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| Fourth Quarter 2005 | ||||
Click here to read an update on NEEP's Regional Initiatives and Training and Education activities
An Update on Energy Efficiency Policies Across the Northeast
New Report on Energy Efficiency Spending: In October, the American Council for an Energy Efficient Economy (ACEEE) released its 3rd National Scorecard on Utility and Public Benefits Energy Efficiency Programs: A National Review and Update of State-Level Activity. The report highlights recent trends in state energy efficiency spending and offers state rankings in spending per capita, spending as a percentage of utility revenues, and savings as a percentage of electricity sales.
Seven Northeast States Agree to Regional Greenhouse Gas Initiative (RGGI): New York, New Jersey, Delaware, Vermont, Maine, New Hampshire and Connecticut are moving forward without Massachusetts and Rhode Island on a landmark agreement to limit power plant carbon emissions. According to the agreement, energy efficiency can and must play a significant role in carbon emissions reductions. For more information on the agreement, visit the RGGI Web site.
ISO-NE Issues its 2005 Regional System Plan: New England's Independent System Operator (ISO-NE) released its 2005 Regional System Plan (RSP), which forecasts energy and capacity needs, and includes the impact of demand-side management programs based on forecasted kWh and KW savings reported by the region's electric utilities. The RSP reflects assumptions that energy efficiency program savings and demand impacts will peak in 2009, decline between 2009 and 2012, and remain flat thereafter. The reduction in savings impact estimate appears to reflect utility assumptions about future energy efficiency program funding, and highlights the shortcomings in ISO's forecasts of energy efficiency impacts on the region's resource adequacy. For more information, visit the ISO-NE Web site.
Regional Energy Policy and Resource Adequacy Conferences Focus on Role of Energy Efficiency: A number of conferences were held in the fall of 2005 that addressed the issue of the region's resource adequacy needs, especially in New England where capacity shortages are anticipated this winter as well as in the 2008-2010 timeframe. Some presenters focused on the need for greater reliance on energy efficiency as a strategy to reduce forecasted electricity demand. Key conferences included:
New England Energy Alliance is Formed to Address Energy Infrastructure: Represented by a mix of energy interests, this newly formed alliance recently issued a report titled, "New England Energy Infrastructure: Adequacy Assessment and Policy Review", which calls for New England policymakers to aggressively ramp-up energy efficiency policies and programs. The report was preceded by an extensive survey about New England public perceptions of energy issues and resource options (which found strong support - 72 percent or better - for increased energy efficiency to meet future resource needs). NEEP Executive Director Susan Coakley was invited to serve on the Advisory Council to the Alliance Board of Directors to provide information and expertise on the role and infrastructure of energy efficiency to meet resource needs in the region. For more information visit the New England Energy Alliance Web site.
Connecticut
DPUC Opens Docket to Investigate Decoupling: In accordance with the provisions set forth in Section 21 of Public Act 05-01: An Act Concerning Energy Independence, the Department of Public Utility Control (DPUC) has opened Docket # 05-09-09: Investigation into Decoupling Local Gas Distribution Company Earnings from Sales. As part of the investigation the DPUC has requested comments on how best to "decouple" the earnings of local gas distribution companies and other utilities from their sales in order to promote the state's energy policy. The DPUC must report its findings and recommendations to the State Energy and Technology Committee by January 1, 2006. More information can be found at the DPUC active docket database.
Update on 2006 C&LM Plan: The Department of Public Utility Control (DPUC) opened Docket # 05-10-02 to review the 2006 Conservation and Load Management (CL&M) Plan submitted jointly by Connecticut Light & Power Company and United Illuminating in October. The 2006 plan and proposed budgets can be viewed at the DPUC active docket database.
Proceeding to Develop A New Distributed Resources Portfolio Standard (Class III): The DPUC opened Docket #05-07-19, requesting comments on issues pertaining to the development of a portfolio standard, which includes conservation and load management as a Class III resource. For more information, see the DPUC active docket database. NEEP submitted comments on this docket, focusing on the need for common regional protocols in the context of a portfolio standard in which energy efficiency is treated as a resource.
CEAB Releases 2006 Draft Energy Plan: In November, the Connecticut Energy Advisory Board (CEAB) posted its 2006 Draft Energy Plan for the State of Connecticut for public comment. The plan outlines recommended policy goals for Connecticut's state policymakers in order to achieve long-term results in conjunction with viable state energy policy including the adoption of a five year state-wide goal to reduce peak electric demand by 10 percent and reduce the use of fossil fuels by 10 percent. Public hearing sessions were held in the beginning of December and written comments were due by mid December. For more information, read the full 2006 Plan, as well as NEEP's comments.
