STATE OF CONNECTICUT

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STATE OF CONNECTICUT


DEPARTMENT OF PUBLIC UTILITY CONTROL

TEN FRANKLIN SQUARE

NEW BRITAIN, CT 06051




DOCKET NO.
11
-
01
-
08

2011 ANNUAL REPORT T
O THE LEGISLATURE
-

ELECTRIC EFFICIENCY
PARTNER PROGRAM





February
9
, 2011


By the following Commissioners:



Kevin M. DelGobbo

Anna M. Ficeto

Anthony J. Palermino





DECISION



















Docket No.
11
-
01
-
08


Page
2




STATE OF CONNECTICUT

DEPARTMENT OF PUBLIC UTILITY CONTROL



REPORT TO

THE JOINT LEGISLATIVE COMMITTEE ON

ENERGY AND TECHNOLOGY







ELECTRIC EFFICIENCY PARTNER PROGRAM

Connecticut General Statutes Section §16
-
243v















Docket No.
11
-
01
-
08


Page
3





TABLE OF CONTENTS


A.

I
NTRODUCTION AND
H
ISTORY

................................
................................
..................

4

B.

P
ROGRAM
S
UMMARY

................................
................................
.............................

4

C.

A
PPLICATION
P
ROCESS

................................
................................
..........................

4

D.

D
ESCRIPTION OF
A
PPROVED
T
ECHNOLOGIES

................................
...........................

5

E.

R
ATEPAYER
C
OSTS AND
B
ENEFITS

................................
................................
.........

7

F.

L
IST OF
P
ROCESSED
A
PPLICATIONS

................................
................................
........

8

G.

E
LECTRIC
E
FFICIENCY
P
ARTNERS

................................
................................
...........

8

H.

G
RANT
R
EQUESTS

................................
................................
................................
.

9

I.

C
ONCLUS
ION AND
N
EXT
S
TEPS

................................
................................
................

9




































Docket No.
11
-
01
-
08


Page
4



A
.

I
NTRODUCTION AND
H
ISTORY



Effective July 1, 2007, the Legislature enacted Public Act 07
-
242,
An Act
Concerning Electricity and Energy Efficiency
. Section 94 of Pu
blic Act 07
-
242 was
subsequently codified as General Statutes of Connecticut § 16
-
243v. §16
-
243v directs
the Department to establish a program to allow any person to apply to the Department
of Public Utility Control (Department) for certification and fundi
ng as a
Connecticut
electric efficiency partner
.


Section
16
-
243v(i)

provides:


On or before February 15, 2009, and annually thereafter, the Department
shall report to the joint standing committee of the General Assembly having
cognizance of matters rela
ting to energy regarding the effectiveness of the
Connecticut electric efficiency partner program established pursuant to this
section. Said report shall include, but not be limited to, an accounting of all
benefits and costs to ratepayers, a description o
f the approved technologies, the
payback ratio of all investments, the number of programs deployed and a list of
proposed projects compared to approved projects and reasons for not being
approved.


This report is submitted pursuant to § 16
-
243v(i).


B.

P
ROGRAM
S
UMMARY



In accordance with § 16
-
243v, the Department initiated Docket No. 07
-
06
-
59,
DPUC Review of the Connecticut Electric Efficiency Partners Program
.


In the Decision
in that Docket, the Department established the Connecticut Electric Efficienc
y Partner
(EEP) Program to fulfill the directives of the Statute.

This exercise included the defining
of three distinct activity areas under the EEP program: the process for issuance of a
certificate of public convenience and necessity (CPCN) to recognize

eligibility as an
EEP partner; a process for recognition of eligible technologies; and a grant application
process.

The Decision drew distinctions between two types of EEP partners.

A
Vendor
Partner

is one who is involved in the sales and marketing of a

specific technology.

A
General Partner
is one who acts as a facilitator, without an affiliation with a specific
product or service. An EEP partner is granted a CPCN. Program development actions
included the creation of the application process.


Since it
s inception,
six
teen applications have been processed at the Department
under the program.


These applications have included
eight applications to become an
EEP Partner, three applications to recognize a new technology,
four

applications for
grant requests
, and one application filed for multiple purpose; EEP partnership, new
technology recognition, and grant request.


C.

A
PPLICATION
P
ROCESS



The Department initially established an application form allowing a program
applicant to apply for any, or all thr
ee, of the program components; EEP partnership,
Docket No.
11
-
01
-
08


Page
5


new technology recognition, and/or grant request.

