RI Public Utilities Commission Votes for Cost-Saving Energy Efficiency Plan
PROVIDENCE, RI – On December 20, 2016 the Rhode Island Public Utilities Commission unanimously approved the 2017 Energy Efficiency and System Reliability Plans for Rhode Island in order to help save consumers money on their utility bills and boost Rhode Island’s economy. This plan was developed collaboratively by key stakeholders representing a wide range of consumer interests, including the Division of Public Utilities and Carriers, the Office of Energy Resources, the Energy Efficiency and Resource Management Council, National Grid, Acadia Center, People’s Power and Light, and Emerald Cities Rhode Island.
In 2006, Rhode Island adopted a strategic and economic approach to investing in low cost energy efficiency to reduce consumers’ energy costs. In 2017, electricity from power plants like the Manchester Street Station in Providence will cost about 9.3 cents per kilowatt-hour, while the cost of eliminating wasted energy through efficiency improvements is about 5.79 cents per kilowatt-hour.
“Energy efficiency is an energy resource just like power from the coal and natural gas-fired power plants at Salem Harbor, Brayton Point, or Manchester Street. But energy efficiency is much cheaper, cleaner, and lower risk. In fact, the Public Utilities Commission’s decision to approve this plan is the best way to help customers save money,” said Acadia Center Rhode Island Director Abigail Anthony. Dr. Anthony represents environmental interests on the state’s Energy Efficiency and Resource Management Council (EERMC), which provides independent input and oversight to National Grid’s electric and natural gas efficiency programs.
Rhode Island’s energy efficiency programs help residents and businesses make energy efficient decisions by providing technical assistance and information coupled with financial incentives. For example, a residential electric or natural gas customer is eligible to receive a free home energy assessment during which the auditor will evaluate the lighting, insulation, appliance efficiency, and overall energy “fitness” of the home. The auditor will also inform the customer if she is eligible for financial incentives to help reduce the out-of-pocket cost of investing in energy efficient improvements, such as weatherization or new heating equipment. Loans are available to help homeowners and business owners with the up-front costs of efficiency upgrades.
These programs are proven and working for Rhode Island. The American Council for an Energy Efficient Economy ranked Rhode Island first in the nation for the state’s energy efficiency programs and policies. In addition to helping Rhode Islanders lower their utility bills, the state’s investments in low cost energy efficiency reduce the cost of doing business in the state, create jobs, and boost economic activity. The avoided spending on electricity and natural gas from the 2017 Energy Efficiency Plan will generate $314 million in economic benefits to Rhode Islanders. Rhode Island’s energy efficiency programs directly support 696 jobs across 1,009 firms, more than 79 percent of which are located in Rhode Island.
In 2014, The Division of Public Utilities–the state agency charged with watching out for consumer interests– commissioned the research firm Synapse Energy Economics to see what efficiency is really doing for our electric bills. Analysis of the 2017 Energy Efficiency Plan finds that the average residential consumer that undertakes energy efficiency actions will save 2% on her electric bill by replacing inefficient lighting and appliances and upgrading home insulation and weatherization. Factor in savings on natural gas or fuel oil use and total spending on energy is even lower. Additionally, small business customers, who are eligible for free energy audits, can save as much as 35% by installing high efficiency equipment and making recommended retrofits.
Contact:
Abigail Anthony, Rhode Island Director
401.474.8876, aanthony@acadiacenter.org
Krysia Wazny, Communications Associate
617.742.0054 x107, kwazny@acadiacenter.org
Connecticut Rules in Favor of Consumers and Clean Energy in Electric Rate Case
Hartford, Conn.– Acadia Center applauds the announcement today by the Public Utility Regulatory Authority (PURA) of its decision to dramatically lower the fixed charge for United Illuminating’s residential customers from $17.25 to $9.64. This 45% reduction represents a crucial step in implementing a new law enacted by the legislature last year to limit fixed charges, which customers pay monthly regardless of how much energy they use.
Bill Dornbos, Director of Acadia Center’s Connecticut Office, said, “Consumers everywhere prefer choice and control, and this lower monthly fixed charge will give customers substantially more control over their electric bills. The new rate design will also help promote energy efficiency and renewable energy, more closely aligning the state’s electric rate structure with its energy policy.”
