EEI’s principals, Paul A. Cillo and Harlan Lachman, each have more than 40 years of field-based program design, implementation, and evaluation experience. They have provided on-site efficiency analysis and project oversight for hundreds of homes, small and large commercial facilities, schools, hospitals and colleges. They have designed and managed low-income fuel assistance and weatherization programs in Vermont, Ohio and Texas; Vermont’s Residential Conservation Service (RCS) Energy Auditing and Arranging Service Programs; and award-winning utility Demand-Side Management Programs, including the Burlington Electric Department’s Neighbor$ave direct-install leasing program. They have performed or participated in numerous program evaluations, including evaluations of low-income programs, utility programs, and Vermont’s RCS program.
Cillo and Lachman’s first worked together on Vermont’s Residential Conservation Service program in 1980. Since 1985, they were partners at Energy Solutions, Inc. prior to founding the Energy Efficiency Institute, Inc. in 1988.
Cillo and Lachman’s current work includes the development and design of resource efficiency and renewable energy programs using Pay As You Save® (PAYS®), a market-driven system designed to stimulate widespread utility investment in resource-efficiency measures in homes and businesses. They launched the PAYS® concept with their 1999 NARUC-sponsored paper on the subject and in 2001 designed the first PAYS pilots for two New Hampshire utilities. They are the foremost experts on PAYS and tariffed on-bill efficiency programs.
Program Design & Management Assistance
2018 – 2021 Missouri Office of the Public Counsel (OPC)
In 2018, EEI prepared a critique of The Cadmus Group feasibility study for Empire District Electric Company. OPC filed EEI’s report in ER-2016-0023 before the Public Service Commission of the State of Missouri. Since then, EEI has reviewed filings and testimony for OPC regarding PAYS in Dockets regarding Ameren Missouri and Evergy (then Kansas City Power & Light) and consulted with Geoff Marke, OPC’s Chief Economist, on myriad matters regarding PAYS implementation in Missouri. We also worked with Renew Missouri. Ameren and Evergy implemented programs in 2021. Spire, Inc. and Empire District are likely to implement programs in 2022. Almost all investor-owned utility residential customers in Missouri will have access to a PAYS program by the fourth quarter of 2022.
2010 – 2021 Sonoma Regional Climate Protection Authority (RCPA); Program Design & Management Assistance
As part of a Department of Energy (DOE) American Recovery and Reinvestment Act grant, worked with Frontier Energy on behalf of their client, RCPA, to help the Town of Windsor’s municipal water utility design a PAYS pilot program that in two years helped 242 single family customers (3% of all customers) and 233 renters (38% of all renters) install water and energy saving measures without federal, state, or water utility subsidies for all but one measure. An internal impact evaluation showed 19.8% water savings compared with savings of 9.7% and 5.1% for the Match (a control group with similar characteristics) and Random groups, respectively. Based on the success of this pilot, RCPA secured passage of California’s Water Bill Savings Program Act. RCPA has established a regional program to address identified barriers to utilities and participants and the first utility’s program was implemented in 2021. EEI continues to supply RCPA and Frontier Energy with program design and management assistance.
2017 Sonoma Clean Power; Program Design
Co-authored Frontier Energy’s report to Sonoma Clean Power, one of California’s Community Choice Aggregators (CCA), detailing the benefits and challenges of a CCA implementing a tariffed on-bill program based on the PAYS system compared with the benefits and challenges of implementing an on-bill finance or repayment loan program similar to the one developed by Pacific Gas and Electric, Inc. The report was favorably received.
2016 Ouachita Electric Cooperative (Arkansas); Program Design & Management Assistance
Ouachita became the first utility to use EEI’s intellectual property that included a Standard Implementation Plan for an Inclusive Utility Investment program, eliminating the need for customized program design for residential weatherization programs. EEI provided the agreements, forms, and worksheets, consulting services, assistance in obtaining regulatory approval (drafting tariffs and testimony) for a program that in the first 4 years of operation invested $2.8 million for a utility with fewer than 7,000 members, reaching 5% of their customers, including all renters in multi-family homes in which tenants paid for their utilities.
