a subsidiary of
Providing Energy
Choices
1
Providing Energy Choices
Agenda:








Welcome & Introduction
Rates and Energy Markets
2011 Conservation & Load Management Programs
Financing Programs at CDA
Overview of Southern Conn Gas Company
Renewable Energy Efficiency Programs
The Future of Energy: Building a Smart System
Q&A / Adjourn
Welcome
Mr. Anthony J. Vallillo
Executive Vice President and
Chief Operating Officer, UIL
President, UI
Who is
?
Headquartered in New Haven, CT, UIL Holdings Corporation is
the parent company for Berkshire Gas, Connecticut Natural Gas,
Southern Connecticut Gas and The United Illuminating Company.
50%
Who is
?
66 Towns in CT & MA -- 694,000 Customers -- 1,858 Employees
Southwest
& Coast
Line of CT
No. Central
& Southwest
Corner of CT
Southwest &
Central Coast
Line of CT
Western
Mass.
~324,000 Customers
~158,000 Customers
~173,000 Customers
~35,000 Customers
1,066 Employees
341 Employees
324 Employees
127 Employees
333 Sq. Miles
716 Sq. Miles
512 Sq. Miles
738 Sq. Miles
The Towns We Serve
Connecticut
Berkshire Gas
Conn. Natural Gas
Southern Conn. Gas
The United Illuminating Co.
Western
Massachusetts
Why Natural Gas?
• Consistent with core business – regulated energy
delivery
• Creates a larger, diversified energy delivery
company
• Integrates resources, efficiencies and best practices
to benefit all customers
For More Information
Please Visit Our Web Sites…
 www.
.com
 www.berkshiregas.com
 www.cngcorp.com
 www.soconngas.com
 www.uinet.com
Local Companies
Working For You
Questions?
Rates and Energy Markets
Mr. Michael Coretto
Associate Vice President
Regulatory Affairs, UIL
Topics for Today
 January 2011 Rate Changes & Impacts
 Update on UI Power Procurement
 Looking Ahead
 Questions
January 2011 Rate Changes
Several individual line items changed
Impact on typical customer receiving generation
services from UI:
Impact of January 1, 2011 Rate Changes
Rate is in cents per kWh
Avg. Rate
12/31/2010
23.92
Avg Rate
1/1/11
23.56
Change
-1.5%
Commercial Rate GST
18.83
18.20
-3.3%
Industrial Rate LPT
17.09
16.76
-1.9%
Residential Rate R
UI Average Electric Rates
2007 - 2011
Cents/kWh
22
20
18
16
14
12
10
8
6
4
2
0
Jan. 2007
Distribution
Jan. 2008
Transmission
Jan. 2009
C&LM
Jan 2010 GSC includes -0.090 c/kWh for FMCC
CTA
SBC
Jan. 2010
Renewables
Jan. 2011
GSC
FMCC
How UI Procures Power
Full Requirements Service





