Baker-Polito Administration Announces Record Energy Savings for Electric and Gas Ratepayers

BOSTON – August 25, 2016 – The Baker-Polito Administration today announced
Massachusetts’ Energy Efficiency Program Administrators set an annual record for
energy savings in 2015 and exceeded the energy savings benchmarks set by the
2013-2015 Three-Year Energy Efficiency
Plan
by 20% for the electric goal and 9% of the gas goal. The energy efficiency plan,
drafted by the Energy Efficiency Advisory Council and adopted in 2012, set the most
aggressive energy savings goals of any energy efficiency program in the nation for
gas and electric sales.

«Massachusetts continues to lead the nation in energy efficiency through programs
that reduce costs to ratepayers and minimize the impacts of increased demand on our
energy infrastructure,» said Governor Charlie Baker. «The comprehensive energy
diversity legislation I signed earlier this month will expand financing
opportunities for commercial energy efficiency projects, building upon the strong
foundation the Commonwealth’s energy efficiency plans have laid for our clean energy
future.»

«The Baker-Polito Administration is committed to expanding energy savings for
Massachusetts’ ratepayers, as demonstrated by the even more aggressive savings
targets in our recently signed energy savings plan,» said Lieutenant Governor Karyn
Polito. «The Commonwealth realizes a greater than three-to-one benefit for every
dollar invested in energy efficiency programs, proving that energy efficiency is a
great investment for Massachusetts ratepayers.»

The 2013-2015 Three-Year Plan set savings goals at 2.5% of statewide electric sales
and 1.12% of statewide natural gas sales and in 2015 Massachusetts achieved savings
of 3.01% of electric sales and 1.23% of natural gas sales. The current Three-Year
Energy Efficiency Plan,
approved
by the Department of Public Utilities in January 2016, builds upon the success of
the previous plan and again sets nation-leading goals for energy savings, setting
savings goals of 2.94% of electric sales and 1.24% of gas sales.

«Energy efficiency will play a crucial role as the Commonwealth looks to build a
clean energy future by ensuring we reduce costs for ratepayers while meeting our
Global Warming Solutions Act emissions reductions targets,» said Energy and
Environmental Affairs Secretary Matthew Beaton. «The unprecedented success of the
past plan, paired with the nation leading goals set by the current plan, is
projected to result in over $8 billion of economic benefits to ratepayers and the
reduction of over 2 million tons of carbon emissions by 2018.»

«Energy efficiency programs continue to be the most cost-effective way for
ratepayers to reduce their energy costs while helping the Commonwealth meet our
shared carbon emissions targets,» said Department of Energy Resources Commissioner
Judith Judson. «The record setting savings achieved in 2015 demonstrate this
Administration’s commitment to clean, affordable energy for all consumers. We are
committed to building upon our progress by expanding opportunities for renters and
moderate income households so that all Massachusetts ratepayers can benefits from
our shared success.»

The 2016-2018 Three-Year Energy Efficiency Plan includes a focus on several key
issues facing the Commonwealth, including addressing the growing energy consumption
at times of peak demand, advancing innovation in technologies and program delivery,
and working with residential contractors to continue to expand the opportunities for
delivery of energy efficiency.

In addition, the current plan includes two new initiatives to allow renters and
moderate income households increased opportunities to participate in Massachusetts’
energy efficiency programs. A new home energy visit program will assist renters, who
don’t have control over all efficiency upgrade decisions in a building, but who
benefit from a home visit and instant savings efficiency measures. The moderate
income initiative will provide electric and gas customers who have not previously
qualified for income-eligible programs with expanded incentives so that they are
able to access the benefits of energy efficiency.

The Massachusetts Energy Efficiency Program Administrators are electric and gas
utility companies and municipal electric aggregators that develop and implement
energy efficiency investment plans for ratepayers as directed by the Green
Communities Act. The electric and natural gas efficiency programs, delivered under
the Mass Save(r) brand, provide technical assistance and incentives such as free
home energy audits, instant savings measures like power strips and energy efficient
lightbulbs, rebates and discounts on advanced technologies, and custom programs for
large consumers of energy. They help homeowners, renters, businesses, local
governments and institutions use less energy, manage their costs and reduce their
carbon footprints.

«Energy efficiency must be a pillar of our state’s energy infrastructure,» said
Senate President Pro Tempore Marc R. Pacheco (D-Taunton), founding chair of the
Senate Committee on Global Warming and Climate Change and vice chairman of the Joint
Committee on Telecommunications, Utilities and Energy. «We have a necessity to meet
the emission reduction requirements of the Global Warming Solutions Act, and that
means we have to lessen our carbon footprint. I am pleased to see these energy
savings, and I look forward to further cost reduction as we move forward with a
smart, diverse energy portfolio.»

«The numbers released today prove the Commonwealth is moving in the right direction
when it comes to promoting energy efficiency,» said House Minority Leader Bradley H.
Jones, Jr. (R-North Reading). «I commend the Baker-Polito Administration and
Secretary Beaton for their continued leadership on this important issue and for
their ongoing efforts to reduce the state’s carbon footprint and lower energy costs
for the state’s ratepayers.»

«In Massachusetts, we must continually seek energy efficiency as a ‘first fuel,'»
said State Representative Thomas A. Golden, Jr. (D-Lowell), Chairman of the Joint
Committee on Telecommunications, Utilities, and Energy. «I commend the
Administration and the Utilities on a job well done and look forward to building
upon these accomplishments to further realize the full benefits of energy
efficiency.»

«Our energy efficiency success has substantial benefits for our economy, our
environment, our health, and the preservation of vital natural resources,» said
Senate Minority Leader Bruce Tarr (R-Gloucester). «We know that our utilization of
a diversified renewable power generation portfolio coupled with efficiency measures
has been working and this underscores the importance of the next phase of our
development of a comprehensive statewide energy plan.»

To build upon Massachusetts’ energy efficiency progress, the comprehensive energy
diversification legislation recently enacted by Governor
Baker
establishes a commercial Property Assessed Clean Energy (PACE) program. The PACE
program, facilitated by MassDevelopment and DOER, will enable commercial and
industrial property owners across the state to finance comprehensive energy
efficiency and renewable energy upgrades that are repaid through a property tax
assessment on their building.

Massachusetts has earned the #1 ranking five consecutive years in the American
Council for an Energy-Efficient Economy’s (ACEEE) 2015 State Energy Efficiency
Scorecard. In the scorecard, Massachusetts
received the highest mark possible for its utility-managed energy efficiency