2015 Roanoke Electric Cooperative; Program Design (North Carolina)
Assisted managers at Roanoke Electric with all aspects of program design for the first utility to use USDA’s Energy Efficiency and Conservation Loan Program to provide capital for a tariffed on-bill program. Worked with outside vendors including Clean Energy Works, Advanced Energy, and OptiMiser Energy to develop and implement training programs for Upgrade to $ave’s program operator, measure assessors, contractors, and customer service staff. Upgrade to $ave successfully replaced a loan program that served ten customers out of the 1,000 who indicated interest. To date, approximately 75 of the 100 who were denied services in the loan program have participated in Upgrade to $ave. In five years, Upgrade to $ave has served 638 members, 4.5% of all customers.
2009 – 2010 Mountain Association for Community Economic Development (Kentucky); Program Design & Expert Witness Assistance
Worked with MACED’s Strategic Initiatives Director on development of tariffed on-bill programs based on the PAYS® system for Kentucky public power utilities. MACED purchased rights to EEI intellectual property (forms, contracts and worksheets developed for the PAYS® system). EEI advised on their use and guided MACED’s testimony and strategy before the Kentucky Public Service Commission. On December 16, 2010, the Commission approved MACED’s How$martKY program (Case No. 2010-00089).
2007 Midwest Energy; Management Assistance (Kansas)
Assisted managers at Midwest Energy with design, obtaining regulatory approval, and implementation of their How$mart program based on PAYS®. Midwest Energy used EEI developed forms, contracts and contractual relationships as the basis for their How$mart program, which has been operating since December 2007. More than 2,100 How$mart projects with $16,000,000 in efficiency improvements have been completed in residential, rental, and commercial buildings.
2007 Hawaii Renewable Energy Alliance; Management Assistance
On behalf of Hawaii Renewable Energy Alliance, provided management assistance to Hawaii’s four electric utilities, required by Hawaii statute (Act 240) to implement three-year solar water heating (SWH) pilots based on the PAYS system to help customers who were renters or who had previously rejected SWH systems as too costly to purchase. Three utilities (HECO companies) took advantage of this assistance and offered PAYS pilots through their successful Solar$aver programs. High demand exhausted program budgets in two years. Evaluation showed 74% of second year participants accepted the PAYS offer after previously rejecting other programs’ offers.
2001 New Hampshire Electric Co-op/Public Service of New Hampshire (now Eversource); Program Design & Management Assistance
Assisted the two utilities with a PAYS program design for submission to the New Hampshire Public Utilities Commission. The utilities’ submission included a detailed work plan, with budgets, draft forms and contracts, target markets, proposed tariffs, and plans for implementation, training, and evaluation. The Commission approved the design on November 29, 2001. With EEI’s program start up and staff training assistance, PSNH launched the first PAYS program in the nation on January 1, 2002 and NHEC officially began its pilot on June 1, 2002. A positive evaluation by GDS Associates, Inc. is available on EEI’s website (eeivt.com). Both programs are still operating.
1994 – 1997 Texas Utilities Electric Company (TUEC) and Central and South West Utilities; Low Income Programs
After serving as an expert witness for Texas Legal Services Center (c.f., below), developed three low-income weatherization piggyback programs to meet the needs of TUEC’s (now Oncor’s) low-income customers and the requirements of a Texas Public Utilities Commission’s order in Docket 11735. The programs used existing service-provider networks (i.e., low-income weatherization providers) and innovative bidding and lease fee mechanisms to minimize utility program costs. The programs had a positive benefit-cost ratio, using both the Total Resource Cost (TRC) and Utility Cost (UC) tests (TUEC’s programs were independently evaluated by RLW Analytics).