Required by statute and regulation
Bundled - all products needed to serve load
Supplier takes share of UI load serving obligation
Supplier takes all volume/migration risk
“Laddered” procurements over time
Quarterly RFPs
 Oversight by consultants to DPUC and OCC
 Joint Recommendation to DPUC
Laddering of Standard
Service Procurement
100%
90%
80%
Procured in Round 6, May 2008
Procured in Round 7, August 2008
Procured in Round 8, November 2008
Procured in Round 9, February 2009
Procured in Round 10, April 2009
Procured in Round 11, July 2009
Procured in Round 12, November 2009
Procured in Round 13, February 2010
Procured in Round 14, April 27 2010
Procured in Round 15, July 27 2010
Procured in Round 16, October 27, 2010
Procured in Round 17, February 9, 2011
70%
60%
50%
40%
30%
20%
10%
0%
1st H '10
2nd H '10
2011
2012
2013
Power Prices vs. Natural Gas
Prices: 2011
$/MWh
$/MMBtu
$120
$11.50
$110
Internal Hub Cal 2011
Forward Power Price $/MWh
$10.50
$100
Henry Hub Cal 2011 Natural
Gas Price $/MMBtu
$9.50
$90
$8.50
$80
$7.50
$70
$6.50
$60
Auction
Dates
$5.50
$4.50
$40
$3.50
5/
1/
6/ 08
19
/0
8/ 8
7/
9/ 08
25
11 /08
/1
3/
0
1/ 8
1/
2/ 09
19
/0
4/ 9
9/
5/ 09
28
/
7/ 09
16
/0
9/ 9
3
10 /09
/2
2
12 /0 9
/1
0/
1/ 0 9
28
/
3/ 10
18
/1
5/ 0
6/
6/ 10
24
/
8/ 10
13
/
10 10
/1
11 /10
/1
9/
10
$50
Components of
Generation Service Charge
5.5%
1.1%
3.4%
2.5%
1.9%
Energy
Capacity
2.9%
Congestion
1.5%
Reserves
Other ISO Products
RPS
19.1%
62.0%
Distribution Losses
Cost and Risk of Credit
Market/Volume Risk Premium
Component
Energy
Capacity
Congestion
Reserves
Other ISO Products
RPS
Distribution Losses
Cost and Risk of Credit
Market/Volume Risk Premium
TOTAL
Percent
62.0%
19.1%
1.5%
2.9%
1.9%
2.5%
3.4%
1.1%
5.5%
100%
Generation is About
½ of System Cost
System Average Rate for 2011, by Component
12%
Cents/kWh
Distribution
4.88
Transmission
1.78
Generation Services 10.13
Social Policy Costs
2.26
26%
9%
53%
Distribution
Transmission
Generation Services
Social Policy Costs
TOTAL
19.05
Approximately 70% of the load in UI’s
territory is served by 3rd Party Suppliers
MWh
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
Dec-06
3rd Party LRS - 24.0%
3rd Party SS - 43.0%
UI LRS - 1.1%
UI SS - 31.9%
Jun-07
Dec-07
Jun-08
Dec-08
Jun-09
Dec-09
Jun-10
Dec-10
Looking Ahead
Under Current Market Conditions, UI’s Generation
Services Charge for Standard Service is projected
to decline in 2012 vs. 2011
Congestion Costs in CT continue to be a non-issue,
due to transmission additions, new generating
capacity, and customer DG installations
Issue of Renewable Portfolio Standards and how best
to meet them
UI Average GSC Rates
2009 – 2011 and Projected 2012
Cents/kWh
12
10
8
6
4
2
0
2009
2010
2011
2012P
Impact of New Transmission
and Capacity Additions
Congestion 2005 - 2010
$10.00
$/MWh CT Zone
$8.00
$6.00
$4.00
$2.00
$05
05
nra
p
J
A
5
5
06
06
-0
l-0
nrct
a
p
Ju
O
J
A
6
6
07
07
-0
l-0
nrct
a
p
Ju
O
J
A
7
7
08
08
-0
l-0
nrct
a
p
Ju
O
J
A
$(2.00)
Month
8
8
09
09
-0
l-0
nrct
a
p
Ju
O
J
A
9
9
10
10
-0
l-0
nrct
a
p
Ju
O
J
A
0
0
-1
l-1
ct
Ju
O
Renewable Portfolio Standard
3 Classes of renewables in CT
Long-run cost impact could be substantial
New England Class I Renewable Supply Need
25000
Demand for Class I
Renewables
GWh
20000
Additional
Need
15000
Surplus
10000
Expected
from Planned
5000
Existing
0
2009
2013
2015
2020
CT Renewable Portfolio
Standards
Estimated Annual Costs
$ Millions
Year
Class I
Class II or
Class I (add'l)
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
1.5%
2%
3.5%
5%
6%
7%
8%
9%
10%
11%
12.5%
14%
15.5%
17%
19.5%
20%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
Class III
Program
Total
1%
2%
3%
4%
4%
4%
4%
4%
4%
4%
4%
4%
4%
4%
4.5%
5%
7.5%
10%
12%
14%
15%
16%
17%
18%
19.5%
21%
22.5%
24%
26.5%
27%
Q&A
Low
13.6
16.1
30.4
44.5
55.4
66.3
72.6
79.1
85.1
91.3
100.7
110.6
120.1
130.8
148.2
152.9
High
30.7
37.8
66.7
99.4
121.2
143
160.3
178
194.6
211.8
237.5
264.6
290.7
319.8
637.1
379.7
Data from DPUC presentation , 12/ 2010
Costs of Renewable Technology
Technology
Landfill Gas
Estimated Levelized Costs
Cents/kWh
5.6
Biomass
11.0
Hydro
11.0
Wind
11.2
Fuel Cells
17.4
Offshore Wind
19.9
Solar PV
52.0
Source: IRP, Table 10, P.62; Brattle Report, Section 10D (RPS Section)
Today’s power
supply costs
are in the range
of 7-8
cents/kWh.
Questions?
2011 Conservation and
Load Management Programs
Mr. Richard Steeves
Energy Efficiency Board Chairperson
Mr. Patrick McDonnell
Senior Director, UI
Energy Efficiency & Background
The overall vision for the future evolution of the Energy Efficiency Fund C&I programs is to
cost-effectively support a sustainable and competitive business climate for Connecticut’s
businesses and industries based on bottom-line solutions for economic competitiveness,
environmental stewardship, and social responsibility.
Connecticut Energy Efficiency Fund was created in 1998 by CT State Legislature
Energy efficiency is a valuable resource

Reduces air pollutants and greenhouse gases

Creates monetary savings for customers

Reduces need for more energy generation

Creates jobs
Energy Efficiency Programs
 Offer technical assistance to commercial & industrial customers who
want to improve energy efficiency
 Offer financial incentives to help implement energy-efficient measures
 No. 8 ranking in ACEEE’s 2010 State Scorecard
 Support economic growth in Connecticut*
– Creates more than 2,675 direct jobs
– Acts as an economic development engine creating businesses to deliver energy
efficiency services
*CT Renewable Energy / Energy Efficiency Economy Baseline Study - March 27, 2009
Program Administration
Connecticut Department
of
Public Utility Control
Energy Efficiency
Board
Municipalities
Bozrah Light & Power
Groton Utilities
Jewett City Dept. of Public Utilities
Norwich Public Utilities
South Norwalk Electric & Water
Third Taxing District
Wallingford Electric
Electric Companies
Connecticut Light & Power
United Illuminating
Natural Gas Companies
Connecticut Natural Gas
Southern Connecticut Gas
Yankee Gas
2010 Energy Efficiency Fund
Program Results for UI

