Introduction
This document describes Maine’s Energy Efficiency Program Plan (the Maine Plan); it describes the actions the Maine Public Utilities Commission will take to comply with P.L. 2001, Chapter 624 (The Conservation Act, or The Act). During the past year the Commission has initiated a number of rulemakings and investigations that have provided much of the foundation for the Maine Plan. Each of these has been conducted using a consultative process to gather input from stakeholders.
The Maine Plan provides a five-year estimate of the type of individual programs and the associated energy savings that can be expected given the current budget projections. The Plan should not be viewed as a static document. Certain elements of the plan have been required by legislation and must be included (e.g. the review of existing utility programs or the 20% allocation of funds to the small business and low income sectors). Others, such as the individual programs are in response to guidelines provided by the Act and other stakeholders and are more flexible. The Commission may wish to change the individual program designs to keep them current and improve their effectiveness and it may add new programs as additional opportunities are identified. In keeping with the Conservation Act, the Commission will hold at least one public hearing and invite, accept, review and consider comments and suggestions from interested parties comment prior to substantially revising individual conservation programs or the objectives and overall strategy of the Overall Program. In addition, the Commission will convene an annual open program review session with stakeholders to discuss program implementation issues.
The projected budget shown below is based on the most current projection of revenues available from the utility assessments, expectations of prior conservation contract payouts, and the areas of energy saving opportunity identified through Docket 2002-162. There is a high degree of uncertainty associated with these budget projections. The prior contractual commitments of Central Maine Power Company’s Power Partner’s program consume approximately half of the available conservation program fund for the year 2003. Although the commitments decrease in subsequent years, they continue to represent a substantial portion of the available budget for the next five years. Significant changes in the patterns of Power Partner’s program payouts could therefore, have significant effects on the overall budget[1]. The revenue projections in the budget are also uncertain as they are based only on proposed assessment levels that will not be certain until the Commission finalizes assessment levels for Consumer Owned Utilities[2]. If there are substantial impacts on the amount of money available to spend on new programs due to the Power Partners contracts, less money will be spent on the commercial and industrial program. If there are impacts due to changed assessment amounts for consumer owned and municipal utilities, the distribution of program benefits and services may need to be examined.
|
|
2004 |
2005 |
2006 |
2007 |
2008 |
|
Low
Income |
$1,200,000 |
$1,719,269 |
$2,218,861 |
$2,331,525 |
$2,757,198 |
|
Residential |
$1,252,679 |
$1,289,451 |
$1,718,861 |
$1,831,525 |
$2,257,199 |
|
Small
Business |
$1,670,238 |
$1,719,269 |
$2,218,861 |
$2,331,525 |
$2,757,198 |
|
Commercial/Industrial |
$1,252,679 |
$1,289,451 |
$1,664,146 |
$1,748,644 |
$2,067,899 |
|
Public
Facilities |
$1,722,917 |
$1,289,451 |
$1,664,146 |
$1,748,644 |
$2,067,899 |
|
Education&Outreach |
$417,560 |
$429,817 |
$500,000 |
$500,000 |
$500,000 |
|
Market
Research |
$167,024 |
$171,927 |
$221,886 |
$233,153 |
$275,720 |
|
Administration |
$668,095 |
$687,707 |
$887,544 |
$932,610 |
$1,102,879 |
|
Total |
$8,351,192 |
$8,596,343 |
$11,094,304 |
$11,657,626 |
$13,785,992 |
The projected first year energy savings are displayed below. Savings in future years will escalate once program development costs have been incurred and as greater proportions of program expenditures are devoted to incentives, market transformation activities, and training.
The Act requires Maine’s Energy Efficiency Program Plan to be cost effective according to criteria established by the Commission. In Docket No.2002-473 the Commission revised its Chapter 380 rule on cost effectiveness and adopted a Modified Societal Test as the basis for gauging cost effectiveness[3]. When bundled together, all of the activities required to implement these proposed programs will cost an estimated $8.3 million and yield estimated present value of benefits of $29.6 million. The ratio of benefit to cost from pursuing this plan is therefore 3.6 to 1.
Goals,
Objectives, and Strategies
The Goals, Objectives, and Strategies for the Maine Energy Efficiency Program Plan were developed in Docket No. 2002-162, Commission Order Establishing Goals, Objectives and Strategies for Conservation Programs Implemented Pursuant to P.L. 2001, ch. 624, (the Conservation Act) issued September 24, 2002. The goals objectives and strategies are listed below along with brief descriptions of implementation efforts that are already underway or planned for the near future.
The goals of the Maine Plan are:
I. Improve the efficiency of electric use by Maine residential consumers, businesses and other organizations,
II. Increase consumer awareness of cost effective options for conserving energy,
III. Create more favorable, sustainable market conditions for the increased use of efficient products and services,
IV. Promote sustainable economic development, and
V. Reduce environmental damage associated with energy use.
The Overall Program’s objectives are:
A. Implement a portfolio of conservation programs pursuant to a Maine energy conservation plan.
· A portfolio of more narrowly focused individual plans is described below.
