Energy-Efficiency Funds and Demand Response Programs, Rhode Island

Updated September 2008

Below you will find questions and answers regarding Rhode Island's utility energy efficiency programs, including options for load management, demand response, and distributed energy resources, and information about state-sponsored energy efficiency programs.

What public-purpose-funded energy efficiency programs are available in my state?

Rhode Island's restructuring law includes a system benefits charge of 0.3 mills/kWh for energy-efficiency programs through 2012. Over $20 million was spent across all program types (including low-income and residential) in 2007. The programs are administered by the local utilities.

Rebates are available through two programs offered state-wide:

The MotorUp initiative provides rebates for premium efficiency three-phase motors up to 200 horsepower. Rebates range from $45 to $700, depending on horsepower and enclosure (open or closed).
The Cool Choice program provides rebates for high-efficiency HVAC equipment, including packaged air conditioners, air-to-air heat pump systems, water-source heat pumps, and packaged terminal air conditioners. Dual enthalpy economizer controls, demand-controlled ventilation, and electronically commutated motors (ECMs) for supply fans are also included in the program.

National Grid offers a variety of energy efficiency services to its electric customers, all of which are organized under two initiatives:

In addition to this northeast regional program, National Grid also offers a variety of energy efficiency services, all of which are organized under two initiatives:

The Large Business Programs are for either new construction or existing buildings, and include: (1) Rebates for energy-efficient lighting, VSDs, HVAC equipment, dry-type transformers, compressed air systems, and other custom measures; (2) Technical assistance in identifying, implementing, and evaluating energy efficiency opportunities for new construction, renovations, and equipment replacement; (3) Competitive financing of energy-efficient equipment and projects; (4) Building commissioning to verify that newly installed systems are operating according to specifications; and (5) Fixed low prices, through the "Buyers' Alliance," for lighting materials such as electronic ballasts, high-efficiency fixtures, and energy-efficient lamps.
The Small Business Program pays 70% of the cost of the installation of energy-saving improvements and finances the remaining 30% interest-free for up to 24 months. The program is open to customers with an average demand of 200 kilowatts or less. Free energy audits are also offered.

National Grid also participates in the Building Operator Certification (BOC) initiative, which seeks to train and certify building operators to optimize the operations of their facilities.

National Grid's Business Energy Efficiency Services for Gas Customers (formerly Keyspan) offer several gas efficiency programs, including the following:

Prescriptive rebates are offered for common controls measures, such as programmable thermostats, boiler reset controls, and steam traps.
High efficiency gas heating and water heating rebates help cover the cost difference between standard efficiency and high efficiency gas space- and water-heating equipment, such as furnaces, condensing unit heaters, and direct fired heaters. Rebates are limited to 50 percent of equipment cost, capped at $100,000 per project.
The Energy Efficiency Engineering Co-Funding Program (PDF 170 KB) offers cost sharing up to 50% (limited to $10,000 per project) for engineering studies aimed at improving efficiency of gas end uses. Download Adobe Reader.

What utility energy efficiency programs are available to me?

For utility-administered energy efficiency programs, see the previous section.

What load management/demand response options are available to me?

The Independent System Operator New England Inc. (ISO-NE) offers its Demand Response Programs, which provide payments to electricity users for load reductions (of as little as 100 kW), either by reducing usage or by operating on-site generation during periods of high demand. Customers may participate in the program through any participating member ("Enrolling Participant") of the New England Power Pool, such as a utility company, power marketer, or competitive energy supplier. ISO-NE offers several options:

The Real-Time Demand Response Program provides an opportunity for customers to receive payments for voluntarily responding to system emergencies. Participants are paid for actual load reductions, based on the higher of the real time locational marginal price (LMP) or a guaranteed floor price ($350/MWh for customers that can respond within 2 hours and $500/MWh for those that can respond within 30 minutes). Participants may receive additional incentives by qualifying as an installed capacity (ICAP) resource for their load reduction capacity, although response to system emergencies then becomes mandatory. In order to facilitate notification of emergency events and verification of load curtailments, customers must have an approved Internet-Based Communication System (IBCS) installed.
The Real-Time Profile Response Program provides remuneration to customers without interval metering for voluntarily responding to system emergencies. The enrolling participant must have the physical ability to interrupt loads at the customer's facility within 30-minutes' notice of a system emergency. Payment for verified load reductions is based on the real-time LMP, with a $100/MWh floor price. Participants may receive additional incentives by qualifying as an ICAP Resource for their load reduction capacity, although response to system emergencies then becomes mandatory.
The Real-Time Price Response Program provides customers with the opportunity to receive payments for voluntarily reducing load during periods when the real-time LMP is projected to be high. ISO-NE will notify participants either the night before or day of an event if the LMP is expected to exceed $100/MWh ($0.10/kWh). Participants can voluntarily respond to the notification and submit load data to verify their load reductions. Payment for verified load reductions is based on the real-time LMP, with a $100/MWh floor price. Customers must have interval metering installed at their facility to participate in this program.
The Day-Ahead Option is a more sophisticated variant of the Real-Time Price Response Program. Customers submit offers of hourly load reductions into the day-ahead market and are then notified by their enrolling participant if the offers are accepted. If so, the customer must drop load during the cleared hours but is remunerated by the greater of its bid or the actual clearing price for those hours.

ISO-NE's Forward Capacity Market (FCM) allows customers to bid their load reduction capabilities - whether constant (such as an indoor lighting retrofit project), seasonal (such as a new energy-efficient chiller plant), or dispatchable (such as a back-up generator) - into a forward capacity auction that pits demand-side resources against supply-side ones. The first auction (for resources whose contribution to the grid must begin on June 1, 2010), took place on February 1st, 2008. Future auctions are announced at the FCM web site. However, in the "Transition Period," which is in effect until June 1, 2010, non-dispatchable demand resources (such as energy-efficiency, load management, or distributed generation) of at least 100 kW are eligible for fixed "installed capacity" payments from NE-ISO. The rate of remuneration is $3.75/kW-month in 2008-9, and $4.05/kW-month in 2009-10. Applications must include a measurement and verification plan to assure ISO-NE of the ability to perform.

What distributed energy resource options are available to me?

The Database of State Incentives for Renewable Energy (DSIRE) provides information on programs in Rhode Island that offer incentives for renewable distributed generation. The following programs may be of interest to federal customers:

The Rhode Island Renewable Energy Fund provides low-interest loans and re-payable grants to support financially self-sustaining renewable projects.
National Grid's Solar Thermal Rebate Program, part of its Business Energy Efficiency Services initiative, offers gas customers $3 per therm of first year savings (covering 50% of cost, up to $100,000) for solar thermal space or water heating installations.

Are there energy efficiency programs sponsored by the state government?

The Rhode Island Office of Energy Resources works in cooperation with National Grid,to provide cash incentives through the Small Business Program (see above for details).

What additional opportunities are available to me?

Federal customers also have energy efficiency opportunities available with utilities that have area-wide contracts with GSA and, by extension, all other federal agencies. Federal facilities should contact their account executive to determine the level of participation by their local utility.