1. Definition of Public Benefit Programs

2. How do Public Benefit Programs reflect the core values of NCPA and NCPA members?

3. How have Public Benefit Programs evolved in California?

4. What challenges are current Public Benefit Programs designed to address?

5. How do NCPA Member Public Benefit Programs address these challenges?

6. What effect does the fact that NCPA member utilities are locally controlled non-profits have on their Public Benefit Programs?

7. What does membership in NCPA contribute to the development of effective Public Benefit Programs?

1. Definition of Public Benefit Programs

   -Public Benefit Programs are programs which have been established by the state or

    federal government in order to fulfill some "public good." They are programs which

    are "in the public benefit."

   -California currently has various energy related Public Benefit Programs which are

    funded by a nonbypassable usage-based charge that is paid by each electricity  

    customer in the state.

   -As municipal electric utilities, NCPA members are each currently required to support a

    Public Benefit Program which includes the following:

                                    -Energy Efficiency(hypertext to EE section of E. Stewardship)

                                     Cost-effective demand-side management services to

                                     promote energy efficiency and conservation.

                                    -Renewables(hypertext to Renewables section of E. Stewardship)

                                     New investment in renewable energy resources and

                                     technologies consistent with existing statutes and

                                     regulations, which promote those resources and technologies.

                                    -Research and Development-

                                     Research development and demonstration programs for the

                                     public interest to advance science or technology which is not

                                     adequately provided by competitive and regulated markets.

                                    -Low Income-

                                     Services provided for low-income electricity customers,

                                     including but not limited to, targeted energy efficiency service

                                     and rate discounts.

2.  How do Public Benefit Programs reflect the core values of NCPA and NCPA members?

   -They are socially and environmentally responsible.

   -They help insure the reliability and resource adequacy of the power supply.

   -They  lower the cost of providing electricity to NCPA members' customer-owners.

3. How have Public Benefit Programs evolved in California?

   -After decades of low energy prices, the oil crisis in the mid 1970's sent electric prices

    up. And kept them there. In response to customer dissatisfaction, the first programs

    were put into place to help customer lower their bills. They consisted mainly of

    pointing out how the customer could alter his behavior in order to use less electricity.

   -By the early 1980's, more complex demand-side management programs were put into

    effect. There were several different types of programs, but Energy Efficiency programs

    were by far the most widely used. Then came the fall of oil prices in the mid 1980's

    and all the demand-side programs were greatly reduced.

   -Finally, in the mid 1990's, there was a realization that the existing programs were not

    making actual sustainable changes in the market which would be carried on once the

    benefit programs were stopped. At this point new Public Benefit Programs were

    added which were aimed at market transformation through an educational process

    designed to change customer attitudes.

   -This combination of programs has had a significant impact. According to a statement

    by the California Energy Commission in 1998 "the combined impact of all the

    efficiency programs in the State in one year is equal to 15 percent of the total statewide

    electricity consumption."

4. What challenges are current Public Benefit Programs designed to address?

   -The issues of greatest concern are 1) assuring an adequate and reliable energy supply

    in the face of growing demand and volatile fuel costs, 2) protecting the environment,

    and 3) keeping costs to the customers relatively stable.

5. How do NCPA Member Public Benefit Programs address these challenges?

   -Energy Efficiency programs account for 61% of current NCPA member Public

    Benefit Program expenditures. By reducing the amount of electricity needed to

    serve the customer base, the Energy Efficiency programs provide the following

    benefits: 

            -the existing capacity of the power supply remains adequate for a longer period

 of time and the need to build new generation facilities is pushed off further into

 the future

            -the reliability of the entire electrical grid is increased

            -fuel price volatility is mitigated

            -the customer, using demand side energy efficiency programs, can reduce his

 energy usage and thereby reduce his costs.

-NCPA Member programs include:(Scott, info needed here)

   -Renewables programs account for 20% of current NCPA member Public Benefit

    Program expenditures. By providing energy which is both low-emission and

    renewable, the renewables programs provide the following benefits:

            -the reliability of the entire electrical grid is increased

            -the state energy supply is more diverse and therefore more secure

            -fuel price volatility is mitigated

            -cleaner air leads to environmental and health benefits

            -lower costs and more cost certainty for customer-owners

            -encourages research and innovation for long-term energy savings

            -NCPA Member programs include: (Scott, info needed here)

-Research and Development programs account for 9% of current NCPA member Public

 Benefit Program expenditures. By helping develop the new technologies and services

 that are not adequately provided for by competitive and regulated markets, the research

 and development programs provide the following benefits:

            -encourage innovation

            -increase Energy Efficiency (and, therefore, all the benefits of Energy Efficiency)

             by providing tools for both NCPA member utilities and customer-owners which

             would otherwise not be available

            NCPA Member programs include: (Scott, info needed here)

-Low Income programs account for 10% of current NCPA member Public Benefit

 Program expenditures. By providing funding for low-income customer Energy

 Efficiency services, the overall Energy Efficiency of the electrical system is increased.

 By providing bill discount programs to low-income customers, greater equity is

 achieved in the delivery of energy services.

            NCPA Member programs include: (Scott, info needed here)

6. What effect does the fact that NCPA member utilities are locally controlled

    non-profits have on their Public Benefit Programs?

-They are able to create highly effective programs which are specifically tailored to the   

 conditions and needs of their communities.

-They are able to continually evaluate these programs for cost-effectiveness and to design

 and implement improvements when necessary.

-By responding creatively to the issues and conditions within their communities, they

 become a source of innovation for all of California.

7. What does membership in NCPA contribute to the development of effective Public Benefit Programs?

-Members share information about the effectiveness of the programs they have

 developed, learning from one another about what has worked and what hasn't.

-Members avoid wasteful duplication of effort by "borrowing" already developed

 programs or by developing programs jointly.

-Joint action allows members to undertake programs that would be beyond the scope

 of what they could do alone.