Small Business Services (SBS) Program National Grid

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1 Program Synopsis The, formerly known as the Small Commercial and Industrial Programs,seeks to provide energy efficiency services to the harder to reach small commercial customer market. The program provides audits and direct retrofit installation of ee lighting and non-lighting ee retrofit measures to small commercial and industrial customers. Measures include electric water heating, space-conditioning, and refrigeration measures. The program serves non-residential customers with average monthly demand less than 100 kw or annual usage less than 300,000 kwh. NGRID pays for 75-80% of the total project costs, and customers may finance the remainder for up to 24 months interest-free. Program Type Incentive PrescriptiveRebates CustomIncentivesSPC BillCreditsRateDiscounts Services DirectInstallation FinancingLoansLeasing FreeMeasures InHousePlusSubs IncentiveOther Information and Training GeneralEducation MailAudit TelephoneAudit OnSiteAudit OnLineAudit DesignAssistance FeasibilityStudies EndUserTraining TradeAllyTraining Program Focus Primary Market Events Targeted AllMarketEventsTargeted NewConstructionRenovation ExistingConstructionAll ExistingConstructionRetrofit ExistingConstructionNaturalReplac ExistingConstructionEarlyRetire Primary Program Focus EndUser SupplySide EndUserAndSupplySide Residential End User Target Markets ResidentialALL SingleFamily MultiFamily MobileHome - 1

2 LowIncome ResOther Commercial/Industrial End User Markets Commercial All Offices Retail Restaurant Public (govt.) Facilities Grocery Store Health Care Education Lodging (Hotels/Motels) Warehouses Industrial All Other Market Barriers End User Supply Side Information or Search Costs Performance Uncertainties Asymmetric Information and Opportunism Hassle or Transaction Costs Hidden Costs Misplaced or Split Incentives Product or Service Unavailability Externalities Non-Externality Pricing Inseparability of Product Features Access to Financing - 2

3 Bounded Rationality Organizational Practices or Customs Irreversibility Other End User Other Supply Side Customer Sizes Targeted (C/I only) VerySmall Small Medium Large Supply Side Actors Targeted SupplySideActorNotProgFocus AorEFirms Manufacturers Realtors Developers Builders Contractors TradeAssociations WholesalersDistributors Retailers EnergyServiceCompanies NonProfitNotForProfitGroups Govt Other Types of measure/end use technologies ALL MEASURES HVAC High Efficiency DX/HP High Efficiency Chillers High Efficiency Room/Terminal Economizers Control Systems Variable Speed Drives Occupancy Sensors Lighting Compact Fluorescents Electronic Ballasts Reflector Systems Efficient Fluorescent Lamps (T-8, T-5, etc.) Lighting Controls Occupancy Sensors High Intensity Discharge - 3

4 Duct Sealing and Balancing Equipment Testing/Tune-up Commissioning Retro-commissioning Space Heating Heat Pump Water Heating Load Control (Cycling) High Efficiency Insulation Blankets Low-Flow Showerheads Low-Flow Aerators Solar Assisted Motors High Efficiency Variable Speed Drives Industrial Process Compressed Air Motors Pumps Day lighting Applicances Refrigerators Dish Washers Clothes Washers Clothes Dryers Office Equipment Plug Load Building Envelope Insulation Infiltration Control Glazing and Glazing Control Windows Refrigeration High Efficiency Controls Variable Speed Compressors Multi-Stage Compressors - 4

5 Commissioning walk-in cooler measures Other (specify) Program Context Massachusetts Electric has offered this direct retrofit program to small business customers since 1990, with about 35,000 customers participating from 1990 through In recent years the has aggressively pursued the hardest-to-reach customers as the market among relatively larger, easier to reach customers become saturated.the combinatiopn of aggressive marketing techiques with a free audit and direct installation of measures with NGRID paying percent of the cost of the measures has made this a successful program for reaching small commercial customers. Program Components Program Management In 2002, the program lighting measures were delivered through two labor vendors supported by one product vendor, all selected through a competitive bidding process. One vendor who supplied both labor and materials delivered the walk-in cooler measures.the NGRID program manager manages the vendors' activities and provides technical expertise. Implementing Organization Utility Nonprofit Govt Private IOOther Implementation Structure InHouse TurnkeyContractor InHouseAndSubcontractors Other Reporting and Tracking Vendors (delivery contractors) input data into a database and prepare progress reports for the company. Metrics tracked include the number of audits, the number of installs, and kwh savings. NGRID is currently undergoing a shift from their former Ingress database platform to on Oracle database that will remove the paper information trail and put it into the system. Results are used in the yearly program planning cycle. Verification and Quality Control Since this is a direct install program where the company that does the audit also does the equipment installation, it is less difficult to verify installations, since there are not numerous vendors to track. A percentage of the installations is verified. Participation Process Small business customers call for an audit, which is performed for free. Qualifying measures are - 5

6 directly installed, with customer paying only about 20-25% of their cost and financing that on their electric bill. Customers must meet size criteria (average monthly demand of less than 100 kw or less than 300,000 kwh annually) Outreach, Marketing and Advertising The labor vendors market the program primarily through telemarketing and direct mail as well as leads that are referred by NGRID. For 2003, the Company worked with existing vendors to promote a web based marketing strategy to encourage increased participation. Installation and Delivery Labor contractors implement recommended energy efficiency measures (mostly lighting, but also some refrigeration) using equipment purchased in bulk through an equipment contractor. Both labor and equipment contractors are chosen by NGRID through a competitive bid process. Program Evaluation Lighting measures installed through the Small Business Program are evaluated using a billing analysis every 1-2 years to derive the energy realization rate. The billing analysis employs a statistically adjusted engineering model over a selected sample of participants and non-participants. The study was last performed in For interior lighting fixtures, a metering study was last completed in 2000 looking at 1999 participants and is tentatively scheduled to be initiated again in Impact factors for non-lighting measures were derived from studies completed in 1995 and Free-ridership and spillover factors for lighting and non-lighting measures are updated annually. Quantitative Data Program Year: 1/1/02 to 12/31/02 Participation rate is available Cost Breakdown is available Net Savings Breakdown is available Net-to-Gross is available Total Resource Cost Data is available Quantative Data Summary: Total program cost of $3.6 million includes customer contribution of $521,000, customer cost from spillover ($56,000), $144,000 in evaluation cost, and $113,000 for company incentive. Net annual energy savings estimated at 8327 MWh, with a TRC value of List Of Key Sources - 6

7 2002 DSM Performance Measurement Report, Massachusetts Electric & Nantucket Electric., July Energy Efficiency Plan. Massachusetts Electric & Nantucket Electric,, January Utility website, Contact Information Name Title Company Phone Michael McAteer (Massachusetts) (508) Ext. - 7

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