2010 lifetime energy savings – 793.7 Million kWh

2010 summer peak demand savings – 10.7 MW

$152.8M saved in electric energy costs
(Lifetime from 2010 investments)
• ~$18.4M saved annually
Every dollar spent in 2010 on efficiency programs will generate more than $3
in future lifetime electric system benefits
C&LM Funding Sources
2010 C&LM Revenue Sources
$179.5 (millions)*
$120.8
Electric customers (3 mills per
kWh)
ISO-NE Forward Capacity
Market (FCM)
Class III Renewable Energy
Credits
American Reinvestment and
Recovery Act (ARRA)
$11.8
$15.3
$9.8
$12.3
*Pending DPUC Approval
$9.5
Regional Greenhouse Gas
Initiative (RGGI)
Firm Natural Gas Customers
Energy Efficiency Fund Sources
 Funding is generated from electric and natural gas utility
customers
– Electric customers pay 3 mils per kilowatt-hour
 Funding is generated from natural gas utility customers
– Natural gas programs are funded through gas utility bills and
approved by the Department of Public Utility Control
– Programs are for firm gas customers only
2011 Conservation & Load
Management Programs
Maximizing CT’s Energy Efficiency Funds
Pat McDonnell
Sr. Director, Conservation & Load Management
2011 C&I Program Budgets*
CL&P $36,879,076
UI
$ 9,207,186; ~ $1.0M committed
YGS
$ 2,700,000
CNG
$ 2,000,000
SCG
$ 1,850,000
*Proposed – Pending DPUC Approval (Dockets 10-10-03 & 10-10-04)
Includes Energy Efficiency Fund, RGGI, ODR and ARRA Funds
2011 C&I Program Budgets*
Incentives
CL&P $26,493,000
UI
$ 6,482,278
YGS
$ 2,149,672
CNG
$ 1,512,321
SCG
$ 1,331,253
% committed
~ 70%
~ 15%
~ 50%
~ 40%
~ 15%
*Incentive budgets only
Proposed – Pending DPUC Approval (Dockets 10-10-03 & 10-10-04)
Includes Energy Efficiency Fund, RGGI, ODR and ARRA Funds
2011 Project Incentive Caps
 $750,000 Cap (cumulative total all programs) per Federal Tax ID
per year
 $150,000 Cap per metered site per program per year
 $100,000 Financing Cap per Municipality per project
 $400,000 Financing Cap per Municipality per year
 Gas Incentives ≥ $100,000 require DPUC approval
The Incentive Cap does not apply to natural gas projects
Commercial & Industrial Programs
New Construction,
Major Renovation &
Equipment
Replacement
PRIME
Retrofit
Projects &
Small
Business
Operations &
Maintenance
Projects
Loans &
Financing
Retro
Commissioning
Load
Management
Energy Conscious Blueprint (ECB)
 Designed to capture electric and natural gas energy
savings when they are most cost effective - during the
design phase of new construction, major (gut)
renovation or adding new equipment.
 Typically referred to as lost opportunities
ECB - Custom – New Construction
(Whole Building Performance)
Designed to encourage integrated designs & high performance buildings
 Model Subsidy



Base or “Code” Building Model
High Performance Building Model
$1000
$5000 Maximum
Building /System Compliance (Installation)

Whole Building Incentive (% better than code/$/sq ft)
–
–
–
–
–
–

10%
11% -15%
16% -20%
21% - 25%
26% - 29%
> 30%
$0.15/ sf
$0.30/ sf
$0.60/ sf
$1.00/ sf
$1.50/ sf
$2.00/ sf
Certification Bonus
– LEED Silver / 2 Green Globes
– LEED Gold / 3 Green Globes
– LEED Platinum / 4 Green Globes
$ 5,000
$10,000
$15,000
ECB - Prescriptive
Lighting System Related Projects
 Lighting designs/installations ≥ 10% less than code
– Incentives = lesser of $0.15/sq ft or $50/fixture
 Lighting designs/installations ≥ 30% less than code
– Incentives = lesser of $0.50/sq feet or $50/fixture
 Occupancy Sensors $20/fixture controlled
– Buildings over 5,000 sq. ft. must have lighting control strategy
(as required by code)
 Subject To Utility Caps
* Code = ASHRAE 90.1-2004 (all addenda)
ECB - Prescriptive
(continued)
For non-lighting system related projects:

We pay up to 95% of the incremental cost for new construction
and up to 75% for equipment replacement

We measure the incremental cost and the energy savings relative
to Building Code* or reasonable & customary design practices

Agreement is prepared and signed prior to ordering equipment &
materials, or construction

Subject to Utility Caps
*Code = ASHRAE 90.1-2004 (all addenda)
Specific Examples
 New construction
 High reflectivity roofing
 HE lighting, including w/occupancy sensors
 HE brine chillers
 HE heat pump loop system
 HE rooftop HVAC units
 Water-to-air heat wheels
 Variable frequency drives w/ HE motors on fans, pumps & kitchen hoods
 Oversized cooling towers
 CO2 control for air handling units
Energy Opportunities (EO)
 Designed to improve the energy efficiency of
customers’ existing facilities via retrofit opportunities.
 Retrofit: to voluntarily exchange or modify inefficient,
functioning equipment with high-efficiency alternatives
(for the sole purpose of saving $)
Energy Opportunities (EO)
 Replace inefficient building systems
 Lighting system replacements
& controls
 Heating & cooling system upgrades
 Process system upgrades
 Building control systems & repair
 Incentives designed to pay up to 50% of the
retrofit cost for qualified projects
Energy Opportunities (EO)
For Lighting & non lighting system projects
 We can pay up to 40% of the installed cost of the energyefficient system change.
– Up to 40% for qualified LED / Induction lighting technologies
– Interior or exterior applications
 Lighting design must exceed Code by at least 15%.
If not, use Express Lighting Rebate Application
 We measure the installed cost and the energy savings relative
to what currently exists
 Agreement is prepared and signed prior to ordering equipment
& materials
Comprehensive Initiative
A Comprehensive project is defined by the following criteria:

Must have energy savings from at least two electric end uses and at least
two measures
– Gas measures within the project are not considered by the criteria

One end use must equal 85 percent or less of the project’s energy savings
or peak summer demand reduction value (based on $0.35 per annual kWh
or $1000 per kW).