Connecticut Energy Advisory Board (CEAB) Releases Notice of RFP for Alternative Solutions to Proposed Facility: On December 13, the CEAB issued a request for proposals (RFP) seeking alternative solutions to a proposed 115- to 13.8 bulk power substation in Wilton, Conn. made by Connecticut Light & Power. The RFP seeks options for projects that can add additional local supply sources or reduce load within the targeted geographic region. Energy efficiency resources and conservation are among the recognized alternatives. Responses to the RFP are due on February 13, 2006. More information is available from the CEAB.
Governor Announces Sales Tax Holiday: Gov. Jodi Rell urged Connecticut residents to take advantage of a sales tax "holiday" on energy efficient products and heating equipment to prepare their homes for winter and to conserve energy. The temporary exemption from the six percent state sales tax took effect Friday, November 25, and is available until April 1, 2006. The exemption applies to residential energy efficient products and heating equipment, including: insulation, programmable thermostats, water heaters and blankets, window film, weather stripping, caulking, windows and natural gas furnaces that meet federal ENERGY STAR® specifications, and oil furnaces that are at least 85 percent efficient. The tax holiday applies to all eligible products purchased at retail stores in Connecticut, those purchased over the Internet, and products purchased by contractors on behalf of customers who are building new homes or remodeling.
Maine
PUC Issues Proposed Order Regarding Efficiency Maine Programs: After receiving comments from various parties on a draft plan in September, the Maine Public Utilities Commission (PUC) issued a proposed order and requested final comments on Docket 2005-446. The proposed order includes funding levels of nearly $12 million in 2006 (compared to $8 million in 2005), increasing to $15 million by 2009. The Commission adopted NEEP's previous recommendation to develop a multi-year evaluation plan. For more information, view the proposed order and NEEP's comments.
Governor Initiates Regional Energy Conservation Campaign: In October, Gov. John Baldacci submitted a draft proposal to his fellow New England governors titled "Memorandum of Understanding for A New England Electricity and Natural Gas Conservation Initiative." The MOU calls on governors to address the growing concerns of tight natural gas markets and rising energy costs through increased conservation and energy efficiency. Gov. Baldacci recommends that each state achieve the goal of a one percent reduction per year in natural gas consumption, to secure the larger regional goal of five percent reduction by 2011. For more information, read the press release.
Gov. Baldacci Announces Operation "Keep ME Warm:" For the second year, Maine ran a volunteer effort to install energy conservation measures in at least 3,000 homes from October 28-31, 2005. The door, window, and pipe insulation and eight compact fluorescent light bulbs that make up the $60 weatherization kit are estimated to provide electricity and heating fuel cost savings of as much as $200 this year, and will continue to provide savings for many years to come. Operation Keep ME Warm relies on state resources, private donations, and volunteers to install weatherization kits in homes that elect to participate. The Maine Commission for Community Service is coordinating the volunteer effort. Read more about the program in the press release.
Maine PUC Hosts Energy Forum: On October 20, new Public Utilities Commission (PUC) Chairman Kurt Adams hosted an energy forum that was attended by efficiency experts from across the country to help inform and guide the development of the state's energy efficiency activities. NEEP Executive Director Susan Coakley was among the participants who presented information on how the state could better capture cost-effective energy efficiency savings in the state, through Efficiency Maine's activities and, importantly, through other strategies such as energy efficiency portfolio standards. More information about the Forum can be accessed at the Efficiency Maine Web site.
State Legislators Pass Two Energy Bills: With home heating costs and electricity costs expected to rise between 25-35 percent this winter, Massachusetts legislators passed two energy initiatives in November: the energy efficient appliance standards bill and the home heating assistance package. House Bill No. 4438, the Home Energy Assistance and Tax Relief Act (HEAT), is a comprehensive program of tax credits and incentives to help Massachusetts consumers and energy users deal with rising energy costs this winter. The HEAT package provides incentives to help make homes and businesses more energy efficient, including: tax credits of up to $600 towards purchases on residential energy efficient heating items that help households use less gas and oil; and $20 million in state funding towards the Federal Low-Income Home Energy Assistance Program (LIHEAP). The HEAT Bill also includes a tax deduction option of up to $800 for home heating expenses for low income and moderate income homeowners and renters. Under the legislation, home heating energy purchases made between November 1, 2005 and March 31, 2006 can qualify for a tax deduction. Important to the HEAT Package is that it diverts $5 million from systems-benefits charge funded programs to create a zero interest loan program for low-income customers.