B. Implement an organizational model for administration and management of energy conservation programs.
· The Commission has created “Efficiency Maine” to deliver its conservation fund programs.
· It has incorporated the energy programs division of the Department of Economic and Community Development.
· The two functions will merge into a single “Energy Programs Division.”
· The Commission has opened an Inquiry (Docket No. 2002-272) and used the information gathered to developed its own rule (Docket No. 2003-517) establishing procedures governing the selection of service providers as directed by 35-A M.R.S.A. §3211-A(3).
C. Review existing utility programs and implement a transition plan by the end of 2003.
· Central Maine Power Company’s “Nickel Program” and Bangor Hydro Electric Company’s Commercial Lighting Incentive Program have been terminated due to their overlap with Efficiency Maine’s small business program (see June 17, 2003 Order Docket No. 2002-161).
· The Commission has initiated an investigation into the administration of contracts associated with prior utility-sponsored conservation programs (Docket No. 2003-544).
· We seek comment in this document on existing utility sponsored water heater wrap programs.
· We are discussing joint or coordinated marketing of residential lighting programs with Consumer Owned Utilities.
D. Create an awareness of the conservation programs and the value of energy efficiency among the general public.
· As described more fully below, each of the individual programs within this overall program plan includes an educational component.
· We will develop a broadly based general awareness campaign to promote the early adoption of more efficient ENERGY STARâ products.
E. Increase the availability of energy efficient products and services through Maine businesses.
· As described more fully below, wherever possible, individual programs have been designed to increase the efficiency of products found in the supply stream normally used by Maine residents and businesses.
Strategies to ensure the portfolio of programs meets the goals and objectives of the Overall Program Plan are as follows:
1. Market Assessments: Conduct assessment studies as needed to understand the markets for efficiency products and services in Maine, and develop baseline measurements for efficient products and services to support program design and evaluation.
· Optimal Energy Incorporated in Docket 2002-162 estimated the amount of increased efficiency achievable through energy efficiency programs.
· MPUC is collaborating with the Maine Department of Administrative and Financial Services’ (DAFS) Bureau of General Services (BGS) to conduct a comprehensive survey of State owned buildings.
· Maine residents were surveyed to determine their awareness of efficient products prior to program start-up. (Maine Survey: Research Report by Market Decisions)
· All interim programs were developed with feedback mechanisms built into them to allow for program refinement.
2. Program Design and Implementation:
a) Develop and implement a portfolio of programs that allows all customer groups to participate in one or more programs.
b) Implement programs targeted at hard to reach markets, 20% of funds directed at programs for low-income customers and 20% directed at programs for small business customers.
· The terms “Low Income” and “Small Business” customer were defined in revisions to the Commission’s rule on Cost effectiveness Chapter 380. See Order in Docket No. 2002-473.
c) Design programs that balance primary effects with secondary effects.
· Each of the individual programs in the portfolio described below is designed to include an educational effort, and most include some element of market transformation.
d) Encourage the development of an energy efficiency infrastructure using existing market channels for program delivery where possible.
· The low-income residential program relies on the existing relationships between the Maine State Housing Authority (MSHA), the Community Action Programs (CAPS), and low-income customers to deliver the program.
· The residential ENERGY STARâ Efficient Products Program relies on existing retail businesses to deliver energy efficient products.
· The Small Business Program Efficiency program relies on recruiting trade allies who are already part of the supply chain to deliver efficient products and services to participants.
· The Commercial and Industrial program is designed to encourage customers, rather than Energy Service Companies, to sponsor projects.
e) Assess current utility programs to ensure compatibility with PUC sponsored programs.
f) Integrate educational efforts into all programs to promote buying habits for more energy efficient products and more energy efficient behaviors.
g) Implement an overall marketing effort to develop a clear brand image for our programs, support program implementation efforts, and increase public awareness of the benefits of energy efficiency.
· The Commission has created the Efficiency Maine brand which will be included in the promotional materials for all individual programs.
· Brand promotion will expand as budgets allow.
h) Adopt or adapt regional or national programs or programs from other states, as appropriate.
· The Commission learns of other regional and national programs through the Northeast Energy Efficiency Partnership (NEEP), and The Consortium for Energy Efficiency (CEE). We will continue our membership in both organizations.
· Residential and Commercial programs will promote the ENERGY STARâ brand along with United States Environmental Protection Agency and Department of Energy who have jointly created the brand.
3. Monitoring and evaluation:
a) Develop tracking and evaluation criteria and procedures for each program. Coordinate with regional efforts where possible.
b) Conduct evaluations that provide guidance on improving the efficient delivery and cost effectiveness of individual programs, but which are not so detailed as to create false precision.
· We will conduct continuous informal evaluations of individual programs on an ongoing basis and make changes when warranted.
· Formal evaluations by independent contractors will be conducted for each program as funds allow.
4. Funding:
a) Develop and implement an accounting and reporting system to track revenues by source and by category and to support evaluation and reporting requirements.
b) Seek additional sources of funds to enhance and support the plan.