NEEP Notes: Best practices in energy efficiency programs in the Northeast

National Grid's Appliance Management Program

In partnership with local community agencies, National Grid developed the Appliance Management Program (AMP) in 1995 to deliver electricity savings to low-income customers through a combination of home appliance surveys, education about energy used by household appliances and the installation of energy-saving measures. The program has since been expanded to offer conservation services for oil-heated homes. National Grid's retail companies use systems benefits charges to fund local Community Action Program agencies (CAP) to deliver the program.

The investments that National Grid makes in energy efficient products for the AMP program helps encourage the market to respond to those purchases and better support those products in the marketplace. Through a Best Practices Working Group, National Grid identified high performing compact fluorescent lamps (CFLs) and uses only those products in the AMP program. These efforts help accelerate the market adoption of the best and most efficient products.

Who is the end user/customer of the program?

AMP is delivered to low-income National Grid customers by local CAP agencies in the service areas of Massachusetts, Rhode Island and New Hampshire. The income eligibility level for customers is 60 percent of median in Massachusetts and is indexed to the same criteria for fuel assistance in Rhode Island. AMP is available to customers living in one to four family facilities. From 1996-2004 a total of 30,923 households have participated. AMP has served at least 10 percent of the eligible population to date and continues to set aggressive program targets each year.

What was situation prior to the program's implementation that the program hoped to correct or mitigate?

Community action agencies and utility companies in New England had a long and successful history of helping low-income customers reduce their heating bills through weatherization services, but not through addressing electric bills. The AMP program is based on the pioneering efforts of Niagara Mohawk in New York during the 1980s to assist low-income customers in better managing their electric bills. AMP was the first in-home program of its kind in New England to address electric usage specifically. Before the AMP program, National Grid had many low-income customers who were having difficulty managing their electric bills, but no direct way to assist these customers in their home.

Did the program include any customer incentives?

The program uses a cooperative co-learning approach of adult-to-adult education to identify mutually beneficial outcomes rather than instructing or doing things for customers. The program has been able to quantify energy savings due to education and consumer action, which has rarely been documented. AMP's strong emphasis on training creates local electric energy efficiency experts that then become an on-going community resource.

What improvements were made as part of the program?

AMP services include in depth appliance analysis, replacement of high-energy refrigerators and freezers and the installation of energy saving light bulbs and fixtures. Low-income customers may also be eligible for free insulation or other whole house weatherization services. In 2000, the program began offering weatherization measures for oil-heated homes and has served 2,515 households since. The program has also replaced the oil heating systems of 758 customers since 2001.

What was saved as a result of the program and how much?

The AMP program has achieved high and consistent electricity savings (average 1,200 KWh per household), which reduces low-income household electricity bills by about $100 per year. Since the program's inception, more than 30,000 MWh in cumulative annual savings and 425,000 MWh in lifetime savings have been delivered to over 30,000 customers.

The average savings for weatherization is 150 gallons of oil for a total of 377,000 annual gallons saved since 2000. An average of 290 gallons of oil is saved from each heating system replacement, for a total of almost 220,000 annual gallons of oil since 2001.

Were there non-energy benefits as a result of the improvement?

Beyond the significant benefits provided directly to participating customers, AMP has affected broader utility and weatherization program practices in the region. The program has encouraged increased utility investment in low-income energy efficiency in the region. It has also led to the creation of a Best Practices Working Group that meets regularly to share ideas and cooperate on program design and technical issues.

AMP has been evaluated extensively since its inception and the results continually reveal that the program is highly cost effective. For example, the benefit to cost ratio (based on the total resource cost test) of AMP is 2.56 according to the most recent evaluation results (2003).

What do customers say about the program?

"Not only did the program replace my refrigerator, but it also gave me energy saving light bulbs, and suggestions and solutions to save money on my monthly electric bill. I passed on what I learned to others, so they as well may save money." -Donna, a single mother of two from Lawrence, Mass.

Who are the local participating Community Action Program (CAP) agencies?

Massachusetts: Action Inc., Berkshire Community Action Inc., Citizens for Citizens, Community Teamwork, Inc., Franklin Community Action Corp., Greater Lawrence Community Action Council, Lynn Economic Opportunity, Montachusett Opportunity Council, Inc., North Shore Community Action Program, Quincy Community Action, Self Help, Inc., South Shore Community Action Council, Southern Middlesex Opportunity Council, Springfield Partners for Community Action, Tri-City Action Program Inc., and Worcester Community Action Council.

Rhode Island: Blackstone Valley Community Action, Comprehensive Community Action Programs, East Bay Heating Assistance (Self Help), Providence Community Action Program, South County Community Action, Tri-Town Community Action, and West Bay Community Action.

In 2002, the AMP program in New Hampshire was replaced by a similar joint utility program called Home Energy Assistance. The local participating community action agencies in New Hampshire that currently deliver Home Energy Assistance for National Grid are: Rockingham Community Action, Southern New Hampshire Services, Southwestern Community Services, Inc. and Tri-County Community Action.

What do the CAP agencies say about the program?

"Not only does the program promote energy awareness and conservation, customers save energy usage by following the suggestions given to conserve energy. The program has been an incredible service for our clients." - Rita Carvalho, Assistant Energy Director at Action, Inc. in Gloucester. Mass.

For additional details on National Grid's Appliance Management Program, please click here.

