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HomeMy WebLinkAboutL.I. Without Shoreham Power Plant - 1983 Technical Report A83-14/A LONG ISLAND WITHOUT THE SHOREHAM POWER PLANT: ELECTRICITY COST AND SYSTEM PLANNING CONSEQUENCES TECHNICAL REPORT A LONG RANGE FORECAST OF ELECTRICITY REQUIREMENTS IN THE LILCO SERVICE AREA July, 1983 ENERGY SYSTEMS RESEARCH GROUP, 120 Milk Street Boston, MA 02109 (617) 426-5844 INC. 4 TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES INTRODUCTION 1.1 Background 1.2 Forecasts of'E~e~g~ ~e~u~r~m~n~s'a~d'P~a~ 6e~a~d~ 1.3 End-Use Approach . - . . 1.4 Comparison of Base Case and LILCO Forecasts . 2. OVERVIEW OF FORECASTING APPROACH 3. RESIDENTIAL SECTOR . . 3.1 Number of Units 3.2 Saturation Curves 3.3 End-Use Submodels 3.3.1 3.3.2 3.3.3 3.3.4 3.3.5 3.3.6 3.3.7 3.3.8 3.3.9 3.3.10 3.3.11 Refrigerators and Freezers Electric Ranges Lighting . Television Clothes Dryers Clothes Washer and DiShWaSher Electric Water Heaters Air Conditioners Electric Space He~t~n~ Heating Auxiliaries Miscellaneous Applian~e~ COMMERCIAL SECTOR 4.1 Model Structure . 4.2 Commercial Floorspace 4.2.1 1975 Floorspace . 4.2.2 Floorspace Growth ndices"'' 4.3 Electric Energy Intensities . 4.3.1 1975 Intensities 4.3.2 Future Intensities . 4.4 Energy Forecast . 5. INDUSTRIAL SECTOR 5.1 Model Structure . 5.2 Base Year ExperienCe'' 5.3 Employment Growth . 5.5 Fraction Self-Generated 5.6 Energy Forecast 6. OTHER ENERGY REQUIREMENTS 7. PEAK POWER - i - Page iv 1 1 1 2 5 13 18 19 19 2O 20 24 26 28 30 31 34 36 38 42 44 45 45 45 5O 50 52 52 52 56 57 57 6O 60 60 61 61 63 64 TABLE OF CONTENTS (Continued) Page MODEL INPUTS AND FORECAST ASSUMPTIONS . 8.1 Energy Sales By Sector . 8.2 Residential Sector 8.2.1 Residential Customer Forecast . 8.2.2 Appliance Saturation and Unit Usage 8.2.3 Electric Space Heat and Water-Heating ~e~e~ritioAs 8.2.4 Thermal Integrity Impacts 8.2.5 Additional Data Requirements 8.2.6 Appliance Lifetimes . 8.3 Commercial Sector Data Inputs 8.3.1 1975 Floorspace . 8.3.2 Floorspace Growth' - ' ' ' 'IndiCeS,'High Case 8.3.3 Floorspace Growth Indices, Low Case 8.3.4 Electric Intensities and Saturation 8.3.5 Future Commercial Intensities and Saturation 8.4 Industrial Data Inputs . 8.4.1 Base Year Experience · · 8.4.2 Employment Growth . . ~ . 8.4.3 Electric Energy In%enslty ..... 8.4.4 Fraction of Electricity Self-Generated 8.5 Other Energy Requirements · . 8.6 Peak Power Model . . · · 8.6.1 Peak Load Data . . 8.6.2 Load Management Impact 68 68 69 69 72 76 REFERENCES APPENDIX A: ESRG High and Low Case Forecasts of Long Island Lighting Company 76 78 82 83 83 84 85 86 87 89 89 90 91 94 94 95 95 96 97-100 - ii - E S R G Table No. 1.1 1.2 1.3 1.4 1.5 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 4.1 4.2 4.3 4.4 4.5 4.6 5.1 5.2 6.1 7.1 7.2 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 LIST OF TABLES Page FORECAST OF ENERGY AND PEAR DEMAND 3 DISAGGREGATED FORECAST BY SUBSECTOR COMPONENTS - LILCO. 4 FORECAST AVERAGE ANNUAL GROWTH RATES FOR LILCO 5 COMPARISON OF 1983 ESRG BASE CASE AND LILCO FORECASTS 9 COMPARISON OF 1981 APPLIANCE SATURATION LEVELS WITH LILCO AND ESRG PROJECTIONS . 11 RESIDENTIAL END-USE SUBMODELS SUBMODEL FOR REFRIGERATORS AND FREEZERS SUBMODEL SUBMODEL SUBMODEL SUBMODEL SUBMODEL SUBMODEL SUBMODEL SUBMODEL SUBMODEL SUBMODEL FOR ELECTRIC RANGES FOR LIGHTING FOR TELEVISIONS FOR CLOTHES DRYER FOR CLOTHES WASHER AND DISHWSHER FOR ELECTRIC WATER HEATER FOR AIR CONDITIONERS FOR ELECTRIC SPACE HEATERS FOR HEATING AUXILIARIES FOR MISCELLANEOUS APPLIANCES . 18 23-24 25 27 29 3O 32-33 35 37 39-41 43 44 COMMERCIAL MODEL END-USE, COMMERCIAL CATEGORY COMMERCIAL MODEL - FLOORSPACE . SQUARE FOOTAGE MULTIPLIERS ELECTRIC ENERGY INTENSITIES . FRACTION OF LOAD SAVED COMMERCIAL ENERGY FORECAST BUILDING TYPES AND 46 48-49 51 54 55 56 STANDARD INDUSTRIAL CLASSIFICATIONS INDUSTRIAL ENERGY FORECAST 58 62 OTHER ENERGY 63 PEAK POWER MODEL END-USES USED IN PEAR POWER MODEL 66 67 ADJUSTED LILCO SALES BY SECTOR, 1982 69 COMPARISON OF POPULATION PROJECTION SOURCES, LONG ISLAND 71 RESIDENTIAL CUSTOMER FORECAST, LONG ISLAND LIGHTING COMPANY .... . 72 LILCO APPLIANCE SATURATION ASSUMPTIONS 73 RESIDENTIAL APPLIANCE USAGE AND EFFICIENCY IMPROVEMENTS 75 LILCO ELECTRIC SPACE HEAT PENETRATION 76 THE~4AL INTEGRITY CHARACTERISTICS, LILCO AIR CONDITIONING . . 78 APPLIANCE LIFETIMES IN YEARS 83 1975 COMMERCIAL FLOORSPACE, LILCO SERVICE AREA 84 - iii Table No. 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 Figure No. 1.1 1.2 2.1 2.2 2.3 3.1 4.1 5.1 8.1 LIST OF TABLES (Continued) HIGH CASE COMMERCIAL GROWTH INDICES, LONG ISLAND LOW CASE COMMERCIAL GROWTH INDICES, LONG ISLAND COMMERCIAL ELECTRIC USE COEFFICIENTS, LILCO YEARS PAYBACK FOR 50% ACCEPTANCE . FUTURE ENERGY PRICE ASSUMPTIONS (COMMERCI~L'SEC~O~) LOW CASE . LOW CASE CONSERVATION'=vEL'PENETRATIONi'-----' LI=O LILCO INDUSTRIAL SALES MIX . LILCO EMPLOYMENT GROWTH BY STANDARD INDUSTRIA~ CLASSIFICATION . ELECTRICAL INTENS~T~ REGRESSION RESULTS, NEW YORK PRODUCTIVITY TREND RESULTS, NEW YORE 1982-1990 . 1990 PROJECTED STATE ENERGY INTENSITY INDEX, NEW YORK. PEAK MULTIPLIER FACTORS (PKFAC) - LILCO LIST OF FIGURES COMPARISON OF HISTORIC CHANGES IN 1990 PEAK FORECAST . COMPARISON OF 1983 LILCO AND ESRG PEAK FORECASTS AND GROWTH TREND IN PEAK MODEL COMPONENTS ENERGY FORECASTING MODEL SCHEMATIC FORECAST SCENARIOS . SCHEMATIC OF YEARLY ENERGY INCREMENTS BY END-USE COMMERCIAL SECTOR MODEL SCHEMATIC INDUSTRIAL SECTOR MODEL SCHEMATIC . . GROWTH OF NASSAU AND SUFFOLK COUNTIES FROM 1950 TO 1982 . - iv - £ S R G Page 84 85 86 87 88 88 89 90 92 93 94 96 Page 6 8 14 15 17 21 47 59 7O 1. INTRODUCTION 1.1 Background This report presents ESRG's long-range forecast of electric energy requirements and peak demand of the Long Island Lighting Company (LILCO) service area. The report includes a full description of the methods, assumptions, and results of the forecast. This research was sponsored by the County Executive's Office of Suffolk County, New York, as part of a series of five documents examining the economic impacts of excluding the Shoreham nuclear power plant from operation.* The forecast of electricity demands for the LILCO service territory is based on the best presently available utility, local and national research data: the demographic, economic, and energy use-related characteristics of the service territory and state. The forecast is intended as a business-as-usual scenario, with input assumptions that represent no substantial departure from currently foreseeable trends in the forces which influence electricity use characteristics in the region. A realistic "Base Case" forecast for LILCO is formed by creating High Case and Low Case forecasts reflecting the range of uncertainty in the forecast assumptions and input data. From these, the midrange or Base Case forecast is developed. The remainder of this chapter presents the forecast results. Chapters 2-7 describe the nature and details of the end-use forecast model that is used by ESRG. Chapter 8 provides the principal data inputs underlying this forecast for LILCO. 1.2 Forecasts of Energy Requirements and Peak Demands Forecasts made by other electric utility companies as well as Long Island Lighting Company have tended to decline in response to the nationally experienced slow-down in growth since 1973, changing expectations regarding the potential for energy conservation, the increasing cost of electricity, and the likelihood of slower economic and demographic growth. For the case of LILCO, the downward adjustment in long-range load growth is displayed in ]Figure 1.1 (along with ESRG's earlier forecasts). The present forecast again projects somewhat lower growth rates in energy and peak than does LILCO currently (Ref. 1)o** * Other volumes include Long Island without the Shoreham Power Plant: Electricity Cost and System Plannxn~ Consequences, Surmuary of Findings; Technical Report B: Shoreham Operations and Costs~ Technical Report C.' The Conservation Invest- ment Option, and Technical Report D: Computer Output. ** A review and critique of LILCO's methods and assumptions is offered in Section 1.4. - 1 - Base Case Forecasts for LILCO are presented in Tables 1.1 and 1.2. In these tables energy requirements in gigawatt-hours (millions of kwh) and su~mler and winter peak demands in megawatts (thousands of kw) are presented for the total system (Table 1.1) and also on a disaggregated basis (Table 1.2) by customer class -- residential, commercial,, industrial and other (including losses) -- for the base year 1982, as well as for each year through the year 2000. As described in Section 2 on the ESRG forecasting approach, the Base Case forecast is formed from High and Low Case scenarios embodying alternative assumption sets. Results of the High and Low Case forecasts are set forth in Appendix A. Table 1.3 translates the forecast data in Table 1.1 (and Appendix A) into average annual growth rates for the ten year period 1982-1992 and the eighteen year period of 1982 to 2000. The Base Case for the latter period yields a 1.03 percent growth rate in energy and .82 percent growth in su~muner peak. 1.3 The End-Use Approach Electricity consumption at the system level is a composite of the myriad end-use demands serviced by the given utility. The end-use configurations vary within and between the major consuming sectors (residential, comercial, institutional, transportation, manufacturing, etc.). The model employed here is based on the conviction that system requirements can best be understood and the impact of the various factors driving growth best be computed if the model itself is a composite of submodels for the major subsectors and, to the extent possible, end-uses. This approach is sometimes called the engineering end-use approach to the extent that it identifies the actual physical energy-using stock of equipment. It models its energy requirements characteristics as consistently as possible given the data constraints. In this way, the effects of definite changes in equipment efficiencies, fuel mix, manufacturing processes, etc., are tracked at the point where they actually occur. Further, the disaggregated approach enables the user to flexibly and eclectically draw from the best subsidiary data sources available, be they optimization studies, market penetration analyses, or national and state economic and demographic projections. For example, the effects of a specific policy option, such as improved appliance efficiencies, can be accounted for directly where they impact through appliance submodels incorporating retirement schedules, vintages, and technology changes. Econometrically measured influences on consumer behavior can also be incorporated in the disaggregated framework. - 2 ~. S R G TABLE 1.1 FORECAST OF ENERGY AND PEAK D~4AND LILCO SA~E ENEROY IH OWH PEAK POWER LOAD IN MW LILC083 RESIDENT. COMHER. INDUSTR. OTHER TOTAL SUHHER WINTER 1982 5574. 5340. 1205. 1637. 13757° 3070. 2471o 1983 5640° 5360. 1240° 1650° 13700° 3100o 2500. 1984 5700, 5380° 1280. 1670, 14040° 3120. 1985 5760, 5410, 1320o 1680. 14170° 3140, 2560. 1986 5800, 5480. 1350, 1700. 14330. 3160, 2600, 1987 5840° 5550. 1380, 1720, 14500. 3190. 2640. 1988 5880, 5620. 1420° 1740, 14660° 3220, 2680, 1989 5920° 5690. 1450. 1760. 14820, 3240. 2710o 1990 5960. 5760. 1480. 1770. 14980. 3270. 2750. 1991 5990. 5830. 1510. 1790. 25130. 3300, 2790. 2992 6020. 5910. 1540, 1810, 15280, 3320, 2820, 1993 6040. . 5980, 1580, 1830, 15430, 3350. 2860. 1994 6060. 6060, 1610, 1850, 15570, 3380, 2890. 1995 6080. 6130o 1640° 1870. 15720, 3410, 2?30. 1996 6100. 6210, 1670. 1890. 15870. 3430. 2960, 1997 6130. 6280. 1700. 1910. 16030. 3460. 3000. 2998 6160, 6360, 1740. 1930, 16190, 3490. 3030. 1999 6200, 6440. 1770. 1960, 16360, 3520. 3070. 2000 6230, 6520, 1800, 1980, 16530* 3560, 3110, - 3 - E S R G TABLE 1.2 DISAGGREGATED FORECAST BY SUBSECTOR CO.M~P_0~E~TS LILCO LILC083 BASE CASE i REFRIGERATORS 2 FREEZERS RANGES 4 LIGHFING 5 TELEVISIONS 6 CLOTHES ORYERS 7 CLOTHES WASHERS 8 DISH WASHERS 9 WATER HEATERS 10 RSOH A/C 11 CENTRAL. A/C 12 SPACE HEAl'ERS HEATINGAUXILIARY MISCELLANEOUS RESIDENTIAL SECIOR - E 1982 1339 268 82'2 36<5 424 62 290 342 29 ] 254 S59 1985 1988 1991 1348, 1332, 1295, 307, ~09, 276, 283, 289, 841. 858. 369. 375, S85, 441, 457° 64. 65. 67, 1~9, 1~¥. 13¥, SOS. 307, 342, 387, SSS. ~()~. ~5/, 396, 354, 350, 545· 351, 384, 418· NERJfY IN GWH 1994 1997 1236. 1175 300. 29l 295. 882 889 396 409 48~ 508 68 70 139 140. 315 321, $81 436 472, 452 487. LILC083 1: OFFICES 1: HEATING ' COOL.£NG 3: L. IGH] ING 4: AUX ~ POWER 21 RETAIL 1; HEATING ~,°' COOLING 3: LIGHTING 4: AUX ~ POWER 3: HOSPITALS 1: HEATING 2: CGOI.[NG 3: LIGHTING 4~ AUX ~ POWER 4~ SCHOOLS 1: HEATING 2: COOLING 3: LIGHTING 4: Al.IX & POWER 5 OTHER I HEATING 2 COOL. ING 3 LIGHTING 4 AUX & POWER 2000 1151. 280. 306. 894, 423, 518. 142~ 328. 329~ 427· 507. 524. BASE CASE - COMMERCIAL SECTOR FNER(½Y 1N (~WH 1982 1985 1988 1991 1994 1997 2000 49, 61, 73, 8.5, 98. 11~ · 124. 466, 461, 476, 491, 507. 528. 538, 387, 399. 421, 444. 468. 498~ 23, 28, ~S, ~9, 44, 50. 56 330, 3S7. 348, 360, 371. SDS. ,~95. 1237, ]260, 1294, 1328, 1362, 1396, 14S1. 5, 6, 7, 8, 9, 10, 58, 51 · 51, 51, 51, 51, 51 146, J45, 146, 147, 148, 148, 149, 79, 79. 82, 85, 88, 90. 93. 16, 17, 21 , 24, 28, 31 . 76, 66, 67. 68, 69, 70. ~7, 277. 278, 278, 279, 279, 280. 187. 164, 169, 178, ~.77, 181, 185. 22, 27, 32, 38, 4~, 49, 56. 249, 255, 262, 268, 27b, 282. 289, 553, 581, 604, 627, 649. 672, 695, i~64, ~89, 415, 442, 471, 502, 534. LI[.C083 BASE CASE INBLISTRIAI. SEC:10R - E 1982 1985 1988 1991 58, 65, 7], 77, 21, 22, 21. 21, 16, 18, 20. 22, 7. 9, 11. iS, 15, 16o i6, 17, 4/. 53, 57. 62. 90, 1i6, 142. ~69, 58. 59. 59· 59 5, 6. 6, 7 40, 48, 45, 48 73, 76, 78, 80 255, 280, ~OO, 1521 176. 184, 189. 19t 56, 66, 75, 84 3. 4. 4. 4 11. J2. 12. IS 118, 129. 137, L47 NERGY IN GWH 1994 1997 82 88, 21 20. 24 26. 15 17, 17 ]8, 66 70, ]96 224. 58 58. 8 50 52. 82, 84. 15~, 160. 342. 565. 192. 192. 94. 105. 13, i4, 156, 166. S4, 20 F0OD 22 TEXTILES 23 APPAREL 24 LUMBER 25: FURNITURE 26: PAPER PRODUCTS 27: PRINTING ~ F'UBL, 28: CHEMICALS PETROLEUM ~ COAk 33: PRIMARY METALS 34: FABRICAT. H~TALS MACHINERY ELECTRIC EQUIP. TRANSPORFAI'ION RUBBER ~ PLASTIC LEAFHER 32t STONE,CLAY,GLASS INSTROMENTS OTHER - 4 - G E 2000 19. 28, 19, 18, 74, 252. 57. 10. 54, 86, 167, 388, 190, 6. 177. ~4. TABLE 1.3 FORECAST AVERAGE ANNUAL GROWTH RATES FOR LILCO (%/YEAR) ENERGY PEAK YEARS HIGH BASE LOW HIGH BASE LOW 1982-1992 1.91 1.06 .13 1.69 .82 -.16 1982-2000 1.81 1.03 .12 1.61 .83 -.07 1.4 Comparison of Base Case and LILCO Forecasts Earlier versions of the ESRG disaggregated/end-use forecasting model have been employed in producing Base Case forecasts of electricity demand and energy in the LILCO service area since 1977. ESRG enjoys an excellent track record for its stable and high confidence forecasts both on Long Island and in scores of the other applications. These forecasts anticipated the necessity for LILCO to radically revise its own long-range forecasts during the late 1970s and early 1980s. The historic pattern is illustrated in Figure 1.1 which shows the precipitous drop in the LILCO forecast of the 1990 summer peak after 1974. Earlier ESRG forecasts are also shown. The dramatic decrease in LILCO's load growth forecasts (and corresponding adjustments in plans for new power plant construction) can be traced to several factors. First, the slowdown in population and in economic growth prospects for Long Island from the post-World War II boom levels was gradually incorporated into the forecasts. The levelling off pattern in population growth during the 1950-1982 period is shown in Figure 8.1. Second, the changes in energy consumption patterns and conservation initiatives ushered in by the 1973 oil embargo and energy price jolts, as well as the changed regulatory and policy context, were eventually recognized as alterations to the long-term energy planning environment, rather than as temporary aberrations. Third, serious methodological and conceptual pitfalls in LILCO's forecasting apparatus were identified. These were largely corrected. - 5 - Figure 1.1 COMPARISON OF HISTORIC CHANGES IN 1990 PEAK FORECAST 0 0 ,< 0 8000 7000 6000 5000 4000 3000 2000 1000 0 ESRG YEAR OF FORECAST - 6 - E S R G Despite the corrective alterations in their earlier forecast procedures, to this day the Company retains a tendency to forecast with unwarranted optimism. Figure 1.2 shows the Company summer peak forecast to the end of the century.* The average annual growth rate is 1.6 percent per year. The actually experienced summer peak over the 1973-1982 period is also shown for contrast (the growth rate was 0.5 percent per year), along with a time trend based on that historic experience. Finally, the forecast developed for the current invesigation (0.8 percent per year) is shown on Figure 1.2. The comparisons are shown in more detail in Table 1.4. Analysis of the assumptions in LILCO's latest forecast reveals that the higher LILCO forecast is traceable to certain judgemental rapid-growth inputs and some continuing problems with self-consistency in their methods. These are identified below. * The Company current long-range forecast is contained in the 1983 Report of Member Systems of the New York Power Pool (Vol. 1) submitted to the New York State Energy Office (Ref. 1). - 7 - E $ R G Figure 1.2 COMPARISON OF 1983 LILCO AND ESRG PEAK FORECASTS AND GROWTH TREND IN PEAK 4000 3500 3000 2500 LILCO ESRG TREND YEAR NORMALIZED SU~ER PEAK EXPERIENCED (MW) - 8 - TABLE 1.4 COMPARISON OF 1983 ESRG BASE CASE AND LILCO FORECASTS SALES (GWH) TOTAL PEAK ENERGY DEMAND RES. COMM. IND. (GWH) (MW) ESRG 1982 5,574 5,340 1,205 13,757 3,070* 2000 6,230 6,520 1,800 16,530 3,560 % Growth Rate 0.6 1.1 2.3 1.0 0.8 LILCO 1982 5,556 5,216 1,303 13,713 3,070* 1999 7,427 7,013 2,063 18,748 4,015 % Growth Rate 1.7 1.8 2.7 1.9 1.6 *Normalized from the experienced value of 3,045 MW for weather and time-of-peak effects. Residential Customers: The Base Case forecast adopts the Company projections of residential customers (p. 128).* However, the LILCO forecast does not appear to analyze energy requirements in terms of the different levels of usage for single family and multifamily housing. But the evidence is that smaller household units, (primarily multifamily units) are gaining a larger share of the Long Island region's new housing market. These homes are characterized by lower average usage levels for such major appliances as electric space heating, central air conditioning, water heating, and refrigeration. LILCO acknowledges that smaller households are probable (p. 122) but fails to analyze the effect of such decreases in household size on usage levels. *Page references are to Ref. 1 throughout this subsection. - 9 - E $ R G Appliance Saturations: Company projections of appliance satura- tions (total units as a percentage of total households) in the residential sector are developed by judgement. The 1999 projections (p. 134) are compared to ESRG estimates in Table 1.5.* It will be noted that the most significant deviations are in the end-uses of ranges, TVs, dishwashers, room air conditioners, electric space heaters and electric water heaters. For perspective, simple time trending (based on regression analysis on post-1972 saturation data in the LILCO service area) to the year 2000 gives saturation results that are close to or below the Base Case values: 42.8 for ranges, 259.0 for TVs, 40.7 for dishwashers, 105.3 for room A/C, 6.8 for ESH, and 13.0 for EWH. LILCO's growth assumptions are particularly questionable in the energy intensive end-uses of electric space heating, air conditioning, and electric water heating. The number of electric heating customers is assumed to grow much faster than historic trends would indicate. In LILCO's view, by 1990 and thereafter, virtually all new customers will have electrically space heated homes. Further, by 1999, new electric space heat customers will exceed the number of new customers due to switching from oil or gas heated homes to electricity. Similarly, electric water heat is projected to grow from a 1981 saturation of 8.3% to a 1999 level of over 29%. The implication of such a strong saturation shift, a penetration rate of 183 percent, is that all new customers will instal], electric water heating during the forecast period, while others will switch thereto. As reflected in ESRG's projections, electric heat pump technologies, with their year-round application, should contribute to a strong electric space heat market.* However, the drastic shift from historic saturations assumed by LILCO are particularly questionable during a period when electricity prices will increase substantially while fossil fuel price increases have moderated. The same questionability applies to electric water heating growth assumptions. The assumed growth in central air conditioning (including heat pump) saturations also results in over 100 percent penetration levels, this in addition to assumed growth in room air- conditioners. Growth in the heat pump, solar, and storage technologies, as well as in traditional appliances growth, is a key element in the LILCO forecast. But experience to date does not warrant such optimistic assumptions of accelerating growth. ESRG uses more cautious Base Case projections.