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Appendix A – Illustrative Example and Avoided Costs<br />

Introduction<br />

Throughout this paper we have referenced an actual New England utility's energy<br />

efficiency programs and screen<strong>in</strong>g results, <strong>in</strong> order to demonstrate the implications of<br />

the different screen<strong>in</strong>g practices. We have relied on the same utility <strong>in</strong> each of the<br />

examples discussed <strong>in</strong> the body of the report, and have based each example on the<br />

utility’s actual efficiency programs, <strong>in</strong>clud<strong>in</strong>g its projected (or actual where pert<strong>in</strong>ent)<br />

budget, sav<strong>in</strong>gs, benefits, and other assumptions.<br />

This Appendix provides a more complete background on that utility’s efficiency<br />

programs, as well as the avoided cost assumptions <strong>in</strong>cluded <strong>in</strong> its cost-effectiveness<br />

analysis. Each of these topics is discussed <strong>in</strong> more detail below.<br />

<strong>Program</strong> Descriptions<br />

The report focuses on n<strong>in</strong>e of the utility’s programs that are common to efficiency<br />

programs <strong>in</strong> many states. This New England utility actually adm<strong>in</strong>isters more programs<br />

than those discussed <strong>in</strong> the report, such as a behavioral-based program. By restrict<strong>in</strong>g<br />

the analysis to these n<strong>in</strong>e programs, our <strong>in</strong>tention is to focus on a core set of programs<br />

that are typically offered <strong>in</strong> states, rather than provide a comprehensive analysis of<br />

program portfolios. The identified programs and a brief description of each program’s<br />

purpose are provided below.<br />

Residential Retrofit: the purpose of this program is to provide residential<br />

customers with energy efficiency recommendations that enable them to identify<br />

and <strong>in</strong>itiate the process of <strong>in</strong>stall<strong>in</strong>g cost-effective energy efficiency upgrades.<br />

The program provides <strong>in</strong>formation through outreach mechanisms, <strong>in</strong>centives, and<br />

multiple f<strong>in</strong>anc<strong>in</strong>g options.<br />

Residential New Construction: the purpose of this program is to capture lost<br />

opportunities, encourage the construction of energy-efficient homes, and drive<br />

the market to one <strong>in</strong> which new home are mov<strong>in</strong>g towards net-zero energy.<br />

Residential Appliances: the purpose of this program is to raise consumer<br />

awareness of the benefits of energy-efficient ENERGY STAR-qualified consumer<br />

products, encourage consumers to purchase qualified appliances and consumer<br />

electronics, promote higher efficiency standards for products, and to help<br />

customers reduce energy bills by replac<strong>in</strong>g or recycl<strong>in</strong>g <strong>in</strong>efficient products.<br />

Residential Light<strong>in</strong>g: the purpose of this program is to <strong>in</strong>crease consumer<br />

awareness of the importance and benefits of purchas<strong>in</strong>g ENERGY STARqualified<br />

light<strong>in</strong>g products and expand the availability, consumer acceptance, and<br />

use of high-quality energy-efficient light<strong>in</strong>g technologies and controls.<br />

Low-Income Retrofit: the purpose of this program is to deliver energy efficient<br />

products and services directly to the homes of <strong>in</strong>come eligible customers to help<br />

them lower their energy bills to achieve deeper and broader energy sav<strong>in</strong>gs.<br />

<strong>Best</strong> <strong>Practices</strong> <strong>in</strong> <strong>Energy</strong> <strong>Efficiency</strong> <strong>Program</strong> Screen<strong>in</strong>g | www.nhpci.org | 67

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