2004 Annual Report 

TABLE OF CONTENTS 

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

Impacts of 2004 Efficiency Programs ......................................................... 4 

Residential Lighting Program .................................................................... 5 

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

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

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

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

Energy Education Programs...................................................................... 17 

State Buildings Program ........................................................................... 19 

Efficiency Maine’s Revenue and Budget Projections...................................... 21 

Projected Program Expenditures ... ............................................................22 

Implementing the Conservation Act – Commission Activities ........................... 23 

 
1 

Introduction and Summary 

In our second full year of operation, Efficiency Maine has substantially increased the 

delivery of efficiency products and services to Maine consumers. Nearly three times as 

many low-income families benefited from program services as last year. Residential customers have doubled their participation in the efficient lighting program. Business program energy savings grew tremendously with the addition of a component for larger commercial customers. And our High Performance Schools program has become well established among the community of architects and engineers involved in school construction. 

There are now nine new school construction projects representing over $100 million in 

construction costs enrolled in the program. Altogether, Efficiency Maine achieved savings of 17,918 MWhs/yr for Maine consumers – more than triple the level of savings 

achieved the previous year through our interim programs. This level of energy savings is 

enough to provide electricity to approximately 2,800 Maine homes. The environmental 

benefits of the energy savings are also quite substantial. When electricity is used more 

efficiently, fewer kilowatt-hours are used to accomplish the same tasks, so the combustion of fossil fuels is reduced. This past year’s program has reduced air emissions substantially. More than 96,000 pounds of Sulphur Dioxide (SO2), 33,000 pounds of Nitrogen 

Oxides (NOx), and 13,700 tons of Carbon Dioxide (CO2) of annual emissions are avoided 

from these programs. This is the equivalent of taking nearly 8,700 automobiles off the 

road. 

This second annual report fulfills the requirement for the Maine Public Utilities 

Commission under Title 35-A section 3211-A (“Conservation Act”) to submit an annual report to the Legislature’s joint standing committee having jurisdiction over utilities and energy matters. Charged by the legislature to plan and implement energy conservation 

programs in 2002, the Commission created “Efficiency Maine” as its brand name for a 

portfolio of energy efficiency programs designed to respond to the goals of the legislation. 

This report describes Efficiency Maine’s activities during the past year pursuant to the requirements of the Conservation Act. It provides an overview of the actions taken in response to the directives of the Act, and describes how we have attempted to accommodate the Act’s less quantifiable guidelines. 

 

The Act directs the Commission to develop and implement cost effective conservation programs consistent with an overall strategy developed by the Commission. We are 

broadly required to consider programs that increase consumer awareness of energy conservation, create more favorable market conditions for efficiency, and promote sustainable economic development and reduced environmental damage. The Act sets forth 

other directives on the allocation of funds among programs, consideration of public input, 

contracting of service providers, evaluation of programs, distribution of services, and 

overall program funding level. Last year’s annual report discussed the “interim” conservation programs implemented at the direction of the Legislature to avoid delays in the provision of efficiency programs. Those interim programs were not required to satisfy all requirements of the Conservation Act and by December 31, 2003 were replaced with ongoing programs that did fully comply. The transition from interim to ongoing program operation has gone smoothly, requiring only minor changes to the interim programs. 
Since last year, the contracts for the residential lighting and business program implementation services were competitively re-bid and new contractors have been secured to 

continue the program services. The residential lighting program’s performance has improved over the interim program through the use of limited promotional activities. We renegotiated the memorandum of understanding guiding the operation of the low income program between the Commission and the Maine State Housing Authority to include improved 

program features, and an increased number of customers have been served. We simplified 

our commercial programs to reduce customer confusion; during the “interim” phase of 

these programs, “commercial” program offerings included a “small business program,” a 

“Commercial and Industrial program,” and an “Existing School Efficiency Program.” Under 

the new, ongoing “Efficiency Maine Business Program,” these niche markets continue to be 

served under a single umbrella which has also been extended to cover farms, non-profit 

agencies, local and county governments, water and wastewater facilities, and quasigovernmental organizations. The Efficiency Maine High Performance schools program has 

gained momentum. There are now nine new school projects in the design and development 

stages , and one school has received an incentive award for the installation of more energy 

efficient equipment. 

Our collaboration with other State agencies continues. The Commission and the 

Maine Department of Transportation are exploring the possibility of replicating last year’s 

successful traffic signal replacement program with a cross walk signal replacement program. Efficiency Maine is working with the Maine Bureau of General Services and the 

Maine Department of Education to develop BGS Rule Chapter 60, “Improvement of Energy 

Efficiency in State Buildings,” to implement the “ASHRAE plus 20%” law. Efficiency Maine, 

the Maine Bureau of General Services, the Attorney General’s office, the Director of Energy 

Independence and Security, the University of Maine System, and other state agencies are 

developing standard form contracts and bid packages for the implementation of 3rd party financed energy performance contracts in State buildings. Efficiency Maine staff have continued to work with the Maine Department of Environmental Protection (MDEP) in its “Step 

Up” program and in assisting the development of the Department’s greenhouse gas action 

plan. And MDEP, through the State Energy Program, recently won a $96,853 grant from 

the United States Department of Energy (US DOE) for the incremental cost of three natural 

gas fueled school buses for the City of Portland's Public School system. Finally, Efficiency 

Maine staff working with the Maine Department of Agriculture, have secured a grant from 

the United States Department of Agriculture to improve energy efficiency in Maine’s dairy 

farms. 

