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Helping Duquesne Light Company design and implement energy efficiency programs to meet its Pennsylvania Act 129 obligations


“MCR’s market segmentation approach to program planning helped us achieve one of the state’s lowest acquisition rates ($0.12/annual kWh) and highest cost-effectiveness ratios (portfolio TRC test ratio 3.1:1). This is remarkable given that we have Pennsylvania’s lowest avoided cost. In addition to the portfolio’s solid performance, the approach served to preserve our program budgets and insure customer equity.”

—Dave Defide, Manager of Customer Programs


Background

Signed into law by Governor Ed Rendell in 2008, Act 129 required Duquesne Light Company, and other electric distribution companies in Pennsylvania, to develop cost effective plans that would reduce electricity consumption across their service territory by 1 percent by 2011 and 3% by 2013. In order to meet these requirements, Duquesne Light selected MCR to design and implement an energy efficiency plan.

Solution

MCR worked with Duquesne Light to develop an energy efficiency potential forecast and, based on forecast potential, develop a portfolio of 17 energy efficiency and demand-response programs serving the residential, low income, commercial, industrial and governmental customer sectors. The programs were designed and benchmarked to best practices to achieve savings in the market segments identified by the potential forecast.

Working with the regulatory and legal team, we developed the plan filing along with expert testimony and participated in interactions with the Pennsylvania Public Utility Commission. When the plan was approved, we helped the client’s energy efficiency department develop operational processes and supporting systems; assisted with the solicitation, evaluation and selection of program implementation contractors; and interacted with the statewide evaluator and EM&V consultant to address evaluation, measurement and verification matters.

Results

Duquesne Light achieved its energy efficiency savings ahead of target, attaining energy efficiency reductions of 521,000,000 kWh (123% of goal) through the end of the program on May 31, 2013. Duquesne Light also achieved peak demand reductions that were 4.5% of peak load. Portfolio EM&V realization rates exceeded 95% as measured by an independent evaluation contractor and confirmed by the PA PUC Statewide Evaluator.