tag:blogger.com,1999:blog-6995312288442187312024-03-08T07:06:38.703-05:00Energy Efficiency Specialists - Do more with lessMore Comfort, Less Energy!
Without adding much time or effort, using the "Comprehensive Home Performance" approach we are able to dramatically increase your comfort AND reduce your energy bills.
It may seem too good to be true. Go to my old Blog to see actual results!! http://tedkidd.blogspot.com/
Ted Kiddhttp://www.blogger.com/profile/14283149266019846669noreply@blogger.comBlogger20125tag:blogger.com,1999:blog-699531228844218731.post-23489150821139176692020-03-05T21:56:00.002-05:002020-03-05T21:56:10.248-05:00Link to client energy results blog<br />
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<a href="https://tedkidd.blogspot.com/">https://tedkidd.blogspot.com/</a>Ted Kiddhttp://www.blogger.com/profile/14283149266019846669noreply@blogger.com1tag:blogger.com,1999:blog-699531228844218731.post-37555513324138448372013-06-12T16:40:00.002-04:002013-07-09T20:16:16.147-04:00JUNE CONTRACTOR UPDATE: Trust, Truth, Transparency<div class="separator" style="clear: both; text-align: center;">
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<span style="background-color: white; font-family: Arial; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><b>I got some surprisingly positive responses to my February update!</b></span><span style="background-color: white; font-family: Arial; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: white; font-family: Arial; white-space: pre-wrap;">Many were surprised (and a little annoyed) that the program had not informed them about their numbers, particularly where they were weak</span><span style="background-color: white;"><span style="font-family: Arial; white-space: pre-wrap;">. </span><span style="font-family: Arial; line-height: 20px; white-space: pre-wrap;">Contractors seem to mistakenly assume if there are problems with results the program will let them know. </span></span></div>
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<span style="background-color: white; font-family: Arial; line-height: 1.15; white-space: pre-wrap;">But ultimately Contractors liked the idea of tracking their work, independent data showing where they excel they can share with clients, data where they are weak they can take to their crews, and having various measures of quality to compare where they stand against their competition. </span><br />
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<span style="background-color: white; font-family: Arial; line-height: 1.15; white-space: pre-wrap;">Who agrees a dramatic overhaul is needed? Who think this program is not a great example of</span><span style="background-color: white; color: #500050; font-family: Arial; vertical-align: baseline; white-space: pre-wrap;"> “</span><a href="http://bit.ly/X40qFn" style="text-decoration: none;"><span style="background-color: white; color: #1155cc; font-family: Arial; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">When Your Incentive System Backfires</span></a><span style="background-color: white; color: #500050; font-family: Arial; vertical-align: baseline; white-space: pre-wrap;">.” </span><span style="background-color: white; color: black; font-family: Arial; vertical-align: baseline; white-space: pre-wrap;"> Does this EMPOWER silliness offers the answer, or is it simply more of this death by a thousand cuts? <i>How about a system that lets you sell whatever you want, where job approval incentive isn’t about "cost effectiveness pass/fail”? </i></span></div>
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<span style="background-color: white; font-family: Arial; line-height: 1.15; vertical-align: baseline; white-space: pre-wrap;"><b>Seems dissatisfaction with NY HPwES is at an all time high. </b></span><span style="background-color: white; font-family: Arial; line-height: 1.15; vertical-align: baseline; white-space: pre-wrap;"> Production is as low as it’s been in nearly a decade, and people are lining up to leave. Is anybody having fun with SIR, TRC, ProForma Tools, or the ever more confusing “deemed cost effective” tweaks by NYSERDA? </span><br />
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<span style="background-color: white; font-family: Arial; vertical-align: baseline;"><i><span style="line-height: 1.15; white-space: pre-wrap;"><b>How about a system</b> where you </span><span style="line-height: 18px; white-space: pre-wrap;">don't</span><span style="line-height: 1.15; white-space: pre-wrap;"> continuously wonder what you can sell?</span></i></span><br />
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<span style="background-color: white; font-family: Arial; font-style: italic; line-height: 1.15; white-space: pre-wrap;"><b>How about a program</b> where the government gets energy savings at the price it wants to pay, </span><br />
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<span style="background-color: white; color: black; font-family: Arial; font-style: italic; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">...the consumer gets home improvements for the net cost they were told, </span><br />
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<span style="color: red;"><b><span style="background-color: white; font-family: Arial; font-style: italic; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">...and we can focus on designs that meet needs, wants, and budget, </span><span style="background-color: white; font-family: Arial; font-style: italic; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">rather than software games? </span></b></span></div>
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<i><span style="background-color: white; color: #38761d; font-family: Arial; font-weight: bold; white-space: pre-wrap;">How we think about "Home Performance" creates a fundamental orientation to our view of how programs should structure incentive. It can create bias that prevents seeing alternatives....</span></i><br />
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<span style="background-color: white; color: #38761d; font-family: Arial; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><i><span style="font-size: large;">...IN THIS UPDATE </span>let us explore TRUST and TRUTH,</i></span><span style="background-color: white; color: #38761d; font-family: Arial; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> and consider an outline for a different way of thinking. A different way programs might provide incentives.</span><span style="background-color: white; color: black; font-family: Arial; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> A different way for them to view and value projects. At the end I will share the outline of a completely different way the program could be designed. A design that allows for simple job approval, unlimited measures (windows, water heaters, and heat pumps too), and most importantly recognition and reward for excellence. </span></div>
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<span style="background-color: white; color: black; font-family: Arial; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">TRUST and TRUTH lead to really big sales.</span><span style="background-color: white; color: black; font-family: Arial; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> I think the only way to really achieve TRUST and TRUTH is with TRANSPARENCY. Past history of ability to deliver on promises could be the huge trust bridge Home Performance needs to really grow demand. WE NEED JD POWERS FOR HOME PERFORMANCE. </span></div>
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<span style="background-color: white; color: black; font-family: Arial; font-size: 11px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">"I saw a study ...that said most people basically only believe they will see 25% of what they are told they will save." "...perhaps a big part of why savings does not sell is that people (rightfully) discount the value." </span></div>
