2005 Annual Report 
TABLE OF CONTENTS 

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

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

ENERGY STAR® Residential Lighting Program ............................................ 5 

Low Income Appliance Replacement Program ............................................. 7 

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

Building Operator Certification Program ...................................................... 13 

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

State Buildings Program .......................................................................... 16 

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

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

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

 
Introduction and Summary 

The Maine Public Utilities Commission’s Efficiency Maine Program marks its third anniversary this year. Over the last three years, the Program has evolved continuously. 

During the Program’s first year, the Commission implemented a number of “interim” 

programs patterned after successful programs operated elsewhere. The Commission 

then fine tuned and transitioned many of the interim efforts into full scale programs for 

the second year of program operation. During this past third year of operations, Efficiency Maine promotional efforts have increased participation rates in all programs and 

increased energy savings by 65% more than last year’s program. The energy savings 

from last year’s programs alone equal as much electricity as is used by more than 

4,000 average Maine households. The increased efficiency reduces electricity bills by 

over $2.8 million and provides 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 experienced a 45% increase over last year’s 

energy savings and continues to expand with the enthusiastic support of and promotion by our trade partners. This year the Program developed the Philip C. Hastings 

Award in memory of our first program director to recognize the individual or organization whose efforts have furthered the Program’s goals. The award was presented by 

Governor John Baldacci to the Associated Grocers of Maine, for their extraordinary 

support of the Efficiency Maine 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 efforts and developed a “training catalog” 

of courses designed to increase awareness of efficiency opportunities in multiple sectors. During this past year, we delivered nine courses on specific aspects of energy 

management and efficiency to meet the training 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 summer, 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 Agency “Change a Light – Change the World” 

campaign. During the same time period, Program staff and consultants negotiated 

special lighting promotions with Maine’s two major grocery store chains, the Aubuchon 

Hardware stores, and Maine Hardware. The 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-

 1 
motional work resulted in the sale of more than 100,000 efficient lights in the past three 

months, exceeding the sales of the entire twelve prior months1

. 

The Commission must allocate at least 20% of the Conservation fund to programs that 

provide efficiency services for Low Income consumers. During the last fiscal year the 

program replaced over 1,500 refrigerators, 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 the 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 collaboration with other State agencies. The MPUC, the Maine Bureau of General Services (BGS), and the Maine Department of Education (MDOE) 

have finalized BGS Rule Chapter 60, “Improvement of Energy Efficiency in State Buildings.” This rule will ensure that all publicly funded buildings in Maine will be designed 

and built to be 20% more energy efficient than required by the commercial building energy code. To simplify and facilitate the process, we have developed the “Maine 

Benchmark,” a handbook that instructs contractors on how to achieve the energy savings specified by law. Together with BGS, MDOE, and the United States Department 

of Energy, we are developing training sessions to introduce the Maine Benchmark to 

the community of building professionals who design and build public buildings. We 

have worked with the Maine Department of Corrections and the Bureau of General 

Services 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 polluting uses of energy. Most recently, the Commission has 

funded and jointly implemented a project with Maine’s Energy Resources Council 

aimed at encouraging Maine consumers to reduce electricity usage during periods of 

electricity shortage. 

Rapidly increasing program participation rates combined with a capped budget are 

forcing the Commission examine new ways to maximize program benefits while minimizing program costs. At the beginning stages of our programs, funding levels exceeded program expenses and resulted in funds being carried over from one year into 

the next. As program participation increases, these carry over balances are shrinking 

and will vanish by the end of this fiscal year. To make the most of these limited resources, the Commission initiated Docket No. 2005-446, a proceeding to review the 

Program’s original goals, objectives and strategies to ensure their continued relevance. 

We requested input on how to improve the 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. 

 2 
states. To ensure prudent expenditure of ratepayer funds, we conducted our first program evaluation by participating with other program implementers in a joint evaluation 

of our Building Operator Certification 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 method 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 Maine programs has certainly been driven in 

part by our promotional efforts. But it also comes against 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 being driven up by increases in the price of natural gas, the fuel for much of New England’s generation fleet. As this report is being 

written, the Standard Offer price for residential 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 Efficiency Maine program that have a levelized cost of 2.7 cents per kWh are a bargain for 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 actual program expenditures from July 1, 2004 through June 

30, 2005. Program benefits are energy costs avoided by program measures over their 

installed lives2

. Section 2 of this report provides a more in-depth description of the operation and achievements of each program. Section 3 provides an overview of our investigation into the goals, objectives, and standards of program operation. Section 4 

provides projected revenues for future years, along with our expectations for how the 

program expenditures will match projected revenues. 