By enacting this significant reduction, Connecticut brings UI’s fixed charge down to the levels of surrounding states and recognizes that high fixed charges run counter to consumer interests, leading the nation at a time when utilities around the country are petitioning for significantly higher fixed charges.
Acadia Center thanks the PURA, Office of Consumer Counsel, Attorney General’s Office, and the legislature for their contributions to bringing this relief to UI’s electric customers.
Contacts:
Bill Dornbos, Senior Attorney and Director, Connecticut Office
860-246-7121 x202, wdornbos@acadiacenter.org
Mark LeBel, Staff Attorney
617.742.0054 x104, mlebel@acadiacenter.org
RGGI Auction Prices Reflect Need for Program Reforms
BOSTON — Price declines in the latest Regional Greenhouse Gas Initiative (RGGI) auction demonstrate the need to address an oversupply of allowances caused by faster-than-anticipated emissions declines. In the latest auction, all 14,791,315 available allowances were sold at a clearing price of $3.55, generating $52,509,168 in revenue for reinvestment. This brings the program’s total revenue to $2.64 billion-most of which has been used to fund energy efficiency and other consumer benefit programs. The Auction 34 clearing price is 22% lower than the previous auction and 53% lower than the clearing price from one year ago. This marks the lowest auction clearing price since December of 2013 and the least amount of auction revenue raised at a single auction since December of 2012.
“State leadership to combat climate change has never been more important,” said Acadia Center President, Daniel Sosland. “Low prices and declining emissions confirm that now is the time for RGGI states to strengthen the program and continue leading the nation on climate.”
“Declining RGGI prices are occurring alongside declining emissions,” said Jordan Stutt, Policy Analyst with Acadia Center. “Electric sector carbon emissions through the first three quarters of 2016 were 5% below the same period last year — the lowest emissions level in the program’s history, and this is poised to be the eighth consecutive year in which emissions fall below the RGGI cap.”
With the market oversupplied, the ongoing 2016 Program Review offers the states an opportunity to make necessary reforms. “We now have eight years of experience demonstrating that the electric sector can achieve ambitious emissions reductions at low costs; it’s time for that experience to be reflected in ambitious reforms,” said Peter Shattuck, Director of Acadia Center’s Clean Energy Initiative. “The states must use the Program Review to establish more stringent cap levels through 2030 and to implement program design elements that account for the continuing decline in emissions.”
Information on RGGI’s performance to date and necessary reforms through the 2016 Program Review are described in Acadia Center’s recent RGGI Status Report:
Additional information on the benefits of RGGI can be found at https://www.cleanenergyeconomy.us/
RGGI Overview:
The Regional Greenhouse Gas Initiative (RGGI) is the first mandatory, market-based effort in the United States to reduce greenhouse gas emissions. Nine northeastern and mid-Atlantic states reduce CO2 emissions by setting an overall limit on emissions “allowances,” which permit power plants to dispose of CO2 in the atmosphere. States sell allowances through auctions and invest proceeds in consumer benefit programs: energy efficiency, renewable energy, and other programs.
The official RGGI web site is: www.rggi.org
States Considering Future of Northeast Climate Program
BOSTON — Nine states in the Regional Greenhouse Gas Initiative (RGGI) will be hosting a webinar today to discuss the future of the eight-year cooperative effort to reduce power plant carbon pollution. Materials that will be discussed during the webinar indicate that states will take the important step of establishing emissions limits through 2030, but the ambition and scope of new rules remains unresolved.
“RGGI’s success shows that states can and should lead on climate,” said Acadia Center President Daniel Sosland. Acadia Center’s July 2016 report Measuring Success shows that states in RGGI have experienced 3.6% more economic growth than states that have yet to act on climate, even as emissions have declined 16% more in RGGI states than in other states.
The core decision about RGGI’s future centers on the cap level — the overall limit on carbon pollution — and states are describing two options on today’s webinar: a cap that continues the current 2.5% annual decline, and a more ambitious cap that declines by 3.5% annually.
