Office of Energy Resources Pulls Bids On Energy Efficiency Programs; Gives Rhode Island Energy the Contract
PROVIDENCE — When the General Assembly approved language that would allow the state to put administration of its energy efficiency programs out to bid, advocates had been hopeful.
By statute, Rhode Island’s designated gas and electric monopoly has administered the state’s suite of energy efficiency programs since their inception; first National Grid, then when Pennsylvania-based PPL Corp. bought the assets, Rhode Island Energy took over.
VEIC’s bid came in about $5 million more than Rhode Island Energy’s, some $130 million to run the program. But VEIC also estimated it would be able to increase the benefits associated with the state’s energy efficiency programs by 32%, getting more mileage out of each dollar spent.
Emily Koo, state director for the Acadia Center, a longtime advocate of energy efficiency programs and an industry stakeholder, said the RFP process by OER was “disappointing.”
“It doesn’t put a great taste in your mouth for the state’s interest in actually pursuing a third-party administrator,” Koo told ecoRI News. “Their assessment was disappointingly status quo.”
Energy efficiency programs are designed to help ratepayers use less energy — the line in the industry is that the cheapest energy is the one that is never used — by weatherizing buildings, purchasing LED lighting, and providing free home energy audits and rebates for bigger appliances such as refrigerators and washing machines. Rhode Island’s programs are collected as charge items on monthly utility bills for gas and electric.
The estimated benefits with each program is how they measure their own efficiency. Benefits come from a wide swath of sources, including reduced energy costs for consumers, reduced strain on the electric grid and its infrastructure, and public health benefits from improved air quality and reduced greenhouse gas emissions. All of which, even if in tiny ways, can slowly decrease energy bills over time.
“It’s the most bang for your buck,” said Koo, explaining energy efficiency benefits. “Reducing your demand, so reducing energy consumption, so there’s actual savings on energy and it’s savings for the entire electric system, particularly because of less peak demand for electricity.”
“I would certainly put more emphasis on benefits per dollar,” Koo said. “The premise of least cost procurement is that you’re investing in energy efficiency that’s going to be less than the cost of supply.”
To read the full article from ecoRI, click here.