Electric Efficiency Partners program offers incentives, low-interest loans

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Connecticut businesses can now receive incentives and low-interest loans for certain kinds of energy efficiency projects through the state’s new Electric Efficiency Partners (EEP) program.

The program will encourage the use of approved technologies to reduce peak electricity demand, which in Connecticut typically occurs during the summer and accounts for an estimated 20% of electricity costs.

The state Department of Public Utility Control (DPUC) so far has approved two technologies for the EEP program:

Gas-driven chillers (to replace electric chillers) — natural-gas-driven devices used to cool an area or to provide cooling for commercial and industrial processes. For gas chiller installations, the EEP will provide an incentive of $300 per ton of cooling capacity.

Ice-based thermal storage devices — cooling systems that make ice during off-peak hours and use the ice as a cooling source during peak hours to reduce electricity demand. Ice-based thermal storage devices with a capacity that meets DPUC’s criteria will qualify for an incentive of $950 per ton of cooling capacity.

The DPUC will also develop a low-interest loan program to finance the customer’s share of the capital cost of the technologies.

The program will be funded up to $60 million annually via a charge on ratepayers’ electric bills. Companies that participate in the EEP will see lower electric bills as a result of their lower demand. By lowering the overall peak demand in the state, the program should also ultimately reduce costs for all electricity customers.

By law, any incentives the DPUC approves for the EEP must result in a 2-to-1 payback for ratepayer investments. This is the first Connecticut energy program with statutorily mandated benefits for ratepayers.