New Analysis Shows that Capping the Fixed Electric Charge at $10 Will Lower the Majority of Monthly Bills for Eversource Energy’s Residential Customers

Hartford, CT – Rebutting inaccurate information publicly provided by Eversource Energy in response to efforts to place a ceiling on fixed minimum customer charges, new analysis released today by Acadia Center shows that significantly more than half of residential customers’ monthly bills would decrease if the General Assembly enacts a $10 fixed charge cap, as proposed in pending Senate Bill 570.
Using information provided by Eversource in its 2014 rate case before the Public Utility Regulatory Authority (PURA), Acadia Center found that:

• All residential customers that use less electricity than the average in a given month would pay less if the fixed charge  decreases from $19.25, the existing amount, to $10, the maximum allowed under S.B. 570’s proposed cap;
• 61% of monthly bills in Eversource’s primary residential rate class fall below the average of 730 kilowatt hours per month; and,
• Increasing the residential fixed charge to $25.50 per month—the amount sought by Eversource in its rate case—would increase monthly bills for all customers that use less electricity than the average.

“Policymakers deserve to have sound facts and transparent analysis put before them on the critical issue of high fixed charges,” said Daniel L. Sosland, Acadia Center President.  “An overwhelming majority of Eversource’s approximately 1 million residential customers will pay higher bills and have their incentive to use energy efficiently thwarted under Eversource’s high fixed charge rate approach.  Claims by Eversource that consumers do not stand to benefit from lower fixed monthly charges conflict with reality.”

In an email sent to state legislators on May 12, 2015, an Eversource lobbyist claimed that, “more than half of our customers would see an increase in their overall bill if the fixed charge is lowered,” and that, “a $10 fixed charge is actually more regressive than a $19.25 fixed charge.”  Eversource did not disclose the data or analysis supporting these billing impact claims, instead only releasing selective information on four residential customers with monthly energy consumption ranging from slightly above average to extremely high.
The residential billing information that Eversource submitted in its 2014 rate case does not support these claims.  Acadia Center analyzed billing frequency data submitted as an exhibit by an Eversource rate design expert and determined that a majority of residential monthly bills in the Rate 001 class—the primary residential customer class—fall below the average level of consumption.

The results are similar for the other two Eversource residential rate classes: 58% of monthly bills in Rate 005, a closed electric heating class, fall below the 1103 kWh average and 64% of monthly bills in Rate 007, a very small time-of-use class, fall below the 1060 kWh average.

Acadia Center then analyzed three fixed charge scenarios to reveal the monthly billing impact on Eversource’s residential customers.  The three scenarios were:  (1) leaving the fixed charge at its current amount of $19.25 per month; (2) reducing it to $10 per month, which would be the maximum allowed under S.B. 570; and (3) increasing it to $25.50 per month, the amount sought by Eversource in its 2014 rate case.  The results prove that high fixed charges are more regressive than low fixed charges, as the billing impact on low-use customers increases as the fixed charge increases.

“The math is undeniable,” said William E. Dornbos, Acadia Center CT Director and Senior Attorney. “More residential bills will go down if the General Assembly acts to cap these excessive and ever-increasing fixed charges.  We need to end our overreliance on this regressive way to price electricity, and so we urge the General Assembly to pass Senate Bill 570 this session.”

In a handout distributed to legislators earlier this month, Eversource also claimed that low-income hardship customers had average electricity usage between 750 and 1100 kilowatt hours per month, implying that any decrease in the fixed charge would burden them disproportionately.

“In reviewing the transcripts from Eversource’s rate case, we noticed that their testimony on this point is in direct conflict with the handout’s claim,” said Jamie Howland, Acadia Center’s Director of Climate and Energy Analysis.  “An Eversource rate design witness testified that average hardship customers actually used less than the overall average for each residential class.”

Acadia Center also researched publicly-available data on the relationship between income level and electricity use and found that there is a strong correlation between the two factors, as shown in the following chart.

