CVPS/Manchester Draft Program Concept
Residential Direct Install Program
January 9, 2006
Quick Description of Opportunity
A significant portion of residential customers meet what is considered to be a “high”
electrical energy use criterion in and around Manchester. From data provided by CVPS,
almost half of the residential accounts have annual energy consumption of 6,000 kWh or
greater in the “West” region (which includes Manchester). This is the target audience for
this program concept.
Both CVPS and VEIC have experience with “Direct-Install” programs. CVPS
implemented them over a several year period in the 1990s, and VEIC ran the DI
programs for Washington Electric Cooperative for a number of years. Based upon those
experiences, outreach would be conducted by a call center that would determine customer
interest and, where possible, schedule an appointment for a site visit by an energy
specialist. During those visits, the specialists would install low-cost measures such as
CFLs, high-efficiency showerheads and aerators, hot water tank wraps, and hot water
pipe insulation, and would do a quick screening for the cost-effectivenes of replacing
older refrigerators and freezers, second refrigerators and freezers, electric hot water tanks,
electric space heat, and other custom measures. These measures would be pursued
following the cost-effectiveness screening and a determination of eligible incentives and
customer interest.
When possible, staff will initiate discussions regarding behavioral changes and associated
impacts.
February would be used for planning, stocking inventory, and initial outreach, and
implementation could conceivably proceed in March.
Marketing
Outreach for this initiative would be through telemarketing, attempting to leverage
current local awareness of the Manchester Challenge lighting campaign. Customers
would be advised of the added savings potential and incentive/technical assistance
benefits from having an energy specialist visit their home.
Technical Assistance/Management Assistance
Call center staff and energy specialists would have to be trained in protocols for this
initiative. They in turn would provide technical assistance to customers. Scheduling for
site visits, managing field staff, stocking and managing inventory would be required.
Incentives
Low-cost measures would be installed at no charge (paid by CVPS). Additional
incentives could be provided for early retirement of refrigerators and freezers ($400 per
refrigerator and freezer to match the proposed refrigerator trade-in program concept) and
for electric DHW fuel switching ($500 per DHW tank).
Budget Estimate
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Number of installs: If implementation begins in March and continues through
September (for example), then two energy specialists could potentially reach a
total of approximately 1,200 homes.
Labor: Two energy specialists at $75/hr (full costs) would cost $33,600. The
equivalent of a full FTE telemarketer (used as a proxy for all marketing) at $35/hr
for seven months would cost $40,000. Management oversight 10 hrs/wk at
$100/hr for at least 6 weeks would cost $6000, and a partial FTE for data entry &
reporting 10 hours/week at $35/hr 5 weeks = $1,750. The development of the
direct mail piece would cost $3000. The total labor budget, including unintended
labor costs, would be about $60,000.
Incentives per Install: The average measure cost for DI could be roughly $35 per
household, with perhaps an additional 10 percent (120) would receive $500
toward a DHW fuel switch, and another 10 percent (120) would receive $500 for
early retirement of a refrigerator or freezer ($400 for an incentive toward a new
refrigerator and $100 for pickup/disposal).
The total budget is then about $250,000.
Savings Estimate
 Summer 126kW, winter 204 kW
 ~900 MWh annual savings
Advantages/Disadvantages
Advantages:
 Good timing to leverage excitement already present in Manchester, and to reinvigorate the Manchester Challenge.
 Could provide useful information on the potential value of similar future
initiatives for the Southern Loop.
 Potential for identifying and leveraging additional opportunities once an energy
specialist is in the home (CAC savings, efficient furnace fan motors, hot tubs,
pool pump timers, electric heat conversions, room a/c, clothes washers, etc)
Disadvantages:
 If high numbers of Manchester residents participate in the Manchester Challenge
and purchase and install 6-12 CFLs, then opportunities for good lighting savings
through a DI initiative may be limited, which could erode the greatest potential
benefit.
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Penetration rates for earlier CVPS initiatives for the Manchester area are not
known to VEIC, and could impact the potential for success with a new initiative.
Conflicts with a 10% reduction contest by putting customers who don’t receive DI
at a significant disadvantage in the contest.
Relatively high cost
Difficult to reach significant population in short time span. May only reach half of
projected targets.
IT Needs and Issues
 Need to identify targeted customers in CVPS customer database
 Call center outreach to gauge interest and schedule/track appointments
 Need to develop custom db to track data according to CVPS needs?
 Tracking of installation data and households requiring follow-up for additional
opportunities