Vectren Rolling out High NPV CVR Using Solution from Utilidata

Utilidata, Inc. has announced a partnership with Vectren that will help the utility company deliver energy savings to Indiana customers and reduce the need to build additional generation resources. The Southern Indiana-based utility will install Utilidata’s AdaptiVolt technology on parts of the electric system in Evansville, as part of a conservation voltage reduction pilot program that will enable the utility to capture energy savings from the electric grid without requiring any action from customers.

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Vectren’s goal is to be a leader in customer conservation and energy efficiency, and conservation voltage reduction is one of the strategies to help us achieve that goal. The long-term objective of a conservation voltage reduction program is that we will be able to deliver energy savings to our customers and reduce or avoid the need to build costly additional generation resources. As we looked for partners in this project, Utilidata stood out as the industry leader, with proven results.

— Rina Harris, Manager of Energy Efficiency and Financial Reporting, Vectren

Utilidata’s AdaptiVolt solution leverages real-time information from the distribution grid to optimize the delivery of electric power. It has been proven to help utility companies save 3 to 5 percent off their overall energy consumption, without any required changes to consumer behavior. The technology helps to reduce losses and save energy as electricity travels from generating plants, through the transmission network, into substations, and ultimately to homes and businesses.

In a related section of Vectren’s Integrated Resource Plan (IRP), Harris describes the utilization of CVR as fulfilling both an EE and a DSM function. The IRP states: “For the purpose of determining cost-effectiveness of CVR, Vectren South modeled the full implementation cost. While Vectren South plans to install the technology on additional substations, the Company is only requesting authority to complete installation on one substation at this time. The Total Resources Cost (TRC) associated with installation of CVR technology on one substation is 1.26, which means the program is cost effective. Vectren South modeled the full implementation cost of CVR and utilized a conservative estimate of two and one half percent (2.5%) voltage reduction level (pg. 57).

The IRP model showed a Net Present Value of $565,467 for the project, utilizing a standard Total Resources Cost (TRC) test. The associated costs and energy and demand savings were summarized in the IRP as shown below:

Vectren South 2016 - 2017 Electric DSM CVR Plan Summary

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“Real-time data is the key to helping utilities make actionable decisions about energy conservation, reliability, and security,” said Josh Brumberger, Utilidata’s Chief Commercial Officer. “Working with Vectren, we expect to help save 2,587,255 kWh annually – the equivalent of powering 362 homes every year. That’s real savings that are passed on to Indiana customers. The technology also has added benefits that will help Vectren monitor reliability and power quality, and resolve both existing and potential problems on the system.”

Utilidata has partnered with major utilities across the country to deliver energy savings, including working with AEP subsidiary Indiana Michigan Power to deliver savings to Indiana residents.

The related Vectren IRP Technical Appendix is available at this link, and the full press release is available at this link.