Natural Gas Energy Efficiency Programs Patrick McDonnell

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1 Natural Gas Energy Efficiency Programs Patrick McDonnell

2 165,000 customers 22 Communities > 160 years 165,000 customers 22 Communities > 160 years 375,000 customers 17 Communities > 115 years 37,000 + customers 20 Communities in Western MA > 160 years

3 Why Choose Natural Gas Affordable Comfort Convenient Domestic Environmentally Friendly Versatile

4 Why Energy Efficiency Why do we have Conservation Programs? To help our customers save energy and money Reduce environmental impacts Reduce the need for imported energy Economic benefits

5 CUSTOMERS Lowers Utility Bills Now & in the Future Improves Comfort, Health & Safety Gives More Control & Understanding ECONOMY Creates Local Jobs Gives Businesses a Competitive Edge Lowers Energy Prices for All Energy Efficiency Multiple Benefits ENERGY SYSTEM Increases Reliability & Resiliency Reduces Peak Demand Delays or Avoids Need for New Capacity ENVIRONMENT Reduces Air Pollution Reduces Greenhouse Gas Emissions Reduces Water Use

6 CT Energy Efficiency Programs - Overview Origin: Created in 1998 by legislation as part of utility deregulation (CGS Section m) Purpose: Provides electric and natural gas efficiency services and incentives to utility customers Funding: Primarily by a charge on customer utility bills Administration: The state s electric and distribution companies (Eversource, United Illuminating) and gas utilities (Eversource, Connecticut Natural Gas, and Southern Connecticut Gas) Stakeholder Input: The Energy Efficiency Board (EEB) advises and assists the utilities in developing and implementing the energy efficiency plans and programs Planning: The utilities submit a 3-year Conservation & Load Management Plan to the EEB, and then to DEEP for its review and approval

7 Energize Connecticut An initiative dedicated to empowering Connecticut citizens to make smart energy choices, now and in the future. We provide Connecticut consumers, businesses and communities the resources and information they need to make it easy to save energy and build a clean energy future for everyone in the state. It is an initiative of the Connecticut Energy Efficiency Fund, the Connecticut Green Bank, the State, and your local electric and gas utilities. The initiative has funding support from a charge on customer energy bills. 7

8 CT Gas Conservation Budgets $30.00 $25.13M $25.00 $20.00 Budget ($ in Millions) $15.00 $10.00 $ 5.79M $6.67M $10.47M $12.07M $15.60M $5.00 $2.51M $4.11M $1.50M $ CNG $0.75 $1.25 $2.08 $2.89 $3.34 $5.28 $6.08 $8.59 $13.97 SCG $0.75 $1.26 $2.02 $2.90 $3.34 $5.19 $5.99 $7.02 $11.16

9 Won t energy efficiency reduce the amount of gas we sell? If we sell less gas, my company won t make as much profit.

10 Decoupling in Connecticut Sec tt. Gas and electric distribution companies distribution revenue decoupling. In any rate case initiated on and after June 4, 2007, the Public Utilities Regulatory Authority shall order the state s gas and electric distribution companies to decouple distribution revenues from the volume of natural gas or electricity sales. Lost Sales Recover Recovery of lost sales is also allowed for utilities that have not been decoupled.

11 Comprehensive Energy Strategy(CES) Energy Efficiency and load management (CLM) was one of the five sector strategies that makes up the plan CLM also have a prominent position in the Industry and Electricity sectors The CES calls for an expansion of program activity, and a renewed commitment to CLM The CES supports Governor Malloy s stated goal of being number one in the nation for CLM

12 Gas Company Programs Gas Companies added to the ECMB in 2007 Funding was targeted to the income eligible population and limited to $1M/year Conservation Adjustment Charge (CAM) is the revenue source for gas programs=$12m/year

