# 2005 Annual Report

## TABLE OF CONTENTS

Introduction and Summary ....................................................................... 1

Impacts of 2005 Efficiency Programs ......................................................... 4

ENERGY STAR ® Residential Lighti ng Program ............................................ 5

Low Income Appliance R eplacement Program ............................................. 7

Business Program .................................................................................. 9

Building Operator Certif ication Program ...................................................... 13

Maine High Performance Schools Program.................................................. 15

State Buildings Pr ogram .......................................................................... 16

School Energy Education.......................................................................... 17

Program Review ..................................................................................... 19

Summary and Conclusions ....................................................................... 21

## Introduction and Summary

The Maine Public Utilities Commission’s Effi ciency Maine Program marks its third anniversary this year. Over the last three y ears, the Program has ev olved continuously. During the Program’s first year, the Co mmission implemented a number of “interim” programs patterned after successful program s operated elsewhere. The Commission

then fine tuned and transitioned m any of the interim efforts into full scale programs for the second year of program oper ation. During this past third year of operations, Efficiency Maine promotional efforts have increas ed participation rates in all programs and increased energy savings by 65% more than la st year’s program. The energy savings from last year’s programs alone equal as mu ch electricity as is used by more than 4,000 average Maine households. The increased efficiency reduces electricity bills by over $2.8 million and pr ovides environmental benefits by avoiding the emission of 55,000 pounds of sulfur dioxide, 20,000 pounds of nitrogen oxides, 34 million pounds

of carbon dioxide.

The Efficiency Maine business program experi enced a 45% increase over last year’s energy savings and continues to expand with the enthusiastic su pport of and promotion by our trade partners. This year t he Program developed the Philip C. Hastings Award in memory of our first program direct or to recognize the individual or organization whose efforts have further ed the Program’s goals. T he award was presented by
Governor John Baldacci to the Associated Grocers of Maine, fo r their extraordinary support of the Efficiency Ma ine Business program.

Our High Performance New Schools program is now working with all 17 of the publicly

funded new schools under construction in Maine to ensure they are built using state of the art efficient construction practices.

We have expanded our educational program e fforts and developed a “training catalog” of courses designed to incr ease awareness of efficiency oppor tunities in multiple sectors. During this past year, we delivered ni ne courses on specific aspects of energy management and efficiency to meet the tr aining needs of over 160 individuals and companies.

Efficiency Maine’s residential programs have also expanded. Energy savings in the residential lighting program for fiscal year 2005 increased by 35% over the previous fiscal year. During the spring and early su mmer, Efficiency Maine staff and consultants began planning a television campaign using an advertisement developed especially for the program by our public relations firm. The ads were run in conjunction with the United States Environmental Protection Ag ency “Change a Light – Change the World” campaign. During the same time period, Program staff and c onsultants negotiated special lighting promotions with Maine’s tw o major grocery store chains, the Aubuchon Hardware stores, and Maine Hardware. T he negotiations were successfully completed in time for the fall lighting campaigns. All but two of Maine’s Wal-Mart stores have joined our list of regular retail partners. The lead time, advance preparation, and pro-

1motional work resulted in the sale of more than 100,000 efficient li ghts in the past three months, exceeding the sales of the entire twelve prior months 1

.

The Commission must allocate at least 20% of the Conservation fund to programs that provide efficiency services for Low Income c onsumers. During the last fiscal year the program replaced over 1,500 refr igerators, two times as many as the prior year, and 18,000 efficient lights, three times as many as the year before in low income households. During the summer, we agreed with the Maine State Housing Authority to double the number of customers served by th e Low Income Appliance replacement program to 3000 by the end of calendar year 2005. Funds from the Conservation Fund were also used to purchase electricity saving measures such as efficient lights, furnace filters, and pipe insulation that were installed in the first launch of the Operation Keep ME Warm program.

We continue our collaborati on with other State agencies. The MPUC, the Maine Bureau of General Services (BGS), and t he Maine Department of Education (MDOE) have finalized BGS Rule Chapter 60, “Improvem ent of Energy Efficiency in State Buildings.” This rule will ensure that all publ icly funded buildings in Maine will be designed and built to be 20% more energy efficient t han required by the commercial building energy code. To simplify and facilitate t he process, we have developed the “Maine Benchmark,” a handbook that instructs contra ctors on how to achieve the energy savings specified by law. Together with BG S, MDOE, and the United States Department of Energy, we are developing training sessi ons to introduce the Maine Benchmark to the community of building pr ofessionals who design and build public buildings. We have worked with the Maine Department of Corrections and the Bureau of GeneralServices to complete two guaranteed energy savings contracts. We continue to collaborate with the Maine Office of Energy Independence and Security to help implement projects such as Operation Keep ME Warm. And we work with the Maine DEP to promote more efficient, less pollu ting uses of energy. Most recently, the Commission has funded and jointly implemented a project wit h Maine’s Energy Resources Council aimed at encouraging Maine consumers to r educe electricity usage during periods of electricity shortage.

