Cambridge Energy Alliance Paul Gromer Electric Restructuring Roundtable April 11, 2008

What is the Cambridge Energy Alliance? Nonprofit organization Founded by: City of Cambridge Kendall Foundation Running a large-scale, city-wide, energy efficiency project in Cambridge

What is CEA’s goal? To reduce greenhouse gas emissions

How is CEA funded? Through energy savings Core financial concept (quite simple): The energy efficiency projects that reduce greenhouse gas emissions also produce economic benefits (energy bill savings, FCM revenues, etc.) Those economic benefits will be sufficient to pay for: The costs of the energy efficiency projects; and The costs of running the program

How will CEA make a difference? CEA makes projects more cost-effective (from the customer’s perspective) by reducing costs and increasing value. CEA: Identifies opportunities (electricity, gas, oil, water) Brings financing Brings pre-qualified energy service companies Provides quality assurance Makes implementing energy efficiency = participating in a citywide campaign Civic value PR value

What is CEA’s relationship with utility DSM programs? Strong partnership with NSTAR NSTAR has supported CEA from the beginning Synergistic effect Utility program + CEA = more comprehensive projects 1 + 1 = 3

Current status Big press event 12 months ago: What has happened since? Program design Energy service companies selected Project financing lined up Oceans of press Working capital financing nearly secured Starting to roll out