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<span style="background-color: white; color: black; font-family: Arial; font-size: 11px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Matt Golden, Efficiency.org</span></div>
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<span style="background-color: white; color: black; font-family: Arial; font-size: 11px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">"It is too bad that there is not much quality assurance in this process, and most customers heavily discount our savings predictions. So it would be pretty helpful if there was quality assurance of some type for savings predictions so customers could tell the difference between lies and honest and reasonably accurate predictions. We have QA for contractors work why not for their savings?" </span></div>
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<span style="background-color: white; color: black; font-family: Arial; font-size: 11px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Greg Thomas, PSD</span></div>
<b style="font-weight: normal;"><br /><span style="background-color: white; color: black; font-family: Arial; font-size: 11px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></b>
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<span style="background-color: white; color: black; font-family: Arial; font-size: 11px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">“I have all kinds of work I’d like to have done to my house. It’s just every contractor experience I’ve had has been so terrible, so exhausting, so disappointing, I keep putting it off. It always costs more then they say, and they never live up to their promises” </span><br />
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<b style="font-weight: normal;"><br /><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></b><br />
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<span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">This isn’t rocket science. This work can be done by rookies.</span><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> After taking the BPI Classes I was recruited into this industry by Hal Smith. In my year and a half at Halco my average sale was over $16,000, roughly twice the department average and well over double the NY HPwES average. I was not a seasoned Home Performance Professional, I was a rookie. These sales were not</span><span style="background-color: white; color: #500050; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> “</span><a href="http://bit.ly/1bznsqU" style="text-decoration: none;" target="_blank"><span style="background-color: white; color: #1155cc; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">free riders</span></a><span style="background-color: white; color: #500050; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">,”</span><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> they were comprehensive jobs. They were much more comprehensive than this program allows today. </span></div>
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<b style="font-weight: normal;"><br /><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></b>
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<span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Better, more comprehensive work is more likely to have immediately noticeable results. Immediately noticeable changes to homes leads to happier clients. I’ve met very few contractors who wouldn’t really love to do better work for the personal satisfaction of it. I’ve met </span><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: italic; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">none </span><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">who wouldn’t like to do better work</span><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: italic; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">if they could be recognized and rewarded for it. </span></div>
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<span style="background-color: white; color: black; font-family: Arial; font-size: 13px; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"><b>BROKEN PERSPECTIVE</b></span><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; vertical-align: baseline; white-space: pre-wrap;"> - A Home Performance program oriented on “cost effectiveness” is simplistic and broken. It constrains consumers and contractors from doing the work they want to do. Who believes “Comprehensive Home Performance” and “Financial Cost Effectiveness” are compatible? </span><br />
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<span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">LET’S FIX WHAT’S BROKEN</span><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; vertical-align: baseline; white-space: pre-wrap;"> - Incentives that encourage exaggeration over accuracy must be changed. </span><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; vertical-align: baseline; white-space: pre-wrap;"><a href="http://bit.ly/1bKijwb" target="_blank">SIR</a> is the mortal enemy of Comprehensive.</span><span style="background-color: white; color: #500050; font-family: Arial; font-size: 13px; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: white; color: #222222; font-family: Arial; font-size: 13px; vertical-align: baseline; white-space: pre-wrap;">If the Public Service Commission is concerned about cost effectively buying Energy Efficiency, why not incentivize “energy savings” instead of “investment return”. Simply pay for the </span><a href="http://bit.ly/13EhqUl" style="line-height: 1.15; text-decoration: none;" target="_blank"><span style="background-color: white; color: #1155cc; font-family: Arial; font-size: 13px; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Negawatts </span></a><span style="background-color: white; color: #222222; font-family: Arial; font-size: 13px; vertical-align: baseline; white-space: pre-wrap;">at whatever price is currently deemed cost effective. </span></div>
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<b><span style="background-color: white; color: #222222; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">ENOUGH WITH THE CONFLICT OF INTEREST!</span><span style="background-color: white; color: #222222; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span></b><span style="background-color: white; color: #222222; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Clients want the cheapest work. Contractors chasing low cost want to cut every possible corner in hopes of maintaining margins this economy has made razor thin. Various program interests earn more as administrative overhead increases, so incentive for paperwork burden is directly opposed to contractor and consumer interests. </span></div>
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<span style="background-color: white; color: #222222; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><b>Sure, the Public Service Commission wants Energy Efficiency to be “Cost Effective”, but cost effective for WHO? </b></span></div>
<b style="font-weight: normal;"><br /><span style="background-color: white; color: #222222; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></b>
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<span style="background-color: white; color: #222222; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><b>It’s certainly not cost effective for consumers to waste time finding out they don’t qualify for incentive programs they’ve funded. </b></span><span style="background-color: white; color: #222222; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> It’s certainly not cost effective for sales people to run around telling homeowners; “can’t sell you this, or this, or this”. If the PSC is concerned about cost effectiveness of incentive, why don’t they simply buy </span><a href="http://bit.ly/13EhqUl" style="text-decoration: none;" target="_blank"><span style="background-color: white; color: #1155cc; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Negawatts </span></a><span style="background-color: white; color: #222222; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">at whatever price they feel is cost effective? </span></div>
