Features
Connecticut
Program
Electric
The two investor-owned electric utilities in Connecticut are Connecticut Light
and Power (CL&P) and United Illuminating Co. (UI). Both fund their activities with
a rate based System Benefit Charge (SBC) and coordinate with gas utility
programs.
Connecticut Light & Power’s “WRAP” and United Illuminating Co.’s “UI Helps”
differ in terms of investment and impact.
Connecticut Light and Power’s WRAP program is divided into four sub-programs
and is fuel blind. The four sub-programs are
(1) Energy Assistance: linked to DOE program. Collaboration between
DOE, gas utilities, and electric utilities.
(2) WRAP weatherization: CL&P serves customers who have already
received DOE assistance. They provide services complementary to
those already received from DOE including lighting or other measures.
If physical measures are not needed, the CL&P program provides
energy education.
(3) Lighting projects – multi-unit buildings
(4) Neighborhood canvassing – identifies low-income neighborhoods
United Illuminating Co. has two main program components which are similar to
WRAP sub-programs (1) and (4).
Fuel Blind?
Yes and No
In 2004, United Illuminating Co. invested $0.8 million in treating 4,722 households.
UI Helps offers compact fluorescent light bulbs, the rare refrigerator
replacement, and energy education to all customers. Water heating customers
receive measures like showerheads and aerators in addition to base load
treatment. UI only provides full weatherization (building shell measures) to
electric heat customers and does not usually perform a formal energy audit [1].
By comparison, Connecticut Light and Power operates a fuel blind program. In
2004, it invested $4.2 million in energy audits, weatherization, and lighting
measures to 8,767 households.
Funding
Annual
In 1998, Connecticut’s restructuring legislation created two charges for
customers of Connecticut Light & Power and United Illuminating. The Systems
Benefits Charge (SBC) was intended to support consumer protection and lowincome assistance programs. The Conservation and Load Management
Charge (C&LM) created an energy conservation fund for energy efficiency
programs. In 2004, the SBC yielded $45 million while the C&LM yielded around
$35 million. In recent years the C&LM fund has become known as the
Connecticut Energy Efficiency Fund.
C&LM funds have been utilized for R&D of efficiency technologies, load
management, economic development, market transformation efforts and
efficiency programs including low-income weatherization. In February 2003,
through House Bill No. 6495 Public Act No. 03-2, “An Act Concerning
Modifications to Current and Future State Expenditures and Revenues,” Sections
20 and 21, the Connecticut General Assembly established that one million
dollars a month total from Feb 2003-July 2005 would be disbursed by the
Department of Public Utility Control from the Energy Conservation and Load
Management Funds. The money would be deposited in a nonlapsing account
within the State General Fund for use by state agencies to meet electrical utility
costs including conservation. The legislation also authorized the Comptroller to
record the disbursements as revenue. [2]
House Bill No. 6806, approved August 20, 2003, “An Act Concerning General
Budget and Revenue Implementation Provisions,” Sections 44 to 49, describes a
debt management tool of the state called “Rate Reduction Bonds.” For FY2004,
$205.3 million in Rate Reduction Bonds were budgeted to the General Fund. The
bonds were financed by a charge to electric utility customers that would be
balanced by a cutback in customer charges for the CL&M Fund and the Clean
Energy Fund. [3,4]
Essentially, during the state budget crises, Connecticut used the money in the
CL&M Fund but borrowed against it to keep conservation programs going while
reducing the amount of money available. When the Bonds were issued in June
2004, C&LM program funding was reduced by one third overall for next seven
years. In 2004, about $1.8 million was invested in the state’s low-income
weatherization network. [5] Once the bonding mechanism was in place, there
was additional available funding in 2005, providing some relief.
Connecticut recently paid off the debt and is expected to restore funding within
either this or the next fiscal year. However, the 2006 budget, as well as annual
budgets through 2011, remains affected by the legislation. 2006 is the first year to
be completely based on the reduced funding caused by the bonds, making it
70% of the 2005 C&LM budget. This reduction has appreciably reduced the
levels of programs and services available for 2006. The statute diverting $1
million a month until July 2005 has been updated to require once again that $1
million a month be sent to the state’s General Fund beginning July 2006. [6]
Delivery Agency
Gas utility sponsored Weatherization Residential Assistance Partnership
(“WRAP”), works in union with the electric efficiency WRAP. The walk-through
and energy audit of a home will determine energy efficiency measures for both
electric and gas applications. Weatherization is administered by the
Community Action Agencies.
Mechanism
With Connecticut Light and Power (CL&P) electricity households, the CAAs
invoice CL&P. CL&P then invoices its partner gas companies: Connecticut
Natural Gas and Yankee Gas Services Company. CAAs invoice United
Illuminating Co. and its partner gas company separately.
Goals/Metrics for Leveraged Funds [7]
Natural gas programs do not include the investments and benefits of the
electric measures in their cost-benefit analysis. Those considerations are passed
along to the Connecticut Energy Efficiency Fund (“CEEF”), which houses the
electric conservation programs. [5]
In performing their energy audit and determining what measures to pursue, the
gas utility programs use a “Total Resource Benefit/Cost Test.”

