EEI’s principals, Paul A. Cillo and Harlan Lachman, each have forty 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 CFL 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 investment of 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 financing.
Program Design & Management Assistance
2019 LaGrange Utility System (Georgia)
With Southface Energy Institute (Atlanta, GA), developed a Framing Paper outlining the benefits and challenges of implementing the PAYS system at LaGrange, GA’s municipal electric utility. LaGrange is reviewing this information and determining whether or not it will implement a pilot in 2020.
2017 Sonoma Clean Power (California)
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 to 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)
Ouachita became the first utility to use EEI’s updated intellectual property including a Standard Implementation Plan for a Tariffed On-bill 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 the Ouachita program. During its first 4 years of operation this 7,000-member utility invested $2.8 million through the program and reached 5 percent of their members, including all renters in multi-family homes where tenants paid for their utilities.
2015 Roanoke Electric Cooperative (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, Upgrade to $ave. Worked with outside vendors including Clean Energy Works, Advanced Energy, and OptiMiser Energy to develop and implement training for the program operator, measure assessors, contractors, and member-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 percent of all customers.
2010 – 2019 Sonoma Regional Climate Protection Authority & Town of Windsor (California)
Funded by a Department of Energy (DOE) American Recovery and Reinvestment Act grant, worked with Frontier Energy on behalf of their client the Sonoma Regional Climate Protection Authority 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 percent of all customers) and 233 renters (38 percent of all renters), install water and energy saving measures with virtually no federal, state or water utility funding or subsidies. 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 the Water Bill Savings Act by the California Legislature in 2017 and is developing a regional program to address identified barriers to utilities and customers with a 2020 target for implementation.
2009 – 2010 Mountain Association for Community Economic Development (Kentucky)
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) for use with these utilities and EEI advised on their use. On December 16, 2010, the Kentucky Public Service Commission approved their use (Case No. 2010-00089). After 90 customers invested $687,517 in retrofits, 3 of the 4 public utilities implementing the pilot decided to move forward with a permanent tariff program.
2007 Midwest Energy (Kansas)
Assisted managers at Midwest Energy with design, obtaining regulatory approval, and implementation of their How$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 $16,000,000 in efficiency improvements have been completedin residential, rental, and commercial buildings.
2007 Hawaii Renewable Energy Alliance (Hawaii)
On behalf of Hawaii Renewable Energy Alliance, provided management assistance to Hawaii’s four electric utilities, required by Hawaii statute (Act 240) to implement three-year pilots based on the PAYSsystem to help customers who were renters or who had previously rejected solar hot water systems as too costly to purchase. Three utilities (HECO companies) took advantage of this assistance and offered PAYS pilots through their successful Solar$aver programs. High demand exhausted program budgets in two years. Evaluation showed 74 percent of second year participants accepted the PAYS offer after rejecting offers from previous programs.
2001 New Hampshire Electric Co-op/Public Service of New Hampshire (New Hampshire)
Assisted two utilities with program design for submission to the New Hampshire Public Utilities Commission using the PAYS system to increase customer investment in energy efficiency. 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 (now Eversource) 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).
1994 – 1997 Texas Utilities Electric Company and Central and South West Utilities (Texas)
Developed three low-income weatherization piggyback programs to meet the needs of TUEC’s (now Oncor) low-income customers and the requirements of a Texas Public Utilities Commission’s order in Docket 11735. The programs used existing service-provider networks (e.g., 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 (Tennesseee)
With assistance from Clean Energy Works and Tennessee’s Office of Energy Programs, provided written answers to and during conference calls with 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 implementing EEI’s latest version of the Model PAYS®Tariff. The program started operating 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 PAYS tariff approval from 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 provided answers 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 (Hawaii)
Provided the HREA with support for its efforts regarding Docket No. 2006-0425, to examine 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$aver pilot.
2007 – 2010 Midwest Energy (Kansas)
Mountain Association for Community Economic Development (Kentucky)
Advised key staff about the regulatory issues associated with obtaining approvals for PAYS tariffs in Kansas and Kentucky. Provided precedents and successful responses to questions from Commission staff and intervenors. The Kansas Corporations Commission finalized its approval of Midwest Energy’s tariff on December 20, 2007; and the Kentucky Public Service Commission approved a tariff based on the PAYS system for a number of cooperative utilities advanced by MACED on December 16, 2010.
