Press Releases
03/23/2026
DEEP Selects Proposals to Help Lower Electric Bills Under Novel Efficiency RFP
Expanded Efficiency and Demand Response Offerings Will Provide Affordability and Reliability Benefits for Connecticut
(HARTFORD, CT) —The Connecticut Department of Energy and Environmental Protection (DEEP) today announced the provisional selection of proposals under the first round of its Expanded Efficiency and Affordability Request for Proposals (RFP), a competitive process launched following new legislative authority enacted in 2025. This authority enables DEEP to procure energy efficiency and active demand response measures on behalf of ratepayers, supplementing Connecticut’s successful existing programs and delivering additional opportunities for customers to reduce their energy bills.
Through this RFP, DEEP sought innovative, cost-effective approaches that provide incremental energy savings, reduce peak electric demand, and offer new pathways for residential and commercial customers to access energy saving technologies. The selected proposals will build on the state’s proven Conservation & Load Management (C&LM) programs—nationally recognized for delivering hundreds of dollars in annual bill savings to thousands of participating households and businesses—while providing new offerings and business models.
The selected offerings include:
- Residential Behavioral and Incentive Based Demand Response: For United Illuminating (UI) electric customers, new offerings will provide personalized insights and financial incentives encouraging households to shift usage away from the most expensive and grid strained hours. This may include information and rewards for running appliances such as clothes dryers or dishwashers later in the evening, helping reduce systemwide costs. Robust participation could result in up to $40/year in incentive payments for participating customers.
- No Upfront Cost Small Business Energy Efficiency Upgrades: Small commercial customers across both Eversource and UI territories will be offered high efficiency heating and cooling equipment, lighting upgrades, refrigeration improvements, and advanced controls. These upgrades will require no upfront cost, with participating businesses repaying measures over time supported by energy savings they generate. This performance contracting approach helps eliminate financial barriers facing small businesses which play a critical part of Connecticut’s economy. The average small commercial participant could save approximately $18 per month on energy bills and may see demand cost reductions as well.
Once launched—expected in 2027—these offerings will leverage Advanced Metering Infrastructure (AMI) data available to UI customers, advanced control technologies, and standardized measurement and verification protocols to ensure that all energy and demand reductions are accurately quantified. Independent third-party evaluators will verify results, ensuring transparency and strong value for ratepayers.
These offerings will also reduce costs for all ratepayers, even for non-participants, by lowering distribution, transmission, and supply costs experienced across the grid. After costs, selected proposals are expected to reduce all ratepayer bills by $3.36 per year for the average residential customer. Ratepayers who choose to actively participate in the efficiency and demand response programs will receive even more savings.
The results of this initial procurement demonstrate the success of competitive procurements as an innovative way of investing in energy savings, a valuable but often overlooked resource for the electric system. The proposals selected demonstrate that energy efficiency and demand response can be competitively procured to reduce electricity use and lower peak demand, just like electricity supply. Later this year, DEEP expects to issue a second RFP with the aim of further expanding efficiency and demand response offerings to more homes and businesses, while growing the benefits for all ratepayers: reducing energy waste, lowering system costs, and helping avoid more expensive investments in new electric infrastructure. Over time, scaling this approach can deliver larger savings for participating customers while lowering costs for all ratepayers.
“Reducing energy waste is a smart way to lower energy costs for all Connecticut ratepayers,” said Governor Ned Lamont. “These new offerings will allow participating customers to save money while also helping us avoid costly investments in new electric infrastructure. The new tools made possible through the 2025 legislation will help more households and small businesses access moneysaving efficiency improvements and support our ongoing efforts to build a reliable, affordable, and sustainable electric grid.”
“DEEP is pleased with the strong response to this RFP and excited to advance new approaches that leverage utility data, advanced controls, and performance-based models to help customers lower their bills,” said DEEP Commissioner Katie Dykes. “We expect these proposals to reduce summer electric demand by over 10MW, reduce electric use by 15,170 kWh over the life of the measures, and to provide meaningful affordability and reliability benefits to customers statewide.”
Background on Connecticut’s Efficiency Leadership
Since 1998, Connecticut’s Conservation & Load Management (C&LM) programs have delivered billions in lifetime energy cost savings, avoided costly grid upgrades, and reduced reliance on imported fossil fuels. In 2025 alone, C&LM investments saved participating residents $36.5 million on their energy bills and are expected to generate $410.8 million in lifetime savings.
Next Steps
Eversource and United Illuminating will begin contract negotiations with selected proposers, and will bring proposed contracts to the Public Utilities Regulatory Authority (PURA) for review and approval. Additional details will be released following completion of contract execution. DEEP also expects to release a second RFP later this year to solicit additional cost-effective energy efficiency and demand response resources.
More information on Connecticut’s existing energy efficiency programs here: Home Page | EnergizeCT
For more information on the RFP, 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.- Twitter: @CTDEEPNews
- Facebook: DEEP on Facebook
Contact
DEEP Communications
DEEP.communications@ct.gov
860-424-3110