Testimony of David J. Leishman, and

Applied Proactive Technologies, Inc., with letters from Lowe’s Home Improvement Warehouse, MaxLite Lighting Products, Westinghouse Energy Group, and Harmony Lighting

Before the Connecticut Finance, Revenue and Bonding Committee

On Raised Bill 1160, An Act Concerning Revenue Adjustments

Section 17(e) – Transfer of Resources from the Energy Conservation and Load Management Fund

April 3, 2003

David J. Leishman, Ratepayer

David J. Leishman, President - Applied Proactive Technologies, Inc.

Shana Cockerham, Environmental Specialist - Lowe’s

Yon Sung, President - MaxLite

David H. Shapiro, Director – Westinghouse Energy Group

Jim Oullette, President - Harmony Lighting

Thank you for the opportunity to testify on Raised Bill 1160, Section 17(e), which would transfer $72 million from the electric-ratepayer funded Energy Conservation and Load Management programs in fiscal years 2004 and 2005 to the General Fund.

I am before you today as a Connecticut ratepayer and as a business concern working under a contract funded by the Energy Conservation Fund.

First, as a ratepayer living in Suffield Connecticut, I pay the conservation and renewable fee on my utility bills gladly. I am secure that the dollars are being spent to cause the use of energy efficient technologies, which in turn, eliminates hundreds of millions of pounds of carbon emissions, eliminates hundreds of millions of kiloWatt hours of energy from being generated, saves hundreds of millions of gallons of water, curtails the depletion of our natural resources - namely fossil fuels, and makes us more secure and less dependant on foreign resources.

I pay these fees knowing how the dollars are being spent and with knowledge regarding the benefits that are derived from those expenditures.

I question the legality of the Connecticut Government redirecting these dollars into the general fund - which I will certainly investigate.

I ask about those municipal electric customers who do not pay into the fund and who would be receiving benefits of the other ratepayers?

As an energy professional, and a business concern operating in Connecticut, I am aware that the C&LM Fund was established to enable the state to capture, in an organized and deliberate process, the economic and environmental benefits of energy conservation and load management. It was built on the experience of Connecticut and other states in designing effective approaches to this goal. The Energy Conservation Management Board, the electric utilities and the DPUC have worked diligently to implement programs which are cost-effective, provide benefits to all classes of ratepayers including the state and the towns, and make lasting improvements in the productivity of Connecticut. These benefits would be lost if the funds were simply allocated to particular recipients without the planning, coordination and safeguards that make the program successful.

My company’s responsibilities, in the State of Connecticut, include implementing Market Transformation Programs. Market transformation programs work within specifically targeted markets to shift the practices of production, stocking and sale, promotion and consumer purchases towards energy efficient technologies. These programs target lighting products, appliances, and electric motors and partner work with hundreds of manufacturers and retailers selling into and operating within the state.

These partners have devoted significant resources and made substantial investments within the State of Connecticut and with the Investor Owned Utilities. Many of these commitments are planed years in advance and Connecticut, after years of effort, is just starting to see the momentum being realized. Industry is now leveraging its dollars with those of the Conservation Fund to increase exposure and awareness of these energy efficient technologies. Industry has increased inventories to support these efforts based on the programs continued existence.

As attested by the letters attached to my testimony from Lowe’s, Westinghouse Energy Group, MaxLite Lighting Products, and Harmony Lighting, that momentum will not only be curtailed, it will be lost and these company’s businesses will be negatively impacted – they will be essentially, left holding the bag.

Additionally, this decision goes beyond the borders of Connecticut, it effects the entire Northeast region. Connecticut is an integral player in the regional effort to implement Market Transformation programs leveraging hundreds of thousands of dollars by implementing with shared resources. This decision will have a substantial impact on the ability of the region to influence industry dollars and resources and therefore effect the programs being implemented throughout the Northeast.

It will take several years for Connecticut to regain the momentum and infrastructure that it has – which is working, in place, and building.

Lastly, this decision has a farther reaching effect in the it will effect the pollution levels in 2014. Those levels, will be a result of technologies purchased in 2004.