2 Energy costs avoided were generated in the Avoided Energy Cost Study conducted for New England 

program implementers in 2003 by ICF consulting. Program B/C ratio includes program and participant 

costs in the denominator and avoided energy costs as numerator. 

 3 
Program 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 construction 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 

 4 
The Maine Public Utilities Commission’s 

Efficiency Maine program launched an 

ENERGY STAR® Residential 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 create 

a 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 representatives have trained the 

sales staff of 166 retail partners on the 

benefits of energy efficient lighting. This 

year, 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 Efficiency 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 save 

consumers more than $5.2 million in energy costs over their lives. The program 

benefits exceed its costs by 1.6 to 1. And 

the increased efficiency avoids the emission of 3,484 tons of CO2, 11,161 pounds 

of SO2, 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 

 5 
Partnering with Habitat for Humanity in Cumberland. 

 6 
Efficiency Maine’s Low Income Appliance 

Replacement program is a collaborative 

effort between the Maine PUC and the 

Maine State Housing Authority (MSHA) to 

reduce low income consumer electric bills 

through energy efficiency. The program 

replaces inefficient refrigerators and installs energy efficient lighting in the homes 

of qualified low income consumers. Program goals are to increase the affordability 

of 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 administrative costs are minimized by working with MSHA to supplement an existing federal program administered by MSHA and delivered by the Community Action Programs (CAPs) that provides energy audits and weatherization 

services to qualified customers. The Efficiency Maine program supplements these 

efforts through a memorandum of understanding (MOU) with MSHA under which 

CAP 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 refrigerators1

 (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 their 

electricity 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 SO2 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 

T&D Savings Program Cost

 7 
 8 
The Maine Public Utilities Commission 

launched the combined Efficiency Maine 

Business Program on September 1, 2004. 

The “combined” program functions as an 

umbrella program that bundles energy 

saving 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 efficiency. The Efficiency 

Maine website guides consumers through 

the 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 how 

other, similar businesses have saved energy. The site provides a number of tools 

customers can use to estimate the value 

of energy efficiency improvements 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 overwhelming them with too 

many 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. In 

addition, a list of pre-established cash incentives for qualified equipment is provided, including a select 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 Maine 

to 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 the program's market 

transformation objective. Should the program end tomorrow, these businesses will 

be better equipped to promote and sell energy efficient equipment than they would 

have been without our effort. Training programs, business association functions, 

and trade shows are proving to be an effective means of educating and creating 

change 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 outreach 

events in which Efficiency Maine participated, ranged from major 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 

 9 
monthly e-mail newsletters to Program Allies and a quarterly printed newsletter 

which highlights projects, Program Allies, 

and technical information. The quarterly 

newsletter is distributed statewide to over 

6,500 businesses, associations, nonprofits, and government agencies, as well as 

to Program Participants and Program Allies. As mentioned above, our Web site 

features a list of resources geared to specific technologies or industry areas and 

includes case studies suitable for various 

industry 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 also 

provides a searchable database of Program Allies throughout the state. Our Geographic Information System (GIS) linked 

database 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 viewed 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 electricity. 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 CO2, 26,393 

pounds of SO2, 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 field 

staff, 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 

 10 
The 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 Business Program, the 

Laboratory installed more efficient motor 

drives and lighting systems. 

“Whether research or mouse production, 

being energy efficient 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 of 

McCormick’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 

 11 
Nonantum 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. 

 12 
Efficiency Maine’s Building 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 provides 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 year 

through 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-energy 

issues 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 spread 

program 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. Course locations include 

Portland, Bangor, Presque Isle/Houlton, 

Calais, York, Augusta, Auburn and Old 

Town. More than 250 students from 

across the state have 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 they learned in the 

course. Some of the savings are achieved 

with 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 CO2 and 11,235 and 4,142 

pounds of SO2 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 Savings 

Participant Costs 

 Incentive Costs

T&D Savings 

 13 
BOC 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 

 14 
Efficiency Maine’s High Performance 

Schools Program was created to capture 

the opportunities for efficiency in new 

school construction. Five to ten new public schools are built in Maine each year 

and they are the greatest 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 for 

many 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 limited 

state and local funding, efficiency measures that raise initial building costs may 

not be included in new school designs. To 

address this problem, Efficiency Maine developed the Maine High Performance 

Schools program. The program aims to 

reduce energy consumption and lower operation and maintenance costs through 

financial and technical assistance to new 

schools 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 grants 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 schools 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. We 

will 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 

 15 
The 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 incrementally higher costs 

of more energy efficient 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 working 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 worth of energy improvements in the Maine State Prison facility at 

Warren. The project is guaranteed by the 

developer to return $245,000 in annual energy savings which 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 the Bureau’s control in 

the Augusta area. Preliminary indications 

are that a $780,000 investment will yield a 

17% reduction in energy consumption and 

$123,000 per year in reduced operating 

costs. The project will be used to demonstrate the feasibility of borrowing money to 

invest in appropriately 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 of 

Energy’s (US DOE) Rebuild America program, we have worked with BGS to develop the “Maine Benchmark”. The 

Benchmark is a document that describes 

how to meet the requirement that all publicly funded construction or leased space 

be 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 document 

for 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 and contractors involved in construction of publicly funded 

spaces will provide them with experience 

that will transfer to privately funded projects. 