The remaining end use(s) must equal 15 percent or more of the project’s
energy savings or peak summer demand reduction value (based on $0.35
per annual kWh or $1000 per kW).
* For more information, contact your UI Representative.
Comprehensive Incentives
• Lesser of:
– 50% installed cost (electric portion only)
– Buy-down of project to 2–year payback based on customer
electric metered savings
– Energy savings caps based on the greater of $0.35 /annual
kWh or $1000/summer peak kW combined
 Additional comprehensive incentives for firm gas
projects:
– 10% added to all qualifying gas measures
Operations & Maintenance

Improve electrical & gas efficiency of equipment through
changes/repairs

Not intended for normal preventive maintenance, repetitive
procedures for a customer on a regular basis, or to subsidize
major equipment purchases
Typical Measures
- EMS maintenance, i.e., replacement of defective sensors, relays and
actuators, reprogramming
- Compressed air system improvements (repair of leaks)
Incentives
- Up to 40% of installed costs
Retro-Commissioning (RCx)

Provides technical, engineering & implementation support to optimize the
operation of your facility with out installing capital equipment

Improve electrical and/or gas efficiency through changes or repairs Reset
chiller discharge temperature

Reset pump and fan speeds; Demand ventilation
Optimization of AHU supply fan static pressure
Broaden humidity set points in data centers
Boiler optimization
Confirm sequence of operations for EMS equipment
Facilities must be ≥ 100,000 sq. ft. with Direct Digital Control system that
can conduct trending & reporting
-
Incentives up to 100% for investigation fees (implementation required)
Incentives up to 40% for the implementation costs
PRIME
(Process Reengineering for Increased Manufacturing Efficiency)
 Increase productivity and reduces per-unit energy usage through
Lean Manufacturing Techniques and the Kaizen process
 Focuses on industrial manufacturing processes
 Typical benefits
– Reduces waste of material, time and transportation
– Reduces inventory requirements
 Using utility approved contractors, the first two events are provided
at no cost to the customer. The customer shares 50% of the cost
for up to two subsequent events
Business Sustainability Challenge
 Utilizes a holistic approach to educating customers on the value of
managing energy as a resource
 Makes energy and carbon management an integral and
sustainable part of your business
 Provides businesses an opportunity to achieve long-term
sustainability through:
− energy management practices and investments
− defined environmental/sustainable objectives
− continuous improvement objectives
Small Business Energy
Advantage (SBEA)
 Retrofit program for C&I customers with ≤ 200 kW average billing
demand
 Audits and installation provided by approved contractors
 0% financing for qualifying customers
 Maximum loan amount - $100,000
 On the Bill repayment available
 Maximum Loan Term
– UI - 48 months
– CL&P - 36 months
SBEA
 Typical measures include:
–
–
–
–
–
–
–
Energy-efficient lighting,
Lighting controls,
Refrigeration equipment and controls,
Compressed air systems,
Variable speed drives,
Energy management systems
Programmable T-stats, etc.
 Incentives up to 40% of installed costs for eligible measures
 Eligible comprehensive projects can earn incentives up to 50% of
the installed costs
 Subject to utility caps
Loans & Financing
 2011 SBEA & Municipal Financing
– 0% Interest free loan with On Bill Repayment
– $100,000 Maximum Loan (per qualified project)
– Maximum Loan Terms
• UI - 48 months; CL&P - 36 months
– Customer size
• up to 200 kW
– Requires good bill payment history with utility
– Utilities provide the funding source
Loans & Financing
 2011 Small C&I Energy Efficiency Loan
–
–
–
–
Third-party lender and loan approval
Subsidized low interest loan - ~7%
Maximum Term = 5 yrs
Loans between $2,000 and $250,000 with interest subsidies on
the first $100,000
– Customer eligibility
• in business for at least 3 years
• average 12 month demand greater than 10 kW up to 350 kW
– Projects not eligible
• Projects utilizing SBEA or Municipal Financing
• Any new construction/major renovation projects
Other Financing Opportunities
Connecticut Hospital Association (CHA)

