National Grid has submitted a proposal to the Massachusetts Department of Public Utilities (DPU) to expand and enhance its energy efficiency programmes three-fold between 2010 and 2012.
The Energy Efficiency Advisory Council – created under the state’s Green Communities Act – has endorsed the statewide energy efficiency plan and found it consistent with the Act’s goals and requirements.
Tim Stout, vice president of energy efficiency at National Grid, said: “This unparalleled, aggressive proposal far exceeds what other electricity and natural gas utilities have in place across the county. Energy efficiency is vitally important; it is one of the best ways to save energy, money, and reduce green house gas emissions.
“Through this programme expansion – a milestone for the state – we look forward to serving more customers as we help them achieve deeper energy savings and environmental benefits. We are pleased to be part of the state’s vision for a ‘greener’ future.”
Under the proposal, the company expects to see about a 2% reduction in overall energy savings for gas and electric customers by 2012 and hopes to help customers save more than $2 billion over the life of implemented energy efficiency measures.
For electricity customers, that translates into total electricity savings of 1.2 million megawatt-hours. For natural gas customers, the company projects savings of 33 million therms.
Additionally, as a result of such energy savings, the company expects a reduction in greenhouse gas emissions, helping to mitigate the effects of climate change. National Grid anticipates its customers can reduce more than seven million tons of greenhouse gas emissions under the expanded programmes.
National Grid’s proposal includes integration and alignment of electric and gas programmes to facilitate customer access to the programmes; establishing a new combined heat and power (CHP) programme; addressing energy-efficiency measures for the multi-family housing market; special incentives to help customers implement efficiency measures; exploring new technologies and approaches to cover new and enhanced on-bill and internet-based communications about energy use; and community involvement in energy-efficiency measures and programmes.
As part of the filing submitted to the DPU, National Grid has proposed expanding funding for its electricity energy efficiency programmes from $85m in 2009 to approximately $570m between 2010 and 2012. It has proposed increasing funding of its natural gas efficiency programmes from $20m in 2009 to nearly $200m over the three year period. Total, collective proposed funding for all utilities in Massachusetts for the same timeframe is approximately $3 billion.
It is expected that these costs would be covered by energy efficiency charges on customers’ bills, revenue from regional greenhouse gas emissions and capacity markets, and special private financing programmes.
If approved, a typical National Grid electricity customer using 500kwh per month could see about a $1.15 increase in the monthly bill in 2010. A typical natural gas heating customer using 82 therms per month would see an increase of $3.25 in the monthly bill. However, customers who participate in the newly expanded energy efficiency programmes will see cost savings as a direct result of the energy savings they achieve.