State Buildings Program

 16 
There are two education programs operating in Maine that provide education on energy issues to kindergarten through twelfth 

grade 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 effects of energy use on 

the 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 teacher 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. During 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 the 

1970’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 to 

turn 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. Comments 

gathered in our Docket 2005-446 to examine the entire Conservation Program encouraged the continuation of such educational efforts. Therefore both programs 

will be continued as part of the Commission’s ongoing education efforts. 

School Energy Education Program

 17 
Governor 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. 

 18 
35-A M.R.S.A. §3211-A (the Conservation 

Act or the Act) directs the Maine Public 

Utilities Commission (Commission) to 

“develop and, to the extent of available 

funds, implement conservation programs.. 

..” It also requires that "[t]he commission 

shall 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 that 

end, on July 7, 2005, the Commission initiated Docket No. 2005-446 “Proceeding to 

Review Goals, Objectives, and Strategies 

for Conservation Programs and to Consider Revisions to Efficiency Maine Program Plan.” 

In our Notice of Proceeding, we described 

our preliminary views concerning our 2005 

goals, objectives and strategies. We reported on the progress of the program as 

a whole and each program individually in 

achieving the requirements set out in the 

Act. We described our preliminary views 

on changes to our program 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 September 

14, 2005 for stakeholders to provide comments to the Commission, and one on October 20, with nationally recognized experts in the efficiency field to examine 

what 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 minor 

changes 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 lighting 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 program 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 

 19 
Instead, we directed staff to initiate a formal, independently conducted evaluation 

of the program to investigate whether 

there are ways to improve the method of 

delivery, 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. Some 

other comments encouraged the Commission to increase Program staffing levels 

and to develop closer ties to participating 

consumers. 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 current statute. 

Three new programs were suggested by 

stakeholders; 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 by 

homeowners, 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 this nature at this 

time. We have instead directed program 

staff to explore granting 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 adequate funding to implement the pilot. 

We do believe we can incorporate some of 

the suggestions made for other new programs into the structure of existing programs. For example, our High Performance Schools Program (essentially a new 

commercial building program) will focus 

more effort on improving new building design practice. Equipment installed in new 

commercial buildings can qualify for the 

current business program incentive structure, and the next time we solicit implementation bids for the program, we will include a new construction component in the 

request. We will promote efficiency in existing residential buildings 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 consumer 

demand for more efficient homes by continuing our general promotions of energy 

efficiency and by working with the Maine 

State Housing Authority to train and certify 

residential energy auditors. 

 20 
Since May of 2002, the Maine Public Utilities Commission (PUC) has planned, initiated, and implemented energy efficiency programs. This is a unique role among PUCs 

in that only in Maine does the Public Utilities Commission perform this function. The 

Commission’s implementation of the Efficiency Maine conservation programs has successfully met all statutory requirements including those for program cost effectiveness. 

The costs of efficiency investment are outweighed 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 investment in energy efficiency we have 

been able to stimulate has increased more. The figure below shows steady gains in 

energy efficiency achieved for each year 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 income efforts and 20% on small business. 

Program energy savings have outpaced the projections made during the Commission’s 

proceeding (Docket No. 2002-162) to initiate the programs. After three years, the program’s cumulative energy savings are nearly 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'05

MWH

State Buildings

BOC

Residential Lighting

Business Program

New Schools

 21 
Our projected revenues and the amount of these revenues we expect will be spent in 

each program area are presented below. The projected revenues displayed in this figure are based on the most recent data available from each of the utilities. Utility revenues in turn are based on projected sales levels 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 important to note that the 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 programs such as OEIS’ Home 

Performance program or the “Save A Watt 10% Challenge” may require the Commission to reallocate expenditures. 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 2009

Millions

Market Research

Administration

Education

Public Facilities

C&I

Small Business

Residential

Low Income

 22 
Efficiency Maine is a statewide effort to promote the more efficient use of electricity, 

help Maine residents and businesses reduce energy costs, and improve Maine’s 

environment. Efficiency Maine is funded by electricity 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 State 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.