What is How$mart
The How$mart
energy efficiency upgrades program addresses the primary barrier to investment in new
energy by homeowners, small businesses and enterprises: the necessity for
upfront funding to pay for improvements. In this demonstration program,
customers will pay for efficiency upgrades each month, out of the average energy
savings generated by the retrofit. By providing retrofit services on the
electric bill utilities can put energy efficiency in the reach of those who need
it the most, but have previously been unable to make the upfront investment to
start saving money on their energy bills.
MACED
is working with four partner electric cooperatives (Big Sandy RECC,
Fleming-Mason Energy, Grayson RECC and Jackson Energy) who will pilot
retrofits among their customers. The coops submitted their application to the
Kentucky Public Service Commission (PSC) to pilot a tariffed on-bill program,
which will tie payments to the meter rather than the individual utility
customer. MACED and the coops adapted this program design from precedents first
developed through the PAYS® system and the How$mart® program in Kansas. A
decision from the PSC on whether to allow utilities to provide retrofits as part
of electric service is expected early this fall.
In
the long run utility service retrofits have the potential for significant energy
savings, as the model works for all classes of utility customers – whether
renters, homeowners or business owners. The approach allows utilities to
offer customers more comprehensive energy services at a time when construction
of traditional power plants has become increasingly expensive. And the pilot,
can be scaled up significantly by accessing compatible forms of government and
private capital.