“What this correlation means is that low-income households in Connecticut will, on the whole, benefit from any reduction in the fixed charge,” said Howland.  “It’s always possible to pick outlier examples when analyzing rate design scenarios, but the best way to evaluate billing impacts is by customer class, not through selective customer anecdotes.”
“We believe that the facts demonstrate that capping the fixed charge in Connecticut at $10 will benefit a majority of customers and support public policy goals,” said Sosland. “It is important that policy decisions be made based on accurate information.  Our goal with this analysis is to contribute to an open and honest debate about this issue.”

[Above referenced Eversource 2014 rate case testimony can be found here]
Background on the Fixed Charge in Connecticut
A fixed charge is a monthly flat minimum charge on a customer’s electricity account, sometimes called a customer service charge. The fixed charge should be an accurate calculation of the minimum, short-term fixed cost of connecting a customer to the grid. These costs should be limited to the cost of the customer’s meter, service drop, and metering and billing.
Most major utilities in New England (outside of Connecticut) have residential fixed charges in the $5-10 range.  Notably, the three Massachusetts operating units of NSTAR Electric (now part of Eversource) have residential fixed charges of $6.43, $6.87, and $3.73 per month.  Western Massachusetts Electric Co., also part of Eversource, charges $6 per month.  The region’s other major multi-state utility, National Grid, has residential fixed charges of $4 and $5 in Massachusetts and Rhode Island, respectively.
The residential fixed charges of Eversource Energy (formerly Northeast Utilities and its local subsidiary, Connecticut Light & Power) and United Illuminating are, respectively, the highest and the second highest in New England for any major electric utility.  Eversource’s is now $19.25 per month, a twenty percent increase over the previous amount.  UI’s is now $17.25 per month. Eversource’s residential fixed charge was last in the reasonable range in 2007, when it was $9.99 per month.   Since 2004, both utilities have increased their residential fixed charges at a pace more than four times faster than the cumulative rate of inflation for that same time period.
Both utilities can be expected to seek additional increases in their next rate cases (possibly 2016 or 2017).  In its 2014 rate case, Eversource proposed a residential fixed charge of $25.50, while asserting that its analysis showed it was actually entitled to a $34.96 charge.

Contact

William Dornbos, Senior Attorney and Director, Connecticut Office, 860-246-7121 x202, wdornbos@acadiacenter.org

Emily Avery-Miller, Director External Relations, Acadia Center, 617-742-0054 x100, eavery-miller@acadiacenter.org

Download here:

052015_AcadiaCenter_PressRelease_CTFixedChargeScenarios_Final

Groups Call for Key RGGI Program Updates

Environmental organizations and clean energy businesses today released a document calling on member states of the Regional Greenhouse Gas Initiative (RGGI, pronounced “Reggie”) to pursue reforms to make the program stronger and meet the requirements of EPA’s Clean Power Plan (CPP).

The document outlines principles to guide RGGI states’ upcoming 2016 Program Review, where potential modifications to current program rules will be considered.

Before describing reforms, the groups cite successes of RGGI to-date, including a 45% reduction in GHG emissions, $630 million in energy efficiency funding, and $2.3 billion in consumer savings.

“Modifications to RGGI will build on the many successes that the program has already had, and ensure that we continue to see CO2 emissions decline and investments in clean energy increase,” said Daniel L. Sosland, Acadia Center President.

Signatory groups focus on three key principles to be addressed during the 2016 Program Review:

• Extending the RGGI cap to at least 2030 in order to provide additional clarity to the market and match EPA’s timeline for achievement of CPP targets;
• Correcting the cap reduction trajectory to deliver necessary long term emissions reductions; and,
• Revising or removing the Cost Containment Reserve to ensure achievement of emissions reduction targets.

Additional topics addressed include accounting for renewables, the role of offsets, and pathways for other states to participate in RGGI.

“With final EPA targets set to be released this summer, these changes will allow the RGGI states to demonstrate that the program can meet federal requirements, while providing a clear blueprint for other states wishing to adopt emissions trading programs,” said Jordan Stutt, Policy Analyst at Acadia Center.