<b style="font-weight: normal;"><br /><span style="background-color: white; color: #222222; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></b>
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<span style="background-color: white; color: #222222; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Sure, public monies allocated for “energy efficiency” need to be spent effectively. Instead of having rigid incentives that force rigid cost effectiveness pass/fail, let’s have a program that pays a floating incentive. </span></div>
<b style="font-weight: normal;"><br /><span style="background-color: white; color: #222222; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></b>
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<span style="background-color: white; color: #222222; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">THINK ABOUT THIS INCENTIVE</span><span style="background-color: white; color: #222222; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> - What if the program paid, say, 40¢ for every annual KWH saved, then incentive could float with ENERGY SAVINGS instead of job cost, and every job qualifies for something. No approved measures, deemed cost effectiveness, none of that. Program pays for savings, contractors are free to be innovative, to fix what homeowners want fixed. Honey-do list and all... </span></div>
<b style="font-weight: normal;"><br /><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></b>
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<div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-left: 4pt; margin-top: 0pt;">
<span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">If you like that, here are some more ideas to ponder and an outline of one possible way forward:</span></div>
<b style="font-weight: normal;"><br /><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></b>
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<span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"><b>How about a program</b></span><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"> where the Contractor is recognized and rewarded for </span><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">excellent results</span><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">?</span><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Where the consumer see’s their interest and the contractors are aligned, so the process is collaborative rather than combative? A program where contractor ability to deliver accuracy is rewarded with a </span><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">streamlined approval process</span><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, those who struggle get support, and those who cut corners face scrutiny of both program and peer? </span></div>
<b style="font-weight: normal;"><br /><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></b>
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<b><span style="background-color: white; color: #222222; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">DO AWAY WITH CLIFFS!</span><span style="background-color: white; color: #222222; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> How About a Program Where Every Job Qualifies? </span></b><span style="background-color: white; color: #222222; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> How much easier is it for everyone if the salesperson can sell whatever the customer wants? How wonderful would life be if EVERY job could pass without turning energy models into pretzels? Corruption and inaccuracy live under cliffs. Wherever cliffs occur, we need to do away with them. </span><span style="background-color: white; color: blue; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></div>
<b style="font-weight: normal;"><br /><span style="background-color: white; color: blue; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></b>
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<span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">LET’S SIMPLIFY THIS THING!</span><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">After my December newsletter I was contacted by a number of people. I was invited to present my thoughts on how to “Align Incentive” at the Dry Climate Building Performance Contractors Summit” in California. Some thought I’d have to hire a bodyguard, but positive response from contractors was surprising and encouraging. </span></div>
<b style="font-weight: normal;"><br /><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></b>
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<span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Here’s one recent example:</span></div>
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<span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: white; color: blue; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: white; color: #500050; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span></div>
<div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-left: 13pt; margin-top: 0pt;">
<span style="background-color: white; color: #222222; font-family: 'Trebuchet MS'; font-size: 11px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">I also wanted to let you know that we are stepping up our post-completion tracking efforts, largely at your urging. Do you have a standard process for doing this? Right now we are collecting two years of pre-improvement data from all customers (when available) as part of the audit and asking customers if we can contact them 1-2 years after completion to get the post-improvement data. So far everyone we've asked has been agreeable.</span></div>
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<span style="background-color: white; color: #500050; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span></div>
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<span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Business owners are a competitive lot. The idea of seeing results, measuring quality, and competing based upon ability to deliver on promises is appealing to the good ones. </span></div>
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<span style="background-color: white; color: #500050; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span></div>
<div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-left: 4pt; margin-top: 0pt;">
<span style="background-color: white; color: #222222; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">My December Contractor Update also prompted Efficiency First to ask me to help develop a White Paper around the idea of a True Performance Based System. The basic premise is Client, Contractor, and Program interests ALIGNED instead of conflicting. </span><span style="background-color: white; color: #222222; font-family: Arial; font-size: 19px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: white; color: #500050; font-family: Arial; font-size: 19px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></div>
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<span style="background-color: white; color: black; font-family: Arial; font-size: 19px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">BELOW IS THE ROUGH OUTLINE. PLEASE FEEL FREE TO LET ME KNOW WHAT YOU THINK EITHER PRIVATELY OR ON THE BLOG:</span></div>
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<b style="font-weight: normal;"><br /><span style="background-color: white; color: #500050; font-family: Arial; font-size: 19px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></b>
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<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 24px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Performance Based Incentives Outline</span></div>
