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National Grid Submits Plan To DPU for Unprecedented Energy-Efficiency Program Expansion
NATIONAL GRID SUBMITS PLAN TO DPU FOR UNPRECEDENTED ENERGY-EFFICIENCY PROGRAM EXPANSION

Program Designed to Triple Gas and Electricity Customer Savings; Cut Greenhouse Gas Emissions by 7 Million Tons

Proposal Part of Mass. Energy Efficiency Advisory Council’s Approved Three-Year Energy Saving Plan Under Green Communities Act

WALTHAM, Mass. – National Grid has submitted a proposal to the Massachusetts Department of Public Utilities to significantly expand and enhance its energy efficiency programs three-fold between 2010 and 2012, providing an opportunity for more Massachusetts customers to participate in the company’s award-winning programs. The company submitted its proposal on October 30, 2009, as part of a statewide energy efficiency plan proposal.

The Energy Efficiency Advisory Council – created under the state’s Green Communities Act -- has endorsed the statewide energy efficiency plan and found it consistent with the Act’s goals and requirements.

“This unparalleled, aggressive proposal far exceeds what other electricity and natural gas utilities have in place across the county. Energy efficiency is vitally important; it is one of the best ways to save energy, money, and reduce green house gas emissions,” said Tim Stout, vice president, Energy Efficiency for National Grid. “Through this program expansion – a milestone for the state -- we look forward to serving more customers as we help them achieve deeper energy savings and environmental benefits. We are pleased to be part of the state’s vision for a ‘greener’ future.”

Under National Grid’s proposal, the company expects to see about a two percent reduction in overall energy savings for gas and electric customers by 2012 and hopes to help customers save more than $2 billion over the life of implemented energy efficiency measures. For electricity customers, that translates into total electricity savings of 1.2 million megawatt-hours -- enough to power 150,000 homes for one year. For natural gas customers, the company projects savings of 33 million therms or enough to heat and provide other gas-related services for 33,000 homes for a year.

Additionally, as a result of such significant energy savings, the company expects a significant reduction in greenhouse gas emissions, helping to mitigate the effects of climate change. National Grid anticipates its customers can reduce more than seven million tons of greenhouse gas emissions under the expanded programs.

National Grid’s proposal includes integration and alignment of electric and gas programs to facilitate customer access to the programs; establishing a new Combined Heat and Power (CHP) program; addressing energy-efficiency measures for the multi-family housing market; special incentives to help customers implement efficiency measures; exploring new technologies and approaches to cover new and enhanced on-bill and internet-based communications about energy use; and community involvement in energy-efficiency measures and programs.

“Growing our energy-efficiency programs is an effective way to lower- energy costs and provides environmental benefits for years to come,” Stout added. “Energy efficiency is an investment that does come at an initial cost, but pays three-fold dividends in the long run, for which customers are the direct beneficiaries.”

As part of the filing submitted to the DPU, National Grid has proposed expanding funding for its electricity energy efficiency programs from $85 million in 2009, to approximately $570 million between 2010 and 2012. It has proposed increasing funding of its natural gas efficiency programs from $20 million in 2009 to nearly $200 million over the three year period. Total, collective proposed funding for all utilities in Massachusetts for the same timeframe is approximately $3.0 billion.

It is expected that these costs would be covered by energy efficiency charges on customers’ bills, revenue from regional greenhouse gas emissions and capacity markets, and special private financing programs.

If approved, a typical National Grid electricity customer using 500kwh per month could see about a $1.15 increase in the monthly bill in 2010. A typical natural gas heating customer using 82 therms per month would see an increase of $3.25 in the monthly bill.

However, customers who participate in the newly expanded energy efficiency programs will see cost savings as a direct result of the energy savings they achieve.

For more information about National Grid’s current energy efficiency programs, please visit www.powerofaction.com

National Grid is an international energy delivery company. In the U.S., National Grid delivers electricity to approximately 3.3 million customers in Massachusetts, New Hampshire, New York and Rhode Island, and manages the electricity network on Long Island under an agreement with the Long Island Power Authority (LIPA). It is the largest distributor of natural gas in the northeastern U.S., serving approximately 3.4 million customers in Massachusetts, New Hampshire, New York and Rhode Island. National Grid also owns over 4,000 megawatts of contracted electricity generation that provides power to over one million LIPA customers.