The Department quickly discovered
this application design caused processing bottlenecks and was unwieldy and confusing
to applicants.

The Department thereaf
ter established three separate versions of the
application form; one for each program component.

The revised forms have mitigated
the issues initially encountered with the “all
-
in
-
one” form.


D.

D
ESCRIPTION OF
A
PPROVED
T
ECHNOLOGIES



To date, the Depart
ment has approved nine technologies as
eligible

for
incentives under the EEP program:


1.

Gas Chillers


Gas chillers are natural gas driven devices used to provide cooling for area air
conditioning applications or for industrial/commercial process applica
tions.


The
Department has approved an incentive level of $300 per ton (of cooling capacity),
capped at the additional cost of the gas
-
driven chiller above the cost of a standard
electric chiller.


The $300/ton level achieves the 2:1 benefit/cost ratio, in
cluding
maintenance costs.

Gas engine driven chillers cost approximately $700/ton; therefore,
the proposed incentive is about half the cost of the technology. A review of gas chiller
incentive programs in other states indicates $300/per ton is reasonable

and near the
midpoint of typical incentives offered, which range from $50 to $450 per ton, depending
on the characteristics of the chiller installation.


2.

Ice Based Thermal Storage


Ice based thermal storage devices are cooling systems utilizing an ice

storage
thermal unit to make ice during off
-
peak hours and subsequently use the ice as a
cooling source during on
-
peak hours to reduce on
-
peak electric demand. The
Department has approved an incentive level of $950 per ton of capacity. The $950/ton
level

was selected since it ensures at least a 2:1 ratepayer benefit/cost payback ratio.


This incentive is generally less than sixty percent (60%) of the incremental cost of an ice
based thermal storage system.


3.

Direct Digital Control System


Direct Digi
tal Control systems (a/k/a building automation control systems) are
used to control the operation of heating, ventilating and air conditioning (HVAC)
systems in commercial buildings, institutional facilities, and any building or structure that
contains HVA
C equipment. These systems are also used for energy management in
that they can be programmed to reduce energy use during non
-
occupied hours
including night
-
time and week end schedules. The Department approved an incentive
level of $165 per kilowatt (kW)

for Direct Digital Control systems. In its Decision dated
July 29, 2009 in Docket No. 08
-
11
-
08, the Department determined this incentive level
was less than fifty percent (50%) of the technology cost and comports with the 2:1
payback threshold.




Docket No.
11
-
01
-
08


Page
6



4.

So
lar Assisted Air Conditioning


During periods in which solar energy is available, the solar heating array provides
heat energy to an absorption chiller. Any heat energy required by the absorption chiller
that is unavailable from the solar heating array wi
ll be provided by the combined heat &
power unit (CHP). In the event the CHP is not able to provide sufficient heat energy
(such as during an outage of the CHP), an auxiliary boiler can be operated to provide
heat to the absorption chiller. Therefore, th
e resources are “dispatched” in order of
efficiency, from most to least efficient.


The Department has approved an incentive level
of $318 per ton for this technology and found this incentive level equates to less than
five percent (5%) of the installed co
st of a typical system and meets the 2:1 ratepayer
investment payback benchmark.


5.

HVACR Duty Cycle Optimization


The Heating, Ventilation, Air Conditioning and Refrigeration (HVACR) Duty Cycle
Optimization technology features controls to be utilized to

retrofit existing compressors
used in large residential and commercial heating, ventilating, air conditioning and
refrigeration systems to improve energy efficiency by reducing the compressor run time
to an optimum operating period. The controller causes

the compressor to operate more
efficiently by determining the optimum compression cycle for the HVAC refrigerant and
turning the compressor off for a longer time during the new cycle period. The reduced
cycle and shorter compressor run time reduces the r
efrigerant unit’s demand and
energy use while maintaining the original thermostatic set points.

The Department
approved an incentive level of $46 per ton, capped at $625 per unit, for this technology,
which assures the 2:1 payback threshold is supported.


6.

Real Time Energy Feedback



This technology provides the user with a real time display and programmatic
functionality to see their electric use, heat pump thermal demand, cold and hot water
use, and rates charged for each commodity. This information
enables the user to take
action to reduce their energy consumption.


7.