* *For the basis of ESRG's assumptions and projections, see Section 8. - 10 - E S R G TABLE 1.5 COMPARISON OF 1981 APPLIANCE SATURATION LEVELS WITH LILCO AND ESRG PROJECTIONS SATURATIONS (Percent) LILCO ESRG 1981 1999 2000 APPLIANCE ACTUAL PROJECTED PROJECTED Refrigerators 113.0 121.5 117.1 Freezers 30.5 35.2 33.0 Ranges 47.1 57.2 49.5 Televisions 220.3 336.9 245.6 Clothes Washers 87.8 90.2 87.4 Clothes Dryers 55.5 64.4 58.3 Dishwashers 52.2 61.9 52.8 Room Air Conditioners 112.2 128.0 120.0 Central Air Conditioners 13.0 21.1 21.8 Electric Space Heaters 3.4 11.3 7.9 Electric Water Heaters 8.3 29.2 13.0 Space Heating Customer Usage: Growth in the residential sector's energy requirements may be the result of an increase in customers (households), numbers of appliances per household, or usage levels per appliance. LILCO's forecast methodology includes a short-term (five year) econometric forecast wed to a long-term end-use forecast ,[cf. pp. 121, 122). In both methodologies, customers and use per customer are projected separately, with the forecasts of annual sectoral energy resulting from the product of the two projections. An unexplained discontinuity in use per customer occurs in the transition from the short-term forecast to the long-term forecast of "residential space and water" customers, resulting in an illogical leap in projected residential sales. In comparing the short-term and long-term sales forecasts (pp.131 and 143, respectively), a number of anomalies arise. The actual annual use per space heating customer in 1982 was 14,431 KWH (Ref. 17). The short range forecast produces a 1982 level of 15,271 KWH, growing to 16,222 KWH in 1983, then decreasing to 15,635 KWH by 1986. These fluctuations are not accounted for. In 1987, the first year of the long-range forecast, this usage level jumps over 2,500 KWH to 18,198 KWH/year. Taken in conjunction with the assumption of unprecedented increases in the penetration of space heating customers (discussed in the previous section), this usage results in a forecast growing in moderate increments from 1983 to 1986, then jumping sharply in 1987, and growing at an accelerated pace thereafter. The mathematical methods employed are producing unreasonable results. - 11 - E S R G Thermal Integrity Improvements: The LILCO forecast does not directly adjust space conditioning usages to account for improved building practices and insulation of building stock. There is evidence that new homes are being built to considerably higher levels of thermal integrity than that found in the existing housing stock. These homes require lesser amounts of energy for heating and cooling. Additionally, the use of energy management systems in the commercial and industrial sectors may result in even further reductions in building energy use. Such improue- ments are incorporated in the ESRG forecast.* Commercial and Industrial Sector Energy Forecasts: The divergence between the Base Case and LILCO forecasts is less than in the residential sector. However, there are a number of areas for concern. The Company uses a statistical approach which attempts to explain consumption by commercial subsectors as a function of employment growth and, in some cases, electricity price growth rates. However, in important sectors that account for 70 percent of LILCO's commercial and industrial growth (finance, insurance, real estate, manufacturing, and government), the price of electricity has not been utilized in projecting future changes in electricity demand. This is implausible, and builds in the rapid growth dynamic embodied in the data base time series (which begins in 1966), unmoderated for the forecast electric price Sharp increases in electricity prices are likely to have an effect on demand levels of existing customers in terms of heating fuel selection, appliance usage behaviors and commitment to conservation practices.. These prices may also affect decisions concerning location of new businesses in the area. As a related issue, the important finance, insurance, and real estate subsectors do not include a conservation variable, nor do the transporation, communications, or sanitary services subsectors. In the post-1973 era, an increase in conservation practices is a documented aspect of commercial energy use. The rapid growth in electricity prices expected on Long Island will likely result in an accelerated conservation effort. The ESRG end-use approach, used in the Base Case and described in subsequent sections, tracks the effects of conservation, building characteristics, and equipment trends in greater detail than the aggregate time trending approach used by LILCO.* *For the basis of ESRG's assumptions and projections, see Section 8. - 12 - E S R G 2. OVERVIEW OF FORECASTING APPROACH This section is restricted to a broad description of the forecast model characteristics. The conceptual basis and mathe- matical structures of the model are described in subsequent sections. The model forecasts are based on the aggregation of separate forecasts for the major end-use components comprising system demand. This allows for explicit incorporation of the impacts of differential end-use-growth, energy policy, new technology and specific conser- vation practices. For example, appliance efficiency improvements are integrated indirectly into the appliance submodel rather than as approximate adjustments on gross energy requirements. The energy consumption for a given component is given by the expression: Energy Consumption in End-Use Category = End-Use Measure x Energy Intensity In other words, the energy consumption by end-use is the product of the quantity of the end-use ("End-Use Measure") and the annual average energy consumed per unit of the end-use ("Energy Intensity"). The measure of an end-use activity will be in units appropriate to the sector being modelled. These are summarized in Figure 2.1. The forecasting technique consists of three fundamental steps: (1) analysis of base year energy-consuming stock in terms of average measurE! levels and intensities, (2) specification of growth in the end-use measures and (3) simulation of the factors affecting the intensity of unit energy use. The actual mathematical analogs chosen for energy consumption in the end-use models must be wedded to the specific character of the end-use category. Further, they must be constrained by limitations in available data. The computational procedures selected are discussed in detail in Sections 3 through 7. The energy forecast model7 schematized in Figure 2.2, is the heart of the system. It, in turn, is comprised of a ser~es of submodels which produce forecasts of energy consumption disaggre- gated by end-use. These are summed to give annual energy and are input to the demand forecast model. The results for the utility are combined to output system energies and peaks. (Additionally, the energy forecasts broken down by end-use category may be reported allowing for a clearer understanding of the structure of total consumption and sensitivity to specific assumptions). - 13 - E $ R G FIGURE 2.1 MODEL COMPONENTS SECTOR END-USE ACTIVITY END-USE MEASURE ENERGY INTENSITY Residential 14 Appliance Categories number of units average annual consumption 2 housing types per unit 5 building types floorspace square average annual consumption Commercial 4 end-use categories footage per square foot 2 vintages (new & existing) Industrial 19 manufacturing subsectors employment average annual consumption per e~ployee Chauges in Efficiency, Equipment, qUnit Usage~ Residential End-Use Submodel FIGURE 2.2 ENERGY FORECASTING MODEL SCHEHATIC Indices Building Type and Vintage Consumption Per Ft~ Employment Growth Indices Level by Standard Industrial Intensity: Consumption Per Employee by SIC Commercial End-Use Submodel { ~Energy by TO PEAK LOAD MODEL IMlx of put{ chased and : self- generated energy Industrial End-Use Submodel Energy from Residential, Commercial, and Industrial Sectors Other Energy Submodel From one perspective, the model is a functional relationship between a set of independent variables (data file) and selected dependent variables (output forecasts). The computer program designed for executing this mapping accepts a user-selected data file and produces user-selected outputs. The inputs are of two types: (1) data which characterizes the actual base year experi- ence of a given utility and (2) assumptions on future values of the independent variables which chart the changes in base year values. The first type of data is developed and updated from independent sources (utility surveys, industry load studies, census information, etc.). The second type of input defines a set of growth assumptions or "scenarios." Although one has guide- lines fo~ estimating the growth variables e~tering the submodels (historic patterns, independent national and state projections, policy impacts, market penetration analysis, econometric equations, etc.), uncertainty cannot be avoided. This uncertainty is dealt with in the program in two ways. First, a range of growth variable values are automatically required in producing a forecast. The model is designed to accept from the outset the uncertainty in the driving variables identified by the user. The pro§'ram operates from "high" and "low" data files associated with data choices for HIGH and LOW cases, respectively. Although one cannot prophesize a given input item with certainty, a realistic range of possible future values can be given with some confidence. The high and low scenarios are designed to bracket the set of possible futures. The Base Case is defined in the model as the mid-range forecast illustrated in .Figure 2.3. The uncertainty in the input data set is reflected in the overall forecast uncertainty. The range of uncertainty, is, of course, an increasing function of time. The second method for treating uncertainty is through sensi- tivity analysis. TSe program allows for temporary changes of an input item (or set of items), permitting tests of the response in forecast output to changes in data file input. The stability of output to specific input variations can be computed and utilized in assessing the validity of a given forecast. - 16 - E S R G Figure 2.3 Forecast Scenarios Variable Forecast I time Base Year range of uncertainty 3. RESIDENTIAL SECTOR This section describes the electrical energy demand forecast model for the residential class of customers. The component end- uses of residential energy consumption are treated in fourteen sep- arate submodels. This level of detail allows the incorporation of the central factors affecting overall demand which can be lost in methodologies which forecast aggregate demand alone. The fourteen residential end-uses for which submodels have been developed are listed in Table 3.1. TABLE 3.1 RESIDENTIAL END-USE SUBMODELS End-Use Input 1 2 3 4 5 6 7 8 9 10 11 12 13 14 These submodels will be described later. level, annual consumption for end-use (i) by the expression: Refrigerator Freezer Electric Range Lighting Television Clothes Dryer Clothes Washer Dishwasher Water Heater Air Conditioning - Room Air Conditioning - Central Space Heat Heating Auxiliaries Miscellaneous At the most elementary in year (t) is given Et,i=Nt,i×Ct,£ where (3.1) Et,i = Total annual energy consumption of end-use (i) in year Nt,i = Total number of corresponding units Ct,i = Average annual energy consumption per unit Then the total energy consumption in the resi~.ential sector for year (t) becomes ~ Et,i - 18 E $ R G A glance at Equation 3.1 will show that the residential fore- cast for each end-use can be viewed as a combined forecast of the total nuz~ber of units, on the one hand, and the average consumption per unit, on the other hand. 3.1 Number of Units The number of units for a given end-use is computed as the product of the number of households and the end-use saturation, defined here as the average n~mber of units per household. The number of household u~its is further divided into single family u-nits (SF) and multifamily u~its (M_F). This breakdown is desirable since appliance ownership and usage patterns may vary significantly by housing type. A shift in the mix of SF and MF in the forecast period thus affects ultimate demand. 5.2 Saturation Curves Saturations enter the end-use submodels via the logistic growth curve. This curve has the general form: Ci~k SATt,i,k ~ l+Bi,k×e-(Ai,k.T) · for the saturation (SAT) (k), of a given end-use (i), and housing type in year (t). The parameters are constrained by: B>O, A>O, O<C<i. (The indices are suppressed for notational convenience.) Parameter C is called the ceiling, representing the asymptotic limit of ~he dependent variable; the greater the value of A, the more rapid is the approach to the ceiling. From the derivative d SATt A dt ~ ~ 'SATt '(C-SATt) we see that the growth rate is proportional to both the level already achieved and the increment remaining to the ceiling. Ideally, the parameters would be estimated by fits to historic saturation data. The data, however, is not sufficient to warrant such a complete determihation. Instead, we have used base year saturations (SBY) to determine one parameter, chosen values for the ceiling or terminal saturation (STERM) according to scenario assump- tions, and used historic data to fit the remaining variable A. Rewriting Equation 3.2 in terms of STERM and SBY and fixing the base year t=l as we do throughout the model, we arrive at the form of the saturation curve as it enters the submodels: (3.2) (3.3) (3.4) - 19 - E S R G SATt= STERM -A. (t-l) 1+ (STERM-SBY.] × e [ SBY ] (3~5) 3.3 End-use Submodels The second term in Equation 3.1, the average annual energy consumption for each end-use, incorporates a great deal of complexity. Once the base year energies are established, the time dependence of average energy consumption must be computed. The major factors which can impact average energy use are: · appliance efficiency increases · thermal integrity improvements of building shells · new technology market penetration · population per household decreases · energy conservation practices induced by electricity price increases The end-use submodels are designed to allow sensitivity to assumptions on these trends. Consequently, overall forecasts based on a range of reasonable input assumptions allow for the development of a band of possible error within which lies the "probable" forecast. The submodels will be discussed in the sequence given in Table 3.1. In each case, we give a brief qualitative descrip- tion in the text and the system of equations in an accompanying table. Although the end-uses have particular characteristics which require unique model elements, the overall strategy dis- played schematically in Figure 3.1 is used throughout. The yearly increment in electrical energy consumption is calculated by (1) subtracting the energy consumption of retired units, (if any), (2) adding the energy consumption of replacements, and (3) adding the energy consumption of additonal new units due to customer and saturation growth. With this iteration technique, we can, once the base year breakdown is established, compute energy consumption for each year of the forecast under a given set of assumptions on changes in saturation, customer, technology mixes, efficiencies and use patterns. 3.3.1 Refrigerators and Freezers The factors affecting demand for these two appliances are quite similar so that the same algorithm for modeling growth in energy consumption are employed. Variable definitions and dynamic equations are summarized in Table 3.2. In the case of decreasing saturations, the form of the curve is given by: SAT = STERM + (SBY-STERM) × e-A(t-1) 20 - E S R G FIGURE 3.1 Schematic of Yearly Energy Increments by End-use Changes in: Customers, Saturation, Efficiencies, Equipment, Use Pattern Consumption INew Additional Units [Year t + 1 Consumption ~ Year t . Consumption Retired Units Year t · Consumption L Year t + 1 Consumption Replacement Units Year t + 1 Changes in: Efficiencies, Equipment, Use Pattern - 21 - E $ R G The total number of appliances by housing type is obtained by multiplication of saturation and households (Eq. 3.6). The iteration procedure is initialized by computing base year consump- tion as the product of the number of appliances on-line in the base year and their average unit consumption (Eq. 3.7). There is a great deal of variation in energy demand with brand, size and model. Therefore, average usage may vary as a function of regional appliance mix. The iteration proceeds from year to year by subtracting out the energy consumption of retired units and adding back the energy from new units added (Eq. 3.8). The retired energy is a product of the average number retired per year (calculated as an approximation of the number of units coming on-line one average lifetime before, Eq. 3.13a) and the average unit consumption of the retired units (Eq. 3.9a). This last factor must be treated with care. The 1960's saw an increase in the average size of refrigerators and freezers and a rapid penetration of the energy consuming frost-free feature. Then, in the late 1970's these trends leveled off while the efficiency of new units increased as a response to energy price increases and government policies. Therefore, the usage of retired units is modeled to changes over time, first increasing and then decreasing, to reflect the changes in historical vintages (Eq. 3.10). New units, both replacements and net additions, are brought on-line at current energy levels (Eq. 3.9b) , with new unit average usage according to the efficiency improvements and efficiency phase-in period assumed in a given model run (Eq. 3.11). - 22 - ~ S R G TABLE 3.2 SUBMODEL FOR REFRIGEP~ATORS AND FREEZERS Variable Code t i k TOTNUM HSTOCK SAT UNNEW UNAVBS ALT EFFIMP EFFIMT TEND UNREP NEWENI RETENI ENREU YEAR BY UNOLD YRMAX UNMAX RETNUM NEWNUM Year (base year = 1) Appliance index (l=refrigerator and 2=freezer) Housing type (SF=i, MF=2) Total number of appliance Households Saturation Average unit usage of new appliance Average unit usage of base year stock Average appliance lifetime Efficiency improvement over base year models Terminal efficiency improvement over base year models Final year of efficiency improvement phase-in Average unit usage of replaced units Energy use of new units Energy use of retired units Annual appliance energy demand Year A.D. corresponding to t Base year (A.D.) Average unit usage of new units one average lifetime prior to the base year Historical year (A.D.) during which new units had highest usage of all years Average unit usage of new units in YRMAX Number of re~ired units Number of new units Equations Stock stream: TOTNUMt,k,i Initialize: ENREUi,k,i Iterate for t>l:: ENREUt,k,i. where RETENIt,k,i SATt,k,i × HSTOCKt,k,i TOTNUMi,k,i × UNAVBSk,i ENREUt-i,k,i UNREPt,k,i × - RETENIt,k,i RETNUMt,k,i + NEWENIt,k,i NEWENIt ,k,i ~ UNNEWt,k,i × NEWNUMt,k,i (3.6) (3.7) (3.8) (3.9a) (3.9b) - 23 - E S R G and UNREPt ,k , i UNNEWt,k,i EFFIMPt, i PJ~TNUMt ,k ,i = NEWNUMt, k, i 'UNOLD + [YEARt-BY) / (YRMAXk,i + ALTi _ BY) ] x (UNM~,i - UNOLDk,i) for t ! YRMAXk,i + ALTi - BY UNMAX + [ (YEARt - yp~AXk,i - ALT) / (BY-MAXk,i) ] x (UNNEWi,k,i - UMAXk,i) for YRMAXk,i + ALTi - BY<T <- ALTi UNNEWt-ALTi for t · A~..Ti - (1-EFFIMPt,i) × UNNEWi,k,i for EFFIMTi t > TEND 'TOTNUMi,k,i /ALTi for t -< ALTi NEWNUMt_ALT,k,i for t > ALTi TOTNUMt,k,i - TOTNUMt_i,k,i + RETNUMt,k,i (3.10) (3.11) (3.12) (3.13a) (3~13b) 3.3.2 Electric Ranges The determinants of growth for electric ranges are straight- forward: saturation and customer increases, efficiency improvements in new appliances, and market penetration of t_he microwave oven feature which can decrease overall energy demand. The total stock is given, as usual, as the product of saturation and housing stock (Equation 3.14). Further dis- aggregation by housing type is not necessary for this end-use since available saturation.and energy demand data does not distinguish between single and multi-f~m~ly usage patterns. The iteration process is initialized with base year data (Equation 3.15) and proceeds with the characteristic subtraction of retired units and addition of new units (Equation 3.16). Units are re=ired at a rate equal to the inverse of the average life time (Equation 3.17). The ~wo sources of new units, net additions and replacements, are represented by the first and second terms of Equation 3.18, respectively. Average usage of new units is decremented by a factor derived from assumed efficiency targets and phase-in times (Equations 3.19 and 3.20). Finally, account is taken of the decreased energy usage associated with microwave ovens used in association with electric ranges. The total energy demand is a weighted factor of usage without and with microwave ovens, the first and second terms, respectively, in Equation 3.21. E S - 24 - R O TABLE 3.3 SUBMODEL FOR ELECTRIC RANGES Variable Code t TOTNUM HSTOCK SAT ENREU1 ENREU UNAVB S UNNEW EFFIMP TEND RETENI NEWENI ALT MSAT EDF Year (base year = 1) Total number of appliance Households Saturation Annual electric range energy demand w/o microwaves Annual electric range