 Last year’s transfer of the State Energy Program from the Maine Department of Economic and Community Development to the Maine PUC has allowed better integration of 

federally funded projects and state efforts. Expertise from State Energy Program personnel 

complement that of Efficiency Maine staff and their contractors. United States Department 

of Energy funding has supplemented Efficiency Maine projects in a number of areas, and 

both programs have benefited. 

• The US DOE Rebuild America program assists the Maine High Performance schools 

program by funding a “circuit rider” for the Maine School Management Agency, and 

also by helping to centralize the energy manager function at the University of Maine 

system. 

2 
• The State Energy Program has obtained funding from US DOE’s Rebuild America 

program to provide training for architects and engineers in the use of a high performance handbook being developed to assist BGS in its implementation of its Chapter 

60 rule.

• The State Energy Program’s free energy audits for small businesses often lead customers to the Efficiency Maine programs, where they can act on recommendations 

made in the audit. 

• The State Energy Program Low Interest Loan program is complemented by incentives available through Efficiency Maine. 

• Together, the State Energy Program and Efficiency Maine have teamed up to roll out 

Maine’s “Clean Energy Campaign,” a joint effort to promote increasing purchases of 

electricity generated from renewable energy generators, especially those based in 

Maine. 

Efficiency Maine continues to benefit from networking with similar organizations in 

New England and across the nation. This year, Efficiency Maine is participating in several 

initiatives coordinated by the Northeast Energy Efficiency Partnerships (NEEP). NEEP is 

providing support and information to assist the Commission in its development of residential 

and commercial building energy codes and is also offering the NEEP Building Operator Certification (BOC) course to Maine building operators. Through our partnership in NEEP, we 

are involved in a region-wide quality control project for energy efficient lights that are promoted in our programs. Efficiency Maine staff members are engaged in a variety of NEEP 

sponsored regional work groups and the program director now serves on the NEEP Board 

of Directors. Our membership in the Consortium for Energy Efficiency (CEE) allows us to 

compare our programs to others across the country. Through the Consortium meetings, we 

have examined the latest advances in energy efficient products and explored ways to accelerate the market adoption of higher efficiency products. 

The table at right provides an overview of Efficiency Maine programs. The estimated 

energy savings are based on the latest information available. The “Program Costs” are the 

actual program expenditures from October 1, 2003 through September 30, 2004. Program 

benefits are energy costs avoided by program measures over their installed lives. Section 2 

of this report provides a more in-depth description of the operation and achievements of 

each program. Section 3 gives projected revenues for future years, along with our expectations for how the program expenditures will match projected revenues. 

3 
* Includes total program data(’03 and ’04) 

** Data from first participant school only 

*** Includes personal services, training, travel, sponsorships e.t.cl 

Impacts of 2004 Efficiency Programs 

4 

Program Energy 

Savings 

(MWh/yr) 

2004 

Program 

Costs 

Lifetime 

Benefits of 

2004 

Measures 

B/C 

Ratio 

Emission 

Reductions 

Low Income 

Appliance 

Replacement 

1,396 $1,100,000 $1,270,850 1.16 976 tons CO2 

6,840 lbs. SO2 

2,373 lbs. NOx 

Residential 

Lighting 

4,184 $921,407 $1,863,448 2.02 2,916 tons CO2 

20,502 lbs. SO2

7,113 lbs. NOx 

Business 9,221 $3,294,150 $7,554,431 2.29 6,427 tons CO2 

45,183 lbs. SO2

15,676 lbs. NOx 

Building 

Operator 

Certification* 

1,750 $294,400 $1,698,323 5.8 2,440 tons CO2 

17,150 lbs. SO2

5,950 lbs. NOx 

High 

Performance 

Schools** 

67 $230,780 $112,624 .49 47 tons CO2 

328 lbs. SO2

114 lbs. NOx 

State 

Buildings 

1,300 $368,939 $358,381 .97 906 tons CO2 

6,370 lbs. SO2

2,210 lbs. NOx 

Energy 

Education 

Programs 

NA $32,464 

Conservation 

Program 

Administrative 

Account*** 

NA $511,012 

Total 17,918 $6,753,152 $12,858,057 1.9 13,712 tons CO2 

96,373 lbs. SO2

33,436 lbs. NOx 
Residential Lighting Program

5 

Residential Lighting Program 

Benefits and Costs

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

$2,000,000

Benefits Costs

O&M Savings 

Generation Savings 

Other Program Costs

Participant Costs 

Program Incentives

T&D Savings 

Efficiency Maine launched an “ENERGY 

STAR®”” Residential Lighting Program in 

February 2003. ENERGY STAR ® is a 

combined United States Department of 

Energy (US DOE) and United States Environmental Protection Agency (US EPA) 

effort to raise consumer consciousness of 

environmentally beneficial products. The 

ultimate goal of the program is to create a 

self-sustaining, consumer market for efficient lighting in Maine. The goal will be 

achieved by increasing the sale of efficient lighting, consumer awareness of efficient lighting, and the availability of efficient lighting products. The program is coordinated with the US EPA’s effort to promote its ENERGY STAR® brand of efficient products. 

