Energy efficiency program approved
(June 17, 2008) A major component of landmark energy legislation approved by lawmakers last year has received final approval by regulators at the Department of Public Utility and Control. The Electric Efficiency Partners (EEP) program is designed to address a key variable of costs that consumers can address —our insatiable demand for energy.
Connecticut consumers can't control the cost of oil or gas. They can, however, control their energy use — specifically, energy used during times of peak demand, such as during summer days. Experts say peak demand annually accounts for as much as 20% of electricity costs in the state.
Two EEP technologies have been approved to reduce peak demand:
• Gas chillers —natural gas-driven devices that provide cooling for area air conditioning applications for commercial and industrial processes. Gas chillers have an incentive of $300 per ton of cooling capacity.
• Ice-based thermal storage devices — cooling systems that use an ice storage thermal unit to make ice during off-peak hours, and then use the ice during on-peak hours to reduce electric demand. These storage units have an incentive of $950 per ton of cooling capacity for direct expansion systems greater than five tons and less than or equal to 10 tons.
EEP will be funded up to $60 million annually via ratepayer benefit charges on electric bills. The DPUC will also develop a low-interest loan program to finance the customer's share of the capital cost of the technologies.
And for the first time, an energy program has statutorily mandated benefits — it must yield at least a 2 to 1 payback for ratepayer investments.
For more information about the program, or to become involved, contact CBIA's Kevin Hennessy at 860-244-1979 or Kevin.Hennessy@cbia.com.
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