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EXECUTIVE SUMMARY

As "the Chairman's baby," the New York Power Authority's (NYPA) High Efficiency Lighting Program (HELP) is one of the most aggressive programs of its kind. NYPA began the program in June 1990 for its retail customers in Southeast New York (SENY). Now the program has been expanded to government facilities statewide, and to schools on Long Island, New York.

To date, in the SENY region alone, over one hundred million dollars have been committed to the program and annual energy savings achieved to date with gross expenditures of $15.7 million are 40.5 GWh and 8.7 MW. When all SENY projects in various stages of completion are considered, the total cost (NYPA's share plus the customer's share) of more than $55 million, will result in annual energy savings of 151 GWh and 30.9 MW.

NYPA's HELP is a turnkey program that is offered to NYPA customers, to government facilities, and to schools on Long Island at no risk and with no cash outlay. In addition to providing consulting services for customers to analyze lighting loads and potentials for energy efficiency, NYPA will guarantee a three-year payback on its retrofits and will finance entire retrofits through its Conservation Loan Bank. Loan payments are recouped through customers' monthly bills. NYPA oversees the whole job from start to finish, from audit to installation and inspection, providing the customer with a high degree of service.

To date, the Power Authority has burst beyond its initial projections for the program for both savings and expenditures. Sixteen months into the program, over 50% of the five-year SENY budget was committed and over 50% of the five-year projected savings were identified through about 140 facility audits. By June 1990, SENY audits had identified 32 MW and associated energy savings of 157 GWh annually with an associated project cost of $53 million. These installations will be complete by the end of 1993. To date over $25 million has been formally committed to the project representing 85 retrofits that will save 17 MW and 80 GWh annually.[R#10]

The statewide HELP program, which began in earnest in June 1991, has also logged impressive results. As of September 1992 audits had been performed at 45 facilities and 14 MW of peak demand and 60 GWh of annual savings potential had been identified at a total project cost (including investor-owned utilities' rebates) of $20 million. The Long Island School program is also on track, having begun in January 1992, with 70 facilities audited revealing savings of 6 MWp and 14 GWh at a cost of more than $9 million.

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EXECUTIVE SUMMARY

The Energy $avings Plan provides energy reviews of industrial facilities, payments for conservation acquisitions, and rebates for the purchase of energy-efficient motors. One of the E$P's most unique features is its adaptability to many areas. It is not a formally defined program but rather a collection of principles which define conservation acquisitions that the Bonneville Power Administration would like to make in its industrial sector. The program is implemented by BPA's area offices and by utilities that receive firm power service from BPA. Each implementing agency interprets the E$P principles to create a DSM program that best suits its service territory.

Customers wishing to participate in the E$P can receive funding to conduct energy reviews of their facilities in order to locate potentially cost-effective areas for energy-efficiency improvements. Customers can then submit proposals to BPA for partial funding of these projects, based upon their levels of energy savings. Rebates for the purchase of energy-efficient motors are also available through the E$P. These rebates are based on the purchase price of the motor and are very simply calculated.

The E$P was first offered in 1987 as a pilot program and has been growing and evolving since then. BPA currently employs an annual review process to continually improve the program. This process seeks input from participants, non-participants, advocates, BPA headquarters staff, area office staff, and staff of implementing utilities. Most agree that the program is a good one that has yet to mature. Areas of the program most debated include: the acquisition payment (some feel it is not large enough); the number of appropriate post-installation verifications (some advocate multiple verifications others feel that one post-installation verification is adequate); and methodologies for determining free ridership and if screening for free ridership is even worthwhile.

Projects which receive funding through the E$P are generally large and often complex. It is not uncommon for three years to pass between a project proposal being submitted to BPA and that project's completion. Between October 1, 1988, and July 10, 1992, 55 E$P projects were completed. These projects' average annual energy savings is 1.8 GWh each. BPA paid an average of $81,000 to each of these projects. The cost of saved energy for these projects, computed at a 5% discount rate and assuming a 15.18 year measure lifetime, is a very inexpensive 0.38 ¢/kWh.

