Effectiveness of 2007 Summer Savers program uncertain

(April 18, 2008) Lawmakers created the 2007 Summer Savers program as a way to reward electricity customers with rebates if their electric use was lower during the 2007 summer months than it was in the 2006 summer months.

Recently, the Department of Public Utility Control (DPUC) issued a draft report to the General Assembly evaluating the effectiveness of the 2007 Summer Savers program.
Among the positive findings in the draft report was that the 2007 Summer Savers program had raised awareness about energy efficiency. However, other findings seemed to outweigh the benefit of energy efficiency awareness.

Information lacking
For example, the report stated that adequate information is not available to determine the actual cost effectiveness of the program.

The report also found that it’s difficult to find out a participant’s actions and motivation for saving and that many participants may have received a rebate without demonstrating a real effort to save.

Finally, the report indicated that the impact, if any, on reduced demand cannot be measured because the program was designed to reduce consumption, not peak demand.

Ultimately, the report indicated that the $24.1 million, ratepayer-funded program price tag might not be the most cost-effective energy efficiency program.

Delay another round
As a result, the draft report recommended that the legislature delay enacting the program again until the electric distribution companies can adequately evaluate the 2007 Program.

Because ratepayers fund the program, this seems reasonable. Rather than simply enacting multiple programs, Connecticut should focus on the programs that are the most cost effective and have the best results.

Energy efficiency is a great way for Connecticut ratepayers to reduce electricity demand and cost. However, to get the maximum benefit for ratepayers, Connecticut needs to focus on the most cost-effective programs. Given the report’s findings, CBIA agrees with its recommendations to postpone enacting the program for a second year.

For more information on this or other energy issues, please contact Kevin Hennessy at 860-244-1979 or Kevin.Hennessy@cbia.com.