Implementation Phase of a Residential Energy Conservation Shared Savings Program: The General Public Utilities Experience

摘要

This report describes the implementation phase of a residential shared savings program - the Residential Energy Conservation Action Program (RECAP). RECAP's unique feature is that it enables customers to have their homes weatherized free of charge. Utilities contract with energy conservation companies (ECCOs) to install energy-saving measures in homes; the utilities then reimburse the ECCOs not for the cost of the measures, but for the value of the marginal avoided cost for each kWh saved by the improvements. As a result, the allocation of financial risks associated with conservation and retrofit activities is quite different from more standard arrangements. There is little risk to the resident or utility if conservation, efficiency, or load shift improvements are less than expected. Instead, the ECCO responsible for selecting and installing the retrofit measures absorbs most of the costs for measures which do not save energy. The ECCO also receives the benefits of superior performance. This provides a strong incentive to the ECCO to install measures which are clearly cost effective in residences which have a potential for significant savings. This report documents some of the costs, benefits, problems, and successes associated with the implementation of RECAP. The effects of different marketing and program implementation strategies on RECAP participation and effectiveness are also explored. Data from the Pennsylvania RECAP communities indicate that the homes of RECAP participants have a greater number of retrofit measures than the homes of eligible nonparticipants, suggesting that the program has accelerated adoption of such measures above and beyond what would have occurred otherwise. 18 refs., 3 figs., 6 tabs. (ERA citation 10:048947)