House Bill No. 4299 was also passed, which sets efficiency standards for certain appliances like furnaces and boilers, certain types of light bulbs and power supply cords sold and manufactured in the Commonwealth. For more information, see the related article in this edition of NEEP Notes.
Office of Economic Development Secretary Hosts Forum for Facility Managers: The Secretary of the Commonwealth's Office of Economic Development, Ranch Kimball, brought together a group of speakers to provide information about offsetting rising energy costs to an audience of building and facility managers. The discussion focused on available opportunities to reduce energy use in buildings. NEEP's Director of Policy, Outreach and Communications participated as a speaker.
Stay Warm NH: New Hampshire citizens and businesses can find important information on reducing energy costs, heating safety, and obtaining heating assistance at www.staywarmnh.org. Developed by the Office of Energy and Planning, the Web site includes practical steps that families and businesses can take to reduce their heating and energy costs. The site also includes information about how families can apply for help with their energy bills, including the state's Low-Income Home Energy Assistance Program, the Electric Assistance Program, and discounts on their natural gas bills.
Governor Signs Emergency Home Heating Bill: On November 1, 2005 Gov. John Lynch signed "An Act Making an Appropriation for Emergency Home Heating Assistance." The bill uses $10 million of New Hampshire's surplus to pay for fuel assistance if the federal government does not provide additional funding for the Low-Income Home Energy Program (LIHEAP). State officials estimate the state will need at least $30 million for the fuel assistance program this year. The federal government has approved $15 million for New Hampshire. The state could receive an additional $7 million contained in the stalled federal supplemental budget bill. Without lawmakers' action, as of December, all of the state's current LIHEAP funding will be obligated.
The Act also provides $3 million in additional money for the state's Electrical Assistance Program, which helps the poor pay their electric bills. Unfortunately, the money would be diverted to the program from the Systems Benefit Charge (SBC) for energy efficiency programs. Under the Act, the state would borrow $3 million from Public Service of New Hampshire, one of four utilities that administers the energy efficiency programs, which would in turn pay itself back over the next three years. The bill includes a ceiling on how much energy efficiency money can be diverted (no more than $3 million per utility) without additional legislative review. Once 30,000 households statewide receive help, lawmakers also would review the spending.
PUC Quarterly Report Available: The New Hampshire Public Utilities Commission (PUC) posted the state's Core Energy Efficiency Programs, Third Quarter Results 2005. The report includes information on savings, expenses and budget details per activity from January 1 to September 30, 2005.
Clean Energy Program Releases 2004 Annual Report: The New Jersey Clean Energy Program has released its 2004 Annual Report highlighting savings from their energy efficiency programs over the past year. In 2004 the Program expended $107,501,809 to provide New Jersey homes and businesses with services and financial assistance that generated 335,027 MWh of annual electricity savings and 432,758 therms of natural gas savings. The full report is available at the Clean Energy Program's Web site.
BPU Approves New Programs: On December 21, the New Jersey Boar of Public Utilities (BPU) approved recommendations to establish three new programs to help large industrial and commercial electric customers reduce their energy demand during emergencies and periods of high prices; to implement cost effective recommendations for energy efficiency; and to provide training for their operations and maintenance personnel. Once fully implemented, the programs will provide benefits directly to participants, as well as societal and economic advantages that will indirectly help all other energy users and the State's overall economy. The three programs are: load management, Building Operator Certification (BOC) - offered in the Northeast through NEEP - and energy auditing. More information can be found in the press release.
Gas Utilities File Request for Pilot Program to Change Rate Structure: With high wholesale natural gas costs, which are likely to be passed on to consumers this winter, New Jersey Natural Gas and South Jersey Gas Company asked the Board of Public Utilities (BPU) for a rate restructuring that would eliminate the paradox of promoting conservation while trying to meet shareholder profit expectations. The companies propose a five-year pilot program to change its rate structure, proposing that the BPU implement a conservation and usage tariff in lieu of the current rate structure. This would, in effect, "decouple" the delivery and service costs of natural gas from the wholesale cost of the fuel. For more information see the press release and related dockets.
