March 9, 2009WMLP 1 Renewable Energy/Energy Conservation Survey WMLP Presentation To Board of Selectmen Monday, March 9, 2009

March 9, 2009 WMLP 2 Customer Survey Objective: Obtain Customer Feedback Interest in Renewable Energy Involvement in Energy Conservation Compatibility of MLP Mission Statement

March 9, 2009 WMLP 3 Opinion Dynamics Corporation Retention Ensure Question Neutrality Statistical Validity of Sample Size Tabulate Results

March 9, 2009 WMLP 4 Reflection on Selection of Opinion Dynamics  Opinion Dynamics Well-Earned Reputation  Specific Expertise in Energy Field  Produced Quality Report/Conclusions  Light Board Confident in Direction Provided

March 9, 2009 WMLP 5 Survey Selection and Responses  Customers Randomly Selected  2,000 Residential Customers  597 surveys returned  700 Commercial Customers  77 surveys returned

March 9, 2009 WMLP 6 Rank Importance of MLP Objectives ObjectiveResidentialCommercial Reliability95% Cost87%95% Efficiency Town Buildings84%79% Renewable Energy70%77% Conservation Education/Programs55%54% Profit for General Fund17%20%

March 9, 2009 WMLP 7 Willingness to increase electric bill to help pay for energy conservation and/or renewable energy. WillingnessResidentialCommercial Very14%4% Somewhat39%34% Not very26%38% Not at all20%25%

March 9, 2009 WMLP 8 What specific energy conservation and/or renewable energy programs would you be willing to pay more for. ProgramResidentialCommercial Energy Efficiency Town Buildings42%30% Town-wide Renewable Energy33%22% Subsidize Solar Panels31%25% Home Energy Audit26%16% Energy Conservation25%19% Appliance Rebate23%17%

March 9, 2009 WMLP 9 Businesses and residents using compact florescent lights. Bulbs ReplacedResidentialCommercial None22%29% Some39%30% About-half18%11% Most16%23% All5%7% Wellesley has extremely high penetration rate.

March 9, 2009 WMLP 10 Guidance Received Vs. MLP Mission Statement 1. Mission Statement Objectives Competitive Price Reliable Service Financial Benefits to Town Safety Public and Employees 2. Overall Mission Statement Compatible Major Emphasis on Reliability & Pricing

March 9, 2009 WMLP 11 Survey Outcome Surprises 1. Importance on Town Building Efficiency 2. Lack of Importance MLP Profit Contribution to General Fund 3. Dichotomy for Renewable Energy Overall importance high Willingness to pay low

March 9, 2009 WMLP 12 MLP Priorities From Survey Responses Continue with Town Building Efficiency Establish Mechanism for Voluntary Renewable Purchases Implement Summer-Tier Residential Rate

Town Building Efficiency Improvements Strong Support From Selectmen and Executive Director $500,000 Municipal Energy Conservation Program Full Lighting Retrofits Completed at: – Hardy School – Hunnewell School – Town Hall – Fire Station 2 – DPW/MLP Building Other Partial Improvements: – Main Library Parking Garage – Police Station Lighting Motion/Voice Sensors RDF Improvements: – Motors – Electric Heat – Lighting

March 9, 2009 WMLP 14 Voluntary Renewable Electricity Purchases Available to All Municipal, Residential and Commercial Customers Provide Four (4) Options 1. 10% of your electricity 2. 25% of your electricity 3. 50% of your electricity % of your electricity

March 9, 2009 WMLP 15 Average Wellesley Resident Uses 970 kWh’s/Month Massachusetts Average 526 kWh’s Massachusetts Electric Heat 827 kWh’s Monthly Cost Increase (970 kWh’s) 1. 10% option = $ % option = $ % option = $ % option = $48.50

March 9, 2009 WMLP 16 LP/postcard.pdf

March 9, 2009 WMLP 17 Town of Wellesley, Massachusetts - Voluntary Renewable Program

March 9, 2009 WMLP 18 Voluntary Renewable Proceeds Investment Depends on Level of Participation High Participation Rate –Solar Panels on Municipal Building –Wind or Hydro Unit Entitlement Low Participation Rate  Purchase Renewable Energy Credit (market)

March 9, 2009 WMLP 19 Proposed Summer Residential-Tier Months of June, July, August and September Three Tiers 1.1,001 – 1,500 additional $.01/kWh 2.1,501 – 2,000 additional $.02/kWh 3.Over 2,001 additional $.03/kWh Currently only Municipal and Residential Electric Rates Do Not Include Summer Premium

March 9, 2009 WMLP 20 Town of Wellesley Summer Demand ,863 Peak ,609 Peak Energy Increase 1998 vs  Town Growth 25% (excludes residential)  Residential Growth 37%

March 9, 2009 WMLP 21 WMLP vs. NStar Monthly Residential Rate Comparison Monthly Usage NStarWMLP* Wellesley Savings 1,500 kWh$308$202$108 2,000 kWh$404$274$130 2,500 kWh$504$354$150 * Includes proposed summer-tied rates.

March 9, 2009 WMLP 22 Five Primary Conclusions From Survey 1. Very Confident with Opinion Dynamics Results 2. MLP Mission Statement Reflects Our Customers Priorities 3. Continue To Explore Town Building Efficiencies 4. Allow Customers To Purchase Renewable Energy 5. Implement Equitable Summer Rates – Proceeds For Energy Conservation and/or Renewable Energy

March 9, 2009WMLP 23 Thank you!