13 Residential Conservation Programs a) Home Energy Solutions Program (HES) b) Home Energy Solutions-Income Eligible Program (HES-IE) c) Home Performance with ENERGY STAR d) ENERGY STAR Lighting & Appliances e) Residential New Construction f) Residential HVAC Incentive Program g) Energize Connecticut Center (formerly the SmartLiving Center) h) eesmarts

14 Insulation is the most cost effective thing you can do in your home.

15 Home Energy Solutions TM (HES) - Core A comprehensive Home Energy Assessment For all customers Natural Gas, Oil, Propane & Electrically Heated Homes: $99 co-pay Authorized contractors Air Sealing weather stripping and door sweeps LEDs up to 4 at no additional charge CFLs (compact fluorescent lamp) - up to 25 Water Saving measures low flow showerheads & aerators, pipe wrapping Rebates

16 Home Energy Solutions, Cont d. HES Rebates: Available only to HES Participants Insulation Rebate covers up to 50% of the cost: $1.00/square foot of insulation for wall or ceiling $0.50/square foot of insulation for basements & garages Windows $50 per window to replace single pane windows with no storm with ENERGY STAR double pane

17 Gas Home Savings Opportunities

18 Home Energy Solutions-Income Eligible (HES-IE) A free comprehensive Home Energy Assessment for income-eligible customers Conducted by UI-authorized contractors Fuel-blind program Services available: Replace Incandescent to Compact Fluorescent (CFL s) Low-flow shower heads, faucet aerators Air sealing (windows and doors) Insulation assessment Refrigerator, freezer and dehumidifier evaluation units must be very old and in poor condition

19 ENERGY STAR Appliances Appliances Installing ENERGY STAR appliances will save energy and money. Energy Star Gas Dryers are now available. Visit energizect.enervee.com to compared models and to find appliance rebates

20 Residential HVAC Rebates The following Instant 2015 incentives are currently offered for eligible purchases. Hot Water Equipment ENERGY STAR Tankless Natural Gas w/ electric ignition and 0.82 Energy Factor (EF) or higher: $300 and $500 for EF of 0.94 or higher ENERGY STAR standalone storage tank with 0.67 EF or higher: $100 ENERGY STAR condensing storage tank with.95 Thermal Efficiency or higher: $300 ENERGY STAR Heat Pump tank with 2.0 EF or greater: $400 Warm Air Furnace and Natural Gas Boiler ENERGY STAR 95% AFUE or higher Natural Gas Furnace: $600 ENERGY STAR 86% AFUE or higher Oil Furnace: $200 ENERGY STAR 95% AFUE or higher Propane Furnace: $200 ENERGY STAR Natural Gas Boiler with or without domestic hot water included 90% AFUE: $750 (this may change in first quarter 2015) Boiler Circulator Pump Retrofit: $100 Boiler Outdoor Temperature Reset on Existing Natural Gas Boilers Only: $200, HES Assessment required prior to installation NOTE: Incentives for these products are now available upstream through distributors and should be applied for by your HVAC contractor when you purchase the equipment installation from them. Ask your HVAC Installer to apply the Energize CT discount directly to your installation cost. Visit for more information.

21 Natural Gas Boilers: 2013 Mail-in, 2014 Mail-in and 2014 Upstream

22 Furnaces: 2013 Mail-in, 2014 Mail-in and 2014 Upstream *The two major furnace distributors signed Upstream participation agreements in January 2015

23 Gas Distributor Enrollment Success - Program Pilot began October Statewide Rollout April 2014 Participating Participating Branch Distributors Locations Pending Branch Pending Distributors Locations 2 2

24 Quality Assurance Rebate vendor verifying against double-dipping Counter day events Gas territory placemats Post inspections Customer thank you postcard:

25 A heat pump water heater cuts electricity use in half.

26 In-store Signage

27 Residential New Construction Program for customers building a new home or remodeling (gutting all exterior walls) existing homes UI assists customers and builders through the process and provides design and technical assistance, as well as significant cash incentives for single or multi-family homes Interested Projects should contact Jenn Parsons at Benefits: Reduced operating and maintenance costs by 20%-25% compared to a home built to the standard building code in CT Resale values increase up to 10 20% over traditional homes Application available for download at: > Your Home > UI Products & Services > Residential New Construction

