Transcript “New Twists on Classic Program Designs: Strategies for Reaching Low-Income Multifamily Tenants” Katherine Johnson, Johnson Consulting Group www.johnsonconsults.com.

“New Twists on Classic Program Designs:
Strategies for Reaching
Low-Income Multifamily Tenants”
Katherine Johnson, Johnson Consulting Group
1
www.johnsonconsults.com
Presentation Overview
Describes three innovative utility approaches to
reaching low and moderate residential customers
especially in multifamily buildings:
– Michigan: Consumer’s Energy Building Blocks Program
– Arkansas: Entergy’s Multifamily Program as part of new
unified statewide approach to delivering weatherization
services
– Colorado: The Partners in Energy Solutions joint
collaborative approach targeting low-income seniors
Highlights some best practices and lessons learned
from three different program evaluations.
2
www.johnsonconsults.com
Consumers Energy
Consumers Energy is Michigan’s
second-largest electric and natural
gas utility, providing service to more
than 6 million of the state’s 10 million residents in
all 68 counties in the Lower Peninsula.
• The utility provides electric service to 1.8 million
customers and natural gas service for heating and
other uses to more than 1.7 million customers in 44
of the 68 counties in Michigan’s Lower Peninsula.
3
www.johnsonconsults.com
Entergy Arkansas (EAI)
Entergy Arkansas serves
three-quarters of the eastern
portion of Arkansas
• 683,000 customers in 63 counties
4
www.johnsonconsults.com
Partners in Energy Savings (PIES)
Colorado Natural Gas Utilities
The four natural gas utilities in Colorado fund a
portfolio of energy efficiency programs through
the Partners in Energy Savings (PIES) Program,
otherwise known as the Collaborative.
The cost savings associated with using a collaborative
approach allows each utility to direct more of its DSM
program dollars toward maximizing the installation of
energy efficiency measures in its respective service territory.
Additionally, designing collaborative programs with integrated
marketing activities, efficiency measures and rebate structures
permit consistent messaging by these utilities.
5
www.johnsonconsults.com
Energy Efficiency Kit Targeting Low
Income Seniors
• The Energy Efficiency Kit contains several energy
and water conservation measures and
educational tips designed to reduce
overall consumption.
• The kits were advertised to Atmos and SourceGas
customer via a special Business Reply Card
mailing. Customers could receive a kit by
completing the Reply Card and sending it back to
the utility.
6
www.johnsonconsults.com
Energy Efficiency Savings Kits
The Energy Efficiency Savings Kits initiative
should be expanded to a wider group of
customers, perhaps for all four PIES utilities,
assuming budgets can be re-allocated. Findings
strongly suggest that the participants receiving the
energy efficiency kits were satisfied with the
program overall, as well as the quality and number
of energy efficiency measures. Given that the
benefits of the program, in terms of encouraging
customers to take actions to reduce energy usage
on their own, this appears to be a program that
benefits both the customers and the utilities.
7
www.johnsonconsults.com
Energy Efficiency Savings Kits
Leverage the Energy Efficiency Kits to
promote other Excess is Out Programs.
It is also critically important to remind
customers that they requested this kit, and to
encourage them to install their measures
“right away.” That could also lead to
developing another informational brochure
for the kit that reminds customers that other
Excess is Out Programs are available.
8
www.johnsonconsults.com
Persistence
9
www.johnsonconsults.com
Participant Satisfaction
10
www.johnsonconsults.com
Key Takeaways
• Overall, the Energy Efficiency Kit appears to be a
highly successful program, with high installation
rates, long measure persistence, and low free
ridership.
• Most participants are senior citizens living on a
fixed income. Clearly, they were looking for ways
to reduce their overall energy bills, and the kits
filled that need. Customer satisfaction rates are
very high, and it appears that this program has
lead to improved overall attitudes in general
about the natural gas utilities.
11
www.johnsonconsults.com
Building Blocks Program
12
www.johnsonconsults.com
Building Blocks Program Features
• The program directly rewards customers for positive
actions that improve energy efficiency in their
homes, and that those actions are self-driven.
• Throughout the program
lifecycle each participant
receives, or has the
possibility of receiving,
cash and non-cash
incentives for their participation in the program.
13
www.johnsonconsults.com
Building Blocks Relies on
the Personal Touch
• For the pilot program,
marketing/outreach relied on
face-to-face meetings with local
social service agencies
• The agencies, in turn, referred potential
customers to the utility for enrollment.
