You asked for information regarding the potential cost and energy savings that could be realized by full utilization of retail and residential energy conservation programs like the federal Energy Star program.

SUMMARY

The 2007-08 Joint Plan of the Energy Conservation Management Board (ECMB) includes specified projections for retail product conservation programs administered by Connecticut Light & Power (CL & P) and United Illuminating (UI). Among these programs is the federal Energy Star initiative; a program intended to promote energy efficient appliances and energy efficient homes.

ECMB projects that CL & P will spend $ 5. 6 million for retail product conservation and consumers will spend an additional $ 1. 6 million. This spending is estimated to result in a combined $ 25. 8 million in electrical system benefit, a figure derived from consideration of the combined rate savings generated from reduced kilowatt demand cost. In addition, ECMB projects consumer spending on home energy saving investments will be $ 4. 4 million, with CL & P spending $ 18. 4 million more. Together these investment dollars are anticipated to result in $ 44 million in electrical system benefit.

ECMB projects UI will spend $ 1. 25 million in retail product conservation with $ 262,000 thousand spent by consumers. These efforts amount to a total expenditure of $ 1. 511 million, and are anticipated to net $ 4. 627 million in electric system benefit. The projection for UI residential energy investment spending is $ 3. 9 million with over $ 321 thousand spent by consumers. Projected electrical system savings exceed $ 8. 8 million.

Together the combined spending of CL & P, UI, and consumers on retail product and residential-based energy conservation is anticipated to amount in $ 82. 4 million in electric system benefit; a ratio of 1: 2. 4. This is a slight decrease from previous years.

ENERGY STAR

Background

The Energy Star program is a federally sponsored product-labeling initiative. First introduced by the Environmental Protection Agency (EPA) in 1992, Energy Star promotes energy conservation by providing consumers with information about product efficiency. Now covering 56 specified appliance categories, products bearing the Energy Star label have been designated by the EPA and Department of Energy (DOE) as compliant with strict energy efficiency criteria.

Energy Star is designed to work within the marketplace. Since products with the Energy Star label are the most efficient within the relevant appliance category, in the long run, consumers are supposed to save money in energy costs by choosing Energy Star. Since energy costs are such a large portion of the overall cost of a new appliance, in theory, product labeling encourages consumers to consider energy efficiency along with sticker price.

In recent years, the Energy Star program has expanded. New standards have been adopted for home heating and cooling systems, commercial food service appliances, and office supply products. Over 360,000 Energy Star qualifying homes have now been built and over 12,000 commercial and industrial facilities have adopted Energy Star standards. An Energy Star facility (home or otherwise) is one that uses Energy Star approved heating, cooling, and insulation technology for efficient energy use.

Energy Savings Estimates

In their 2005 Annual Report, Energy Star officials estimated that the program saved approximately $ 12 billion dollars in energy spending, 150 billion in kilowatt-hours, and 34 million in metric tons of carbon equivalent emissions. These estimates were derived from purchase figures showing aggregate sales of over two billion Energy Star-rated products since 1992. The Alliance to Save Energy similarly estimated that “Every federal dollar spent on (Energy Star) programs yields average energy bill savings of 75$ or more in consumer energy bills…”

Energy Star rated products offer varying degrees of energy efficiency. Energy Star ventilating fans, for instance, are 70% more efficient than normal ventilating fans. By contrast, Energy Star refrigerators are only 15% more energy efficient than refrigerators without the Energy Star label. In general, however, EPA and DOE officials believe that Energy Star products use somewhere between 10-50% less energy than similar products.

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