Lighting accounts for 10-15% of total 

household electricity use with most 

households spending about $110 per 

year on energy for lighting. By choosing 

ENERGY STAR® labeled products, consumers can reduce electricity bills and improve the environment. In the case of 

lighting, ENERGY STAR® labeled compact fluorescent lamps (CFLs) are four 

times more efficient at converting electricity to light than incandescent bulbs. Thus, 

they use fewer watts to produce the same 

amount of light. For example, a 27-watt 

CFL actually provides more light than a 

100-watt incandescent bulb. CFLs also 

last up to ten times longer and produce 

90% less heat than conventional bulbs. 

Over the course of the year, the program 

transitioned from an “interim” to a “full 

scale” program. The number of efficient 

products purchased has increased over 

the “interim” program as our promotional 

efforts have increased. The program has 

run promotional spots on radio. Print advertisements and news releases have 

been placed in home improvement sections 

of newspapers . Efficiency Maine has participated in the Bangor and Lewiston/Auburn 

home shows, and has partnered with fixture 

manufacturers to supply lighting for two 

Habitat for Humanity homes within the 

State. The program has added 22 additional retail partners including 5 lighting 

showrooms, bringing the total number of 

partners up to 164. 

The promotions seem to be working. More 

than twice as many efficient lighting products were sold through the program this 

year compared to the same period last year. 

The 62,000 CFLs sold through the program 

will save 4,200 MWh per year each year of 

their seven year lives. Maine homeowners 

will save about $502,000 per year in energy 

costs. Program benefits exceed costs by 

more than 2 to 1. Environmental benefits 

are the avoidance of 2,916 tons of CO2 

emissions and 20,502 and 7,113 pounds of 

SO2 and NOx respectively. 
6 

Electrician Dave Gerrish donates his time installing ENERGY STAR® lighting at Habitat for Humanity’s Naples, Maine project 

"This lighting efficiency campaign 

is a great way to get Mainers thinking about ways to conserve energy, 

save money and help the environment.” 

Robert W. Varney 

Region 1 Administrator, U.S. EPA 
Low Income Appliance Replacement Program 

Efficiency Maine’s Low Income Appliance 

Replacement program is a collaborative 

effort involving Efficiency Maine, the 

Maine State Housing Authority (MSHA), 

and the state’s Community Action Programs (CAPs) to reduce low income consumer electric bills through energy efficiency. The program helps to replace inefficient refrigerators and install 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. Programs for 

these customers are important because, 

even though their electricity use per 

household may be lower than other customers’, their energy costs consume a 

greater percent of their incomes. 

Efficiency Maine minimizes administrative 

costs by working with MSHA and the 

CAPs to supplement an existing federal 

program. The federal program administered by MSHA and delivered by the 

CAPs provides energy audits and weatherization services to qualified customers. 

The mechanism that allows Efficiency 

Maine to supplement these efforts is a 

memorandum of understanding (MOU) 

with MSHA under which CAP energy 

auditors arrange for the replacement of 

refrigerators when the estimated energy 

savings are 750 or more kWh per year. 

The auditors also install energy efficient 

compact fluorescent lamps (CFLs) in locations where they will provide the greatest energy savings. 

In the past year, Maine’s CAPs have delivered over 7701 refrigerators and

more than 6,000 CFLs to low income customers, who will save an average of $220 

per year on their electricity bills. Altogether, 

the refrigerators and efficient lights should 

save about 1,400 MWh per year. The program is cost effective with a benefit to cost 

ratio of 1.16 to 1. Program environmental 

benefits are the avoidance of 976 tons of 

CO2 and 6,840 and 2,373 pounds of SO2 

and NOx respectively. While the program is 

working well, Efficiency Maine and MSHA 

are exploring further improvements to the 

program that will simplify the customer 

qualification requirements, increase the 

number of replacements that can be delivered, and allow for the program to reach 

more than 1,000 households in the next 

year. 

7 

1

Reported refrigerator replacement activity from 

October 2003 through September 2004 

Low Income Appliance 

Replacement 

Benefits and Costs

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

Benefits Costs

Generation Savings 

T&D Savings Incentive Costs
Community Action Agencies in all of Maine’s 16 

counties have replaced a 

total of 770 refrigerators 

and more than 6,000 efficient lights in lowincome customers’ 

homes. 

“Living on a fixed income, 

anything that can help lower 

my monthly 

bills is appreciated.” 