energy demand with microwaves Average usage base year stock Average unit usage of new units Efficiency improvement Final year of efficiency improvement phase-in Energy use of retired units Energy use of new units Average lifetime Microwave oven saturation as a fraction of electric ranges Energy demand factor: ratio energy demand with and without microwave oven Equations Stock stream: TOTNUMt Initialize: ENREU11 Iterate for t>l: ENREU1t where RETENIt NEWENIt = SATt × HSTOCKt = TOTNUM1 × UNAVBS = ENREUlt_1 - RETENIt = ENREUlt_ 1/ALT + NEWENIt (TOTNUMt - TOTNUMt_i) x UNNEWt + ITOTNUMt_i/ALTI×UNNEWt and UNNEWt = (1-EFFIMPt) with { EFFIMT EFFIMPt = EFFIMT × UNAVB S × (t-l) / (TEND-l) Microwave oven adjustment: ENREUt for ~ t<TEND ~ t>TEND = ENREU1t × (1-MSATt) + MSATt × EDF × ENREU1t (3.14) 3.15) 3.16) 3.17) 3.18) 3.19) 3.20) 3.21) - 25 - E S R G 3.3.3 Li~htin~ Lighting energy demand is represented as the product of average annual energy usage per household and the number of households (Equation 3.22). The household growth is developed outside the submodel and inputted to it. There remains the anticipated changes in lighting energy demand per household. The model assumes that saturations are currently at 100%; i.e., all households have electric lighting and this shall remain true throughout the forecast period. However, the intensity of lighting use per household as well as the efficiency of conversion of electric to light energy has in the past, and may well in the future, vary with time. Future deviations from base year levels is taken into account by the usage factor (Equation 3.23). In the past, several factors have contributed to increases in lighting energy demand, per household: shift in housing mix toward larger SF residences, inexpensive electricity fostering purchase of decorative lighting' and discouragement of household conservation practice. These trends have generally reversed: family size is gradually shrinking, MF dwellings are rising relative to SF, and rising electricity costs are encouraging conservation. It appears likely' that these shifting patterns will lead, at least to some extent, to the market penetration of energy efficient lightbulbs. These include improved incandescents and more fluores- cents in the near term, followed possibly by commercialization of the screw-in fluorescent in the 1980's. Possible impacts of such technology shifts are incorporated in Equation 3.24. - 26 - TABLE 3.4 SUBMODEL FOR LIGHTING Variable Code HSTOCK UNAVB S UNAV UF MF RELEFF ENREU Year (base year = 1) Households Average consumption per housing unit in the base year Average consumption per housing unit Usage factor Market fraction efficient bulbs Efficiency improvement of nonconventional bulb Annual energy demand for lighting Equations ENREUt wi th = UNAVt × HSTOCKt UNAVt = UFt × UNAVBS with efficient bulb capturing market fraction: UNAVt = (1-MFt) × UNAVBS + MFt × (1-RELEFFt) or UFt = 1-MFt × RELEFFt (3.22) (3.23) × UNAVB S (3.24) - 27 - E $ R G 3.3.4 Television The submodel for televison usage must contain sufficient complexity to allow for (1) saturation and customer growth, (2) changes in unit energy requirements, (3) changes in the mix of black and white and color televisions,and (4) decreased usage per unit in cases of multiple ownership. The last factor is due to the nonproportionality between the number of televisions and the viewing hours. That is, if, for instance, a family purchased a second television, the hours of use will not simply double since the redundan~ unit will be used to some extent in substitution for the first. The dynamics of television energy demand growth are presented in Table 3.5. After defining the stock stream saturation and housing stock with inputs from outside the submodel (Equation 3.25), the iteration procedure is initialized with base year data (Equation 3.26) and proceeds from year-to-year in the usual way (Equations 3.27 to 3.31). Changing ratios of black and white to color are allowed in the weighted averages for new units in Equation 3.29. Finally, in the case of multiple average ownership, the total energy is decremented by a decreased use factor for second and third televisions (Equation 3.32). - 28 E S R G TABLE 3.5 SUBMODEL FOR TELEVISIONS Variable Code t k TOTNUM HSTOCK SAT NEWCOL NEWBW EFIMCO EFIMBW TEND FRBW ALT RETENI NEWENI UNAVBS EN P~EU DUF Year (base year = 1) Housing type Total nLunber Housing units Saturation Average unit usage of new color television Average unit usage of new black and white television Efficiency improvement color units over base year Efficiency improvement black and white units over base year Final year of efficiency improvement phase-in Fraction new units which are black and white Average lifetime Energy use of retired units Energy use of new units Average unit usage in base year Arunual energy demand in (t,k) Use factor for televisions beyond one per household (DUF=i for full use, 0 for no use) Equations Stock stream: TO~NUMt,k Initialize: ENREU1,k = TOTNUM1,k Iterate for t>l: ENREUt,k where RETENIt,k NEWENIt,k = SATt,k × HSTOCKt,k UNAVBS = ENREUt_i,k - RETENIt,k + NEWENIt,k = ENREUt_i,k / ALT = (TOTNUMt,k - TOTNUMt_i,k + TOTNUMt_i,k /AL~ × ( (1-FRBWt ) × NEWCOLt + FP. BWt × NEWBWt ) and NEWCOLt = (1-EFiMCOt) x NEWCOL1 NEWBWt = (1-EFiMBWt) x NEWBW 1 ~t<TEND withEFIMCOt -%EFIMCOT-~(t-1 / (TEND-i). x EFIMCOT for % t>TEND (similarly for EFIMBWt) Decrease usage for multiple ownership (for SATt,k>i): ENREU --- ENREUt,k x (i+DUF x (SATt,k -1) / SATt,k) 29 - (3.25) (3.26) (3.27) (3.28) (3.29) (3.30) (3.31) (3.32) 3.3.5 Clothes Dryers The submodel for clothes dryers is quite simple. Demand is primarily a function of saturation and customer growth since efficiency improvement possibilities are small and substitute technologies to conventional dryers are not on the horizon (increased use of solar drying would be reflected in lower satura- tions). Although predictions of changing unit usage intensity (such as loads per week) are unrealistic, qualitatively, the decreasing trend in population per household would suggest that current levels should safely overestimate demand. The equation set (Table 3.6) should by now be self-explanatory. TABLE 3.6 SUBMODEL FOR CLOTHES DRYER Variable Code t TOTNUM HSTOCK SAT UNAVB S ALT EFFIMP TEND NEWENI KETENI UNNEW ENREU Year (base year = 1) Total number Households Saturation Average unit usage of base year stock Average lifetime Efficiency improvement over base year units Final year of efficiency improvement phase-in Energy demand of new units Energy demand of retired units Average unit usage of new units year t Annual energy demand in year t Equations Stock stream: TOTNUMt Initialize: ENREU1 Iterate for t>l: ENREUt where RETENIt NEWENIt and UNNEWt with EFFIMPt = SATt × HSTOCKt = TOTNUM1 × UNAVBS = ENREUt_1 + NEWENIt = ENREUt_1 / ALT = (TOTNUMt - TOTNUMt_1 = (1-EFFIMPt) × UNAVBS _~(t-1) /(TEND-i) -~EFFIMT (3.33) (3.34) - PETE}IIt (3.35) (3.36) + TOTNUMt_1 / ALT)x UNNEWt (3.37) × ~ t<TEND EFFIMT for t t~TEND (3.38) - 30 - E S R G 3.3.6 Clothes Washer and Dishwasher Clothes washers and dishwashers are treated together since, as we shall see, the algorithm for modeling demand is identical. Each of these end-uses requires energy in two forms: (1) electric energy to drive motors and auxiliary equipment and (2) thermal energy in the form of hot water for process functions. Technology shifts are in the offing which would effect each of these. For the case of thermal requirements, the impact on overall electrical energy is indirect. Specifically, changes in hot water demand will "flow through" to effect the electricity demand in the cases where hot water is produced in electric hot water heaters. The submodel allows for changes in both the electrical and thermal demands, saving the latter for input into the electric water heat submodel. Therefore, after running the usual iteration to develop direct electrical energy demand (Equations 3.39 to 3.45), average forecast hot water demand for each appliance is calculated as a function both of overall saturation growths and unit demand changes. (Equation 3.46 to 3.47). These results are incorporated into the electric hot water heater submodel. - 31 - E S R G TABLE 3. 7 SUBMODEL FOR CLOTHES WASHER AND DISHWASHER Variable Code t TOTNUM HSTOCK SAT UNAVBS ALT CWHW DWHW HWRECW HWREDW UNNEW NEWENI RETENI ENREU EFFIM_~ TEND Year (base year = 1) Appliance index (CW = 7, DW = 8) Total number Households Saturation Average base year unit electric energy usage Average appliance lifetime Clothes washer average hot water demand per customer Dishwasher average hot water demand per customer Hot water reduced deman~ -- clothes washer Hot water reduced demand -- dishwasher Average unit electrical energy usage of new appliance units Energy demand of new units Energy demand of retired units Annual energy demand Efficiency improvement over base year Final year of efficiency improvement phase-in Equations Stock stream: TOTNUMt,i Initialize: ENREUi,i Iterate for t>l: ENREUt,i where RETENIt,i NEWENIt,i and UNNEWt,i with EFFIMPt,i = SATt,1 x HSTOCKt,i = TOTNUMlfi × UNAVBSi = ENREUt_i,i + NEWENIt,i - RETENIt,i = ENREUt_i,i/ALTi =(TOTNUMt,i-TOTNUMt_i,i+TOTNUMt_i,i/ALTi) x UNNEWt,i = (1 - EFFIMPt,i) = ~ (t-l/(TEND-1) ~EFFIMT × UNAVBSi × EFFIMT for It<TEND t>TEND (Continued) - 32 (3.39) (3.40) (3.41) (3.42) (3.43) (3.44) (3.45) E R G TABLE 3.7 (Continued) Hot Water Demands: New unit usage year t: UCWHWI = 19 × UNAVBS7 × (1-HWRECWt) UDWHWI = 4.6 × UNAVBS8 x (1-HWREDWt) (factor 19 and 4.6 are ratios of hot water to elect=ic energy requirements for clothes washer and dishwasher, respectively ~ef. l~i with ~t<TEND HWRECWt ={((t"i)/(TZND-1))HWRECT × HWRECT for ~t>TEND Average unit usage: U~It-I~t = (UC'WI~t_1 ×R-~,Mt + (TOTNUMt - RlgMt) where REMt = remaining units from previous year = TOTNUMt_1 ~( (1-1/ALTi) Average usage per customer: CWHWt = SAT~,7 x UCWHWt And similarly for dishwasher. x UCWq~.~It)/TOTNUMt ( 3.46 ) (3.47] 33 3.3.7 Electric Water Heaters The electric water heater submodel is sensitive to a number of time dependent factors affecting overall energy demand: saturation efficiencies average residential hot water requirement solar technology penetration The number of electric water heaters is computed in Equation 3.48. First, in Equation 3.48a, the base year units are computed from input data. For subsequent years, ~he total number is computed, as the combination of the previous year's value (first term on the right of Equation 3.4Sa) plus additions from two new markets. First, all new electric space heaters are assumed to also have electric water heaters. (This will slightly overstate growth.) This is reflected in the second line on the right of Equation 3.48b (penetrations of electric space heat also appear in the esh submodel, Section 3.3.9). Second, new non-electric space heated homes (Equation 3.48b, third line first bracket) are assumed to purchase electric water heaters according to base year electric water heaters saturations in base year non-electric space heated homes (Equation 3.48b, third line, second bracket). The hot water'energy demands of clothes washer and dishwasher have been developed earlier and are used in Equation 3.49 to define the demand from "other" uses. Possible reductions in this category, such as widespread adoption of slow-flow shower heads, etc., which are now on the market, are also allowed for in the last expression. Average efficiencies of electric w~t~r.h~aters are expected to improve with time primarily due to mlnlmlz~ng stand-by losses through better insulation jackets. The iterative procedure in Equation 3.51 weights new units (first term) with existing units (second term). The unit electric energy demand is then given by the ratio of hot water output (measured in KWH's) and the average efficiency (Equation 3.52). If there is some penetration of solar equipment to assist in ihot water production, this average must be properly corrected by weighting in the fraction solar assisted at reduced demand levels (Equation 3°52). The total electric energy required for this energy then follows immediately as the product of the total number on line and the average unit usage (Equation 3.53). 34 E S R G TABLE 3.8 SUBMODE7. FOR ELECTRIC WATER HEATER Variable Code t k TOTNUM HSTOCK SBY ESHSAT UNAVBS UNAV ALT CWHW DWHW OTHW HWREOT AVEFF NUNEFF FS PCSOLW ENP~U PEN Year (base year = 1) Housing type (1 = SF, 2 = MF) Total number Households Base year electric water heater saturation Electric space heating saturation Average base year unit electric energy demand Average unit usage Average lifetime Clothes washer hot water demand Dishwasher hot water demand Other hot water demand Hot water reduced demand for "other" Average electric water heater efficiency New unit average efficiency year t Fraction electric hot water heaters solar assisted Fraction supplied by solar in solar assisted units Total energy demand year t Penetration of esh in new construction Equations Stock stream: TOTNUM1,k TOTNUM%,k = SBYk × HSTOCK1,k = TOTNUMt_i,k + (HSTOCKt,k - HSTOCKt_i,k) × PENt,k + [(HSTOCKt,k - HSTOCKt_i,k) × (1-PENt,k)] × [(SBY-ESHSATi,k)/(1-ESHSATi,k)] "Other" water demand: OTHWt = (UNAVBS × AVEFF1 - DWHW1 - CWHW1) × (1-HWREOTt) Where DWHW and CWBW are from previous submodel, the first term in parenthesis is the base year total hot water usage. By definition NUNEFFt = where EFFIMPt = Average efficiency from: TOTNUMt × .AVEFFt = then, UNAVt = Finally, ENPd~Ut = AVEFF1/(1-EFFIMPt) (t-1)/(TEND-1) x EFFIMT for EFFIMT (TOTNUMt - TOTNUMt_1 x NUNEFFt + (TOTNUMt_1 × AVEFFt_1 (DWHWt + CW~Wt + OTHWt)/AVEFFt x (1-FSt + FSt x (1-PCSOLW)) TOTNUMt × UNAVt t<TEND t~TElqD + TOTNUMt_I/.ALT) - TOTNUMt_i/ALT) (w/o solar) (w solar) - 35 - (3.48a (3.48b) (3.49) (3.50) (3.51) (3.52) (3.53 ~ S R G 3.3.8 Air Conditioners The two types of air conditioners -- room and central -- are treated as separate end-uses. For each, the final forecast is a co-mingling of saturation and customer growths, efficiency increases, and building shell-thermal integrity improvements. It is tacitly assumed that average unit size will not increase over the base year due to demographic trends toward smaller family size and the decreased cooling load requirement that accompanies improved insulation. Energy demand is calculated by employing the usual iterative sequence (Equations 3.54 to 3.60). The model assumes that in cases of multiple room air-conditioner ownership, average energy usage is additive. This may lead to a slight overestimate of demand insofar as second and third window/wall units are used substitutively to some extent. Such an effect is, however, difficult to estimate. The model allows for adjustments in the average thermal integrity of building shells in the housing stock (Equation 3.61). This is given as an average over changes in base year and new construction units as indicated in Equations 3.62 and 3.62a. There are two likely sources for improvements here: reinsulation in the retrofit market and stricter conservation practices in new building designs relative to historic design standards. Consequently, the overall improvement over base year values depends on estimates of several factors such as-current building stock average characteristics, the degree of future reinsulation, and the effects of anticipated building codes for new construction. - 36 - E S R G TABLE 3.9 SUBMODEL FOR AIR CONDITIONERS Variable Code t k i TOTNUM ALT HSTOCK BYHSTK HRET TIIMP TIE TIN EFFIMP TEND SAT UNAVBS UNNEW NEWENI RETENI ENEUI1 ENREU Equations Stock stream: Year (base year = r) Housing type (1 = SF, 2 - MF) End use index (10 = Room A/C, 11 = Central A/C) Total number on-line Average appliance lifetime Housing units Base year housing stock surviving Housing unit removal rate Average thermal integrity improvement Thermal integrity improvement of base year housing units Thermal integrity improvement of new construction units Efficiency improvement over base year Final year of efficiency phase-in Saturation Average base year unit consumption Average unit usage of new units Energy demand of new units Energy demand of retired units Annual energy demand w/o thermal integrity improvement Annual energy demand - RETENIt,k,i = ENEUIlt_i,k,i/ALTi (TOTNUMt,k,i - TOTNUMt_i,k,i + TOTNUMt_i,k,i/ALTi) x UNNEWt,k,i TOTNUMt,k,i = SATt,k,i x HSTOCKt,k Initialize: ENEUIll,k,i = TOTNUMi,k,i x UNAVBSk,i Iterate for t>l: ENEUIlt,k,i = ENEUIlf_i,k,i + NEWENIt,k,i where RETENIt,k,i NEWENIt,k,i (3.54) (3.55) (3.56) 3.57) 3.58) and UNNEWt,k,i with EFFIMPt,i = (1 - EFFIMPt,i) x UNAVBSk,i x EF MT FOR it < TEND Correct for changes in thermal integrity: ENREUt,k,i = (1-TIIMPt,k,i) x ENEUIlt,k,i where TIII~t,k,i and BYHSTKt,k 3.59) (3.60) (3.61) = [TIIMPt_I,k,i x HSTOCKt_i,k + TIEt,k,i x BYHSTKt,k - TIEt_l,k,i x BYHSTKt_i,k + TINt,k,i x(HSTOCKt,k - HSTOCKt-i,k + BYHSTKt,k - BYHSTKt-i,k) ~ (3.62) / HSTOCKt,k for t>l = HSTOCK1,k x (1-HRETk) t-1 (3.62a) - 37 - E S R G 3.3.9 Electric Space Heating The growth in the number of electric space heated (ESH) homes is closely related to the decision on fuel use in new construction markets or in converting existing households from fossil fuel heating to electric. Consequently, it is analytically useful to introduce the concept of "penetration" in developing the number of housing units with ESH. In the model, the following definition is used: A electric space heat customerst Penetrati°nt = A customerst where t is the year label and "A" signifies the change from the previous year. The historic values of the increments are readily available from utility records providing useful information in estimating future trends. With this definition, the yearly number of ESH units can be computed through the iteration procedure of Equation 3.63 of Table 3.10 with the initial number defined as the product of base year saturation and household for each housing type. The ESH intensity (annual KWH consumption per unit) must be represented as the combination of three distinct heating systems: conventional resistance heating, electrically driven heat pump, and solar augmentation (with or without heat pumps). The key dynamic expression is the iteration formula, Equation 3.66, which increments the previous year's total ESH energy demand by the additional demand coming on-line. This additional demand is the sum of the contributions from the system options considered: conventional resistance ("direct"), heat pump and solar, respectively, in Equation 3.66b. Each of these is in turn decomposed into the product of new units in the ESH subcategory and usage per unit Equations 3.67, 3.68, and 3.69. A supplemental wood heat option reduces the electric energy intensity in both existing and new dwellings (in Equations 3.66a and 3.68a, respectively. Adjustments are also made for conservation oriented changes in building envelope designs ("thermal integrity factor") in new units relative to the base year mix of electrically heated units, as shown in Equation 3.68a. Adjustments can also be made over time for retrofit improvements in the building envelopes of base year units, as described in Equations 3.66a and 3.70. Finally, the market share of each ESH option is given a broken linear time dependence over the forecast period. - 38 - E S R G TABLE 3.10 SUBMODEL FOR ELECTRIC SPACE HEATING Variable Code year t k BY TOTNUM DELNUM HSTOCK PEN PENIN PEN90 ESHSAT UNAVBS RHAVBS RHAVT RSHUEX RSHUNW NEWENI NESHDI NESHHP NESHSA FHP FHPBY TEHP COP COPEI TEFFI FSA TSSA PCSOL FWHE FWH90 FWHA FWHN TIF TIEHE TIE ENREU Year (A.D.) Year Index (base year = 1) Building type Index (SF=i, MF=2) Base year (A.D.) Total number New units in current year Housing stock Penetration in current year Initial penetration Penetration in 1990 Base year saturation of electric space heat Average base year usage all units Average base year usage resistance heating units Average usage new electric resistance heating units in current year Energy demand of base year stock in current year Energy demand of all units installed after base year through current year Energy demand of new units installed in current year Energy demand of new direct ESH Energy demand of new ESH with heat pump Energy demand of new ESH with solar assist Fraction of new ESH units with heat pump Fraction of base year ESH units with heat pump T~e end of increasing heat pump fraction of new ESH Heat pump coefficient of performance in current year COP efficiency improvement End year COP efficiency improvement Fraction of new ESH units with solar assist Time start of solar space heat penetration Percent heating requirement due to solar in solar assisted ESH units Wood space heat fraction in base yaer Wood space heat fraction in 1990 Wood space heat fraction current year Wood space heat fraction for new homes Thermal integrity factor adjusting new unit demand from base year unit demand Thermal integrity improvement for base year units in year t = 20 Thermal integrity improvement for base year units in. current year Annual energy demand - 39 E $ R G TABLE 3.10 (Continued) Equations Stock stream: TOTNUMI,k = ESHSATk × HSTOCK1,k (3°63) TOTNUMt,k ~_ PENt,k - = TOTNUMt 1,k + × (HSTOCKt,k HSTOCKt_i,k) (3.63a) for t >1 and HSTOCK > t,k HSTOCKt-1,k TOTNUMt,k = TOTNUMt_i,k Initialize: ENREU1,k = TOTNUM1,k × UNAVB~ (3.64) RHAVBS = UNAVBSk/(1 - FHPBYk + FHPBYk/COPl,k) (3~65) Iterate: where RSHUEXt,k for t > 1 and HSTOCKt,k ~ HSTOCKt_l,k(3o63b) ENREUt,k = RSHUEXt,k + RSHUNWt,k = TOTNUM1,k × UNAVBS 1 - FWHAtrk 1 - FWHEk × (1 - TIEr,k) RSHUNWt,k = ~ NESHDIt,k + NESHHPt,k + NESHSAt,k t Subcomponents of new demand: = (1 - FHPt,k - FSAt,k) × DELNUMt,k × RHAVT = FHPt,k × DELNUMt,k × RHAVT/COPt,k = FSAt,k ~ DELNUMt,k × (1 - PCSO~/100) NESHDIt,k NESHHPt,k NESHSAt,k where DELNUMt,k = TOTNUMt,k - TO~t_l,k 1-FWHNk 1 - FWHEk RHAVT = RHAVBS × TiFk × (3~66) (3.66a) (3.66b) (3.67) (3.67a) (3.67b) (3.68) (3.68a) - 40 - TABLE 3.10 (Continued) Linear phase-ins of time dependent variables: FHPt,k =iFHPi,k + (t-1)/(TEHP-1)× (FHPTEHP,k iFHPTEHP,k t < TEHP > t - TEHP FSAt'k = [(t-TSSA)/(21-TSSA)] x FAS21,k for I FWHE + (k-'~H90 - k'~HE) x FWHAt'k = [FWH90 [year < 1990 ~year ~ 1990 PENt,k ~PENIN + (PEN90 ~PEN90 - PENIN) × - FHP1,k) for TSSA TSSA (t-1)/(1990-BY) for (t-2)/(1990-BY-1) for Iyear < 1990 > [year - 1990 TIEt,k = TIEHE(k) × (t-1)/20 = ICOPi,k × [1 + COPEI coPt'k [COP1,k × (1 + COPEI) x (t-1)/(TEFFI-1)] for ft < TEFFI t ~ TEFFI (3.69) (3.69a) (3.69b (3.69c (3.70) (3.71) 41 - E S R G 3.3.10 Heating Auxiliaries Heating auxiliaries refers to the electrically driven equipment such as pumps and fans used in conjunction with oil and gas home heating systems. Energy demand is simply the number of fossil-fuel heating systems multiplied by the average unit electrical demand for auxiliaries. With the assumption that all customers have either fossil fuel or electric space heating, the heating auxiliary saturations is given simply by one minus the electric space heating saturations. This is used in developing the yearly number on-line (Eq. 3.72). The expression for annual heating auxiliary energy consumption (Eq. 3.75a) is composed of contributions from surviving base year households (defined in Eq. 3.74) and newly constructed units, reduced by a factor to account for growth in supplemental wood heating. Energy requirements for these are shown, respectively, in Eqs. 3.73 and 3.75 where possible decrements in average units usage due to improvements in the average thermal integrity of residential buildings is accounted for. On the other hand, the model does not explicitly include possible decreased energy requirements due to heating system or electric motor efficiency improvements. 