Rapidly increasing program participation rates combined with a capped budget are forcing the Commission examin e new ways to maximize program benefits while minimizing program costs. At the beginning stages of our pr ograms, funding levels exceeded program expenses and resulted in funds being carried over from one year into the next. As program partici pation increases, these carry over balances are shrinking and will vanish by the end of th is fiscal year. To make t he most of these limited resources, the Commission initiated Docket No. 2005-446, a proceeding to review the Program’s original goals, objectives and strat egies to ensure their continued relevance. We requested input on how to improve t he operation of existing programs and ideas for new programs we should implement. We hosted a day long energy conference with national experts on efficiency programs to get the benefit of experiences in other

1 The sales and energy savings of these products are not included in the tables of this report because they occurred in FY’06.

2states. To ensure prudent exp enditure of ratepayer funds, we conducted our first program evaluation by participat ing with other program implem enters in a joint evaluation of our Building Operator Cert ification training program. The evaluation concluded that the program is well received and overwhelmingly cost effective. We will next initiate and conduct an independent evaluation of our business program to determine whether there are ways to improve the delivery meth od or cost effectiveness and increase energy savings. Through our review, we have concluded that the menu of programs currently offered through Efficiency Maine remains sound and should be continued with minor changes.

Increased participation in the Efficiency Ma ine programs has certainly been driven in part by our promotional effort s. But it also comes agains t a backdrop of rapidly rising energy prices, the specter of shortages, and a public that is increasingly aware of energy issues. The price of electricity is bei ng driven up by increases in the price of natural gas, the fuel for much of New England’s generation fleet. As th is report is being written, the Standard Offer price for resi dential and small commercial customers is nearly 7 cents per kWh and will rise to more than 8 cents next March. By comparison, the energy savings generated through the Effi ciency Maine program that have a levelized cost of 2.7 cents per kWh are a bargain fo r Maine consumers. With this in mind, the Commission will make every effort in the coming year to stretch limited Conservation Fund dollars to reach as many Maine homes and businesses as possible.

The table at right provides an overview of Efficiency Maine’s fiscal year 2005 programs. The estimated energy savings are based on the latest information available. The “Program Costs” are act ual program expenditures from July 1, 2004 through June 30, 2005. Program benef its are energy costs avoided by program measures over their

installed lives 2 . Section 2 of this report provides a more in-depth description of the operation and achievements of each program. Section 3 provi des an overview of our investigation into the goals, objectives, and standards of program operation. Section 4 provides projected revenues for future y ears, along with our expectations for how the program expenditures will ma tch projected revenues.

2 Energy costs avoided were generated in the Av oided Energy Cost Study conducted for New England program implementers in 2003 by ICF consulting. Pr ogram B/C ratio includes program and participant costs in the denominator and avoided energy costs as numerator.

3Program Energy Savings (MWh/yr) Program
Costs Program

Benefits B/C

Ratio Emission

Reductions

Low Income Appliance Replacement 3,387 $1,480,328 $2,684,122 1.8 2,093 tons CO2 6,706 lbs. SO2 2,473 lbs. NOx

Residential Lighting 5,637 $1,631,000 $2,631,000 1.6 3,484 tons CO2 11,161 lbs. SO2 4,115 lbs. NOx

Business 13,330 $3,558,976 $ 12,017,000 2.4 8,238 tons CO2 26,393 lbs. SO2 9,371 lbs. NOx

Building Operator
Certification 5,674 $112,170 $2,112,187 5.8 3,507 tons CO2 11,235 lbs. SO2 4,142 lbs. NOx

High

Performance
Schools* NA $112,747 NA NA NA

State Buildings 482 $214,390 $396,088 1.85 298 tons CO2

954 lbs. SO2

352 lbs. NOx

Energy

Education Programs NA $24,594 NA NA NA

Other Accounts**

NA $361,115 NA NA NA

Total 28,510 $7,100,415 $19,839,935 2.26 17,620 tons CO2 56,449 lbs. SO2 20,453 lbs. NOx

* 16 schools are in various stages of constructi on but have not been completed, so no savings are

claimed.
** “Other Accounts” includes state accounts and control charges, memberships and sponsorships. 