8 
The Efficiency Maine Business Program was 

established in July 2004 when three Efficiency Maine programs - the Small Business 

Program, the Commercial & Industrial Program, and the Existing Schools Program - 

merged. Each of the three programs was established on an interim basis during 2003 to 

provide information on energy efficient equipment and practices and to make cash incentives for energy efficient equipment available 

as quickly as possible. By analyzing the interim program results, Efficiency Maine staff 

was able to determine what mix of services 

and incentives would work best for Maine 

small and large businesses, farmers, K-12 

schools, nonprofit organizations, local and 

county governments, and water and wastewater facilities. 

Efficiency Maine launched the combined Business Program on September 1, 2004. Small 

business customers receive support tailored to 

their needs, as do private and public K-12 

schools undertaking projects on existing 

school buildings. 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. This new program 

structure allows Efficiency Maine and its contractors to funnel customers into the appropriate parts of the program rather than overwhelming them with too many choices and application forms. 

Under the new Business Program all businesses are eligible for up to $50,000 in incentives in a calendar year regardless of their 

size. In addition, a list of pre-established 

cash incentives for qualified high efficiency 

equipment is offered, including a select group 

of incentives available to kindergarten through 

twelfth grade schools and small businesses 

only. 

Program allies have contributed to the 

success of the interim programs and will 

be vital to the success of the new Business Program. These Allies, totaling 

225 by the end of September 2004, are 

the manufacturers, wholesalers, retailers, and contractors that work with Efficiency Maine to promote, install and service energy efficient equipment. Additionally, all of the Home Depot locations 

in Maine worked with our field staff to 

coordinate an information program 

through their Pro-Desk, the first project 

of this kind for this retailer anywhere in 

the country. As the primary delivery 

channel for energy using equipment, the 

Program Allies are an important part of 

the program’s market transformation effort. Efficiency Maine incentives, in turn, 

are an invaluable tool to getting the customer’s attention for the Allies. 

During the past year, training programs 

were offered on several campuses of 

the community college system statewide 

to educate the Program Allies and their 

clients further. This fall, an additional 

series of Program Ally Appreciation Dinners are being held at various campuses to introduce Program Allies to the 

new features of the Business Program, 

while thanking them for their support. 

Program field staff and program managers have been active in attending trade 

shows, trade meetings, business association functions, and in serving as 

speakers at numerous statewide events. 

Continual outreach with key business 

and trade associations has been an important component in building the credibility and reputation of Efficiency Maine 

programs. 

Our communications plan includes 

monthly e-mail newsletters to Program 

Allies and a printed newsletter. 

Business Program

9 
10 

The quarterly newsletter highlights projects, Program Allies, and technical information and is sent to a statewide list of 

businesses, associations, as well as to 

Program Participants and Program Allies. 

Public relations efforts spotlight energy 

efficient practices used by program participants throughout the state in both 

statewide and local newspapers and on 

major Maine television programs. 

The Efficiency Maine Web Site provides 

paperless access to the pre-established 

incentive list, applications, and technical 

resources as well as a searchable database of Program Allies available throughout the state. The Geographic Information System (GIS) linked database allows 

customers to easily locate Program Allies 

whose businesses are within a prescribed 

radius of their location. 

Altogether, the various components of the 

Business Program are cost effective. 

Between October 1, 2003 and September 

30, 2004, the various components of the 

Business Program provided financial incentives to three hundred small businesses and twenty-eight large businesses. 

Small Business 

Customers who participated in the small 

business program were involved in projects that resulted in electricity savings of 

over 7,000 MWhs per year. This level of 

savings translates to $953,000 per year in 

cost reductions. The benefit to cost ratio 

of this program component is 2.36. 

Large Business 

Customers who participated in the large 

business program participated in projects 

that together resulted in electricity savings 

of over 1,800 MWhs per year. These energy 

savings translate to over $144,000 per year in 

reduced operating costs. The benefit to cost 

ratio of this program component is 2.11. 

The program as a whole has delivered 9,200 

MWhs per year the equivalent of an annual 

operating cost reduction of over $1,100,000 

per year. Over their lives, these measures 

will save their owners $15,600,000 in energy 

cost. The benefit to cost ratio of the program 

based on current data is 2.29. Environmental 

benefits include the annual avoidance of 

6,427 tons of CO2 emissions, and 45,183 and 

15,676 pounds of SO2 and NOx respectively. 

Efficiency Maine will continue to fine tune this 

program in the year ahead. Training sessions 

on specific energy efficiency opportunities will 

be offered to the allies. New allies and partners will be recruited, and more businesses 

will have an opportunity to participate. 

Business Program 

Benefits and Costs

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

Benefits Costs

Generation Savings Other Costs

Participant Costs 

Incentive Costs

T&D Savings 
Irving Tanning’s bright future is echoed in its recent 

major re-lighting project

“As soon as we started the 

lighting project, we began to 

see immediate savings reflected in each bill.” 

Chuck Hojohn, Facilities Manager at Irving Tanning

Irving Tanning 

Three years ago, Irving Tanning Company in Hartland filed for Chapter 11 

bankruptcy protection. Today, the company is on solid financial ground and an 

indication of its bright future is its recently 

completed major relighting project. 