Best practices in energy efficiency programs in the Northeast
National Grid's Appliance Management Program In partnership with local community agencies, National Grid developed the Appliance Management Program (AMP) in 1995 to deliver electricity savings to low-income customers through a combination of home appliance surveys, education about energy used by household appliances and the installation of energy-saving measures. The program has since been expanded to offer conservation services for oil-heated homes. National Grid's retail companies use systems benefits charges to fund local Community Action Program agencies (CAP) to deliver the program. The investments that National Grid makes in energy efficient products for the AMP program helps encourage the market to respond to those purchases and better support those products in the marketplace. Through a Best Practices Working Group, National Grid identified high performing compact fluorescent lamps (CFLs) and uses only those products in the AMP program. These efforts help accelerate the market adoption of the best and most efficient products. Who is the end user/customer of the program? AMP is delivered to low-income National Grid customers by local CAP agencies in the service areas of Massachusetts, Rhode Island and New Hampshire. The income eligibility level for customers is 60 percent of median in Massachusetts and is indexed to the same criteria for fuel assistance in Rhode Island. AMP is available to customers living in one to four family facilities. From 1996-2004 a total of 30,923 households have participated. AMP has served at least 10 percent of the eligible population to date and continues to set aggressive program targets each year. What was situation prior to the program's implementation that the program hoped to correct or mitigate? Community action agencies and utility companies in New England had a long and successful history of helping low-income customers reduce their heating bills through weatherization services, but not through addressing electric bills. The AMP program is based on the pioneering efforts of Niagara Mohawk in New York during the 1980s to assist low-income customers in better managing their electric bills. AMP was the first in-home program of its kind in New England to address electric usage specifically. Before the AMP program, National Grid had many low-income customers who were having difficulty managing their electric bills, but no direct way to assist these customers in their home. Did the program include any customer incentives? The program uses a cooperative co-learning approach of adult-to-adult education to identify mutually beneficial outcomes rather than instructing or doing things for customers. The program has been able to quantify energy savings due to education and consumer action, which has rarely been documented. AMP's strong emphasis on training creates local electric energy efficiency experts that then become an on-going community resource. What improvements were made as part of the program? AMP services include in depth appliance analysis, replacement of high-energy refrigerators and freezers and the installation of energy saving light bulbs and fixtures. Low-income customers may also be eligible for free insulation or other whole house weatherization services. In 2000, the program began offering weatherization measures for oil-heated homes and has served 2,515 households since. The program has also replaced the oil heating systems of 758 customers since 2001. What was saved as a result of the program and how much? The AMP program has achieved high and consistent electricity savings (average 1,200 KWh per household), which reduces low-income household electricity bills by about $100 per year. Since the program's inception, more than 30,000 MWh in cumulative annual savings and 425,000 MWh in lifetime savings have been delivered to over 30,000 customers. The average savings for weatherization is 150 gallons of oil for a total of 377,000 annual gallons saved since 2000. An average of 290 gallons of oil is saved from each heating system replacement, for a total of almost 220,000 annual gallons of oil since 2001. Were there non-energy benefits as a result of the improvement? Beyond the significant benefits provided directly to participating customers, AMP has affected broader utility and weatherization program practices in the region. The program has encouraged increased utility investment in low-income energy efficiency in the region. It has also led to the creation of a Best Practices Working Group that meets regularly to share ideas and cooperate on program design and technical issues. AMP has been evaluated extensively since its inception and the results continually reveal that the program is highly cost effective. For example, the benefit to cost ratio (based on the total resource cost test) of AMP is 2.56 according to the most recent evaluation results (2003). What do customers say about the program? "Not only did the program replace my refrigerator, but it also gave me energy saving light bulbs, and suggestions and solutions to save money on my monthly electric bill. I passed on what I learned to others, so they as well may save money." -Donna, a single mother of two from Lawrence, Mass. Who are the local participating Community Action Program (CAP) agencies? Massachusetts: Action Inc., Berkshire Community Action Inc., Citizens for Citizens, Community Teamwork, Inc., Franklin Community Action Corp., Greater Lawrence Community Action Council, Lynn Economic Opportunity, Montachusett Opportunity Council, Inc., North Shore Community Action Program, Quincy Community Action, Self Help, Inc., South Shore Community Action Council, Southern Middlesex Opportunity Council, Springfield Partners for Community Action, Tri-City Action Program Inc., and Worcester Community Action Council. Rhode Island: Blackstone Valley Community Action, Comprehensive Community Action Programs, East Bay Heating Assistance (Self Help), Providence Community Action Program, South County Community Action, Tri-Town Community Action, and West Bay Community Action. In 2002, the AMP program in New Hampshire was replaced by a similar joint utility program called Home Energy Assistance. The local participating community action agencies in New Hampshire that currently deliver Home Energy Assistance for National Grid are: Rockingham Community Action, Southern New Hampshire Services, Southwestern Community Services, Inc. and Tri-County Community Action. What do the CAP agencies say about the program? "Not only does the program promote energy awareness and conservation, customers save energy usage by following the suggestions given to conserve energy. The program has been an incredible service for our clients." - Rita Carvalho, Assistant Energy Director at Action, Inc. in Gloucester. Mass. For additional details on National Grid's Appliance Management Program, please click here.

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Third Quarter 2005