
October 6, 2006 |
2006-R-0600 | |
UTILITY ENERGY CONSERVATION PROGRAMS | ||
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By: Kevin McCarthy, Principal Analyst | ||
You asked for information on utility energy conservation programs.
SUMMARY
The two electric companies have similar conservation programs. The primary residential energy conservation subsidy program is the Smart Living Catalog, which offers energy-efficient products at a substantial discount over retail. Other programs include incentives for retiring a family's second refrigerator or freezer, if it is working and at least ten years old and for reducing air conditioning use during periods of peak demand.
Gas company conservation programs are substantially more modest, and focus on low-income households.
Legislation passed in 2005 requires municipal electric utilities to impose a one mill per kilowatt hour (kwh) charge to fund conservation or renewable energy programs. The charge will increase in five steps, rising to two and one half mills per kwh starting in 2011. The utilities are using the funds raised by this charge to distribute energy efficient compact fluorescent lights and to promote the purchase of energy efficient appliances, among other things.
ELECTRIC AND GAS COMPANY CONSERVATION PROGRAMS
Connecticut Light & Power (CL&P) and United Illuminating (UI) have similar conservation programs, which are funded by a three mill per kwh charge that is mandated by law. The primary residential energy conservation subsidy program is the Smart Living Catalog, which offers energy-efficient products at a substantial discount over retail. The catalog offers a wide variety of products, including lighting; heating, ventilation, and air conditioning; and thermostats. The catalog also offers water efficient products. CL&P and UI mail the catalog to all of their residential customers. It is also available on the Web at http: //www. energyfederation. org/smartliving/default. php/. The discounts and the program's administrative costs are recovered through a charge on electric bills.
Both electric companies also offer a $ 50 incentive to retire second refrigerators and freezers that are working and at least ten years old. Customers of both companies in the southwestern third of the state who have central air conditioning can participate in the Cool Sentry program. Under this program, customers receive a $ 100 payment for installing
a device to their air-conditioning unit. If a severe power emergency occurs during the cooling season, a signal is sent to activate the devices in the area to reduce electricity use during the emergency. This helps to lower the region's demand for electricity with only a minor change of indoor temperature.
Both companies offer a wide range of conservation programs for commercial, industrial, and municipal customers. UI has a single website for all of its programs, www. uinet. com/clm/index. asp. The websites for CL&P's residential and business programs are www. cl-p. com/clmres/indexclmres. asp and www. cl-p. com/clmbus/indexclmbus. asp, respectively.
The electric and gas companies, together with community action agencies and the state, operate the WRAP program. This weatherization program helps low income homeowners and renters who are eligible for the Connecticut Energy Assistance Program (CEAP, described below) reduce their energy use and lower their energy bills. These services are provided on a first-come, first-served basis, based on the availability of funds. Further information about WRAP can be obtained by calling 800. 388. 9727 or going to the program's website, www. cl-p. com/clmres/energy/wrap. asp.
MUNICIPAL ELECTRIC UTILITIES
Legislation passed in 2005 (PA 05-1, June Special Session) requires municipal electric utilities to impose a one mill per kwh charge to fund conservation or renewable energy programs. The charge will increase in five steps, rising to two and one half mills per kwh starting in 2011. The money raised by this charge goes into a fund administered by the Connecticut Municipal Electric Energy Cooperative (CMEEC), which uses it to pay for conservation programs operated by the individual utilities.
Under the CMEEC plan, municipal utilities are promoting efficiency through the distribution of energy efficient compact fluorescent lights and other measures. In the residential sector, the municipal utilities have distributed over 21,000 compact fluorescent lights since the beginning of 2005, over 3,000 of which were installed in low income housing units. In several CMMEC municipalities, all new customers receive a “welcome bag” which includes a compact fluorescent light, conservation tips, an energy calculator, lighting catalogs, and other information to help them understand the importance of conservation. The utilities have also mailed over 60,000 Energy Star® Lighting catalogues to their customers. Three of the utilities have residential programs that target low income customers, primarily through such low cost measures as water heater blankets and low flow shower heads.
The utilities have begun a program that provides rebates to their customers who buy Energy Star® qualified clothes washers, dishwashers, refrigerators, and room air conditioners. The Norwich municipal utility, which also provides gas service, has completed an “all fuels” residential low income efficiency and weatherization pilot program, which identifies possible conservation measures, regardless of whether the measures saves electricity, natural gas, or heating oil.
In the commercial/industrial sector, the utilities are targeting their energy efficiency efforts at the top 15 municipal utility customers to substantially reduce peak demand requirements and federally mandated transmission congestion charges that are paid by all CMEEC members. Individual projects range from lighting to space conditioning to process equipment replacement and have included retail, office, and industrial customers. The utilities are developing incentives for smaller businesses to improve energy efficiency in lighting; heating, ventilation, and air conditioning; refrigeration; and water hearing.
The utilities have also “benchmarked” municipal buildings including schools, fire and police stations, town halls senior centers, libraries and water and waste water treatment plants. Benchmarking compares the energy use in such facilities to comparable buildings as a way of determining the potential for energy conservation investments. As part of this initiative, 18 school buildings have received Energy Star® energy audits.
KM: tjo