Columbia Gas Files Plans for Program to Save Energy, Lower Bills
7/2/2008
Columbus, Ohio - With natural gas commodity prices at record levels, Columbia Gas of Ohio has proposed new tools that will help customers reduce their natural gas consumption, and their bills.
The company late yesterday filed an application with the Public Utilities Commission of Ohio (PUCO) for permission to create a comprehensive energy conservation program that would be open beginning in 2009 to its residential and small commercial customers.
The filing is the result of months of research and collaborative work by Columbia, the Office of the Ohio Consumers’ Counsel (OCC), the PUCO staff and other partners.
"Natural gas commodity costs make up 80 percent of the average customer's bill," said Columbia Gas of Ohio President Jack Partridge. "Those costs are rising, and we and others see a need to help our customers manage these costs in a more comprehensive way than we ever have before."
This energy conservation, or Demand-Side Management (DSM), program would offer a wide range of services to residential and small commercial customers. These include:
For Residential Customer
- Home Performance Program. Rebates would be offered to residential customers to help offset the costs of a diagnostic home energy audit and energy efficiency upgrades to their existing home, including wall and attic insulation, air sealing and installing a high-efficiency gas furnace.
- Residential New Construction Program. New home builders would be eligible for financial incentives, training and technical assistance to encourage them to build houses that are 50 percent more efficient than current federal standards.
- Low-cost Rebate Program. Columbia customers who purchase Energy Star programmable thermostats and/or ultra low-flow showerheads would be eligible for rebates.
For Commercial Customers
- Small Business Energy Efficiency Incentives Program. Businesses using less than 300 Mcf (1 Mcf = 1,000 cubic feet) of gas a year would be eligible for rebates for high-efficiency heating systems, insulation upgrades, and air leakage and duct sealing. Other energy conservation measures that are recommended by a facility energy audit may be eligible for rebates if determined to be cost effective.
- Small Business Energy Saver Audit Program. Columbia Gas of Ohio would offer an online energy audit tool in partnership with the Ohio Department of Development that would produce customized energy savings recommendations for businesses that complete the audit.
- Advanced Energy Design Partnership Program. Building industry professionals and owners would receive continuing education on the benefits of constructing buildings that are designed with building science taken into consideration and that are 30 to 50 percent more efficient than current commercial energy efficiency building codes.
- Innovative Technology Program. Columbia will form an advisory group to help review applications for funding assistance to implement innovative approaches to achieving natural gas usage reductions in commercial buildings.
For Residential and Small Commercial Customers
- Energy Efficiency Loan Fund. Columbia would work with finance experts such as Ohio’s Community Development Finance Fund to design a low- or zero-interest loan fund for DSM participants.
Columbia proposes to operate these DSM energy conservation programs for calendar years 2009 through 2011. The company also proposes to expand its existing WarmChoice home weatherization program for low-income customers. Columbia estimates that the energy-savings measures installed through these programs could save customers about $100 million on their gas bills over the life of the measures. As an added benefit, it will also reduce carbon dioxide emissions into Ohio’s air by nearly 458,000 tons.
The company agreed in December 2007 to work with stakeholders to develop a comprehensive energy efficiency program for its residential and small commercial customers.
The DSM program is subject to PUCO review. Columbia will communicate to its customers how they can take advantage of the new programs, if they are approved.
Columbia Gas of Ohio developed the DSM proposal with a large and diverse stakeholder group which included the OCC, the PUCO staff and representatives of low-income customer advocacy groups, community-based organizations, heating and cooling and building industry groups, business advocacy groups and government agencies.
Columbia hired two independent consultants to help develop an action plan that would be cost effective and result in meeting energy savings targets that were included in the December 2007 agreement.
The company proposes to spend $24.9 million to operate the DSM conservation programs over three years. Columbia will seek to recover those costs through a rider that would be added to residential and small commercial customer bills beginning in May 2010. The company estimates that the charge for the average customer would be less than 50 cents per month.
Columbia is also proposing to increase spending on WarmChoice by $1.6 million to $7.1 million per year from 2009 through 2011. WarmChoice is funded through Columbia’s base rates.
About Columbia Gas of Ohio
Columbia Gas of Ohio, with headquarters in Columbus, is one of the 10 energy distribution companies of NiSource Inc. (NYSE: NI). Serving approximately 1.4 million customers in 60 of Ohio’s 88 counties, it is the largest natural gas utility in the state. NiSource distribution companies serve 3.8 million gas and electric customers primarily in nine states. More information about Columbia Gas of Ohio is available at www.columbiagasohio.com.