42 - E S R G TABLE 3.11 SUBMODEL FOR HEATING AUXILIARIES Variable Code: t k ESHSAT UNAVBS TIIMP TIE TIN HSTOCK BYH-STK HRET TOTK ENEUI ENEUI1 ENEUI2 FWFFE FWFFE90 FWFF Equations TOTKt,k ENEUIlt,k where: BYHSTKt ,k ENEUI 2t ,k Finally, ENEUIt,k FWFF Year (base year = 1) Housing type (i=$F, 2=MF) Electric space heat saturation Average unit usage in base year Thermal integrity improvement over base year Thermal integrity improvement of base year housing units Thermal integrity improvement of new construction units Housing stock Base year non~ESH housing units surviving Housing unit removal rate Total number of non-ESH housing units Annual energy demand Annual energy demand from base year housing stock Annual energy demand frc~ newly constructed units Wood space heat fraction in base year Wood space heat fraction in 1990 Wood space heat fraction in current year = (1 - ESHSATt,k) × HSTOCKt,k (3.72) = BYHSTKt,k × (1-TIEr,k) × UNAVBSk (3.73) TOTK1,k × (1-HRETk)t-1 (3.74) (ENEUI2t_I,k + (1-TINt,k) × UNAVBSk × TOTKt,k - TOTKt_i,k + BYHSTKt_i,k - BYHSTKt,k] (3.75) (ENEUIlt,k + ENEUI2t,k) × [1-FWFFE] 'FWFFE + (FWFFg0-FWFFE) × ~1990_BASEYR3 FWFF90 (3.75a) ~year<1990 for (3.75b) %year~1990 - 43 - S R G 3.3.11 Miscellaneous Appliances This category includes an enormous array of small appliances used in the home for food preparation, entertainment, maintenance and personal care. Since energy demand in this category consists of use in a large variety of devices, each with low annual consumption, a disaggregated computational scheme is inappropriate. Consequently, forecast energy consumption is computed simply as the product of average demand per housing unit and the number of housing units (Eq. 3.76). The average unit usage deviates from base year values by a factor which is phased in linearly over the forecast period (Eqs. 3.76a and 3.77). Average u~e per customer of miscellaneous appliances had been generally increasing prior to 1973 as part of the overall growth in energy- intensive equipment fostered by a combination of rising real per capita income, declining real electricity prices, and an explosion of small convenience devices. Current trends can be expected to moderate grow~h~ Major factors are: · increasing electricity costs · substitution effects (e.g., cooking devices for ranges) · decreased growth in disposable income · energy conservation awareness · smaller families · market saturation On the other hand, unanticipated new devices may appear in the marketplace to refuel growth in average consumption. Consequently, there is a good deal of uncertainty in use per customer trends over the twenty year forecast. Actual scenario runs of the model encompass a range of values. Variable Codes t HSTOCK UNAVBS UPCIN UNAV ENREU Equations: ENR~Ut where UNAVt with UPCINt TABLE 3.12 SUBMODEL FOR MISCELLANEOUS APPLIANCES Year (base year = 1) Total number of housing units year t Annual average usage per housing unit in base year Use per customer increase Annual average usage per household unit Total annual energy consumption = UNAVt x RSTOCKt (3.76) = (1 + UPCINt) × UNAVBSt (3.76a) = ((t-i)/20) × UPCIN21 (3.77) - 44 - E S R G 4. COMMERCIAL SECTOR In modeling electrical energy consumption for the commercial sector, the degree of analytic detail is constrained by the adequacy both of the data base and current understanding of energy flows in the commercial building sector. Over the past few years, however, substantial progress has been made in quantitatively characterizing the components of commercial demand which allows for considerably more refinement than has been traditionally employed (~.~., Refs. 2-6, 8). The importance of avoiding aggregate historical trending or correlation analysis is underscored by the reversal or diminution of the underlying factors that drove U.S. commercial energy growth at over 5% per year in the twenty years preceding the oil embargo of 1973. These factors included: rapidly increasing population, per capita income, and proportion of employment in services, combined with decreasing energy costs. The commercial model tracks energy demand for five building types (BT), four end-uses (EU), or twenty BT/EU combinations each for existing and new buildings. These are displayed in Table 4.1 along with the commercial category allocated to each building type. Both demarca- tions -- "building type" and "commercial category" -- will be useful in constructing the commercial model. 4.1 Model Structure AS discussed in Sec. 2, the underlying strategies in the commercial and residential sectors are analogous. In the commercial sector, the measure of energy using activity is the magnitude of floor space while the energy intensity is expressed in average annual kwh/square foot for each end-use, building type, and utility service territory. The elements of the model are displayed schematically in Figure 4.1. The specifications of base year floor space, average consumption per square foot of each end-use ("electrical use coefficients"), and saturations (fraction of floorspace with end-use) gives the base year breakdowns. Folding in the time dependences of floorspace, conserva- tion, and saturations, one arrives at the yearly forecasts. The commercial forecast model, therefore, divides conceptually into two separate submodels: one for floorspace and the other for electric intensity. These will be discussed in turn. 4.2 Commercial Floors~ace The floorspace computation is summarized in the first row of Figure 4.1. Note that the floorspace analysis is disaggregated by commercial category; these are then aggregated to building types according to the allocations of Table 4.1. The reason for this procedure is that while detailed growth forecasts are available for the 14 commercial categories (e.g., Ref. 7), the latest intensity E S - 45 - R G TABLE 4.1 COMMERCIAL MODEL END-USE, BUILDING TYPES AND COMMERCIAL CATEGORY Index i End Use 1 Space-Heating 2 Cooling 3 Lighting 4 Aux. & Power Index Index k Building Type j Cc~nercial Category 1 .Office 1 Finance, Insttrance and Real Estate 2 Federal Gove~ ~nt 3 State & Local Gove~nt 4 Professional Services 2 Retail 5 Re~c~i] and Wholesale 3 Hospitals 13 Hospi~m]s and Health Ralated EstaBlishments 4 Schools 14 Schools and Education 5 Other 6 Trucking and Warehouse 7 Other Transportation Services 8 C~L,L~ulications 9 Lodging & Personal Services 10 Business & Repair Services 11 Amas~-nt & Recreation 12 Railroad - 46 E $ R G Electrical Use Coefficients, by Building Type End-Use Ai r-Condi tioninq & Electric Space Ileat- ing Saturations Temporal Factors Floorspace Growth and Retirement by Con~ercial Category Conservation Tech- nology Penetration Rates and Energy Savings by BT, EU new & retrofit markets Saturation in New tion Growth in Existil%g BTs Floorspace Retrofit Market by ~T & EU -~'~oorspaco New Construction Market by BT & EU Retrofit Market Electrical Use Co- efficients by BT & EU New Construction Mar- ket Electricial Use Coefficients by BT & EU Retrofit Market Electrical Consumption by BT & EU New Construction Market Electrical Consumption by BT & EU Co~anercial Sector Electrical Consumption by BT & EU Electrical Consumption by liT & EU FIGURE 4.1 COMMERCIAL SECTOR MODEL SCHEMATIC Indices t = 1,2 .... j = 1 to 14 n = 1 to 2 k = 1 to 5 Variables SQFTCC SQFTBT RSQFT SPOP UPOP SAPOP PARAM EMP C~{IND OSQFT NSQFT AGG TABLE 4.2 COMMERCIAL MODEL - FLOORSPACE Year (1975 = 1) Commercial category Existing or new building Building types Square footage by commercial category Square footage by building type Annual retirement rate of base year floorspace Statewide population Population in forecast area School age population in forecast area Parameter used for floorspace growth Statewide employees Commerc£al index giving floor, pace ratios in. successive years Pre-1976 floorspace remaining in year t New floorspace Aggregation matrix from commercial category to building type Equations: Growth parameters: PARAMt,j = E}~t,j for j = 1 to 12 and PARAMt,13 = UPOPt PARAMt,14 = SAPOPt Growth indices: COMINDt,j = PA~Mt,j Iterate: · SQFTCCt,j = COMINDt,j x UPOPt/SPOPt /PARAMt_ltj × SQFTCCt_i,j witlh SQFTCC1,j inputted. Aggregate to building type: SQFTBTt,k = ~AGGj,k x SQFTCCt,j Breakdown to existing and new: t SQFTBTt,k = OSQFTt,k +t~=2NSQFTt',k (continued) E S - 48 - R for t>l for t>l G (4.1) (4°2) (4.3) (4.4) (4.5) (4.6) (4.7) where and TABLE 4.2 (Continued) SQFTBT1,k {t = 1 OSQFTt,k = for (1-RSQFTk) x OSQFTt_i,k t > 1 NSQFTt,k = SQFTBTt,k - SQFTBTt_i,k + RSQFTk x SQFTBTt_i,k (4.8) (4.9) - 49 - E S R G data and conservation penetration analysis are available on the basis of building type (References 6 and 8). Floorspace is thus treated on the basis of commercial category and then aggregated to the building type demarcation. The system of equations for the floorspace component of the commercial model is given in Table 4.2. The model is based on a year-to-year iteration (Equation 4.5). Two factors are involved: 1975 floorspace data to initialize the iteration and an annual growth index. 4.2.1 1975 Floorspace A separate computation was performed to generate the 1975 floorspace data. This was required by the paucity of data on existing commercial building stock. Except for schools and hospitals, initial floorspace estimates were derived as the product of employment by SIC (Refs. 9, 29,36), adjusted to full-time eQui- valents, and average floorspace per employee by SIC. These estimates were then aggregated according to the groupings in Table 4.3. The square foot multipliers, giving average footage per employee by SIC, are displayed in Table 4.3. They are based on average values given in the literature (Ref. 10~. School and hospital floorspace estimates were derived by scaling national floorspace estimates (Ref. 6) by the ratio of forecast area to national pupils and hospital beds. (Ref. 27), respectively. The 1975 floorspace are used as data in the floorspace module of the main Commercial program (see Eq. 4.5). Total floorspace is ultimately normalized to base year energies as discussed later. 4.2.2 Floorspace Growth Indices The growth indices ("COMIND") give floorspace ratios in successive years (Table 4.2, Equation 4.4). The growth indices are equivalent to: where COMINDt,j GRSQFTCCt,j = (1 + G~SQFTCCt,j) (4~10) average annual growth rate of square footage in commercial category and year t. For the case of hospital and health related establishments (j=13), population growth is the proxy for floorspace growth (Equation 4.2). For the case of schools (j~14), floorspace growth is equated to growth in school age population (Equation 4.3). For the other co~ercial categories, the level of employment was taken at t_he best measure of activity and, therefore, floorspace growth. Estimates of population and employment growth used in the current forecast are postponed to the data discussion below. - 50 - E S R G T~mT,~ 4.3 .~UARE ~OOTAGE MULTIPT,~;~S C~,~rcial Category Corres?ondi n~ SIC' s 1. Finance, Insurance, Real Estate(FIRE) 2. Federal Govez~L~nt 3. State and Local Gove~%~nt 4. Professicc~l Service 5. P~tail & Wholesale 6. Trucking & Warehouse 7. Other Transportat/on 8. C~u~ication 9. Lodging and Personal Service 10. Business and Repair Service 11. ~t & Recreation Service 12. 60 61 62 63 64 65 66 67 91 92 93 81 83 89 50,51 52 53 54 55 56 57 58 59 42 41 44 45 46 47 48 70 72 73 75 76 78 79 84 86 4O * The A~ntinistrative ~nd Auxiliary porticos of FI~E, retail and wholesale, transportation, C~,~nication, and Utilities are allotted 200 sq. ft. per employee. Source: P~f. 10. Average Square Feet Per Employee* 155 214 176 149 149 390 187 156 189 183 393 211 216 312 682 987 271 509 5O2 532 878 270 444 3162 28O 139 809 8050 780 177 837 304 275 1422 270 777 871 2000 860 187 - 51 - E S R G 4.3 Electric Energy Intensities With floorspace estimates generated with the methodology just' described, there remains the second element of the commercial fore- cast: average electric energy consumption per square foot. As shown in the lower two rows of boxes of Figure 4.1, the evaluation of intensities again involves two phases: first, a specification of initial values of electrical demand coefficients (defined as average annual electrical consumption of a given BT/EU/service territory combination) and end-use saturations; second, an estimation of conservation penetration and saturation growth. We shall discuss these two phases ~equentially. 4.3.1 1975 Intensities Average electrical demands by end-use and building types have been adapted from the "theoretical building loads" developed for the Department of .Energy by Arthur D. Little, Inc. (Ref. 8). The study combined engineering design parameters and survey research to arrive at estimates of average building requirements for each of the EU/BT combinations treated in ~he commercial model. The adaptation of ADL's relevant regional building loads to unit electricity demands (electrical use coefficients) by service territory requires the adjustment of weather sensitive loads to the prevailing climatic conditions. 4.3.2 Future Intensities The computation of forecast year intensities is described in Table 4.4. Intensities are, by definition, the product of the saturation (fraction of floorspace with end-use) and the electrical use coefficients (average annual kwh/ft2 of floorspace with end-use). This is expressed mathematically by Eq. 4.13~ Note that the intensities are specified by 4 end-uses and 10 building types. In practice, however, many of the inputs are trivial. (E.g., saturations are defined as 1 for i = 3 and 4). The time dependence of the electric use coefficient ("EUC") is obtained by incrementing the 1975 values by changes in end-use demands due to conservation practices initiated in the post-1975 era. In reference 6, three levels of efficiency improvements are considered. The levels are defined by cost-effectiveness groupings, i.e., level 1 changes have the shortest paybacks and level 3 changes the longest (though all are cost-effective). The levels incorporate bundles of design features, devices, measures and/or equipment in the following categories: e Building thermal integrity, including passive solar measures. Heating, ventilating, and air conditioning systems and controls. - 52 E S R G ® Internal. loads and comfort conditions. · Operation and maintenance provisions. Measures in the last category, O&M provisions, tend to drop out of the level 3 technology combinations, which are the most capital-intensive of the three. These three groupings are labelled "m" in Table 4.4. In addition, an exogenous growth may be specified for the fourth category (Auxiliaries and Power) to capture such effects as increased use of electrical and electronic equipment. The energy savings that the technology and modifications associ- ated with each conservation level would achieve are provided in Reference 6 for each United States region. These savings are to be applied against the base line loads discussed above. The matrix of percentage efficiency improvements is given in Table 4.5 by level, building type and end-use. They are also broken down by new buildings and 1975 stock ("retrofit"). The overall savings are functions both of the energy requirement reductions related to the conservation level and the penetration of these levels. Here, level "penetration" is defined as the fraction of floorspace in the given year and BT/EU combination at the given level. The average savings are then given by the sum over levels of the product o~)level penetration ("PENt,i,k,m") and percent improvement ("PIMPt,i,k,m as given in Eq. 4.12. The time dependence of the electrical use coefficients can then be written as the initial value multiplied by a decreased demand factor (Eq. 4.11).. The penetration of the conservation'level technology groupings is dependent on a number of factors: initial costs, consumer preference, capital availability, payback time and electricity costs.. The penetration levels are calculated by using an economic model which applies the estimated payback period to S- shaped market acceptance curves. The levels of penetration which result are functions of inputted economic assumptions. Consequently, the forecast scenarios can incorporate sensitivity to a range of' assumptions on, ~ future fuel costs. The electrical intensities require, in addition to the electrical use coefficients, "saturation" estimates (Eq. 4.1.3). An additional, factor must be taken into account for the electric space heat end-use: the possible use of heat pumps. Penetration analysis suggests that electric space heat with a heat pump is cost-effective over conventional electric resistance heating. The model allows for a market response delay by phasing in the fraction of new electrically space heating buildings which have heat pumps to a specified level in 1985. Additionally, the model incorporates the cautious assumption that solar heating and air conditioning will have an insignificant impact on overall load during the forecast period. In the case of water heating, where electricity consumption is relatively insignificant, solar energy would substitute primarily for fossil fuels. - 53 - E S R G TABLE 4.4 ELECTRIC ENERGY INTENSITIES Indices t i k n m Year (11975 = 1) Commercial end-use (i = 1 to 4) Building type (k = 1 to 5) Existing or new buildings (n = 1 to 2) Conservation levels (m = 1 to 3) Variables INTEN EUC SAT PEN PIMP PENSUM HPFRAC COP AUPFAC Electrical intensity (average annual KWH/FT2) Electrical use coefficient (= INTEN with all saturations - 1) Saturation (fraction floorspace with end-use) Market fraction ("penetration") Fractional energy savings (i,k,n) at given conservation level (Table 4.5) Fractional energy decrease Fraction new electrically heated buildings Heat pump coefficient of performance Fractional increase of terminal year auxiliary and power intensity over base year Equations From definitions: EUCt,i,k,n = (1- PENSUMt,i,k,n) x ~UCl,i,k,n (4.11) where Z (4.12) PENSUMt,i,k,n'= m PIMPt,k,n,m x PENt,i,k,n,m and INTENt,i,k,n = SATt,i,k,n x EUCt,i,k,n (4.13) except for Auxiliaries and Power, where growth is incorporated: INTEN _Il +AUPFAC x t,4,k,n -~ 25 ] (4.13) and for new electric space heating building where heat pumps are phased-in: INTENt,i,k,2 = (HPFRACt/COP + (1-HPFRACt)) x SATt,i,k,2 x EUCt,i,k,2 where HPFRAC is given the following linear parameterization: for t~ll HPFRACll (4.14) (4.!5) - 54 - E S R G TABLE 4.5 FRACTION OF LOAD SAVED Conservation Level Building Type End-Use Retrofit Market New Market 1 2 3 1 2 3 Dffice Heating .11 .15 .23 .25 .35 .40 Cooling .13 .17 .34 .20 .35 .47 Lighting .25 .50 .50 .15 .25 .25 Aux.&Power .17 .28 .38 .10 .16 .20 Retail Heating .08 .23 .25 .30 .42 .50 Cooling .12 .20 .20 .25 .37 .46 Lighting .13 .25 .25 .15 .24 .30 Aux.