## Impacts of 2005 Fiscal Year Efficiency Programs

4The Maine Public Utilities Commission’s Efficiency Maine program launched an

ENERGY STAR® Re sidential Lighting Program in February 2003. ENERGY

STAR® is a combined effort of the United States Department of Energy and United States Environmental Protection Agency to raise consumer awareness of energy efficient products. The average home spends between $85 and $127 per year on energy for lighting. ENERGY STAR® labeled lights can cut these costs by three quarters.

The program’s goal is to increase the sale of efficient lighting products and to createa self-sustaining market for them. Success will be measured by increased product sales and availability, as well as increased consumer awareness of efficient lighting.

The Residential Lighting Program promotes ENERGY STAR® lighting products via retail partners who support the program by:

• Educating customers on efficient lighting products;

• Accepting program coupons;

• Providing product displays; and,

• Hosting promotional events.

Program representativ es have trained the sales staff of 166 retail partners on the benefits of energy effici ent lighting. Thisyear, 31 events at retail locations demonstrated the value of face-to-face sales by promoting the sale of 4,385 bulbs.

Program promotions included:

• An Efficiency Maine TV spot;

• US EPA public service announcements

with an Efficien cy Maine tagline; and,

• Ads and articles in newspaper home improvement sections. • 3 Home shows;

• Radio advertisements;

• Community partnerships;

• Habitat for Humanity; and,

• Portland Symphony Show House;

Promotion is working. Sales of efficient lighting have doubled from the program’s first year and the number of participating

retailers and web site hits are all increasing. Energy savings from the past year are 5.6 million kWh per year that will saveconsumers more than $5.2 million in energy costs over their lives. The program benefits exceed its costs by 1.6 to 1. Andthe increased efficiency avoids the emission of 3,484 tons of CO 2 , 11,161 pounds
of SO 2 , and 4,115 pounds of NOx. 

## Residential Lighting Program

Residential Lighting Program

Benefits and Costs

$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000

Benef its Costs

Generation Savings T&D Savings O&M

Other Costs Participant

Incentive

5Partnering with Habitat for Humanity in Cumberland.

6Efficiency Maine’s Low Income Appliance Replacement program is a collaborative
effort between the Maine PUC and the Maine State Housing Au thority (MSHA) to

reduce low income consumer electric bills through energy efficiency. The programreplaces inefficient refrigerators and installs energy efficient lighting in the homesof qualified low income consumers. Program goals are to increase the affordabilityof electricity services for low income customers, reduce electricity consumption,and provide environmental benefits. Efficiency programs for these customers are important. Though their electricity use per household may be low relative to other customers, their energy costs consume a greater percent of their incomes.

Program administrativ e costs are minimized by working with MSHA to supplement an existing feder al program administered by MSHA and delivered by the Community Action Programs (CAPs) that provides energy audits and weatherization services to qualified cu stomers. The Efficiency Maine program supplements theseefforts through a memorandum of understanding (MOU) with MSHA under whichCAP energy auditors arrange for the replacement of refrigerators when the estimated energy savings are greater than 750 kWh per year. Auditors also install efficient compact fluorescent lamps (CFLs) in locations where they will provide the greatest energy savings.

In this third year, Maine’s CAPs have delivered over 1,500 refrigerators 1 (twice as many as last year) and more than 18,000 CFLs (three times as many as last year) to

low income customers. Altogether, the refrigerators and efficient lights should save each customer about 1,400 kWh per year and about $190 per year on theirelectricity bills. The program is cost effective with a benefit to cost ratio of 1.8 to 1. Avoided emissions include 2,093 tons of carbon emissions and 6,076 and 2,473 pounds of SO 2 and NOx respectively. At the request of Maine’s Office of Energy Independence and Security, Efficiency

Maine and MSHA have amended their MOU to expand the program to reach more than 3,000 homes during the next calendar year. 

## Low Income Appliance Replacement Program

1 Replacement activity for FY ‘05. Low Income Appliance
Replacement

Benefits and Costs

$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000

Benefits Costs

Generation Program Cost T&D Savings

78The Maine Public Utilities Commission launched the combined Efficiency Maine Business Program on S eptember 1, 2004. The “combined” program functions as an umbrella program t hat bundles energysaving opportunities into groups of measures suitable for various customer types (e.g. schools, municipalities, farms) which had been treated as separate programs prior to reorganization.

