National Grid PLC

National Grid advances energy efficiency programs in upstate New York to address high costs

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May. 6, 2008
National Grid announced an expanded portfolio of energy efficiency programs this week in its Upstate New York service area to help customers save energy, save money and benefit the environment. With the fundamental objective of advancing the most efficient use of energy as possible to reduce overall demand, the programs include home weatherization, incentives to purchase efficient appliances, interactive online efficiency tools, system infrastructure and co-generation opportunities for commercial, industrial and municipal customers, and additional funding for low-income programs “As part of its energy and environmental policy, the State of New York has set an ambitious goal of reducing energy usage 15 percent by 2015,” said Tom King, president of National Grid in the U.S. “National Grid is proposing these expanded energy efficiency programs for our customers so that we can together take action to achieve this goal. As a company, we are committed to reducing carbon emissions and assisting our customers with their energy costs. Our cost-effective energy efficiency programs are a way to do both at once.”

The proposal is consistent with the New York State Public Service Commission’s objective of expanding energy efficiency and dovetails with the findings of a recent McKinsey & Company study, co-sponsored by National Grid, pointing to the potential of energy efficiency measures as the most cost-effective option for mitigating climate change.

According to National Grid, customers are projected to reduce energy use by approximately 4.4 million megawatt hours of electricity and 8.5 million MMBtu’s (British Thermal Units) of natural gas, saving more than $350 million, over the lifetime of the efficiency products and equipment provided through these programs.

“We applaud National Grid’s leadership in advancing this cost-effective energy efficiency program,” said Ashok Gupta, Air & Energy Policy director of the Natural Resources Defense Council. “The proposal presents a model for aligning company and customer interests in reducing New York’s energy consumption, helps meet the governor’s ‘15 by 15’ energy efficiency goals, reduces consumer bills and addresses global warming.”

National Grid has a 20-year track record of successful, award-winning efficiency programs in New England and this proposal leverages that experience for the benefit of its Upstate New York customers, said Tim Stout, National Grid’s vice president of energy efficiency.

“Energy efficiency programs are short-term investments for long-term savings,” Stout said. “For example, by replacing just five old incandescent light bulbs with new compact fluorescent bulbs, an individual customer can save an estimated $9 per month on their electricity bill, which outweighs the estimated monthly costs of implementing these programs.” National Grid’s proposed programs will add approximately $1.50 each to the average residential customer’s monthly electric and gas bills. The proposal, filed April 30, is subject to review and approval from the Public Service Commission.

The proposed programs are:

Residential High Efficiency Central Air Conditioning
Residential High Efficiency Heating and Water Heating
Enhanced Home Sealing Incentives
Residential Energy Star Products and Recycling Program – Will promote ENERGY STAR® appliances, lighting, thermostats and windows and recycle older, inefficient appliances
Residential Low-Income Program – Expands NYSERDA programs
Residential Internet Audit Program and E-Commerce Sales
New Construction Program – fosters energy efficient building practices
Residential Building Practices and Demonstration Program – Will encourage new and innovative technologies
EnergyWise Program – Energy efficiency services opportunities in multifamily dwellings
Commercial and Industrial Energy Initiative – focus on energy efficiency opportunities in existing commercial and industrial buildings
Commercial and Industrial Natural Gas Energy Efficiency Program
Commercial and Industrial New Construction and Renovation
Small Business Services Energy Efficiency Program
Commercial High-Efficiency Heating and Water Heating Program
Commercial and Industrial Building Practices and Demonstration Program – fosters innovative and energy efficient building and system designs
National Grid is an international energy delivery company. In the U.S., National Grid delivers electricity to approximately 3.3 million customers in Massachusetts, New Hampshire, New York and Rhode Island, and manages the electricity network on Long Island under an agreement with the Long Island Power Authority. National Grid is the largest power producer in New York State, owning 6,650 megawatts of electricity generation that provides power to over one million customers on Long Island and supplies roughly a quarter of New York City’s electricity needs. It is also the largest distributor of natural gas in the northeastern U.S., serving approximately 3.4 million customers in New York, Massachusetts, New Hampshire and Rhode Island.

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