&Power .18 .36 .45 .10 .16 .20 Hospital Heating .07 .15 .16 .20 .32 .40 Cooling .07 .24 .28 .15 .25 .33 Lighting .08 .12 .17 .10 .15 .15 Aux.&Power i .19 .25 .30 .10 .15 .15 Schools Heating .14 .21 .29 .30 .42 .50 Cooling .16 .26 .56 .25 .35 .41 Lighting .12 .30 .42 .15 .20 .20 Aux.&Power .26 .33 .53 .20 .25 .30 Miscellaneous Heating .09 .15 .26 .30 .42 .50 Cooling .05 .12 .24 .25 .35 .40 Lighting .09 .15 .24 .15 .15 .20 Aux.&Power .14 .23 .32 .15 .20 .20 55 - E S R G 4.4 Energy Forecast The computation of commercial sector energies is a straight- forward exercise once the forecasts for floorspace and electrical energy intensity have been obtained. The expressions for average annual energy consumption by end-use and building types are given in Table 4.6. Calibration to base year sales is performed on total sales: ~ (4.16) Commercial Energy Sales, year t =i,k,n ENCEUt,i,k,n The model is first run from 1975 (t=l) to the base year (t = l+base year - 1975). The total floorspace is then adjusted to normalize total sales in a given service territory to base year experience. An overall square foot adjustment factor scales each term in the energy s~/n (Equation 4.1.7). The necessity for such an adjustment is traced to the use of national average square foot per employee data. One finds, as anticipated, that such data closely approximates state averages except in service areas dominated by land-scarce urban centers. TABLE 4.6 COMMERCIAL ENERGY FORECAST Indices t Year ,[1975 = 1) Co~ercial end-use (i = 1 to 4) Building type (k = 1 to 5) Existing or new buildings (n = 1 to 2) Variables ENCEU INTEN OSQFT NSQFT Annual energy consumption Corresponding electrical energy intensity (See Table 4.4) Remaining 1975 building stock floorspace (See Table 4.2) New floorspace (See Table 4.2) Equations Retrofit market: ENCEUt,i,k,1 New Construction: ENCEUt,i,k,2 = INTENt,i,k,1 × OSQFTt,k t = ~ t' =2 INTENt' ,i,k,2 × NSQFTt' ,k - 56 - $ R G (4.17) (4.18) 5. INDUSTRIAL SECTOR As with the residential and commercial sectors, industrial energy consumption is broken down into the product of energy using activities and energy intensities of those activities. The measure of activity in the case of industrial energy consump- tion is employment for each major manufacturing subsector. The subsectors are chosen at the two-digit Standard Industrial Clas- sification (SIC) level. Less detail would lose sensitivity to differing growth and electricity use trends among industries; more detail would require inputs beyond the capability of the current data base. The SIC's included in the forecast are given in Table 5.1. The electric energy intensity for the industrial sector is correspondingly defined as average electricity consumption per employee. The growth in employment is related to the level of economic growth and business activity in the state, while the electric intensity is a function of several major factors: pro- cess technology, labor productivity (production per employee), pollution control requirements, conservation level, and fuel mix. In past decades, electrical energy growth has been driven by in- creases in employment and production levels, energy-intensive- ness in manufacturing processes, and increased fuel fraction for electricity on the one hand and a virtual absence of energy con- servation on the other. The job of forecasting is to adequately characterize historical experience and to incorporate a realistic range of growth lin the demand-driving factors. 5.1 Model Structure The model elements and their relationship are schematized in Figure 5.1. Growths in base year electric energy consumption by SIC are related to growths in employment and electric energy in- tensity. The resultant electric energy demand must then be di- vided into the amount purchased and the amount self-generated, since it is the purchased energy which is ultimately identified with utility sales. Changes in the fraction of electric energy consumption supplied by self-generated electricity must also be allowed for. The forecast energy thus depends on the specifications of base year experience, the forecast of employment growth, the trend in electric energy intensity, and the changes in fraction self- generated. These will be discussed, respectively, in Sections 5.2 to 5.5 and brought together in the energy forecast model de- scribed in Section 5.6. - 57 - E S R G TABLE 5.1 STANDARD INDUSTRIAL CLASSIFICATIONS ESRG Index 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 SIC Description 20 22 23 24 25 26 27 28 29 33 34 35 36 37 3O 31 32 38 39 Food and Kindred Products Textiles Apparel and Other Textile Products Lumber and Wood Products Furniture and Fixtures Paper and Allied Products Printing and P~blishing Chemicals and Allied Products Petroleum and Coal Products Primary Metal Fabricated Metal Products Machinery (except electrical) Electric Equipment Transportation Equipment Rubber and Plastics Leather Stone, Clay and Glass Instruments, Related Products Miscellaneous E - 58 - R G Base Year Electric Energy Consumption by SIC !Self-Generated Electricity by SIC Purchased Electricity by SIC Temporal Factors Growth in Employment iGnr~nthsi~ Electric Energy[ I Electric Energy SIC] :iConsumption by  Change in Fraction Self-Generated Self-Uenerated [ Electric__lty by SIC ] [Total Industrial Sales] FIGURE 5.1 INDUSTRIAL SECTOR MODEL SCHEMATIC 5.2 Base Year Experience The model requires inputs on base year industrial sales and self-generated electricity by two-digit SIC. Statewide data is available from public sources (see e.g., Reference 12). Fractional breakdowns of base year sales by service territory and SIC are generally available and may also be generated from statewide data on the basis of county employment by industrial grouping (Refer- ance 9) and on county to service area allocation matrices. This is, of course, not necessary for statewide forecasts. 5.3 Employment Growth The measure of industrial activity used in the model is the level of employment. Employment is closely related to actual phys- ical production and detailed employment data is much more readily available than other measures, such as value added, value of ship- ments, etc. Electrical intensity (discussed in the next subsection) is then expressed in kwh per employee. The Bureau of Labor Statistics, the Bureau of Census, and a number of state and local agencies collect employment data and predict future trends. The employment values used in the indus- trial model are for the total production and non-production em- ployees, which is generally typical of the reported data. Most of the data sources tend to be consistent, with the variations between sources providing a cross-check and a possible range for alternative forecasts. The employment values used in the model are the ratios of future year employment to base year employment by industry class, expressed as a State Employment Index (SEMPI). Consequently, the absolute employment figures are not of importance to the model. 5.4 Electrical Energy Intensity Electrical Energy Intensity (SEI) is defined as electricity consumption per employee. Its value, for any given two-digit SIC, has changed over time as a result of the adoption of capital-in- tensive production technologies aimed at increasing labor produc- tivity and price trends of electricity (and other production in- puts) that have tended to affect industrial energy management prac- tices.. The electrical intensities for the major industrial classes in each state are calculated by testing a variety of multiple re- gressions on the historical data, using such explanatory variables as labor productivity, electrical price, and time trends. The best explanatory model is then used to predict future values of the intensities. We discuss in Chapter 8 the details of these methods. - 60 - E S R G 5.5 Fraction Self-Generated Up to this point, industrial electricity consumption has been forecasted on the basis of the total demand for electricity on the customer's side of the meter: Total kwh Demand = Employment x Intensity where intensity is expressed in terms of unit employment require- ments. Only part of this demand must be met by the utility, how- ever, since many industries produce some of their electricity re- quirements in-house. Therefore, an additional factor--the fraction of total elec- trical energy consumption which is self-generated--is necessary in computing forecast industrial sales. This fraction may change over present values as a result of national energy policy, developing state interest in addressing regulatory and other barriers to such investment, and renewed interest among,industrial planners in com- bined energy systems as a result of the increasing costs of elec- tricity. Therefore, the historic decrease in the fraction self- generated is likely to reverse. The degree will depend on scen- ario assumptions based on existing studies of cogeneration poten- tial and on historic levels experienced in the state. 5.6 Energy Forecast The basic elements required for the industrial sector have now been described. They are brought together in the energy fore- cast model summarized in Table 5.2. The fractional breakdown of industrial sales (Equation 5.1) is used to define base year sales by SIC. Total energy is derived from purchased energy using base year values for the fraction self-generated (Equation 5.3). The growth of Equation 5.4 is based on the growth in state employment index (Section !5.3) and electric energy intensity (Section 5.4). Finally, forecasted total energy consumption is decreased by the self-generated component to arrive at the forecast for industrial sales (Equation 5.5). - 61 - E S R G TABLE 5.2 INDUSTRIAL ENERGY FORECAST Indices t Year (base year = 1) Industrial grouping by two-digit SIC (j ~ 1 to 19) Variables TESIC PENSIC ISALES SEI EMP SEMPI MIX SGEN Total electric energy consumption Purchased electric energy consumption Base year total industrial sector sales Electric intensity State Industry Employment State employment index Fraction base year industrial sales breakdown Fraction self-generated Equations Initialize (t ~ 1): SEMPIt,j ~, EMPt,j/EMP1,j PENSIC1,j = MIXj x ISA/~ES TESIC1,j ~ PENSICi,j/(1 - SGEN1,j) Then for t · 1, TESICt,j =, SEMPIt,j x(SEIt,j/SEII,j) x TESIC1,j PENSICt,j = TESICt,j x (1 - SGENt,j) (5.1 (5.2 (5.3 (5.4 (5.5 - 62 - 6. OTHER ENERGY REQUIREMENTS The residential, commercial, and industrial sectors account for the bulk of energy consumption. The residual categories are street and highway lighting, transit systems, company use, losses, and sales for resale. Of these, the last item represents KWH sales to other electric utilities. Since we are interested in only demand for electricity on the utility system (not on itself), this category can be ignored. The category "losses" refers to electric energy lost in the trans- mission and distribution lines in the course of serving system customers. Utility "company use" is the energy consumed by the electric utilities themselves in business operations. These two categories -- losses and company use -- are accounted for in the model by a fraction of total sales (FP~LSt in Table 6.1). That is FP~LSt = Ii°sses and c°mpany usel total sales t Total sales includes, in addition to the three main sectors discussed in earlier sections, sales for transit systems and street and highway lighting. Total energy from the "other" sector is then derived from Equation 6.1. Yearly energy sales from the three main sectors are inputted from the respective sectoral models, base year data for "other" sales, losses and company use are readily available from utility records. Deviations from base year values are provided by Company forecasts .or can be independently estimated. Indices t Variables FRLSt SUMt OSALESt OTHENt Equation TABLE 6.1 OTHER ENERGY Year (base year = 1) Losses and company use as a fraction of total sales Sum of energy sales to residential, commercial .and industrial sectors Energy sold for street and highway lighting and railroads Energy sendouts in "other" category OTHENt = OSALESt + FRLSt × (SUMt + OSALESt) (6.1) - 63 - 7. PEAK POWER In the preceding sections, we have concentrated on the electrical energy forecasting model. Here, we shall turn instead to the method for translating these results into peak power demand forecasts ("demand" henceforth). Power, being the rate at whic!h energy is expended, will be expressed in units of 1000 KWh/hour or simply MW. In developing the systemwide peak power forecasts, one strives ideally to model the contributions of each end-6se category separately. Peak power forecasts which are based on gross load factor analysis (defined as average demand divided by peak demand) lose the ability to adequately track changes over time in the relationship between energy and peak due to differences in growth rates between the end-use categories and shifts in load pattern as a result, for example, of load management programs. While the current status of load data and research do not permit a completely disaggregated treatment, sufficient information exists to capture the primary effects. The approach adopted here analyzes peak power dema~-ds as the summation of the contributions of the various end-use categories at the time of the system summer and winter peak. Thus, the impact on peak of the end-use forecasts is treated explicitly, as are the effects of any forecasted shifts in usage pattern (resulting from time-of-use rate initiatives, direct control of equipment and so on). The computations are summarized in Table 7.1 The structure is rather straightforward. The forecasted annual energy requirements for the twenty-one consumption categories listed in Table 7.2 are multiplied by a "peak factor" to form the contribution of each to system peak. This is indicated in Eq. 1 where the peak contributions, unadjusted for possible future shifting of load patterns, are formed as the product of the peak factor and forecast annual energy consumption. The factor 8.76 (thousand hours in a year) is included so that the peak factor will be defined as the ratio of the end-use peak at time of the system peak divided by its average peak load over a year (recall that loads are expressed in MW and energies are expressed in GWh or 103 MWh). For nineteen of the peak factors, substantial data is available, and they are developed, exogenously (see S~¢. 8 for data discussion). Additionally, the "other energy" category which consists primarily of line losses may be computed via Eq. 7.2. The heat pump category requires special treatment. - 64 E S R G T~e coefficient of performance of heat pumps decreases with temperature. If the peak factors associated with resistance heating were used directly, underestimates of winter peak demand would result since more kwh of electrical input per kwh of heating output are required on colder days. This efficiency loss is reflected in Eq. 7.3 where the winter heat pump peak factors (summer heating peak factors are of course zero) are written as a factor times the corresponding resistance heat peak factor. These coefficient of performance correction factors (COPCR and COPCC for the residential and commercial sectors, respectively) are defined as the ratio of average to coldest day COP. The method and assumptions for estimating the corrections are discussed in detail in Sec. 8. For most categories, the temporal variation of use, and thus the peak factors, are fairly stable from year to year since they reflect statistical averages of behavioral patterns. For example, buildings use more electricity during business hours, lighting requirements vary regularly with season and hour, refrigerators respond systematically with annual temperature variations, and so forth. In addition to these basic peak factors, however, the model incorporates the option to include the impacts of load shifting and peak reduction impacts as well. These are represented by the peak reduction variables in Eq. 7.4 which are applied to the estimated un- adjusted peak demands. The ultimate level of peak reduction assumed is phased linearly from the starting and the attain- ment year which are also specified by the modeller. A number of load management options are thus available for consideration such as controlled water heaters, space heat storage, air conditioner cycling, time-of-use rate response, voltage reduction, etc. Finally, total summer and winter system peaks are calculated as the sum of the component contributions as shown in Eq. 7.5 and appropriately normalized to experienced base year peaks. - 65 E $ R G TABLE 7.1 PEAK POWER MODEL Indices Year (base year = 1) Season (l=sununer, 2=winter) End-use (see Table 7.2) Variables OTHEN E PKFAC PR UPEAK PEAK COPCR COPCC "Other" energy requirements, losses, etc. Annual energy consumption for end-use Contribution of end-use to peak Peak reduction/load control factor Total peak by end-use category, unadjusted for load shifting Total peak by end-use category, adjusted for load shifting System peak load COP correction factor -- residential COP correction factor -- commercial Equations Develop component peak contributions unadjusted shifting: for load UPEAKt,p,i .= ~[PKFACp,i × Et,i)/8.76 where 21 21 PKFACp,21 = 1t.76 × (~UPEAKL .)/(~ Ei) i=l u'P'~ i=l and the heat pump peak factors for residential and commercial sectors are: PKFAC2,13 ~ COPCR × PKFAC2,12 PKFAC2,17 = COPCC × PKFAC2,16 Adjust for peak reduction APEAKt,p,i ~ UPEAKt,p,i × Then 22 = ~APEAKt,n,i PEAKt,p i=1 = (1-PRt,p,i) (7.1) (7.2) (7.3 (7.4 (7°5 $ - 66 - G TABLE 7.2 END-USES USED IN PEAK POWER MODEL INDEX 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 SECTOR END-USE Residential Refrigerators " Freezers " Ranges " Lighting " Televisions " Clothes Dryers " Clothes Washers " Dish Washers " Water Heaters " Room A/C " Central A/C " Resistance Heating " Heat Pump Heating Auxiliary " Miscellaneous Commercial Resistance Heating " Heat Pump " Cooling " Lighting " Auxiliary and Power Industrial All Otlher Energy All - 67 - E S R 8. MODEL INPUTS AND FORECAST ASSUMPTIONS The demand forecast model previously described in this study defines electricity demand at the point of consumption. It provides a framework for mapping input data by defining base year experience, equipment ownership growth, technology and demographic shifts, and fuel switching onto a set of output results (system, sectoral, and end-use energy forecasts; and peak demands.) This section describes the data utilized and assumptions made in generating the High and Low Case forecasts of both energy and peak demand in the LILCO territory. The Base Case forecast is the mid-range of the High-Low band. These uncertainty bands in input parameters are intended to represent the plausible range of business-as-usual futures. The computer program that ESRG has developed to implement the model allows for flexibility in the choice of both inputs and outputs. The data explication below is intended to correspond closely with the model descriptions given in Chapters 3 through 7. The reader should be able to understand fully the basis for the forecasts reported in Chapter 1 with cross-referencing to the discussion of the mathematical structure of the appropriate sub-model. The base year, 1982, serves as the departure point for forecasting. 8.1 Energy Sales by Sector Details of 1982 electricity sales by sector were available in Refs. 1, 13, 15, and 17. These sales amounted to 12,519 GWH. Including losses and Company use, total energy requirements for the year amounted to 13,713 GWH. The present forecast seeks to normalize the 1982 energy requirements upward to partially counteract the effect of the recession year on sales. The Company's normalized summer peak of 3,070 MW (Ref. 1) and a representative load factor of .5115 (again Ref. 1) provided the basis for an adjusted energy figure of 13,756 GWH for 1982. Sales for each sector were increased by the ratio of this adjusted energy figure to the experienced 13,713 GWH. Experienced residential sales were 5,556 GWH. combined commercial and industrial sales were 6,525. These were divided into 5,324 GWH for commercial sector sales; and 1,201 GWH sales for manufacturing and mining customers (the ESRG industrial sector). Other sales, including street lighting, other public authorities, sales for resale to Rockville Centre and Freeport, and Long Island Railroad, amounted to 438 GWH in 1982. Each sectoral sales figure was revised upward by a factor of 1.0031 as described above. Table 8.1 provides these values. - 68 - E S R G TABLE 8.1 ADJUSTED LILCO SALES BY SECTOR~ 1982 Sector Sales (GWH) Residential 5,574 Commercial 5,340 Industrial 1,205 Other Sales 439 Total Sales 12,558 8.2 Residential Sector Here we will review the data inputs to the residential forecast model described in Chapter 3. Broadly, growth in the residential sector is a function of changes in customers (housing stock), appliance saturations, and patterns of unit energy usage of appliances. The following sections provide discussions of each of these factors. 