Helps Connecticut hospitals finance major energy-efficiency projects.
– Contact - Bob Sandler
– (203) 294-7312
Department of Public Utility Control (DPUC) - offers loans to C&I customers for installing
distributed generation equipment & energy efficiency projects that reduce system demand.
 3rd Party - Bank of America
 One percent below Customer’s applicable rate or no more than the prime rate
 Minimum Loan Amount $1,000,000
– Contact - Courtney Guzman (Bank of America)
• (617) 434-2888
• courtney.guzman@bankofamerica.com
– Contact - Maureen Hoffman (DPUC)
• (860) 827-2811
• maureen.hoffman@po.state.ct.us
• DPUC Web Information: http://www.ct.gov/dpuc
Tax Incentives
 Energy-efficient Commercial Buildings Tax Deduction
(projects completed before Jan.1, 2014)
 Renewable-energy Tax Credits And Grants
 Qualifying Advanced Energy Project Investment Tax Credit
– More Info:
•
•
•
•
•
www.efficientbuildings.org
www.energytaxincentives.org/business
www.dsireusa.org
www.irs.gov/irb/2006-26_IRB/ar11.html
www.treas.gov/recovery
Tax Incentives
Tax Deduction vs. Tax Credit
 A deduction is a cost subtracted from the adjusted gross
income when calculating the taxable income; tax liability is not
reduced dollar for dollar like a tax credit, but in proportion to
the tax payer’s tax bracket
 Commercial Buildings Tax Deduction (all systems) capped at
$1.80 per sq ft
 Commercial Buildings Tax Deduction (partial systems) capped
at $.60 per sq ft
 Consult EPAct 2005 and IRS Notice 2006-52 for qualifications
Courtesy of www.efficientbuildings.org and www.lightingtaxdeduction.org/tax_deduction.html
Upcoming Training Events
 March – Energy Basics
 April – LEED, An Overview
 May – Building Performance Modeling: Equest
(Interactive)
 May – O&M Best Practices
 June – Commissioning
 June – RetroCommissioning
Check CL&P/UI Web Site Events Calendars For Updates/Registration
Summary
 Energy Efficiency Fund offers significant monetary
assistance for energy efficiency
– UI offers funding, financing and technical assistance
 CT is a national leader when it comes to implementing
the Energy Efficiency programs
 Maximize the “Double Dip”
− CEEF $$$; Federal Tax $$$
How Do You Get Involved?
 Pre-design / Design Phase
 Become aware of utility incentive programs
 Engage a utility representative throughout project
 Sign a Standard Agreement prior to proceeding
with the project
UI Contacts
• UI Account Managers
– Nick Cerjanec, Larry Mai, Tom Marella, Roger Parisi, John Albini,
Barbara Pellicano, Gary Pattavina, Rick Valine, Chuck Winchell
• Energy Engineers
– Ken Bouchard, Mike Doucette, Mike Guarino, Dick Lombardo,
Pat Reavy, John Sigona, Mike Stein
• C&I Programs Roy W. Haller (203) 499-2025
• Residential Programs Chris Ehlert (203) 499-2965
• Natural Gas Programs Roy W. Haller (203) 499-2025
Web Information
CEEF/DPUC www.CTEnergyInfo.com
CL&P
www.cl-p.com
UI
www.uinet.com
Yankee Gas
www.yankeegas.com
CNG
www.cngcorp.com
SCG
www.soconngas.com
CCEF
www.ctcleanenergy.com
Questions?
Pat McDonnell
Senior Director, Conservation & Load Management
The United Illuminating Co.
Office 203-499-2923
Pat.Mcdonnell@uinet.com
Financing Programs - CDA
Ms. Cynthia Petruzzello
Vice President
Connecticut Development Authority
About CDA
• CDA is a quasi-public authority that provides
credit enhancements that enable and encourage
companies across Connecticut to expand and
succeed and, in the process, drives economic
growth
• CDA’s mission is to provide debt financing and to
help businesses grow in Connecticut
• Self-sustaining – not part of the state’s budget
• Through its network of partnerships with banks
and other private-sector entities, CDA offers a
wide variety of financial assistance programs
www.ctcda.com
What We Do
• Stimulate business investment and create
jobs by providing financing that:
– Creates economically vibrant urban communities
– Enhances the state’s industrial and economic
base
– Redevelops environmentally contaminated
properties
– Encourages the expansion of cutting-edge
industries
– Increases employment
– Increases the state and local tax revenues
www.ctcda.com
How We Do It
• Provide loans for all general business purposes
• Comprehensive financing for companies
undertaking major expansion in Connecticut
• Incentives for municipalities and developers for
remediation and redevelopment of Brownfields
and for information technology projects
www.ctcda.com
How We Do It
• CDA is authorized to issue individual loans up to
$10 million, with favorable interest rates and
terms up to 20 years
• The Small Business Loan Guarantee Program
(URBANK) provides portfolio insurance to
participating banks to assist them in making loans
that are somewhat riskier than conventional loans
• Tax Increment Financing (TIF) creates funding for
projects that may otherwise be unaffordable to
municipalities such as Brownfield and IT
investments
www.ctcda.com
Energy Initiatives
• In partnership with the Connecticut Clean Energy
Fund (CCEF), CDA has been qualified to participate
as a risk sharing partner in the Department of
Energy’s (DOE) Loan Guarantee Program
• CDA provides loans or loan guarantees for energy
efficiency projects
• CDA finances clean energy projects and can bridge
