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Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 Consolidated Edison Company of New York, Inc. Date Filed: 4/22/19 Case 15-M-0252
Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
Table of Contents
1. Introduction .............................................................................................................................3
2. Portfolio-Level Management ....................................................................................................6
Portfolio Description .............................................................................................................................. 7
3. Portfolio Forecast: 2019-2020 ...................................................................................................9
Budget and Target Summary .................................................................................................................. 9
Forecasted Portfolio-Level Activity ...................................................................................................... 19
Evaluation, Measurement and Verification ......................................................................................... 20
Impact Evaluation ............................................................................................................................. 21
Process Evaluation ............................................................................................................................ 22
Measurement & Verification ............................................................................................................ 22
Quality Assurance/Quality Control ................................................................................................... 25
Activities and Expenditures .............................................................................................................. 25
Market Research .................................................................................................................................. 28
Marketing and Customer Engagement ................................................................................................ 31
Communications Strategy ................................................................................................................ 32
Benefit Cost Analysis (“BCA”) ............................................................................................................... 34
4. Program Descriptions ............................................................................................................. 38
Commercial Sector ............................................................................................................................... 38
Commercial Electric & Gas Programs ............................................................................................... 39
Self-Direct Program .......................................................................................................................... 41
Strategic Energy Partnerships .......................................................................................................... 41
Instant Lighting ................................................................................................................................. 42
Residential Sector ................................................................................................................................. 42
Residential Electric & Gas Programs ................................................................................................ 43
Residential Upstream HVAC ............................................................................................................. 44
Smart Kids ......................................................................................................................................... 45
Retail Lighting ................................................................................................................................... 45
Midstream Retailer Incentive Program ............................................................................................ 46
Residential Home Energy Reports .................................................................................................... 47Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
Multifamily Sector ................................................................................................................................ 47
Multifamily Electric & Gas Programs ................................................................................................ 47
Test and Learn ...................................................................................................................................... 49
Test-and-Learn Implementation Strategy ........................................................................................ 49
New Movers (previously New Homeowners)................................................................................... 50
Building Energy Performance (previously Commercial Behavioral)................................................. 52
Third-party Residential Financing ..................................................................................................... 52
Pay-for-Performance (P4P) Pilot ...................................................................................................... 53
Aquanta smart gas water heater controllers ................................................................................... 54
Oil-to-electric (OTE) conversion pilot program ................................................................................ 55
LMI ........................................................................................................................................................ 55
Heat Pumps .......................................................................................................................................... 55
Kicker Incentive Proposal ..................................................................................................................... 56
REV Demonstration Projects ................................................................................................................ 56
Connected Homes REV Demo Project .............................................................................................. 56
Building Efficiency Marketplace REV Demonstration Project .......................................................... 57
EnergyFit REV Demo Project ............................................................................................................ 58
Non-Wires Solutions ............................................................................................................................. 58Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
1. Introduction
Consolidated Edison Company of New York, Inc. (“Con Edison” or the “Company”) submits this
updated Energy Efficiency Transition Implementation/System Energy Efficiency Plan (“ETIP/SEEP”) for
2019-2020 pursuant to the Order Approving with Modification the Non-Pipeline Solutions Portfolio1
(“NPS Order”). The Company previously submitted an ETIP/SEEP on February 19, 2019,2 pursuant to
the New York State Public Service Commission’s (“PSC” or the “Commission”) December 13, 2018
Order Adopting Accelerated Energy Efficiency Targets3 (“NENY Order”) and March 15, 2018 Order
Authorizing Utility-Administered Energy Efficiency Portfolio Budgets and Targets for 2019-20204 (“ETIP
Order”).
The NPS Order authorized the Company to begin implementation of its Non-Pipeline Solutions (“NPS”)
portfolio, directed the Company to integrate the NPS portfolio within the energy efficiency portfolio
and framework established in the NENY Order,5 and update its ETIP/SEEP within 60 days of the NPS
Order to reflect the budgets and targets reflected therein.6 The Company’s implementation plan
assumes that energy efficiency expenditures, including for heat pumps, for the remainder of 2019 will
be funded via the Company’s authorization: (1) under the ETIP 7 for electric and gas, (2) under the
current rate plan approved in Case 16-E-0060 (“Rate Case Order”) 8 for electric and (3) to use unspent
Energy Efficiency Portfolio Standard (“EEPS”) funds pursuant to Order Approving in Part, with
Modification, and Denying in Part Smart Solutions Program in Case 17-G-0606 (“Enhanced Gas EE
Order”) as well as the NPS Order for gas. Further, this implementation plan assumes that the Company
will fund energy efficiency expenditures for 2020 via the authorizations: (1) pursuant to ETIP for
electric and gas; (2) to use unspent electric ETIP and EEPS funds to implement a heat pump initiative;
1
Case 17-G-0606-Petition of Consolidated Edison Company of New Yok, Inc. for Approval of the Smart Solutions for
Natural Gas Customers Program, Order Approving with Modification the Non-Pipeline Solutions Portfolio (issued
and effective February 7, 2019). (“NPS Order”).
2
Case 15-M-0252, Consolidated Edison Company of New Yok, Inc. Energy Efficiency Transition
Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 (filed February 19, 2019).
3
Case 18-M-0084, In the Matter of a Comprehensive Energy Efficiency Initiative, Order Adopting Accelerated
Energy Efficiency Targets (issued and effective December 13, 2018). (“NENY Order”).
4
Case 15-M-0252-In the Matter of Utility Energy Efficiency Programs, Order Authorizing Utility-Administered
Energy Efficiency Portfolio Budgets and Targets for 2019-2020 (issued and effective March 15, 2018). (“ETIP
Order”).
5
The Company has integrated the NPS portfolio into the framework established in the NENY Order and developed
proposed expenditures and goals for electric energy efficiency, including heat pumps, and gas energy efficiency
through 2025 as described in the Con Edison chapter of the New York Utilities’ April 1 filing in Case 18-M-0084
(“Con Edison Chapter”).
