Thomas A Ledyard

59 James Vincent Drive

Clinton, CT 06413

May 12, 2003

Hon. Marc Ryan

Secretary, Office of Policy and Management

450 Capitol Avenue

Hartford, CT 06106

Dear Secretary Ryan,

My name is Thomas Ledyard. I am an Office Manager and Senior Consultant for RLW Analytics, Inc. At RLW, I manage a small office of ten consultants that perform implementation and evaluation services for Connecticut Light and Power and United Illuminating. I am writing to you as a lifetime citizen of Connecticut, a professional in the field of energy conservation and a father who is interested in passing on a healthy Connecticut environment to his two children.

I have noted recently that the State of Connecticut is in the process of moving conservation funds that the utilities collect from ratepayers into the General Fund. These funds were created by the Connecticut legislature to promote efficient energy use, save residents and businesses money on their electric bills, promote economic development, reduce electric demand and help reduce air pollution. My interpretation of this undertaking is that fees that were originally intended to assist utility customers in conserving energy have effectively become a tax without going through any legislative process. Profoundly, these actions mean that all energy efficiency and energy conservation programs sponsored by the utilities and implemented by hundreds of other organizations will end on or around July 1, 2003. As a long time small business operator in the State of Connecticut who has been contributing to these funds, I find the prospect of this appropriation of public funds to be highly concerning and inappropriate, at best.

My overall contention, however, is that through its actions the State is failing to recognize the importance of the activities funded through the conservation trust. The decision to move the conservation funds reveals a cast of mind contrary to my own, although we do have a common interest -- doing what is best for Connecticut. So, I would like to present several of the troubling implications I believe to be inherent in the decision to dissolve the conservation trust, as well as present many of the benefits that I believe provide compelling reasons for continuing the fund without change.

I have been involved in the performance of several recent evaluations on the performance of Connecticut programs subsidized by the conservation fund. These evaluations include:

v The evaluation of two residential lighting initiatives co-sponsored by Connecticut Light and Power and United Illuminating, in which RLW determined that over 59 GWh of electric savings was saved in 2000 and 2001, with another 761 GWh of savings estimated when considering lifetime of the lights installed.

v The evaluation of an Energy Star Homes initiative sponsored by CL&P in which 37,934 MWh of savings was achieved in the year evaluated and another 687,855 MWh of savings were estimated as lifetime energy savings.

v The evaluation of a Commercial and Industrial New Construction Program sponsored by CL&P in which 725 MWh of savings was achieved in the year evaluated and another 18,168 MWh of savings were estimated as lifetime energy savings.

All of these evaluations suggested that participants undertook conservation activities in the programs that would not have been undertaken in the absence of the programs. Consider the many programs aside from these that are generating similar savings, along with all of the attendant benefits. In the absence of these initiatives, most of these direct energy savings and latent benefits would go untapped.

There are indeed several benefits that these types of programs generate for the State of Connecticut. These include the following;

v These programs result in a reduced dependence on fossil fuel or nuclear power plants, with direct benefits also including a diminished need for the siting and building of new plants and a reduction in the emissions of pollutants resulting from the generation of power.

v These programs provide a tool for the promotion of both proven and emerging technologies. Specifically, these programs have shown a direct impact in creating a self-sustained demand among energy efficient product supply chains (manufacturers, distributors, and retailers) to produce and provide energy efficient products to the market.

v These programs provide numerous positive economic benefits, including those directly derived from having businesses and residential customers reduce their energy burden, thereby having the opportunity to use their earned money elsewhere in the economy.

As an energy conservation professional in Connecticut for the last nine years, I have personally met hundreds of business owners, residential customers, and even schoolchildren that have participated in a Connecticut Light and Power or United Illuminating program. Each of them have presented me stories of how their participation has positively impacted their business, home, and life. I recently evaluated a program sponsored by United Illuminating (the eesmarts Program) designed to encourage school children to conserve energy. In an eight-month period, over 3,600 students from grades kindergarten through twelfth grade participated in this program. The evaluation concluded that ‘the intended program benefits, such as teaching students energy conservation, improving a broad range of academic skills and creating an energy conservation ethic appear to be occurring’. Without the conservation fund, these immediate and future conservation and societal impacts would not have been possible.

It is also important to note that RLW and many other businesses in the State of Connecticut have devoted significant resources and invested substantial time to assist in the successful implementation and evaluation of these programs. I believe there are untold liabilities hidden in the dissolution of the fund, including lost momentum with program marketing and the loss of opportunities in the companies and homes that have committed to participating in the program(s) in the near future. Customer education campaigns and market transforming initiatives are likely to be particularly difficult to recover from if and when these funds are brought back.

RLW employs approximately 10 professional consultants in our Middletown office. While we do a substantial amount of business outside of Connecticut, should the conservation fund be dissolved, we will be forced to consider the laying off of two to three employees due to the anticipated workload reduction. There are many other organizations involved in this industry; including contractors, inspectors, auditors, and the utilities. Each of these organizations has hundreds more employees whose jobs would be immediately put at risk as well. Clearly, this latent impact needs to be heavily considered as part of the decision-making process.

I would also like to note that several individuals from my organization have highlighted Connecticut conservation activities and its role both nationally and regionally at industry conferences. Connecticut is generally considered a leader in the delivery of successful energy-efficiency programs within the industry. Given the significant role Connecticut plays on the national level, its withdrawal from the energy efficiency community can be expected to impact other states in the region, and indeed throughout the country.

In closing, I would like to encourage you and the legislature to allow the conservation trust to serve the purpose for which it was created. Each benefit of the funds that I have cited above is substantial and far reaching. I firmly believe that these benefits will go beyond any short-term gains to be had by using these funds to supplement the general fund. My indignation at the prospect of the state re-appropriating conservation funds is exceeded only by my resolve to present all of the direct and indirect benefits of the proper use of these funds so you and your colleagues can make the right decision. I am challenging you to figure out a way to manage the fiscal affairs of the State of Connecticut in a way that is consistent with, and honors, the principles that have been set out for the conservation fund.

Sincerely,

Thomas Ledyard

Cc: John Rowland, Governor, State of Connecticut

Sen. Kevin B. Sullivan, President Pro Tempore

Rep. Moira K. Lyons, Speaker of the House

Sen. Martin M. Looney, Majority Leader

Rep. Robert M. Ward, House Republican Leader

Rep. James A, Amann

Sen. Toni Nathaniel Harp

Rep. William R. Dyson

Sen. Donald E. Williams Jr.

Sen. Eilene M. Daily

Sen. Louis DeLuca