Pickup Trucks and Broken Hearts: Analysis of a Texas Upstream A/C Incentive Program

Glenn Garland, David Gordon, and Richard Necaise, ICF Consulting, Inc.
Bob Drawe, Reliant Energy HL&P

Keywords

Abstract

This abstract will present the lessons learned of Reliant Energy HL&P’s A/C Distributor program in Houston, Texas. This program was the first market transformation program offered for A/C in Texas and the program experienced numerous twists and turns in 2001.

The paper will present the unique upstream bidding structure that Reliant used to promote higher SEER among program participants; which exceeded 14 SEER in 2001. This paper will describe how controversial issues were ultimately resolved such as:

independent condenser coils;
limiting the program to select dealers;
how distributors failed to utilize sales training; and
why load calculations weren’t performed

which will benefit other A/C programs. This paper will also share the results of a baseline study completed without the benefit of ARI data. A/C Distributors have resisted past participation due to ARI restrictions and we will show how we gained their participation through a partnership to pool data so distributors could know their market position.

This paper will present an innovative bidding structure. Bidders developed a marketing plan for the 2002 program. The marketing plan promoted a “pull” method where distributors outlined their role in promoting market transformation activities such as training, education, sizing and finance options, as opposed to program designs that “push” these activities.

The prime areas of discussion will be the market penetration of high efficiency, the impact on dealer’s and contractor’s sales practices and consumer knowledge of high efficiency A/C.

It also outlines the design, implementation and ongoing evolution of this program, which is based on requirements outlined in a program template issued by the Public Utility Commission of Texas (PUCT).