2007 Northeast Energy Efficiency Summit examines the advantages of efficiency
On May 10, NEEP hosted its second annual Northeast Energy Efficiency Summit. Nearly 300 participants including influential policymakers, business leaders, efficiency advocates and efficiency program administrators gathered in Providence, R.I. to discuss the Summit’s theme: Efficiency as a Competitive Advantage. This day long event featured an in depth conference, efficiency exhibits and an evening dinner celebration honoring regional business commitments to advancing efficiency.
NEEP thanks everyone who made the 2007 Summit a great success including our sponsors, exhibitors, speakers and business leaders. For complete details about the Summit, please visit the Summit Web site: www.neep.org/summit
Efficiency for Cost and Climate
Ralph LaRossa, President and COO, Public Service Electric & Gas
To frame the discussion of energy efficiency as a competitive advantage, Ralph LaRossa, President and Chief Operating Officer for Public Service Electric and Gas (PSE&G), delivered a keynote address that highlighted New Jersey’s efforts as a lesson in promoting economic growth in an environmentally responsible manner. Stating that “we should redouble our efforts on energy efficiency because of climate change,” LaRossa noted that we also “need energy efficiency to keep the lights on.” He elaborated that the convergence of energy and environmental issues creates the need to address energy infrastructure and capacity. Working together with government, regulators, environmental groups, academic institutions and industry, PSE&G is applying their experience and leveraging customer relationships to promote energy efficiency and economic growth.
Energy Efficiency Policy
Sue Coakley, NEEP introduces members of the policy panel: Andy Dzykewicz, energy advisor to the Gov. of Rhode Island; Denis Bergeron, energy program director for Efficiency Maine; Ann Berwick, undersecretary of energy for Massachusetts; and Mike Winka, director of clean energy for the New Jersey Board of Public Utilities.
Andy Dzykewicz, energy advisor to Rhode Island Governor Donald Carcieri, served as moderator for the morning panel discussion of energy efficiency policies that create competitive advantages by addressing both economic development and environmental quality. He opened the session by commenting that because our region and nation have reached the end of the energy pipeline, we must now “think about being at the start of the energy efficiency pipeline.” All of the panelists presented ways in which their states are tapping that pipeline and creating advantages with energy efficiency policies.
Efficiency for Economic Development
Mike Winka, director of clean energy for the New Jersey Board of Public Utilities discussed the economic benefits of New Jersey’s Energy Master Plan. With strong leadership from Governor Jon Corzine, and support from 11 state agencies and various stakeholder groups, the plan outlines specific goals and measures to achieve a 20 percent reduction in energy use by 2020. Winka explained that the plan to incorporate more energy efficiency into the overall mix of New Jersey’s energy resources supports the state’s economy by returning money and jobs that would otherwise be exported through the purchase of electricity transmission and distribution from surrounding states. The plan’s CO2 reduction measures also support the economy by ultimately protecting New Jersey’s coastline- a key part of the state’s revenues- and by helping businesses and the state to achieve clean air goals.
Procuring Efficiency to Meet Consumer Needs
Building on the discussion of efficiency’s role in economic development, panelist Ann Berwick, undersecretary of energy for the Commonwealth of Massachusetts, explained there are several policies under consideration in that state that could “turbo charge energy efficiency” and capture all cost effective resources to help meet a growing energy demand. These include a floating systems benefit charge; an energy efficiency portfolio standard; appliance standards and building codes that contain serious inspection and enforcement provisions as well as automatic updating procedures to maintain stringency; and the decoupling of utility revenue from the volume of energy sold. On this last point, Berwick noted that the way utility companies are compensated is not in line with our public policy goals on energy efficiency and, moving forward, the utilities must be made a partner in those efficiency efforts.
Efficiency as a Power Grid Resource
Concluding the panel discussion on efficiency policies, Denis Bergeron, director of energy programs for the Maine Public Utility Commission’s Efficiency Maine program spoke about efficiency as a power grid resource. He reviewed the evolution of least cost and integrated resource planning policies as tools to evaluate the need for new generation or transmission projects to what he called today’s reformulation period in which the Federal Energy Regulatory Commission’s approval of the Forward Capacity Market has presented a new way to value energy efficiency as a resource.
The Rhode Island Example
Rhode Island Governor Donald L. Carcieri
As the Summit’s special luncheon speaker, Rhode Island Governor Donald Carcieri discussed his state’s efficiency goals including getting 15 percent of energy needs from clean energy renewable sources by 2010. To achieve this, Rhode Island focuses on driving energy efficiency at the municipal level. The state also aggressively pursues weatherization programs, energy efficiency in schools and energy efficient building design. Gov. Carcieri urged the audience to increase public education efforts, noting that we must do better at helping people understand what can be done to save energy.
Energy Efficiency Applications
Moderator Brian Henderson of NYSERDA introduce panelists Anita Molina, principal of Bostonia Partners; Robert Smuts, chief administrative officer for the City of New Haven, Conn.; DAvid Bomke, executive director of the New York Energy Consumers Council; and DAvid Chamberlain, energy engineer for Raytheon.