2016 – 2019 Appalachian Electric Cooperative (Tennessee)
With assistance from Clean Energy Works and Tennessee’s Office of Energy Programs provided written answers (and responses during conference calls) to various Tennessee Valley Authority (TVA) staff, AEC’s regulator, and at a Technical session for TVA. These efforts culminated with TVA’s approval of AEC’s PAYS tariff, which was EEI’s latest version of the Model PAYS® Tariff. Program services were offered to AEC members beginning in March, 2019. TVA’s approval provides a road map for other Tennessee cooperatives interested in implementing a PAYS program.
2015 – 2016 Ouachita Electric Cooperative (Arkansas)
Advised Mark Cayce, General Manager, regarding Ouachita’s filing for approval of a PAYS tariff by the Arkansas Public Service Commission. Provided Ouachita with the latest PAYS model tariff, edited testimony for Mr. Cayce and Michael W. Searcy, Ouachita’s expert witness, and prepared their responses to Commission inquiries. The Commission approved Ouachita’s PAYS tariff in its February 8, 2016 order in Docket No. 15-106, Order No. 2.
2006 – 2012 Hawaii Renewable Energy Alliance (HREA)
Provided the HREA with support in Docket No. 2006-0425, examining the issues and requirements raised by, and contained in, Hawaii’s Solar Water Heating Pay As You Save Program (“SWH Financing Program”), Act 240, Session Laws of Hawaii (2006) (“Act 240”) and Docket No. 2011-0186, Instituting a proceeding to investigate the implementation of on-bill financing. Docket 2006-0425 resulted in the HECO companies’ successful implementation of its Solar$aver pilot.
2007 – 2010 Midwest Energy (Kansas)
Mountain Association for Community Economic Development (MACED)
Advised key staff about the regulatory issues associated with obtaining approvals for PAYS tariffs in Kansas and Kentucky. Provided precedents and successful responses to questions from Commission staff and intervenors. The Kansas Corporations Commission finalized its approval of Midwest Energy’s tariff on December 20, 2007; and the Kentucky Public Service Commission approved a tariff based on the PAYS system for a number of cooperative utilities advanced by MACED on December 16, 2010.
2008 Environmental Defense Fund (EDF) (Texas)
Served as an expert witness to EDF in Docket 35717. Helped design the overall strategy, prepared testimony, and helped to draft testimony for other key witnesses. EDF’s argument in this case was similar to one EEI used successfully in 1993 (Docket 11735). The basic argument was that Texas utility customers owning or living in large apartment complexes were paying for programs that effectively precluded their participation. EEI prepared a concept paper that provided details about the type of program needed to serve these customers. The Public Utility Commission of Texas ruled efficiency programs would not be decided in a rate case.
2004 New Hampshire Public Interest Research Group
Served as expert witness to NHPIRG in Docket DE-04-052, which was addressing whether utility PAYS pilots should continue. The Commission ordered both utilities which had implemented PAYS pilots to continue offering the PAYS tariff to customers through 2007. Public Service of New Hampshire (now EverSource) continues to implement its Smart$tart program to its municipal customers.
1993 – 1995 Texas Legal Services Center; Expert Witness
Provided testimony focusing on the special needs of low-income ratepayers as part of TUEC Docket 11735. Our testimony included three cost-effective program designs and budgets, targeting DSM services to low-income customers and addressed the impact of cost recovery, performance, and marketing decisions on low-income persons. In its order, the Commission determined that the utility’s DSM programs had failed to overcome market barriers to participation by low-income customers and ordered the utility to submit, in conjunction with interested parties, programs specifically designed to meet the needs of low-income persons as part of its integrated resource plan submission.
1993 Office of the Massachusetts Attorney General; Expert Witness
Provided testimony to the Massachusetts Public Utilities Commission on the performance of Commonwealth Electric Company and Cambridge Electric Light Company regarding their implementation of DSM programs. EEI’s testimony explained the value of establishing milestones for future DSM activity, arranging for independent evaluation of such DSM activity, and for implementing predetermined penalties in the event of continued mismanagement of DSM by these utilities. The Commission acknowledged the utilities to be remiss in fulfilling their obligations and took what it considered appropriate steps to address their non-performance.
