State Energy Efficiency Policy Database

Energy efficiency programs are offered by Rhode Island's regulated distribution utilities. The major investor-owned utility operating in the state, Narragansett Electric, is a National Grid Company and offers a comprehensive slate of programs that parallel National Grid's offerings in Massachusetts. Hearings are held once a year before the Rhode Island Public Utilities Commission to review program plans. A collaborative of stakeholders reviews these plans and makes recommendations to the RI PUC on the programs. Program costs are trued up annually each May.

Energy efficiency's role in planning and meeting resource needs has been greatly increased in Rhode Island as a result of recent legislation. The Rhode Island legislature unanimously passed sweeping new legislation on June 23, 2006: the Comprehensive Energy Conservation, Efficiency and Affordability Act of 2006. This act greatly increases the role and requirements for acquisition of demand-side resources—requiring utilities to acquire all cost-effective energy efficiency. The act also establishes new requirements for strategic long-term planning and purchasing of least-cost supply and demand resources. This act also established a new decision-making body—the "Energy Efficiency and Resources Management Council," which gives consumer and environmental interests an official role in energy planning and purchase decisions. The Council has a specific legislative mandate and funding to engage in critical energy resource decisions facing Rhode Island. The act also created a statewide natural gas conservation program. National Grid claimed savings of 81,453 MWh from its Rhode Island electric energy efficiency programs in 2009.

Reported budgets for energy efficiency programs for 2011, and electricity savings for 2010, are in the State Spending and Savings Tables.

Links:

• The Comprehensive Energy Conservation, Efficiency and Affordability Act of 2006
• Rhode Island Energy Efficiency and Resource Management Council
• Database of State Incentives for Renewables and Efficiency

Summary: Electric: ~1.3% in 2010; 1.5% in 2011; Council proposed 1.7% in 2012, 2.1% in 2013, and 2.5% in 2014.  Natural Gas: ~0.4% of sales in 2011; Council proposed 0.75% in 2012, 1.0% in 2013, and 1.2.% in 2014

The Rhode Island legislature unanimously passed sweeping new legislation on June 23, 2006: the Comprehensive Energy Conservation, Efficiency and Affordability Act of 2006 (R.I.G.L § 39-1-27.7). This act establishes a Least Cost Procurement mandate—requiring utilities to acquire all cost-effective energy efficiency with input and review from the Energy Efficiency and Resource Management Council (EERMC). Under the Least Cost Procurement mandate, National Grid is required to participate in strategic long-term planning and invest in all energy efficiency that is cost-effective and cheaper than supply on behalf of its customers.  

The act also established requirements for strategic long-term planning and purchasing of least-cost supply and demand resources. Utilities must submit 3-year and annual energy efficiency procurement plans, which offer program details, as well as spending and savings goals. Hearings are held once a year before the Rhode Island Public Utilities Commission to review program plans. The current 3-year goals are 1.1% in 2009, 1.12% in 2010, and 1.36% in 2011 (Docket No. 4116). The EERMC has proposed savings target of 1.7% in 2012, 2.1% in 2013, and 2.5% in 2014, which are currently being reviewed by the Commission (EERMC Report).

Rhode Island’s EERS policy also includes natural gas targets. On November 1, 2010 National Grid proposed savings targets for 2011 of 173,379 MMBtu and spending goals of $10,715,000. Despite a 2010 legislative mandate to procure all cost-effective natural gas efficiency, the PUC also pointed to a legislative funding provision that it interpreted as setting a funding ceiling. As a result, the Commission approved natural gas efficiency savings for National Grid of 56,145 Annual MMBtu Savings in 2011 (~0.29% of sales) (Docket 2409). The PUC has indicated that it will promptly reopen the proceeding if the legislative language in question is amended (ENE Report and H 5281).  On May 18, 2011, the Rhode Island House passed legislation to clarify the full funding of all cost-effective natural gas efficiency.  The Rhode Island Senate is expected to take up the legislation shortly.  The EERMC has proposed savings target of 0.75% in 2012, 1.0% in 2013, and 1.2% in 2014, which are currently being reviewed by the Commission.

Links:

• Authority: R.I.G.L § 39-1-27.7, 2006
• Docket No. 4116. February 8, 2010.(Revised Attachment B)
• EERMC Report
• Docket 4209. January 21, 2011
• ENE (Environment Northeast), A Boost for Efficiency in Rhode Island
• H 5281

Rhode Island has had a shareholder incentive for electric and gas since 2005 and 2007, respectively. The Narragansett Electric Company, d/b/a National Grid (NG) can earn incentives for both electric (kWh) and gas (MMBtu) savings. There is a target base incentive rate of 4.4% for both electric and gas in 2010 applied to the eligible spending budget for 2010. The threshold performance level for savings by sectors is set at 60% of the annual energy savings goals for the sector. (Docket No. 3635)

Links:

• Rhode Island Public Utility Commission docket search