To demonstrate practical examples of energy efficiency as a competitive advantage, moderator Brian Henderson, director of energy efficiency services for the New York State Energy Research and Development Authority (NYSERDA), introduced a panel of experts who addressed the issue from a variety of perspectives.
Business Applications
Taking the business perspective, David Bomke, executive director of the New York Energy Consumers Council, discussed efficiency’s impact on building owners. Because energy is one of the biggest expenses for a building owner, Bomke noted that strategic capital investment in efficiency can reduce energy costs. However, he cautioned that it is not enough to look at the first cost analysis when considering efficiency as a competitive advantage; operational costs are also very important. He urged the audience to consider policies that drive reasonable investment in energy efficiency and how those polices both benefit and impact ratepayers.
Investor Applications
Anita Molino, principal of Bostonia Partners LLC, discussed the applications of energy efficiency from an investor’s perspective. Molino explained several financial structuring options for efficiency projects, but cited the Cambridge (Mass.) Energy Alliance as one particular example that promotes a competitive advantage. With $70 million in private investor financing and $90 million total, the Cambridge Energy Alliance (CEA) is a high profile, city led efficiency campaign intended to stabilize energy costs, reduce pressure on the grid, add new jobs and jumpstart economic growth. Organized as a non profit entity, the CEA will leverage the city’s authority, trust and branding power to arrange financing for efficiency projects throughout the city. The energy savings will be verified and guaranteed to exceed the investment debt.
Government Applications
To demonstrate how municipal applications of energy efficiency create competitive advantages, Robert Smuts shared his experiences as chief administrative officer for the City of New Haven, Conn. With a relatively poor population, New Haven first approached energy efficiency from a budgetary standpoint. By improve the efficiency of street lights, traffic lights and building lights, renovating inefficient existing schools and building new high performance schools as well as implementing energy management systems in municipal buildings, the city has been able to save nearly $30 million in roughly five years. Saying that “conservation is who we are,” Smuts explained that energy efficiency has now become part of the New Haven’s identity, and the public is engaged in all efficiency efforts.
Multiple Facilities Applications
Addressing the application of energy efficiency across multiple facilities, David Chamberlain, principal energy engineer for Raytheon discussed the company’s Energy Conservation for a Competitive Advantage Program. Raytheon’s New England facilities alone account for $30 million worth of energy use. To tackle this significant business cost, Raytheon’s efficiency initiatives focus on managing consumption reduction through the monitoring of plug loads which represent 50-70 percent of the company’s energy use. Chamberlain pointed to Raytheon’s comprehensive employee engagement strategies and strong CEO support as the keys to successfully saving energy.
Call to Action
Peter Smith, president of NYSERDA
The conference portion of NEEP’s Summit closed with Peter Smith, president of NYSERDA, issuing a call to action. Describing energy efficiency a “resource option without equal,” Smith declared that we need to “sell energy efficiency the way we sell beer, cars and soap.” He urged the audience to promote the economic advantages of energy efficiency and to partner across all sectors to reach consumers. “Going green is about green,” Smith said. Noting that being energy efficient makes money, he cited the efforts of many market influencers who are becoming more competitive by leveraging energy efficiency including Wal-Mart, Raytheon, GE, BP and the city of New York. Smith emphasized that technology, innovation and intellectual capital will help us build a better energy future through energy efficiency.
Business Leadership for Energy Efficiency
The 2007 Northeast Energy Efficiency Summit was capped with a special dinner celebration to honor schools and businesses across the Northeast who have embraced energy efficiency and achieved competitive advantages as a result. Organizations were nominated by the utility or energy efficiency program administrator in their area and were selected for recognition by NEEP based on their commitment to implementing cost effective energy efficiency measures, demonstrated energy savings, and demonstrated leadership to advance energy efficiency. The 2007 Northeast Business Leaders for Energy Efficiency are:
- Blackstone Valley Regional Vocational Technical High School
Sponsored by National Grid
- Clariant Corporation
Sponsored by National Grid
- Hines Interests supporting Morgan Stanley
Sponsored by New York State Energy Research and Development Authority
- The Hotchkiss School
Sponsored by Connecticut Light and Power and the Connecticut Energy Efficiency Fund
- King Kullen Grocery Company Inc.
Sponsored by Long Island Power Authority
- Maine School Administrative District 17
Sponsored by Efficiency Maine
- Pfizer Inc.
Sponsored by NSTAR
- Southeastern Container
Sponsored by Public Service of New Hampshire
- Trinity Financial
Sponsored by KeySpan Energy Delivery
As part of the dinner event, David Goldstein, energy program director for the Natural Resources Defense Council delivered a keynote address explaining the principle theories outlined in his newly releases book Saving Energy, Growing Jobs.
For more information about the Summit including business leader case studies and video clips please visit the 2007 Summit Web site, or contact Catherine Stanley.