In addition to potential cap levels, the RGGI states will be discussing possible changes to other program design elements including accounting for banked and surplus emissions allowances and price controls. “These program designs will be crucial to ensuring that the RGGI cap achieves necessary reduction targets and avoids being burdened by a glut of allowances leading to insignificant carbon prices,” said Jordan Stutt, Policy Analyst in Acadia Center’s Clean Energy Initiative. “Improvements to existing design elements and the establishment of a strong emissions containment reserve will show that the RGGI states are committed to improving—not just maintaining—their model program.”
“State action on climate is now more important than ever,” said Peter Shattuck, Director of Acadia Center’s Clean Energy Initiative. “During the hottest year on record and with federal action uncertain, building on RGGI’s success is vital. Establishing ambitious targets through 2030 will show the country and the world that the RGGI states intend to remain at the forefront of climate action.”
Information on RGGI’s performance to date and necessary reforms through the 2016 Program Review are described in Acadia Center’s recent RGGI Status Report:
Additional information on the benefits of RGGI can be found at https://www.cleanenergyeconomy.us/
RGGI Overview:
The Regional Greenhouse Gas Initiative (RGGI) is the first mandatory, market-based effort in the United States to reduce greenhouse gas emissions. Nine northeastern and mid-Atlantic states reduce CO2 emissions by setting an overall limit on emissions “allowances,” which permit power plants to dispose of CO2 in the atmosphere. States sell allowances through auctions and invest proceeds in consumer benefit programs: energy efficiency, renewable energy, and other programs.
The official RGGI website is: www.rggi.org
On Energy Efficiency Day, Acadia Center Celebrates New England’s Success
BOSTON – On this day, the first nationwide Energy Efficiency Day, Acadia Center commends New England its recent recognition for a long history of accomplishments in energy efficiency. New England states are among the most highly ranked in the American Council for an Energy-Efficient Economy’s (ACEEE) 2016 State Energy Efficiency Scorecard released last week, and recent action at the policy level promises to increase the region’s contribution to national energy efficiency savings.
“New England has become a leader in energy efficiency by implementing strong policies that work for consumers and strengthen the economy while helping to meet climate goals,” said Jamie Howland, Director of the Energy Efficiency and Demand Side Initiative at Acadia Center. “Through energy efficiency, we can lower utility bills, improve public health, reduce pollution, and create jobs; Acadia Center is excited to see the states recognizing and embracing these opportunities.”
In the ACEEE rankings, Massachusetts took first place for the sixth year in a row, tying this year with California. Massachusetts has proven its continued commitment to energy efficiency under its Green Communities Act of 2008 by saving a large and growing percentage of energy every year through efficiency measures, and delivering over $14.8 billion in economic benefits and energy savings for ratepayers over the last six years.
Rhode Island took first place in the scorecard’s utility policy and programs category, ranking fourth overall. The state’s Least Cost Procurement law is primarily responsible for its continued leadership on energy efficiency. First implemented 9 years ago and extended for another 5 years last summer, the policy states that distribution companies cannot acquire new electric or natural gas supply until “all-cost effective” energy efficiency measures have been exhausted. As a result, since 2008, Rhode Island has invested over $558 million in energy efficiency and consumers have realized $2 billion in economic benefits.
Vermont also ranked highly on the scorecard at third, and Connecticut and New York tied for fifth. Maine tied for 11th, gaining further distinction as the “most improved” state.
Though New Hampshire ranked 21st on the ACEEE scorecard, the state has made a significant commitment to increase energy efficiency through recent policy action. In August, the state instituted its first energy efficiency targets, approving a settlement between the Public Utilities Commission and other stakeholders to create the Energy Efficiency Resource Standard (EERS). Until now, New Hampshire has been the only state in the region without statewide targets. With the EERS, it takes a historic step towards reducing energy costs for its citizens.
Acadia Center pioneered the energy efficiency stakeholder council model to assist with the development, implementation, and review of energy efficiency programs at the state level. Staff members currently hold appointed seats on energy efficiency advisory councils in Massachusetts, Connecticut, and Rhode Island. Acadia Center looks forward to continued work with businesses, utilities, regulators and others to make sure that programs meet their goals and reach all customers.
