Title ABC

1
Comments on New England Regional State
Committee Presented to MA Restructuring
Roundtable By Susan Coakley Northeast Energy
Efficiency Partnerships, Inc. June 18, 2004
Comments represent views of NEEP Staff, not
necessarily of NEEP Board Members, Funders or
Initiative Sponsors.
2
RSC-NE Is Good News for Energy Efficiency

• Broad Public Policy Perspective
• High level forum to address regional policy
  issues
• Balance state and regional concerns
• Broad perspective that considers multiple public
  policy goals environmental, economic, fuel
  diversity and end-use energy efficiency
• Regional Resource and Demand-Side Planning
• Provides for regional consideration of a energy
  efficiency as part a resource portfolio to
  address system reliability and capacity needs
• Market Structure and Pricing Barriers
• Forum to address regional transmission pricing
  and cost allocation issues in a manner that
  promotes cost-effective end-use energy efficiency
• Forum to propose market structures to capture
  additional energy efficiency resources

3
Four Problems for RCS-NE to Fix

• Increased energy efficiency not included as part
  of a cost-effective risk mitigation strategy to
  meet system reliability needs.
• Increased energy efficiency not considered as
  part of solutions in system expansion planning
  (except as an interim emergency measure).
• Energy efficiency not afforded same cost recovery
  treatment as supply options to meet reliability
  and system needs (SW CT an exception new
  precedent?).
• No consistent or systematic capability to assess
  energy efficiency or demand-side resources
  retrospectively or prospectively.

4
Recommendations for the RCS-NE Agenda

• Regionally plan for and assess the potential for
  demand-side sources to address power system
  reliability and capacity needs.
• Use risk mitigation analysis to assess the role
  of energy efficiency as part of a cost-effective
  resource portfolio that meets a range of public
  policy objectives.
• Recommend market rules and structures that allow
  energy efficiency and demand-side resources to
  participate in market-based solicitations to meet
  power systems needs.

5
Recommendations for the RSC-NE Agenda

• Recommend to New England states policies that can
  increase energy efficiency to address efficient
  reliability goals (codes, standards, targeted
  efficiency).
• Develop regional protocols to consistently assess
  energy efficiency saving opportunities and
  impacts.
• Recommend pricing policies that provide price
  signals to increase customer investments in
  energy efficiency (LMP).
• Recommend cost allocation policies that afford
  the same treatment for demand-side and
  supply-side resources.
• Provide for public input.

6
For more information

• Northeast Energy Efficiency Partnerships, Inc.
• 5 Militia Drive
• Lexington, Massachusetts 02421
• 781-860-9177
• Scoakley_at_neep.org
• www.NEEP.org