Northeast Energy Efficiency Partnerships, Inc.

Comments on New England Comments on New England Regional State Committee*Regional State Committee*

Presented to:Presented to:

MA Restructuring RoundtableMA Restructuring Roundtable

By: Susan CoakleyBy: Susan CoakleyNortheast Energy Efficiency Partnerships, Inc.Northeast Energy Efficiency Partnerships, Inc.

June 18, 2004June 18, 2004* * Comments represent views of NEEP Staff, not necessarily of NEEP Board Members, Funders or Initiative Sponsors.

RSC-NE Is Good News for Energy RSC-NE Is Good News for Energy Efficiency Efficiency

RSC-NE Is Good News for Energy RSC-NE Is Good News for Energy Efficiency Efficiency

Broad Public Policy PerspectiveBroad Public Policy Perspective: : High level forum to address regional policy issuesHigh level forum to address regional policy issues Balance state and regional concernsBalance state and regional concerns Broad perspective that considers multiple public policy goals – Broad perspective that considers multiple public policy goals –

environmental, economic, fuel diversity and end-use energy efficiencyenvironmental, economic, fuel diversity and end-use energy efficiency

Regional Resource and Demand-Side Planning: Regional Resource and Demand-Side Planning: Provides for regional consideration of a energy efficiency as part a Provides for regional consideration of a energy efficiency as part a

resource portfolio to address system reliability and capacity needsresource portfolio to address system reliability and capacity needs

Market Structure and Pricing Barriers:Market Structure and Pricing Barriers: Forum to address regional transmission pricing and cost allocation Forum to address regional transmission pricing and cost allocation

issues in a manner that promotes cost-effective end-use energy issues in a manner that promotes cost-effective end-use energy efficiencyefficiency

Forum to propose market structures to capture additional energy Forum to propose market structures to capture additional energy efficiency resourcesefficiency resources

Four Problems for RCS-NE to Fix:Four Problems for RCS-NE to Fix:Four Problems for RCS-NE to Fix:Four Problems for RCS-NE to Fix:

1.1. Increased energy efficiency not included as part of a Increased energy efficiency not included as part of a cost-cost-effectiveeffective risk mitigation strategy to meet system reliability risk mitigation strategy to meet system reliability needs.needs.

2.2. Increased energy efficiency not considered as part of Increased energy efficiency not considered as part of solutions in system expansion planning (except as an solutions in system expansion planning (except as an interim emergency measure).interim emergency measure).

3.3. Energy efficiency not afforded same cost recovery Energy efficiency not afforded same cost recovery treatment as supply options to meet reliability and system treatment as supply options to meet reliability and system needs (SW CT an exception – new precedent?).needs (SW CT an exception – new precedent?).

4.4. No consistent or systematic capability to assess energy No consistent or systematic capability to assess energy efficiency or demand-side resources – retrospectively or efficiency or demand-side resources – retrospectively or prospectively.prospectively.

Recommendations for the RCS-NE Recommendations for the RCS-NE Agenda:Agenda:

Recommendations for the RCS-NE Recommendations for the RCS-NE Agenda:Agenda:

1.1. Regionally plan for and assess the potential for demand-Regionally plan for and assess the potential for demand-side sources to address power system reliability and side sources to address power system reliability and capacity needs. capacity needs.

2.2. Use risk mitigation analysis to assess the role of energy Use risk mitigation analysis to assess the role of energy efficiency as part of a cost-effective resource portfolio that efficiency as part of a cost-effective resource portfolio that meets a range of public policy objectives.meets a range of public policy objectives.

3.3. Recommend market rules and structures that allow energy Recommend market rules and structures that allow energy efficiency and demand-side resources to participate in efficiency and demand-side resources to participate in market-based solicitations to meet power systems needs.market-based solicitations to meet power systems needs.

Recommendations for the RSC-NE Recommendations for the RSC-NE Agenda:Agenda:

Recommendations for the RSC-NE Recommendations for the RSC-NE Agenda:Agenda:

4.4. Recommend to New England states policies that can Recommend to New England states policies that can increase energy efficiency to address efficient reliability increase energy efficiency to address efficient reliability goals (codes, standards, targeted efficiency).goals (codes, standards, targeted efficiency).

5.5. Develop regional protocols to consistently assess energy Develop regional protocols to consistently assess energy efficiency saving opportunities and impacts.efficiency saving opportunities and impacts.

6.6. Recommend pricing policies that provide price signals to Recommend pricing policies that provide price signals to increase customer investments in energy efficiency (LMP).increase customer investments in energy efficiency (LMP).

7.7. Recommend cost allocation policies that afford the same Recommend cost allocation policies that afford the same treatment for demand-side and supply-side resources.treatment for demand-side and supply-side resources.

8.8. Provide for public input.Provide for public input.

Northeast Energy Efficiency Partnerships, Inc.

For more information:For more information:For more information:For more information:

Northeast Energy Efficiency Partnerships, Inc.Northeast Energy Efficiency Partnerships, Inc.

5 Militia Drive5 Militia Drive

Lexington, Massachusetts 02421Lexington, Massachusetts 02421

781-860-9177781-860-9177

Scoakley@neep.orgScoakley@neep.org

www.NEEP.orgwww.NEEP.org