWH, which is valued at over $200,000 a year based on today’s CMP electric rates.
Snow and Heat Earn Rewards
Massachusetts Electric offered incentives to resort customers or the use of energy efficient electrical equipment in the design, construction, renovation and operation of customers’ facilities. In working with Wachusett Mountain, Massachusetts Electric provided incentives to cover the difference between standard efficiency and high efficiency equipment.
“After we used the new Snow Economics tower guns, we found that we were eight times more efficient in our snowmaking operations,” said Jeff Crowley, president of Wachusett. “Massachusetts Electric’s $70,000 energy efficiency incentive gave us a new perspective on snowmaking and made the decision to purchase the tower guns that much easier.”
Wachusett received $1,250 per KW (adjusted) with a permanent reduction of 750 horsepower air compressor load as the result of the installation of the tower guns.
Wachusett also installed a computer-monitored heat-recovery system that moves compressor exhaust air to heat the base lodge. The custom program provides an interface between the air compressor and base lodge to maximize the heating efficiency of the entire operation. Massachusetts Electric awarded the ski area $30,000 for this energy efficiency measure.
Audits Identify Power$avers
In Vermont, Green Mountain Power (GMP) has a Power$avers program that offers 100 percent payment for certain energy efficient measures, including audits, lighting and programmable thermostats. There are also smaller cash incentives for other qualifying measures including heating, ventilation, and air conditioning and motor improvements, and technical assistance for energy-efficient upgraded improvements and new construction.
At Sugarbush, GMP paid for a walk-through survey of the entire resort that yielded a variety of potential energy efficiency measures scheduled for the near future.
“Our first installation will be a total lighting retrofit,” said Ray Staskus, snowmaking and energy manager at Sugarbush. “We plan to install high efficiency fluorescent lighting using the T8-type lights with electronic ballasts, metal halide lights to replace old mercury vapor outdoor lighting and halogen spots to replace existing incandescent spot lighting. Our lighting retrofit qualifies as an accelerated measure under the Power$avers program which means GMP will buy down our investment to a two-year payback.”
At Mount Snow, Power$avers identified two types of energy efficiency measures: accelerated measures that may be implemented immediately, and standard measures that require further engineering studies. “Mount Snow is planning to retrofit some corridor lighting which would save 5.6 KW, 49,300 KWH and $2,600 annually,” said Steve Bessette, facilities manager at Mount Snow. “GMP will pay for $1,080 of the $6,400 installation cost.”
The utility will also assist Mount Snow in funding energy analysis studies for standard measures. To motivate Mount Snow to install the measures, GMP will pay for the first 50 percent of the engineering study cost upon completion of the study and the final 50 percent upon installation of the recommended energy efficiency measures from the study.
Dollar Saver Rebates
In New York, Central Hudson offers energy efficiency financial incentives to customers through its Dollar Savers Rebate and competitive demand-side management bidding programs. The utility pays a dollar per KW demand reduction as well as a dollar per KWH energy reduction.
It was through the Dollar Savers Rebate program that Hunter Mountain received incentives to improve the efficiency of its snowmaking operations.
“The area’s expansion plans originally called for the addition of 2,000-3,000 horsepower of air compressors,” said Dave Slutzky, mountain manager at Hunter. “Central Hudson has subsidized the cost of installing 175 fan guns with $250,000 so far, avoiding the planned air compressors and potential load on the electric system. We hope to continue adding snowmaking to each trail until we can cover 100 percent of our mountain with snow.”
Hunter also received a reduction of $27.50 per horsepower through the installation and operation of variable speed drives on water pumps. The total amount of this award was based on sizing and how Hunter operated the pumps during the entire snowmaking season.
Competitive Bidding Pays Cash
Public Service Company of Colorado (PSC) offers Demand-Side Management Bidding Programs that pay customers to reduce or shift the peak electric demand on a cash award per-KW-saved basis. The competitive nature of the bidding programs is intended to generate market-driven costs for implementing demand-side management measures.
PSC accepts bids both from customers and third parties interested in implementing energy efficiency measures in PSC-customer facilities. Resort customers have benefited by financial rebates for electric-to-gas heating conversions and snowmaking efficiency improvements under the bidding programs.
Snowmaking system features qualifying for rebate moneys included: computer control system, cooling towers, automated hydrants and strategically located weather stations. Last year, PSC awarded Keystone over $585,000 for more than 2,900 KW demand reduction on its York Automatic Snow system. “This rebate check is the first step in realizing our return on investment,” said John Rutter, vice president of mountain operations at Keystone. “The system allows us to make more snow at lower operating costs. The skier benefits from our ability to make a better quality of snow and more of it earlier in the fall.”
As part of a third-party bid, Breckenridge Ski Corporation received financial incentives to install gas heat instead of electric heat in the newly-expanded Fantaski Children’s Center. “The opportunity to install gas instead of electric heat will reduce our annual heating energy costs and provide a more comfortable environment for our young guests at the resort,” said Scott Yule, electrical manager at Breckenridge. “We were able to install in-floor, radiant hydronic heat instead of inefficient overhead electric unit heaters. Now the kids can walk barefoot across the floor if they want to!”