6
The Company requested and received a subsequent two-week extension from April 8, 2019 to April 22, 2019.
7
ETIP Order
8
Case 16-E-0060, Proceeding on Motion of the Commission as to the Rates, Charges, Rules and Regulations of
Consolidated Edison Company of New York, Inc. for Electric Service, Order Approving Electric and Gas Rate Plans
(issued January 25, 2017). (“Rate Case Order”)
3Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
(3) to use unspent EEPS funds as provided for in the NENY Order for electric energy efficiency; (4) to
use unspent EEPS funds as provided for in the Enhanced Gas EE Order for gas energy efficiency; and (5)
to use unspent DMP funds to offer a kicker incentive for space cooling and related technologies. These
plans are discussed in greater detail in the NY Utilities Report Regarding Energy Efficiency Budgets and
Targets, Collaboration, Heat Pump Technology and Low- and Moderate-Income Customers and
Requests for Approval (“April 1 NENY Filing”) and associated errata.9
This implementation plan is based on a portfolio developed to enable the Company to achieve (i) the
electric energy efficiency targets for 2019, inclusive of both ETIP and Rate Case Order goals, (ii) gas
energy efficiency targets for 2019, inclusive of both ETIP and Enhanced Gas EE Order goals, (iii)
beginning of the implementation of the NPS portfolio, (iv) electric energy efficiency targets for 2020,
inclusive of both ETIP and NENY Order goals as well as implementation of the heat pumps portion of
the NPS portfolio and (iv) gas energy efficiency targets for 2020. Finally, while the Company’s plan has
separate budgets and targets for electric, including heat pumps, and gas, the Company’s electric and
gas rate case filings and its April 1 NENY filing proposes that the Company have a single combined
budget be able to flexibly implement both electric and gas energy efficiency as a single portfolio
beginning in 2020.
The Company-wide portfolio of ETIP/SEEP programs10 align the shared goals of the Company, the
Commission, and stakeholders to maintain a more efficient consumption profile while continuing to
provide energy, including both electricity and gas, in a reliable, safe, and sustainable manner. The
Company’s suite of energy efficiency initiatives is aligned with State clean energy policies and REV
priorities to reduce greenhouse gas emissions, provide heating alternatives and otherwise enhance
beneficial electrification, deliver meaningful benefits cost-effectively, with moderate bill impacts.
Through all of these initiatives, customer engagement and choice are critical considerations. The
Company provides customers with actionable insights and the ability to efficiently manage their energy
needs. The Company accomplishes these objectives through numerous means, such as (i) driving energy
efficiency implementation by incentivizing market participants at different points in the supply chain
(e.g., providing incentives to customers, retailers, developers and/or contractors to align interests of the
downstate market toward energy efficiency, including heat pumps, and thereby cost-effectively increase
adoption), (ii) providing energy audits, (iii) sharing educational materials about energy efficient products
and services, and (iv) promoting controllable technologies such as Wi-Fi enabled thermostats. Further,
in partnership with the New York State Energy Research and Development Authority (“NYSERDA”), Con
Edison works with its marketplace partners so initiatives are well coordinated, each organization’s
9
Case 18-M-0084, In the Matter of a Comprehensive Energy Efficiency Initiative, NY Utilities Report Regarding
Energy Efficiency Budgets and Targets, Collaboration, Heat Pump Technology and Low- and Moderate-Income
Customers and Requests for Approval (filed April 1, 2019) and Con Edison Chapter – EE Filing – Errata (filed April
16, 2019)
10
ETIP/SEEP programs include ETIP, programs approved and/or proposed in current and pending rate cases, REV
demonstration projects, demand reduction programs, and non-wires and non-pipes solutions.
4Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
strengths are leveraged and each organization’s efforts are complemented to synergistically drive
energy efficiency adoption. As customers become more savvy energy consumers, the Company plans to
help facilitate animation of a robust market of third-party actors. The Company has provided energy
efficiency product training programs to more than one thousand independent contractors and expects
to continue to engage market partners through similar programs that leverage incentives, increase
product knowledge, and provide access tools to work directly with customers to deliver energy
efficiency.
The Company is additionally developing a kicker incentive initiative, aligned and in compliance with the
NENY Order, to drive adoption of space cooling or related technologies which provide system benefits
across the service territory. The Company is also implementing energy efficiency in areas of locational
need, by providing additional incentives, developing new programs for energy efficiency in areas
targeted by non-wires solutions (“NWS”) or NPS and supporting REV demonstration projects that test
new business models for energy efficiency. The Company is implementing energy efficiency programs to
support Water and Plymouth Street NWS and also testing new energy efficiency business models that
can facilitate adoption of energy efficiency among Low and Moderate Income (“LMI”) customers to
broaden the benefits of energy efficient technology. Further, as directed by the NENY Order, the
Company is coordinating with NYSERDA in further developing LMI initiatives.
5Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
2. Portfolio-Level Management
Consistent with the REV Track One Order11, Con Edison will manage its energy efficiency offerings on a
portfolio-level, subject to funding source flexibility, and adjust individual program and pilot budgets,
goals, delivery mechanisms, and customer engagement strategies based on factors, such as changing
technology measure mixes, costs, and customer preferences. The Company will also continue to
monitor individual programs and measures to inform and guide performance. This management
approach will ultimately enable movement of funds and other resources from one program or
initiative to another based on opportunity, cost effectiveness, customer feedback, and market and
operational factors. The Company will track and report on program costs, benefits, and attendant
energy savings by customer segment.
The Company’s portfolio is evolving to reflect Commission priorities as described through the NENY and
NPS Orders. Changes to the portfolio include more expansive EE portfolios, greater inclusion of heat
pumps that also focuses on their use as a heating alternative, with additional focus on peak day gas
demand reductions. As such, the Company expects program design and implementation to evolve
because flexibility is necessary to facilitate achievement of desired outcomes. Changes to the structure
and composition of the portfolio include: (i) development of a kicker incentive focused on space cooling
and related technologies, (ii) integration of NPS into the overall EE portfolio, and (iii) expansion of heat
pumps as a greater initiative within the overall EE portfolio.