The new program is now the "One Stop Shop" for Maine's businesses, schools and other entities desiring to increase their electric energy efficien cy. The Efficiency Maine website guides consumers throughthe incentive application process and provides the applications necessary for preestablished or custom incentives. Energy saving tips for businesses are available as

well as case studies that document howother, similar businesses have saved energy. The site provides a number of tools

customers can use to estimate the value of energy efficiency im provements at their
businesses. Small business customers receive support tailored to their needs, as do private and public kindergarten through twelfth grade schools. Larger commercial

and industrial customers continue to receive assistance from program staff members who have the technical knowledge required for projects that are more complex. Customers can also receive personal assistance with a call to the Efficiency Maine hot line at 1-866-376-2463 (1-866-ES MAINE).

The umbrella structure allows Efficiency

Maine and its contractors to direct customers to the appropriate area of the program

rather than overwhel ming them with toomany choices and application forms. Under the new structure, all businesses are eligible for up to $50,000 in incentives per calendar year regardless of their size. Inaddition, a list of pre-established cash incentives for qualified equipment is provided, including a se lect group of incentives available only to kindergarten through twelfth grade schools and small

businesses.

Program Allies, the 341 manufacturers, wholesalers, retailers, professionals and contractors that work with Efficiency Maineto promote, install and service energy efficient equipment, are vital to the Business Program success. The Program has added 116 Allies since last year’s report.These Allies serve as the program’s primary delivery channel for efficient electrical equipment, and their participation is an important part of t he program's markettransformation objective. Should the program end tomorrow, these businesses willbe better equipped to promote and sell energy efficient equipment than they would

have been without our effo rt. Training programs, business association functions,and trade shows are proving to be an effective means of educating and creatingchange in the marketplace. Continual outreach with key business and trade associations is also an important component in building the credibility and reputation of Efficiency Maine programs. The outreachevents in which Efficiency Maine participated, ranged from ma jor trade shows attracting hundreds of people to select groups invited by Program Allies. The

events included: • 48 trade shows; • 16 speaking engagements; and, • 17 training sessions. Our communications plan includes 

## Business Program

9monthly e-mail newsletters to Program Allies and a quarterly printed newsletter which highlights projec ts, Program Allies, and technical information. The quarterly

newsletter is distributed statewide to over6,500 businesses, associations, nonprofits, and government agencies, as well asto Program Participants and Program Allies. As mentioned above, our Web sitefeatures a list of resources geared to specific technologies or industry areas and

includes case studies suitable for variousindustry types. The scope of the measures and types of projects listed is growing with our experience.

The Efficiency Maine Web Site’s paperless access to the pre-established incentive list, applications, and technical resources allows us to change incentive amounts and add technologies quickly and without having to print new forms. The site alsoprovides a searchable database of Program Allies throughout the state. Our Geographic Information System (GIS) linkeddatabase helps customers to locate Program Allies whose businesses are within a prescribed radius of their location by simply entering their zip code.

As a whole, the Business Program is cost
effective with a Benefit to Cost Ratio of 2.4

to 1. When view ed independently, the small business component is slightly less
cost effective with a B/ C ratio of 2.2 to 1 than the general business component which has a ratio of 2.7 to 1. During fiscal year 2005, the Efficiency Maine Business Program provided $1, 598,980 in financial

incentives to 315 Maine businesses and schools and it has helped them save more

than 13 million kWh of el ectricity. The estimated reduction in their annual operating costs is more than $1,400,000. Over their

lives these measures will save their owners more than $20,000,000 in energy costs. Environmental benefits include the avoidance of 8,238 tons of CO 2 , 26,393 pounds of SO 2 , and 9,371 pounds of NOx.

The program will continue to evolve over the coming year. We will implement a

number of recommendations received in our investigation into our programs. For example, we will gradually add to our fieldstaff, expand the use of technical assistance studies, and allow customers to bundle two years worth of incentives into one.We will also conduct an independent process and impact evaluation to seek other ways to improve the program.

Business Program

Benefits and Costs

$0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000

Benefits Costs

Generation Savings Other Costs Participant Costs

Incentive Costs T&D Savings

10The Jackson Laboratory

Jackson Laboratory in Bar Harbor, embarked on a program to measure and benchmark its energy use. The information gained helped to identify and provide economic justification for energy efficiency projects. Using the Bu siness Program, the Laboratory installed more efficient motor drives and lighting systems.



