LIPA to Launch One of Nation’s Most Ambitious Energy Efficiency Programs
10-year Program Will Sharply Reduce Peak Demand and Postpone Need to
Construct New Power Plant
Uniondale, NY – May 8, 2008 – In an effort to reduce energy costs
while keeping up with Long Island’s growing energy demands, Long Island Power
Authority (LIPA) President and CEO Kevin S. Law recently announced the
Authority’s new Efficiency Long Island program.
The 10-year, $924 million program kicks off on January 1, 2009 and will offer
residential and business customers an array of programs to help reduce their
energy usage resulting in savings on future bills and achieving significant
environmental benefits.
Efficiency Long Island is expected to reduce peak electric demand by 500
Megawatts (MW) by 2018. Such a reduction will result in the deferral or
elimination of the equivalent of one large or two medium-sized power plants from
LIPA’s capacity expansion plan and avoid high-cost, on-peak energy production
equivalent to saving 2.2 million barrels of oil.
This new program succeeds and expands on LIPA’s clean energy initiative
offering more programs while continuing to promote clean, renewable electric
generation technologies and energy conservation and efficiency.
“Efficiency Long Island postpones the need to build additional generating
facilities and it also provides tools our customers can utilize to control their
own energy consumption, thereby lowering their monthly bills,” said LIPA
President and CEO Kevin S. Law. “It’s the cheapest, cleanest and fastest way to
meet Long Island’s energy needs while reducing global warming pollution,” said
Law.
Under the program, residential and commercial customers will have easy access
via the internet or telephone to enroll in the following five programs:
For Residential Customers
- Efficient Products – Purchases of lighting, appliances, consumer
electronics, in-wall air conditioners and dehumidifiers from retail outlets
- ENERGY STAR Labeled Homes – includes building shell upgrades, HVAC, hot
water, duct seals, lighting and high efficiency appliances
- Existing Homes – duct sealing and tune-ups for central air conditioners,
whole house retrofit assistance and installation services, Residential
Energy Affordability Program (REAP), and properly installed higher-than-code
efficiency central air and heat pump equipment
For Commercial Customers
- Commercial & Industrial (“C&I”) New Construction – targets all new
buildings and major renovations
- C&I Existing Buildings – addresses equipment purchases stemming from
natural replacement at the end of useful life and retro-fits (discretionary
replacement of functioning inefficient equipment)
LIPA has deemed the Efficiency Long Island program the most cost-effective
resource option currently available. It is estimated that implementation of
Efficiency Long Island will reduce CO2 emissions by about 12 million metric tons
compared to the CO2 emissions that would be produced from new power plants
burning natural gas. This is equivalent to removing 2.5 million cars from Long
Island roads.
A modest energy efficiency fee based on usage will appear on all customer
bills to pay for investment in the program and to offset LIPA’s lost revenues.
The fee will be implemented concurrently with a $28.6 million reduction in base
rates to remove the energy efficiency portion of budgeted expenditures under the
clean energy initiative. There will be separate recovery factors for residential
and small commercial customers and large commercial customers. Residential and
small commercial non-participant bill impacts are estimated at $40 per customer
per year, and the line will be separately displayed on bills bringing LIPA
in-line with private utilities regulated by the Public Service Commission which
imposes a System Benefit Charge for efficiency programs.
Participants in the efficiency program will see varying benefits depending on
their level of participation. A typical residential customer participating at a
moderate level – for example, replacing six incandescent bulbs with CFL’s,
getting a central air conditioning unit tune up and duct work sealed by a
participating contractor should recoup his or her investment in a few months and
save approximately $90 on the annual bill. A commercial business under rate code
281 using approximately 62,000 kWh per year ($11,200) that replaces lighting,
converts equipment to new ENERGY STAR equipment and installs some lighting and
cooling controls, should recoup the investment in less than two years and should
see an annual savings of approximately $2,500.
“NRDC [Natural Resources Defense Council] commends LIPA for its Efficiency
Long Island program – it will result in savings for Long Islanders and many
other benefits,” said Donna De Costanzo, Senior Attorney for the national
organization. “The Efficiency Long Island effort represents another strong step
towards meeting Long Island’s energy needs, as well as reducing greenhouse gas
emissions and other pollution, lowering consumer energy bills and increasing
energy independence. It marks a large step forward not only for environmental
benefits, but also for consumer benefits,” Ms. De Costanzo said.
“What LIPA is doing here is, in fact, building a five hundred ‘negawatt’
plant - negawatt with an ‘N’ because they are building efficiency into their
power,” said Gordian Raacke, Executive Director of Renewable Energy Long Island.
“It will be distributed all over the Island. It will never use a drop of fuel
oil or need natural gas. It will save carbon dioxide and greenhouse emissions
and most importantly, for most people it will save money.”
Energy efficiency programs were a significant recommendation in Governor
David A. Paterson’s Renewable Energy Task Force which released its first report
in February 2008. The New York State Public Service Commission is currently
considering mandating such programs on all utilities under its jurisdiction.
For more information on the Efficiency Long Island Program visit
www.lipower.org. |