Trask-Decrow Sales Manager Greg Scott, P.E

“It’s our business to know 

what efficiency programs 

are being offered, so we can 

make sure eligible customers benefit from those programs. For us, it’s just a 

part of doing the job right 

for the customer.”

Trask-Decrow Machinery

Trask-Decrow Machinery, located in South 

Portland, sells pumps, compressors, and vacuum pumps. This company has been an active Program Ally and has helped a number of 

companies across the state complete efficiency projects involving variable speed air 

compressors. Trenton Bridge Lobster Pound, 

Parker Lumber, Northeast Packaging, AC 

Electric Corporation, L. L. Bean and Plas-Tech, 

Inc. all installed variable speed air compressors and received Efficiency Maine incentives.

11 
Taylor Farms When Burt Taylor of Taylor 

Farms in St. Albans decided he needed to 

put fans in one of his dairy barns, he installed nine Big Ass Fans®, instead of 117 

traditional sized fans. Big Ass Fans® combine size and economy to move air more 

evenly and at a much lower cost. Added 

benefits include reduced maintenance cost, 

longer lives, and quieter operation.

Burt Taylor receives his incentive check for his 

fan project from program manager Linda Viens

“The fans circulate air 

more evenly so the cows 

don’t bunch up which 

can interfere with milk 

production” 

Paul Brooks, Paris Farmer’s Union

12 
Building Operator Certification Program 

Efficiency Maine’s Building Operator Certification (BOC) program is provided in cooperation with the Northeast Energy Efficiency 

Partnerships (NEEP). Electricity use in commercial and government buildings can be reduced by 15% or more if building operators 

manage and maintain their structures and 

building systems more effectively. The BOC 

program is an eight day course offered over 

an eight month period that provides building 

operation and maintenance staff the training 

they need to improve energy efficiency and 

reduce maintenance costs in existing buildings. Instructors are practitioners who draw 

from their own experience to provide practical advice to students. The course also provides valuable information on non-energy issues such as indoor air quality. The BOC 

course complements other Efficiency Maine 

programs by making students aware of other 

program offerings or by training them on how 

to care for systems installed through the 

High Performance Schools program. 

BOC primarily serves public school systems 

but two sessions have also included operators of State buildings. In addition, building 

operators from the University of New England, Maine State Housing Authority, and 

Colby College have also participated. To reduce municipal energy costs, tuition has not 

been charged for schools. By targeting the 

operators of State buildings, Efficiency 

Maine hopes to cut costs in the State’s 

budget. 

Seven BOC courses have been provided 

across the State in Portland, Bangor, 

Presque Isle/Houlton, Calais, York, Augusta, 

and Auburn. The Auburn course is currently 

in session and will be completed in March 

2005. 

A survey of those who have taken the 

course indicates that 84% have improved 

the comfort or productivity of their building’s occupants or reduced energy costs 

from what they learned through the 

course. Facilities run by these individuals are expected to save 1,750 MWh per 

year and avoid 2,440 tons of CO2 and 

17,150 and 5,950 pounds of SO2 and 

NOx respectively. Because the course 

appears to be cost effective, Efficiency 

Maine will continue the BOC program as 

part of the long-term Program Plan. Efficiency Maine will provide a second, 

higher level BOC Level II course during 

2005, and will explore offering the course 

to private sector companies for a fee. 

13 

Building Operator Program

Benefits and Costs

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

Benefits Costs

O&M Savings 

Generation Savings 

Participant Costs 

T&D Savings Incentive Costs
14 

"I'm surprised at how 

much I've learned. We're 

building a new school...

and we can use this information." 

Alvin Milner, Lincolnville Central School
Efficiency Maine’s High Performance 

Schools Program was created to capture 

the opportunities for efficiency gains that 

occur in the construction of new schools. 

Five to ten new public schools are built in 

Maine each year. Since the buildings will 

last 50 years, building them to high standards of energy efficiency can avoid many 

years of higher than necessary operating 

costs. Through better design and construction practices, schools can reduce 

their annual operating costs by up to 

twenty-five percent. Because funding is 

limited, 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’s goals are to reduce 

energy consumption, and to lower operation and maintenance costs, by providing 

financial and technical assistance to new 

schools. Thus encouraging them to pursue better designs and to 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 State Energy Program and the United 

States Department of Energy are also involved with a grant to help MSMA promote 

the program. The partnership ensures that 

program grants are an integral part of the 

process that leads to new schools being 

built in the State. 

Seventeen schools are involved in the 

program. One, the Congin School in 

Westbrook, has completed its project. 

The school first received a grant for design assistance, then after review of its 

more efficient design, the school qualified 

for a grant to install more efficient equipment. When the project was finished, 

Efficiency Maine sent a check of $64,000 

based on the value of the energy savings. Two other facilities are close to 

completion of their projects and a third 

has recently begun its design work. 

The projects reviewed so far will result in 

67 MWh/yr of energy savings that will reduce annual operating costs by $9,195 

per year. This program’s benefits do not 

yet exceed its costs. Our expectation is 

that future projects will improve the cost 

effectiveness of this unique program. 

