Presentation by Aimee Powelka, Municipal Efficiency Coordinator, DOER. "Why do the utilities provide incentives for efficiency projects?"

1. Helping Massachusetts Municipalities Create a Cleaner Energy Future
COMMONWEALTH OF MASSACHUSETTS
Deval L. Patrick, Governor
Richard K. Sullivan, Jr., Secretary
Mark Sylvia, Commissioner
Meg Lusardi, Director
What Programs Do Utilities Offer
MAPC Municipal Energy Through Mass Save and How Does
Efficiency Finance They Work with an ESCO?
Workshop
Aimee Powelka
November 15, 2012
Municipal Efficiency Coordinator
Green Communities Division
Dept. of Energy Resources
1

2. MA is #1 in Energy Efficiency – Again!
http://aceee.org/sector/state-policy/scorecard
Helping Massachusetts Municipalities Create A Cleaner Energy Future

3. Green Communities Act 2008
 Chapter 169, Section 21
“electric and natural gas resource needs shall first be met
through all available energy efficiency and demand reduction
resources that are cost effective or less expensive than supply.”
 Electric & gas utilities must pursue all cost-effective
energy efficiency
 Statewide 3-year plans approved by Energy Efficiency
Advisory Council and Dept. of Public Utilities
 Electric & gas utility “Program Administrators” are
financially compensated based upon their performance
 Means they provide funds to “incentivize” efficiency
projects
Helping Massachusetts Municipalities Create A Cleaner Energy Future

4. Renewed Commitment to Energy Efficiency
Three-Year Plans
•2013-2015 plans were approved by
EEAC, must be approved by DPU,
expected January 2013
• Any major program changes
occur with new 3-year plans:
2013 direct install municipal program
Add municipal representative to
Energy Efficiency Advisory Council
Every Year
•Minor adjustments to incentives
levels & eligible technologies
occur every year
• Annual goals means projects
must be completed by beginning
December to count towards PA’s
goals
Helping Massachusetts Municipalities Create A Cleaner Energy Future

5. Why Use Mass Save?
 Pursue efficiency projects
 Receive incentives
 Convenient turn-key vendors
 Pre-existing relationship with utility
 For projects less than $100,000, no need to go
out to bid if working with utility-qualified
subcontractor
(MGL c. 25A, Section 14, see full requirements at:
http://www.mass.gov/eea/docs/doer/green-communities/pubs-reports/contract-
guidance.pdf)
Helping Massachusetts Municipalities Create A Cleaner Energy Future

6. Why Use Mass Save Instead of a
Performance Contract?
 Major efficiency projects already complete, only a few left to
pursue
 Build case for efficiency by doing individual projects and
demonstrating their cost savings
 No deferred maintenance needs
 Want to manage efficiency projects in-house to save cost
 Pursue limited number/scope projects
 Spread projects out over time
 Quick-payback projects using operating funds
Helping Massachusetts Municipalities Create A Cleaner Energy Future