For more information see: http://acadiacenter.org/document/RGGI-2016-program-review-principles

 
Contact:
Jordan Stutt, Policy Analyst, Acadia Center
(617) 742-0054 x105, jstutt@acadiacenter.org

Emily Avery-Miller, Dir. External Relations, Acadia Center
(617) 742-0054 x100, eavery-miller@acadiacenter.org

###

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.

New Study Shows Value of Solar for Massachusetts

Acadia Center today released a study that quantifies the grid and societal benefits of solar photovoltaic systems (solar PV) in Massachusetts. Establishing the value of distributed resources is increasingly important as states explore ways to meet energy needs and deploy clean energy resources. Acadia Center has also released a Value of Solar study for Connecticut, and Maine ‘s Public Utilities Commission recently completed a similar type of analysis.

Acadia Center assessed the value of six hypothetical solar PV system configurations to better understand the overall value that solar PV provides to the grid. By evaluating an array of configurations, this analysis determines that the value of solar to the grid—and ratepayers connected to the grid—ranges from 22-28 cents/kWh, with additional societal values of 6.7 cents/kWh.

“Solar generation is a valuable local energy resource that provides significant benefits to ratepayers,” said Jamie Howland, Director of Acadia Climate and Energy Analysis (CLEAN) Center. Solar PV provides unique value to the electric grid by producing clean energy and avoiding generation and related emissions from conventional power plants. The overall grid value of solar is the sum total of these different benefits.

The benefits vary based on the time and location of output from solar panels. Acadia Center examined these variations in the study, including the impacts of orientation (i.e. west- or south-facing arrays) on the value of solar PV. One key finding is that under traditional net metering, west-facing arrays—which maximize output during periods of peak demand—would receive approximately 20% less credit than a comparable south-facing system, despite the fact that they produce approximately the same overall value to the grid.

In addition to value to the grid, Acadia Center’s study finds that solar PV provides broader societal advantages, such as environmental benefits from avoided greenhouse gas emissions and other pollutants. “Societal benefits should be used when assessing the overall costs and benefits of solar PV and determining additional incentives,” said Leslie Malone, Acadia Center Senior Analyst and an author of the report.

The report provides information that is relevant for the Net Metering and Solar Task Force in Massachusetts, which will conclude its work at the end of April. “Having a better understanding of the value of solar PV and its components will help the task force and policy makers recommend and advance policies that help to encourage deployment of this clean energy resource,” said Mark LeBel, Staff Attorney with Acadia Center and the organization’s Massachusetts lead on solar policy.

For more information see: www.acadiacenter.org/document/value-of-solar-massachusetts

Contact:
Leslie Malone, Senior Analyst, Acadia Center,
(401) 276-0600, lmalone@acadiacenter.org

Peter Shattuck, Dir. Clean Energy Initiative, Acadia Center
(617) 742-0054 x103, pshattuck@acadiacenter.org

Emily Avery-Miller, Dir. External Relations, Acadia Center
(617) 742-0054 x001, eavery-miller@acadiacenter.org

RGGI Would Boost VA Economy and Meet Future Climate Goals

Participating in the Regional Greenhouse Gas Initiative (RGGI) would bring significant benefits to Virginia, according to analysis released today by Acadia Center. Acadia Center has been tracking RGGI since the program’s launch in 2009, and drew on this expertise to arrive at the following key findings:

• RGGI provides a flexible, straightforward mechanism for reducing greenhouse gas (GHG) emissions
• Participating in RGGI would enable Virginia to meet Environmental Protection Agency requirements to reduce GHG emissions from power plants.
• RGGI would raise $2.8 billion by 2030 for Virginia to reinvest in complimentary consumer and climate programs

“RGGI has been successful in the states that currently participate.  It is helping to reduce carbon emissions, while offering a demonstrated record of advancing economic development, and saving consumers money on energy,” said Daniel L. Sosland, Acadia Center President.