### “Whether research or mouse production, being energy efficien t is a critical component of creating the greatest value

we can.”

Dr. Charles Hewitt, Jackson Vice President and CEO Research at the Jackson Laboratory.

McCormick’s Thriftway

After learning about the Business Program through the Associated Grocer’s of Maine, Barry McCormick ofMcCormick’s Thriftway in Unity installed efficient lighting, refrigerator controls, and energy efficient evaporator fans on the store’s walk-in

cooler.



### “Comparing our old lighting with the new is like night and day. We are seeing a significant drop in our monthly bill. The only way we could do these projects was with

the incentives”

Barry McCormick, owner of McCormick’s Thriftway

11Nonantum Resort

When the Nonantum Resort needed to replace the HVAC system in its lobby, General Manager Tina Hewett said they worked with their contractor to identify an

efficient unit.



### “After I learned about Efficiency

Maine’s incentives, we talked with our contractor about using them. The incentive allowed us to buy a more efficient unit than we

otherwise would have and we will continue to benefit from greater energy savings”

Tina Hewett, General Manager, Nonantum

Resort Nonantum Resort, Kennebunkport ME.

12Efficiency Maine’s Build ing Operator Certification (BOC) program is provided in cooperation with the Northeast Energy Efficiency Partnerships (NEEP). The program is an eight-day course offered over a four month period that prov ides building staff training to improve energy efficiency and

reduce maintenance costs in their facilities. An evaluation of the program documented average energy cost savings in municipal buildings of $15,114 per yearthrough the improved maintenance practices taught in the course. Instructors

draw from their own experience to provide practical advice to students. The course also provides information on non-energyissues such as indoor air quality and occupant comfort. The BOC program complements other Efficiency Maine programs by alerting students to their availability.

The BOC course has so far been marketed primarily to public school systems

but sessions have also included operators of State buildings. Tuition has not been charged to schools, state agencies, or

other entities funded through state and local taxes. Efficiency Maine’s objective in targeting the operators of such facilities is to reduce their energy costs and spreadprogram benefits to state and local taxpayers who pay for facility operating costs.

Since the start-up of the program in 2002, nine BOC courses have been provided

across the State. C ourse locations include Portland, Bangor, Presque Isle/Houlton, Calais, York, Augusta, Auburn and Old

Town. More than 250 students from

across the state hav e graduated from the program and our program evaluation

shows that 84% of those students improved the comfort or productivity of their building’s occupants and reduced energy

costs from skills t hey learned in the course. Some of the savings are achievedwith the installation of more efficient equipment. Others are achieved through improvements in facility operations and maintenance practices. This program is highly cost effective with a benefit to cost ratio of 5.8 to one. Facilities operated by this year’s course graduates are expected to save 5,637 MWh per year and avoid 3,507 tons of CO 2 and 11,235 and 4,142 pounds of SO 2 and NOx respectively. During FY’06 Efficiency Maine will provide two

BOC Level 1 and two level II courses. We will also explore the expansion of the course to private sector companies for a

fee. 

## Building Operator Certification Program

Building Operator Program

Benefits and Costs

$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000

Benef it s Cost s

Generation Savin g s Participant Costs

Incentive Costs T&D Savings

13BOC Level I, Auburn ME. 

### "Learning from what other facility operators have

overcome and dealt with;

Instructors were great."

Sam Bradeen, Maine Department of Corrections, CCF/MVY, Charleston,

ME

14Efficiency Maine’s High Performance Schools Program was created to capture the opportunities for efficiency in newschool construction. Five to ten new public schools are built in Maine each year and they are the great est expenditure of public money on construction projects. Since the buildings will last 50 years, building them to high standards of energy efficiency will reduce operating costs formany years. Better design and construction practices can reduce their annual operating costs by up to twenty-five percent. Participation in the program will make buildings more comfortable and enhance the educational experience. With limitedstate and local funding, efficiency measures that raise initial building costs may not be included in new school designs. Toaddress this problem, Efficiency Maine developed the Maine High Performance Schools program. The program aims toreduce energy consumption and lower operation and maintenance costs through

financial and technical assistance to newschools to pursue better designs and install more efficient equipment.

