Long Island Power Authority (LIPA) continues to experience significant growth indemand for electricity. While this is not news, LIPA's solution for procuring new supply is.LIPA is committed to cost-effective energy efficiency to minimize the need for additionalgeneration and transmission resources. Though the supply needs ruled out energy efficiency asthe only solution, LIPA was determined to make efficiency contribute to the solutions. In spring2003, LIPA issued a Request for Proposals (RFP) seeking additional supply (SRFP) (Long IslandPower Authority 2003). Soon after, a second RFP was issued seeking 75 megawatts fromenergy efficiency (Long Island Power Authority 2004).This paper explores the design and implementation of the Energy Efficiency RFP (EERFP). The RFP required efficiency measures with both megawatt (MW) and megawatt-hour(MWh) savings. MW savings had to be realized from energy efficiency only, not loadmanagement or distributed generation. Respondents were asked to include a detailed discussionof how customers would be solicited, what measures would be installed and how savings wouldbe verified. Extra consideration was given to proposals addressing load pockets, publicly-ownedbuildings, small commercial and industrial (C&I) customers and multifamily buildings.The paper addresses how bids submitted in response to the RFP scored on therequirements and issues. The paper also compares the costs, kW/kWh ratio, lifetimes of theenergy efficiency RFP with the supply RFP, and prior experiences of demand-side bidding(DSM). Particular attention was paid to past efforts at demand-side bidding. LIPA strived toidentify, and as often as possible, rectify the deficiencies of those efforts.
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