BERLIN, Connecticut – December 1, 2009 – Connecticut Light & Power's (CL&P) customers will use significantly less energy during times of peak electric usage when clear pricing signals are provided. That's the main finding from the CL&P Plan-It Wise Energy Program pilot study that was filed today with the Connecticut Department of Public Utility Control (DPUC).
Nearly 3,000 CL&P residential and commercial and industrial (C&I) customers took part in the voluntary rate program from June 1 through August 31 that tested their interest in and response to peak-time-based energy rates and smart technology. The approximately 1,300 C&I customers that participated were the largest study of C&I customers in North America to date.
"Our objective was to learn how much our customers would change their energy usage in response to clear price differences during peak times and the use of the smart technology," said Jessica Brahaney Cain, CL&P's Plan-It Wise Energy Program director. "Overall, they had a solid response."
Residential customers in the pilot had smart meters, which measured their electricity usage in one-hour intervals. These smart meters were part of a system that collected and transmitted information about customer electricity usage to CL&P, and then back to the customer via a two-way wireless network. Some participants were randomly selected to also receive smart technology, such as a smart thermostat or a control switch, which allowed CL&P to adjust their air conditioner temperature during predetermined periods of time to help the customer manage their electricity usage, or an energy orb, which alerted the customer of a change in electric rates by changing color, thereby giving the customer the ability to adjust their energy usage.
Among the findings of the study:
- On average, residential customers saved $15.21 over the course of the pilot, while limited-income customers saved $8.07. C&I customers, on average, paid an additional $15.45. However, the data also shows that customers who used the Plan-It Wise Web site to help track their energy usage saved more, with the average residential customer saving $24.69 and C&I customer saving $0.14.
- CL&P gathered feedback from customers in a post-pilot satisfaction survey. Almost 90 percent of both residential and C&I customers surveyed stated that they joined the pilot to save money. Sixty-seven percent of residential and 52 percent of C&I customers were also motivated to join the pilot in order to positively impact the environment. The survey showed that customers who joined the pilot to positively impact the environment were more satisfied than customers who joined to save money.
- The rate programs with the fewest peak hours, the highest peak-time pricing and the lowest off-peak time pricing were most effective in reducing peak-time power usage. Customers on these rates achieved a peak energy usage reduction of 16.1 percent for residential customers and 2.8 percent for C&I customers.
- Controlling technologies like the smart thermostats and smart switches were effective in achieving up to a seven percent additional peak energy usage reduction for residential customers and up to four percent for C&I customers. However, informational devices like the energy orb and the power cost monitor had no statistical peak energy usage reduction effect.
- Residential customers rated their overall satisfaction of the program at 5.1 out of 6, while C&I customers rated the program a 4.1 out of 6. Ninety-two percent of residential and 74 percent of C&I customers surveyed said they would participate again.
"CL&P definitely hit a home run with this one," said pilot program participant Sharon Reidy of Stamford. "They were trying very hard to make it easier for us to save money in our homes."
"We're very pleased with the way the pilot went, " added Cain. "The meters worked well and we've gained valuable experience in regards to time-based rates and smart technology. These results will be used to help form our recommendations on how best to move forward with smart meters and technology to help our customers control their energy usage and costs and benefit our environment. Those recommendations will be filed with the DPUC by March 31, 2010."
You can learn more about the program and hear from participants by going to www.cl-p.com.
The Connecticut Light and Power Company (CL&P) has been part of everyday life in Connecticut for more than 100 years, providing safe and reliable electric service to homes, neighborhoods and businesses. With 1.2 million customers in 149 cities and towns, CL&P is improving the environments you live in, by offering programs in energy conservation, economic development and environmental stewardship. CL&P is a Northeast Utilities company (NYSE: NU). For more information, please visit www.cl-p.com.
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