1. Comments on New England Regional State Committee*
Presented to:
MA Restructuring Roundtable
By: Susan Coakley
Northeast Energy Efficiency Partnerships, Inc.
June 18, 2004
* Comments represent views of NEEP Staff, not necessarily of NEEP Board Members, Funders or Initiative Sponsors.

2. RSC-NE Is Good News for Energy Efficiency
Broad Public Policy Perspective:
High level forum to address regional policy issues
Balance state and regional concerns
Broad perspective that considers multiple public policy goals – environmental, economic, fuel diversity and end-use energy efficiency
Regional Resource and Demand-Side Planning:
Provides for regional consideration of a energy efficiency as part a resource portfolio to address system reliability and capacity needs
Market Structure and Pricing Barriers:
Forum to address regional transmission pricing and cost allocation issues in a manner that promotes cost-effective end-use energy efficiency
Forum to propose market structures to capture additional energy efficiency resources

3. Four Problems for RCS-NE to Fix:
Increased energy efficiency not included as part of a cost-effective risk mitigation strategy to meet system reliability needs.
Increased energy efficiency not considered as part of solutions in system expansion planning (except as an interim emergency measure).
Energy efficiency not afforded same cost recovery treatment as supply options to meet reliability and system needs (SW CT an exception – new precedent?).
No consistent or systematic capability to assess energy efficiency or demand-side resources – retrospectively or prospectively.

4. Recommendations for the RCS-NE Agenda:
Regionally plan for and assess the potential for demand-side sources to address power system reliability and capacity needs.
Use risk mitigation analysis to assess the role of energy efficiency as part of a cost-effective resource portfolio that meets a range of public policy objectives.
Recommend market rules and structures that allow energy efficiency and demand-side resources to participate in market-based solicitations to meet power systems needs.

5. Recommendations for the RSC-NE Agenda:
Recommend to New England states policies that can increase energy efficiency to address efficient reliability goals (codes, standards, targeted efficiency).
Develop regional protocols to consistently assess energy efficiency saving opportunities and impacts.
Recommend pricing policies that provide price signals to increase customer investments in energy efficiency (LMP).
Recommend cost allocation policies that afford the same treatment for demand-side and supply-side resources.
Provide for public input.

6. For more information: www.NEEP.org
Northeast Energy Efficiency Partnerships, Inc.
5 Militia Drive
Lexington, Massachusetts 02421