The Congin School annually avoids 47 

tons of CO2 and 328 and 114 pounds of 

SO2 and NOx respectively. Last year’s 

legislation mandating that publicly financed buildings perform 20% better 

than required by commercial energy 

codes will require program design 

changes. The Commission will initiate a 

proceeding to seek stakeholder input on 

the future of this program. 

Maine High Performance Schools Program 

15 

High Performance Schools 

Program 

Benefits and Costs

$0

$50,000

$100,000

$150,000

$200,000

$250,000

Benefits Costs

Generation Savings 

Participant Costs 

Incentive Costs T&D Savings 

Gas Savings 
16 

“Prior to this (Program) 

there was no incentive for a 

School Department to build 

beyond code specifications” 

Michael Kane Assistant Superintendent of Schools 

Westbrook

This panel reflects daylight onto the ceiling reducing the amount of artificial lighting needed

High efficiency HVAC equipment installed in Congin 
 Energy Education Programs 

There are two energy education programs operating in Maine. The Maine 

Energy Education Program (MEEP) provides education on energy issues to kindergarten through twelfth grade students in Central and Southern Maine, 

while a second program operated by 

Maine Public Service Company offers 

educational programs in Northern 

Maine. Both programs strive to increase consumer knowledge of energy 

efficiency - a fundamental market barrier to economically efficient behavior. 

The programs provide school children 

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 and energy use habits. 

The MEEP program combines general 

awareness classroom training activities 

with practical skills that allow students 

to monitor their school building’s energy 

use. An important program component 

is the recruitment of student volunteers 

to serve as school “Energy Patrols.” 

The patrols consist of 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 gathered data showing 

that the schools with active Energy Patrols have reduced their energy consumption. Between January and June 

of 2004, MEEP provided classroom 

training and developed Energy Patrols 

in 22 schools across the State. 

Maine Public Service’s Energy Education Program dates back to the 1970s. 

The program has changed to reflect 

modern energy issues, and now includes two components. 

The Energy Eagle Patrol is a team of 

students who raise the awareness of 

energy issues within the schools 

through the distribution of materials 

and by 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. One 

Energy Eagle Patrol team was established in each of the following 

schools: Fort Street School in Mars 

Hill; Pine Street School; Patrick Therriault School; and Zippel School. The 

schools saved approximately $2,000. 

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. 

From October 2003 to October 2004, 

Maine Public has conducted 59 educational presentations and reached 

over 1,139 students. 

Consumer education is an integral 

part of market transformation. Both 

of these programs will be continued 

as part of Efficiency Maine’s ongoing 

education efforts. Efficiency Maine 

will explore expansion of that effort 

through implementation of the recommendations found in the Maine Math 

and Science Alliance report in the 

Commission’s Program Planning proceeding. 

17 
18 

"This is so cool! We'll 

have to do this activity 

in our classroom." 

Kaydie, 5th grade student from South 

Bristol School 
The Maine Public Utilities Commission 

and the Maine Department of Administrative and Financial Services (DAFS) continue to improve the efficiency of state 

buildings through a Memorandum Of Understanding (MOU) developed in 2003. 

The goal is to reduce the cost of state 

government by improving the energy efficiency of state buildings. The Commission and DAFS have directly funded efficiency improvements in 17 state owned 

buildings. An energy survey of all state 

buildings has identified additional opportunities in other facilities that may be candidates for third party financing, and a pilot project with the Department of Corrections is underway. 

Over the past year, the program has 

helped fund major renovations to the 

Baxter School for the Deaf on Mackworth 

Island in Casco Bay. The renovations 

will save 95,000 kWhs per year and 953 

gallons of oil. Through these efficiency 

improvements, the school was the first 

state building to attain LEED certification. 

Improvements to lighting in 16 other 

buildings will result in an additional 1.2 

million kWh of energy savings. The Department of Human Services Health Engineering and Testing Laboratory (HETL) 

building has also been identified as eligible for funding under this program. 

DAFS and the Commission continue to 

work towards implementation of the identified measures. 

An energy survey of 320 other state 

buildings indicates there may be up to 83 

additional buildings with energy investment opportunities of approximately $ 7 

million having less than a ten year pay 

back. A multi-agency task force is attempting to implement some of the audit 

recommendations through performance contracting. The agencies are conducting a 

pilot project to develop an investment grade 

energy audit and performance contract for 

the Department of Corrections’ Warren facility. While the pilot project is conducted, the 

agencies will refine the list of other buildings 

that would be suitable for this activity. 

Renovations to buildings treated so far will 

save an estimated 1.3 million kWh per year. 

Program cost effectiveness is slightly less 

than one but it is expected to exceed one after the third party performance contracts are 

in place. Annual air emissions avoided from 

the energy savings are approximately 906 

tons of CO2 and 6,370 and 2,100 pounds of 

SO2 and NOx respectively. The MOU to 

continue this program for an additional year 

is being developed by the agencies involved. 