The program is a partnership of the Maine Department of Education (MDOE), Bureau of General Services (BGS), and the Maine School Management Association (MSMA). The Commission’s State Energy Program

and the United States Department of Energy are also involved with a grant to help MSMA promote the program. This level of partnership is far greater than in similar programs in other states. It ensures school departments are aware of the program early enough to include efficiency as a priority in the design process. A second set of program grant s helps reduce the purchase cost of more efficient equipment. All 17 schools currently eligible for public funding have signed on to the program. A second group of school s identified by the MDOE will be required by law to be 20% more energy efficient than the current commercial building energy code. The 20% above code requirement will serve as the new baseline for building performance. Based on experience we have gained to date, we are confident that cost effective efficiency opportunities remain beyond the new 20% mandate. In the next year, we will pursue recommendations made in our investigation into programs to focus more effort on the building design process. Wewill continue to encourage LEED construction principles, but we will eliminate the grant for pursuing LEED certification to devote more funds towards enhancing the new building design process. 

## Maine High Performance Schools Program

15The Commission’s State Buildings Program was initiated as an “interim” program in the spring of 2002. At the time, there
were several State buildings that had been
identified as inefficient. Some of these buildings were undergoing substantial renovation. The program provided funding

to assist the Bureau of General Services (BGS) with the increment ally higher costs of more energy effi cient equipment. As a result of program funding, a number of lighting upgrades in multiple buildings were accomplished and a major upgrade
to the Governor Baxter School for the Deaf

was made more efficient.

Over the past year, the State Buildings Program has shifted emphasis. Instead of using conservation fund money to help purchase more energy efficient equipment, Program staff are work ing with other State agencies to acquire energy efficiency through other mechanisms.

We have worked with Maine’s Department of Corrections to help develop a third party, performance based energy savings contract. Under the contract, an Energy Service Company (ESCO) will finance and install $945,000 wort h of energy improvements in the Maine State Prison facility at Warren. The projec t is guaranteed by thedeveloper to return $245,000 in annual energy savings whic h will endure well beyond the 4 - year payback period. We are also working with the Bureau of General Services on a pilot, third-party contract for five buildings under t he Bureau’s control in the Augusta area. Preliminary indications are that a $780,000 inve stment will yield a 17% reduction in energy consumption and $123,000 per year in reduced operating costs. The projec t will be used to demonstrate the feasibility of borrowing money to invest in appropria tely negotiated guaranteed savings contracts. Our goal is to establish a prescribed set of circumstances for which the Legislature would grant the

State Division of Administrative and Financial Services the authority to enter into

such contracts.

Through funding from the Henry P. Kendall Foundation and the US Department ofEnergy’s (US DOE) Rebuild America program, we have worked with BGS to develop the “Maine Benchmark”. The

Benchmark is a document that describeshow to meet the requirement that all publicly funded construction or leased spacebe 20% more energy efficient than required by current commercial building energy codes. During development of the Benchmark, we worked with multiple

stakeholders to customize the documentfor Maine’s climate and construction practices. Funding from US DOE will help us next year to provide training on how to use

the Benchmark for the various entities involved in constructing publicly funded buildings. Our work on the Benchmark with the designers an d contractors involved in construction of publicly funded spaces will provide them with experiencethat will transfer to privately funded projects. 

## State Buildings Program

16There are two educat ion programs operating in Maine that provide education on energy issues to kindergarten through twelfthgrade students. The Maine Energy Education Program (MEEP) serves students in

central and southern Maine, while a second program operated by Maine Public Service Company serves students in northern Maine. Both programs increase consumer knowledge of energy efficiency.Lack of knowledge is a fundamental market barrier to economically efficient behavior. The programs provide students with information on electricity production, its

use and conservation at home and at school, and the effect s of energy use onthe environment and the economy. Lessons learned in school spill over into the home, improving energy awareness.

The MEEP program combines general awareness classroom training activities with practical skills that allow students to monitor their school building’s energy use. It also offers a component called “Energy Patrols.” The patrols are older students

who increase teac her and student awareness of energy issues through classroom skits, distribution of informational materials, and reminders to turn off computers and lights that are not in use. MEEP has

demonstrated that schools with active Energy Patrols have reduced their energy consumption. Duri ng the 2005 fiscal year, MEEP provided classroom presentations
to 102 schools across the State.