“RGGI has received significant attention and growing support as a means of reducing climate pollution and helping to protect the state from sea level rise and other damaging effects of climate change,” said Dawone Robinson of Chesapeake Climate Action Network. “This analysis helps show why RGGI is the right solution for Virginia.”

Virginia needs a plan for cutting greenhouse gas pollution from major generators to meet the federal requirements of EPA’s Clean Power Plan.  A recent study by the regional grid operator PJM showed that a multi-state program—like RGGI—was the most cost-effective way for Virginia and other PJM states to meet the regulations.

“The RGGI program is well-established and has a track record of results: driving down emissions and bringing in revenue and other economic benefits. The numbers clearly show how much Virginia and other states could gain by joining,” said Stutt.

The current RGGI states have used the majority of revenue raised through the program to invest in energy efficiency and clean energy programs, which have generated $3.40-$3.70 in economic growth for every $1 invested. Revenue can also be used to meet local needs such as adaptation planning or investment in diversifying Southwest Virginia’s economy and retraining its workforce.

For more information see: http://acadiacenter.org/document/va-and-rggi-compliance-with-clean-power-plan/

Contact:

Emily Avery-Miller, Director External Relations, Acadia Center, 617-742-0054 x100, eavery-miller@acadiacenter.org
Jordan Stutt, Policy Analyst, Acadia Center, 617-742-0054 x105, jstutt@acadiacenter.org
Dawone Robinson, Virginia Policy Director, Chesapeake Climate Action Network, 804-767-0372, dawone@chesapeakeclimate.org

###

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.

Connecticut Energy Efficiency Programs Empowering and Benefiting Consumers

Connecticut’s 2014 energy efficiency programs for natural gas and electricity will save consumers nearly $1 billion. The official savings were released recently, and the benefits will be accumulated over the lifetime of the 2014 investments.

“Energy efficiency programs are empowering Connecticut consumers to control their energy use and costs,” said Daniel L. Sosland, Acadia Center President. “The 2014 results show the potential for efficiency as a first resource to meet the state’s energy needs.”

“One of the best benefits of these programs is that they help consumers with the challenge of high winter energy costs,” said William E. Dornbos, Senior Attorney at Acadia Center and Chair of the Connecticut Energy Efficiency Board, a stakeholder body which advises the utilities on the state’s energy efficiency plan. Throughout 2014, the Energy Efficiency Board worked with the utilities to mitigate the anticipated consumer impact of the current winter season by accelerating LED lighting options, helping big facilities cut energy loads, and getting the word out to continue to increase participation in the programs.

“Bringing demand down through efficiency programs helps everyone on the grid,” said Dornbos, “and consumers are already enjoying the benefits of that this winter.”

Connecticut invested over $220 million in cost-effective electric and natural gas efficiency in 2014—an investment that, if not made, would have required the state’s energy consumers to purchase more expensive energy supply, much of it imported from out-of-state. This is year two in a three-year efficiency plan. Other benefits of the current 2013-2015 plan include:

• lifetime dollar savings for consumers of $978.3 million (from 2014 investments) and $630 million (from 2013 investments);
• three-year demand savings equivalent to building a 143 MW power plant;
• electric energy savings of 4.2 billion kilowatt hours over the lifetime of the 2014 investment; ;
• increased market penetration of highly efficient LED lighting by 175% in 2014;
• energy system benefits of $2.40 for every $1 invested in electric, natural gas, propane, and oil heat efficiency measures—a return on investment of 140% across all fuels; and
• lifetime avoided greenhouse gas emissions of over 3.2 million tons from the 2014 investments alone (about the same as removing 466,259 cars from the road for a year)

For more details on the energy efficiency programs and results, see the Connecticut Energy Efficiency Board 2014 Program and Operations Report

“We look forward to continuing to work with the Energy Efficiency Board, utilities and state leaders to move toward capturing all cost-effective efficiency, and keep Connecticut on this path of strong investments with big consumer rewards,” said Sosland.

