10/5/2015
Heat Smart.
Natural Gas is smart
for Connecticut
A UIL Holdings Company
a diversified energy
delivery company
Service Area Key
UI
SCG
CNG
Berkshire
Overlapping Territory
The United Illuminating
Company (UI)
•
Service territory: 335 sq
miles
•
~321,000 customers
•
•
Southern Connecticut
Gas (SCG)
•
Service territory: 512 sq
miles from Westport,
CT to Old Saybrook, CT
17 communities
•
~183,000 customers
50% interest in GenConn
Energy LLC
•
2,281 miles of mains
with ~133,000 services
•
Service Natural
Area Key
Connecticut
Gas
UI
Umpire
(CNG)
BGC
•
Service territory: 716 sq
miles - Greater
Hartford-New Britain &
Greenwich
•
•
•
22 communities
24 communities
SCG
Berkshire Gas Company
CNG
(Berkshire)
Overlapping Territory
•
Service territory: 738 sq
miles in Western MA
including Pittsfield and
North Adams
~165,000 customers
•
~37,000 customers
2,022 miles of mains
with ~126,000 services
•
744 miles of mains with
~31,000 services
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10/5/2015
CT’s Comprehensive Energy Strategy
Intended to lower energy costs for
residents & businesses
Governor Dannel Malloy: “Focusing on
innovative approaches to energy efficiency –
cost effective renewable power, smarter
building management, and expanded use of
low-cost natural gas, we are reducing
consumer costs, making the state more
competitive, and creating good jobs with good
benefits.”
Press Release, State of Connecticut, Governor Dannel P. Malloy, February 19,
2013
CES and Gas Expansion
The CES and LDC Gas Expansion Plans have been very successful in
expanding the use of natural gas
 Changes to the Hurdle Rate Model
 System Expansion Rates
 Use of Non-Firm Margin (NFM)
Despite the multiple benefits of natural gas, the overwhelming driver of
recent conversions has been the price advantage over oil.
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10/5/2015
The Economic Advantage of Natural Gas
Source: www.EIA.gov
Economic Advantage = Positive Correlation to Customer Acquisition
Since February
2014, the retail
price of heating oil
has dropped by
more than $1.75
per gallon,
according to data
from the state
Department of
Energy and
Environmental
Protection
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10/5/2015
Understanding the Customers Needs
Listen to the Customer
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“Wait and See” dilemma
Typical owner wears many hats
Competing budget interests
Life of current equipment
Falling Oil prices
Conversion Costs
“I lease my space”
“I’m locked into a contract”
“I didn’t know there was a difference”
Design a solution that meets their
needs

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Fuel Choice
Environmentally Clean
Convenience
Simple
Affordable
Value
Clean
Affordable
Reliable

Incentives help to remove barriers to entry and
provide immediate value
Customer Feedback
Customer Value
Leveraging all Available Tools
Education & Outreach
Layer Programs & Incentives
Natural Gas Rate Analysis and
Comparison
Customer
Address
Account Rep
Date
Rate
PGA Rate*
Usage
Base Ccf
Heat Ccf
Cooling Ccf
0
0
0
9/25/2015
0
Total Ccf
Estimated Consumption and Cost of
Natural Gas
Average $/Ccf
#DIV/0!
Month
Ccf
Cost
July
0.0
#DIV/0!
August
0.00
#DIV/0!
September
0.00
#DIV/0!
October
0.00
#DIV/0!
November
0.00
#DIV/0!
December
0.00
#DIV/0!
January
0.00
#DIV/0!
February
0.00
#DIV/0!
March
0.00
#DIV/0!
April
0.00
#DIV/0!
May
0.00
#DIV/0!
June
0.00
#DIV/0!
Total
0
#DIV/0!
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All assumptions and results contained herein are nonbinding to UIL Holdings Corporation and or its
subsidiaries. Actual savings are subject to change
based on, among other variables, natural gas and
alternative fuel prices and customer equipment
performance. This Savings analysis is for customer
informational purposes only and does not constitute a
quotation or a commitment, representation or w arranty
that the forecasted savings w ill be achieved. All
commitments, representations and w arranties w ith
respect to natural gas services shall be solely as
stated in the final Commercial and Industrial Installation
Service Agreement.
Estimated cost of alternative
BTU equivilent
Fuel
Cost
#1 Kerosene
#DIV/0!
#2
#DIV/0!
Propane
#DIV/0!
Gasoline
#DIV/0!
Electricity
#DIV/0!
fuels per
/Gal
/Gal
/Gal
/Gal
/Kwh
Estimated Annual Savings vs Current
Fuel Source
Alternative Fuel
Annual Consumption
Unit Cost
Total Alt. Fuel Cost
Total NG Cost
#DIV/0!
Annual Savings
* PGA Rate is based on the published 12 month average PGA found on CNG and SCG's websites
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10/5/2015
East Hampton Natural Gas Expansion
A true partnership between CNG and the Town
Company Commitment