Update on SBC III Proceedings: In December, the New York Public Service Commission (PSC) voted unanimously to approve a five-year extension of a statewide energy efficiency and research program that was created in 1998. Citing the benefits accrued to New York ratepayers as a result of the program, concerns over the impact of higher energy prices on low-income consumers, and the need to ensure the program has adequate resources to remain effective in the future, the Commission voted to increase the funding level for the nationally recognized System Benefits Charge (SBC) program from $150 million to $175 million (2006-2010). The decision in Case 05-M-0090 can be found on the Commission's Web site by accessing the Commission documents section of the homepage.
NYSERDA 2004 Annual Report Released: The New York State Energy Research and Development Authority (NYSERDA) released its 2004 Annual Report, providing expenditures, savings and general accomplishments associated with energy efficiency activities in 2004.
PSC Reports on Natural Gas Supply: The New York Public Service Commission (PSC) announced in October that major natural gas utilities providing service in the state are expected to meet their storage inventory targets by November 1, 2005. In response to this, PSC Chairman William Flynn asked each of the utilities to voluntarily expand their customer outreach and education efforts to stress the importance of energy conservation through low-cost or no-cost measures to reduce energy consumption and lower bills. More information can be found in the press release.
LIPA and NYSERDA Launch "Home Performance with ENERGY STAR:" In November, the Long Island Power Authority (LIPA) and NYSERDA announced the launch of Home Performance with ENERGY STAR® on Long Island. The program, originally developed under Gov. Pataki's New York Energy $mart program, uses a whole-house energy efficiency approach to reduce energy consumption by up to 40 percent. For more information, read the press release or visit the Get Energy Smart Web site.
NYSERDA Promotes Energy Efficiency Programs and Urges Energy Conservation: Two of New York State's top energy officials, Peter R. Smith, president of NYSERDA, and Eugene W. Zeltmann, president and chief executive officer of the New York Power Authority (NYPA), coordinated efforts and reached out to businesses throughout the state to provide information on available energy efficiency programs and methods that will help save energy this winter, as prices for natural gas, heating oil and electricity are expected to rise. More information can be found in the press release.
National Grid Files 2006 DSM Plan: On October 14, National Grid (formerly Narragansett Electric Company) filed a Stipulation and Settlement entered by National Grid, the Rhode Island Division of Public Utilities and Carriers, the Energy Council of Rhode Island, the Rhode Island State Energy Office and People's Power and Light concerning the utility's Demand Side Management (DSM) Programs for 2006 (Docket 3701). The 2006 DSM plan proposes an overall program budget of $21.7 million, and addresses issues related to the company's shareholder performance incentive. For more information, visit the Rhode Island Public Utilities Commission Web site.
Governor Celebrates Change a Light, Change the World Day: On October 5 Gov. Donald Carcieri encouraged Rhode Island residents to pledge to change one household light to an energy-efficient model, citing that it will help save money, save energy and improve air quality by reducing emissions. More information can be found in the press release.
PSB Seeks Input into Efficiency Vermont's 2006 Annual Plan. The Vermont Public Service Board (PSB) opened Docket 5980 to seek input regarding planned service offerings for the year 2006. Rather than require Efficiency Vermont to prepare an additional Annual Plan for 2006, the PSB has asked Efficiency Vermont to summarize its plans for 2006 at a technical workshop to be held on Friday, January 6, 2006, at 9:30 a.m. in the PSB's Hearing Room, Third Floor, Chittenden Bank Building, 112 State Street, Montpelier. Written comments are due to the PSB by January 20, 2006. For more information, read the summary of Efficiency Vermont's plans for 2006.
Proposals to Triple Funding for Efficiency Vermont: Two energy advocacy groups, Vermont Public Interest Research Group (VPIRG) and Conservation Law Foundation (CLF), are pushing for the state to triple its funding of the nation's first efficiency utility. Efficiency Vermont currently spends about $17.5 million of ratepayers' money to reduce electricity use in the state. Under legislation passed earlier this year, the Public Service Board (PSB) is considering dramatically increasing how much money Efficiency Vermont collects and spends. VPIRG and CLF are among those asking the PSB to increase funding to $52 million a year by 2008. The Board is expected to make a decision on the matter over the next several months. More information can be found in the press release.
Update on PSB Investigation on Integrated Resource Planning: The Vermont Public Service Board (PSB) has modified the schedule of Docket #7081 regarding least-cost integrated resource planning (IRP) for the Vermont Electric Co. (VELCO) transmission system, in which energy efficiency is viewed by advocates as an important and least cost alternative to building new transmission lines. Facilitated negotiations are now running from November 1, 2005, through January 31, 2006. For information on workshop presentations provided during the month of September, visit the PSB Web site