<b style="font-weight: normal;"><br /><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 24px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 24px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></b><br />
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<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Introduction</span></div>
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<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">What are performance based incentives?</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">A method of scaling rebates to the amount of energy savings achieved from performing an energy efficiency project.</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Example Incentive: $.40 per annual kWh saved. This is roughly the extrapolated value currently, without discounting for current program realization failure rate.</span><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></div>
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<b style="font-weight: normal;"><br /><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></b>
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<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Core Components</span></div>
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<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">How is this system different from current practices?</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Currently, we operate in a “Threshold” or “Cliff” system where EE projects (or individual “approved” measures) must meet a minimum Savings to Investment Return (SIR). Rebates are based on a fixed percentage of the total project cost (10%, or 50% for lower income). </span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Jobs that save energy, but don’t meet “cost justification” thresholds are not eligible for any incentive. </span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Performance Based Incentives would remove “cost justification” thresholds while still allowing the incentive paid to meet energy savings value requirements of programs. Incentive pays for the value of energy saved rather than backing into incentive cost effectiveness on project by project basis. Thus, the incentive is always cost effective and requires much less momentum killing scrutiny and modification. </span><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Cost of “At The Kitchen Table” opportunities is very high and should not be squandered due to programmatic designs attempting to “cherry pick” opportunity. Ultimately it is the homeowner and the consultant that are best suited to collaboratively determine what solutions meet the needs of homeowner and home. Every opportunity with an interested homeowner should be capitalized upon. Instead of telling people “Not Cost Effective” or “Not an Approved Measure” this approach says “The program thinks this is a nice opportunity to save energy and is willing to contribute $X toward the project.”</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: square; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Idea of “Net Cost Design” leveraging improvement budget AND energy savings into larger, more effective projects. </span></div>
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<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Not cherry picking cost-effective measures and missing the opportunity to provide complete solutions.</span></div>
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<b style="font-weight: normal;"><br /><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></b>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Contractor Predicted energy reduction will be compared to actual post-retrofit usage for each project that participates in the program. A “Realization Rate” will be calculated for each project at regular intervals and aggregated to create a “Contractor Realization Rate.” Contractor Realization Rates will be published and sorted highest to lowest in a Contractor or “Gerardi Registry” that is accessible by all members of the public. The Contractor Registry will also allow other comparative, competitive, and quality management metrics using public project data (auditor name, project cost, estimated savings, blower door #, project zip code, etc.). By allowing graphic representation of this data contractors can compete in ways meaningful to the consumer. (reference to HPXML minimum dataset.)</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: square; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">One of the purposes of the “Contractor Registry” is to inform consumers about how accurate contractors are at predicting their energy use reduction.</span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">This will provide homeowners with a way to select the contractor that best suits their needs based on all available information. (Need deep air sealing talent? Sort contractors by leakage reduction results)</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: square; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Another purpose of the Registry is a Quality Control Feedback Tool for contractors. It allows them to see how accurate their predictions are, and improve their modeling, construction, bonus best crews, train worst, etc. </span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Creates positive opportunities to correct issues when projections fall short, and further strengthen relationships with clients through proactive behavior.</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: square; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Creates a “Race to the Top” for contractors as they compete to have the best realization rate in the program.</span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: square; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Eventually, the program may elect to use the realization rates as determining factor for </span><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">automatic job approval</span><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. Possibly top third of contractors would have the most streamlined approval process, providing yet another reason to excel. The tool would be very effective for identifying contractors who need additional training and support.</span></div>
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<b style="font-weight: normal;"><br /><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></b>
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<div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-left: 4pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">How it Would/Could Work (And Why It’s Better)</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Project Design (Contractor)</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Still perform BPI Energy Audit and be required to model the project</span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Contractors could design projects with </span><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">all</span><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> of the efficiency measures needed and include other improvements.</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: square; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Adding in measures that have NO energy savings don’t cost the program anything, but allow people to improve their homes</span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Lets clients include Honey Do List items on their work scopes</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Increases the likelihood of sales</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Reduces the cost/lead of sales and marketing</span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: square; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Comprehensive projects are more likely to result in customer, contractor, and Energy Efficiency success.