NYSERDA Press Releases

NYSERDA Releases Results of First Three Years of System Benefits Charge Programs

The New York State Energy Research and Development Authority (NYSERDA) today released the results of the first three years of programs funded by the System Benefits Charge (SBC). The SBC was instituted by the Public Service Commission (PSC) in 1998 to ensure that energy efficiency and renewable energy programs were maintained in the State while the electric utilities transitioned to a competitive market. The PSC named NYSERDA as the administrator of these funds, which were collected by the utilities. The programs were funded at a level of $78 million a year over the three-year period.

Administering the funding under the New York Energy $mart^SM program, NYSERDA provided financial incentives to help utility customers of all classes identify, implement, and finance energy efficiency improvements and install renewable energy systems. The programs offered similar services to those that utilities previously provided within their own service territories to help customers lower their energy bills by reducing their demand for energy. Because the programs were administered consistently across the State under one roof, administrative costs were minimized, with NYSERDA's administrative costs set at 5%.

The programs saved enough electricity each year to power nearly 155,000 homes (927 million kilowatt hours), and lowered energy costs by nearly $120 million a year. Economic benefits included the creation/retention of 2,300 jobs due to the energy savings and economic activity stimulated by the program. Among the other notable accomplishments, the New York Energy $mart^SM programs helped to construct two wind farms in the State that are generating more than 40 megawatts of power (a third wind farm is under development that will raise the total to more than 50 megawatts); reduced annual carbon dioxide emissions by 670,000 tons (equivalent to the removal of 134,000 vehicles from the State's roads), reduced annual nitrogen oxide emissions by 960 tons, and reduced annual sulfur dioxide emissions by 1,680 tons.

"Numbers only tell a small part of the story," said NYSERDA President William M. Flynn. "Today, because of the SBC program, New Yorkers are much more aware of the benefits of energy efficiency, and more likely to use that knowledge in the marketplace. Energy efficiency products and services are now more available and consumers are taking advantage of that by making decisions that will save them energy for years to come."

Evidence of the increased awareness of energy efficiency in the State can be seen in the changing purchasing habits of many New Yorkers. The market share of ENERGY STAR® appliances increased by 119% and the market share of ENERGY STAR® lighting products increased by 144% following an extensive public awareness campaign regarding the benefits of purchasing ENERGY STAR® products. Furthermore, more than 60 energy service companies are now providing performance-based energy efficiency services throughout New York State, up from only seven companies prior to 1998. Across the State, more than 2,300 "market allies" (retailers, vendors, and contractors who promote and support the adoption of energy efficiency and renewable resource technologies, products, and services) worked with NYSERDA to support New York Energy $mart^SM efforts.

Perhaps the most noteworthy accomplishment of the New York Energy $mart^SM program was its ability to leverage funding. NYSERDA's partners in the programs invested more than $600 million of their own money toward energy efficiency improvements and research projects, raising the total value of the program to more than $800 million over the three year period.

"As we began the process of deregulation, and moving the market toward competition, the Commission set two major goals for the public benefits program," said PSC Chairwoman Maureen Helmer. "We wanted to promote competitive markets for energy efficiency services, and we wanted to ensure that direct benefits were provided to the ratepayers, especially economic and environmental ones. I'm pleased to say that is happening in a way even far greater than we anticipated thanks to matching funds that NYSERDA has been able to leverage to move these innovative energy programs forward."

The results of the New York Energy $mart^SM program are available in a report NYSERDA prepared entitled The New York Energy Smart Program Evaluation and Status Report. The report, which is available on NYSERDA's website (www.nyserda.org) summarizes the portfolio of energy efficiency, low-income, environmental, and research and development programs administered by NYSERDA during the three year evaluation period. Of the $234.3 million collected for the public benefit programs, $175 million was allocated to NYSERDA, with remaining funds maintained by utilities to complete existing programs in their territories. In January 2001, the Public Service Commission extended the SBC funding for an additional five years and increased the funding to $150 million a year. As a result, NYSERDA began investing money from the subsequent round of SBC funding early in 2001 to address concerns about adequate electricity supplies in New York City, resulting in a total investment of about $201 million in the first three years of the SBC programs.

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