28 eesmarts eesmarts is an energy efficiency and clean, renewable energy learning initiative funded by the Energy Efficiency Fund. The vision of eesmarts is to facilitate students' understanding of the science, math and technology related to clean, renewable energy and electricity in order to create an energy-efficient ethic among all school-age students in Connecticut. Curriculum is developed for Grades K-12 Over 5,000 Connecticut teachers are involved Contact Info.: (877)

29 Commercial & Industrial (C&I) Conservation Programs a) Energy Conscious Blueprint (ECB) b) Energy Opportunities (EO) c) Small Business Energy Advantage (SBEA) d) Cool Choice Note: Gas incentives are available too *Energy assessments are available for C&I Customers via the ECB, EO, and SBEA programs

30 Energy Conscious Blueprint (ECB) Program is designed to maximize the energy savings potential at the time of initial construction/major renovation or equipment replacement when they are most cost effective during design Commercial, industrial, institutional and government building projects Installation and design upgrades of energy-efficient lighting and controls, HVAC equipment, motors, refrigeration, process equipment, gas boilers, etc. examples of lost opportunities Covers up to 95% of the incremental cost of installing measures for true new construction Prescriptive or whole building performance incentives are used where applicable Subject to utility caps > Your Business > UI Products & Services > Energy Conscious Blueprint

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32 Who doesn t want to be Green

33 Productivity and Green Building Productivity gains from working in efficient or green buildings: Estimates vary, but 6-16% is middle of the range In an typical office, people cost 100 times more than energy, so these increases are worth 6-16 times as much as eliminating the entire energy bill How do you already talk with clients about the value of green buildings and employee behavior?

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35 Want to be associated with this? Partner with the EE programs and get a score of 75 or higher.

36 We now spend less time on maintaining our HVAC systems and more time focusing on providing products and solutions to our customers." Leighton Lee IV, Facilities Manager, The Lee Company The Westbrook/Essex gas expansion presented The Lee Company s management team with opportunities to improve their overall operating costs and they seized them. In addition to constructing a new facility, implementing an energy management system, they also upgraded over thirty boilers with high efficiency units at their three campuses in Westbrook and Essex knowing that with the reduction in fuel prices the projects would pay for themselves in under three years. Since natural gas burns so clean compared to other fuels we were able to cut way back on our operating costs; delivery costs, service, maintenance and cleaning. Project: The Lee Company Measures: High-efficiency boilers, an Energy Management System and Construction of a new efficient facility Fund Incentive: $ 123,775 Energy Savings: 24,785 ccf natural gas/year Cost Savings: $ 27,263 annually Reduced Emissions: SOx- 540 lbs.; NOx- 16,000 lbs. The Energy Conscious Blueprint Program was there to assist with cash subsidies.

37 Energy Opportunities (EO) Encourages customers to replace functioning equipment with more energy-efficient options (excludes equipment that is >75% of its useful life use ECB rules) Who is eligible? Commercial, industrial, institutional, and governmental customers. C&I customers with a monthly demand GREATER than 200/kw Gas customers with firm gas (not an interruptible rate) Customers not being served by SBEA program Incentives up to 50% of the installed cost for eligible comprehensive projects Incentives for installed electric and/or natural gas measures: energy efficient lighting, lighting controls, compressed air systems, motors, HVAC, VFDs, steam traps, equipment upgrades, where energy and peak demand are reduced Subject to utility caps > Your Business > UI Products & Services > Energy Opportunities

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39 Business Sustainability Challenge Umbrella approach to support businesses becoming more sustainable - charts a course toward sustainability Makes sustainability: Accessible Achievable Profitable Addresses energy efficiency in the context of sustainability and competitive benefits

