Residential Energy Efficiency News
Spring 2003

NY, OR Programs Work To Reduce Demand For Electricity

Two state energy efficiency programs, one on the East Coast and one on the West, are specifically designed to reduce statewide electric demand and to include the working poor in energy efficiency programs.

In New York, the state Public Service Commission created a multi-utility system benefits charge (SBC) for energy efficiency in 1998. The SBC was designed to continue funding energy efficiency and renewable energy programs that "might not immediately develop in the competitive market place." Yearly funding averages $150 million. These programs are available to customers of Central Hudson, Con Edison, NYSEG, Niagara Mohawk, Orange and Rockland, and Rochester Gas and Electric. (Outside the SBC, the Long Island Power Authority and the New York Power Authority administer their own energy efficiency programs.)

The PSC named the New York Energy Research and Development Authority (NYSERDA) as administrator of the fund under the New York Energy $mart program. The program has one of the most ambitious energy-use reduction goals in the nation -- to reduce peak electric demand by 700 to 800 MW in 2003 and to continue lessening demand until it has been reduced 1,200 to 1,300 MW by 2006.

Residential measures include in-home audits through contractors, who waive a $100 fee if homeowners agree to make the recommended energy-efficiency improvements. Other services include rebates for energy efficient room air conditioners, a home improvement loan program, and incentives to build energy-efficient homes.

One of the Energy $mart residential measures – Keep Cool -- recently received recognition as an exemplary energy efficiency program by the American Council for an Energy Efficient Economy. The Keep Cool program encourages people to replace old, inefficient room air conditioners with a new Energy Star model by offering a $75 rebate. In 2002, more than 160,000 air conditioners were replaced under the program.

Because of a recent change in the federal Weatherization Assistance Program that allows it, for the first time, to fund electric efficiency improvements for low-income households (defined as having incomes 60 percent of less of the state median income), NYSERDA decided to concentrate its efforts on serving households with incomes between 60 and 80 percent of the state median income. The organization considers this population to be underserved by other public and private energy efficiency programs.

Low-income residents receive many of Energy $mart’s services without charge. In addition, the program’s Assisted Multi-family Building Program provides a range of incentives to publicly assisted, multi-family buildings in New York for rehabilitation and construction of measures to improve energy-efficiency. The program’s goal is to improve energy efficiency and energy management, reducing the energy burden for low-income consumers.

In Oregon, a 1999 restructuring law requires the state’s two major investor-owned electric utilities – Portland General Electric and Pacific Power -- to collect a three percent public purpose charge (PPC) from their customers to fund energy efficiency, renewable energy and low-income weatherization programs. The state began collecting the public purpose charge in March 2002; annual funding is expected to be about $60 million.

About 75 percent of the PPC is being spent on conservation and renewable energy programs administered by the Oregon Energy Trust. The remainder will be used for low-income weatherization (12 percent), and for energy efficiency for schools (10 percent) and low-income housing (4.5 percent). For more information on Oregon’s low-income energy assistance and weatherization programs, visit the LIHEAP Clearinghouse.

The Energy Trust also has an ambitious energy-use reduction goal. The group is designing its programs to save 300 megawatts (MW) – enough to power a small city – through a combination of programs to promote commercial and residential energy efficiency and use of renewable power by 2012.

When it began operations in March 2002, the Energy Trust worked with the two utilities to continue existing residential energy efficiency programs – basically home audits and rebates for insulation and energy-efficient appliances. In March 2003, the organization was scheduled to unveil a new residential program, one that combines traditional energy efficiency measures with new services designed to reach households that have been underserved by energy programs in the past.

The Energy Trust will offer energy efficiency services – including weatherization measures, duct sealing, lighting, heating/cooling systems repair and upgrades, and financing – to all eligible residential customers. The new program may also offer additional services and/or incentives to certain target markets, including "near low-income" households, multi-family housing and manufactured homes.

Currently, to receive energy assistance and many of the free weatherization services in Oregon, households can have incomes of no more than 60 percent of the state median. The Energy Trust will attempt to reach households with incomes between 60 and 80 percent of the state median.

In addition, the Energy Trust will work with Oregon landlords to provide weatherization and other energy efficiency measures in multi-family housing. It will also initiate a program to help owners of manufactured homes weatherize their dwellings.

Soon after the Energy Trust opened its doors, Oregon’s major natural gas utility – Northwest Natural Gas – decided to participate in the Energy Trust’s energy efficiency programs. In September 2002, the company announced that it would follow the model of the electric utilities and institute a small charge to residential and commercial customers to fund a public purposes program for low-income bill payment assistance, low-income weatherization assistance and enhanced energy efficiency programs. Final details of Northwest Natural Gas’ participation in the Trust are being negotiated, and program services are being planned for the summer of 2003.

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