State Buildings Program

19 

State Buildings Program

 Benefits and Costs

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

Benefits Costs

Generation Savings 

T&D Savings Incentive Costs
Efficiency Maine’s Partnerships 

The Conservation Act directs the Commission to use methods beyond just efficiency “programs” to promote energy efficiency within the State. Broadly speaking, the Commission must “increase consumer awareness of cost effective options for conserving energy,” and “create 

more favorable market conditions for the 

increased use of efficient products and 

services.” Specifically, the Commission 

is to coordinate its efforts with other 

agencies of the State with energy related 

responsibilities, and to coordinate with 

other states and public agencies or other 

entities for joint or cooperative planning 

or program delivery. To this end, the 

Commission is working closely with a 

number of other State agencies. 

Commission staff are participating in the 

re-write of the Maine Department of Administrative Service’s Chapter 60 rule 

that establishes standards for energy efficiency in public buildings. Funding for 

this effort is coming from the Bureau of 

General Services and the Commission, 

but a major portion of the funding is being 

provided with a grant from the Henry P. 

Kendall Foundation and financial support 

for training on the new rule will be provided by the United States Department of 

Energy. 

Efficiency Maine and State Energy Program staff are assisting in the Office of 

Energy Independence and Security’s 

“Keep ME Warm” campaign to weatherize low income homes in the face of expected record heating oil prices and in 

advance of the coming heating season. 

Continued efforts with the Maine Department of Environmental Protection include 

joint support of the Maine Energy Education Project energy education program, 

the greenhouse gas reduction action 

plan, and helping to roll out the Governor’s Carbon Challenge program. 

The Efficiency Maine program is making 

inroads with Maine’s Department of Agriculture by helping to pursue federal funding for energy projects at Maine dairy 

farms. The program is working with Paris 

Farmers Union to introduce new technologies to farmers, and is helping to pay 

for the equipment by matching US Department of Agriculture grants with funding from the conservation program fund. 

The Commission is “increasing consumer 

awareness,” and “creating more favorable market conditions,” through a number of educational efforts. Together with 

the Maine Indoor Air Quality Council, it is 

jointly sponsoring a conference on commercial building commissioning. Next 

spring, the Commission will develop a 

workshop on energy efficiency and indoor 

air quality with the Maine Chapter of 

ASHRAE. Throughout the year, the 

Commission will work with the US DOE 

and Maine’s Community College system 

to provide technical courses, workshops, 

and seminars in Maine on efficiency opportunities in such specialty areas as motors and their drive systems, compressed 

air systems, and in pumping and hydraulics. 

20 
Efficiency Maine’s Revenue and Budget Projections 

When the Maine Legislature directed the 

Commission to begin planning and implementing energy efficiency programs, it 

directed the Commission to fund programs through assessments on utilities. 

The Commission was directed to assess 

utilities at a level adequate to maintain 

the efficiency programs at historic levels 

so long as the assessment did not exceed $.0015 per kWh or fall below one 

half percent of transmission and distribution revenues. The assessment level 

was set at $.0015 per kWh after the 

Commission conducted evidentiary proceedings and concluded that the amount 

of achievable energy savings is much 

greater than the savings that could be attained at the $.0015 per kWh statutory 

maximum. In addition to funding new efficiency programs, money raised through 

the assessment was also to be used to 

pay off contractual obligations for efficiency programs entered into by Bangor 

Hydro-Electric and Central Maine Power 

Company. As these contractual obligations are retired, more of the conservation fund can be devoted to new programs without raising rates to increase 

the assessment. Although the assessment level is stable, the funding available 

for programs cannot be projected with 

certainty because it depends on the level 

of utility sales and on the pattern of payouts for the prior contracts. 

The five year projection of revenues provided in this report is based on the most 

recent data available from each of the 

utilities. Since Central Maine Power 

Company’s sales comprise 79% of the 

total state sales, the company’s latest 

load forecast is used to estimate total 

sales levels for the next five years. The 

assessment rates for each utility are 

applied to the sales data to develop an estimate of annual revenues and the estimated pattern of prior contract pay-outs is 

deducted from this to generate a five-year 

net revenue projection. 

The table and graph at right provide a description of the projected program expenditures for the next five years. The projections are developed by first directing 20% 

of the projected revenues towards both 

the low-income program(s) and the small 

business program. The remaining 60% of 

the program fund is divided among the 

other program areas according to our experience and our expectations for the 

coming years. The spending categories 

described in the table reflect program areas, but not specific programs. The Conservation Act requires that “[t]he Commission shall hold at least one public hearing 

and invite, accept, review and consider 

comments and suggestions from interested parties prior to adopting or substantially revising conservation programs.” 

Therefore the Commission will not officially announce any new programs or major changes in existing ones without first 

reaching out to stakeholders. But each of 

the categories listed in these tables could 

eventually include new programs. For example, the “small business” and 

“commercial industrial” categories might 

eventually include an auditing program 

similar to the one offered by the New York 

State Energy Research and Development 

Authority, a building commissioning program, or a new construction program. 

