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“New Twists on Classic Program Designs: Strategies for Reaching Low-Income Multifamily Tenants” Katherine Johnson, Johnson Consulting Group. Presentation Overview.

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Presentation Overview

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  1. “New Twists on Classic Program Designs: Strategies for Reaching Low-Income Multifamily Tenants”Katherine Johnson, Johnson Consulting Group

  2. Presentation Overview Describes three innovative utility approaches to reaching low and moderate residential customers especially in multifamily buildings: • Michigan: Consumer’s Energy Building Blocks Program • Arkansas: Entergy’s Multifamily Program as part of new unified statewide approach to delivering weatherization services • Colorado: The Partners in Energy Solutions joint collaborative approach targeting low-income seniors Highlights some best practices and lessons learned from three different program evaluations.

  3. Consumers Energy Consumers Energy is Michigan’s second-largest electric and natural gas utility, providing service to morethan 6 million of the state’s 10 million residents in all 68 counties in the Lower Peninsula. • The utility provides electric service to 1.8 million customers and natural gas service for heating and other uses to more than 1.7 million customers in 44 of the 68 counties in Michigan’s Lower Peninsula.

  4. Entergy Arkansas (EAI) • Entergy Arkansas serves three-quarters of the eastern portion of Arkansas • 683,000 customers in 63 counties

  5. Partners in Energy Savings (PIES)Colorado Natural Gas Utilities The four natural gas utilities in Colorado fund a portfolio of energy efficiency programs through the Partners in Energy Savings (PIES) Program, otherwise known as the Collaborative. The cost savings associated with using a collaborative approach allows each utility to direct more of its DSM program dollars toward maximizing the installation of energy efficiency measures in its respective service territory. Additionally, designing collaborative programs with integrated marketing activities, efficiency measures and rebate structures permit consistent messaging by these utilities.

  6. Energy Efficiency Kit Targeting Low Income Seniors • The Energy Efficiency Kit contains several energy and water conservation measures and educational tips designed to reduce overall consumption. • The kits were advertised to Atmos and SourceGas customer via a special Business Reply Card mailing. Customers could receive a kit by completing the Reply Card and sending it back to the utility.

  7. Energy Efficiency Savings Kits The Energy Efficiency Savings Kits initiative should be expanded to a wider group of customers, perhaps for all four PIES utilities, assuming budgets can be re-allocated. Findings strongly suggest that the participants receiving the energy efficiency kits were satisfied with the program overall, as well as the quality and number of energy efficiency measures. Given that the benefits of the program, in terms of encouraging customers to take actions to reduce energy usage on their own, this appears to be a program that benefits both the customers and the utilities.

  8. Energy Efficiency Savings Kits Leverage the Energy Efficiency Kits to promote other Excess is Out Programs. It is also critically important to remind customers that they requested this kit, and to encourage them to install their measures “right away.” That could also lead to developing another informational brochure for the kit that reminds customers that other Excess is Out Programs are available.

  9. Persistence

  10. Participant Satisfaction

  11. Key Takeaways • Overall, the Energy Efficiency Kit appears to be a highly successful program, with high installation rates, long measure persistence, and low free ridership. • Most participants are senior citizens living on a fixed income. Clearly, they were looking for ways to reduce their overall energy bills, and the kits filled that need. Customer satisfaction rates are very high, and it appears that this program has lead to improved overall attitudes in general about the natural gas utilities.

  12. Building Blocks Program

  13. Building Blocks Program Features • The program directly rewards customers for positive actions that improve energy efficiency in their homes, and that those actions are self-driven. • Throughout the program lifecycle each participant receives, or has the possibility of receiving, cash and non-cash incentives for their participation in the program.

  14. Building Blocks Relies on the Personal Touch • For the pilot program, marketing/outreach relied on face-to-face meetings with local social service agencies • The agencies, in turn, referred potential customers to the utility for enrollment.  

  15. Measures Received in Workshop 1 • Smart power strip • 10 CFL bulbs • Two LED night lights • One outdoor motion sensor adaptor • Kitchen and bathroom faucet aerators • High-efficiency showerhead • Water heater pipe insulation • Hot water thermometer • Digital refrigerator thermometer • Refrigerator coil cleaning brush Measures Received in Workshop 2 • Indoor/Outdoor caulk with caulking gun • Two containers of spray foam • Replacement furnace filter • Window wrap kits • Door weather-stripping kits • Infrared digital thermometer • Rope caulk • Door bottom form of door sweep • V-seal & press and peel weather-stripping kits

  16. Entergy Solutions Multifamily Program Program Description • The EAI Multifamily Program offers energy assessments in common areas to identify cost-effective energy-efficiency upgrades and offers free direct install measures in tenant spaces to the multifamily residential market throughout the EAI, Inc. (EAI) electric service territory. EAI launched the Energy Solutions for Multifamily Program in April 2012 (EAI 2012 EM&V Report, p. 290). Program Eligibility • Multifamily properties composed of five or more units located within the EAI electric service territory are eligible for the EAI Multifamily Program. Properties under a residential, multifamily or commercial rate code all qualify for this program • There are no maximum limits on the size of a building or number of qualifying buildings in a single complex (EAI 2013 Multifamily Guidebook, p. 3)

  17. Entergy Solutions Multifamily Program Energy Survey Services The energy survey consists of an on-site survey of the property and applicable equipment. Property owners/managers receive a summary report of the property’s potential energy savings from the program implementer as well as information about other EAI programs for which they may be eligible (EAI 2012 EM&V Report, p. 289). Based on the 2013 program evaluation, the program will be adding ceiling insulation to the list of eligible measures going forward.

  18. Entergy Solutions Multifamily Program Results • The program exceeded its goals in 2012. • The program treated 3,075 residences in 820 buildings at approximately 80 properties and greatly exceeded its 2012 annual participation goal of 326 treated residences (EAI 2012 Annual Report, p. 72). • Achieved 522% of its 2012 net annual goal of 364 MWh and 250% of the net annual goal of 0.089 MW. • As a result of the program’s significant early success, the program implementers increased the savings goal to 1,741 MWh. The program met 87% of this revised internal goal.

  19. Entergy Solutions Multifamily Program The multifamily walk through survey is conducted by a BPI-certified auditor. The auditor does not use a software tool, but gathers property site data to prepare the report that is mailed back to the property manager. The report is based upon the current version of the TRM Deemed savings. While conducting the survey, the auditor performs QA/QC on the measures installations.

  20. Distribution of Residences Served by the Multifamily Program Source: Evaluation Team analysis of ICF PY 2013 Database Extract.

  21. Reasons for Program Success Staff attributed the program success to the implementer developing strong contacts with building owners and managers in 2013. • ICF developed a database for outreach and recruiting to support these efforts, which focused mainly on membership lists for city/regional associations such as Builder Owner and Managements Association chapters, and Institute for Real Estate Management chapters. • ICF also tracked local government permitting, where available, to identify projects that could generate qualified leads. • ICF made a concerted effort to reach out to property managers in the southern and eastern portions of the state in 2013.

  22. Other Key Takeaways High Participant Satisfaction Satisfaction With Multifamily Program Measures Satisfaction with Entergy Source: EAI 2013 EM&V Report, p 409.

  23. Lessons Learned from Innovative Programs • Innovativeprograms work. • Actionsspeak louder than (energy) words. • Cost-effectivenessis not the only predictor of success for these programs.

  24. Questions Dr. Katherine Johnson, President Phone: 301 461 4865 Email: kjohnson@johnsonconsults.com Website: www.johnsonconsults.com

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