An Update on Energy Efficiency Policies Across the Northeast

				*A quarterly publication of*
First Quarter 2004

An Update on Energy Efficiency Policies Across the Northeast

NEW ENGLAND New England experienced consecutive days of record-breaking winter electricity demand in January. The forecast for regional electricity demand reached 22,800 megawatts (MW) on Jan. 16, exceeding the record for winter peak demand set the day before of 22,727 MW. New England's Independent System Operator (ISO-NE) requested that customers voluntarily reduce their energy use by turning off unneeded lights, especially holiday lighting, and appliances; turning off unnecessary office equipment when leaving work; and deferring laundry and other household chores requiring electricity until 9:00 p.m. or later. See press releases at http://www.iso-ne.com/iso_news/newnews.html.

CT Annual energy efficiency report to legislature: The Connecticut Energy Conservation Management Board's (ECMB) issued its 2003 Annual Report to the Connecticut legislature summarizing key impacts of the utilities' energy efficiency program activities. For a copy of the report, go to the ECMB's Web site at http://www.dpuc.state.ct.us/Electric.nsf/ByECMB?OpenView

DPUC docket on energy efficiency activities continues: The Department of Public Utility Control issued an order approving Connecticut Light & Power and United Illuminating's Joint 2004 Conservation and Load Management Plan (Order in Docket #03-11-01). While funding for the CL&M programs was reduced considerably from previous year levels due to transfer of funds to offset state budget shortfalls, it appears there may some additional monies available or restored for funding in 2004, for a total of $69 million. For more information, see the DPUC Web site at http://www.dpuc.state.ct.us/Electric.nsf/ByECMB?OpenView. Additional issues are being addressed in Phase II of the docket, including: 1) the utilities' proposed performance indicators and management incentive metrics; 2) a report regarding Connecticut's Conservation and Load Management Administrator Performance, Plans and Incentives; and 3) demand response program issues. Comments may be filed up until (a revised) hearing date of Apr. 2nd.

Remaining energy efficiency potential study near completion: The ECMB will be releasing its study on remaining achievable energy efficiency potential in the state. Keep an eye out for this report on the ECMB Web site (same address as above).

ISO-NE Demand Response RFP results expected soon: Results from the ISO-NE emergency demand response RFP for Southwest Connecticut are not yet final, but some of RFPs are expected to include energy efficiency projects. Watch for ISO-NE RFP contract results at http://www.iso-ne.com/RFPs/.

Connecticut climate change report released: The report "Connecticut Climate Change Stakeholders Dialog: Recommendations to the Governor's Steering Committee" was issued in January, and includes specific recommendations regarding adopting appliance standards, updating building energy codes, and a host of energy efficiency investment related activities. For more information, see report at http://www.ctclimatechange.com/ct_action_plan.html.

Connecticut Energy Advisory Board's (CEAB) draft energy plan: The CEAB's issued a draft energy plan last November, and comments were due beginning of January. NEEP submitted comments on the draft plan, which was comprehensive and largely supported the role of energy efficiency in helping meet multiple state policy objectives. Several public hearings were held during January, and a final plan is due to be released at the end of March. For more information, see the CEAB Web site at http://www.cerc.com/detpages/news807.html.

ME Efficiency Maine partners with Home Depot stores: Maine is the first state to partner with Home Depot on efficiency programs targeted to small businesses. Maine contractors can now offer business customers cash incentives at all Home Depot stores in Maine (total of 10), a catalyst to help move energy efficiency equipment into buildings and overcome barriers of product availability and cost. This development represents the first-of-its kind partnership with the home improvement center and state program targeted to businesses, which in turn offers big opportunities for contractors. For more information about this partnership, read Efficiency Maine's press release at http://www.efficiencymaine.com/releases/03-6821HomeDepot.pdf.

New energy efficiency workshops launched: The Maine PUC, the Maine Community College System and the U.S. D.O.E. launched "The Maine Energy Code and Residential Performance Building," a day-long workshop, in February. It was designed for professionals in Maine's residential construction industry and was presented at five of the Maine Community College campuses during the week of Feb. 23rd. For more information see press release on the Maine PUC's Web site at http://www.state.me.us/mpuc/homepage.htm.