While the Company’s programs include separate, annual electric and gas energy savings targets, the
Company proposes to manage the portfolio of electric and gas EE programs as a single combined
budget. Managing the Company’s EE portfolio on a combined basis will benefit customers, for example,
by providing flexibility:
- Within the budget, which allows for the portfolio to respond to market conditions and customer
needs, creating opportunities for focus to be shifted across programs to more cost-effective
efforts that are driving results, and
- Within the electric and gas programs, including heat pump programs, allowing a more fuel-
neutral approach to programs.
The management of the EE portfolio on a single combined budget reflects the State’s increasing focus on
British Thermal Unit (“Btu”) savings and encompasses the suite of new and innovative initiatives that
have emerged from the NPS and NENY proceedings.
11
Case 14-M-0101, Proceeding on Motion of the Commission in Regard to Reforming the Energy Vision, Order
Adopting Regulatory Policy Framework and Implementation Plan at 75-82 (issued February 26, 2015)
6Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
The Company’s portfolio builds upon our experience in delivering EE12 with focus on the following three
key portfolio considerations:
• Focus on cost-effective and scalable upstream interventions, such as through retailers,
contractors, or distributors, as a key component of the portfolio’s development. Such
interventions can directly drive EE adoption and transform markets by positively influencing
behavior to favor EE across the supply chain.
• To the extent such diversification can be undertaken under the budget and unit cost limits,
diversify beyond lighting, which is the predominant electric EE driver today. Diversification
efforts will require Con Edison to work with customers to achieve greater and deeper levels of
savings from more complex measures, such as heating, ventilation, and air conditioning
(“HVAC”) and building envelopes that have longer customer payback periods and
implementation lead times, as well as provide more and relevant choices to customers such as
those seeking heating electrification.
• Expand the gas portfolio to develop additional focus towards, and experience with peak day
reduction and to continue the development of the EE market for gas EE.
Portfolio Description
The Company’s forward-looking energy efficiency portfolio reflects and builds upon its experience
running cost-effective EE programs that have delivered reduced energy usage and emissions. The
Company’s programs will enable customers to better manage their energy use, enhance their use of
beneficial electrification technologies, improve their comfort and well-being, and save on their utility
bills.
At the broad level, the primary energy efficiency portfolio is currently divided into electric, including
heat pumps, and gas offerings across customer segments. The Company reaches customers through a
focus on three primary customer segments - commercial, multifamily, and residential - designed to meet
each customer group’s needs. These offerings and delivery channels are discussed in detail in the
Program Descriptions section as well as approaches the Company is taking to reach new customers and
achieve greater energy savings.
The Company plans to grow the portfolio by optimizing delivery of current offerings to generate more
energy savings and demand reductions from existing programs through continued streamlining of the
customer experience from the application stage to full implementation of the energy efficiency measure
12
Although the Company developed an illustrative portfolio based on the best information available, the Company
notes that the scale of expansion of gas EE and heat pump initiatives are unprecedented and are expected to
present considerable operational challenges in execution. In particular, gas EE measures are generally more
complex, requiring longer lead times, municipal permits, and greater capital investment. Similarly, lack of customer
awareness and challenges with customer economics may present a barrier to customer adoption of heat pumps.
7Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
using transparent information and enhanced process standardization. The Company will employ more
innovative energy efficiency resource acquisition methods to reach deeper savings, expanding beyond
lighting measures, including midstream and upstream supply chain interventions and developing more
innovative solutions to engage harder to reach customers, such as residential customers, including LMI
customers. The Company intends for the portfolio to evolve as it adjusts to the market response.
The Company will employ strategies and operational improvements to better serve customers in a more
innovative and market-oriented manner that is transparent and transformational for our customers,
partners and other stakeholders in the EE marketplace. This includes giving customers multiple options
and opportunities to reduce their energy use based on their unique needs, providing additional
incentives or developing new programs that support system needs targeted to constrained electric and
gas areas, or expanding programs targeted to midstream and upstream portions of the supply chain that
align interests in promoting more widespread installations of energy efficient equipment at customer
locations. Examples for residential customers include accessing rebates and incentives through market
partners, managing energy and demand through smart thermostats and Wi-Fi-enabled air conditioners,
and benefiting at the retail level from market-based partnerships between Con Edison and mid- and up-
stream retailers and manufacturers.
In addition to these strategies, Con Edison is working with NYSERDA to complement the Company’s
efficiency offerings with initiatives, such as pilots to facilitate development of the energy efficiency
market for increased adoption, maximize value to customers, advance market-based initiatives, and
generally provide complementary or reinforcing efforts, so the outcomes transform markets and
improve energy efficiency adoption. 13 The Company will continue such work with NYSERDA to address
targeted market opportunities and advance potential programmatic enhancements to provide value to
customers and/or stakeholders. Examples of potential areas of coordination include identifying
contractor eligibility requirements and leveraging NYSERDA’s statewide awareness and outreach
capabilities with the Company offering more focused, targeted marketing to their customers.
Con Edison seeks to play a leadership role in innovative program design and implementation to achieve
State policy goals while also meeting Company goals. The Company is learning from peer utilities across
the country and, in turn, expects its approach to provide useful lessons for other utilities working to
achieve similar environmental, social, economic, and other benefits.14 The suite of programs described
herein is designed to provide Con Edison customers with an energy system that is cleaner and more
sustainable.
13
Examples of coordination include working with NYSERDA on developing an implementation plan to enhance
adoption of energy efficiency in LMI communities and a pay-for-performance pilot.
