Landmark energy legislation produces efficiency program

(March 28, 2008) Last year, Connecticut’s General Assembly overwhelmingly approved significant energy legislation. Today, the legislation is closer to providing tangible results.

A key piece of the legislation is now being implemented through a program at the state Department of Public Utility and Control (DPUC). The new Electric Efficiency Partners program is designed to address a leading variable of energy costs – our increasing peak demand.

Connecticut can’t control the cost of oil or gas, but we can control demand. Specifically, consumers have the ability to control peak demand – that is, when the most energy is used. Traditionally, the hot, humid days of summer are our highest peak days. Experts maintain that peak demand accounts for 20% of Connecticut’s annual electricity costs.

The Electric Efficiency Partners program will use various technologies to reduce our peak demand. The DPUC is charged with approving technologies and program applicants seeking to reduce their peak demand.

The program will be receive up to $60 million in annual funding via ratepayer benefit charges on electric bills. The Electric Efficiency Partners will benefit directly, but every Connecticut consumer will benefit indirectly.

Program participants’ electric bills will decrease with their efficient use and lower demand. Every consumer will benefit because Connecticut’s overall peak demand will be reduced — and that will reduce the most expensive electricity for everyone. What’s more, the Electric Efficiency Partners program is required by law to have at least a 2-to-1 payback for ratepayer investments.

The Electric Efficiency Partners program is good policy that will help reduce high electricity costs in Connecticut.

To learn more about the program, or to become involved, please contact CBIA’s Kevin Hennessy at 860-244-1979 or kevin.hennessy@cbia.com.