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Acadia Center is a non-profit, research and advocacy organization committed to advancing the clean energy future. Acadia Center is at the forefront of efforts to build clean, low-carbon and consumer-friendly economies. Acadia Center provides accurate and reliable information, and offers a real-world and comprehensive approach to problem solving through innovation and collaboration.
Report Finds DEEP’s “Lead by Example” Energy Efficiency Program for State Buildings Not on Track to Meet Mandatory Energy Savings Target
Hartford, CT — Today Acadia Center released a report showing that Connecticut’s “Lead by Example” (LBE) energy efficiency program does not appear to be on track to reach its mandatory goal of a 20% reduction in energy use in state buildings by 2018. The General Assembly established the LBE program in 2011 to reduce costly energy waste in state buildings, lower the state’s significant operating expense for energy use, and make the state a model for energy efficiency and sustainability. The report finds that mandatory annual reporting for the LBE plan originally filed in 2012 has not been submitted by the Department of Energy and Environmental Protection (DEEP), as required by law. This apparent failure to report severely hampers any attempt to review and evaluate the effectiveness of the LBE program’s performance.
“As we approach the release of the state’s next Comprehensive Energy Strategy, we thought it would be important to review the state’s progress in key clean energy areas and see if our findings could help inform and improve the next strategy document,” said Bill Dornbos, Connecticut Director and Senior Attorney for Acadia Center. “Not only did we find that DEEP’s “Lead by Example” program for energy efficiency in state buildings has not progressed as intended, but we also discovered that there has been no public reporting about this crucial program for the last four years, even though Connecticut law requires it. After searching the records maintained by the General Assembly and the State Library, we turned up no reporting on the LBE program beyond the initial plan filed in mid-2012.”
“We are releasing our report today because we want this LBE program to be a success,” Dornbos continued. “We need the multi-million-dollar cost savings for our budget-constrained state agencies and the taxpayers that ultimately pay for them, we need the major reductions in energy use to help with the state’s challenge of bringing down greenhouse gas emissions as quickly as possible, and we need the state to show that it can deliver on an important energy program when it matters. We urge the General Assembly to revisit the “Lead by Example” program and conduct a thorough, independent review to determine how it can be put back on track.”
State buildings present an enormous opportunity to reduce wasteful energy use, lower energy costs for state agencies, and help trim the state’s budget deficits. One estimate for total annual energy consumption in state buildings placed it at 4.1 trillion BTUs — roughly the total annual energy use of residential housing in Hartford and Waterbury combined. The total energy cost is also significant, estimated to be as high as $200 million annually, making it one of the state’s largest operating expenses.
The magnitude of the efficiency opportunity in Connecticut’s state buildings is unclear — an assessment of the potential for energy savings in state buildings has not been performed — but it would likely be cost-effective to reduce energy use in this sector by at least 20 to 30% overall. Energy savings of that size could result in approximately $40 to 60 million in annual savings on energy costs for state agencies. Current LBE program performance does not appear to be reaching these levels.
Acadia Center’s report on the status of LBE implementation in state buildings in Connecticut is available here.
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Acadia Center is a non-profit, research, and advocacy organization committed to advancing the clean energy future. Acadia Center is at the forefront of efforts to build clean, low-carbon, and consumer-friendly economies. Acadia Center provides accurate and reliable information and offers a real-world and comprehensive approach to problem solving through innovation and collaboration.
Massachusetts DPU Protects Clean Energy and Consumer Control in Electricity Rate Case Ruling
BOSTON — Friday afternoon, the Massachusetts Department of Public Utilities (DPU) issued a decision in the National Grid electricity rate case, D.P.U. 15-155. In the decision, the DPU denied a number of utility proposals that would have reduced customer control of energy bills, discouraged investment in energy efficiency, arbitrarily penalized clean local energy production, and restricted access to community distributed generation. Further information on these proposals may be found here.
