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ConEd Issues RFI For Low-Income Demonstration Projects (Includes Financial and Billing Innovations, DER, Efficiency)

Utility Says Current Energy Marketplace Provides "Sub-Optimal" Experience To Low-Income Customers

November 17, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Consolidated Edison has issued a request for information for parties to propose one or more demonstration projects, "that will test innovative approaches to helping low- and moderate-income [LMI] Con Edison customers."

"By partnering with 3rd parties to provide LMI customers new products and services – and provide new ways of delivering existing products and services – Con Edison can address access and affordability challenges for LMI customers while also achieving its own objectives in customer service and operational excellence," is the hypothesis to be tested under the demonstration projects.

The range of potential products and services that could address the objectives set forth in this RFI is broad and multifaceted, ConEd said

Solutions sought under the RFI include:

• Energy efficiency

• Distributed energy resources (or DER)

• Financial and billing innovations

• Energy-related education and outreach

• Other (a catch all category)

Regarding financial and billing innovations, ConEd said in the RFI that, "[i]nnovative financing approaches such as on-bill finance or repayment, pre-payment, and a variety of measures to reduce bill volatility, can be important tools to help LMI customers." [emphasis added]

"Con Edison realizes that the categories of energy efficiency, distributed energy resources (DER), financing and billing innovations, and education/outreach do not necessarily capture every good idea that could serve our LMI customers. Respondents whose ideas do not fit neatly into any of the categories above may use this section to describe their solution," ConEd said

ConEd said the goal of the RFI is to identify and develop programs to assist low-to-moderate income customers (LMI) in the following areas:

• Access: Help LMI customers access clean energy and new tools and services

• Affordability: Help LMI customers manage energy use, control costs, and reduce “energy burden”

• Impact: Achieve energy savings, greenhouse gas reductions, system improvements, and local co-benefits

ConEd expects to use responses to the RFI in formulating a future demonstration project under the PSC's Reforming the Energy Vision process.

In the RFI, ConEd said, "In addition to the many economic challenges encountered by LMI customers – such as insufficient access to capital, affordability and bill predictability challenges – the current energy marketplace also provides LMI customers a sub-optimal experience. For instance, some LMI customers have been the victim of unethical behavior by Energy Services Companies (or ESCOs), and many of the new tools and technologies available to improve the customer experience have been inaccessible."

ConEd noted that the PSC has adopted a moratorium on ESCO service to customers who participate in utility low-income discount programs (which may be a narrowed universe of customers than the LMI customers which ConEd seeks to assist through the RFI), which, as of the time of the RFI writing, was under a stay issued by a state supreme court

LMI customers, "have not had the same opportunity to benefit from energy innovation as more affluent customers," ConEd said

ConEd said that RFI respondents, "should describe how customers will experience their product or service, from start to finish. Con Edison seeks partners who will exhibit the qualities of empathy, credibility, responsiveness, accountability, and commitment in dealing with customers."

ConEd will allocate up to $25 million to the LMI demonstration. "It is likely that the $25M budget will be used to fund more than one demonstration project proposed through this solicitation. Therefore, Con Edison will look kindly on cost effective responses and third-party funding matches," ConEd said

See ConEd's RFI here

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