We’re Cranking Now! A Motors Program Success Story

John Barbour and Susan Kulakowski, Energy Solutions
Alvin Harwick, Pacific Gas and Electric Company

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Abstract

Pacific Gas and Electric Company (PG&E) has run many successful customer energy efficiency (CEE) programs, but had always found the motors market a hard one to reach. For years, PG&E promoted energy-efficient motors through a combination of rebates, energy audits, and technical information for customers. Even with rebates that significantly reduced payback periods, participation never amounted to more than 610 motors annually since 1995. The primary purpose of the motors program and other CEE activities during this period had been resource acquisition. In 1998, PG&E decided to adopt a different strategy in light of EPAct motor standards that went into effect in October 1997, and as a prelude to market transformation. Using the Consortium for Energy Efficiency motor standards, the utility began offering incentives for vendors (companies selling directly to end-use customers) to address stocking practices and increase the availability of premium efficiency motors (a preliminary step in market transformation). PG&E aggressively recruited vendors and offered special promotions to get them to try the program. Despite these efforts, the program only generated applications for 416 motors. In 1999, PG&E decided to try providing incentives to distributors (companies purchasing directly from manufacturers) for sales of premium efficiency motors. With the smaller number of market players, electronic application tools, qualifying motors database, listing participating distributors on PG&E’s vendor database, and increased marketing, in the first year of the program, incentives were paid for 2,426 motors, making it one of the more successful motors programs in the nation (Jones 2000).