8.2.1 Residential Customer Forecast Residential customer growth in a given service area derives from growth in population and/or changes in household formation patterns, where fewer persons per housing unit result in increased numbers of homes. While the two Long Island counties and Rockaway had experienced continuing population growth during the 1970's (Ref. 18), available data from LILCO research indicates a levelling and slight decline thus far in the 1980's (Ref. 19). While Suffolk County continues to grow modestly, Nassau County has experienced a counteracting decline. Figure 8.1 below is taken from the LILCO 1982 Population Survey (Ref. 19). None of the available forecasts for the region predicts zero population growth for the Nassau-Suffolk region. The two most recent region-specific population projetions available to the present forecasters are the preliminary population projections by the New York State Department of Commerce (Ref. 20) which will be subject to revisions due to an update of the migration assumptions, and the Nassau-Suffolk SMSA projections by the Bureau of Economic Analysis (Ref. 7). The Company's present population assumptions are not readily available from public documents. Table 8.2 provides a summary of the two forecasts mentioned above. - 69 - FIGURE 8.1 GROWTH 1.5 1.0 POPULATION (millions) OF NASSAU AND SUFFOLK COUNTIES FROM 1950 TO 1982 1960 1970 1980 1990 .5 0 1950 YEAR TABLE 8.2 COMPARISON OF POPULATION PROJECTION $OURCES~ LONG ISLAND Ref. Ratio to 1982 Population* Source No. Area 1985 1990 1995 2000 1) 1980 Bureau 7 Nassau- 1.018 1.028 1.019 1.010 of Economic Suffolk SMSA Analysis 2) New York 20 Nassau- 1.008 1.038 1.068 1.093 State Dept. Suffolk SMSA of Commerce (1983) * Intermediate years were interpolated where specific data was not given in source. Household size on Long Island differs distinctly from both national and statewide persons per household. LILCO estimates a 1982 value of 3.10 persons (Ref. 19), slightly less than the 3.16 Census estimate for 1980. This compares with 1980 Census values of 2.70 persons per household in New York State as a whole, and 2.75 p.p.h, nationally. The U.S. Census Bureau is presently re- vising its national projections of household size to include actual 1980 Census values in their data base. Given the difference between the historic regional and national household formation patterns, the accuracy of these figures is questionable. The present forecast of future households adopts the customer projections prepared by LILCO and provided in Ref. 1. These projections appear to be in line with recent experience in customer growth in the service area. If population in the region were to continue to decline, these household projections may be high over the full forecast period, but there are no present indicators of a major shift in the growth of households. Given the differentiated usage levels of many appliances between single and multifamily homes, the ESRG demand model requires that base year and projected residential customers be divided into housing type. While LILCO does not provide data by housing type in its saturation survey results (Ref. 1), reasonable estimates of present housing mix can be derived via comparison of 1980 housing mix by county (Ref. 25) with comparable 1970 Census data. These sources indicate that 80.9% of homes in the region - 71 E S R G were single family in 1980. They also indicate that the net effect of housing stock shifts between 1970 and 1980 in new homes built and old housing stock retirements was that 60% of the net housing added during the 1970s were single family. This statistic as well as LILCO's estimate of new homes added during the 1980s (Ref. 19) serve as a basis for a 1982 estimate of housing mix set at 80.5% single family and 19.5% other. The 1970s differential housing stock data also serves as a basis for projecting the mix of new homes in the forecast period. The High Case assumes a 65% single family, 35% multifamily split, while the Low Case assumes a continuing trend to 55% single family and 45% multifamily. Housing starts and permits data given in Ref. 40 indicate a stronger percentage of state-wide multifamily homes can be anticipated. However, since Long Island has historically lagged behind the state, these data were rejected. Based on the assumptions discussed above, the residential customer forecast is provided in Table 8.3. TABLE 8.3 RESIDENTIAL CUSTOMER FORECAST~ LONG ISLAND LIGHTING COMPANY (102 Units) 1982 1985 1990 1995 2000 Housing* Units Base Year High Low High Low High Low High Low Single- family 660.6 674.0 671.9 695.6 690 2 714.2 705.9 732.4 721.3 Multi- ' family 165.1 172.3 174.4 184.0 189.4 194.0 202.2 204.4 215.4 TOTAL 825.7 846.3 846.3 879.5 879.5 908.1 908.1 936.7 936.7 * Columns may not sum exactly due to rounding. 8.2.2 Appliance Saturation and Unit Usagm Appliance saturation assumptions are s~marized in Table 8.4. The table includes a growth parameter used to develop the S-shaped saturation logistics curves for each end-use. The end-uses not included in the table have predetermined saturation values. Lighting and miscellaneous are each fixed at 1.0, while heating auxiliary saturation is defined as 1.0 minus the electric space heat saturation. - 72 - E S R G The base year saturations are based on regressions on Company data given in the 1983 New York Power Pool Report (Ref. 1). Growth in appliance saturations are developed by calculating an index ("A") for each appliance using the logistic curve fitted to the historical appliance saturation data given in the same refe=ence. Terminal saturation levels are estimated by examining historical growth in saturations via the regressions, present levels, LILCO assumptions of future saturations, and the econometric relationships between appliance saturations and the energy price/income variables. Ref. 14 (pp. 6-1 to 6-12) and Ref. 23 (pp. 17-19, 32, 33) provide fuel-price elasticities which can be used to estimate appliance choice for many of the residential appliances, given energy price growth assumptions. In terms of price assumption inputs, the following growth rates were assumed in estimating terminal saturations: Electricity Natural Income Price Gas Price High 2% 0% 6% Low 1% 2% 4% Table 8.4 provides results of the appliance saturation analysis. TABLE 8.4 LILCO APPLIANCE SATURATION ASSUMPTIONS Base Year High Case Low Case Terminal Terminal Satura- Satura- Growth Satura- Growth Appliance tion tion Paramete~ tion Parameter' Refrigerator (SF) 1.22 1.22 0 1.22 0 Refrigerator (MF) 1.00 1.00 0 1.00 0 Freezer (SF) .37 .60 .023 .37 0 Freezer (MF) .09 .15 .015 .09 0 Range .47 .70 .016 .50 .076 Television (SF) 2.40 3.50 .043 3.00 .060 Television (MF) 1.10 1.50 .015 1.30 .025 Clothes Dryer .53 .90 .029 .53 0 Clothes Washer .86 .90 .067 .86 0 Dishwasher .52 .80 .005 .52 0 A/C Room 1o15 1.25 .162 1.15 0 A/C Central .13 .30 .075 .25 .084 - 73 - E S R G The demographic and saturation computations generate the number of electricity-consuming units. The model then requires input as to the use per unit KWH consumption. LILCO provides an analysis of residential appliance saturation and usage in the NYPP Report (Ref. 1) for future years except for refrigeration and freezer usages (for which a detailed analysis has been performed. Backcasted extrapola- tions of unit usage assumptions given by LILCO are the basis of the values given in Table 8.5. These usages, as well as efficiency improvements, are discussed in Section 8.2.5. Consumption levels for single-family and multifamily homes were adjusted to capture the effects of variations in the size of the living space and number of inhabitants. The averages were disaggregated over housing types based on the following typical SF-to-MF unit use relationships: 4 to 3 for refrigerators, freezers, and water heaters; 2 to 1 for central air conditioners, heating auxiliaries, and electric space heaters. The annual appliance usages based on the above estimates are given in Table 8.5. Table 8.5 provides the efficiency improvements assumed in the forecast runs, as well as base-year average unit usages. The basis for the latter efficiency is the FEA standards (Ref. 24), adjusted for improvements already incorporated in recent appliance stock vintages. The efficiency improvements employed are significantly less than those used by LILCO. Usage levels for televisions are described below; Section 8.2.5 provides usage assumptions for refrigerators. · The FEA program achievement data was 2980. The forecasts move these target dates back to 1984 and 1987 for the low and high estimates respectively. · Though not shown on the tables, decreases in hot water requirements have also been included at FEA-targeted levels (37% for clothes washers, 17% for dishwashers, with 1984 and 1987 phase-in dates for the Low and High Cases, respectively). Though such increased thermal efficiencies do not directly affect electrical consumption, they will impact indirectly on electric hot water requirements. · Energy reductions for televisions are not assumed to follow the targets; the forecasts assume no further improvement.* The present forecast assumes that this phase-out of tube-type models is complete for new units and no further efficiency improvement will be experienced. - 74 - £ s n o Efficiency improvements for air conditioners are based on an analysis of shipment data through the year 1981 (Ref. 34 for central A/C and Ref. 37 for room A/C) and the proposed DOE efficiency improvements for these appliances (Ref. 26). It is assumed that no further improvements will be made on new A/C appliances for the High Case; during the forecast, the average unit usage will improve to the level of models already on the market. Efficiency is projected to improve for the Low Case to the levels proposed in Ref. 26. Lighting Smaller family size, trend in housing mix toward smaller units, conservation induced by increasing prices, more efficient fluorescent bulbs and new lighting technology lead one to suspect that lighting energy demands are decreasing. Such major manufacturers as General Electric, sylvania, Westinghouse, Norelco, and Duro-Test are all involved in the development and marketing of higher efficiency light-bulbs, with typical energy savings in the range of 50-70%. We have made the cautious assumption that none of these demand decrementing factors or new products significantly impacts lighting levels for the higher-growth scenario. We have included a modest estimate of the impact of more efficient bulbs and energy decreasing factors for the Low Case. An energy reduction level of 50% is achievable for the more efficient bulbs currently on the market or in advanced development. In the Low Case, it is assumed that penetration levels reach 20% by the end of the forecast period, yielding an overall 10% reduction in lighting energy use. TABLE 8.5 RESIDENTIAL APPLIANCE USAGE AND EFFICIENCY IMPROVEMENTS Base-Year Average Forecast Percent Usage (KWH/Year) Energy Reduction Appliance SF Both MF High Low Eefrigerator 1440 1080 .05 .05 Freezer 1180 880 .05 .05 Range 690 .023 .023 Television 282 0 0 Clothes Dryer 970 .03 .03 Clothes Washer 87 0 0 Dishwasher 320 .14 .14 Water Heater 4200 3150 .09 .09 Room A/C 360 .07 .26 Central A/C 2970 1485 .12 .33 Electric Space Heat 10130 5065 0 0 Heating Auxiliary 500 250 0 0 Lighting 995 0 .10 - 75 - E S R G 8.2.3 Electric Space Heat and Water-Heating Penetrations The forecast of electric space heat (ESH), electric water heat (ESH), and heating auxiliary usages are treated differently from the other appliances. These usages are treated as penetrations, i.e., fractions of new housing units possessing the end-use. Table 8.6 provides the base-year saturations and assumed penetration rates of electric space heat for the LILCO service area. ESH penetration rates during the past ten years have averaged approximately 24%. The 1982 saturation was assumed to be 3.594 based on data in Ref. 1. On the basis of an historic two-to-three ratio of saturations between the two housing types, this value was split into single family and multifamily saturations. The High Case assumes a substantial increase in ESH penetration levels due to the potential of increasing costs of competitive home heating fuels and the desirability of using electric heat pumps as year round thermal conditioning devices. The Low Case assumes a levelling of growth in ESE based on its historic.penetration level and the likely strong increase in the relative price of electricity. In both cases, the initial penetration rate is assumed to approximate the 1981-82 penetration rate of 37%. Multifamily units are assumed to continue to experience higher penetration rates than single family units. The penetration of electric water heating customers is assumed to be tied to new space heat customers, resulting in equally high growth in EWH demand. The base year saturation of EWH was taken as 8.8% based upon a regression of historic saturations of this end-use (Ref. 1). Heating auxiliaries' saturation is taken to be the percent of residential customers which are not space heating customers. TABLE 8.6 LILCO ELECTRIC SPACE HEAT PENETRATION 1990 Rate of Housing Base-Year Initial Rate Penetration Units Saturation of Penetration High Low Single- family .032 .30 .50 .20 Multi- family .048 .45 .75 .30 8.2.4 Thermal Integrity Impacts The building envelope characteristics of a dwelling unit influence the heating and cooling load which is to be satisfied by heating and cooling systems. In terms of electricity consumption, significant impacts of building thermal integrity are on three temperature-sensitive end-uses: electric space heating, electrically driven auxiliaries (fans or pumps) associated with fossil heating systems, and air conditioning. - 76 the Naturally, other factors such as back-up systems, portable space heaters, solar, and wood heat influence the electricity consumed for these three end-uses. (See Section 8.2.5 below.) In addition, there are the efficiency factors associated with the conversion devices themselves (e.g., air conditioner and heat pump coefficients of performance). These other factors are treated separately and additively by the model. ESRG's HOMES model was used to estimate the impacts of thermal integrity improvements. This model performs heat loss calculations according to standard ASHRAE procedures (Ref. 39). The location specific thermal integrity data is based upon information from the Long Island jobs study (Ref. 45, Appendix B) and the state insulation surve~ (Ref. 46). For electrically space-heated homes, the available sources indicate that higher levels of insulation and thermal integrity will exist in newer structures. The present forecast assumes that electrically heated homes built during the forecast will use less electricity for heating than existing ESH homes, with the reductions being 10.6% for single family dwellings and 13.2% for multifamily dwellings. For fossil heated homes, we applied a reduction to the KWH usage of the electrical heating auxiliaries of fossil fuel heating systems. The comparative savings are substantial for new homes. Savings are set at 30.6% for single-family homes and 31.4% for multifamily units. These thermal integrity improvements are applied to new units. The model also calculates a gradual Smprovement in existing fossil and electrically heated homes. In principle, all homes remaining in the housing stock could be retrofitted to a level close to that of new units. In practice, it is necessary to make a judgement of the extent of retrofit activity during the forecast period. The existing housing stock was characterized by several different categories of thermal integrity. Of these, only those homes in the categories with inadequate thermal integrity are likely to invest in improvements. It is also true that many of the homes with inadequate insulation are likely to remain at their'present low levels. The assumption made in this forecast is that 50% of the existing single-family and 25% of multifamily homes are retrofit by the end of the forecast period. The retrofits reduce KWH usage by existing heating auxiliaries for fossil heated homes. This reduction was calculated to be approximately 11% for single units, phased in linearly from zero in the base year to the full fraction in the year 2000. The reduction is 6% for multifamily homes. No reduction was assumed for weatherization retrofit of existing ESH buildings. Using the prototypical units and thermal integrity levels from the above analysis, fractional reductions in air conditioner usage were also computed. The resultant fractional reductions are used as given in Table 8.7. - 77 - E S R G TABLE 8.7 THERMAL INTEGRITY CHARACTERISTICS~ LILCO AIR CONDITIONING Housing Units Single-family Multifamily Central A/C New Existing .025 .010 .032 .032 Room ~ A C New Existing .147 ! .o5o For further discussion of the assumptions and methodology upon which the thermal integrity improvements are based, see Appendix A in ESRG's The Conservation Alternative to the Power Plant at Shorehamf Long Island (Ref. 47). 8.2.5 Additional Data Requirements The basic model structure utilizes base-year and forecast counts of residential customers, saturations of the various end-uses, and usage per unit to derive sectoral energy demand. However, there are a number of additional factors peculiar to some appliance types which influence usage and thus overall demand. The following is a brief discussion of each of these factors, by end-use. Refrigerators and Freezers Due to the introduction of frost-free appliances in the 1960s and 1970s, followed by the rapid improvement in efficiency levels of new appliances during the mid-1970s to the present, the Submodels for residential refrigerators and freezers require additional inputs to capture the complex unit usage characteristics. The methodology used for both appliances establishes the unit usage of new appliances at a point in one average lifetime before the base year (UNOLD), the unit usage of new appliances in the year (YRMAX) of maximum usage (UNMAX) due to the phase-in of the automatic defrost feature, and the unit usage of new units in the base year (UNNEWT). Using these values, an annual average usage of appliance units on-line in the base year (UNAVBS) is then calculated as a weighted average of the usages of the different vintage units. Values for the representative size of 1962 vintage refrigerators, the percent of new units featuring automatic defrost, and the relative usage of these units and standard refrigerators are derived from analyses provided in Refs. 28 and 30. Recent research (Ref. 21) provides typical unit size and usage for 1975, which is set as the YRMAX. These data are corroborated by Ref. 28.) For new units in 1982, research by the Association of Home Appliance Manufacturers (AHAM, Ref. 22) cites an average 58% improvement in refrigerator efficiency between 1972 and 1981. Given estimated unit usages in 1975, a 35% reduction in usage levels of new units was calculated by 1982. (This estimate is supported by the analysis in Ref. 21.) The values for the refrigerator variables defined above are given as: - 78 - E $ R O UNOLD UNMAX UNNEWT UNAVBS YRMAX KWH/YR. 1040 1610 1050 1330 1975 These values were the basis for inputs into the Base Case runs for LILCO, with one revision: these usage levels were recast in terms of units in single family and multifamily homes on a 4 to 3 ratio. The same methodology was applied to freezer usage level as for refrigerators, and the same sources (Refs. 28, 30, 21, 22) provide parallel analyses. The values established are as follows: UNOLD UNMAX UNNEWT UNAVBS YRMAX KWH/YR. 860 1440 890 1150 1975 Electric Ranges The electric range submodel requires input data to simulate the effects of microwave oven penetration. There are two inputs: what fraction have microwaves and what is the effect of those that do on energy use? Field studies cited in Ref. 32, p. G-23 indicate that electric ranges with microwave ovens require 84% of the electric energy which would otherwise be consumed. An energy demand factor is thus set at 0.84 in the forecasts. Historic LILCO saturations (Ref. 1) yield a 1982 value of 8.2% fraction of range saturation. The New York Power Pool Report (Ref. 1) also provides est/mates by LILCO of future microwave saturations. ESRG adopted these values forJthe present forecast. Both High and Low Cases were set at 11.3% in 1985 and 24.1% by 1995. Televisions The television submodel requires two additional items of data. One item is the decreased use factor for adjusting the unit energy requirements for second and third televisions. Estimates in the literature vary widely. LILCO estimates that second units usages are 75% of primary set usages. The present forecast incorporates a moderately high estimate of 50%. The second item is the mix between black-and-white sets and color sets in future television sales. Based on historic residential appliance saturations of LILCO (Ref. 1), the model uses an estimate of 39% for the base-year fraction of black-and-white sets. The forecast uses broad-ranging inputs in assuming that black-and-white TV phases to 6% of units (a LILCO assumption, Ref. 1) for a high-growth scenario, and r-mains constant in the low-growth scenario. - 79 - ~ S R G Water Heaters In addition to the assumptions already discussed, the electric water heater submodel requires some additional data inputs. The first characterizes the change in home