Building code guidelines report presented to legislature: The Maine Public Utilities Commission (MPUC) issued a report on "Above Code Building Energy Guidelines" on Jan. 26 to the Joint Standing Committee on Utilities and Energy. Prepared by NEEP, the Report was requested for information purposes and was well received by the Committee. The MPUC also issued a Final Report on Building Energy Codes, which includes an economic analysis of energy savings resulting from meeting IECC standards vs. increased construction costs. For more information, go to http://www.state.me.us/mpuc/2004legislation/2004reports.htm.

Energy policy report: The Maine Energy Resources Council and Office of Energy Independence and Security issued a 2004 Workplan and Report to the Legislature in January. Informed by a report on "Maine Energy Policy: Overview and Opportunities for Improvement" to the Energy Resources Council, the Workplan includes a broad range of recommendations regarding the importance of energy efficiency activities, including adopting appliances standards and implementing a residential energy code, as key to helping the state improve its energy policy. For more information see http://www.state.me.us/spo/energy/energycouncil/pubs.php.

Maine's greenhouse gas initiative in full swing: The GHG Initiative began in Fall 2003, with stakeholder meetings convening this past January. The process, facilitated by Raab Associates, includes a number of working groups, including one on Buildings Facilities and Manufacturing, in which Efficiency Maine is playing a key role to communicate the role of energy efficiency in helping reduce energy use, and thus GHG emissions, in the region. For more information, see the Initiative Web site at http://maineghg.raabassociates.org/.

MA Energy efficiency program administrators file 2004 Energy Efficiency Plans with Division of Energy Resources (DOER) and Dept. of Telecommunications and Energy (DTE): The state's four electric utilities have all submitted their 2004 Energy Efficiency Plans (in the form of negotiated settlements) with DOER and DTE. The total combined proposed budgets are $126 million. Once DOER reviews and approves the plans for consistency with the state's energy efficiency goals, the plans then go to DTE for cost-effectiveness review. The plans will likely be approved in early spring.

Massachusetts task force on electric reliability and outage preparedness issues report on reliability standards: On Mar. 12, the Task Force, headed by the Department of Telecommunications and Energy's (DTE) Chairman Paul Afonso, released its 80-page report determining that the state's electric infrastructure currently meets all reliability standards. However, it recognizes that the level of demand for electricity will change over time, as will the number and types of resources available to serve Massachusetts businesses and residents. The Task Force offers a comprehensive set of recommendations to ensure that state customers will continue to benefit from a stable, reliable electric system - these include specific recommendations regarding the need to invest in conservation, energy efficiency and distributed generation. To download a copy of the report, go to http://www.state.ma.us/dpu.

NH New Hampshire PUC approves settlement agreement on utilities' 2004 Joint Energy Efficiency Plan: The NH PUC approved the utilities' "Joint Petition for Approval of 'Core' Energy Efficiency Programs" (Docket No. DE 03-169), which includes $15 million to fund a range of energy efficiency activities. To review the order, go to http://www.puc.state.nh.us/Regulatory/orders.htm.

New Hampshire core energy efficiency program results available: The NH electric utilities have issued their quarterly report on the core energy efficiency programs covering the period Jun. 30, 2002 to Dec. 31, 2003, the duration that the core programs have been in place. The results are impressive in terms of actual and expected savings exceeding goals. See http://www.puc.state.nh.us/Electric/coreenergyefficiencyprograms.htm.

New energy code now in effect: As of Jan. 1, there is a new application for compliance with the International Energy Conservation Code 2000 (IECC2000) code which was adopted by the state on Sept. 14, 2002.

NJ Program administrator transition plan for 2004: The transition of energy efficiency program administration from the electric and gas utilities in New Jersey to the Board of Public Utilities (BPU) continues. The utilities and the Office of Clean Energy are finalizing a Memorandum of Understanding for the programs. The BPU plans to commence a proceeding in April to determine funding levels and programs for the years 2005-2008. In addition, the BPU has retained a fiscal agent to collect the energy efficiency funds.

NY New York Energy $mart Report: The New York State Energy Research and Development Authority (NYSERDA) is currently working on its annual New York Energy $mart Report, which will provide a summary of program impacts for 2003. The Report will be available in mid-to-late June on NYSERDA's Web site at www.nyserda.org/publications.html. For other information regarding NYSERDA's energy efficiency activities and developments, see http://www.nyserda.org/press.html#January.