</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: square; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Dramatically reduce sales and marketing cost by increasing close rate. </span><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: square; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Remove restraints to design of innovative solutions.</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The Contractor Registry encourages/rewards contractors for being conservative with their modeling.</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: square; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Although contractors have the ability to overpredict their energy savings (yielding a marginally higher customer incentive), their realization rate will decrease making them appear less competent to future customers, and risking greater scrutiny and difficulty getting jobs approved.</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: square; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Contractors who do more diligent work can justify the higher costs through their standing on the registry in metrics of realization, air leakage reduction, and/or modeling accuracy.</span><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Harnesses the power of feedback loops, transparency, and naturally competitive spirit.</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Make Contractors accountable for Energy Savings. Currently they are simply doing what is required by the program to get jobs approved. This removes accountability for results from the contractor and shifts it to the program.</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Shifting accountability from the Program to the contractors arguably removes a huge and growing liability exposure programs have for realization failure. Studies show programs SIGNIFICANTLY under delivering for a very long time. The longer this goes on the more appealing a class action lawsuit becomes. </span><a href="http://1.usa.gov/1016SzK" style="text-decoration: none;"><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Lawsuits for unmet energy savings projections are becoming increasingly common</span></a><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> and FTC is siding with consumers even when claims made are vague. </span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">TRUTH and QUALITY are both Great Marketing Opportunities, and encourages salespeople to deliver both.</span><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Project Approval (NYSERDA)</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Review and approval involves only reviewing projects for health and safety, missed opportunities, and contract language (similar to pre SIR days). </span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Burden of project review for TRC, SIR, etc. and kick back for model or contract “redo” would no longer be necessary,</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Funding burn rate very easily adjusted. Increasing or decreasing incentive per KW Saved the program can easily manage funding AND program employment.</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: square; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">This is a </span><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">simple </span><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">adjustment mechanism that can be communicated through all layers of the system. Eliminates complex rules.</span><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Ability to adjust employment levels state-wide (dial up incentive during lean times, similar to how the FED adjusts money supply) helps avoid layoff, and loss of talent.</span><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Automatic project approval will be made possible with this system</span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: square; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">A minimum data set will be necessary to allow this.</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Project Construction (Contractor)</span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Because tracked realization is ranked and published, contractors are invested in the energy savings of the project and will perform better work</span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: square; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">BD # at or below target</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: square; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Contractors are motivated to save even more energy than they model - the idea is that contractors might go above and beyond for their clients (eg. do more air sealing, install CFLs without bother to model, etc)</span><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Crews have the ability to be individually tracked on the Registry and will be included as part of the competition for excellence.</span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: square; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The more that the contractors elect to enter more data for the voluntary fields, the more actionable information they will be able to get back.</span><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: square; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Test-In and Test-Out Blower Door Operators will have the ability to be tracked (optional)</span></div>
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<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Project Quality Assurance (NYSERDA + Contractor)</span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Realization rates are a main driver of quality assurance, and help spotlight projects for review. This offers both QC and learning opportunity.</span><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></div>
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</ul>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Work would still be inspected for quality, and the contractors needing assistance would be apparent, they’d be the ones with low on the realization registry or with significant results scatter. </span></div>
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<b style="font-weight: normal;"><br /><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></b>
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<div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-left: 4pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Software Requirements</span></div>
<ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Energy modeling software could be flexible. Contractors can use whatever software they want so long as minimum HPXML Dataset is provided. Modeled savings by top of the registry contractors would not be held to scrutiny. </span></div>
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<b style="font-weight: normal;"><br /><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></b>
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<div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-left: 4pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Transitional Accommodations</span></div>
<ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In order to effectively move to the Performance Based System, and ensure enthusiastic contractor buy-in, a number of transitional incentives should be considered.</span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Contractor incentives for high realization projects</span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: square; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">ex. $500 for projects above .85 or the top 2000 projects a year. $200 for the next level, etc...</span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Awards for top performing contractors in a region/state-wide, top 1st year contractors, top 2nd year contractors.</span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: square; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">This is designed to encourage contractors to start using the Contractor Registry, and performance of good overall work</span><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></div>
