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.