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FirstEnergy’s energy efficiency portfolio

Senate Bill 221, passed by the General Assembly in 2008, requires Ohio’s electric utilities to reduce energy demand by 22.2 percent by the year 2025. Utilities must develop portfolio plans and meet annual benchmarks to measure their progress.

In March 2011, the PUCO approved FirstEnergy’s three-year energy efficiency and peak demand reduction portfolio plan. FirstEnergy designed the plan to reduce electric consumption among customers and meet annual energy efficiency benchmarksestablished for 2010 to 2012.

What is included in FirstEnergy’s plan?

FirstEnergy’s portfolio plan includes a fundamentally redesigned version of the compact fluorescent light bulb (CFL) program postponed by the PUCO in 2009. The plan also offers residential incentives for turning in old appliances and purchasing new energy efficient ones, discounts for comprehensive home energy audits, and rebates on weatherization improvements.

Commercialand industrial customers can take advantage of rebates on the purchase of efficient lighting and motors and incentives for energy efficient construction. Eligible commercial and industrial customers who have achieved energy efficiency savings on their own may continue to file with FirstEnergy to commit the energy savings to FirstEnergy’s annual benchmarks.

Is this the same CFL program from a few years ago?

No. In 2009, the PUCO asked FirstEnergy to postpone the program after considerable public outcry from FirstEnergy customers and elected officials regarding the program’s costs and the automatic distribution of light bulbs to customers who might not wish to receive them. The Commission directed FirstEnergy to submit an alternative CFL program. A revised program was included in the utility’s energy efficiency portfolio.

How is the new CFL program different?

The initial plan called for FirstEnergy to distribute two CFLs to each of its customers. Customer participation in the program was mandatory. 

Participation in the redesigned CFL program is voluntary. Residential and small business customers can call (888) 846-2235 to request that up to six high-efficiency bulbs be delivered to their home or business. First Energy will distribute CFLs through a variety of other channels, including its online store and local agencies that assist low income customers. Area retailers such as Home Depot and Lowes will offer CFLs for sale at a discounted price of no more than 50 cents per bulb. The 23-watt ENERGY STAR® bulbs aredesigned to replace 100-watt incandescent bulbs in non-dimmable fixtures.

However, the use of CFLs is widely recognized as one of the most cost-effective ways for customers to reduce their demand for electricity. By using less electricity, customers will save on their electric bills and reduce the overall demand for electricity, delaying the significant costs of constructing new power plants. An average residential customer who installs six CFLs can save an estimated $49.25 each year.

The CFL program and other efficiency programs will commence immediately. Participating retailers will begin selling bulbs in April or May 2011.

What are the other residential energy efficiency programs?

Participation in the energy efficiency programs listed below is completely voluntary.

  • Appliance turn-in program– Offers residential customers a monetary incentive and free pick up and disposal service for second refrigerators, freezers and room air conditioners. The incentive for this program is set at $50 initially, with a reduction to $35 six months after the launch of the program.
  • Community Connections– Provides weatherization measures, energy efficient solutions and energy education to low-income customers.
  • Comprehensive Residential Retrofit Program– Offers residential customers a comprehensive home energy audit for a discounted fee of $100. Customers who implement eligible energy savings measures as a result of the audit will receive rebates.
  • Direct Load Control Program– Offers eligible residential customers a programmable thermostat that allows the utility to curtail air conditioning usage by “setting back” the thermostat by four degrees for up to four hours during a critical peak day. Customers have the ability to override the thermostat.
  • Efficient New Homes Program– Provides rebates to local builders for achieving energy efficiency targets in new residential construction.
  • Energy Efficient Products Program– Provides rebates to consumers and financial incentives and support to retailers that sell energy efficient products, such as ENERGY STAR® qualified appliances, high efficiency lighting, and other electricity conservation products.
  • Online Audit Program– Provides the utility with the necessary tools and equipment needed to properly supply customers with the information and education required to lower their energy costs through energy efficiency program participation.
  • Online Efficient Products Program– Provides advice concerning energy efficiency products to residential customers with limited energy savings opportunities and equipment needs. Provides customers with a way to quickly and directly purchase energy efficiency products via a sponsored link to the Energy Federation Institute energy efficient products online catalog.

How will these programs be funded?

FirstEnergy will recover the costs of the portfolio plan from customers over a three-year period that begins once the utility files rate tariffs consistent with the Commission opinion and order. FirstEnergy residential customers using an average of 750 kWh of electricity each month will pay approximately $1.50 per month over three years to fund the residential portfolio programs and associated lost distribution revenues.This amount is similar to energy efficiency program costs assessed by Ohio’s other regulated electric utilities.

Do CFLs contain mercury?

CFLs contain a small amount of mercury– an average of 4 milligrams (mg). By comparison, older thermometers contain about 500 mg of mercury – an amount equal to the mercury in 125 CFLs. No mercury is released when the bulbs are intact or in use.

Since electricity generation is the main source of mercury emissions in the United States, CFL use actually reduces the amount of mercury that goes into the environment. A 13-watt, 8,000-rated-hour-life CFL will save 376 kWh over its lifetime compared to its 60-watt incandescent equivalent, thus avoiding 4.3 mg of mercury that would otherwise be emitted by fossil fuel burning power plants. The US EPA recommends that used CFLs are recycled where possible, to maximize mercury savings. If the used CFL ends up in a landfill, overall emissions savings would drop a little, to 3.9 mg.

Because CFLs also help to reduce greenhouse gasses, other pollutants associated with electricity production, and landfill waste (because the bulbs last longer), they are clearly the environmental winner when compared to traditional incandescent light bulbs.

More information is available at www.energystar.gov. To learn about CFL recycling options in your community, visit www.earth911.com.

What should I do if a CFL breaks?

Fluorescent light bulbs contain a small amount of mercury sealed within the glass tubing. When a fluorescent bulb breaks in your home, some of this mercury is released as mercury vapor. To minimize exposure to mercury vapor, the US EPA recommends that residents follow the appropriate cleanup and disposal steps.  Please visit www.epa.gov/cfl/cflcleanup.html for more information.