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</ul>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;"><ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: circle; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Phasing in Automatic Project Approvals</span></div>
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<ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: square; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Communication of this to contractors</span></div>
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<b style="font-weight: normal;"><br /><span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></b>
<br />
<div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-left: 4pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Conclusion</span></div>
<ul style="margin-bottom: 0pt; margin-top: 0pt;">
<li dir="ltr" style="background-color: white; color: #38761d; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; margin-left: 20px; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-top: 0pt;">
<span style="background-color: white; color: #38761d; font-family: Arial; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">This is a win-win-win for the customer, contractor, and the program. Contractor and homeowner interests align as solutions design, accuracy, and quality supplant "cost effectiveness". Program interests are served as administration and cost effectiveness goals, and adjusting program volume are vastly simplified. </span></div>
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<div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-left: 4pt; margin-top: 0pt;">
<span style="background-color: white; color: #500050; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span></div>
<div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-left: 4pt; margin-top: 0pt;">
<span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><br /></span></div>
<div dir="ltr" style="line-height: 1.15; margin-bottom: 0pt; margin-left: 4pt; margin-top: 0pt;">
<span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Again, this is only the rough draft. More work is needed, but only if there is interest. Comments can be made below. </span></div>
<b style="font-weight: normal;"><br /><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></b>
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<b><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">I’ve made the program outline available on </span><a href="http://bit.ly/HPwESPerformanceBasedDesign" style="text-decoration: none;"><span style="background-color: white; color: #1155cc; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Google Doc’s</span></a><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> for public editing (attempting to follow the Wikipedia theme) anybody with constructive ideas is welcome to add or edit.</span></b></div>
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<span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span></div>
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<a href="http://bit.ly/HPwESPerformanceBasedDesign" style="text-decoration: none;"><span style="background-color: white; color: #1155cc; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://bit.ly/HPwESPerformanceBasedDesign</span></a><span style="background-color: white; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></div>
<b style="font-weight: normal;"><br /><span style="background-color: white; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: white; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></b><br />
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<span style="background-color: white; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">IN CONCLUSION:</span><span style="background-color: white; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Let’s stop this train wreck. Let’s advocate for a program where the players are partners, not adversaries. Where the best work gets rewarded. No more</span><span style="background-color: white; font-family: Arial; font-size: 13px; font-style: italic; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> “this is cost effective.” “This isn’t cost effective.” “This isn’t cost effective but our magic wand deems it cost effective.” “This is cost effective but it’s not an approved measure.</span><span style="background-color: white; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">” Let’s get a program where we can sell what the client WANTS, what the home NEEDS. </span></div>
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<span style="background-color: white; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Windows? Sure! Doors? Why not! The whole “Honey Do” list? NO PROBLEM, just sign here! </span><span style="background-color: white; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Government gets energy savings at the price it wants to pay, consumer gets home improvements for the net cost they were told, and we can focus on DESIGN rather than software games. </span></div>
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<span style="background-color: white; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">WANT BIGGER JOBS?</span><span style="background-color: white; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> We need to leverage energy savings into the project budget. In order to leverage projected energy savings into people’s improvement budgets, </span><span style="background-color: white; font-family: Arial; font-size: 13px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">people really need those savings to be believable.</span><span style="background-color: white; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> A system that rewards contractors for accuracy also creates huge customer confidence that savings will significantly match projections. It provides the comfort needed for customers to allow those savings to be leveraged into project budgets. </span></div>
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<span style="background-color: white; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Sure this simplifies administration</span><span style="background-color: white; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> not just for contractors, but for administrators. Sure some at NYSERDA and CSG may see this as threatening to bloated fiefdoms. But programs that have $3 of total cost for every $1 spent on improvements are not sustainable, much less scalable. And if this governor is serious about accountability and transparency, lack of accountability and bloat is not long for this world anyway. At some point cost per negawatt will be applied to their work, with states competing against states. </span></div>
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<span style="background-color: white; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The flip side of this for NY, if they can act, is they can look like hero’s for paving the way for our nation. </span></div>
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<span style="background-color: white; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><b>TRUST, TRUTH, TRANSPARENCY. </b></span><span style="background-color: white; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Who’s in? </span></div>
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Ted Kiddhttp://www.blogger.com/profile/14283149266019846669noreply@blogger.com6tag:blogger.com,1999:blog-699531228844218731.post-54595673346464450112013-02-10T16:07:00.001-05:002013-05-08T13:29:22.795-04:00February Contractor Update, some new data - Happy New Year!<span style="font-family: comic sans ms,sans-serif;">Dear Contractors,</span> <br />
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<span style="font-family: 'comic sans ms',sans-serif;"><strong>You may find these numbers from 12,559 HPwES jobs shocking. </strong> They may make you uncomfortable. Certainly this is a very different look than the day to day look at individual jobs. When you look at larger numbers patterns emerge. <strong>But don't you want to KNOW how you are doing?!?</strong></span><br />