Eldora Mountain resort and PSC have combined forces to optimize the growth of the ski area with existing electric resources, while minimizing electricity consumption. Under an award to a third party, Eldora was able to buy five fan guns at greatly reduced costs.
“We got a terrific deal,” said Tom Spangler, general manager of Eldora. “PSC energy and financial incentives allowed us to buy SMI fan guns at 40 percent of cost. This has helped us improve and expand our snowmaking capability quickly and provide excellent snow conditions for skiers.”
Incentives
Sierra Pacific’s Peak Performance Program in California and Nevada is designed to pay an incentive for energy efficiency to customers who reduce demand on snowmaking systems between peak times of the day. Cash incentives for permanent power reduction measures are negotiated based on customer need and benefit to the utility. As a win-win partnership, the more a customer saves, the more Sierra Pacific will share in the project cost.
Sierra invites Tahoe ski resorts to apply for incentives on adjustable speed drives, energy efficiency thermal storage, energy management/load control, industrial process efficiency and load shifting, among other possibilities.
100 Percent Cash Advances
Pacific/Utah Power’s Energy FinAnswer is an innovative program that advances up to 100 percent funding for the design and installation of various proven technologies that save electricity at customers’ facilities. The Energy FinAnswer advance is returned through energy services installment charges on customers’ monthly utility bill.
The program focuses on motors, variable speed drives, air compressors, refrigeration and lighting. The monthly energy savings these and other improvements provide not only pays for the program — including all design, installation and improvements — but also creates an immediate positive cash flow to customers. Pacific/Utah Power encourages ski resorts to work with them to determine Energy FinAnswer opportunities for their operations.
This is only a partial list of the energy efficiency programs available in the country today. Ski areas should contact local utilities to see how they can participate in similar incentive programs.
| Utility Name | State | Ski Areas Served | Efficiency Programs | Acceptable Measures | Utility Contact |
|---|---|---|---|---|---|
| Central Maine Power | ME | Sugarloaf/USA Sunday River | Power Partners Efficiency Buy-Back Interruptible Rates | Energy Efficient Lighting Energy Efficient Motors Energy Management Systems Process Energy Electrical Energy Improvements | Jon Linn Central Maine Power Edison Drive Augusta, ME 04330 (207) 623-3521 |
| Massachusetts Electric | MA | Wachusett Mountain Butternut Basin Jiminy Peak Brodie Mountain Berkshire East | Design 2000 Interruptible Rates | Energy Efficient Lighting Energy Efficient Motors Variable Speed Drives HVAC Efficiency Improvements Building Shell Refrigeration Food Service Process Energy Electrical Energy Improvements | Dave Watson Massachusetts Electric 9393 Southbridge St. Worchester, MA 01610 (508) 791-0041 |
| Green Mountain Power | VT | Sugarbush Bolton Valley Mount Snow Haystack | Power$avers Interruptible Rates | High Efficiency Lighting High Efficiency Motors Lighting and HVAC Controls HVAC Efficiency Improvements Variable Speed Drives High Efficiency Electrotechnologies | Jim Street Green Mountain Power Green Mountain Drive P.O. Box 850 So. Burlington, VT 05402 (802) 655-8400 |
| Central Hudson Gas & Electric | NY | Hunter Mountain Ski Windham | Dollar Savers Rebate DSM Bidding Program Curtailable Electric Service | High Efficiency Lighting High Efficiency Motors Lighting and HVAC Controls HVAC Efficiency Improvements Variable Speed Drives Energy Management Systems High Efficiency Electrotechnologies | John Borchard Central Hudson Gas & Electric 284 South Avenue Poughkeepsie, NY 12601 (914) 486-5413 |
| Public Service Company Of Colorado | CO | Arapahoe Basin Breckenridge Copper Mountain Eldora Mountain Keystone Loveland Monarch Ski Cooper | DSM Bidding Program Industrial Process Efficiency Interruptible Rates | Energy Management Systems High Efficiency Lighting High Efficiency Motors Lighting and HVAC Controls HVAC Efficiency Improvements Building Shell Refrigeration Food Service Process Energy Electrical Energy Improvements Air Conditioning Efficiency | Emilie Barton Public Service Company of CO 1225 17th St., Suite 1300 Denver, CO 80202 (303) 294-2202 |
| Sierra Pacific Power | NV CA | Squaw Valley Alpine Meadows Heavenly Valley | Peak Performance Program Interruptible Rates | Adjustable Speed Drives Thermal Storage Free Cooling Energy Management/Load Control Air Conditioning Upgrade/Retrofit Industrial Process Load Shifting | Jay Schmitt Sierra Pacific Power Co. 6100 Neil Rd, Box 10100 Reno, NV 89520 (702) 689-4957 |
| Pacific/Utah Power** | WA OR UT WY MT | Crystal Mountain Mt. Bachelor Park City Jackson Hole Big Sky | Energy FinAnswer | High Efficiency Motors Variable Speed Drives Energy Management Controls Air Compressor Technologies Lighting Efficiency Technologies | John Shue Pacific Power 920 S.W. 6th Ave., 440 PFFC Portland, OR 97204 (503) 464-5990 |