14
www.johnsonconsults.com
Measures Received in
Workshop 1
•
•
•
•
•
•
•
•
•
•
Smart power strip
10 CFL bulbs
Two LED night lights
One outdoor motion sensor adaptor
Kitchen and bathroom faucet aerators
High-efficiency showerhead
Water heater pipe insulation
Hot water thermometer
Digital refrigerator thermometer
Refrigerator coil cleaning brush
15
www.johnsonconsults.com
Measures Received in Workshop 2
•
•
•
•
•
•
•
•
•
Indoor/Outdoor caulk with caulking gun
Two containers of spray foam
Replacement furnace filter
Window wrap kits
Door weather-stripping kits
Infrared digital thermometer
Rope caulk
Door bottom form of door sweep
V-seal & press and peel weather-stripping kits
Entergy Solutions Multifamily Program
Program Description
Program Eligibility
• The EAI Multifamily Program
offers energy assessments in
common areas to identify costeffective energy-efficiency
upgrades and offers free direct
install measures in tenant spaces
to the multifamily residential
market throughout the EAI, Inc.
(EAI) electric service territory. EAI
launched the Energy Solutions for
Multifamily Program in April 2012
(EAI 2012 EM&V Report, p. 290).
• Multifamily properties composed
of five or more units located within
the EAI electric service territory are
eligible for the EAI Multifamily
Program. Properties under a
residential, multifamily or
commercial rate code all qualify for
this program
• There are no maximum limits on
the size of a building or number of
qualifying buildings in a single
complex (EAI 2013 Multifamily
Guidebook, p. 3)
16
www.johnsonconsults.com
Entergy Solutions Multifamily Program
Energy Survey Services
The energy survey consists of an on-site survey of the property and
applicable equipment. Property owners/managers receive a summary
report of the property’s potential energy savings from the program
implementer as well as information about other EAI programs for
which they may be eligible (EAI 2012 EM&V Report, p. 289).
Eligible Measures
CFLs in fixtures and lamps that replace incandescent bulbs
Faucet aerators- 1.5 gpm
Low-flow showerheads- 1.5 gpm
Based on the 2013 program evaluation, the program will be adding ceiling
insulation to the list of eligible measures going forward.
17
www.johnsonconsults.com
Entergy Solutions Multifamily Program
Results
• The program exceeded its goals in 2012.
– The program treated 3,075 residences
in 820 buildings at approximately 80
properties and greatly exceeded its 2012
annual participation goal of 326 treated residences
(EAI 2012 Annual Report, p. 72).
– Achieved 522% of its 2012 net annual goal of 364 MWh
and 250% of the net annual goal of 0.089 MW.
– As a result of the program’s significant early success,
the program implementers increased the savings goal
to 1,741 MWh. The program met 87% of this revised
internal goal.
18
www.johnsonconsults.com
Entergy Solutions Multifamily Program
The multifamily walk through survey is conducted by a
BPI-certified auditor. The auditor does not
use a software tool, but gathers property
site data to prepare the report that is mailed
back to the property manager. The report is
based upon the current version of the TRM
Deemed savings. While conducting the
survey, the auditor performs QA/QC on the measures
installations.
19
www.johnsonconsults.com
Distribution of Residences Served by
the Multifamily Program
Source: Evaluation Team analysis of ICF PY 2013 Database Extract.
20
www.johnsonconsults.com
Reasons for Program Success
Staff attributed the program success to the implementer
developing strong contacts with building
owners and managers in 2013.
•
ICF developed a database for outreach and recruiting to
support these efforts, which focused mainly on membership
lists for city/regional associations such as Builder Owner and
Managements Association chapters, and Institute for Real
Estate Management chapters.
• ICF also tracked local government permitting, where available,
to identify projects that could generate qualified leads.
• ICF made a concerted effort to reach out to property managers
in the southern and eastern portions of the state in 2013.
21
www.johnsonconsults.com
Other Key Takeaways
High Participant Satisfaction
Satisfaction With Multifamily Program Measures
Satisfaction with Entergy
80%
76%
70%
60%
50%
40%
30%
22%
20%
10%
1%
0%
Very satisfied
Source: EAI 2013 EM&V Report, p 409.
22
www.johnsonconsults.com
Somewhat
satisfied
Not too satisfied
Lessons Learned
from Innovative Programs
• Innovative programs work.
• Actions speak louder than
(energy) words.
• Cost-effectiveness is not the
only predictor of success for these programs.
23
www.johnsonconsults.com
Questions
Dr. Katherine Johnson, President
Phone: 301 461 4865
Email: [email protected]
Website: www.johnsonconsults.com
24
www.johnsonconsults.com