Energy Saving Algorithms



This technology provides an algorithmic functionality to a thermostat to allow the
user to set back the thermostats for pre
-
programmed hours per day. The

thermostats
can be programmed with energy saving algorithms specific to the climate and
occupancy schedules and a setback schedule established. The thermostats can be
connected to the internet to gather real
-
time local weather data to calculate the optim
um
setback and set forward temperature, fan cycling and humidity level to automatically
adhere to the setback schedule.


8.

Water Use Occupancy Sensed Thermostat Setback



This technology consists of an interconnection between a water use sensing
system

and the thermostats. The water use system monitors water consumption and
Docket No.
11
-
01
-
08


Page
7


automatically sets back the thermostat if no water consumption is reported in any 24
hour period.


9.

Real Time Water Use Feedback



This technology provides a real
-
time display of

water consumption.


E.

R
ATEPAYER
C
OSTS AND
B
ENEFITS



Section §16
-
243v directs the Department to recover the ratepayer
-
borne portion
of program costs via the systems benefits charge (SBC) collected from all ratepayers

within the project’s service territo
ry
. To date, the Department has processed five
applications under the EEP program which have included grant requests.


One
applicant was denied a grant (Docket No. 08
-
07
-
02), and four were awarded grants of;
$60,000 (Docket No. 09
-
02
-
16), $15,000 (Docket N
o. 09
-
04
-
24), $559,077 (Docket No.
09
-
09
-
11)

and $14,461.50 (Docket No. 10
-
03
-
05)
.

Therefore, direct program costs
totaling $648,538.50 have been incurred.



Table 1: Approved Technologies


Applicant Name
Technology
Grant
Unit
Rate
Grant
Unit
Factor
Min / Max
Grant
Min / Max
Capacity
Docket No.
DPUC Review of Connecticut
Electric Efficiency Partners
Program
Gas Chiller
$300
ton
N/A
07-06-59
DPUC Review of Connecticut
Electric Efficiency Partners
Program
Ice based thermal storage (direct
expansion)
$950
ton
N/A
5 to 10 tons
07-06-59
Mazur Mechanical
Solar assisted air conditioning
$318
ton
N/A
08-10-06
DBS Energy, Inc.
Direct digital control / Building
automation control system
$165
kW
N/A
08-11-08
New England Energy
Management
HVACR Duty Cycle Optimization
controller technology
$46
ton
$625 max
each unit
08-12-08
Becker Development
Associates / 360 State Street,
Inc.
Real Time Energy Feedback
n/a
n/a
N/A
09-09-11
Becker Development
Associates / 360 State Street,
Inc.
Energy Saving Algorithms
n/a
n/a
N/A
09-09-11
Becker Development
Associates / 360 State Street,
Inc.
Away Mode Setback
n/a
n/a
N/A
09-09-11
Becker Development
Associates / 360 State Street,
Inc.
Real Time Water Use Feedback
n/a
n/a
N/A

09-09-11




Docket No.
11
-
01
-
08


Page
8



F.

L
IST OF
P
ROCESSED
A
PPLICATION
S


Table 2: Processed Applications


Applicant Name
Docket #
Application Type
Status
decision date
1
New England Energy
Management
08-08-47
Partner, General
Granted
10/15/08
2
Becker Associates
08-07-02
Multiple: Partner,
Technology, Grant
Partner granted, new
tech & grant denied
12/17/08
3
Mazur Mechanical
08-07-03
Partner, General
Granted
01/15/09
4
Construction Development
Services, LLC
08-09-08
Partner, General
Granted
03/04/09
5
DBS
08-10-25
Partner, General
Granted
03/04/09
6
Direct Energy Services, LLC
08-07-06
Partner, General
Granted
06/17/09
7
Meriden Business Park, LLC
09-02-16
Grant
Granted
07/08/09
8
Mazur Mechanical
08-10-06
New Technology
Granted
07/29/09
9
DBS Energy, Inc.
08-11-08
New Technology
Granted
07/29/09
10
Oak Hill / Connecticut Institute
for the Blind
09-04-24
Grant
Granted
07/29/09
11
ICE Energy
09-04-05
Partner, General
Denied
07/29/09
12
New England Energy
Management
08-12-08
New Technology
Granted
08/12/09
13
O'Dea, Lynch Abbattista
Consulting Engineers
09-06-06
Partner, General
Granted
09/16/09
14
Viridian Energy &
Environmental, LLC
09-05-14
Partner, General
Granted
09/16/09
15
360 State Street, Inc.
09-09-11
Grant
Granted
04/28/10
16
Curtis Packaging Corp.
10-03-05
Grant
Granted
05/26/10


G.

