Integrated Market-Based Efficiency and Supply for Small Energy Consumers: The Consumer Energy Cooperative

Eric Belliveau and John Plunkett, Optimal Energy, Inc. Bristol, VT
Beth Sachs, Vermont Energy Investment Corp. Burlington, VT

Keywords

Abstract

In states where utility restructuring has occurred, it has tended to benefit large energy customers, with little or no benefit accruing to small residential customers, and this is especially true for low-income households. These residential consumers often find themselves paying increased energy costs while large consumers enjoy price reductions. For this reason small consumers see little promise from utility restructuring.

Energy efficiency efforts in Vermont have focused on primarily on electricity savings, but less than 6% of Vermont households heat their homes with electricity. Therefore, there is enormous opportunity to create a market-based, unsubsidized retail service business to serve the segments ofthe market that have been typically ignored.

This paper describes the development ofthe statewide energy services cooperative - Consumerco” - that is dedicated to providing its members with the lowest possible total overall energy bills. Consumerco will provide both efficiency measures and fuels, to optimize both efficiency investment and energy mix for each member. It will use fossil fuels as the primary revenue source in its start-up, and will add electricity at a later date.

Consumerco has undertaken a pilot program with a local community action program and its Weatherization Assistance Program to offer “energy case management” services to its low-income members. Early results ofthis pilot will be discussed in this report.

In the final sections of this paper the results of the business plan financial model are discussed. Profitability and margin analysis are presented, supported by the list of assumptions used in formulating the business plan.