14
Case 15-E--0302, Proceeding on Motion of the Commission to Implement a Large-Scale Renewable Program and
a Clean Energy Standard, Staff White Paper on a Clean Energy Standard, January 25, 2016,
http://documents.dps.ny.gov/public/Common/ViewDoc.aspx?DocRefId={930CE8E2-F2D8-404C-9E36-71A72123A89D}
8Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
3. Portfolio Forecast: 2019-2020
Budget and Target Summary
All figures in this ETIP/SEEP, including budgets, targets, forecasted expenditures, and benefit cost
analyses (“BCAs”), represent an estimate of planned and projected activities based on the Company’s
annual expenditures on energy efficiency programs as authorized through ETIP, Rate Case Order, NENY
Order, Enhanced Gas EE Order, NPS Order, and authorizations for NWS and REV Demonstration
projects, and other Commission actions. The Company will make any appropriate revisions to this plan
as necessary, pursuant to Commission Orders.15
The Company’s portfolio investments include funding dedicated to incentives for our customers or
market partners, and the use of third-party market actors to work as implementation contractors. The
Company’s portfolio investments also include administrative investments that perform a number of
critical functions that can facilitate evolution and growth of the portfolio over time. For example,
activities within Portfolio Administration include program marketing (see the Marketing and Customer
Engagement section), market research and analytics, including customer segmentation studies and
technical analyses of energy efficiency potential relevant to the Con Edison service territory (see the
Market Research section), training for market partners on offerings and initiatives, and database
development and maintenance.16
Table 1 and Table 2 below include two-year budgets for Con Edison’s electric and gas programs and
portfolios.17
15
DPS Office of Markets and Innovation, Clean Energy Guidance CE-02: ETIP/SEEP Guidance, December 20, 2018.
16
For programs funded pursuant to the Rate Case Order, all costs, including those associated with portfolio
administration, are collected through base delivery rates.
17
In line with the multiyear flexibility granted in the ETIP Order, forecasted budgets and expenditures reflect the
Company’s planned allocation of authorized funds over the multi-year ETIP program cycle.
9Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
Table 1: 2019-2020 Budgets: Electric Portfolio (all $ rounded to nearest thousand)
2019 Funding 2020 Funding
Electric Portfolio 2019 2020 Source1819
Source
Commercial Sector
Commercial Electric
EEPS unspent
Incentives and Services $35,493,000 $41,532,000 ETIP
and/or Base Rates
EEPS unspent
Program Implementation $1,773,000 $3,084,000 ETIP
and/or Base Rates
EEPS unspent
Total Budget $37,266,000 $44,616,000 ETIP
and/or Base Rates
C&I Self-Direct
Incentives and Services $3,548,000 - ETIP
Program Implementation - - ETIP
Total Budget $3,548,000 - ETIP
C&I SEP
Base Rates under EEPS unspent
Incentives and Services $1,765,000 $6,948,000
Current Rate Plan and/or Base Rates
Program Implementation - -
Base Rates under EEPS unspent
Total Budget $1,765,000 $6,948,000
Current Rate Plan and/or Base Rates
Instant Lighting
Base Rates under EEPS unspent
Incentives and Services $4,968,000 $3,968,000
Current Rate Plan and/or Base Rates
Base Rates under EEPS unspent
Program Implementation $639,000 $510,000
Current Rate Plan and/or Base Rates
Base Rates under EEPS unspent
Total Budget $5,607,000 $4,478,000
Current Rate Plan and/or Base Rates
Commercial - TDM20
Base Rates under
Incentives and Services $18,520,000 -
Current Rate Plan
Base Rates under
Program Implementation $3,012,000 -
Current Rate Plan
18
In line with the ETIP Order directive to recover energy efficiency expenditures through rates, 2020 programs will
be funded through base delivery rates. Separately, as provided for in the NENY Order $59,611,120 of unspent EEPS
is allocated towards 2020 electric energy efficiency efforts. Lastly, as proposed by the Company in the April 1 NENY
Filing, unspent ETIP funds have been allocated to Company’s Heat Pump initiative, as additionally discussed in this
ETIP/SEEP.
19
Unspent EEPS funds are allocated proportionally in this ETIP/SEEP according to the relative size of each
respective non-LMI budget item, including program budgets, portfolio-wide admin and portfolio-wide EM&V
expenses.
20
Some Company energy efficiency initiatives, such as the Multifamily program have portions of its program
focused on delivering energy efficiency in targeted locations of higher value; the Company supplements these
efforts with funds allocated to NWS. Consequently, to the extent known, specific planned NWS expenditures and
anticipated load relief provided in the targeted areas are detailed separately in NWS quarterly reports. For funds
authorized for REV Demonstration projects, please refer to table 3.
10Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
Base Rates under
Total Budget $21,532,000 -
Current Rate Plan
Residential Sector
Marketplace
Base Rates under EEPS unspent
Incentives and Services $314,000 $661,000
Current Rate Plan and/or Base Rates
Base Rates under EEPS unspent
Program Implementation $846,000 $1,784,000
Current Rate Plan and/or Base Rates
Base Rates under EEPS unspent
Total Budget $1,160,000 $2,445,000
Current Rate Plan and/or Base Rates
Pilots Electric
Incentives and Services $771,000 - ETIP
Program Implementation $229,000 - ETIP
Total Budget $1,000,000 - ETIP
Pilots Electric
Base Rates under EEPS unspent
Incentives and Services $771,000 $1,389,000
Current Rate Plan and/or Base Rates
Base Rates under EEPS unspent
Program Implementation $229,000 $595,000
Current Rate Plan and/or Base Rates
Base Rates under EEPS unspent
Total Budget $1,000,000 $1,984,000
Current Rate Plan and/or Base Rates
Residential Electric
EEPS unspent
Incentives and Services $1,228,000 $981,000 ETIP
and/or Base Rates
EEPS unspent
Program Implementation $351,000 $280,000 ETIP
and/or Base Rates
EEPS unspent
Total Budget $1,579,000 $1,261,000 ETIP
and/or Base Rates
Residential Home Energy Report
Incentives and Services - -
Base Rates under EEPS unspent
Program Implementation $7,445,000 $4,050,000
Current Rate Plan and/or Base Rates
Base Rates under EEPS unspent
Total Budget $7,445,000 $4,050,000
Current Rate Plan and/or Base Rates
Residential Upstream HVAC
Base Rates under EEPS unspent
Incentives and Services $4,711,000 $3,762,000
Current Rate Plan and/or Base Rates
Base Rates under EEPS unspent
Program Implementation $553,000 $442,000
Current Rate Plan and/or Base Rates
Base Rates under EEPS unspent
Total Budget $5,264,000 $4,204,000
Current Rate Plan and/or Base Rates
Retail Lighting
Base Rates under EEPS unspent
Incentives and Services $7,289,000 $5,903,000
Current Rate Plan and/or Base Rates
Base Rates under EEPS unspent
Program Implementation $2,092,000 $1,694,000
Current Rate Plan and/or Base Rates
Base Rates under EEPS unspent
Total Budget $9,381,000 $7,597,000
Current Rate Plan and/or Base Rates
Retailer Incentive
Base Rates under EEPS unspent
Incentives and Services $1,686,000 $2,290,000
Current Rate Plan and/or Base Rates
11Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
Base Rates under EEPS unspent
Program Implementation $85,000 $115,000
Current Rate Plan and/or Base Rates
Base Rates under EEPS unspent
Total Budget $1,771,000 $2,405,000
Current Rate Plan and/or Base Rates
Smart Kids Electric
Base Rates under EEPS unspent
Incentives and Services $1,563,000 $2,029,000
Current Rate Plan and/or Base Rates
Base Rates under EEPS unspent
Program Implementation $308,000 $399,000
Current Rate Plan and/or Base Rates
Base Rates under EEPS unspent
Total Budget $1,871,000 $2,428,000
Current Rate Plan and/or Base Rates
Multifamily Sector
Multifamily Electric
EEPS unspent
Incentives and Services $5,810,000 $17,001,000 ETIP
and/or Base Rates
EEPS unspent
Program Implementation $1,279,000 $3,744,000 ETIP
and/or Base Rates
EEPS unspent
Total Budget $7,089,000 $20,745,000 ETIP
and/or Base Rates
Multifamily - TDM21
Base Rates under
Incentives and Services $11,252,000 -
Current Rate Plan
Base Rates under
Program Implementation $2,478,000 -
Current Rate Plan
Base Rates under
Total Budget $13,730,000 -
Current Rate Plan
Low-Moderate Income Sector
Incentives and Services - TBD EEPS Unspent
Program Implementation - TBD EEPS Unspent
Total Budget - $11,922,000 EEPS Unspent
Heat Pumps
Unspent EEPS and
Incentives and Services - $4,628,000 ETIP and/or base
rates
Unspent EEPS and
Program Implementation - $926,000 ETIP and/or base
rates
Unspent EEPS and
Total Budget - $5,554,000 ETIP and/or base
rates
Total Portfolio
Total Electric Portfolio
Total Commercial Programs $69,718,000 $56,042,000
Total Residential Programs $30,471,000 $26,374,000
Total Multifamily Programs $20,819,000 $20,745,000
Total LMI - $11,922,000
Total Heat Pumps - $5,554,000
21
See footnote 20
12Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
Portfolio Administration22 $13,764,000 $13,764,000
Portfolio EM&V $6,945,000 $6,945,000
Total Electric Portfolio Budget $141,717,000 $141,346,000
Total Commission Authorized
$159,178,000 $145,789,00023
Budget
Table 2: 2019-2020 Budgets: Natural Gas Portfolio (all $ rounded to nearest thousand)24
2019 Funding 2020 Funding
Gas Portfolio 2019 2020 Source25
Source
Commercial Sector
Commercial Gas
ETIP, unspent ETIP, Unspent ETIP,
Incentives and Services $6,146,000 $8,783,000 and/or unspent unspent EEPS
EEPS and/or Base Rates
ETIP, unspent ETIP, Unspent ETIP,
Program Implementation $1,113,000 $921,000 and/or unspent unspent EEPS
EEPS and/or Base Rates
ETIP, unspent ETIP, Unspent ETIP,
Total Budget $7,259,000 $9,704,000 and/or unspent unspent EEPS
EEPS and/or Base Rates
Residential Sector
Residential Gas
ETIP, unspent ETIP, Unspent ETIP,
Incentives and Services $1,762,000 $2,223,000 and/or unspent unspent EEPS
EEPS and/or Base Rates
ETIP, unspent ETIP, Unspent ETIP,
Program Implementation $1,543,000 $1,560,000 and/or unspent unspent EEPS
EEPS and/or Base Rates
ETIP, unspent ETIP, Unspent ETIP,
Total Budget $3,305,000 $3,783,000 and/or unspent unspent EEPS
EEPS and/or Base Rates
Residential Home Energy Report Gas
Incentives and Services - -
ETIP, unspent ETIP, Unspent ETIP,
Program Implementation $356,000 $562,000 and/or unspent unspent EEPS
EEPS and/or Base Rates
ETIP, unspent ETIP, Unspent ETIP,
Total Budget $356,000 $562,000 and/or unspent unspent EEPS
EEPS and/or Base Rates
Smart Kids Gas
Incentives and Services $297,000 $223,000 ETIP, unspent ETIP, Unspent ETIP,
22
Does not include labor costs
23
Includes $59,611,000 allocated from unspent EEPS in NENY Order
24
Unspent EEPS and ETIP funds are allocated proportionally in this ETIP/SEEP according to the relative size of each
respective budget item, including program budgets, portfolio-wide admin and portfolio-wide EM&V expenses.
25
In line with the ETIP Order directive to recover energy efficiency expenditures through rates, 2020 programs will
be funded through base delivery rates.
13Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
and/or unspent unspent EEPS
EEPS and/or Base Rates
ETIP, unspent ETIP, Unspent ETIP,
Program Implementation $167,000 $125,000 and/or unspent unspent EEPS
EEPS and/or Base Rates
ETIP, unspent ETIP, Unspent ETIP,
Total Budget $464,000 $348,000 and/or unspent unspent EEPS
EEPS and/or Base Rates
Marketplace
ETIP, unspent ETIP, Unspent ETIP,
Incentives and Services $54,000 $96,000 and/or unspent unspent EEPS
EEPS and/or Base Rates
ETIP, unspent ETIP,
Program Implementation $48,000 - and/or unspent
EEPS
ETIP, unspent ETIP, Unspent ETIP,
Total Budget $102,000 $96,000 and/or unspent unspent EEPS
EEPS and/or Base Rates
Pilots
ETIP, unspent ETIP, Unspent ETIP,
Incentives and Services $297,000 $171,000 and/or unspent unspent EEPS
EEPS and/or Base Rates
ETIP, unspent ETIP, Unspent ETIP,
Program Implementation $131,000 $73,000 and/or unspent unspent EEPS
EEPS and/or Base Rates
ETIP, unspent ETIP, Unspent ETIP,
Total Budget $428,000 $244,000 and/or unspent unspent EEPS
EEPS and/or Base Rates
Multifamily Sector
Multifamily Gas
ETIP, unspent ETIP, Unspent ETIP,
Incentives and Services $9,984,000 $10,092,000 and/or unspent unspent EEPS
EEPS and/or Base Rates
ETIP, unspent ETIP, Unspent ETIP,
Program Implementation $2,741,000 $2,000,000 and/or unspent unspent EEPS
EEPS and/or Base Rates
ETIP, unspent ETIP, Unspent ETIP,
Total Budget $12,725,000 $12,092,000 and/or unspent unspent EEPS
EEPS and/or Base Rates
Total Portfolio
Total Gas Portfolio
Total Commercial Programs $7,259,000 $9,704,000
Total Residential Programs $4,655,000 $5,033,000
Total Multifamily Programs $12,725,000 $12,092,000
Portfolio Administration26 $2,682,000 $3,431,000
Portfolio EM&V $1,330,000 $1,702,000
Total Gas Portfolio Budget $27,321,000 $30,256,000
26
Does not include labor costs
14Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
Total Commission Authorized
$20,263,000 $30,260,00027
Budget
Table 3: 2019-2020 REV Demos Portfolio (all $ rounded to nearest ten thousand)28
Portfolio 2019 2020 Funding Source
Connected Homes $2,700,000 - REV Demos
Building Efficiency
Marketplace $350,000 - REV Demos
EnergyFit $1,400,000 $1,600,000 REV Demos
Total REV Demos $4,450,000 $1,600,000 REV Demos
Table 4: Use of Unspent Electric ETIP Funds29
Budget Year of Unspent Year In Which Prior-Year Unspent Funds Will Be Used
Funds 2019 2020 Beyond
2020
2016 $0 $0 $0
2017 $0 $0 $0
201830 $61,629,253 $0 $0
201931 $7,088,193 $1,804,904 $77,284,925
2020 $0 $0 $0
27
The Company notes that gas energy efficiency expenditures reflect a transfer of $9.9 million from electric EE to
gas EE as provided for in the NPS Order.
28
The Company pursues REV Demonstration projects to test new business models and consequently those projects
do not have explicit savings targets.
29
Table is not inclusive of $59,611,120 of unspent EEPS funds which have been repurposed to the Company’s 2020
ETIP funding authorization, as per the NENY Order. Further, the table is also not inclusive of $73,000,000 in the
Rate Case budget as it is an annual allocation subject to year-end reconciliation.
30
The Company is reporting unspent funds on a “first-in, first-out” basis, given ETIP is a rolling authorization of
funds allowing the Company to borrow from a future year or lend to a future year. For example, if the Company
had $1 of unspent funds from 2016, the Company assumes it would use the unspent $1 in 2017 (the year following
2016) prior to using any funds allocated for 2017. As a result, unspent funds attributed to 2016 and 2017 were fully
expended in 2017 and 2018, respectively.
31
Remainder of ETIP unspent funds to be allocated towards proposed Heat Pump initiative as per April 1 NENY
Filing.
15Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
Table 5: Use of Unspent Gas ETIP Funds32
Budget Year of Unspent Year In Which Prior-Year Unspent Funds Will Be Used
Funds 2019 2020 Beyond 2020
2016 $0 $0 $0
2017 $3,012,436 $3,012,436 $0
2018 $2,671,763 $0 $0
2019 $11,795,135 $0 $0
2020 $0 $0 $0
Table 6 and Table 7 include two-year targets for Con Edison’s electric and gas programs and portfolios.
Table 6: 2019-2020 Targets: Electric Portfolio
Electric Portfolio 2019 2020
Commercial Sector
Commercial Electric
MWh 90,358 108,182
C&I Self-Direct
MWh 14,545 -
C&I SEP
MWh 4,278 16,846
Instant Lighting
MWh 59,893 47,827
Commercial - TDM33
MWh 52,209 -
Residential Sector
Marketplace
MWh 3,131 6,604
Residential Electric
MWh 3,422 2,733
Residential Home Energy Reports
MWh 55,143 30,000
Residential Upstream HVAC
MWh 5,989 4,783
32
This table uses the “first-in, first-out” method described in footnote 30, supplemented with funds as provided
for in the ETIP, Enhanced Gas EE, and NPS Orders
33
See footnote 20
16Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
Retail Lighting
MWh 90,949 73,650
Retailer Incentive
MWh 2,515 3,416
Smart Kids Electric
MWh 7,786 10,111
Multifamily Sector
Multifamily Electric
MWh 15,059 44,067
Multifamily - TDM34
MWh 29,166
Low-Moderate Income Sector
LMI
MWh - 20,680
Total Portfolio
Total Electric Portfolio
Total Commercial Programs 221,284 172,854
Total Residential Programs 168,935 131,297
Total Multifamily Programs 44,225 44,067
Total LMI - 20,680
Total Portfolio 434,444 368,898
Heat Pumps
MMBtu - 23,546
Table 7: 2019-2020 Targets: Natural Gas Portfolio
Gas Portfolio 2019 2020
Commercial Sector
Commercial Gas
MMBtu 219,748 297,300
Residential Sector
Residential Gas
MMBtu 47,089 66,000
Residential Home Energy Report Gas
MMBtu 20,928 53,045
Smart Kids Gas
34
See id.
17Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
MMBtu 20,928 19,727
Marketplace
MMBtu 5,232 5,232
Test & Learn Pilots
MMBtu - -
Multifamily Sector
Multifamily Gas
MMBtu 292,998 334,921
Total Portfolio
Total Gas Portfolio
Total Commercial Programs 219,748 297,300
Total Residential Programs 94,177 144,004
Total Multifamily Programs 292,998 334,921
Total Portfolio 606,923 776,225
18Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
Forecasted Portfolio-Level Activity
Tables 8 through 11 below include forecasted expenditures and achievements for Con Edison’s
portfolio of electric and natural gas programs.35
Table 8: Forecasted Electric Expenditures (all $ rounded to nearest thousand)
Forecasted Expenditures
Budgets
2019 2020
2019 $141,717,000 -
2020 - $141,346,000
Total Portfolio36 $141,717,000 $141,346,000
Table 9: Forecasted Gas Expenditures (all $ rounded to nearest thousand)
Forecasted Expenditures
Budgets
2019 2020
2019 $27,321,000 -
2020 - $30,256,000
Total Portfolio37 $27,321,000 $30,256,000
Table 10: Forecasted Electric Program Achievements
Forecasted Achievements (Gross MWh)
Targets
2019 2020
2019 434,444 -
2020 - 368,898
Total Portfolio 434,444 368,898
Table 11: Forecasted Gas Program Achievements
Forecasted Achievements (Gross MMBtu)
Targets
2019 2020
2019 606,923 -
2020 - 776,225
Total Portfolio 606,923 776,225
35
Con Edison defines achievements (analogous to acquired) as after the post-inspection process and a desk review
is completed, and/or upon receipt of relevant sales data and documentation.
36
In line with the multiyear flexibility granted in the ETIP Order, forecasted expenditures reflect the Company’s
planned allocation of authorized funds over the multi-year ETIP program cycle.
37
In line with the multiyear flexibility granted in the ETIP Order, forecasted expenditures reflect the Company’s
planned allocation of authorized funds over the multi-year ETIP program cycle.
19Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
Evaluation, Measurement and Verification
The Company’s Evaluation, Measurement, and Verification (“EM&V”) process continues to transition
from the traditional program-specific process and impact evaluations to new methods as described
by the Evaluation, Measurement & Verification Guidance, dated November 1, 2016.38 Conventional
EM&V activities were conducted as discrete, often unrelated efforts that would yield results after a
program was introduced. Con Edison has begun to leverage existing Quality Assurance/Control
(“QA/QC”) activities routinely conducted by the Company and internal market research and
analytics, as well as new functions around advanced measurement and verification, to enhance the
timeliness and accuracy of data collection for EM&V. The integration of the aforementioned
functions with the advent of advanced methods and new technologies, specifically Advanced
Metering Infrastructure (“AMI”) and emerging industry tools, such as the Open Efficiency Initiative,
will enable the Company to coordinate numerous methods of analysis and associated baselines to
document the real impact of programs with a higher degree of granularity.39 Specifically, such
methods are anticipated to be particularly useful to inform the adoption, as well as energy and
demand load relief, of distributed energy resources (“DERs”) on both a locational and temporal basis.
The Company projects the budget for EM&V activities in 2019-2020 to be roughly proportional with
historical expenditure levels, recognizing that as program portfolios change, the exact expenditure may
vary from year to year. When a program is in pilot phase, evaluation will be a larger percentage of the
overall budget, decreasing as programs become more mature and savings are better understood. The
Company is also expanding the role of QA/QC and EM&V activities to estimate savings more accurately.
The EM&V budget will be distributed across all programs consistent with regulatory guidance so that
each activity serves to complement and inform future efforts.
As the Company’s portfolio includes more upstream, behavioral and targeted demand management
programs, these too will require new methods of EM&V that rely on a combination of both
conventional survey efforts and actual, direct-measured results. In the case of NWS and NPS programs,
EM&V methods focus on verifying peak load reduction and peak day gas savings. When the New York
Technical Reference Manual (“TRM”) does not specify how to calculate these non-standard peaks, the
Company has worked with Staff to use secondary sources and methods, which EM&V continues to help
refine. To the extent possible and appropriate, the Company intends to combine conventional survey
efforts with market research and potential study efforts to better characterize the impact of programs
38
CE-05 EMV Guidance
http://www3.dps.ny.gov/W/PSCWeb.nsf/96f0fec0b45a3c6485257688006a701a/255ea3546df802b585257e38005460f
9/$FILE/CE-05-EMV%20Guidance%20Final%20%2011-1-2016.pdf
39
The Open Efficiency Initiative is a federally funded Department of Energy effort to develop an open source
platform integrating a variety of existing tools, including the EPA Portfolio Manager, the DOE Standard Energy
Efficiency Data Platform, Building Energy Asset Score, and Lawrence Berkley National Laboratory’s Automated
Measurement and Verification and the National Renewable Energy Laboratory’s BuildingSync standardized
language.
20Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
on our customers in order to best determine energy and demand savings. Process evaluations
generally occur within the first two years of new or modified programs, or simultaneously as part of
programs in a pilot or “Test and Learn” phase of development. As results emerge from these projects,
the Technical Resource Manual (“TRM”) will be revised to include this information even as additional
progress is made to move toward the use of existing conditions or metered actual baselines to quantify
real savings reductions at the system level and at the customer meter.
Impact Evaluation
Con Edison intends to continue conducting strategic and targeted impact evaluation activities
during the program year cycle on a rolling basis by employing both new, advanced techniques and
incremental reporting to provide more transparent, granular, and actionable feedback to
stakeholders and to identify opportunities to improve effectiveness and persistence of the
program’s measures for future years.