Maine Public Service Company’s Energy Education Program dates back to the1970’s. The program includes two components. One educates students about energy issues in the schools, and the other provides a broader overview of societal energy issues. Maine Public’s “Energy Eagle Patrol” is similar to the “Energy Patrol” in that a

team of students raise awareness of energy issues in schools by distributing energy efficiency informational materials and reminding fellow students and teachers toturn off lights. The patrol program includes presentations on how to read electric meters, the advantages of fluorescent lighting, and the energy use of computers. Last year, one Energy Eagle Patrol team was established in each of the following schools: Zippel Elementary School in Presque Isle, Fort Street Elementary

School in Mars Hill and Patrick Therriault

School in Sinclair.

Maine Public Service’s BE Energy Wise(BEEP) program is part of a larger, national energy education effort. BEEP materials are designed to fulfill educational learning standards in most disciplines and at all grade levels. Portfolios of student work developed through the program are

entered into a national competition. During the 2005 fiscal year, the Maine Public Service Company program conducted 59 educational presentations and reached over 1,410 students.

Consumer education is an integral part of the Commission’s Efficiency Maine market transformation objective. Commentsgathered in our Docket 2005-446 to examine the entire Conservation Program encouraged the continuation of such educational efforts. Therefore both programswill be continued as part of the Commission’s ongoing educat ion efforts. 

## School Energy Education Program

17Governor Baldacci, Representative Gary Plummer, Senator William Diamond, and Beth Nagusky, Director of Energy Independence and Security present an award to Corrinna Swanson from Manchester School in Windham for her energy savings ideas.

1835-A M.R.S.A. §3211-A (the Conservation Act or the Act) dire cts the Maine Public Utilities Commission (Commission) to “develop and, to the extent of available funds, implement cons ervation programs.. ..” It also require s that "[t]he commissionshall establish and, on a schedule determined by the commission, revise objectives and an overall energy strategy for conservation programs. ” In Chapter 380 of the Commission’s Rules, we stated that we will review the goals, objectives, and strategies of the Efficiency Maine program “no less frequently than every three years.” Chapter 380, § 3(B)(3). Public review and stakeholder input on the conduct of the efficiency programs are necessary to ensure that the programs we implement remain relevant and the level of public confidence in them remains high. To thatend, on July 7, 2005, the Commission initiated Docket No. 2005-446 “Proceeding to Review Goals, Objectives, and Strategiesfor Conservation Programs and to Consider Revisions to Efficiency Maine Program Plan.”

In our Notice of Proceeding, we described our preliminary view s concerning our 2005goals, objectives and strategies. We reported on the progress of the program as a whole and each program individually in achieving the requirem ents set out in the Act. We described our preliminary views on changes to our pr ogram plan, and we

solicited comments from interested parties on our proposed goals, objectives and strategies, as well as on our proposed changes to the program plan. We held two public hearings; one on September14, 2005 for stakeholders to provide comments to the Commission, and one on October 20, with nationally recognized experts in the efficiency field to examinewhat is happening nationally in the industry. In the proceeding, we received comments from 15 separate stakeholder

groups.

The Commission concluded the Goals, Objectives, and Strategies as determined in our initial program planning and design

Docket No. 2002-162 remain relevant and

should be retained for at least three more years. Based on the comments received,

we determined that a number of minorchanges can be made to existing programs within the current contracts. We concluded that the targets for Low Income Appliance replacement can be increased. The residential light ing program can include more cooperative promotional efforts with industry. The business program can aggregate two years worth of incentives into one when it appears it will be valuable to the customer. The business program can also expand its field staffing to better address questions from customers as the

number of customers involved in the program increases. We determined that our High Performance Schools program should focus more attention on the design phase of building construction. To free up funds to do this, we modified the program by ordering that the separate grant for pursuing LEED Certification be eliminated.

The majority of comments received were directed at our Efficiency Maine Business program, which represents approximately one-half of our pr ogram budgets and provides almost one-half of the energy savings achieved. Some of the comments recommended major structural changes for the program which we declined to make in the context of the proceeding. 

## Program Review

19Instead, we directed sta ff to initiate a formal, independently co nducted evaluation of the program to investigate whether there are ways to improve the method ofdelivery, the cost effectiveness of the program, or the level of savings achieved. Evaluation results on the level of savings and the method of program delivery will be used to develop our future solicitations for program implementation services. Someother comments encouraged the Commission to increase Program staffing levels and to develop closer ties to participatingconsumers. We recognized that our current staffing levels are barely adequate to accomplish our current mandates and will implement those recommendations to the extent permitted by cu rrent statute.