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<span style="font-family: 'comic sans ms',sans-serif;"><strong><u>TRACKING MATTERS</u></strong> - Bill Gates says just the act of measuring causes polio cases to drop in African Nations. The premise is operators use tools more effectively when they know their success, and their failure, will be open to public scrutiny. Carrot and stick. I believe the same is true for energy which is why I've been digging for these numbers. Taking a common phrase one step further; <b>Measuring Causes Management.</b></span><br />
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<span style="font-family: 'comic sans ms',sans-serif;"><strong>AMBIVALENT. INCOMPETENT. FRAUDULENT. Is that how you want your company, or this industry to look?</strong> Sure, there's no upside to diligence that nobody measures but that is at an end. As you can see, measurement is happening. There will be great reward for accuracy in the form of public confidence and capital access. This is the path to monetizing Energy Efficiency as a resource. I've got a carrot and a stick here, let's not have to use the stick. </span></div>
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<span style="font-family: 'comic sans ms',sans-serif;">REVIEW:</span></div>
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<span style="font-family: 'comic sans ms',sans-serif;">Some of you may be aware that last spring I requested and received a large amount of data under the Freedom of Information Act from NYSERDA regarding your HPwES projects. </span><span style="font-family: 'comic sans ms',sans-serif;"><b>I now have blower door numbers for all of your projects for the past two years through November. </b> Test in, projected, and test out. Below is a representation of how well you have done against yourselves, and against your peers. </span></div>
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<span style="font-family: 'comic sans ms',sans-serif;">You also may recall that I feel this program needs to move toward a new competitive metric - one of published ability to deliver savings projected. <b> This will do for our industry what MPG ratings and JD Power did to the auto industry, it will create incentive to excel around a metric that benefits the consumer and adds credibility to our promises. </b> It will allow us to market based upon truth and accountability, not smoke, mirrors and hope. Sell to reason, not fickle emotion. </span></div>
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<span style="font-family: comic sans ms, sans-serif;">A program that can deliver <strong>TRUTH </strong>is unique in today's marketplace. This could elevate our profession immeasurably! </span><span style="font-family: 'comic sans ms',sans-serif;">We may have to go through slight discomfort to get to a better place. </span></div>
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<span style="font-family: 'comic sans ms',sans-serif;"><strong>Tracking before and after energy would be ideal</strong>, but right now there is an access problem to energy consumption data "after" improvements. Until we can solve this, do we have anything that might indicate what results to expect by contractor? Proxy for energy projection accuracy? </span><b style="font-family: 'comic sans ms',sans-serif;">Well, besides "<i><u>reported </u></i>energy use before" </b><span style="font-family: 'comic sans ms',sans-serif;">and </span><b style="font-family: 'comic sans ms',sans-serif;">"<i><u>modeled </u></i>energy use before," we have blower door leakage, projected leakage reduction, and actual leakage reduction.</b><span style="font-family: 'comic sans ms',sans-serif;"> </span></div>
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<span style="font-family: 'comic sans ms',sans-serif;">CONCEPT INTRODUCTION: </span><br />
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<span style="font-family: comic sans ms,sans-serif;"><b>In my last e-mail</b> I discussed the importance of accuracy of modeling energy input, and provided an image of roughly where you stand against your peers with respect to energy truing accuracy. The images below/attached show were you stand against your peers with respect to blower door projection accuracy. </span><span style="font-family: 'comic sans ms',sans-serif;"> <b>Below is PROJECTED reduction, ACTUAL reduction, and Percentage of promise delivered.</b> In other words, how good are you at projecting? How good are you at tightening? And do you sand bag, nail it, or over promise? (1300 sf house with 10k test in, 9k promise, 3k test out, really?)</span></div>
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<span style="font-family: comic sans ms,sans-serif;"><b>There are a lot of ways these early numbers might misrepresent actual work performed.</b> For example; exaggeration of test in leakage (probably to obtain SIR) could make some look like they are doing more than they are. <b> (No regression analysis was performed to determine if/which Test In numbers were exaggerated, but I know for a fact people are doing this and suggest that practice stop immediately.) </b> </span></div>
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<span style="font-family: comic sans ms,sans-serif;"><b>The intent of this is to inform not embarrass</b>, so inaccuracy of these numbers helps as they can only help inform, not be used to judge. But good data matters so going forward there is no amnesty for ANYONE around the data. </span></div>
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<a href="http://eesny.us6.list-manage2.com/track/click?u=941b8ba61c438647ff4702e51&id=7b83b61a43&e=169572bed2" target="_blank"><span style="font-family: comic sans ms,sans-serif;"> <img alt="Inline image 2" src="http://bit.ly/nyHPwESbdalpha" /> </span></a></div>
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<span style="font-size: 11px;">(to see these larger go here: <a href="http://eesny.us6.list-manage.com/track/click?u=941b8ba61c438647ff4702e51&id=d0e8448d6c&e=169572bed2" target="_blank">http://bit.ly/bdprojectedalpha</a>, <a href="http://eesny.us6.list-manage2.com/track/click?u=941b8ba61c438647ff4702e51&id=5f9259a471&e=169572bed2" target="_blank">http://bit.ly/bdactualalpha</a>, and <a href="http://eesny.us6.list-manage.com/track/click?u=941b8ba61c438647ff4702e51&id=119e7c1a1d&e=169572bed2" target="_blank">http://bit.ly/bdvariancealpha</a>)</span></div>
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<span style="font-family: comic sans ms,sans-serif;">REVIEW: </span><u><span style="font-family: 'comic sans ms',sans-serif;">THESE NUMBERS ARE ALL OVER THE PLACE!!</span></u><br />
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<strong><span style="font-family: 'comic sans ms',sans-serif;">We all know there is a direct and significant correlation between energy consumption and air leakage. </span></strong><span style="font-family: 'comic sans ms',sans-serif;">So it is reasonable to assume leakage reduction has direct and significant correlation to energy SAVINGS. Accuracy in your blower door projections will show up in your ability to accurately project savings. </span></div>
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<span style="font-family: 'comic sans ms',sans-serif;">I know these numbers - like the ones I sent last time - may be new to many of you. What they mean may take a little time to sink in. But please get your heads around this if you wish to avoid looking incompetent when compared to your peers once this registry goes live! <strong>Again, forewarned is forearmed. </strong> </span><span style="font-family: 'comic sans ms',sans-serif;">After today, claims of ignorance of harm will not be a compelling defense. (</span><span style="font-family: 'comic sans ms',sans-serif;">I keep being asked for names. T</span><span style="font-family: 'comic sans ms',sans-serif;">he media loves nothing more than to go after contractors taking advantage of "defenseless consumers".) </span></div>