Peter Shattuck, Acadia Center’s Massachusetts Director, said, “We are encouraged that the DPU rejected National Grid’s rate design proposals that would have unfairly impacted residential ratepayers and set back our clean energy future. The DPU agreed with Acadia Center’s case that tiered customer charges would not be efficient or understandable and that the proposed access fees were not based on sound analysis. This decision also granted a significant overall revenue increase to National Grid, which emphasizes that we should be finding new ways to lower costs and avoid expensive new infrastructure investments.”
Acadia Center intervened in this proceeding, participated in discovery, filed expert testimony, and submitted briefs on a number of key electricity rate design issues.
Dr. Abigail Anthony, Acadia Center’s Director of Grid Modernization and Utility Reform and expert witness in this proceeding, said, “As a party in this docket, Acadia Center consistently advanced a long-term vision for regulatory reforms that promotes clean energy while addressing legitimate consumer concerns.”
A number of other states in the region, including Connecticut, Rhode Island, New Hampshire, and New York, are engaging in efforts to proactively identify the new regulatory processes and analyses needed to support a consumer-friendly, clean energy future. Acadia Center urges the Massachusetts DPU to take further steps to do the same.
Mark LeBel, Staff Attorney at Acadia Center, said, “Reforms to electricity rate design must strike a careful balance between economic efficiency, equity for all customers, protection of low-income ratepayers, and access to community distributed generation. Acadia Center is actively working on all of these issues and looks forward to working with other stakeholders to bring together broadly acceptable solutions.”
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Acadia Center is a non-profit, research, and advocacy organization committed to advancing the clean energy future. Acadia Center is at the forefront of efforts to build clean, low-carbon, and consumer-friendly economies. Acadia Center provides accurate and reliable information and offers a real-world and comprehensive approach to problem solving through innovation and collaboration.
Acadia Center Applauds Rhode Island as State Continues to Lead on Energy Efficiency
PROVIDENCE — Rhode Island has taken first place in the utility-sector energy efficiency programs and policy category of the 2016 State Energy Efficiency Scorecard, released Tuesday by the American Council for an Energy-Efficient Economy (ACEEE), a national nonpartisan organization. In energy efficiency overall, Rhode Island ranks fourth behind Massachusetts and California (tied for #1), and Vermont (#3). This is the fourth year that Rhode Island has ranked in the top five states.
Rhode Island’s Least Cost Procurement law is primarily responsible for the state’s continued leadership on energy efficiency. First implemented 9 years ago and extended for another 5 years last summer, the policy states that distribution companies cannot acquire new electric or natural gas supply until “all-cost effective” energy efficiency measures have been exhausted.
“By investing in low-cost energy efficiency instead of expensive electricity and natural gas, Rhode Island lowers energy bills and spurs economic growth,” said Daniel Sosland, President of Acadia Center. “Thus the whole state benefits when Rhode Island leads on energy efficiency,” said Sosland
“Rhode Island has learned that energy efficiency is critical for growing our economy and putting Rhode Islanders to work,” said Abigail Anthony, Rhode Island Director with Acadia Center. “Energy efficiency reduces the cost of doing business in Rhode Island, and when residents spend less money on energy, they have more left in their paycheck to spend locally on other things.”
Rhode Island’s energy efficiency investment since 2008 will create 23,764 job-years of employment economy-wide and add $2.67 billion to Gross State Product. In 2015, 1,009 companies and 696 full-time equivalent jobs were directly involved with the state’s energy efficiency programs, with 79% of those companies located in Rhode Island.
Since 2008, Rhode Island has invested over $558 million in energy efficiency and consumers have realized $1.99 billion in economic benefits. In its 2016 Energy Efficiency Plan, National Grid proposed investing over $83 million in cost-effective efficiency programs to deliver electric savings that are 47% less expensive than the cost of supply, and natural gas savings that are 15% less than the cost of supply. The investments in 2016 will generate more than $256.1 million in direct benefits over the life of the efficiency measures, and add over $386.9 million to Rhode Island’s Gross State Product (GSP) and 4,220 job-years of employment. Acadia Center is currently developing the 2017 Energy Efficiency Plan along with key stakeholders including National Grid, the Office of Energy Resources, the Division of Public Utilities and Carriers, Emerald Cities, People’s Power & Light, and The Energy Council of Rhode Island.