2017 – 2021 Clean Energy Works; Assistance in Developing Legislation
Provided assistance starting in 2017 through Clean Energy Works to Illinois parties interested in drafting legislation appropriate for a customer choice state to allow PAYS programs to be implemented, culminating in the passage and signing into law of Senate Bill 2408 in September. EEI is planning to add the PAYS enabling language to its website as a starting point for customer choice states.
2020 – 2021 Solar United Neighbors (SUN); Assistance in Developing Legislation
In the face of competing and incompatible recommendations, EEI has been working without reimbursement directly with Sun’s Bryce Carter and Liz Veazey, reviewing various drafts, explaining challenges with competing recommendations, and why some good ideas are incompatible with PAYS. SUN is still negotiating with interested parties and seeking legislative backing for its legislation.
2008 – 2020 Model Legislation
In response to work performed for Rhode Island and Vermont in 2008, EEI developed generic model PAYS legislation available on EEI’s website. It has been updated throughout the years, and as noted above, will be supplemented with Illinois solution to implementing PAYS in a customer choice state.
2002 – 2021 Program Design Clients (Identified Above)
Each of EEI’s program designs have stipulated process and impact evaluation guidelines for the program supporting replication and expansion of these efforts. Recent work with Liberty Homes and Clean Energy Work will result in published evaluations of results of PAYS programs at Ouachita and Roanoke electric coops.
2013 – 2017 Frontier Energy (formerly Bevilaqua Knight, Inc.)
Assisted Frontier Energy oversee the Cadmus Group’s 2013 Process Evaluation Report for an On Water Bill Pilot (Town of Windsor, CA) for the Sonoma Regional Climate Protection Authority by reviewing instrument designs, protocols, and reviewing first draft. Provided similar review and assistance with Frontier Energy’s 2017 Internal Impact Evaluations of Windsor’s Single Family and Multifamily programs.
1995 Centerior Energy
Provided evaluation of Centerior Energy’s Reduce the Use program using the four tests of the California Standard Practice Manual. Used CEI program progress reports, expenditures, avoided costs, and discount rate combined with a custom designed evaluation tool and enhanced engineering savings estimates to determine program cost effectiveness. Although the program failed Ohio’s Revised Utility Cost test, it passed the original Utility Cost and TRC tests (the test in effect when the program was designed and operated). The evaluation was accompanied by program worksheets and recommendations for potential enhancements to the program.
1990 Burlington (VT) Electric Department (BED)
Assisted BED in obtaining evaluation assistance from Lawrence Berkeley Laboratory (LBL) and worked with BED and LBL staff to design evaluation of BED’s supplemental fuel switching program. Also designed and participated in BED’s focus group to field test the program as recommended in EEI’s original program design.
SELECTED PUBLICATIONS, PRESENTATIONS & AWARDS
2019 The Missouri Office of the Public Counsel. Response to PAYS® Feasibility Study prepared for Kansas City Power and Light by Cadmus. Drafted testimony for the Public Counsel
2018 ACEEE. Summer Study on Energy Efficiency in Buildings. What is inclusive financing for energy efficiency, and why are some of the largest states in the country calling for it now?
