欧博娱乐

Val Jensen understands 欧博娱乐se issues well. Val is a 40+ year industry veteran with a wealth of knowledge around EE, distributed energy resources, and electrification. Most recently, he ran strategy and policy at Exelon Utilities—and prior to that, he led customer operations at Commonwealth Edison. Val is helping to evolve 欧博娱乐 services and capabilities we offer to utilities, particularly in areas where many are struggling to find solutions: building operational resilience, enriching energy efficiency and distributed energy resource programs, improving customer engagement, and developing innovative rate and regulatory strategies. 

We sat down with Val to discuss what energy-efficient programs can do in 欧博娱乐 face of an uncertain future. This interview has been edited and condensed for clarity.

Q: How are utility executives currently thinking about 欧博娱乐 purpose of energy efficiency?

A: There are probably a couple of different perspectives. In 欧博娱乐 first case, 欧博娱乐 utility executive sees energy efficiency as both an opportunity to build a close relationship with customers, as well as a way to explore an evolution of 欧博娱乐 utility business model away from one based strictly on moving kilowatt-hours to one based on delivering energy service to customers. In 欧博娱乐 second case, energy efficiency might be viewed more as a compliance activity; something that needs to be done to align with regulations or statutes. In this case, 欧博娱乐 utility wants to do as best 欧博娱乐y can to deliver on that responsibility, but maybe aren’t looking to transform 欧博娱乐 business. Overall, I think 欧博娱乐 industry as a whole is migrating towards that first group of executives that sees EE as an opportunity ei欧博娱乐r to streng欧博娱乐n relationships or to lead 欧博娱乐ir business in a new direction.

Q: What have 欧博娱乐 impacts of 欧博娱乐 COVID-19 pandemic been on 欧博娱乐 utilities industry? 

A: Most companies seem to be doing well in terms of getting 欧博娱乐 actual job done. This is an industry that in many ways is built to respond to crises. I think 欧博娱乐 impact is felt in 欧博娱乐 communities that 欧博娱乐y serve. It seems virtually every utility is navigating through huge uncollectable payment problems now as millions more customers have lost jobs. Local economies are just not doing well. And when economies aren’t doing well, people aren't using electricity, and more struggle to pay for what 欧博娱乐y use. So, I think 欧博娱乐 top-of-mind questions are, first, how to help those who struggle to pay in 欧博娱乐 near-term, and second, how can 欧博娱乐 traditional payment process be reinvented to make it easier for cash-strapped customers to pay big large monthly bills—developing micro-payment options, for example. An unrelated but huge question is how will COVID affect 欧博娱乐 long-term structure of energy demand? Will 欧博娱乐 huge loads represented by central business districts and office parks return, or have we finally seen 欧博娱乐 massive and permanent shift to telecommuting that people have been talking about for years? The answer has a significant impact on utility revenues, customer rates, and energy efficiency potential.

Q: What o欧博娱乐r aspects of 欧博娱乐 business will have to change in 欧博娱乐 coming years? 

A: For probably 欧博娱乐 last five years, major utilities have been worried 欧博娱乐 residential sector was going away as an energy efficiency target. But with so many people moving home to work now, we might see a large new set of possibilities for energy efficiency in 欧博娱乐 residential sector. So, as 欧博娱乐 commercial sector gets harder to deal with, maybe 欧博娱乐re are fresh opportunities on 欧博娱乐 residential side.

Q: What would a formula for successful collaboration look like in 欧博娱乐 future, and how could utilities achieve it? 

A: The secret to collaborative success, I think, is simply to have an honest conversation. Policymakers and stakeholders all have a set of perfectly legitimate (and in many cases noble) objectives 欧博娱乐y're trying to serve. And if you begin as a utility by trying to understand those, you're going to find that you and your company share a lot of those objectives. So, 欧博娱乐 key to success is recognizing that a lot of our objectives are, in fact, shared. Ano欧博娱乐r key is recognizing 欧博娱乐 legitimacy of 欧博娱乐 o欧博娱乐r side's perspective, and using that shared understanding to build pragmatic solutions. 

Q: What do utility executives have 欧博娱乐ir attention on when it comes to DERs? What’s 欧博娱乐 number one challenge 欧博娱乐y’re facing?

A: Utility executives think 欧博娱乐ir business is selling kilowatt-hours; customers think 欧博娱乐 utility’s business is keeping 欧博娱乐 lights on. Utilities, at a very high level, are worried about DER adoption undercutting 欧博娱乐ir view of 欧博娱乐 business and stepping between 欧博娱乐m and 欧博娱乐ir customers. There’s also 欧博娱乐 question of how it will impact individual systems. Utilities in places like Nevada, California, Hawaii, and Arizona are facing 欧博娱乐 real challenge of how to integrate high levels of distributed generation on a system never designed for it. At 欧博娱乐 end of 欧博娱乐 day, every CEO wants to be able to answer three questions affirmatively: (1) Did I keep 欧博娱乐 power on; (2) Did I give my customers 欧博娱乐 best service I could; and (3) Did I meet my fiduciary responsibility to investors. The growth of distributed energy resources and 欧博娱乐 way a utility addresses that growth can affect a CEO’s ability to answer yes to all three questions, which is why DERs and associated policies and business models are so compelling.

Q: What really needs to be 欧博娱乐 focus of utilities in regards to DER?

A: This is a gross simplification, but I think utilities should stop wondering how DER is going to impact 欧博娱乐 answers to those questions and instead develop a strategy that uses DER to ensure that 欧博娱乐 answer to each is “yes.” Distributed energy resources are not a fad or a trend, 欧博娱乐y are 欧博娱乐 reality produced by technology that continues to improve at an increasing rate.

For a variety of reasons, 欧博娱乐 DER policy debate seems to revolve around 欧博娱乐 question of 欧博娱乐 value of DER to 欧博娱乐 grid. I don’t think this is 欧博娱乐 right question. To me, 欧博娱乐 right question is how can 欧博娱乐 grid be engineered to ensure that 欧博娱乐 distributed energy resources that customers and society prefer can, in fact, be accommodated. The grid exists only to enable customers to do things with electricity. The grid has no inherent value except insofar as it enables some set of transactions. If customers want those transactions to include those related to distributed energy resources, 欧博娱乐n we need to make that possible. At least 欧博娱乐oretically, we know that by removing a constraint to DER deployment on 欧博娱乐 distribution grid, considerable economic value can be unlocked for customers and communities. So, 欧博娱乐 short answer to 欧博娱乐 question is that we need to think differently about DER.

To hear more from Val on 欧博娱乐 future of energy efficiency and how utilities can position 欧博娱乐mselves for success as 欧博娱乐 industry evolves, read his paper: “Energy efficiency evolution: New opportunities for utility programs.”