Acadia Center is a member of the Energy Efficiency Resource Management Council (EERMC), the stakeholder council charged with assisting with the development, implementation, and review of energy efficiency programs in Rhode Island. The EERMC is critical to the success of energy efficiency in the states, and Acadia Center looks forward to working with fellow members, utilities and other stakeholders to make sure that the plans are implemented effectively to deliver cost savings through lower utility bills, emissions reductions, and clean energy job growth, in addition to broader economic benefits.
See the Scorecard at: http://aceee.org/state-policy/scorecard
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Acadia Center is a non-profit, research and advocacy organization committed to advancing the clean energy future. Acadia Center is at the forefront of efforts to build clean, low-carbon and consumer-friendly economies. Acadia Center provides accurate and reliable information, and offers a real-world and comprehensive approach to problem solving through innovation and collaboration.
Massachusetts and California Share Top Energy Efficiency Ranking
BOSTON — The American Council for an Energy-Efficient Economy (ACEEE), a national nonpartisan organization, released its 2016 State Energy Efficiency Scorecard yesterday, with Massachusetts maintaining its #1 ranking for the sixth year in a row, but now sharing the podium with California. Last year, only a half point separated the states’ rankings.
In achieving its highest score to date, Massachusetts’ score increased a point due to adopting the most recent IECC 2015 and ASHRAE 90.1-2013 as part of the state building code. These new standards will reduce the cost of energy for new homes and businesses in the state. Massachusetts could earn a perfect score in the category of utility programs and policies, the largest category in the ACEEE scorecard, with deeper savings in its natural gas programs.
“Progress in investing in energy efficiency raises all boats—consumers in Massachusetts, California and all the leading states are the real winners here,” said Daniel Sosland, Acadia Center’s President. “Maximizing efficiency is a major step toward securing a clean and affordable energy future. Massachusetts, Rhode Island and other leaders are showing that it really works to deploy least-cost, non-polluting measures to benefit the environment, the economy and consumers,” said Sosland.
Massachusetts has proven its continued commitment to energy efficiency under its Green Communities Act of 2008 by saving a large and growing percentage of energy every year through efficiency measures, and delivering over $14.8 billion in economic benefits and energy savings for ratepayers over the last six years. Massachusetts’ current 3-year plan (2016-2018) is expected to deliver $8.1 billion in economic benefits and energy savings, and sets savings goals (2.93% of sales for electric and 1.24% of sales for natural gas) that are the highest in the nation, yet again. The environmental benefits the 3-year plan will deliver are equivalent to removing approximately 408,000 cars from the road.
California’s rise to the top is a sign that other states are rapidly ramping up their investments in low-cost energy efficiency, and helping consumers lower their energy bills and spur economic growth. One area where Massachusetts risks falling behind the rest of the country and losing the top ranking is in the management and public availability of efficiency data. Massachusetts satisfies only one of six standards on which ACEEE intends to score states in the future – for comparison, California satisfied five.
“Massachusetts is on the winning path, but there is still plenty of work to do to make the most of this low-cost, clean resource,” said Amy Boyd, Senior Attorney at Acadia Center. “We should celebrate our success, but then return to the hard work that it takes to accelerate strategies to reach the homes and businesses that still need help lowering their energy costs,” Boyd said. “Making smart use of all the data that new technologies can provide utility companies will reduce costs, make processes more transparent, and keep us on track to stay on top of the ACEEE rankings,” Boyd concluded.
Acadia Center is a member of the Energy Efficiency Advisory Council, a stakeholder board that has statutory responsibility for advising and assisting the state’s utilities in developing and implementing cost-effective energy efficiency plans for electricity and natural gas. Acadia Center looks forward to working with fellow members, utilities and other stakeholders to make sure that the efficiency plans for Massachusetts are implemented effectively to deliver cost savings through lower utility bills, emissions reductions, and clean energy job growth, in addition to broader economic benefits.
