1. Let’s Talk Energy Savings: The City of Norwalk partners with Conservation & Load Management (C&LM) Mayor Alex Knopp November 18, 2004

2. Why is The City of Norwalk concerned about energy use issues?

3. Challenges Federal: Federal Energy Regulatory Commission (FERC) ranks SouthWest Connecticut as one of the nation’s top ten reliability risks. State: The CT Energy Advisory Board (CEAB) stated “…to ensure a balanced energy future – including the continued development of competitive markets, promotion of the greater use of renewable energy and energy efficiency…” Local: From Mayor Knopp’s October 2, 2003 Press Release: “ …energy initiatives are part of my “smart government” management reforms to reduce city expenditures by giving taxpayers increased value for each dollar spent. …”

4. Norwalk’s Energy Plan

5. Why should a town “partner” with their electric utility ? Conservation & Load Management

6. Partnership in 2004 In 2004, the City of Norwalk and CL&P “partnered” in the Community Based Program which is a Conservation & Load Management Fund initiative. The goal of the program is to promote economic development in the community, advance the efficient use of energy, improve the environment and to raise awareness about the community’s specific energy needs. The target audience is Norwalk’s CL&P customers, such as Municipal, Commercial and Industrial, Residential and Schools.

7. Norwalk has learned that partnership between a municipality’s consumers and the utility companies is critical to achieve the next level of energy conservation. Conservation & Load Management

8. “Partnership” at Work C&LM coordinated an Energy Fair at the largest employer in Norwalk – the Norwalk Hospital. The Event was supported by the City, Hospital, and Chamber of Commerce. The Event provided energy awareness information to employees and visitors and also offered energy efficient bulbs and lamps for sale at greatly reduced prices (which are subsidized by the CT Conservation Fund).

9. Where does the funding come from? Conservation & Load Management

10. CL&P’s efficiency programs are funded by a conservation surcharge on customers’ electric bill, which forms the basis of the Connecticut Energy Conservation and Load Management Fund (Fund). The Fund was created by the State Legislature to allow the State’s utilities to provide cost-effective energy conservation programs and market transformation initiatives. The Energy Conservation Management Board (ECMB) was created by the State Legislature to advise the State’s utilities as they develop and implement their C&LM programs and initiatives. The Connecticut Department of Public Utility Control (DPUC) regulates the utilities’ C&LM programs. CONSERVATION & LOAD MANAGEMENT (C&LM)

11. Municipal Buildings Program -Identifies projects that typically would not have been implemented without this program -Available to all CL&P Municipalities -Installation provided by CL&P approved vendors and contractors Incentives: Up to 75% of project cost in 2004 50% of installed cost in 2005 (anticipated) 0% Interest Loans available

12. 12 2003/04 C&LM Activity The City of Norwalk has participated in a significant number of C&LM projects which has all ready delivered more than $500,000 in incentive payments to the City for including energy efficient practices and equipment in city projects. These energy conservation projects will save the City approximately $115,000 annually on its electric bill or approximately $1.7M over the life of the energy efficient measures installed.

13. 13 Examples of Norwalk’s C&LM Projects - Incentive Earned Briggs School$ 50,462 Tracey Elementary School$ 91,406 Ponus Middle School$ 115,299 Burnell Parking Garage$ 61,693 Norwalk Central Kitchen$ 8,861 Norwalk City Hall Atrium$ 39,046 Norwalk Main Library$ 104,143 Brien McMahon H.S.$ 230,837* Incentive total:$ 701,747 *projected incentive amount Conservation & Load Management

14. 14 Conservation & Load Management Three (3) of the Projects

15. Norwalk City Hall Atrium Total C&LM Incentive=$39,046 Replaced 200 lights requiring 200 watts per fixture to lights that only require 150 watts. Projected annual savings to the City of $8,457.

16. Norwalk Main Library Total C&LM Incentive=$104,143 Replaced existing lighting fixtures. This gave a 40% reduction in wattage and an estimated annual savings of $43,066. Monitoring and control devices installed provided an estimated annual savings of $2,500.

17. Brien McMahon H.S. Total C&LM Incentive=$230,837* Total approximate kWh Savings: Annual = 1,163,563 Lifetime = 20,757,797 Total estimated cost savings: Annual = $ 93,085 Lifetime = $1,660,617 * Projected Incentive for 2005/06

18. Other Projects in Norwalk

19. Demand Reduction Program Projects By using incentives offered by C&LM, Nxegen added controls to water coolers and vending machine to cycle refrigeration compressors off during off-peak hours. Estimated Annual Savings Per machine = $650

20. Nxegen’s Real-Time Monitoring System Provides valuable usage and cost information. Able to identify inefficiencies in usage patterns and provide monthly savings reports. In 2003, these devices conserved approximately 72,752 kWh with an estimated savings of $6,548.

21. ISO-New England Project The City of Norwalk entered into a four-year agreement with power grid operator ISO-NE with four (4) emergency generators: -City Hall with a committed capacity of 100kW - Public Works Center with a committed capacity of 100kW - Two (2) at the Waste Water Treatment Plant with a total committed capacity of 700kW. Based on the total committed capacity of 900 kW, the City expects to earn $97,200 in revenue this year, plus the added compensation for operating costs during an actual load-shed event. During the first year of the program, Norwalk actually shed 1030 kW and is trying to get ISO-NE to increase the committed capacity to 1000kW. If that happens, Norwalk could earn as much as $108,000 plus operating costs.

22. Norwalk leads the way The City recognizes the importance of broadening its energy conservation reach beyond these programs and is also working with SNEW and others to improve the City’s overall energy efficiencies. The City will continue to look into the energy marketplace and learn new technology and management techniques that will further reduce our energy demand, help our City, and continue to move Norwalk forward.

23. Questions Conservation & Load Management