2008 Environmental Defense Fund (Texas)
Served as an expert witness to EDF in Docket 35717. Helped design the overall strategy, prepared testimony, and helped to draft testimony for other key witnesses. EDF’s argument in this case was similar to one EEI used successfully in 1993 (Docket 11735). The basic argument was that Oncor Electric customers owning or living in large apartment complexes were paying for programs that effectively precluded their participation. EEI prepared a concept paper that provided details about the type of program needed to serve these customers. The Public Utility Commission of Texas ruled efficiency programs would not be decided in this rate case.
2004 New Hampshire Public Interest Research Group (New Hampshire)
Served as expert witness to NHPIRG in Docket DE-04-052. None of New Hampshire’s utilities wanted to implement all three elements of the PAYS tariff. The Commission ordered both utilities, which had implemented PAYS pilots, to continue offering the PAYS®tariff to customers through 2007. Public Service of New Hampshire (now Eversource) continues to implement its Smart$tart program to its municipal customers.
1993 – 1995 Texas Legal Services Center (Texas)
Provided expert witness 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 IRP submission.
1993 Office of the Massachusetts Attorney General (Massachusetts)
Provided testimony to the Massachusetts Public Utilities Commission on the performance by 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 pre-determined penalties in the event of continued mismanagement of DSM by these utilities. The Commission acknowledged the utility to be remiss in fulfilling its obligations and took what it considered appropriate steps to address its non-performance.
2002 – 2019 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.
2013 & 2017 Frontier Energy (California)
Assisted Frontier Energy (formerly Bevilaqua Knight, Inc.) 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 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 (Ohio)
Provided evaluation of Centerior Energy’s Reduce-the-Use program using the four tests of the California Standard Practice Manual. Used Centerior’s 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 TRC test (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 Electric Department (Vermont)
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.
1989 – 1996 Centerior Energy /TU Electric/Central Power & Light (Ohio & Texas)
As part of all of our program designs for these and other utilities, developed benefit-cost analyses using all four tests of the California Standard Practice Manual. All recommended programs passed the TRC, UC, and Participant Cost tests. Some of EEI’s Fair Share programs passed the Rate Impact Measure Test. All program designs included detailed plans for process and impact evaluation tailored to each utility’s resources and evaluation needs.
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
2016 Tennessee Valley Authority. Review of the PAYS®System. Technical Session
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
2008 American Solar Energy Society. Is PAYS®The Answer to Financing Solar Water Heating Systems? With Warren S. Bollmeier II of Hawaii Renewable Energy Alliance and Hermina Morita Hawaii House of Representatives. Refereed Conference Proceedings
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
2006 Washington, D.C. Energy Office. Introduction to PAYS®with the Pace Energy Project at Pace University (with support from the Ford Foundation)
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
2003 National Association of Regulatory Utility Commissioners Committee on Energy Resources & the Environment; NARUC Winter Committee Meetings; PAYS®Update. Presentation
2003 Connecticut Department of Public Utility Control, New Britain, CT; Pay As You Save®(PAYS®); Presentation at technical hearing
2001 National Association of Regulatory Utility Commissioners Committee on Energy Resources & the Environment; More Distributed Generation with Pay As You Save®; Commissioned paper
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
1996 National Association For State Community Services Programs; Making Enhanced Weatherization Cost Effective as Utility DSM(Utility Cost Test); Presentation
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
1992 National Consumer Law Center; Designing Cost Effective DSM Programs for Low Use Customers; Conference Presentation.
1989 Electric Power Research Institute; When Electric Utilities Will Invest in Energy Efficiency; Volume 1; EPRI CU-6367; April 1989. Refereed Conference Proceedings.
1988 Governor’s Special Commendation For Excellence in Energy; Vermont
1985 Department of Energy Technology Transfer Award.
Mr. Mark Cayce; Chief Executive Officer; Ouachita Electric Cooperative; Program Design; Management and Regulatory Assistance; (877) 252-4538.
Mr. Paul Piazza; Water Conservation Program Coordinator, Program Design and Management; Town of Windsor, CA (404) 838-5357
Dr. Holmes Hummel: Founder and Chief Executive Officer Clean Energy Works. Develop papers, review and edit FAQs and presentations, draft PAYS tariffs for different applications (336) 939-6741
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 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.