The “Low Income” program will not necessarily include only the current service being offered through MSHA, and “Education 

and Outreach” will certainly include more 

than the current BOC , MEEP, and Maine 

Public Service Company programs. 

21 
22 

Projected Program Expenditures 

Projected Five Year Programs Budget

$-

$2

$4

$6

$8

$10

$12

$14

$16

$18

2005 2006 2007 2008 2009

Market Research

Administration

Education & Outreach

Public Facilities

Commercial/Industrial

Small Business

Residential Lighting

Low Income

Program 

2005 2006 2007 2008 2009 

Low Income $1,961,500 $2,528,880 $2,709,763 $2,942,161 $3,056,384 

Residential Lighting $1,289,450 $1,600,000 $2,100,000 $2,050,000 $2,300,000 

Small Business $1,961,500 $2,528,880 $2,709,763 $2,942,161 $3,056,384 

Commercial&Industrial $2,047,290 $3,200,000 $3,250,000 $3,250,000 $4,000,000 

Public Facilities $1,640,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 

Education & Outreach $579,800 $600,000 $600,000 $600,000 $600,000 

Administration $932,700 $950,000 $960,000 $970,000 $1,060,000 

Market Research $171,900 $236,450 $220,000 $200,000 $200,000 

Total $10,584,140 $12,644,130 $13,549,527 $13,954,321 $15,272,269 
Implementing the Conservation Act – Commission Activities 

To implement the Conservation Act, the Commission has carried out a series of activities to 

establish goals, cost effectiveness criteria and definitions, to implement infrastructure, and to approve 

efficiency programs. Most of these activities were carried out through formal proceedings that included written comments, public hearings, and Commission decision-making deliberations. This section summarizes significant Commission proceedings that have concluded since our last annual report. 

 Transition from “interim” to “on-going programs” November 14, 2003 

The Conservation Act directed the Commission to begin program implementation activities 

immediately after passage of the Act. Such interim programs did not need to comply with all statutory criteria in the Act. These “interim” programs were required to terminate no later than December 

31, 2003. In this decision, the Commission reviewed and approved a staff proposal for short term 

contract extensions for contractors in the interim programs and for issuing new requests for proposals to implement the programs with all elements of statutory compliance contained in the RFPs. 

Docket No. 2002-161. 

 Administration and Structure of Commercial, Industrial, and Small Business 

 Programs March 23, 2004 

After issuing a Notice of Investigation for formal comments, the Commission approved a consolidation of the Small Business, Existing Schools, Commercial and Industrial and Agricultural 

“interim” programs. The consolidated program elements were incorporated into a Request for Proposals for program implementation activities, and a contractor was selected through a competitive 

bid process. Docket No. 2004-117 

 Investigation of the Administration of T&D Contracts Associated with Prior 

 Conservation Efforts May 11, 2004 

The Commission was directed by the Conservation Act to investigate utility administration of 

contracts for conservation services entered into prior to the passage of the Conservation Act. Upon 

review of the the current practices for administration of these contracts, the Commission concluded 

that it has adequate authority to ensure that funds expended on such contracts would be expended 

prudently. Docket No. 2003-544. 

 

 Procedures for Conservation Program Planning April 29, 2004 

The Conservation Act requires the Commission to decide whether to allow electric utilities to 

continue to provide conservation services. The Commission decision in Docket 2002-162 left open 

the issue of whether utilities should continue to operate their water heater wrap programs jointly. 

Central Maine Power requested Commission reconsideration of this issue. Based on information 

provided by the utility, the Commission allowed continued program implementation on a limited basis. 

 Docket No. 2002-161. 

 Investigation into the Conservation Fund Assessments of the COUs October 21, 2004 

 The Commission opened the investigation to examine whether consumer owned transmission and distribution utilities should pay conservation assessments at less than the rate set for investor owned utility customers. Because of their obvious differences from mainland utilities, Fox Island 

and Swan’s Island Electric Cooperatives were allowed to have a different assessment rate. Madison 

Electric Works assessment rate will depend on a technical evaluation of the efficiency potential in the 

Madison Paper mill. The Commission concluded that customers of all other COUs would be assessed at levels consistent with customers of IOUs. Docket No. 2003-348 
Investigation into and Possible Redesign of Investor-Owned T&D Utilities Rates 

 Related to Conservation Expenses. October 21, 2004 

 The Commission initiated this investigation to determine whether all customers were paying 

into the Conservation fund and if not, whether all should be allowed to participate equally in the conservation programs being offered through the Act. Except for two special contract customers, the 

Commission concluded that all customers are paying rates sufficient to cover both their transmission 

rates and the conservation assessment mil rate. The Commission further concluded that the special 

contract customers are eligible to participate fully in the conservation programs. Docket No. 2003-

516. 
This Report was published by the Maine Public Utilities Commission, 

Division of Energy Programs. This publication is printed under 

appropriation #014-65A-0966-01. 

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, contact: 

Denis Bergeron 

Director, Energy Programs Division 

Maine Public Utilities Commission 

(207) 287-1366 

www.efficiencymaine.com