State and Federal grants
• CDA administers the Qualified Energy
Conservation Bond (QECB) ARRA program
www.ctcda.com
DOE – Loan Guarantee Program
• ARRA 2009 - Title XVII of Energy Policy Act
provides broad authority for DOE to guarantee
loans for energy projects
• As Connecticut’s loan-guarantee issuing
authority, CDA has been actively involved in the
development of the public-private partnership
model
www.ctcda.com
Eligible Project Categories
• Alternative Fuel Vehicles
• Biomass
• Efficient Electricity Transmission, Distribution and
Storage
• Energy Efficient Building Technologies and
Applications
• Geothermal
• Hydrogen and Fuel Cell Technologies
• Energy Efficiency Projects
• Solar
• Wind and Hydropower
www.ctcda.com
Qualified Energy Conservation Bonds
• Over $36 million in bonding allocation to
Connecticut via ARRA to help lower the financing
costs of green energy projects
• QECBs are tax credit bonds designed to benefit
private and public entities by providing a 70%
interest subsidy
• CDA administers the program and acts as conduit
issuer of the allocations for private activity
projects for applications
www.ctcda.com
CDA Solutions that Deliver Value
• CDA offers a think tank of financial solutions that
can be customized to address specific customer
borrowing needs
• CDA provides timely implementation of financial
analysis and loan approval
• CDA resources and experience allow quick
responses to changing economic conditions
www.ctcda.com
In Closing
• CDA is a stable, strong member of the state’s
economic development team
• CDA’s strength is as a committed lender and in
providing simple, flexible and efficient financing
programs
• CDA’s resources and experience allow quick
responses to changing economic conditions
• CDA’s goal is to ensure that business growth, job
creation and exports are not hindered by lack of
financing
www.ctcda.com
• 999 West Street
• Rocky Hill, CT 06067
•
Cynthia Petruzzello - (860) 258-7833
• www.ctcda.com
Overview of Southern Conn.
Gas Company
Mr. William Reis
Vice President Administrative Services, UIL
Mr. Gregg Therrien
Director, Regulatory and Pricing
SCG/CNG
Southern Connecticut Gas
New Haven Gas Light – 1847
Bridgeport Gas - 1849
Serve 177,000 customers in 23 towns
2,300 miles of main
315 employees
Acquired by UIL Holdings in November 2010
Wholly owned Subsidiary
Service Territory
Berkshire Gas
Conn. Natural Gas
Southern Conn. Gas
The United Illuminating Co.
Western
Massachusetts
Orange Operations Center
Customer Relations CenterBridgeport
LNG Facility - Milford
Key Account Representatives
Your primary contact at SCG
Help find solutions to your most complex energy
projects or assist with day to day activities
They are well versed in the technologies for natural
gas, such as distributed generation (DG),
desiccant dehumidification, micro turbines, fuel
cells, and natural gas vehicles
Help you determine best rate or help get a supplier
Assist customers with Natural Gas Conservation
Programs
Key Account Representatives
SCG Rates Structure
Gas Rates comprised of two major categories:
• Delivery Rates
•
•
•
•
Customer charge
Daily demand Meter charge
Demand charge
Delivery per CCF charge
• Supply Rates
• PGA
• Sales Services Charge (“SSC”)
- OR -
• 3rd Party transportation charge (Gas Marketer)
• Transportation Services Charge (“TSC”)
SCG Rates Structure - Delivery
C&I Customers Assigned to their rate class
based on annual usage
 Rate SGS (small, <5,000 CCF)
 Rate GS (>5,000 < 20,000 CCF*)
 Rate LGS (>20,000 CCF*)
For Larger C&I customers (rates GS & LGS) the
monthly demand charge is the highest cost
delivery rate component
* Breakpoint will change to 30,000 CCF with implementation of new rates in 2011
SCG Rates Structure - Delivery
MDQ Example
Nov
1400
Dec
Jan
Feb
Mar
12/17/2009
Ratchet
1200
1000
The Billed MDQ is the higher of the actual peak daily DDM
read, the Average Annual Daily Use (AADU) or tariff
minimum. If no DDM read is available, an estimate using a
base and heat factor per degree day is substituted.
MCF
800
600
400
An annual review is conducted each April to determine if
any customer MDQ values should ratchet down starting
with May bills
200
MDQ Ratchet Period (Up only)
11
/1
11 /200
/1
5 9
11 /200
/2
9
9
12 /200
/1
9
3
12 /200
/2
9
7/
20
1/
0
10 9
/2
1/ 010
24
/2
0
2/ 10
7/
2
2/ 010
21
/2
0
3/ 10
7/
2
3/ 010
21
/2
0
4/ 10
4/
2
4/ 010
18
/2
0
5/ 10
2/
2
5/ 010
16
/2
5/ 010
30
/2
6/ 010
13
/2
6/ 010
27
/2
7/ 010
11
/2
7/ 010
25
/2
0
8/ 10
8/
2
8/ 010
22
/2
0
9/ 10
5/
2
9/ 010
19
/2
10 010
/3
10 /201
/1
7 0
10 /201
/3
0
1/
20
10
0
Date
Daily MCF
Billed MDQ
AADU
SCG Rates Structure - Supply
Company Sales Service
 Price established monthly through the
Purchased Gas Adjustment (“PGA”)
 Regulated by DPUC
Third-Party Supplier Service
 Negotiated pricing with registered gas
marketers
– Terms and Conditions also negotiable (e.g., fixed
pricing)
One year term commitment for either supply service once election is made
Questions?
Questions?
John Dobos (203) 795-7830
Mike Smalec (203) 795-7748
Gregg Therrien (860) 727-3184
Renewable Energy Efficiency
Programs
Mr. David Ljungquist
Associate Director – Project Development
Connecticut Clean Energy Fund
Connecticut Clean Energy Fund