Net present value of water and gas saved as valued on a 2005 regional avoided
cost study conducted by ICF Consulting.

Value of water savings is approximately 1/2 cent per gallons and was estimated
using Tighe and Bond water and sewer data and average Hartford price values
of water.
From “Connecticut’s Joint 2006 Natural Gas Conservation Program Plan”
Table 3 - Savings and Benefits, WRAPHS*
WHS
Total Program Cost
Annual gas savings (ccf)
Lifetime gas savings(ccf)
Cost rate ($ per ccf)
Total Resource Benefit
Benefit-Cost (B/C) Ratio
Number of Homes Served
Life Savings per home (ccf)
Program Cost per home
Benefit per Home
a
b
c
d=a/
c
e
f=e/a
g
h=c/
g
io=a / g
j=e/g
Yankee
Gas
CNG
SCG
$243,933
35,150
572,388
$265,933
38,869
632,949
$251,933
36,503
594,411
$0.43
$493,497
2.02
301
$0.42
$545,712
2.05
333
$0.42
$512,485
2.03
313
1,899
$809
$1,637
1,899
$798
$1,637
1,899
$805
$1,637
Links
CT Electric Conservation Programs Docket
Documents (to be linked to site)





Connecticut’s Joint 2006 Natural Gas Conservation Program Plan
UI and CL&P Program Savings Documentation for 2006 Program Year
Report of the Energy Conservation Management Board Year 2005
Programs and Operations
Independent Audit of Administrative Operational Effectiveness of the
Conservation and Load Management (C&LM) Funds Administered by
Connecticut Light and Power Company (CL&P) and United Illuminating
Company (UI)
Submitted Jointly by the Connecticut Light & Power Company and The
United Illuminating Company. “Conservation and Load Management
Plan 2006.” Docket 05-10-02. October 17, 2005.
Works Cited
[1] blueCONSULTING, INC. for Connecticut Department of Public Utility
Control. “Independent Audit of Administrative Operational Effectiveness
of the Conservation and Load Management (C&LM) Funds Administered
by Connecticut Light and Power Company (CL&P) and United Illuminating
Company (UI).” May 27, 2005. p40-41.
[2] Connecticut General Assembly. House Bill No. 6495 Public Act No. 03-2: “An
Act Concerning Modifications to Current and Future State Expenditures
and Revenues.” Approved February 28, 2003.
http://www.cga.ct.gov/2003/act/Pa/2003PA-00002-R00HB-06495-PA.htm
[3] Connecticut General Assembly House Bill No. 6806 June 30 Special Session,
Public Act No. 03-6: “AN ACT CONCERNING GENERAL BUDGET AND
REVENUE IMPLEMENTATION PROVISIONS.” Approved August 20, 2003
http://www.cga.ct.gov/2003/act/Pa/2003PA-00006-R00HB-06806SS2 PA.htm
[4] State of Connecticut Department of Administrative Services. “2003-2004
Digest of Administrative Reports to the Governor: Office of the State
Treasurer - Improvements/Achievements 2003-04.” December 1, 2004.
http://www.das.state.ct.us/Digest/Digest_2004/Treasurer,%20Office%20of%
20the%20State.htm
[5] U.S. Department of Health and Human Services (HHS). Low-Income Home
Energy Assistance Program (LIHEAP) Clearinghouse “Overview of LowIncome Restructuring Legislation and Implementation – Connecticut,”
August 2005.
[6] Submitted Jointly by the Connecticut Light & Power Company and The
United Illuminating Company. “Conservation and Load Management
Plan 2006.” Docket 05-10-02. October 17, 2005.
[7] “Connecticut’s Joint 2006 Natural Gas Conservation Program Plan.” January
31, 2006.