Dear Valued CL&P Customer:
We regret to inform you that as of Wednesday, May 21, 2003, The Connecticut Light and Power Company (CL&P) can no longer make financial incentives available for residential and business conservation projects.
We are taking this step because conservation funding may not be available for fiscal years 2003-2005. State budget discussions may lead to the possibility of resources being transferred from the Conservation and Load Management (C&LM) Fund and credited to the resources of the General Fund. CL&P recognizes the value conservation programs provide to customers and to the Connecticut economy, but it cannot, in good conscience, commit to paying funds that may not be available in the future.
According to the Energy Conservation Management Board (ECMB), which oversees this conservation funding mechanism, the $87 million that state consumers annually pay into the fund -- through a three-tenths of cent per kilowatt-hour charge -- pays for programs that will save approximately $373 million over the lifetime of the conservation measures installed. Those programs last year saved nearly $25 million or 246,000,000 kilowatt-hours, enough to power 31,000 typical Connecticut homes for a year.
Nearly 5,000 commercial and industrial customers participate in conservation programs, increasing efficiency, reducing energy consumption and keeping Connecticut businesses operating here rather than relocating to areas with lower energy costs. In 2002, as a direct result of participation in conservation programs, approximately 1,000 jobs were created and hundreds more saved.
Without energy-efficiency programs, which are one of the lowest-cost tools available to address transmission congestion problems, the state’s electric customers may have to bear the brunt of the state’s new Standard Market Design Adjustment Charges, which can range from $50 million to $300 million. This charge, imposed by Independent System Operator New England (ISO-NE), as a result of Federal mandates, raised the price of electricity in heavily populated, high-use regions such as Connecticut. In addition, ISO-NE says “aggressive conservation” is one of the solutions that could allow the region to maintain adequate reliability to be able to meet this summer’s energy needs.
Please realize CL&P is working closely with state regulators and lawmakers to preserve as much of the C&LM fund as practicable.
CL&P values your loyalty as a customer and apologizes for any inconvenience this action may cause. Continue to visit cl-p.com for updates.
