March 9, 2009 WMLP1

Renewable Energy/Energy Conservation Survey

WMLP

Presentation To Board of Selectmen

Monday, March 9, 2009

March 9, 2009WMLP2

Customer Survey Objective: Obtain Customer Feedback

• Interest in Renewable Energy

• Involvement in Energy Conservation

• Compatibility of MLP Mission Statement

March 9, 2009WMLP3

Opinion Dynamics Corporation Retention

Ensure Question Neutrality

Statistical Validity of Sample Size

Tabulate Results

March 9, 2009WMLP4

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, 2009WMLP5

Survey Selection and Responses

Customers Randomly Selected

2,000 Residential Customers 597 surveys returned

700 Commercial Customers 77 surveys returned

March 9, 2009WMLP6

Rank Importance of MLP Objectives

Objective Residential Commercial

Reliability 95% 95%

Cost 87% 95%

Efficiency Town Buildings 84% 79%

Renewable Energy 70% 77%

Conservation Education/Programs 55% 54%

Profit for General Fund 17% 20%

March 9, 2009WMLP7

Willingness to increase electric bill to help pay for energy conservation and/or renewable energy.

Willingness Residential Commercial

Very 14% 4%

Somewhat 39% 34%

Not very 26% 38%

Not at all 20% 25%

March 9, 2009WMLP8

What specific energy conservation and/or renewable energy programs would you be willing to pay more for.

Program Residential Commercial

Energy Efficiency Town Buildings 42% 30%

Town-wide Renewable Energy 33% 22%

Subsidize Solar Panels 31% 25%

Home Energy Audit 26% 16%

Energy Conservation 25% 19%

Appliance Rebate 23% 17%

March 9, 2009WMLP9

Businesses and residents using compact florescent lights.

Bulbs Replaced Residential Commercial

None 22% 29%

Some 39% 30%

About-half 18% 11%

Most 16% 23%

All 5% 7%

Wellesley has extremely high penetration rate.

March 9, 2009WMLP10

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, 2009WMLP11

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, 2009WMLP12

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, 2009WMLP14

Voluntary Renewable Electricity Purchases

Available to All Municipal, Residential and Commercial Customers

Provide Four (4) Options1. 10% of your electricity

2. 25% of your electricity

3. 50% of your electricity

4. 100% of your electricity

March 9, 2009WMLP15

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 = $4.85

2. 25% option = $12.13

3. 50% option = $24.25

4. 100% option = $48.50

March 9, 2009WMLP16

http://www.wellesleyma.gov/Pages/WellesleyMA_WMLP/postcard.pdf

March 9, 2009WMLP17

Town of Wellesley, Massachusetts - Voluntary Renewable Program

March 9, 2009WMLP18

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, 2009WMLP19

Proposed Summer Residential-Tier

Months of June, July, August and September

Three Tiers1. 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, 2009WMLP20

Town of Wellesley Summer Demand

1998 43,863 Peak

2008 65,609 Peak

Energy Increase 1998 vs. 2008 Town Growth 25% (excludes residential) Residential Growth 37%

March 9, 2009WMLP21

WMLP vs. NStar

Monthly Residential Rate Comparison

Monthly Usage NStar WMLP*

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, 2009WMLP22

Five Primary Conclusions From Survey

1. Very Confident with Opinion Dynamics Results2. MLP Mission Statement Reflects Our Customers

Priorities3. Continue To Explore Town Building Efficiencies4. Allow Customers To Purchase Renewable

Energy5. Implement Equitable Summer Rates – Proceeds

For Energy Conservation and/or Renewable Energy

March 9, 2009 WMLP23

Thank you!