September 16, 2002
Ms. Susan M. Hudson, Clerk
Vermont Public Service Board
112 State Street
Montpelier, Vermont 05620
Re:
Response to Board’s Memorandum of August 1, 2002 in re: Report of Department of Public Service to
the Board on Vermont’s Energy Efficiency Utility
Dear Ms. Hudson:
Burlington Electric Department (“BED”) is pleased to file this proposal in response to the Public Service
Board’s (“Board” or “PSB”) Memorandum dated August 1, 2002 regarding its decisions on the Report of the
Department of Public Service (“DPS”) to the Board on Vermont’s Energy Efficiency Utility (“EVT”).
This filing contains BED’s cost breakdown for each Core market service and initiative for 2003-2005, as well as
proposed energy savings and estimated costs/MWh for each program as they are currently envisioned. These
numbers are based on preliminary program designs and may need to be revised as a result of further PSB\EVT
contract negotiations.
BED is also aware that additional performance indicators beyond cost/MWh are currently under negotiation
with EVT. BED is prepared to present a version of additional performance indicators in collaboration with the
DPS and the Contract Administrator, however, given some of the changes to programs currently under
discussion, we think it might be most efficient if we could await the results of that portion of the negotiation
before designing the specific format of a BED version.
Regarding implementation plans, BED and EVT have discussed in detail EVT’s proposed program refinements
starting in 2003. BED is in strong support of EVT’s proposal. BED understands that EVT will submit an
Annual Plan for 2003 to the Board no later than November 20, 2002. This Annual Plan will contain proposals
regarding market strategies, service enhancements and new initiatives for 2003. Until the 2003 Annual Plan is
approved by the Board, EVT and BED will continue to provide services per the Annual Plan for 2002.
For 2003-2005, BED and EVT plan to build upon the success of the coordination agreement that the two
organizations developed for 2000-2002. BED and EVT will work to develop a revised coordination agreement
for 2003-2005, to be submitted to the Contract Administrator no later than December 31, 2002. Both
organizations envision that the agreement will be similar to the 2000-2002 version that was based on a costsharing agreement that recognizes that parallel or overlapping efforts may be more efficiently and economically
performed by either BED or EVT on behalf of both entities.
Ms. Susan M. Hudson, Clerk
September 16, 2002
Page 2
The attached estimated budget and savings documents recognize the ongoing discussions regarding proposed
Core program refinements, including the role of retrofit measures, for 2003-2005. BED and EVT agreed that it
would be helpful to all parties to use the same nomenclature in 2003-2005 budgets and savings documents.
The attached version of “BED’s Estimated Core Market Services and Initiatives Delivery Budget” has changed
slightly from the original version submitted to the PSB in August. The changes in the budget are primarily due
to additional information we've gathered in discussing the emerging markets activity plan with EVT.
Please let us know if you have any questions about this filing or if we can provide any additional information to
the Board.
Sincerely,
BURLINGTON ELECTRIC DEPARTMENT
Thomas A. Buckley
Manager of Customer and Energy Services
Enc.: Estimated Core Services Delivery Budgets, Estimated MWh savings and costs
c:
Ann Bishop, Hearing Officer in Docket No. 6741
William F. Ellis, Esq.