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RE: Free Money from the Government and your Electric Utility - An Update on Utility Energy Efficiency Rebates

Dear Website Customer:

I am not used to the Government or my electric utility giving me any money, but that is just what has happened. The Texas Legislature gave us a big rebate on our electric bill when our electric industry was deregulated in 1999. A significant provision of Texas electric deregulation is a mandate to our electric transmission and distribution providers to improve energy efficiency in the marketplace. Specifically they must meet at least 10% of the growth in electric demand through conservation of energy.

This is where the big money comes in!

All the bills for electric power that is transmitted from the generation plants to our homes and businesses comes with a small extra. An incremental amount of money is sifted from each bill into a fund. This fund is specifically set aside to promote and compensate electric efficiency measures. The budget for TXU energy in 2003 is nearly $40 million dollars for this project. All of this money will be spent in the form of rebates to consumers and efficiency providers.  

TXU Energy Services has been doing these programs for more than two years, and we are fully up to speed on how to best implement a project for your home or business. Specifically, the programs of interest to you are the Air Conditioning Distributor Market Transformation Program, the Commercial and Industrial Standard Offer Program, and a newly funded program called the Air Conditioning Installer Training Program. Each of these programs has a net result of partially funding energy efficiency improvements to your home or business. Deciding which program is best for you is our job.

The Air Conditioning Distributor Program is an effort to directly rebate a portion of the incremental cost of higher efficiency air conditioning replacements. In most cases, the higher efficiency unit becomes only slightly higher in price once the incentive rebate is figured in. The better unit usually pays for itself in 18 to 24 months.

The Commercial Industrial Standard Offer Program provides incentives on larger projects for combined efforts of lighting efficiency and HVAC as well as other more complex measures. These programs have been used in light commercial buildings all the way up to university and hospital campuses. We can also take advantage of aggregating several buildings together with this program to mix and match efficiency improvements and maximize incentive rebate dollars.

The Air Conditioning Installer Training Program is a new and unusual program. It is an unfortunate, but known fact that HVAC equipment is not always installed properly. HVAC equipment undergoes the final step of manufacturing in your facility. This step is the one that makes the HVAC manufacturers lose sleep at night. This ambitious program is a process of training installers in the proper methods of installation.

Where you can benefit is in the verification process. Each contractor in this program will obtain incentive dollars for submitting installed HVAC systems to the rigorous verification process of the program. This will benefit you by having an third party inspector verify the proper installation of the HVAC system. This will benefit us by having a better-trained workforce providing quality systems for you. The incentives help to defray the costs of training and the verification process.

If you would like additional information about these programs, or others that I did not mention here, do not hesitate to call me at (214) 631-1010. I spend a significant amount of time on these programs, and can help you to find your way though the process.

Sincerely

KAHN MECHANICAL CONTRACTORS

Josh Kahn
TACL A370C

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