E
LECTRIC
E
FFICIENCY
P
ARTNERS


As shown in Table 2, nine entities have applied for partner status in the EEP
program, to date.


Eight of these applications were approved and one was denied.


The
denied partner application did not furnish data to show the proposed firm possessed
adequate financial stability to qualify for the program.

F
ive

applications for recognition
of eligibility of a new technology have been processed to date, with
four

applications
approved and one denied.


The denied new technology application did not furnish data
to show the proposed technologies met the required two
-
to
-
one ratio threshold of
program cost / benefit.

Five

applications for grants have been processed.
Fo
ur

were
approved, and one was denied based on insufficient evidence of program eligibility.


Docket No.
11
-
01
-
08


Page
9



H.

G
RANT
R
EQUEST
S



Two customers’ applications for grants for eligible technologies were processed
in 20
1
0 and both were approved.

These two grants, respective
ly, were $559,077 and
$14,461.50.


The total of grants awarded in 2010 was therefore $573,538.50, which is
substantially greater than the grant totals in prior years.

Total programmatic grants prior
to 2010 were $75,000.


Table
3
: Approved
Grants


EEP Grant Recipient
Technology
Grant Amount
Docket
Meriden Business Park, LLC
Gas Chiller
$60,000.00
09-02-16
Oak Hill / CT Institute Blind
Gas Chiller
$15,000.00
09-04-24
Curtis Packaging Corp.
HVACR controller technology
$14,461.50
10-03-05
360 State Street, Inc.
Real Time Energy Feedback
$270,053.00
09-09-11
360 State Street, Inc.
Energy Saving Algorithms
$132,934.00
09-09-11
360 State Street, Inc.
Away Mode Setback
$26,421.00
09-09-11
360 State Street, Inc.
Real Time Water Use
Feedback
$129,669.00
09-09-11
TOTAL GRANTS
$648,538.50


I.

C
ONCLUSION

AND
N
EXT
S
TEPS



The EEP program
cost to ratepayers, which is recoverable through the systems
benefits charge,
was budgeted

under the enabling legislation

for

an annual not
-
to
-
exceed

amount of $60 million.


It has becom
e apparent that the program is
underaccessed by the private sector, based on the total programmatic outlay

of
$648,538.50.

The program is ongoing, and the Department
has

striv
ed

to promote its
benefits
through a variety of efforts, including a section of
the Department’s website
dedicated to informative programmatic content

and the development of financing
availability, in conjunction with the Connecticut Development Authority (CDA)
.


The
Department is continuing to promote the EEP program and will evaluat
e the
effectiveness of the program going forward.


Docket No.
11
-
01
-
08


Page
10



Pursuant to
§ 16
-
243v
(j), the Department has initiated a proceeding; Docket N
o.
11
-
01
-
14,
Electric Efficiency Partner Program


Effectiveness and Cost
-
Benefit Analysis
Review
.


In that proceeding, the Dep
artment will review and evaluate the overall
effectiveness of
,

and perform a ratepayer cost
-
benefit analysis

for,

the program.

That
proceeding will include written comments from program participants and feedback from
other interested parties.

Based upon
the D
epartment's findings in th
at

proceeding, the
D
epartment may modify
certain administrative components of the EEP program in order
to

increase program participation levels to assure that the use of
enhanced demand
-
side management technologies

and
the
de
ployment of energy efficient technologies
by
electric consumers to conserve electricity and reduce
electric
demand in Connecticut
,
envisioned by the enabling legislation,
is

fully realized
.



DOCKET NO.
11
-
01
-
08

2011 ANNUAL REPORT T
O THE LEGISLATURE
-

ELECTRIC EFFICIENCY
PARTNER PROGRAM


This Decision is adopted by the following Commissioners:





Kevin M. DelGobbo



Anna M. Ficeto



Anthony J. Palermino









CERTIFICATE OF SER
VICE



The foregoing is a true and correct copy of the Decision issued by the
Department of Public Utility Control, State of Connecticut, and was forwarded by
Certified Mail to all parties of record in this proceeding on the date indicated.




















February 9, 2011


Kimberley J. Santopietro


Date


Executive Secretary




Department of Public Utility Control