At the start of each impact evaluation, Con Edison identifies the focus of the required evaluation
research. This may include:
• assessing measure-specific realization rates for both energy and demand savings;
• segmenting measure savings by sector, building type, location, time of use;
• persistence of measure savings;
• informing future TRM updates;40
• confirming and updating estimates on assumed install rates for self-install programs;
• supporting future program planning efforts;
• assessing target market and market saturation estimates through baseline studies;
• informing cost effectiveness; and
• identifying opportunities to add value to program design and operations.
All impact evaluation work will comply with evaluation guidelines and industry standards such as the
2012 State and Local Energy Efficiency Action Network (“SEE Action”) Energy Efficiency Programs
Impact Evaluation Guide and the Uniform Methods Project as appropriate. 41
40
The TRM provides a standardized and transparent approach for measuring program energy savings across New
York State’s energy efficiency programs.
http://www3.dps.ny.gov/W/PSCWeb.nsf/All/72C23DECFF52920A85257F1100671BDD?OpenDocument
41
State and Local Energy Efficiency Action Network. 2012. Energy Efficiency Program Impact Evaluation Guide.
Prepared by Steven R. Schiller, Schiller Consulting, Inc., www.seeaction.energy.gov; and;
National Renewable Energy Laboratory (NREL), The Uniform Methods Project: Methods for Determining Energy
Efficiency Savings for Specific Measures, NREL/SR-7A40-63417 February 2015, Prepared by Hossein Haeri, The
Cadmus Group, Inc., Portland, Oregon. https://energy.gov/sites/prod/files/2015/02/f19/UMPIntro1.pdf
21Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
The Company believes that integrating EM&V on the front end of proposed projects will enable
accumulation of more pertinent information on equipment and systems to identify how actual
savings will be acquired and achieved in the most cost-effective manner, while also deriving the
greatest value from such activities by identifying specific applications that yield the greatest benefit
to our customers and the system. The determination of more clearly defined baselines and usage
patterns of energy efficiency, demand management, and DER measures will lead to better
quantification of their impact in a more expedient manner providing not only an assessment of
savings, but also benefits to individual end users and service providers to further improve project
performance in the future.
Additionally, the Company supports the industry transitioning from assumptions or survey driven
energy savings analysis to using more real-time means of assessment, through AMI, data from
connected devices, or continued access to billing data, that provide actual energy and demand savings
consistent with advanced EM&V methods premised on the customers’ own unique baseline. By doing
so, the Company can better assess what influences customer performance and perseverance of
savings.
Process Evaluation
Process evaluations are generally used to assess and analyze program operations for new programs,
modified programs, or those in a pilot or “Test and Learn” phase of development. Process evaluations
are also effective at diagnosing problems in programs that are underperforming or experiencing
operational challenges. Because process evaluations most often examine program or portfolio
operations, they can identify ways to make program or portfolio enhancements and improvements
that reduce operating costs, expedite delivery, improve satisfaction, improve realization rates, and
fine-tune objectives. Therefore, the Company intends to integrate the functions of such evaluations
with the process of new program development so such lessons may be adopted early, and the effect
evaluated. The Company believes that using EM&V results in such a real-time environment will allow it
to make regular program implementation decisions that best reflect current program issues and
market conditions while keeping pace with rapidly developing technologies and program changes. All
such process evaluation work will comply with the prevailing evaluation guidelines.42 Selective
research activities may also take place for existing programs that do not require a full process
evaluation or otherwise are cross-functional or inter-territorial as appropriate and recognized by the
recent guidance document.
Measurement & Verification
42
CE-05 EMV Guidance
http://www3.dps.ny.gov/W/PSCWeb.nsf/96f0fec0b45a3c6485257688006a701a/255ea3546df802b585257e38005460f
9/$FILE/CE-05-EMV%20Guidance%20Final%20%2011-1-2016.pdf
22Energy Efficiency Transition Implementation/System Energy Efficiency Plan (ETIP/SEEP) 2019-2020 | Consolidated Edison
M&V is playing an increasingly integral role in the activities of energy efficiency programs, not only to
verify the savings associated with a particular measure or application, but to also better characterize the
benefits attributable to new programs and measures, including DERs. Such activities provide data for (1)
use in Company load forecasts (i.e., load shapes), (2) improving accuracy of deemed savings
assumptions, (3) estimation of operational and behavioral influences, and (4) identifying opportunities
for new technologies and services for inclusion in program portfolios.
All M&V work is expected to meet and comply with the International Performance Measurement
and Verification Protocol (“IPMVP”) standards. The protocol selected within IPMVP depends on the
measures included within a project and/or historical performance of the measure. Each project
selected will receive a comprehensive M&V plan that will include:
• Approach for engineering desk review/ preliminary analysis of project savings;
• Pre- and post-installation M&V approach (e.g., IPMVP option, Uniform Methods Project,
pre/post work; data logging); and
• Sampling information.
Pre Site inspections (preliminary) will collect data to verify:
• Existing equipment being replaced;
• Equipment operation (e.g., hours of operation, permanent installation, primary compared to
standby use); and
• Any other information needed to verify program eligibility and establish a baseline.
Post Site inspections (final) will collect data to verify:
• Equipment installation (e.g., quantities, nameplate);
• Equipment operation (e.g., hours of operation, permanent installation, primary versus standby
use); and
• Any other information needed to verify reported savings.
Each M&V effort will receive a preliminary and final report that will quantify savings for the
respective effort (i.e., project, site, or measure specific).
The Company intends to use M&V data to enhance impact evaluations. The data will be used to
either supplement the impact evaluation to provide more accurate results, or to offset required
impact data to reduce costs. The M&V scope will also accommodate the framework of activities, as
listed below.
• Real-Time Continuous Program Design: M&V will be conducted on a sample of measures
representative of the number of projects and types of technologies utilized as well as
technologies deemed to be highly uncertain as to their impact for energy efficiency
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