LADWP Expands Its Commercial Energy Efficiency Efforts by Adding a New Pilot Motors Rebate Program; Los Angeles Department of Water and Power Joins National Efficiency Awareness Campaign

Business Wire, Nov 11, 2004

LOS ANGELES -- The Los Angeles Department of Water and Power (LADWP) has expanded its commitment to saving LA city businesses money and energy by adding a new pilot program to its rebates. The Premium Efficiency Motors Program (PEM) will provide rebates of $25 to $630 per motor to commercial and industrial companies that purchase premium efficiency motors.

Electric motor-driven systems account for the largest use of electricity, approximately 63%, in the industrial electrical use sector. By replacing old inefficient equipment, companies can reduce their energy use, save money and help preserve our natural resources.

The U.S. Department of Energy has conducted numerous studies in the use and efficiency of industrial motors. Their findings show that using best practices in motor operation can save 11% to 18% of the current industrial energy usage by motor systems. Their studies also show that many companies are not aware of the availability of energy efficient motors.

"I commend the LADWP on developing a method for industrial customers in Los Angeles to take a proactive approach in saving energy and improving their productivity," said Mayor Jim Hahn. "Our reliability, low utility rates and numerous energy efficiency programs help to make Los Angeles a very attractive location for business growth and development."

In conjunction with the launch of its Premium Motors Program, the LADWP is also sponsoring the Motor Decisions Matter campaign (MDM), a national awareness program that promotes electric motor management. MDM was launched in 2001 by the Consortium for Energy Efficiency (CEE), on behalf of other energy efficiency organizations, as well as motor manufacturers and sales/service centers, utilities, trade associations, and government agencies.

These stakeholders have come together as MDM sponsors to spread awareness of how business and industry can save significant amounts of energy and money through implementation of motor management plans, including use of high-efficiency NEMA Premium(TM) motors and best-practice repairs.

For Los Angeles, the largest manufacturing center in the nation, motor management is especially important. Electric motor energy costs can exceed $1 million annually in large industrial plants. Installing energy efficient motors can reduce motor energy costs, while also boosting productivity, reliability and profitability. Increased productivity and profitability in Los Angeles plants and businesses can also have a positive impact on the city and California's economy.

"The LADWP's leadership role as an MDM sponsor will bring the benefits of this national partnership to the business customers of LA," says CEE executive director Marc Hoffman. "By leveraging the strong network of MDM sponsors and materials to support its Premium Motors Program, LADWP can tap the motor industry's interest in helping customers lower their electric bills through premium-efficiency motors."

"The LADWP is excited to be part of the MDM campaign," says Gary Gero, director of Energy Efficiency and Renewable Solutions. "Use of the campaign's resources will be an effective way for the LADWP to promote best practices in motor management and to work at transforming the industrial/commercial motor replacement market towards the use of NEMA Premium motors."

With the launch of the limited funded pilot program to provide commercial and industrial customers with incentives for NEMA Premium motors, the LADWP hopes to develop methods to expand the outreach to industrial customers. The full program will take effect in July 2005 if there is a positive response to the pilot.

To help ensure the program's success, LADWP plans to use MDM's free, online software tool, the 1-2-3 Approach to Motor Management, to demonstrate the benefits of motor planning to LA businesses. To obtain more information about the Premium Efficiency Motors Program, contact Reynaldo Reyes of LADWP at 213-367-4983, or reynaldo.reyes@ladwp.com. Information about the rebates specifics can also be found on the LADWP web site at www.ladwp.com/motors.> The Consortium for Energy Efficiency, a nonprofit public benefits organization, develops national initiatives to promote the manufacture and purchase of energy-efficient products and services. Efficiency programs of CEE members in 23 states and two Canadian provinces use the Consortium's national initiatives to increase the effectiveness of their local efforts. LADWP has been a longtime member of CEE.

The Premium Efficiency Motors Program is part of the LADWP Green LA Environmental Programs that also include energy-efficiency programs that offer rebates, technical assistance; load monitoring and financing. In addition, efforts include Tree Planting, Green Power, Advanced Transportation and Recycling. Information on these environmental programs is available at www.ladwp.com or by calling 1-800-Green LA.

The Los Angeles Department of Water and Power provides water and energy to the 3.9 million residents and businesses of the city in a 465 square mile area. We're working for LA!