Contact:

William Dornbos, Senior Attorney, Acadia Center, 860-246-7121 x202, wdornbos@acadiacenter.org

Emily Avery-Miller, Director External Relations, Acadia Center, 617-742-0054 x100, eavery-miller@acadiacenter.org

###

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.

Boston, MA / Hartford, CT / New York, NY / Providence, RI / Rockport, ME / Ottawa, ON, Canada

admin@acadiacenter.org / www.acadiacenter.org / Daniel L. Sosland, President

Massachusetts Energy Efficiency Programs Top National Bests for Savings

Massachusetts’ energy efficiency programs produced remarkable consumer and environmental benefits in 2014 according to preliminary data released by the program administrators. The programs produced an estimated $3.14 billion in total savings for Massachusetts, achieving 110% and 121% of 2014 goals for electric and gas benefits, respectively.

“Massachusetts energy efficiency programs are delivering on their promise to create large energy savings for consumers, and move the Commonwealth toward a clean, affordable and secure energy future,” said Daniel L. Sosland, Acadia Center President.

2014 is the second year in the 2013-2015 three-year efficiency plans, which set top-in-the-nation targets for energy efficiency savings. With these results, the Commonwealth is far exceeding targets set forth in the plan. This also puts the state on track to meet targets in its Clean Energy Climate Plan. Massachusetts has been ranked number one on American Council for an Energy Efficient Economy’s (ACEEE) national energy efficiency scorecard of state efficiency efforts for four years. The Energy Efficiency Advisory Council, a stakeholder board that guides efficiency implementation won an ACEEE Champion of Energy Efficiency award last year.

Much of the expansion of energy efficiency during 2014 has brought benefits to Massachusetts homes, with significant growth of programs in the residential sector, including widespread adoption of increasingly affordable LED lights, home insulation and installation of highly efficient heating equipment.

The programs bring major benefits to the Commonwealth, beyond the direct savings for those who implement these services in their homes and businesses. This year’s efficiency investments yielded an estimated:

• electric demand savings equivalent to a 172 MW power plant
• 1,305 GWh of annual electric savings (enough to power over 171,770 homes for a year)
• 28.2 million therms of annual gas savings (enough to heat over 29,500 homes for a year)
• 476,531 MMBtu of oil saved in 2014
• annual GHG reductions of 1.56 million tons, which is equivalent to removing over 326,000 cars from the road

As a member of the Massachusetts Energy Efficiency Advisory Council, Acadia Center looks forward to working with fellow members, program administrators and other stakeholders to make sure that the Commonwealth continues to set and achieve ambitious goals for energy efficiency.

“With the drafting of the 2016-2018 plan beginning soon,” said Amy Boyd, Acadia Center Senior Attorney who serves on the EEAC, “Massachusetts has an opportunity to build on the progress we’ve seen to-date and bring even more benefits for homes and businesses.”

For more information, see Year-End/Q4 Results in  Program Administrators Q4 Report and EEAC Consultant Initial Review presentations.

###

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.

Contact:
Amy Boyd, Senior Attorney, Acadia Center, 617-742-0054 x102, aboyd@acadiacenter.org
Emily Avery-Miller, Director External Relations, Acadia Center, 617-742-0054 x100, eavery-miller@acadiacenter.org

UtilityVision: Empowering Consumers to for a Clean Energy Future

Today, Acadia Center, a leading non-profit organization that researches and advocates innovative approaches to advance the clean energy future, released, “UtilityVision: Reforming the Energy System to Work for Consumers and the Environment.” The publication presents an ambitious but realistic energy future that puts the consumer firmly in the center. UtilityVision outlines the specific steps needed to create a new energy system that both meets our needs and supports a fair, healthy economy and environment.

“The interests of consumers and a sustainable energy system are merged now more than ever before,” said Daniel Sosland, Acadia Center President. “UtilityVision offers a comprehensive pathway to a smart and dynamic electric system focused on giving consumers and communities greater freedom and control over their energy costs. This new system would be managed with the cooperation of utilities, governed by updated regulations that honor energy technology change, and provide a fair and safe system to protect consumers.”