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EXECUTIVE SUMMARY

Central Maine Power's Operation Lightswitch® has been a program characterized by three discrete phases and is a powerful example of a program that has evolved from one of limited effect to quite significant effect, and perhaps most importantly has begun to transform the market for residential energy-efficient lighting in the State of Maine. While compact fluorescent lamps were all but non-existent in Maine a few years ago, now they are commonly on the retail store shelves at relatively low prices. Furthermore, 25% of the program's participants say that they will now buy the energy-efficient, compact fluorescents without any utility incentives at all!

The program began in 1988 when CMP began to work with the Lions Club to distribute halogen lamps. "Six-packs" of halogens were distributed through the Lions for a nominal charge. In the program's second phase, the Lions were used again, but this time to purchase compact fluorescent lamps from CMP for $1, and to sell them to residential customers for $3. (Note that the lamps offered had a list price of $18.75 and that all the lamps were distributed in the first week of the program phase!) In the third phase of the program CMP initially gave customers two, $9 coupons for compact fluorescent lamps which customers could find in chain stores throughout Maine. Later, after an initial coupon redemption rate that was slightly disappointing, CMP made the coupons available at the point of purchase.

As a result of Operation Lightswitch® approximately 20% of CMP's residential customers have installed energy-efficient lighting in their homes. Fully 486,000 halogen lamps were distributed and 256,200 compact fluorescents were distributed, in a total of 90,740 homes in CMP's service territory. This has been accomplished at a total cost of $4.6 million and has resulted in annual energy savings of over 30 GWh and lifecycle savings of 163.8 GWh.

CMP's efforts with residential lighting present a positive example of program evolution and market transformation. As the program evolved, the lighting technology that it promoted became more sophisticated, resulting in larger energy savings. The program also evolved toward decreased utility financial exposure, as customers became more aware of the benefits of the advanced lighting technologies and were thus willing to pay more for them. Through a careful process of educating customers, working with trade allies (such as the Lions Club and regional chain stores), CMP has been able to effectively transform customer awareness and perceptions of energy-efficient lighting for the home.

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EXECUTIVE SUMMARY

"In some ways, Seattle is an Ecotopia," noted a Seattle City Light official, an Ecotopia where a long term commitment to low income weatherization is possible and a successful track record has indeed been proven. In addition to Seattle's progressive orientation, Seattle City Light has benefitted from Bonneville Power Administration's Energy Buy Back Program, whereby the utility's cost for conservation programs is partially offset by BPA's acquisition of conservation resources throughout the Northwest region.

The Seattle City Light (SCL) low income weatherization programs described in this profile are jointly administered, with the City's Department of Housing and Human Services (DHHS), and are targeted at two discrete sectors: single family and multifamily. For single family homes, the City provides the Low Income Electric Program (LIEP). For multifamily structures, the City offers the Multifamily Conservation Program (MFCP).

The City of Seattle, and Seattle City Light in particular, has had a long history with low income weatherization programs. In 1981 the City Council adopted an ordinance enabling the programs. Since then, some 15,109 low income units have been weatherized: 9,673 single family units, 836 multiplex units (2-4 apartments), and 4,600 multifamily units. Weatherization of these homes has resulted in average annual energy savings per home of 3,100 kWh, 1,308 kWh, and 1,640 kWh respectively. In terms of total cumulative savings, the low income programs to date have saved 250 GWh, and will create lifecycle savings of 1,160 GWh.

The programs' expenditures support the City's commitment to weatherization. Qualified LIEP participants are granted up to $3,300 per single family home, $4,000 per duplex, $5,000 per triplex, and $7,000 for a fourplex. For the MFCP, there is no per unit ceiling on expenditures. Total annual costs of the programs have ranged from just over a million dollars in 1981 to a high of over $6 million in 1983, to $2.7 million in 1991. Of the $41 million spent to date, fully $27 million has gone into expenses directly related to the installation of the efficiency measures.

Using two city agencies to deliver a program has its advantages and disadvantages. On the up side is a diversity of talents. SCL has a long track record with demand-side management and with effectively delivering and evaluating programs. DHHS, on the other hand, is an agency devoted to social services and thus ideally suited to reach out to and serve Seattle's low income population. Among its abilities are translation services including Chinese, Laotian, Russian, Vietnamese, Cambodian, and Ethiopian for program participants.

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