The Long Island Power Authority (LIPA) releases its first comprehensive energy plan: The Plan outlines the region's electric energy priorities for next decade (2004-2013) and presents a framework for a wide range of crucial decisions by providing a flexible and dynamic energy planning process that incorporates investment in customer programs; energy efficiency; conservation; new technologies; encouraging development of merchant transmission and generation; adding off-island transmission interconnection capability; enhancing existing power supply resources; and evaluating the need to build new ones. For more information, read the press release at http://www.lipower.org/newscenter/pr/2004/march9.energyplan.html, or a copy of the plan at http://www.lipower.org/projects/energyplan04.html.

LIPA sets new winter peak demand record in January: Like other regions in the Northeast, LIPA's winter demand for electricity set new records, reflecting a four percent increase over the previous winter peak demand record. While LIPA had sufficient electric energy supply to meet demand during the cold snap, it requested that its customers use their electricity wisely, reinforcing the habit of conserving energy throughout the year. See press release at http://www.lipower.org/newscenter/pr/2004/jan16.record.html.

RI Narragansett Electric Company energy plan approved: The Rhode Island DSM Collaborative's Settlement Agreement for Narragansett Electric Company's (NECo) 2004 DSM Plan was approved by the RI Public Utilities Commission last December. A Report and Order have not yet been issued, but are forthcoming. The NECo DSM plan includes $22 million in funding for energy efficiency activities, including a range of regional program efforts. For a copy of the settlement agreement, go to http://www.ripuc.org/order/electric.html.

VT Efficiency Vermont 2004 annual plan: Efficiency Vermont filed its 2004 Annual Plan last November with the Vermont Public Service Board and Department of Public Service, and the plan, with an annual budget of $15 million, was approved by the PSB this January. To view a copy, go to http://www.efficiencyvermont.com/index.cfm?L1=292&L2=419&sub=bus.

2004 comprehensive energy and electric plan: The Department of Public Service (DPS) held three workshops during January through the beginning of March to obtain further public input and to discuss in greater depth the issues addressed by its draft energy plan. A list of topics discussed at the workshop can be found at the DPS Web site at http://www.state.vt.us/psd/Menu/DPS_State_Plans.htm. There have been serious concerns among advocates that the draft plan did not give adequate focus to the role of energy efficiency in helping the state meet its energy needs. A revised draft of the plan is due to be released at the end of March, and a final plan is targeted for completion in early May.

