Customer Lowered Electricity Price (CLEP)

  • Efficiency
  • Integration
  • Storage
  • Grid-tied
  • Energy storage
  • Affordability

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Building Science Innovators, LLC

Published 08 Feb 2017

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Customer Lowered Electricity Price (CLEP)

Customer Lowered Electricity Price (CLEP) is distinguished by its win-win-win solution for the resident, the utility and the regulator. CLEP incentivizes customers to alter energy use behaviors to make pre-planned or automated electricity purchases at cheaper times of day when aggregate demand is lower. Smart purchases and demand cuts save the utility money--much of which can be paid to these customers. Key idea: the best way to balance between utility and consumer investment is to pay customers via timely rewards that are < the actual utility cost savings generated by that customer. Then: customers will make timely investments to raise the associated reward payments. Suppose in the following example that the reward to the CLEP customer is set at 95% of the avoided utility costs, with the remaining 5% being shared with all customers : An average dishwasher runs on 1800 watts for an hour and consumes electricity at a cost of $65 a year @ $0.10 /kWh (energyusecalculator.com/electricity_dishwasher.htm). A resident who chooses CLEP and habitually runs his dishwasher with its built-in timer set to start around 2 a.m., will be paid $6 a year from cheaper-than-average wholesale electricity purchases, but will also generate a much greater “negative demand charge” of around $20. With no upfront capital cost, this resident will be paid a $26 annual CLEP incentive to wash dishes at nightresulting in a net annual cost of operating the dishwasher of $65 minus $26, or $29.

How it benefits society

Customer Lowered Energy Price [CLEP] • Lowers electricity cost for all customers; • Superior demand response; • Finances multi-thousand-dollar batteries in buildings; • Harvests cheap non-peak power for peak power use; • Pays 5% better than net energy metering but has no subsidy; • Applies to community solar; • Forestalls grid defection and lowers environmental footprint; • Forestalls fossil peaking plants; • Improves reliability at lower cost; • Greatly improves the economics of optimal building energy design; • Continuously improves the economic balance between supply and demand side investments, thereby making Integrated Resource Planning obsolete; and • Lowers fossil fuels’ value.

Who we are

Building Science Innovators, LLC
Myron Katz, PhD, Norman Witriol, PhD
New Orleans, La, USA, 70118

Dr. Myron Katz, a consultant who has worked on both sides of the meter. He is an applied mathematician and consults as a Moisture, Energy-Conservation and Building Scientist, with a background in building science/energy-efficiency, a Certified Energy Rater Trainer, regularly invited presenter of Building Science and Energy Conservation technologies at the Louisiana Engineering Society conferences, technical consultant on over $500,000 of DOE Energy Efficiency grants, a university professor teaching Math, and Computer Science, at one time the Energy Consultant to the Louisiana Attorney General’s Utility Regulatory Group in their efforts to protect consumers from imprudent costs of construction of a nuclear powered electricity generator, published a peer-reviewed journal on an alternative duct and house leakage testing protocol, and Co-Founder of BSI, LLC. Myron invented the Inverted Demand Compliant Construction paradigm which will be the subject of Task 8. Dr. Norman Witriol, a Physicist and Building Scientist with a background in both building science/energy efficiency theory and experiment, including many years of writing and running code for computational modeling of physical systems, and being PI on over $500,000 of DOE energy efficiency grants, with 5 patents, 37 publications, 8 Awards, 61 Lectures, Papers Presented, Reports, as well as being a University Professor of Physics for decades, and a consultant to 9 governmental and industrial organizations, with 2 appointments at the National Research Council, and Co-Founder of BSI, LLC

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