The need for a comprehensive, new look at the energy system is urgent. “Decisions are being made today in state proceedings that will influence whether we steer towards a cleaner, more efficient and consumer friendly system,” Sosland said. “UtilityVision shows how we can embrace that future.”

UtilityVision is a comprehensive regulatory framework which shows how the parts of a modern energy system can be aligned to put the consumer at the system’s center.  This integrated vision enables us to attain our climate, economic, and consumer goals. UtilityVision is organized around five key areas for reform:

• Empowering the consumer: Consumers are the most important constituent of our energy system. The modern grid should meet their full energy needs: provide affordable and reliable energy, give them real control over their energy use and costs, help them enjoy the benefits of innovation, and treat all consumers fairly.
• Planning a consumer-focused power grid: Grid planning must merge the traditional world of “poles and wires” with available new technologies and modern strategies.
• Aligning utility incentives with consumer and environmental goals: Regulation of the power grid needs to change to provide utilities with the financial incentives that will achieve the goals of increased consumer control and decreased GHG emissions.
• Helping consumers pay for power they use: Electric bills should be designed to empower consumers to make smart energy and economic decisions to save money and energy.
• Paying consumers for power they produce: Consumers using local renewable energy resources—through distributed generation like rooftop solar—should be charged based on the costs of staying connected to the grid and credited for the full range of benefits they provide

“Acadia Center’s UtilityVision demonstrates that consumer interests today include a broad span of energy-related issues, from the bedrock consumer concern of affordability to newer considerations like improved energy control, more sustainable energy, clear and accessible energy information, and the opportunity to generate their own local energy and sell it back to the grid,” said Abigail Anthony, Director of Acadia Center’s Grid Modernization and Utility Reform Initiative.

“UtilityVision provides an opportunity for regulators and key stakeholders to view consumer interests in this broader context far beyond the outdated lens of the centralized, one-way power grid of the past,” Anthony said.

Background: UtilityVision addresses one core part of a vision for how to move to a clean energy system and drive down carbon emissions.  It outlines a pathway for stakeholders and regulators to modernize the way we plan, manage and invest in the power grid and ties utility business models, rate-making and customer-side energy resources all together. The illustrated publication outlines the full range of relevant issues and includes detailed policy recommendations. It will serve as a starting point for conversations with policy makers, constituent groups, media and other public forums.

UtilityVision builds on Acadia Center’s EnergyVision (http://acadiacenter.org/document/energyvision/) —released in 2014—which charts out reforms in four interconnected areas to produce a cleaner, lower cost energy system and reach the necessary 80 percent carbon emission reductions by 2050.

UtilityVision is available online: http://acadiacenter.org/document/utilityvision

Contacts

Abigail Anthony, Director, Grid Modernization and Utility Reform Initiative, 401-276-0600, aanthony@acadiacenter.org
Emily Avery-Miller, Director External Relations, Acadia Center, 617-742-0054 x100, eavery-miller@acadiacenter.org

New Appointees to DPU Will Face Key Decisions for MA’s Energy Future

Massachusetts Secretary of Energy and Environmental Affairs Matthew Beaton today announced Robert Hayden will serve as Commissioner of the Department of Public Utilities (DPU), Angela O’Connor will serve as Chair of the DPU, and Ronald Gerwatowski will serve as Assistant Secretary for Energy.

“These appointments are coming at a critical time in the Commonwealth’s approach to energy policy,” said Daniel L. Sosland, Acadia Center President. “With major changes in technology making clean energy and energy efficiency more affordable, and big questions on the horizon about how we will plan and use energy resources, the DPU and energy administrative leadership will play an important role in shaping Massachusetts’s economic and energy future.”