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An Update on Energy Efficiency Policies Across the Northeast
NEW ENGLAND	New England experienced consecutive days of record-breaking winter electricity demand in January. The forecast for regional electricity demand reached 22,800 megawatts (MW) on Jan. 16, exceeding the record for winter peak demand set the day before of 22,727 MW. New England's Independent System Operator (ISO-NE) requested that customers voluntarily reduce their energy use by turning off unneeded lights, especially holiday lighting, and appliances; turning off unnecessary office equipment when leaving work; and deferring laundry and other household chores requiring electricity until 9:00 p.m. or later. See press releases at http://www.iso-ne.com/iso_news/newnews.html.
CT	Annual energy efficiency report to legislature: The Connecticut Energy Conservation Management Board's (ECMB) issued its 2003 Annual Report to the Connecticut legislature summarizing key impacts of the utilities' energy efficiency program activities. For a copy of the report, go to the ECMB's Web site at http://www.dpuc.state.ct.us/Electric.nsf/ByECMB?OpenView
	DPUC docket on energy efficiency activities continues: The Department of Public Utility Control issued an order approving Connecticut Light & Power and United Illuminating's Joint 2004 Conservation and Load Management Plan (Order in Docket #03-11-01). While funding for the CL&M programs was reduced considerably from previous year levels due to transfer of funds to offset state budget shortfalls, it appears there may some additional monies available or restored for funding in 2004, for a total of $69 million. For more information, see the DPUC Web site at http://www.dpuc.state.ct.us/Electric.nsf/ByECMB?OpenView. Additional issues are being addressed in Phase II of the docket, including: 1) the utilities' proposed performance indicators and management incentive metrics; 2) a report regarding Connecticut's Conservation and Load Management Administrator Performance, Plans and Incentives; and 3) demand response program issues. Comments may be filed up until (a revised) hearing date of Apr. 2nd.
	Remaining energy efficiency potential study near completion: The ECMB will be releasing its study on remaining achievable energy efficiency potential in the state. Keep an eye out for this report on the ECMB Web site (same address as above).
	ISO-NE Demand Response RFP results expected soon: Results from the ISO-NE emergency demand response RFP for Southwest Connecticut are not yet final, but some of RFPs are expected to include energy efficiency projects. Watch for ISO-NE RFP contract results at http://www.iso-ne.com/RFPs/.
	Connecticut climate change report released: The report "Connecticut Climate Change Stakeholders Dialog: Recommendations to the Governor's Steering Committee" was issued in January, and includes specific recommendations regarding adopting appliance standards, updating building energy codes, and a host of energy efficiency investment related activities. For more information, see report at http://www.ctclimatechange.com/ct_action_plan.html.
	Connecticut Energy Advisory Board's (CEAB) draft energy plan: The CEAB's issued a draft energy plan last November, and comments were due beginning of January. NEEP submitted comments on the draft plan, which was comprehensive and largely supported the role of energy efficiency in helping meet multiple state policy objectives. Several public hearings were held during January, and a final plan is due to be released at the end of March. For more information, see the CEAB Web site at http://www.cerc.com/detpages/news807.html.
ME	Efficiency Maine partners with Home Depot stores: Maine is the first state to partner with Home Depot on efficiency programs targeted to small businesses. Maine contractors can now offer business customers cash incentives at all Home Depot stores in Maine (total of 10), a catalyst to help move energy efficiency equipment into buildings and overcome barriers of product availability and cost. This development represents the first-of-its kind partnership with the home improvement center and state program targeted to businesses, which in turn offers big opportunities for contractors. For more information about this partnership, read Efficiency Maine's press release at http://www.efficiencymaine.com/releases/03-6821HomeDepot.pdf.
	New energy efficiency workshops launched: The Maine PUC, the Maine Community College System and the U.S. D.O.E. launched "The Maine Energy Code and Residential Performance Building," a day-long workshop, in February. It was designed for professionals in Maine's residential construction industry and was presented at five of the Maine Community College campuses during the week of Feb. 23rd. For more information see press release on the Maine PUC's Web site at http://www.state.me.us/mpuc/homepage.htm.
	Building code guidelines report presented to legislature: The Maine Public Utilities Commission (MPUC) issued a report on "Above Code Building Energy Guidelines" on Jan. 26 to the Joint Standing Committee on Utilities and Energy. Prepared by NEEP, the Report was requested for information purposes and was well received by the Committee. The MPUC also issued a Final Report on Building Energy Codes, which includes an economic analysis of energy savings resulting from meeting IECC standards vs. increased construction costs. For more information, go to http://www.state.me.us/mpuc/2004legislation/2004reports.htm.
	Energy policy report: The Maine Energy Resources Council and Office of Energy Independence and Security issued a 2004 Workplan and Report to the Legislature in January. Informed by a report on "Maine Energy Policy: Overview and Opportunities for Improvement" to the Energy Resources Council, the Workplan includes a broad range of recommendations regarding the importance of energy efficiency activities, including adopting appliances standards and implementing a residential energy code, as key to helping the state improve its energy policy. For more information see http://www.state.me.us/spo/energy/energycouncil/pubs.php.
	Maine's greenhouse gas initiative in full swing: The GHG Initiative began in Fall 2003, with stakeholder meetings convening this past January. The process, facilitated by Raab Associates, includes a number of working groups, including one on Buildings Facilities and Manufacturing, in which Efficiency Maine is playing a key role to communicate the role of energy efficiency in helping reduce energy use, and thus GHG emissions, in the region. For more information, see the Initiative Web site at http://maineghg.raabassociates.org/.
