Mainebiz

W W W. M A I N E B I Z . B I Z 21 J U N E 1 5 , 2 0 1 5 in November, is based on almost 500 online interviews with pilot program participants, analyses of participants' historical electrical billing and fuel oil usage data, and in-depth interviews with selected program participants as well as heat pump distributors and installers. Among its findings: Participants achieved an average savings of $622 a year, based on a 2013 average fuel oil cost of $3.90/ gallon (compared to a statewide average of $2.79/gallon reported this February). e range of savings varied sig- nificantly, with participants who relied heavily on their heat pumps to displace oil saving as much as $1,939 for the heating season, while those who used the heat pumps more like a space heater achieved minimal savings of about $300. 85% of the pilot's participants said they were "very satisfied" with both the heat pump and the program; 78% said they were "very satisfied" with the savings they achieved by using the heat pump. e average participant reduced their household's CO2 emissions by 4,212 pounds per year, equivalent to driving 4,549 fewer miles per year. Among the general population, awareness and knowledge about heat pumps increase from 19% to 35% over the year. In the company's internal analysis of the pilot program, Chasse says it became clear the customers who invested in heat pumps tended to be older and in higher- income brackets, while lower-income customers simply couldn't afford the roughly $3,500-per-unit cost, even with the available rebate and the under- standing that they'd see a significant savings in their heating costs. "We wanted to target the lower- income demographic," he says of the utility's new proposal to encourage widespread adoption of heat pumps by removing the cost barrier and help- ing customers to install heat pumps in their homes with no upfront cost. "We wanted to make it easy for them to get into the program and also achieve a considerable amount of sav- ings in their heating costs." In its filing, Emera Maine estimates that heat pump electricity usage costs (based on March 2015 rates) in the former Maine Public district were equivalent to heating with oil at $0.95/gallon to $1.36/ gallon, depending on the efficiency of the oil system. For the former Bangor Hydro district, which has higher electricity rates, it says the cost to heat with a heat pump is equivalent to heating with oil at $1.12/gallon to $2.54/gallon. Chasse says Emera Maine's proposal explicitly meets the 2013 Omnibus Energy Bill's goal of improving the state's economy by helping residents lower their energy costs while also helping to reduce Maine's nation-leading 70% of house- holds heating with oil. Citing a June 2013 report by La Capra Associates that was prepared for the Governor's Energy Office, he says the average Maine household using oil spends roughly $3,000 annually on oil heat, resulting in a total annual statewide cost of more than $1.2 billion. "With approximately 80% of the money spent on fossil fuel leaving the state's economy, that amounts to $1.03 billion leaving the state of Maine each year," he says in his written testimony for the PUC. "at places money for heating as Maine's single largest export … and it represents one third of our entire annual budget." If half, or even a third, of that state- wide cost could be saved by switching to heat pumps, he says, it would represent a tremendous boost to the state's economy. For the utility, it also adds revenues from greater usage of electricity that will help stabilize Emera Maine's transmission and distribution rates, which otherwise are likely to rise due to the demograph- ics of eastern and northern Maine. "is is an important rate manage- ment tool that will help us deal with flat loads and shrinking populations," he says. Chasse says the utility hopes to gain approval from the PUC in time to launch the program this fall. "It's just another tool," he says. "Certainly, people have opportunities to find their own financing and purchase the heat pump themselves. Our program would be completely voluntary." Ja m e s M c Ca rt h y , M a i n e b i z s e n i o r writer, can be reached at jmcc arthy @ mainebiz.biz and @ Jame sMainebiz For more info, visit us at MaineNaturalGas.com For more info, visit us at MaineNaturalGas.com We're writing a new chapter in Maine's energy history. Maine Natural Gas offers consumers and businesses a more affordable solution not only for winter heating, but also for cooking, cooling, generating electricity, and much more. Together, the cost savings and natural gas's impressive versatility can help sharpen Maine's competitive edge. MNG takes great pride in working to brighten our state's economic future as part of Iberdrola's long-term commitment to the people of Maine. We're Maine's local gas company. Energizing Maine's economy, one customer at a time. We wanted to make it easy for [customers] to get into the program and also achieve a considerable amount of savings in their heating costs. — Gerry Chasse, Emera Maine vice chairman

• Cover