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CNG to construct 10 miles of new gas main to a new franchise town
Total project cost of more than $6 million dollars
Allocation of CES NFM of $1.5 million
Fuel choice for over 420 residential and 100 commercial prospects
Municipal Commitment
 East Hampton to convert all town buildings to cleaner, more reliable, and less
expensive natural gas
 $500K Community Contribution
 Assistance with paving and road restoration
 Expedited construction permitting
East Hampton Natural Gas Expansion
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10/5/2015
American Distilling, East Hampton’s Anchor Customer
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World’s largest supplier of witch hazel
Major employer and tax payer in East Hampton
Burned #4 Fuel Oil = Significant Savings with natural gas
Clean burning natural gas supports their eco friendly mantra:
“Lean, Mean and Green from Day One”
Removing Barriers to Entry Through Incentives
Why Large Industrial Embraces Natural Gas?
Small
C&I
Medium C&I
Large C&I
long
Sales Cycle Time
Natural Gas Consumption
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Typically owner occupied
Corporate sustainability goals
Budgeting stability
Sophisticated energy management
Long Term operations planning
Natural gas opens the door for Distributed Generation
options, micro turbines and fuel cells, etc.
Provides more equipment choices, higher efficiency units,
Roof top units, gas driven chillers etc.
C&I Incentive Design Considerations
•
•
Target medium to small customers
Provide impactful value $
Short
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10/5/2015
Energy Efficiency Fund Background
Purpose

Provides electric and natural gas efficiency services and incentives to utility customers
Funding

Primarily by a charge on customer utility bills
Administration

The state’s electric and distribution companies (Eversource, United Illuminating) and
gas utilities (Eversource, Connecticut Natural Gas, and Southern Connecticut Gas)
Stakeholder Input

The Energy Efficiency Board (EEB) advises and assists the utilities in developing and
implementing the energy efficiency plans and programs
Planning

The utilities submit a 3-year Conservation & Load Management Plan to the EEB, and
then to DEEP for its review and approval
Energy Efficiency = Multiple Benefits
Economy
 Creates Local Jobs
 Gives Businesses a Competitive Edge
 Lowers Energy Prices for All
Energy System
 Increases Reliability & Resiliency
 Reduces Peak Demand
 Delays or Avoids Need for New Capacity
Environment
 Reduces Air Pollution
 Reduces Greenhouse Gas Emissions
 Reduces Water Use
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10/5/2015
Energy Efficiency Programs
Commercial & Industrial
 Small Business Energy Advantage
 Turn-key program for small business owners where approved
vendors perform an energy use evaluation ,recommend energy
saving actions, and install energy saving measures
 Energy Conscious Blueprint
 Available for new construction and renovations
 Energy Opportunities
 Available for retrofit projects in existing facilities
The Lee Company – Large C&I Case Study
Measures:
High-efficiency boilers, Energy
Management System and
Construction of a new efficient facility
Fund Incentive:
$ 123,775
Energy Savings:
24,785 ccf natural gas/year
Cost Savings:
$ 27,263 annually
Reduced Emissions: SOx- 540 lbs.; NOx- 16,000 lbs.
The Westbrook/Essex gas expansion presented The Lee
Company’s management team with opportunities to
improve their overall operating costs and they seized
them.
• Constructing a new, energy efficient facility
• Implementing an energy management system
• Upgraded over thirty boilers with high efficiency
units at their three campuses in Westbrook and Essex
• With the reduction in fuel prices the projects would
pay for themselves in under three years.
• With clean burning natural gas, The Lee Company
was able to reduce their overall operating costs
(delivery costs, service, maintenance and cleaning)
The Energy Conscious Blueprint Program
was there to assist with incentives
“We now spend less time on maintaining our HVAC
systems and more time focusing on providing
products and solutions to our customers.“
Leighton Lee IV, Facilities Manager, The Lee Company
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10/5/2015
Energy Efficiency = Multiple Benefits
2016 Statewide Energy Efficiency budget of over $240M
Conservation programs fund energy solutions for your home, business, and community
For More Information
Energize Connecticut Website

www.energizect.com/businesses
LDC Websites
 www.uinet.com
 www.cngcorp.com
 www.soconngas.com
 www.eversource.com
Energize Connecticut Center
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
120 Universal Drive, North Haven
FREE showplace of energy saving ideas
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10/5/2015
Thank you.
Te r r i E l l e r
Director
Commercial & Industrial
Sales
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