Created in 1998, launched in 2000

Mission: Promote, develop and invest in clean
energy sources for the benefit of CT ratepayers


Funding:

Primary – Connecticut - surcharge on electric
utility bills ~ $28 million/year

RGGI proceeds & miscellaneous ~ $4 million/yr

New – Federal American Recovery &
Reinvestment Act of 2009 ~ $20 million between
September, 2009 and March, 2012
Methods: Grants and other funding for renewable
energy projects
3
CCEF Goals
1.
Create a supply of clean energy (installed capacity)
2.
Foster the growth, development and commercialization of
clean energy technologies
3.
Stimulate use of clean energy by
increasing public awareness
Clean Energy Technologies – On-site
Solar PV
and
Solar Thermal
Wind
Geothermal
Fuel Cells
Click here for more information.
Clean Energy Technologies – Grid-Feed
Biomass
Wave/Tidal
Landfill
Gas
Hydro
CCEF Commercial Programs
On-Site DG – “Best of Class RFP”:
Launched in November 2010
 Proposals due February 28, 2011

Awards to be announced April 22, 2011
 Limited to UI/CL&P ratepayers


Open to PV, fuel cells, wind, landfill gas,
biomass, hydro, waste heat recovery for power
generation

Funding available:
Solar PV
Fuel Cell
Other Technologies
Best of Class
$2,400,000
$1,800,000
$ 230,000
Public Buildings
$1,200,000
N/A
$ 150,000
CCEF Commercial Programs – Cont’d
On-Site DG – “Best of Class RFP” (continued):

Competitive process, no guarantee of any grant

Maximum total incentive to any one owner is $4 million during
any two-year period.

Building must meet current energy codes or energy audit
recommended measures

Incentive paid as grant, in 3 stages:
Milestone
Delivery of generating equipment to site
Startup, commissioning, and inspection
After six (6) months of successful operation
Payment
50%
40%
10%
CCEF Commercial Programs – Cont’d
On-Site DG – “Best of Class RFP” (continued):


Evaluation Criteria

Project Economics
40%

Deployment of the Eligible Resource/Technology
20%

Probability of Project Completion/Feasibility
20%

Public and Unique Ratepayer Benefits
20%
Website: www.ctcleanenergy.com/bestofclass
CCEF Commercial Programs – Cont’d
“Best of Class” – Solar Photovoltaic (PV):

Size limits: 10kW - 200 kW (max. based on peak minus base)

Incentive structure:
Incentive Blocks
≤100 kW PTC
Maximum Incentive
For-Profit Owners**
Not-for-Profit Owners
($/WattPTC)
($/WattPTC)
$2.00/Watt
$4.00Watt
>100 kW but ≤200 kW
$1.25/Watt
$3.50/Watt
>200 kW
$0.00/Watt
$0.00/Watt
Evaluation timeframe
20 years
**Includes PPAs with not-for-profit entities

Shading analysis required

Roof life & strength must be documented

Maximum incentive adjusted for shading, tilt, azimuth, inverter
efficiency
CCEF Commercial Programs – Cont’d
“Best of Class” – Other Technologies:

Incented size limits (all other): None - must be appropriate to on-site load

Incentive limits:
Technology
Funding cap
Evaluation timeframe
Maximum Incentive
Fuel
Small
Small
Landfill
Cells
Wind
Biomass
Gas
Hydro
40% of
40% of
40% of
40% of
$2.50/W
Total Cost Total Cost Total Cost Total Cost
10 yrs*
15 yrs
10 yrs
10 yrs
20 yrs

Fuel cell projects need documentation of electric and thermal loads

Wind projects <100 kW need computer wind analysis report, wind map of
area. Projects >100 kW need six months of on-site wind data

Hydro projects need water resource documentation, ability to meet LIHI
certification standards
Commercial Programs – ARRA Funded
State Energy Program:

Eligible technologies:

PV - $3.0 million

Fuel cells - $8.0 million

Solar thermal - $1.8 million

Geothermal (ground source heat pumps) - $2.3
million

Applications accepted on a rolling basis

Noncompetitive – first come, first served

Open to all Connecticut establishments

Must adhere to DBA, NHPA, NEPA, “Buy
American”

Projects must be completed by April 30, 2012
State Energy Program – Continued
Solar Photovoltaic (PV) Incentive:
Launched in October 2010
 Rules similar to old OSDG program


Incentive structure:
<100 kW PTC
Maximum Incentive
For-Profit Owners*
($/WattPTC)
$3.00/Watt
Not-for-Profit Owners
($/WattPTC)
$4.50/Watt
>100 kW but<200 kW
$2.00/Watt
$4.00/Watt
>200 kW PTC
$0.00/Watt
$0.00/Watt
Incentive Blocks
Evaluation timeframe
20 years
*Includes PPAs with not-for-profit entities

Actual Incentive:
Depends on project economics
 Incentive cap = $1 million/project
 Adjusted for shading, tilt, azimuth, inverter efficiency
 Grants paid 50% at delivery, 40% at commissioning, 10% after 6 months


Size limits: 50kW - 200 kW
State Energy Program – Continued
Fuel Cell Incentive:

Launched in December 2010
Rules similar to old OSDG program
 Incentive structure:







Depends on project economics
Incentive cap = $2.50 per Watt
Incentive limit = $4 million/project
Incentive available: $8 million
Grants paid 50% at delivery, 40% at commissioning,
10% after 6 months
Typically pays 30% - 40% of equipment cost

Size limit: must be < base load (300 kW min.)