Massachusetts has been a national leader in forging clean energy policies, but there is still important work to be done. The DPU is facing decisions on an array of complex and critical issues related to energy procurement, planning and infrastructure that will require input from and consideration of perspectives of a wide range of stakeholders. Key decisions this year will have long-term effects throughout the Commonwealth.

Acadia Center looks forward to working with the DPU and energy policy leaders and stakeholders to advance solutions that will meet environmental targets and challenges, grow a strong economy, protect consumer choice and build a strong energy future for Massachusetts.

###

Contact:

Emily Avery-Miller, Director External Relations, Acadia Center, 617-742-0054 x100, eavery-miller@acadiacenter.org

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.

Boston, MA / Hartford, CT / New York, NY / Providence, RI / Rockport, ME / Ottawa, ON, Canada

admin@acadiacenter.org / www.acadiacenter.org / Daniel L. Sosland, President

Reducing New England’s Overreliance on Natural Gas: Massachusetts Study a First Step toward an Integrated Regional Alternatives Plan

Boston, MA – On January 8, 2015 Massachusetts released a “Low Demand Analysis” evaluating means to reduce overreliance on natural gas through investments in clean energy. The analysis found that prioritizing energy efficiency, renewable energy, and imports of Canadian hydroelectricity would reduce Massachusetts’s exposure to wintertime price spikes that result from our growing dependence on natural gas for heating and electricity generation. However, constraints placed on the study limit its applicability to current energy challenges facing New England; this initial analysis should not be interpreted to support a new subsidy that would shift multi-billion dollar risks from private corporations to the public.

“Massachusetts has taken an important but preliminary step toward thorough analysis of viable supply- and demand-side solutions to meet our energy needs,” said Acadia Center President Dan Sosland. “Because electric ratepayers across New England are being asked to subsidize the construction of a pipeline that could take decades to pay off, alternatives need to be examined in all New England states to ensure that we have an accurate, up-to-date picture of how to power the region while reducing risks to consumers and bringing down greenhouse gas emissions.”

A number of key limitations make the need for updated, regional analysis clear:

• Limitation to Massachusetts – Taken together, Connecticut, Rhode Island, Maine, New Hampshire, and Vermont account for the majority of energy use in New England and offer significant clean energy opportunities but the study evaluated alternatives to natural gas pipeline capacity only for Massachusetts.
• Outdated assumptions – Key assumptions underpinning the model no longer reflect economic and political realities on the ground. Examples include:
  • Fuel prices – Prices for oil and liquefied natural gas (LNG) have dropped significantly since the study was launched, affecting the economics of pipeline gas versus alternatives that do not require new infrastructure.
  • Electricity imports – Recently-proposed projects to import a mix of Canadian hydroelectricity and wind from northern New England are not reflected in the analysis.
  • Offshore wind – Forthcoming legislation in Massachusetts will feature significant procurement of offshore wind – which reduces gas demand and prices during winter peaks – yet offshore wind was not included in any of the scenarios.

Proposals to expand natural gas pipeline capacity rely on an unprecedented region-wide electricity tariff requiring federal approval. It is critical for policymakers both to demonstrate that they have fully examined and exhausted alternatives across the region and also to minimize risks to consumers. These risks include natural gas price increases due expanded exports, which the Department of Energy has concluded could raise prices by almost 50%, or a repeat of last year’s cold weather, which caused natural gas prices in Pennsylvania to skyrocket, undermining the argument that imported shale gas would reduce price spikes.

“This report begins to show a way to break our addiction to natural gas,” said Peter Shattuck, Massachusetts Director for Acadia Center. “Now we need a full assessment of alternatives to a multi-billion dollar pipeline ‘fix’ that would increase our addiction, transfer risk from private corporations to the public, and undermine efforts to reduce climate pollution most cost-effectively.”

It is important to note that New England states’ mere consideration of subsidizing new pipeline capacity has likely had a chilling effect on the market and undermined potential private sector financing for energy infrastructure. In contrast to the proposed pipeline tariff in New England, private producers are bearing the financial risks associated with the Constitution Pipeline running from Pennsylvania to New York. Since New England Governors initially proposed supporting new pipeline capacity in 2013, similar private financing proposals have failed to materialize as developers wait to see if the public will take on project risks.