See the Scorecard at: http://www.aceee.org/state-policy/scorecard
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Acadia Center is a non-profit, research, and advocacy organization committed to advancing the clean energy future. Acadia Center is at the forefront of efforts to build clean, low-carbon, and consumer-friendly economies. Acadia Center provides accurate and reliable information and offers a real-world and comprehensive approach to problem solving through innovation and collaboration.
Environmental Groups: Con Ed Rate Case Settlement Proposal’s Advancement of Energy Efficiency Programs Will Help Meet Clean Energy Standard Targets
ALBANY, NY – New energy efficiency programs in a Joint Settlement Proposal filed today on Consolidated Edison Company of New York’s electric rates for 2017 to 2019 will help meet the state’s greenhouse gas emissions reduction goals and Clean Energy Standard renewables targets, according to environmental and energy efficiency groups participating in the proposed agreement with the utility, city, and state.
The Joint Settlement Proposal would commit the utility to $99 million in new energy efficiency programs over the next three years, providing customer energy bill savings while reducing emissions of carbon dioxide and other dangerous pollutants emitted by power plants.
The Department of Public Service staff filed the proposed settlement today with the New York Public Service Commission for review and potential approval. The Natural Resources Defense Council, the Pace Energy and Climate Center, Acadia Center and the Association for Energy Affordability said the proposed efficiency programs are anticipated to yield more than 300 gigawatt-hours (GWh) of savings annually by 2019, and would continue to save customers that much each year for many years beyond that. A System Peak Reduction Program would add an additional 22 GWh of efficiency per year by the same date, while providing 49 megawatts of system peak reduction, which means fewer of Con Edison’s dirtiest, most expensive peaking power plants will be needed to serve Con Edison’s 3.3 million customers on the highest demand days of the year.
“By 2019, Con Edison’s new energy efficiency programs are expected to annually save the same amount of electricity that’s used by more than 70,000 typical New York City residential customers,” said Miles Farmer of the Natural Resources Defense Council. “That’s significant. The Public Service Commission should approve these programs and build upon that progress with more aggressive energy efficiency targets and initiatives in the near future.”
The Public Service Commission is expected this week to consider the procedural schedule for reviewing the Joint Settlement Proposal. Signatories include Department of Public Service staff, Con Edison, the Pace Energy and Climate Center, the City of New York, and various other environmental and consumer groups.
“By assisting customers to use energy more effectively, ConEd’s proposed programs would bring New York one step closer to achieving its requirement to use 50% renewables by 2030,” said Acadia Center President Dan Sosland. “Energy efficiency is far less expensive than building and operating fossil fuel power plants, and less risky, which means New Yorkers will benefit from this transition to a clean energy future.”
A study released by Synapse Energy Economics Inc. in April concluded that implementing aggressive energy efficiency targets and funding them appropriately holds the potential to reduce total costs to New York State’s electricity customers by roughly $3 billion.
Much more work remains to be done to pull New York up to speed with its neighbors in the Northeast. While the proposed Energy Efficiency and System Peak Reduction Programs are projected to help Con Edison more than double its energy efficiency performance over the level previously committed to (about 0.3% of load in efficiency gains per year), its total achievement will still be far short of the 2% to 3% in efficiency gains being made by utilities in states like Massachusetts and Rhode Island.
Radina Valova, a Pace Energy and Climate Center Staff Attorney, noted, “The programs will secure energy efficiency in a way that makes the grid itself more cost-effective by responding to locational needs, bundling offerings through Distributed Energy Resource providers, and leveraging market-based approaches. Clean energy advocacy groups like ours support this broad focus on energy efficiency opportunities because it allows the utility to promote the most cost-effective and market-friendly savings opportunities.”
“This settlement proposal ensures Con Edison’s ability and commitment to leverage bigger and better ideas and technologies in pursuit of a broad range of advanced energy efficiency opportunities, working with third parties and interested consumers. This approach is an important step for Con Edison and a strong precedent for other utilities to help New York to meet its clean energy goals,” said David Hepinstall of the Association for Energy Affordability, Inc.
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Released jointly by Acadia Center, Association for Energy Affordability, Inc., National Resources Defense Council, and Pace Energy and Climate Center