hot water requirements for end-uses other than dishwashers and clothes washers. (These are discussed above.) This factor is capable of reflecting the effects of slow-flow shower devices and energy-conserving faucets. Such plumbing fixtures can up to 25% of energy for hot water. In the High Case, we assume no move to such fixtures. In the Low Case, we project an ultimate market factor of 25% for an energy savings of 9% (.35 x .25). The model phases up to these full savings over a 20-year period beginning in 1982. The other inputs concern the range of likely impact of alternative technologies such as solar-assisted hot water, storage, and heat-pump hot water. The LILCO forecast projects substantial growth in these hot water technologies through 1999 (Ref. 1). The New York State Energy Office also projects clear growth in solar-assisted water heating (Ref. 38). ESRG has included moderate penetrations of solar water heaters. In the Low Case, we assume 5% of new electric water heat takes the form of the above technologies. In the High Case, where strong penetrations of electric water heating are projected, 30% of new water heating is assumed to be solar over the forecast. The electrical energy usage needed for backup of solar water can vary regionally. Estimates used by other electric utilities nationally vary from 25-75% of energy provided by solar; the remainder by electrical back-up. The present forecast incorporates a value of 46% solar/54% 'electrical as the energy mix based on LILCO assumptions in Ref. 1. Electric Space Heat There are a number of space heating-related elements in the submodel that need to be specified in reference to solar, heat-pump penetration and performance, and supplemental wood heating. These will be discussed in turn. While solar-assist features should make some inroads into the water heating market, the economics and reliability of solar energy does not tend to imply the same level of penetration in the space-heating market. For the High Case, it is again assumed that solar energy will not make an appreciable impact in the forecast period. The Low Case assumes that by the year 2002, 5% of new ESH penetration in single family homes and 10% of multifamily homes, will have solar assist and/or storage features that will decrease electric energy use 50%. - 80 - Areview of LILCO's projected appliance saturations in Ref. 1 underscores the assumption that heat pumps will provide a substantial contribution to the growth of electric space heating in the service area. Given that LILCO does not provide estimates of the penetration to date of heat pump technology in the space heating market, data for the Nassau-Suffolk SMSA was taken as an indicator for the region (Ref. 49). The fraction of existing ESH assumed to be heat pump was taken as 15% in 1982, with the initial penetration rate of heat pump as a fraction of new ESH also set at 15%. The High Case, predicated on assumptions of strong ESH penetrations, assumes that the fraction of new space heat units that are heat pumps will grow to 75% by the year 2000. The Low Case assumes a heat pump fraction of 25% by the year 1992. Heat-pump coefficient of performance (COP) is defined as the ratio of KWH heating .output to KWH electricity input (for operating the compressor and fans). Data on unitary air-to-air heat pumps is taken from an evaluation performed at Argonne National Laboratory (Ref. 16) for typical models. We have assumed capacities of approximately three tons and fifteen tons for the residential and commercial sectors, respectively. COP varies both with size and outdoor temperature. The model requires average and low temperature values in order to estimate average COP over the heating season in forecasting energy, and the lower COP operating at the lower temperatures of the winter peak. calculation based on Long Island temperature data (Ref. 42) produced the following COPs: A Residential Commercial Average (for energy) Low (for peak) 2.24 2.50 1.75 1.85 As with other appliances, efficiency improvements are anticipated for heat pumps. The forecast assumes an improvement of 10% by the year 2005 for the High Case and an improvement of 20% in the Low Case. Wood Heating The ESRG electric space heat and heating auxiliary modules incorporate the effect of wood heat penetration on electricity use. The model treats separately electric space heating customers, deducting the electricity supplanted by wood usage, and customers using other fuels via a reduction in usage for heating auxiliaries. Each module uses two data points in time: the base year, and 1990 (with post-1990 being held at the level attained by 1990). In ESH, retrofit and new are treated separately. Retrofit grows from base year levels of usage to 1990 levels linearly. New ESH residences are assigned a wood heat usage level which remains constant through the forecast period. - 81 - E $ R G The fractional savings attributable to wood heat for ESH customers is the product of 1) saturation within electric space heat and 2) the average percentage saved via wood heat usage. The Company does not elicit information on saturations of wood space heating in their appliance surveys (Ref. 1) and there is no evidence of a strong potential in this area. The present forecast assumes that there is negligible wood heat now and, in the High Case, there will be no growth in wood heating in the future. On the basis of the wood heat analysis given in the New York State Master Plan (Ref. 38), the Low Case assumes a moderate penetration. By 1990, a wood heat fraction of 2% is used for existing housing stock. New homes are assumed to include no wood heat. Miscellaneous Usage There are a number of structural factors contributing to the moderation of the historic: growth in miscellaneous appliance usage: · decreasing population per household · approach to market saturation · increased efficiencies · price-induced conservation · substitutional effects (e.~., small kitchen appliances precluding use of others) Consequently, miscellaneous use per customer has not been increasing rapidly in recent years. LILCO's analysis of residential appliance usage (provided in Ref. 1) shows expected increases in small appliances other than base use appliances. The present forecasts assume an increase for the high range in miscellaneous use per customer of 100%, phased in linearly over twenty years, while the Low Case is held constant. 8.2.6 Appliance Lifetimes Actual appliance lifetimes have been used rather than the commonly employed United States Department of Agriculture figures for average year of appliance possession by the first owner. - 82 - £ S R G TABLE 8.8* APPLIANCE LIFETIMES IN YEARS Appliance Lifetime Refrigerator Freezer Range Lighting Television Clothes Dryer Clothes Washer Dishwasher Water Heater Room A/C Central A/C Space Heat Heating Auxiliary Miscellaneous 2O 24.9 16.9 NA** 14.7 15.3 12.3 13.5 10 11 11 NA NA NA * Source: Ref. 44, Appendix A-13. ** NA = Not applicable. 8.3 Commercial Sector Data Inputs The following discussion of commercial forecast input assumptions parallels the model description in Chapter 4. The base-year commercial sales figure was 5236 GWH, as described in Section 8.1. The ESRG demand submodel for the commercial sector includes beth small and large energy consuming commercial customers not involved in the manufacturing or mining industries. As such, the non- manufacturing industrial sales reported under other sectoral headings by LILCO are included in ESRG's commercial sales figure. 8.3.1 1975 Floorspace Estimates of the 1975 Long Island Lighting Company service territory commercial floorspace are needed as input to the commercial energy submodel. Sec. 4.2.1 provides a description of the basic calculation method. The calculated values have been adjusted via LILCO data on sales by building type. Estimates of the LILCO service area 1975 commercial floorspace by category are given in Table 8.9. - 83 - E S R G TABLE 8.9 1975 COMMERCIAL FLOORSPACEf LILCO SERVICE A~RA 1975 Floorspace Commercial Category (106 ft.2) F.I.R.E. 12.510 Federal Government 8.669 State/Local Government 39.597 Professional Services 5.122 Wholesale and Retail 62.154 Trucking and Warehousing 3.940 Other Transportation 6.009 Cc~ununications 1.842 Lodging and Personal Services 7.092 Business and Repair Services 13.002 Amusement and Recreation 13.987 Railroad .690 Health Services 8.077 Schools and Education 52.501 8.3.2 Floorspace Growth Indicesf High Case Employment growth is used as the proxy for floorspace growth in the first twelve commercial categories. Health and hospital floorspace is projected to increase with population growth, while school and educational floorspace is trended on the basis of school-age population projections. In the High Case, the basis of these-growth projections is the employment and customer projections provided by LILCO in the 1983 New York Power Pool Report (Ref. 1, pg. 144), with 1975 backcast linearly. High Case population growth is based on the projections for the Nassau-Suffolk SMSA by the New York State Department of Commerce (Ref. 20), as are the school-age population projections. High Case commercial growth ratios are provided in Table 8.10. TABLE 8.10 HIGH CASE COMMERCIAL GROWTH INDICES~ LONG ISLAND Commercial Category Finance, Insurance, Federal Government State/Local Government Professional Services Wholesale and Retail Trucking and Warehousing' Other Transportation Communications Lodging and Personal Services Business and Repair Services Amusement and Recreation Railroad Transportation Health/Hospitals Education/Schools 1985 + 2000 1975 1975 and Real Estate 1.576 2.563 1. 063 1. 243 1.063 1.243 1. 291 1. 805 1.221 1.566 1.208 1.521 1.208 1.521 1.208 1.521 1.291 1.805 1.291 1.805 1.291 1.805 1.208 1.521 1.023 1.109 .765 .742 ~; S - 84 -R G 8.3.3 Floorspace Growth Indices~ Low Cas~ Commercial floorspace growth indices for the Low Case are based on OBERS employment and population projections for the Nassau-Suffolk SMSA done by BEA (Ref. 7). Table 8.11 summarizes the growth factors based on these state agency forecasts. TABLE 8.11 LOW CASE COMMERCIAL GROWTH INDICES~ LONG ISLAND Commercial Category Finance, Insurance, Federal Government State/Local Government Professional Services Wholesale and Retail Trucking and Warehousing Other Transportation Communications Lodging and Personal Services Business and Repair Services Amusement and Recreation Railroad Transport. Health/Hospitals Education/Schools 1985 + 2000 1975 1975 and Real Estate 1.493 1.592 1.177 1.253 1.097 1.050 1. 325 1. 451 1.182 1.171 1. 218 1. 208 1. 218 1. 208 1. 218 1. 208 1. 325 1. 451 1. 325 1. 451 1. 325 1. 451 1. 218 1. 208 1.066 1.058 .882 .921 The above assumptions for floorspace growth yield total esti- mates of commercial floorspace in future years. However, the mix of existing/new buildings changes over time also. The forecast decreases existing stock at annual rates taken from regional retirement rates given in Ref. 8. These retirement rates are: Building TyDe Retirement Rate (%/Year) Offices .647 Retail .647 Hospitals .648 Schools .757 Other .611 - 85 - E S R G 8.3.4 Electric Intensities and Saturation Electric intensity estimates are required to initialize the commercial sector energy growth calculation. Given our 1975 commercial estimates, we developed overall energy intensities (KWH/ft.2/year). The intensities appropriate to building type and end-use were developed by prorated Northeastern regional electric use coefficients from Ref. 8 with weather-sensitive usage scaled, as appropriate, by heating and cooling degree days. Weighted values for degree days were developed using Long Island weather station data from Ref. 42; the calculated value for heating degree days was 5415, and for cooling, 740. The resulting coefficients are shown in Table 8.12 for both the existing 1975 stock and prototypical new floorspace. Cc~unercial ESH saturations appear to follow residential saturations, with some lag. On this basis 1975 ESH saturation was estimated at 2.4%. Commercial floorspace air-conditioning saturation was estimated to average approximately 80%, with hospitals set higher and retail and schools set lower for 1975. Future ESH saturations in new buildings were estimated in the High Case to grow from 20% starting in 1975 to 40% by the year 2000; in the Low Case comparable estimates are 10% and 20% respectively. In terms of retrofit of existing floorspace, the High Case assumes that ESH saturation reaches 12% by 2000; the Low Case assumes 8%. Cc~unercial air conditioning is projected to reach 100% for all new buildings by the year 2000 in the High Case. The Low Case assumes air conditioning of new buildings will follow established saturation levels in existing buildings, i.e., approximately 80% of new buildings will be cooled. The High Case also assumes that all existing building stock (except educational buildings) will be retrofitted to air conditioning by the year 2000; the Low Case maintains present levels. TABLE 8.12 COMMERCIAL ELECTRIC USE COEFFICIENTSt LILCO (KWH/YEAR/Ft.&) Existing New Aux. Aux. Building Heat- and Heat- and Type lng Coolin~ Lightinq Power lng Cooling Lightin¢ Power Office 9.01 5.94 7.00 5.30 12.77 4.13 7.00 4.40 Retail 4.06 6.72 ].8.20 6.40 6.34 4.52 18.20 5.90 Hospital 9.60 7.62 ].7.60 9.40 15.64 3.49 17.60 8.80 Schools 8.12 5.04 7.60 4.40 11.58 3.49 7.60 3.50 Other 4.65 6.72 10.00 6.40 6.93 2.58 10.00 5.90 - 86 - E $ R 8.3.5 Future Commercial Intensities and Saturations The methodology for incorporating future adjustments to electrical intensities penetrates the conservation levels based on the application of a payback analysis to S-shaped market-acceptance curves. These are logistic curves which are defined in terms of 50% acceptance levels; i.e., for a given payback period (appropriate for a typical mix of owners of a given type of building) the conservation option would be economically acceptable to 50% of the building owners. If the payback period is shorter, the acceptance is proportionally greater; if longer, the acceptance is less. The payback period is analyzed for the marginal costs of moving to the next incremental level of conservation technologies (see Section 4.3.2). Table 8.13 shows the 50% acceptance values used for the acceptance curves. TABLE 8.13' YEARS PAYBACK FOR 50% ACCEPTANCE Building Type Office Retail Hospital School Other Retrofit 3.7 2.6 3.5 4.0 2.6 New 3.7 2.8 4.0 4.0 2.8 * Source: Ref. 8. The savings and costs are based on the electrical intensities and reductions (discussed previously), the conservation costs (Ref. 6), and the future price assumptions for electricity technology and fossil fuels saved. These prices are shown in the following table, oil is projected to experience zero real price growth in the Low Case. Regional natural gas prices are assumed to grow at a real increase of 1% per year, while electricity is projected to experience a 2% annual real growth. Further, the High Case conservatively assumes no conservation technology penetration in the commercial sector over the forecast period. - 87 - TABLE 8.14 FUTURE ENERGY PRICE ASSUMPTIONS (COMMERCIAL SECTOR)r LOW CASE 1985 2000 Fossil Fuel (1982 $/MMBTU) 7.19 7.52 Electricity (1982 ,C/KWH) 10.40 14.00 The derived penetrations used only in the Low Case are shown in Table 8.15. Note that separate penetration matrices are developed for the electric space heat end-use. The values in the table are fractions of floorspace ,at these conservation levels. When the sum is less than one, the remainder has no conservation above base year levels. TABLE 8.15 LOW CASE CONSERVATION LEVEL PENETRATIONSr LILCO Electric S)ace Heat Other End-Uses Existing New Existing New Building Year Type Level 1 2 3 1 2 3 1 2 3 1 2 3 Office .11 .41 .3~ .12 .79 .04 .11 .38 .36 .16 .77 .01 Retail 0 .84 0 .09 .66 .2~ 0 .85 0 .10 .69 .15 1985 Hospitals .20 .44 .2f .09 .67 .21 .21 .44 .26 .15 .81 .01 Schools .20 .01 .6S .19 .72 .06 .18 .62 .76 .27 .69 01 Other .25 .05 .34 .40 .55 02 .25 .14 .36 .58 .36 0 Office .07 .29 .55 .08 .73 .16 .07 .31 .53 .11 .80 .05 Retail 0 .89 0 .06 .50 .4G 0 .90 0 .07 .56 .33 2000 Hospitals .13 .33 .47 .06 .51 .42 .15 .33 .46 .10 .82 .05 Schools .13 .01 .8fl .12 .66 .2G .13 .01 .80 .19 .74 .04 Other .17 .12 .54 .26 .63 .08 .17 .12 .53 .43 .51 .02 - 88 - Finally, an additional factor is introduced into the model to capture the potential increase in energy use intensity (KWH/ft.2) of commercial sites due to the market penetration of computers, copying machines, word processors, etc. This factor increases the electrical intensity of the auxiliary and power end-use category in the High Case by 50%, phased in linearly from 1975 to the year 2000. 8.4 Industrial Data Inputs The industrial sector model is described in Chapter 5. There are three kinds of data requirements: base year experience, production growth and electric intensity. The following sections describe industrial forecast submodule inputs. 8.4.1 Base Year Experience The figure for total industrial base year sales (1204.9 GWH) was discussed in Section 8.1. This figure is taken to represent normalized sales to the manufacturing and mining sectors. The mix of industrial sales was taken from LILCO's EEI Uniform Statistical Report (Ref. 17) for 1981.. Sales by Industrial SIC are expressed as a fraction of total industrial sales in Table 8.16. TABLE 8.16 LILCO INDUSTRIAL SALRS MIX SIC Fraction of Sales 20 1 .048 22 2 .018 23 3 .013 24 4 .006 25 5 .013 26 6 .039 27 7 .075 28 8 .048 29 9 .004 30 15 .047 31 16 .003 32 17 .009 33 10 .034 34 11 .061 35 12 .101 36 13 .212 37 14 .146 38 18 .098 21,39,Mining 19 .028 * j = ESRG Index (see Table 5.1). 4- Customers with demands below 30 KW. - 89 - 8.4.2 Employment Growth The model requires growth estimates of "State Employment Indices." These growth assumptions are summarized in Table 8.17. They give employment levels relative to the base year 1982 (base year = 1) for two future years, 1985 and 1990. The growth in industrial employment was selected in conjunction with growth in commercial sector employment; the Low Case was based on 1980 OBERS employment projections by the Bureau of Economic Analysis (Ref. 7). The High Case is based on New York State Division of the Budget projections (Ref. 43), which run from 1982 to 1985, extrapolated out to 1990. TABLE 8.17 LILCO EMPLOYMENT GROWTH* BY STANDARD INDUSTRIAL CLASSIFICATION EMPL 1985/EMPL 1982 EMPL 1990/EMPL 1982 SIC HIGH LOW HIGH LOW 20 1.002 1.002 1.006 .965 22 .950 .970 .862 .874 23 .997 1.013 .992 .969 24 1.026 .998 1.070 .959 25 1.026 1.008 1.070 .977 26 1.002 1.012 1.006 .960 27 1.022 1.029 1.058 ~.036 28 .981 1.012 .948 .958 29 1.044 1.064 1.117 1.133 30 1.044 1.070 1.117 1.138 31 1.044 .948 1.117 .848 32 1.015 1.008 1.039 .981 33 .976 1.011 .934 1.005 34 1.011 1.008 1.029 .948 35 1.001 1.059 1.002 1.113 36 1.028 1.041 1.075 1.032 37 .921 1.009 .791 .980 38 1.057 1.037 1.153 1.033 21~39~ Mininq .975** 1.033 .933** .970 * Employment growth is measured by State (SIC) Employment Index (SEMP1) defined as SIC employment in a forecast year divided by employment in the base year. **Category grown at SIC 39 rates. - 90 - F. S R G 8.4.3 Electric Energy Intensity Growth in sales to manufacturing and mining concerns may result from an increase in the level of activity within the industry, but also can result from changes in the energy use characteristics of that industry. Electric energy intensities are designed to capture these changing usage patterns. Industrial electric intensity is defined as the consumption of electricity per employee by two-digit manufacturing SIC. Changes in electrical intensity are incorporated in the energy forecast. The electrical intensities (electricity per employee) are estimated by applying multiple regression analysis to the historical data, using an exponential equation. The independent variables of productivity, price and time are tested, with the best equation then selected for the forecast. The general form of the equation is: INTENSITY = C x PRODUCTIVITyA1 x PRICEA2 x eA3 x TIME Equations are fitted separately for each SIC. Historic manufacturing data are taken from Census of Manufactur~ and Survey of Manufactures documents (Refs. 5 and 12). Table 8.18 shows the regressions selected for each SIC. For SIC 29, where specific data for the State of New York were inadequate, national values were analyzed and substituted. In this study, productivity rather than time was found to be the preferred explanatory independent variable for most industries. The future value of productivity for each SIC is estimated, using a linear relationship: PRODUCTIVITY ~ A1 + A2 x TIME Productivity is defined as product per employee, where product is the sum of the value added and the cost of materials. - 91 - TABLE 8.18 ELECTRICAL INTENSITY REGRESSION RESULTS~ NEW YORK Industrial Productivity Price Time SIC Coefficient Coefficient* Coefficient R-Square 20 2.156 .809 22 2.161 - .63 .780 23 2.323 - .84 .891 24 - .26 .0765 .846 25 1.005 - .75 .632 26 2.319 - .48 .874 27 -1.09 .0763 .907 28 .750 - .20 .916 29+ 1.603 - .53 .914 30 2.375 - .26 .792 31 - .97 .0464 .954 32 3.048 .676 33 1.194 .796 34 3.060 .641 35 1.668 .884 36 2.644 - .26 .882 37 1.429 - .26 .880 38 .904 -1.04 .796 39 1.224 -.46 .824 * Since the function is exponential, the Price Coefficient is the "price elasticity." The elasticity values utilized estimates from national cross-sectional data for SIC's 22, 24, 26, 29, 30, 36, 37, while empirical N.Y. State values were used for SIC's 23, 25, 27, 28, 31, 38, 39. + Regression based on national data; state data incomplete or regression results not significant. Two productivity trends are developed for each SIC; one based on data going back to the 1960's, and another based only on data from the 1970's. Neither long nor short term trends consistently yield the higher growth ratios. Subsequent decisions as to High and Low Case industrial intensity growth were dependent on which trend was the higher of the two. Table 8.19 contains the derived productivity growth rates. - 92 - E S R G TABLE 8.19 PRODUCTIVITY TREND RESULTS~ 1982-1990 NEW YORK Industrial Growth Rate (%/Year) SIC Long Trend Short Trend 20 2.12 2.41 22 1.51 23 2.20 1.90 25 1.51 1.52 26 1.67 1.54 28 1.97 .03 29* 2.25 2.08 30 1.72 1.07 32 .87 .13 33 1.73 2.07 34 .72 -1.59 35 1.53 36 1.30 .26 37 2.24 1.78 38 2.58 2.36 39 1.97 1.45 * Based on national data. Finally, an "energy intensity index" for 1990 (where 1982 = 1) is obtained for each SIC using the desired regression coefficients and appropriate values for the explanatory variables. Where price is found to be a significant explanatory variable, annual real 1982-1990 growth rates for industrial electricity prices of 2% in the Low Case and zero real growth in the High Case were used to project energy intensity indices. High and Low Case intensities were selected, on the basis of high and low outputs from the produc- tivity trends' input into the intensity equations. Table 8.20 provides the intensity grdwth factors used in the present forecast. - 93 - TABLE 8.20 1990 PROJECTED STATE ENERGY INTENSITY INDEXr NEW YORK (1982 = 1.00) SIC High Case Low Case 20 1.331 1.285 22 1.295 1.000 23 1.497 1.242 24 1.844 1.770 25 1.129 1.002 26 1.361 1.231 27 1.841 1.548 28 1.124 1.000 2!) 