###

Contact: Peter Shattuck, Massachusetts Director, 857-636-2502, pshattuck@acadiacenter.org
Emily Avery-Miller, Director External Relations, Acadia Center, 617-742-0054 x100, eavery-miller@acadiacenter.org

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.

Boston, MA / Providence, RI / Hartford, CT / Ottawa, ON, Canada /

admin@acadiacenter.org / www.acadiacenter.org / Daniel L. Sosland, President

RI Public Utilities Commission Votes to Expand Cost-Saving Energy Efficiency Programs in 2015

PROVIDENCE, RI – On December 23, 2014, the Rhode Island Public Utilities Commission unanimously approved the 2015 Energy Efficiency Program Plan for Rhode Island, which will enable cost-effective energy efficiency programs to generate economic savings for electric and natural gas consumers in the state.

The 2015 Energy Efficiency Plan was developed collaboratively by key stakeholders representing a wide range of consumer and environmental interests, including Acadia Center, the Energy Efficiency and Resource Management Council, the Division of Public Utilities and Carriers, the Office of Energy Resources, and National Grid. The plan is also supported by the National Consumer Law Center on behalf of the George Wiley Center and National Housing Trust, Green and Healthy Homes Providence, Peoples Power & Light, and the Rhode Island Builders Association.

“Energy efficiency is a powerful tool to help chart Rhode Island’s pathway to a sustainable economy and clean energy future,” said Acadia Center President Dan Sosland.

“Efficiency is the best near-term energy strategy for reducing Rhode Islanders’ energy bills, particularly in the face of higher electric commodity prices this winter. Investing in energy efficiency produces immediate bill savings that persist for years to come,” said Sosland.

The 2015 Energy Efficiency Program Plan is designed to generate $2.35 in benefits for every $1 invested in cost-effective energy efficiency. When fully implemented, Rhode Island’s 2015 energy efficiency programs will:

• Produce over $336 million in net economic benefits to Rhode Island homes and businesses.
• Save 1.9 million MWh of electricity and 4.8 million MMBTU of natural gas.
• Boost Rhode Island’s economy by adding over $417 million to Gross State Product.
• Create over 4,500 job-years of employment economy-wide.

The Division of Public Utilities–the state agency charged with watching out for consumer interests– recently commissioned the research firm Synapse Energy Economics to see what efficiency is really doing for our electric bills. The analysis finds that a homeowner who gets a home energy assessment can save between 11% and 15% on her electric bill by replacing inefficient lighting and appliances, and upgrading home insulation and weatherization.  Factoring in savings on natural gas or fuel oil use would boost these saving percentages even higher. And small business customers save as much as 37% to 47% by installing high efficiency equipment and retrofits. The analysis also shows that even customers who do nothing to their own houses or offices benefit from others’ energy efficiency actions. Reducing the state’s demand for power helps lower the costs of the whole energy system—savings that are passed on to all electric customers.

“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.

The 2015 Energy Efficiency Plan is part of a larger three-year Least Cost Procurement Plan for 2015, 2016, and 2017 that was approved by the PUC in October. The plan can be found at: http://www.ripuc.ri.gov/eventsactions/docket/4527-NGrid-2015-EEPP(10-31-14).pdf

Contact:
Emily Avery-Miller, Dir. External Relations, Acadia Center**
(617) 742-0054×100, eavery-miller@acadiacenter.org

Abigail Anthony, Dir. Rhode Island Office, Acadia Center**
(401) 474-8876, aanthony@acadiacenter.org

###

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.

**ENE (Environment Northeast) is now Acadia Center. To more accurately reflect the organization’s geographic scope and evolving approach, we adopted a new name, logo and website
http://www.acadiacenter.org on October 30, 2014. Our team, goals and commitment to results have not changed, and we look forward to continuing our work and partnership with you and all of our networks.