2011 Sonoma Regional Climate Protection Authority. Tariffed On-Water Bill Program for Sonoma County based on Pay As You Save®. County-wide Technical Session
2008 New York State Public Service Commission. Efficiency Portfolio Standard Proceeding, Committee on On-Bill Financing & Tariffed Installation Programs; Pay As You Save® (PAYS®) & On Bill Financing. Presentation at technical session
2007 Hawaii Public Utilities Commission. Pay As You Save® (PAYS®) (on behalf of Hawaii Renewable Energy Alliance). Presentation at technical hearing
2007 Hawaii House Energy Committee. Pay As You Save® (PAYS®) (on behalf of Hawaii Renewable Energy Alliance). Testimony
2005 New York State Energy Research and Development Authority, Albany, NY; Potential for Development of PAYS® in New York State. Commissioned paper with Fred Zalcman and Daniel Rosenblum of the Pace Energy Project at Pace University
2000 New Hampshire Public Utilities Commission; Concord, NH; Pay As You Save® Energy Efficiency Products; Presentation
1999 National Association of Regulatory Utility Commissioners Committee on Energy Resources & the Environment; PAY AS YOU SAVE® ENERGY EFFICIENCY PRODUCTS — Restructuring Energy Efficiency; Commissioned paper
1995 National Association of Regulatory Utility Commissioners; A Win/Win Approach to DSM; Presentation
1994 Electricity Journal; A Win/Win Approach for C&I Customers; Volume 7, Number 9; November 1994
1989 Electric Power Research Institute; When Electric Utilities Will Invest in Energy Efficiency; Volume 1; EPRI CU-6367; April 1989. Refereed Conference Proceedings.
Mr. Geoff Marke; Chief Economist; Missouri Office of the Public Counsel; Program Design and Regulatory Assistance; (573) 751-5563.
Dr. Holmes Hummel: Founder and Chief Executive Officer Clean Energy Works. Training in the PAYS system and mechanics, provide recommended legislation and testimony, co-authored papers, review and edit FAQs and presentations, draft PAYS tariffs for different applications; (336) 939-6741
Ms. Tammy Agard: Co-Founder and Chief Executive Officer EEtility, Inc. Training in implementation of PAYS system, drafted testimony submitted by City of Minneapolis, edited forms and agreements, help in resolving implementation issues; (501) 351-5212
Mr. Chris Bradt; Frontier Energy.; Program Design and Management; (510) 463-6127
Ms. Nancy Brockway; Consultant. Expertise on Utility Regulatory Policy; (617) 645-4018
Mr. Lachman co-founded EEI in 1988. He has more than 40 years of experience in resource efficiency program design, evaluation, management, and training. His energy-related work has included setting up and managing low-income, state and utility energy efficiency programs, analysis and design of residential, commercial and industrial utility DSM programs, training field staff and program operators, and providing expert witness testimony. He has been a co-author of papers, articles and presentations on energy efficiency and its impacts on utilities, participants and non-participants.
Mr. Lachman received his Bachelor of Arts degree in Psychology from Columbia College in 1972. He received his Masters Degree in English from Columbia University’s Teachers College in 1974. Before founding the Energy Efficiency Institute, he was a principal of Energy Solutions Inc., the executive officer of Vermont’s Residential Conservation Corporation; a regional and associate director of the University of Massachusetts’ Energy Extension Service; and the Energy Director of the Bennington-Rutland (VT) Opportunity Council. During 2010, he was hired to take over temporary management of the State of Vermont’s low-income weatherization program. Prior to his work in resource efficiency, Mr. Lachman taught English and basketball in public schools and helped manage a multi-million dollar real estate and property management firm in New York City.
Paul A. Cillo
Mr. Cillo co-founded EEI in 1988. He has more than 40 years of experience in resource efficiency program design, evaluation, management, and training. His energy related work has included setting up and managing state and utility-operated energy efficiency programs, energy analysis and retrofit management for commercial and industrial clients, analysis and design of residential, commercial and industrial utility DSM programs, training field staff and program operators, and providing expert witness testimony. He has been a co-author of numerous articles and presentations on energy efficiency and its impacts on utilities, participants and non-participants. Mr. Cillo served in the Vermont House of Representatives from 1988 – 1998 including four years on the Ways and Means Committee and four years as Majority leader. He chaired the Vermont House’s Special Committee on Electric Utility Restructuring in 1997. He was a member and Vice-chair of the National Conference of State Legislatures’ Advisory Council on Energy.
Mr. Cillo received his Bachelor of Arts degree in philosophy from the University of Vermont in 1975. Before founding the Energy Efficiency Institute, he was a founder of Energy Solutions Inc., and program manager of Vermont’s Home Energy Audit Program. Prior to his work in energy efficiency, Mr. Cillo was employed by an electrical contracting firm.