Three new programs were suggested bystakeholders; a new commercial construction program, a new residential construction program, and an existing homes program. Due to the extraordinarily high energy prices currently being experienced byhomeowners, we were persuaded to explore the addition of an existing homes performance program. As discussed above, we do not have the staffing or budget levels necessary to implement a full fledged program of th is nature at this time. We have instead directed program staff to explore granti ng to the Office of Energy Independence and Security (OEIS) a maximum of $150,000 per year for three years to run a pilot whole house program.The grant is contingent on OEIS developing a plan that will deliver a satisfactory program, a budget that accurately reflects that program, and adequat e funding to implement the pilot.

We do believe we can incorporate some ofthe suggestions made for other new programs into the struct ure of existing programs. For exampl e, our High Performance Schools Program (essentially a new commercial building program) will focusmore effort on improving new building design practice. Equipment installed in new commercial buildings can qualify for thecurrent business program incentive structure, and the next time we solicit implementation bids for th e program, we will include a new construction component in therequest. We will promote efficiency in existing residential build ings and in the construction of new dwellings by educating

builders and contractors about the virtues of energy efficient construction practices and efficient equipment. We will provide workshops and training on building energy

codes to contractors and code enforcement officials, and we will drive consumerdemand for more efficient homes by continuing our general prom otions of energy efficiency and by working with the Maine State Housing Authorit y to train and certify residential energy auditors.

20Since May of 2002, the Maine Public Uti lities Commission (PUC) has planned, initiated, and implemented energy effi ciency programs. This is a unique role among PUCs in that only in Maine does the Public Ut ilities Commission perform this function. The Commission’s implementation of the Efficien cy Maine conservation programs has successfully met all statutory requirements incl uding those for program cost effectiveness. The costs of efficiency investment are out weighed by 2.3 to 1 by the benefits of avoided power supply costs. The program energy savings have grown each year. Expenses have increased, but the amount of in vestment in energy efficiency we have

been able to stimulate has increased more. The figure below shows steady gains in energy efficiency achieved for each y ear over the past three years.

The Commission has also met the statute’s requirement for targeted spending in the

low income and small business sector’s. During fiscal year 2003, program spending on the low income and small business sectors was 21% and 19% respectively. In FY’04, 19% of our budget was spent on the low income sector and 19% was spent on the small business program. Finally, in FY’05, the Efficiency Maine program spent

22% of available funds on our low inco me efforts and 20% on small business.

Program energy savings have outpaced the pr ojections made during the Commission’s proceeding (Docket No. 2002-162) to initiate the programs. After th ree years, the program’s cumulative energy savings are near ly 63% greater than projections made for the program during the 2002-162 conservation docket. 

## Summary and Conclusions

Annual Savings Achieved

0 2000 4000 6000 8000 10000 12000 14000

FY'03 FY'04 FY'05MWH State Buildings

BOC

Residential Lighting

Business Program

New Schools

21Our projected revenues and t he amount of these revenues we expect will be spent in each program area are presented below. The pr ojected revenues displayed in this figure are based on the most recent data available from each of the ut ilities. Utility revenues in turn are based on projected sales le vels which can be influenced by such external factors as weather or the economy. The revenue projections should therefore be viewed only as projections. It is also im portant to note that t he expenditure levels for each of the program areas presented below can vary. Continued expansion of existing programs such as seen this year in the Commercial and Industrial (C&I) and Residential Lighting programs, or the addition of new pr ograms such as OEIS’ Home Performance program or the “Save A Watt 10% Challenge” may require the Commission to reallocate expendi tures. The Commission may make other changes in 2008 when it conducts its next three year program review in 2008.

Projected Spending

$0 $2 $4 $6 $8 $10 $12 $14 $16 $18

2005 2006 2007 2008 2009Millions

Market Research

Administration

Education

Public Facilities

C&I

Small Business

Residential

Low Income

22Efficiency Maine is a statewide effort to prom ote the more efficient use of electricity, help Maine residents and businesses reduce energy costs, and improve Maine’s environment. Efficiency Maine is funded by el ectricity consumers and administered by
the Maine Public Utilities Commission.

For more information, please contact:

Denis Bergeron Director, Energy Programs Division
Maine Public Utilities Commission 242 State Street, 18 St ate House Station Augusta, Maine 04333-0018 Tel: (207) 287-3349 Fax: (207) 287-1039

E-mail Address: denis.bergeron@maine.gov

Web Address: http://www.efficiencymaine.com

This Report was published by the Maine Public Utilities Commission, Division of Energy Programs. This publication is printed under appropriation #014-65A-0966-01.