Project must use 50% of “waste” heat or

Provide enhanced power quality or reliability to
critical electric load
State Energy Program – Continued
Solar Thermal Rebate Program:

Launched October, 2009

Incentive structure:






For-profit CI&I -- $450 per MMBtu of predicted
annual output
Not-for-profit -- $550 per MMBtu of predicted
annual output
Incentive available – $1.8M for C I & I projects ($1.2M left)
Typically covers 35 – 50% of cost for standard flat plate or evacuated tube systems
Incentive limits – $300,000 or 75% of cost
Grant paid in full at project completion

Size based on DHW, process water needs

Space heating systems don’t qualify
104
State Energy Program – Continued
Geothermal Heat Pump Rebate Program:

Launched December, 2009

Size based on HVAC needs

Incentive Structure:


CI&I for-profit -- $1,050 per ton

CI&I not-for-profit -- $1,750 per ton

Covers about 20 – 30% of cost

Incentive available – $2.25M ($0.75 M left)

Incentive limits – 100 tons (150 tons for schools)
Only closed-loop systems eligible
105
Federal Incentives
For Energy Efficiency:
 Energy-Efficient
 Residential
Commercial Buildings Tax Deduction
Energy Efficiency Tax Credit
For Renewable Energy Generation:
 Business
Energy Investment Tax Credit or Grant (30%)
 30%
for solar, fuel cells and small wind
 10%
for geothermal, microturbines and CHP
 Renewable
Electricity Production Tax Credit (PTC)
 Residential
Renewable Energy Tax Credit (30%)
 MACRS
 USDA
+ Bonus Depreciation (2008-2012)
- Rural Energy for America Program (REAP) Grants
(25%) and Loans (<50%)
Where Do I Start?
Best source for information about all renewable energy
and energy efficiency incentives:
http://www.dsireusa.org/
Program Contacts
Dave Ljungquist: 860-257-2352
Rick Ross: 860-257-2887 (fuel cells)
Christin Cifaldi: 860-257-2891 (solar photovoltaic)
Bill Colonis: 860-257-2888 (solar thermal, geothermal)
Connecticut Clean Energy Fund
200 Corporate Place, 3rd Floor
Rocky Hill, CT 06067
http://www.ctcleanenergy.com
Visit us online at
ctcleanenergy.com
The Future of Energy:
Building a Smart System
Mr. Roddy Diotalevi
Senior Director, UI
What is the Smart Grid?
EPRI’s definition to NIST:
 The term ‘Smart Grid’ refers to a modernization of the
electricity delivery system so it monitors, protects, and
automatically optimizes the operation of its interconnected
elements – from the central and distributed generator through
the high voltage network and distribution system, to
industrial users and building automation systems, to energy
storage installations and to end-use consumers and their
thermostats, electric vehicles, appliances, and other
household devices.
UI’s Smart System
Modernization of UI’s Electric System
Monitors

SCADA
Optimizes the Operation
 Voltage Control
 Automatic switching & restoration
Distribution System
 Outage Detection
 Advanced Meter Infrastructure
 Meter Data Management
 Smart Meter Deployment
End-Use Customers



Home Area Networks
Electric Vehicles
Distributed Resources
Source: U.S. Department of Energy
Smart System Value
Centered around the Customer
 Increase system reliability
 Improve operational efficiency
 Improve asset utilization
 Integration of Distributed Resources and energy storage
 Educate customers on energy consumption to help them better
manage their usage
113
Network Meter Deployment
SMART Meters
 Deployment of 80,000 meters began 2010 - 45,000 installed to
date
 Two way communications to customer premise
 Remote Meter Controls
 Ability to leverage technical capabilities of AMI
– System related
• Voltage control and outage detection
– Customer related
• ZigBee enabled Home Area Network (HAN)
114
Home Area Network (HAN)
 Provides near real-time information for the
customer to better manage their energy use
 Creates opportunities for customers to save
energy.
– Dynamic Pricing
– Residential Demand Response
– Integration of distributed resources
 Enables next generation energy efficiency
applications
– Electric Vehicles and Smart Appliances
UI’s HAN Pilot
Objective – Evaluate HAN system solutions including devices, software, and
implementation process in order to determine costs, benefits, and potential
program offerings to the customer


Initial pilot to include approximately 925 households
HAN devices - Tendril & Energy Hub
– In-home display, programmable t-stats, controllable plugs, EVSEs

Research study with UC Davis
– Assess customer engagement & savings

Explore potential programs during pilot
– Demand Response
– Dynamic Pricing
– Integration of Behavioral component

Assess applicability to other customer segments
– Business customers are often more sensitive to price
– Open to innovative product and service offerings that boost profitability.
HAN Challenges
 Customer engagement and education
 Benefit / Cost of investment
 Rapid evolution of technology
 National standards for data privacy,
cybersecurity and interoperability
 Bandwidth availability of AMI
 Hype vs. reality around smart grid programs
Electric Vehicles
UI’s EV Goals
EVs are coming to CT
 Goal of 25,000 electric cars statewide by 2020
 Electric Vehicle Infrastructure Council
– Strategize on preparing CT for rapid & seamless integration of EVs into
the market
– (http://www.ct.gov/ecd/lib/ecd/ev_final_recommendation_9.1.10.pdf)
 Key Recommendations
– Gain early access to EVs
– Enact Legislation to incent EV adoption
– Support build-out of EV charging infrastructure
– Develop policies for rates, pricing, and charging options
– Collaborate to develop regional corridor for public charging
Preparing for EV Arrival
UI’s EV Pilot
UI Activities
 Provide leadership and educate customers on EV technology
 Stay engaged with stakeholders
– EVIC, REVI, EDTA, EPRI, EEI, etc.
 Build-out of EV charging infrastructure
– EVSE pilot for 10 - 12 charging stations underway
 Explore residential charging options – First Volt has arrived
– 95% of EV charging will occur at home
 Assess impact to distribution system
– Impacts are most severe on transformers and low voltage wires
 Assess future opportunities, such as “Smart Charging” and
“Vehicle-2-Grid”
Questions
Thank you!
Please complete the survey
Have a great day and drive safely