40 Small Business Energy Advantage (SBEA) For Small Business customers with MONTHLY electric bills between $150 and $20,000 Walk-through energy evaluation: An inventory is taken of everything that uses electricity or gas. AND the hours of operation A plan is then given to the customer advising them to install: High Efficiency lighting High Efficiency air conditioning replacement High efficiency motor replacement High efficiency refrigeration controls High Efficiency GAS measures that include: Showerheads, Pipe Insulation, Duct Insulation or Programmable Thermostats Experienced, Approved contractors perform the installations Incentives from the CT Energy Efficiency Fund pay between 20 to 40% of the total cost of the installation. Customers MAY qualify for interest-free financing for the balance of the cost, which would appear on their monthly electric bill.

41 Energy Star Gas Products Gas fired griddle. Gas oven Steam cooker J. Zanvettor & D. Collins

42 In some States, this is included in the programs

43 What is an LREC? Connecticut Class I Renewable Energy Certificate ( REC ) Produced by projects that sell to UI or Eversource under 15 year contracts Solicitation Process Competitive procurements annually State budget is $60 million of long-term REC purchases per year $4 million/year x 15 year contract terms Bidders bid REC prices only LRECs The contracts are for the purchase of RECs that UI and Eversource re-sell into the wholesale market to benefit ratepayers The contracts do not include the purchase of energy Energy can be sold to site host Excess production above site host s usage is procured under the applicable UI or Eversource tariff provisions

44 LREC Eligibility General LREC/ZREC Project Eligibility Criteria Must be located behind contracting utility distribution meter Must not have received funding/grants from CT Green Bank, or predecessor agency (other than low cost financing) Projects must be in service on, or after, July 1, 2011 LREC Project Requirements No larger than 2,000 kw Emissions <0.07 lbs/mwh NOx; <0.10 lbs/mwh CO; 0.02 lb/mwh VOCs, 1 grain per 100 standard cubic feet May include fuel cells and other low emission Class I resources, as well as all zero emission Class I resources

45 Gas Rebates Rebates paid for installation of high-efficiency equipment Specifically for commercial, industrial, institutional and agricultural customers Eligible equipment includes HE gas heating equipment HE gas water heating equipment HE kitchen equipment Applications available for download at > Your Business > UI Products & Services > Rebates

46 C-PACE Commercial Property Assessed Clean Energy Enables commercial, industrial, and multi-family property owners to access financing for qualified energy upgrades and repay through a benefit assessment on their property tax Administered by the Connecticut Green Bank Genevieve Sherman Manager, Commercial and Industrial Property Assessed Clean Energy Online:

47 Energy Efficiency Financing Residential Energy Efficiency Financing Energy Efficiency Payment Plan $1,000 to $3,000 to finance a single qualifying improvement at a 0% interest rate, with repayment through your electric bill. Comprehensive Improvement loan Low-interest loans for $3,000 to $25,000, terms ranging up to 10 years, to finance multiple qualifying improvements.

48 Energy Efficiency Financing Others through CT Green Bank Smart E-Loan Cozy Loan (Income Eligible Customers) CT Energy Conservation Loan: Qualifying Connecticut single family (1-4 units) homeowners may borrow up to $25,000 for a period of 10 years for the purchase and installation of eligible energy saving improvements

49 Energy Efficiency Financing C&I Energy Efficiency Financing Small Business Energy Efficiency Loans $500 to $100,000 available to finance combined electric and natural gas qualifying improvements at a 0% interest rate, with repayment through your electric bill. Commercial & Industrial Loans Low-interest loans for $2,000 to $1,000,000 (1 st $100,000 is subsidized) terms ranging up to 5 years, to finance multiple qualifying improvements.

50 Energy Efficiency Financing Other CT Green Bank Loans C-PACE Loan Energy Efficiency and Renewable Loans No Maximum; rates typically 5%-6%; terms generally years PURA Loan: Qualifying C&I projects must save > 50 kw electric savings Gas measures can be included Minimum is $1,000,000; maximum term is 10 years Typically 1% below the prime rate

51 Questions?

52 Thank you!

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