Clean Water Action supports the ramp up of energy efficiency programs to create quality green
jobs, cut energy costs for consumers, and reduce global warming pollution in Massachusetts. See
Governor Deval Patrick's press
release for more information. 

Efficiency program ramp-up under Green Communities Act is estimated to save electric and natural gas customers over $6 billion over three years

BOSTON – Heralding a new era in energy efficiency across Massachusetts, the Department of Public Utilities (DPU) has given final approval to plans committing the state’s investor-owned electric and natural gas utilities to a three-year agenda of innovative, customer-focused programs that will deliver unprecedented savings for consumers, the economy and the environment, Energy and Environmental Affairs (EEA) Secretary Ian Bowles announced today.

“These plans provide a roadmap toward a clean energy future that includes more local jobs in the efficiency sector, a cleaner environment thanks to fewer power plant emissions, and lower electric and natural gas bills for consumers residing in more energy efficient, comfortable homes,” Governor Deval Patrick said.

The Green Communities Act signed into law by Governor Deval Patrick in 2008 required the state’s investor-owned electric and gas utilities (and the Cape Light Compact, which operates efficiency programs on Cape Cod) to prepare energy efficiency plans that secure for their customers all available energy efficiency and demand reduction resources that cost less than new energy supply.  Following an exhaustive process led by EEA’s Department of Energy Resources (DOER) and Attorney General Martha Coakley’s office, the Energy Efficiency Advisory Council created by the Act unanimously approved the electric and natural gas utilities’ three-year efficiency plans last fall, and the utilities filed them with the DPU on October 30, 2009.     

“Cost-effective energy efficiency programs provide readily available options for consumers to control and reduce their energy consumption which can lead to lower bills, lower overall electricity demand and lower emissions from power plants,” said Attorney General Martha Coakley.  “We applaud the department’s approval of these groundbreaking plans that were developed by a diverse group of stakeholders over the past year. We look forward to now working to ensure that they are implemented in a manner that will help families and businesses in the Commonwealth cope with our region’s high energy costs.”       

“The Green Communities Act established energy efficiency as the Commonwealth’s ‘first fuel’ – what we look to first to power our homes and our economy,” Secretary Ian Bowles said.  “With this DPU action, we are off and running, pulling out all the stops to cut energy waste, save money and reduce greenhouse gas emissions in buildings across Massachusetts.”

Following a 90-day review period, during which it held a series of public and evidentiary hearings, the DPU yesterday approved plans that call for electric and gas utilities to invest approximately $2.2 billion in efficiency measures over three years. Funding for the programs will include existing charges on ratepayer bills, carbon allowance auction proceeds from the Regional Greenhouse Gas Initiative (RGGI) – the nation’s first functioning carbon market which has generated $79 million in auction proceeds to date, regional energy market revenues, and customer contributions. While utilities are allowed to recoup the cost of efficiency measures through rates (just as they would to pay for new supply), resulting improvements are projected to save participating electric and natural gas customers three times as much in the long run – more than$6 billion over three years, rocketing Massachusetts to the front of the national pack in terms of per capita savings through energy efficiency.  
“Today’s decision levels the playing field, putting energy efficiency on equal footing with new energy supply when it comes to powering our economy,” DPU Chairman Paul Hibbard said.

“The initiatives launched by these plans are expected to create or maintain nearly 4,000 jobs in Massachusetts,” DOER Commissioner Phil Giudice said.  “In the process, we’ll reap unprecedented savings for consumers, spur growth in the clean energy sector and cut greenhouse gas emissions from power plants.”

Greenhouse gas reductions attributable to electric and natural gas efficiency steps taken as a result of three-year plans are estimated at 15 million tons over the lifetime of the measures installed.

Hammered out during 25 Energy Efficiency Advisory Council meetings between November 2008 and October 2009 involving a wide range of energy, environment and business stakeholders, the new  efficiency plans require investor-owned electric and gas utilities to scale up their energy efficiency programs to reach greater numbers of customers than ever before.  Types of programs and services offered under the plans include improved energy assessments of ratepayers’ homes, and incentives for purchase and installation of high efficiency lighting, appliances, heating and air conditioning, and insulation and air sealing.

The plans call for better outreach to and education of energy consumers about the availability and benefits of energy efficiency programs, including outreach that is multicultural and multilingual, community-based, and geared toward new markets such as small family-owned businesses. Relying on traditional public information campaigns as well as new social media techniques, this outreach is expected to triple the number of Massachusetts customers that have historically tapped into efficiency programs offered by public utilities.  

On the electric side, the plans set an energy savings target of 2.4 percent of electricity sales in 2012, which would reverse the overall electricity usage trend from growing roughly 1 percent per year to declining 1.4 percent per year. Previous electric utility energy efficiency programs have produced savings of 0.8 percent to 0.9 percent annually. Energy efficiency investments to reach the 2012 target will save approximately 2,600 gigawatt-hours of electricity – enough to power more than 350,000 households, or 15 percent of the utilities’ residential customers, for one year. With electricity savings of 2.4 percent per year going forward, Massachusetts would meet nearly 30 percent of its electricity needs through improved energy efficiency, rather than additional power generation, by 2020.