MA	Energy efficiency program administrators file 2004 Energy Efficiency Plans with Division of Energy Resources (DOER) and Dept. of Telecommunications and Energy (DTE): The state's four electric utilities have all submitted their 2004 Energy Efficiency Plans (in the form of negotiated settlements) with DOER and DTE. The total combined proposed budgets are $126 million. Once DOER reviews and approves the plans for consistency with the state's energy efficiency goals, the plans then go to DTE for cost-effectiveness review. The plans will likely be approved in early spring.
	Massachusetts task force on electric reliability and outage preparedness issues report on reliability standards: On Mar. 12, the Task Force, headed by the Department of Telecommunications and Energy's (DTE) Chairman Paul Afonso, released its 80-page report determining that the state's electric infrastructure currently meets all reliability standards. However, it recognizes that the level of demand for electricity will change over time, as will the number and types of resources available to serve Massachusetts businesses and residents. The Task Force offers a comprehensive set of recommendations to ensure that state customers will continue to benefit from a stable, reliable electric system - these include specific recommendations regarding the need to invest in conservation, energy efficiency and distributed generation. To download a copy of the report, go to http://www.state.ma.us/dpu.
NH	New Hampshire PUC approves settlement agreement on utilities' 2004 Joint Energy Efficiency Plan: The NH PUC approved the utilities' "Joint Petition for Approval of 'Core' Energy Efficiency Programs" (Docket No. DE 03-169), which includes $15 million to fund a range of energy efficiency activities. To review the order, go to http://www.puc.state.nh.us/Regulatory/orders.htm.
	New Hampshire core energy efficiency program results available: The NH electric utilities have issued their quarterly report on the core energy efficiency programs covering the period Jun. 30, 2002 to Dec. 31, 2003, the duration that the core programs have been in place. The results are impressive in terms of actual and expected savings exceeding goals. See http://www.puc.state.nh.us/Electric/coreenergyefficiencyprograms.htm.
	New energy code now in effect: As of Jan. 1, there is a new application for compliance with the International Energy Conservation Code 2000 (IECC2000) code which was adopted by the state on Sept. 14, 2002.
NJ	Program administrator transition plan for 2004: The transition of energy efficiency program administration from the electric and gas utilities in New Jersey to the Board of Public Utilities (BPU) continues. The utilities and the Office of Clean Energy are finalizing a Memorandum of Understanding for the programs. The BPU plans to commence a proceeding in April to determine funding levels and programs for the years 2005-2008. In addition, the BPU has retained a fiscal agent to collect the energy efficiency funds.
NY	New York Energy $mart Report: The New York State Energy Research and Development Authority (NYSERDA) is currently working on its annual New York Energy $mart Report, which will provide a summary of program impacts for 2003. The Report will be available in mid-to-late June on NYSERDA's Web site at www.nyserda.org/publications.html. For other information regarding NYSERDA's energy efficiency activities and developments, see http://www.nyserda.org/press.html#January.
	The Long Island Power Authority (LIPA) releases its first comprehensive energy plan: The Plan outlines the region's electric energy priorities for next decade (2004-2013) and presents a framework for a wide range of crucial decisions by providing a flexible and dynamic energy planning process that incorporates investment in customer programs; energy efficiency; conservation; new technologies; encouraging development of merchant transmission and generation; adding off-island transmission interconnection capability; enhancing existing power supply resources; and evaluating the need to build new ones. For more information, read the press release at http://www.lipower.org/newscenter/pr/2004/march9.energyplan.html, or a copy of the plan at http://www.lipower.org/projects/energyplan04.html.
	LIPA sets new winter peak demand record in January: Like other regions in the Northeast, LIPA's winter demand for electricity set new records, reflecting a four percent increase over the previous winter peak demand record. While LIPA had sufficient electric energy supply to meet demand during the cold snap, it requested that its customers use their electricity wisely, reinforcing the habit of conserving energy throughout the year. See press release at http://www.lipower.org/newscenter/pr/2004/jan16.record.html.
RI	Narragansett Electric Company energy plan approved: The Rhode Island DSM Collaborative's Settlement Agreement for Narragansett Electric Company's (NECo) 2004 DSM Plan was approved by the RI Public Utilities Commission last December. A Report and Order have not yet been issued, but are forthcoming. The NECo DSM plan includes $22 million in funding for energy efficiency activities, including a range of regional program efforts. For a copy of the settlement agreement, go to http://www.ripuc.org/order/electric.html.
VT	Efficiency Vermont 2004 annual plan: Efficiency Vermont filed its 2004 Annual Plan last November with the Vermont Public Service Board and Department of Public Service, and the plan, with an annual budget of $15 million, was approved by the PSB this January. To view a copy, go to http://www.efficiencyvermont.com/index.cfm?L1=292&L2=419&sub=bus.
	2004 comprehensive energy and electric plan: The Department of Public Service (DPS) held three workshops during January through the beginning of March to obtain further public input and to discuss in greater depth the issues addressed by its draft energy plan. A list of topics discussed at the workshop can be found at the DPS Web site at http://www.state.vt.us/psd/Menu/DPS_State_Plans.htm. There have been serious concerns among advocates that the draft plan did not give adequate focus to the role of energy efficiency in helping the state meet its energy needs. A revised draft of the plan is due to be released at the end of March, and a final plan is targeted for completion in early May.