1.330 1.197 30 1.383 1.174' 31 1.449 1.243 32 1.235 1.032 313 1.216 1.178 34 1.191 1.000 35 1.224 1.000 38 1.315 1.013 37 1.288 1.174 38 1.202 1.004 39,21, Mining %.127 1.042 8.4.4 Fraction of Electricity Self-Generated Escalating costs of electricity and favorable governmental actions have stimulated an increased interest in cogeneration by many industrial and commercial decision-makers. According to the 1982 New York State Master Plan (Ref. 48), there are presently a number of industrial/commercial sites on Long Island that generate electricity. That same document indicated a number of additional sites for potential cogeneration on Long Island contributing electricity to both industrial and commercial sectors. In spite of these potentials, the status of future cogeneration and its contribution to electricity supply in the state remains unclear. The present forecast conservatively assumes no new contribution from self-generation during the forecast period, in either High or Low Case inputs. 8.5 Other Energy Requirements Sales to customers other than those in the three major service sectors include: street lighting sales, sales for resale (Rockville Centre and Freeport), public authorities, and LIRR sales. Separately - 94 - E S R G the 1982 sales figures for these four subclasses were 182, 14, 62, and 180 GWH respectively, summing to 438 GWH (Refs. 1, 13). LILCO forecasts each category separately in Ref. 1. The ESRG forecast uses these forecasts, extrapolating linearly to the year 2000, rather than preparing an independent forecast. (See Section 8.1 for a discussion of normalization of base year energy.) The other required input datum is line losses and the own-use of Long Island Lighting Company. LILCO uses this category to include sales for electric vehicles in their Ref. 1 forecast. Based on the NYPP report (Ref. 1), the 1982 fraction was set at .095. Following LILCO's assumptions on losses, own-use, and electrical vehicles, the High Case increases this fraction to .103 by 1999. In the Low Case, LILCO's assumptions on losses and own use are endorsed but electrical vehicles are not assumed to make the High Case contribution, resulting in a fraction of .096. 8.6 Peak Power Model The peak power part of the model is driven by end-use energy outputs from the other submodels with the exception of two kinds of data= (1) the end-use profile of base year peak and (2) forecasts of load management impact. These will be discussed in turn. 8.6.1 Peak Load Data The 1982 s~mmer peak for LILCO was 30?0 MW (megawatts), weather-normalized on July 19, 1982. The winter peak for 1982-83 was 2471 MW, occurring on January 19, 1983. The system peak is the sum of the end-use contributions to peak. There are two sets of load data require~ for the peak demand simulation= the contributions of each end-use to su-~er peak and to winter peak. The peak submodel utilizes a peak factor multiplier (PKFAC) which is the reciprocal of the coincident load factor of that end-use, and which derives the peak contribution of that end-use from the annual energy de,and of that end-use. Peak factors used in su~er and winter peak calculations differ. An analysis of residential and commercial/industrial end-use contributions to peak was provided by LILCO in Ref. 1. These data served as the bases for the development of the peak factors in Table 8.21. Peak factors for the industrial sector were initially devised base~ upon the NEPOOL analysis of peak contribution by SIC (Refs. 32 and 35) and ASHR~ design temperatures for Long Island (Ref. 39). The resulting peak factors are shown in Table 8.21. - 95 - E S R G TABLE 8.21 PEAK MULTIPLIER FACTORS (PKFAC) - LILCO Sector End-Use S-.~er PKFAC Winter PKFAC Residential Refrigerators .870 .871 Freezers 1.102 .883 Ranges 8.113 9.203 Lighting 1.136 2.274 T.V. 1.586 3.174 Clothes Dryers 1,370 1.143 Clothes Washers 2.156 1.705 Dish Washers 2.453 2.455 Water Heaters .754 .830 Room Air Conditioners 10.543 0 .Central Air Conditioners 6.336 0 Space Heating 0 5.264 Heating Auxiliaries 0 1.491 Miscellaneous 2.920 1.697 C~mercial Heating 0 4.672 Cooling 4.563 0 Lighting 1.656 1.722 Auxiliary & Power .811 1.611 Industrial Ail 1.197 1.134 8.6.2 Load Management Impact Additional data requirements for the peak submodel relate to the impact of load management during the forecast period. This is introduced by means of peak reduction factors which scale down the end-use contributions to peak. While LILCO provides discussions of rate policies and load management strategies designed to reduce peak growth in their forecast (Ref. 1), the peak analysis given in Tables 23 and 24 of the same document show no load reduction in the residential sector and a 36 MW reduction in the c~nmercial/industrial sector by the year 1999. The present forecast incorporates only the reductions indicated by LILCO for use in creating peak reduction factors of .022 in these two sectors, while additional load management may be a desirable option for this service area, no clear cut plan presently exists. - 96 - E $ R CS REFERENCES Report of Member Electric Syst~ of the New York Power Pool and the ESEERCO Long Range Planf 1983 pursuant to Section 5-112 of the Energy Law of New York State, April 1, 1983. General Electric, C~_~ercial Sector Energy Consumption, Data Base Development Pro~ect, for United States Department of Energy, June, 1978. Jackson, J. et al., Commercial Energy Use= A Disaggregation by Fuel, ~Type _an~ End-Use, Oak Ridge National Laboratory, O---~/CON-14, February 1978. , The Cc~ercial Demand for Energy= ~ Disaggregated Approach, ORNL/CON-15, April 1978. United States Bureau of the Census, Census of Manufactures and Annual Survey of Manufacturest "Statistics fo--r States,' 1963 to 1978. Carhart, S. et al., Th__eBrookhaven Buildin~Energ¥ Conservation Optimization Mo~el, Brookhaven National Laboratory, Formal Report, January 1978. United States Department of C~erce, Bureau of Economic Analysis. OBERS Pro~ections of Economic Activity in the United States, Tape #1= Total United States and 51 States, 1981, and Tape ~3 SMSA's. Glesk, M., et al., Residential/Co~mercial Market for Energy Technologies, prepared for Department of Energy by Arthur D. Little, Inc., C-790470-03, August 1979. 9. United States Bureau of the Census, County Business Patternst New York State, 1975. 10. Ide, Edward, et al., Estimating Land and Floor Area Implicit in Employment Pro~ectionsf NTIS %PB200-069, for US DPt, July 1970. 11. United States Bureau of the Budget, SIC Classification Manual, 1967. 12. United States Bureau of the Census, Survey o__f Manufactures and Census of Manufacturest 'Fuels and Electric Energy Consumed' 1963 to 1980. 13. Long Island Lighting Cempany, Annual Report t__o Stockholders, 1982. - 97 - E S R G 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. Data Resources, Inc., The Residential Demand for Energy, EPRI Report EA 235, Vol. I, January 1977. Long Island Lighting Company, Annual Report o__f LILCO to the State o__f New York Public Service C~ission~ Form 182, for the year ended December 31, 1982. Christian, J., ~ Air-to-Air Heat Pumps, Argonne National Laboratory, ANL/CES/TE 77-10, July 1977. Long Island Lighting Company, Edison Electric Institute Uniform Statistical Report - Year Ended December 31, 1982; April 1983. United States Bureau of the Census, General Population Character- istics~ New York, 1980 Census of Population, PC 80-1-B34, 1982. Long Island Lighting Company, Population Survey 1982, Current Estimates for Nassau and Suffolk County. New York State Department of Co~erce, Preliminary Official Population Pro~ections~ March, 1983. David B. Goldstein, Efficient Refrigerators; Market Availability an__d Potential Savings (Revised), National Resources Defense Council, 1982. Association of Home Appliance Manufacturers, Appliance Letter, July-September 1981. Hirst, E. et al., Fuel Choices in the Household Secto__r, Oak Ridge National Laboratory, 0~~, october 1976. FEA Efficiency Improvement Targets, Federal Register, vol. 43, No. 70, April 11, 1978. United States Department of Commerce, Bureau of the Census, 1980 Census of Housing~ General Housing Characteristics~ New York, HCS0-1-A34, 1982. Department of Energy, "Proposed Appliance Efficiency Rules", Federal Register, Vol. 45, No. 127, June 30, 1980. United States Department of Ccmmerce, Bureau of the Census, County end City Data Book 1977, May, 1978. Roskins, R.A. et al., Enerq¥ and Cost Analysis of Residential Refrigerators~ oak Ridge National Laboratory, ORN/CON-6, January 1977. Nl!mber of Employees of Class I Line-Haul Railroads, Association ~-~r~an Railroad~, Econ----~x"'cs and Finance Dept., unpublished document. Tansil, J., Residential Consumption of Electricity 1950-1970~ Oak Ridge National Laboratory, ORNL-NSF-EP-51, July 1973. - 98 - £ S R G 31. Liepens, G. et al., Building Energy Use Data Bookt Oak Ridge National Laboratory, ORNL 53-63, April 1978. 32. 33. 34. 35. 36. 37. 38. 39. NEPOOL Load Forecasting Task Force and Battelle-Columbus Laboratories, Report on Model for Long-Range Forecasting o__f Electric Energy and Demand t__o the New England Power Pool. West Springfield, Massachusetts: New England Power Planning June 30, 1977 (including subsequent NEPOOL model documentation). 40. Stanford Research Institute, Business Development Strategy and Market for a New General Purpose Lampt December 1976. Air-Conditioning and Refrigeration Institute, Comparative Study ~f. Energy Efficiency Ratios~ January 1983. New England Power Pool, Computer Printouts and Microfilm of NEPOOL/Battelle Forecast Model Runs (Maine), May 3, 1980. United States Department of Coa=~erce, Bureau of the Census, Government Employment in 1975, August 1975. Association of Home Appliance Manufacturers, Facts o__n Major Home Appliance Energy Consumption and Efficiency Trends, 1983. New York State Energy Office, New York State Energy Master Plan and Long Range Electric and Gas Report, Final Report, March 1982. American Society of Heating, Refrigerating, and Air-Conditioning Engineers, Inc., ASHRAE Handbook and Product Directoryf 1977f Fundamentals, 1977. 41. U. S. Department of Commerce, Bureau of the Census, Housing Authorized by Building Permits and Public Contractsf C40-13 Years 1970 through 1981. 42. United States Civil Service Commission, Federal Civilian Work- force Statistics~ Annual Employment by Geographic Area, SM68-10, December 31, 1975. 43. 44. United States Department of Commerce, mMonthly Normals of Temperature, Precipitation, and Heating and Cooling Degree Days, 1941-1970,m August 1973. New York State Division of the Budget, Private C~m~mication, March, 1983, 1982-1985 Employment Values for New York State. California Energy Resources Conservation and Development Commission, Analysis of Residential Ener~ Usest 1977. - 99 - £ S R G 45. 46. 47. 48. 49. 50. Steven Buchsbaum and James W. Benson, Jobs and Energy: The Employment Impacts of Nuclear Power~ Conservation~ and Other Energy Options. New York: Council on Economic Priorities, 1979. New York State Electric Utilities, New York State Public Service Commission, and New York State Energy Office, New York State Residential Insulation Survey: Final Report. Albany: New York Department of State, September 16, 1977. Paul Raskin, et al., The Conservation Alternative to the Power Plant at Shoreham~ Long Island~ ESRG 80-31, Energy Systems Research Group, November, 1980. New York State Energy Office, New York State Energy Master Plan, March, 1980. United States Bureau of the Census, Provisional Estimates of Social~ Economic~ and Housing Characteristics~ Supplementary Report PHC 80-51-1, March, 1982. New York Gas Group, 1983 New York Gas Report (SEMP III), submitted to the New York State Energy Office, April 1, 1983. - 100 - £ S R O APPENDIX A ESRG HIGH AND LOW CASE FORECASTS OF LONG ISLAND LIGHTING COMPANY ~ S R G ESRG HIGH CASE AGGREGATE FORECAST LILCO HISH CASE LILC883 ENEROY IN O~H RESIDENT. COHHER. INDUSTR, 1982 5574. 5340. 1205o 1983 5660. 5450. 1250, 1984 $750. 5560. 1300. 1985 5830, 5660, 1350. 1986 5910, 5800, 1400, 1987 5980, 5950. 1450. 1988 6050. 6090. 1500. 1989 6120, 6230. 1550, 1990 6190, 6380, 1590, 1991 6250, 6520, 1640. 1992 6300. 6670, 1690, 1995 6360. 6820* 1740. 1994 6410, 6970* 1790, 1995 6460. 7120. ~840. 1996 6510. 7270. 1890, 1997 6570. 7420. 1950. 1998 6630. 7570. 2000. 1999 6690. 7730. 2050. 2000 6760. 7880. 2100, PEAK PO~ER LOAD IN HU 0THER TOTAL 8UNHER elNTER 1637. 13757. 3070. 2471. 1670. 14030* 3130. 2520. 1700. 14310. 3180, 2580. 1730, 14580. 3240. 2630.' 17~0, 14870. 3300. 2690. 1790. 15170. 3350. 2750. 1830. 15460. 3410. 2810. 1860. 15760. 3470. 2870. 1890.' 16050. 3520. 2940. 1930. 16340. 3580. 3000. 1960. 16630, 3630. 3060. 1990. 16910. 3690. 3120. 2030. 17200. 3740, 3180. '2070. 17480. 3800. 3240. 2100. 17780. 3860. 3300. 2140. 18070. 3910. 3360. 2180. 18370. 3970. 3420. 2220, 18680. 4030* 3490. 2260, 19000, 4090, 3550. A-1 ESRG LOW CASE AGGREGATE FORECAST LILCO LOW CASE LILCOB3 RESIDENT. 1982 5574. :95J 5620. 1984 5660. 1985 5680. 1986 56?0. 1987 57i0. I738 5720. I989 5720. 1970 5730. :991 5730. 1992 5730, 1993 5720. 1994 5710. 1995 5700. 1996 5700, 1997 5690. 1998 5700. 1999 5700, 2000 5710, ENERGY XN GWH PEAK POWER LOAD IN MW COMHER. INDUGTR. OTHER TOTAL SUHHER WINTER 5340, I205. 16~7. :3757. 3070. 2471. 5280. 1230. ~640, 15770. 3070. 2480. 5210. 1260. 1640, 13770, 3060. 2490° 5150. 1290. 1640. 13760. 3040. 2500, 5150. 1310, 1640. 13790, 3030. 2520, 5150. 1320, 1650, 13820. 3030. 2530. 5150, 1340. 1650, 13850. 3020, 2540. 5150. 1350. 1650. 13870. 3020. 2550. 5150. 1370. 1660. 13900, 3020. 2570. 5150. 1380. 1660. 13910. 3020. 2580. 5140o 1390, 1660, 139~0o 3020, 2590, 5140. 1410o 1660, 13960, 3020. 2600, 5140. 1420. 1670. 13950. 3020. 2610. 5150, 1440, 1670. 13960. 3020* 2610, 5150. 1450, 1680. 13970. 3020, 2620. 5150. 1460. 1680, 13990, 3020, 2630, 5150. 1480, 1690. 14010. 3020, 2640. 5150, 1490. 1690. 14030. 3020, 2650, 5150, 1510. 1700. 14060° 3030. 2660. A-2 E S R G ESRG HIGH CASE DISAGGREGATED FOP. ECAST LILCO LILC083 HIGH CASE - RESIDENTIAL SE'CTOR - FNFRGY IH GWH 1982 1985 1988 1991 1994 1997 1: REFRIGERATORS 1339. 1,3,50. 1336. 1299, 3: RANGES 2~8, 277. 285, 293, 4: I..I BHT ING 822, 842, 862. 881, 5: TELEVISIONS 366. 370, 6: CLOTHES LRYERS 424. 449. 47.~. 7: CLOTHES WASHERS 62, 64, 66. 68 8: B%SH WASHERS 137, 140, 140, 141 9: WATER H~ATERS 290, 307, J~15, 324 10: ROOM A/C 342, =~, , ll: CENTRAL A/C 29] , 330, 12: SPACE HEA] ..RS 254, .~0;, 13: HEATINGAUXILIARY 359. 356. ~52, ~48. 14: M I SCEL. I..ANEOUS 318. 375, 4~4~ 1240, 314 300 898 413 519 69 332, 367, 429, 486, 557, 2(t00 1180, 1156, 308, :~00, :~07, 314, 915, 9~2. 4~4, 457, 542, 566, 71. 72. 143o 144, 341. 350, 462, 494, 535, 579, 686, LII. C083 HIGH CASE - COHHERC1AI. 1982 1985 1: OFFICES 1: HEATING 2: COOl. lNG 3: LIGHIlNG 4: A/JX ~ POWER 21 RETAIL 1: HEATING 2: COOt. lNG 3: LIGHTING 4: AO× ~ POWER 3: HOGF'ITALS 1: HEATING 2t C00t. ING 3: LIGHTING 4: AtIX & POWER 4: SCHOOLS 1: HEATING 2 COOL. lNG 3 LIGHTING 4 AUX & POWER 5 OTHER 1 HEATING 2: COOt. LNG 3: LIGHTING 4: AOX ~ POWER 57, 73, 337, 358, 478, 501, 402, 439, 28, 36. ~33, 357, 1204, 1273, 476, 527, 51, 51, 133, ]34, 81, 85, 17, 19, 81, 78, 307, 28], 203, 195, 26, 33, 246, 262, 510, 544, 366, 410, S~CTOR - ENERGY IH BWH 1988 1991 1994 1997 2000 93. 114. 136, 158. 182, 383, 408, 433, 457. 481. 532, 563, 594, 625, 657, 484, 532, 582, 634. 689, 45, 55, 64, 74, 85, 1346, 1419, 1493, ].567, ]640, 583. ~41, 703. 767. 834. 8. 10, 11, 13, ]5. 52, 53, 54, 54, 55~ ~36, 139, ~41, 144, 91, 97, 10~, [09, 115. 23, 28, 32, 3&, 41, 80, 82, 84, 87, 280, 278, 277, 276, 274, 205, 211. 219. 227, 234. 42, 51, 61, 71, 82, 279, 296, ~12, 329, 545, 584, 625, 665, 705, 745, 459, 51~, 568, 626, 687, LILC083 20: 22: 23; 24: 25: 26: 27: 28: 29: 33 34 35 36: 37: 30: 31: 38: 39: HIGH CASE - INBLISTRIAL 1982 1985 FOOD 58, 65, TEXTII.ES 21. 2:5, APPAREL. 16, 19, I. UHBER 7, FURNITIJRE 15. 16, PAPER PRODUCTS 47, 54, PRINTING ~ PUBL, 90, 121, CHEN£CALS 58, 60, PETROL£UH ~ COAL 5, PRIMARY METALS 40, 4~, FABRICAT. HETAL. S 73, 79, MACHINERY 1~2, 133, ELECTRIC EQUIP. 255, 293, TRANSPORTATION 176, 179. RUBBER ~ F't. ASTIC 5&. 67, LEATHER 3, 4, STONE,CLAY~GLASS 11, 12. INSTRUMENTS 118. 135. OTHER 33. 34, SECTOR - ~N~RSY IN GWH 1988 1991 1994 1997 2000 73, 80, 87, 95, J02, 25, 24, 24, 24, 24, 22, 25, 28. 30, 33, 12. 14. 17. 20* 23. I7, 19, 20, 21. 23. 60. 67, 73. 80, 87. 153, 186. 221, 257, 294, 61. 62. 6:5. 65, 66. 7, 8. 9. 10. 1]. 45, 46, 48, 50, 51. 85, ~1, 98, 104, iii, 143, 153, 164, 174, 184, ~33, 375. 4~8. 46F. 510. 180, 178, 17~, 165, 154, 79, 91, 104, 118, 132, 5, ~* 6, 7, 8, 1~, 14, 16, 17, ~8, 152, 170, 190, 210, 232, 35, 35, ~6, 36, 36, A-3 ESRG LOW CASE DISAGGREGATED FORECAST LILCO LILC083 LOW CASE - RESIDENTIAL SECTOR - ENERGY 1N GWH 1982 1985 1988 1991 1339, 1346. 1329. 1291. 268. 275, 281. 286. 822. 840. 854. 863. 366. 367. 370, 374. 424. 433° 441. 449, 62. 63, 65. 66. 137. 138. 137, 137. 290. 299. 298. 298. 291. 306, 311. 32]. 359. 353. 348, 343. 318. 326. 334. 341. 1994 1232. 287. 29]. 865. 378 456 68 137 298 295 333 385 348. 1 REFRIGERATORS 2 FREEZERS RANGES 4 L. IOHFING 1ELEVISIONS CLOTHES DRYERS 7: CLOTHES WASHERS DISH WASHERS WATER HEATERS 10: ROOM A/C 11: CENTRAL A/C 121 SPACE HEATERS HEATINGAUXILIARY 14: MISCELLANEOUS 1997 ]171 274 863 384 464 69 138 301 289 546. 410. 337. 354. LIL.C083 LOW 1: OFFICES HEATING COOk. lNG LIGHTING AUX & POWER RETAIL HEATING 21 COOk. lNG LIGHTING 4: AUX ~ POWER HOSPITALS HEATING 21 COOl. lNG LIGHTING AUX ~ POWER 4: SCHOOI_S HEATING 2: COOLING LIGHTING AUX ~ POWER 5: OTHER 1: HEATING 2: COOLING LIGHTING AOX ~ POWER CASE - COMMERCIAl. 1982 1985 SECTOR - ENERGY IN GWH 1988 i991 1994 1997 2000 ii45, 260. 856. 389. 47i. 70, 139. 286. ~60. 434. LILC083 20: FOOD 22: TE×TII. ES 23t APPAREL 24: LUMBER 25: FURNITIJRE 26; PAPER PRODUCTS 27: PRINTING R F'UBL. 28: CHEMICALS PETROLEUM ~ COAL. PRIMARY MEI'ALS FABRICAT, METALS MACH£NERY ELECTRIC EQUIP. 37: TRANSPOR[ATiON RUBBER ~ PLASTIC LEATHER STON~,CLAY,GLASS 38: INSTRUMENTS OTHER 2000 41. 48. 52. 56. 60. 63. 67, 337. 324. 320, 3[7, 313. 309. 305, 455. 420. 420. 420. 420, 420. 420. 372, 358, 357, 355. 353. ~52. 350~ 17. 20. 21. 23. 24. 26, 27. 328. 317. 314. 310. :~07. 304. 300. 1270. 1248, 1242, 1237, 1233, 1226. ]22i. 414. 395. 393. 392, 390. 389. 388. 4. 5. 6. 6. 7. 7. 8. 54. 51. 50. 49. 48. 47. 47. 159. 156o 156. 155, 154. 153. 153. 78. 7~. 73. 73, 72. 72. 72. 15. 16. 18. 21. 24. 26. 2~. 70. 55, 54. 54. 54. 5~. 53. 326. 273. 275, 278. 280. 283. 285. 18. 21. 23. 24. 26. 28. 29. 252. 247, 244, 241, 238, 2~6. 233, 596. 618. 62~. 629, 634. 640. 645. ;~6~. 369. 371. 373. 373. 377. 380. LOW CASE INDUSTRIAl. 1982 1985 58, 64, 21 21. 16 18, 7 9, 15 ]5. 47 52. 90 111, 58 59. 40. 44, 73. 73. 122. 129. 255, 176. 189. 56. 64. 3. 3. 11. 118. 123. 33. 35. SECTOR - ENERGY IN GWH 1988 1.991 1994 1997 69. 73. 77. 19. 18. 17. 16. 19, 20. 20, 21, 10. 12. 13. 15 15. 15. 14. 14 54. 56. 58. &O 131. 151. 171. 191 57, 55, 53. 51 6, 7. 8. 8 46. 49. 5l. 54 71, 68. 66. 63 13~, 137. 141, 145 267, 267, 266, 266 197, 205* 212. 219 71. 77. 84. 92 3, 3, 3. 11. I1. 11. 11 123, 123, 123, 12~ 34. 33, 33. 32 A-4 E S R O 2000 ~5 15 22 16 14 61 49 9 56. 60 * 149. 266. 225 · 100 · 3. 122. 31.