Press Releases
10/29/2024
DEEP Launches Expanded Home Electric Efficiency and Affordability Procurement Draft Request for Proposals
DEEP Issues Draft Request for Proposals to Support Innovative New Approaches to Expand Eversource and UI Residents’ Access to Electric Energy Efficiency
(HARTFORD, CT) — The Connecticut Department of Energy and Environmental Protection (DEEP) announced today the launch of an Expanded Home Electric Efficiency and Affordability draft request for proposals (RFP) to deliver expanded electricity bill savings to residential customers of Eversource and United Illuminating. This RFP process will build on Connecticut’s existing, highly successful utility-run energy efficiency programs, which deliver hundreds of dollars in energy bill savings each year to thousands of participating households. DEEP is soliciting competitive proposals from companies, including electric utilities and other private entities, for cost-saving household electric energy efficiency measures. Among the types of responses DEEP is soliciting are performance contracting approaches that reduce the upfront costs of installing energy efficiency and lower monthly energy bills, while also providing additional opportunities for Connecticut’s energy efficiency workforce.
Electric efficiency is a powerful tool for lowering energy bills for both households and businesses and is among the lowest cost resources available to meet Connecticut’s growing energy needs. The aim of efficiency is to deliver the same or better energy services to customers while helping avoid the need to build costly new electric generation and distribution infrastructure that would otherwise be required to meet the needs of our electric grid, lowering the cost of electricity for all ratepayers in the state. Efficiency is also key to a clean electric grid because it reduces waste, avoids unnecessary infrastructure, and lowers reliance on imported, price-volatile fossil fuels.
“Energy efficiency is a critical pillar of our state’s energy strategy: it saves money on energy bills, lowers demand on our grid, and doesn’t pollute,” said Governor Ned Lamont. “Through the Expanded Home Electric Efficiency and Affordability RFP, we will make it easier for Connecticut households to take advantage of energy efficiency improvements that will lower their bills, while continuing to invest in a reliable and sustainable grid.”
“Customer demand for energy efficiency in Connecticut has skyrocketed over the last few years,” said DEEP Commissioner Katie Dykes. “This RFP will ensure more households have access to cost-saving, clean electric efficiency measures and will build on Connecticut’s already nation-leading efficiency efforts by providing even more opportunities for savings for the state’s ratepayers.”
Since 1998, Connecticut has been investing in energy efficiency through the state’s Conservation & Load Management (C&LM) programs. C&LM program investments in 2023 alone saved participating residents $61.5 million on their energy bills and will deliver $669 million in bill savings over the lifetimes of installed efficiency measures. Individual residents participating in the C&LM programs lower their energy bills by $180 per year on average thanks to air sealing and pipe insulation provided through an initial audit and get customized recommendations for further upgrades that can save them hundreds of dollars more.
Since 2019, demand for the state’s C&LM programs has grown by 40% and now exceeds the level that can be met within the programs’ budget levels. DEEP is working with Connecticut’s regulated gas and electric utilities, which implement the C&LM programs, and the state’s Energy Efficiency Board to further optimize the C&LM programs to support increasing levels of efficiency demand. DEEP is also coordinating the implementation of nearly $100 million in federal funding for energy efficiency through the Home Energy Rebates (HER) and Home Electrification and Appliance Rebate (HEAR) programs with the C&LM programs, which will deliver further benefits to Connecticut ratepayers.
Even with C&LM optimization and this federal funding, however, DEEP anticipates there will continue to be opportunities to scale up investment in cost-effective energy efficiency beyond the levels that the C&LM programs will be able to support. In addition, New England’s independent regional grid operator, ISO New England, projects that over the next 10 years regional demand for electricity will grow by 17 percent, including a 32 percent increase in winter peak demand, due to economic growth and increased adoption of electric vehicles and heat pumps. This growth will necessitate investments in energy resources that can affordably and reliably meet demand. Energy efficiency is among the lowest cost, cleanest, and quickest to deploy resources available to help meet these needs.
As the first step in the Expanded Home Electric Efficiency and Affordability RFP, DEEP is seeking written comments from stakeholders, due by November 13, 2024, on the draft RFP that will seek bids from companies proposing to implement innovative new household energy efficiency measures in the state. The draft RFP is available here: DEEP Energy Filing Form
Comments received from stakeholders in response to the draft RFP will inform development of a final RFP, which DEEP anticipates releasing by November 27, 2024, with bids due in January 2025. DEEP anticipates announcing a decision on the selection of energy efficiency proposals submitted in response to the RFP in February 2025.
The Expanded Home Electric Efficiency and Affordability RFP is being conducted pursuant to Conn. Gen. Stat. §16a-3j, which provides DEEP with authority to procure electric energy efficiency measures that either singly or through aggregation reduce electric demand by one megawatt or more. The maximum estimated procurement authority remaining under Conn. Gen. Stat. §16a-3j is approximately 2 million megawatt-hours per year.
For more information, please visit the DEEP Energy Filing webpage here: Energy Filings (state.ct.us): CT General Statutes - Section 16a-3j - Expanded Energy Efficiency and Affordability Initiative.
More information on Connecticut’s existing energy efficiency programs here: Home Page | EnergizeCT- Twitter: @CTDEEPNews
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Contact
DEEP Communications
DEEP.communications@ct.gov
860-424-3110