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<span style="font-family: 'comic sans ms',sans-serif;"><b><u>Question </u>- What happens when customers you've projected $800 annual savings call you saying they only saw $150? What happens if your model for them is full of inaccuracies? </b></span><b style="font-family: 'comic sans ms',sans-serif;">Over 10 years that's $6500 short. </b><span style="font-family: 'comic sans ms',sans-serif;">Let's head that problem off before we get there? </span></div>
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<span style="font-family: comic sans ms, sans-serif;"><b>OBJECTIVE:</b></span><br />
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<span style="font-family: 'comic sans ms',sans-serif;"><b>We need good inputs to prove <i><u>Residential Investment Grade Energy Modeling</u></i> is achievable! </b>Then we can move to<b> PERFORMANCE BASED INCENTIVES,</b> and ultimately away from the need for any incentives to drive Comprehensive Home Performance. How nice would it be to show inaccuracy and scatter is caused by poorly designed process and corrupting program incentives rather than by contractors or software? </span><br />
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<b style="font-family: 'comic sans ms', sans-serif;">It is a forgone conclusion that you will be measured against your peers upon your ability to accurately project savings: </b></div>
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<span style="font-size: 11px;">(to see these larger go here: </span><a href="http://eesny.us6.list-manage2.com/track/click?u=941b8ba61c438647ff4702e51&id=a3eb18ec38&e=169572bed2" style="font-size: 11px;" target="_blank">http://bit.ly/BDprojpercent</a><span style="font-size: 11px;">, </span><a href="http://eesny.us6.list-manage.com/track/click?u=941b8ba61c438647ff4702e51&id=89db85aba4&e=169572bed2" style="font-size: 11px;" target="_blank">http://bit.ly/bdactualpercent</a><span style="font-size: 11px;">, and </span><a href="http://eesny.us6.list-manage2.com/track/click?u=941b8ba61c438647ff4702e51&id=f6cf2a1068&e=169572bed2" style="font-size: 11px;" target="_blank">http://bit.ly/bdvariancepercent</a><span style="font-size: 11px;">)</span><br />
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<b style="font-family: 'comic sans ms',sans-serif;"><u>Do YOU Deliver On Promise?</u> If you want to be at the top of the "delivers on promise" list for energy savings (closest to 100%), make sure your inputs are accurate! A rising tide raises all boats, except the ones with huge holes. If you have big holes, plug them now because the tide is coming in. </b><b style="font-family: 'comic sans ms',sans-serif;">It appears some people are definitely on the right track, and bravo to you! </b></div>
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<span style="font-family: comic sans ms,sans-serif;">MOVING FORWARD: POSITION YOURSELF FOR TRANSPARENCY AND ACCOUNTABILITY</span><br />
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<span style="font-family: comic sans ms,sans-serif;"><b>Apply pressure on CSG and NYSERDA to help you improve air sealing, and prediction. </b>Make them accountable for helping you succeed. Position yourself to take advantage of transparency. </span></div>
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<span style="font-family: comic sans ms,sans-serif;"><b>Remember, progress will be a strong defense to poor performance,</b> so let's start tightening things up BEFORE we have tools that expose this work to public scrutiny. </span><span style="font-family: comic sans ms,sans-serif;">I believe </span><span style="font-family: 'comic sans ms',sans-serif;">NYSERDA intends to improve reporting. Demand this so you will not be caught unaware of your numbers in the future. </span></div>
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<span style="font-family: 'comic sans ms',sans-serif;"><b>Do you really want ME to have your numbers before YOU have them? </b></span></div>
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<span style="font-family: comic sans ms,sans-serif;">COMPETE FOR RESULTS: By tracking and competing for results we make Quality measurable. Great contractors are starting to do this: </span><a href="http://eesny.us6.list-manage.com/track/click?u=941b8ba61c438647ff4702e51&id=6fe2ec85f8&e=169572bed2" target="_blank">http://bit.ly/ring4club</a><br />
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<span style="font-family: comic sans ms,sans-serif;">I propose a competition for accuracy, which in turn will drive AND REWARD excellence. It will allow HPwES contractors to TRULY differentiate from Joe Six Pack. <br /> <br /> I hope this expresses the importance of blower door input accuracy, and how allowing inaccuracy to go unchecked will be a big problem for YOU when we achieve tracking of savings realization. </span><br />
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<span style="font-family: 'comic sans ms', sans-serif;">This goal of tracking realization, BTW, may not be far away. NYSERDA now has direct access to energy consumption whereas before they apparently had to hire 3rd parties to access bills and perform analysis. </span><br />
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<span style="font-family: 'comic sans ms',sans-serif;">Do I need to spell out what that means? </span><span style="font-family: 'comic sans ms',sans-serif;">The registry is right around the corner! </span><span style="font-family: 'comic sans ms',sans-serif;">My next e-mail may unearth your ability to deliver savings on promise.... </span></div>
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<span style="font-family: comic sans ms,sans-serif;">Sincerely,</span></div>
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<b><span style="color: #006600; font-family: comic sans ms, sans-serif;">Ted Kidd</span></b></div>
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<span style="color: #006600; font-family: arial,sans-serif; font-size: 13px;"><b><span style="font-family: comic sans ms, sans-serif;"><a href="http://www.blogger.com/blogger.g?blogID=699531228844218731" style="color: #1155cc;" value="+15852058674">(585) 205-8674</a> Direct</span></b> </span><br />
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<b><span style="font-family: comic sans ms, sans-serif;"><a href="http://eesny.us6.list-manage.com/track/click?u=941b8ba61c438647ff4702e51&id=aa37a94b18&e=169572bed2" style="color: #1155cc;" target="_blank">EES Blog</a></span></b></div>
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<span style="background-color: #66ff99; color: #222222; font-family: 'comic sans ms',sans-serif; font-size: 13px; font-style: italic;">Published Realization Rates - Let's take the "</span><b style="background-color: #66ff99; color: #222222; font-family: 'comic sans ms',sans-serif; font-size: 13px; font-style: italic;">blind buy</b><span style="background-color: #66ff99; color: #222222; font-family: 'comic sans ms',sans-serif; font-size: 13px; font-style: italic;">" out of home performance.</span></div>
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PS. If anyone would like the spreadsheet, and the various worksheets I built to help me think about these numbers, it is available <a href="http://eesny.us6.list-manage1.com/track/click?u=941b8ba61c438647ff4702e51&id=eb7e80c942&e=169572bed2" target="_blank">HERE</a>. Type (Cntrl+S) or click the down arrow to download. For those with older versions of Excel, <a href="http://eesny.us6.list-manage2.com/track/click?u=941b8ba61c438647ff4702e51&id=e3e2d2fded&e=169572bed2" target="_blank">here's</a> the 1997-2003 version. <span style="color: #222222; font-family: arial,sans-serif; font-size: 13px;"> </span><a href="http://eesny.us6.list-manage.com/track/click?u=941b8ba61c438647ff4702e51&id=a3fde99177&e=169572bed2" style="color: #1155cc; font-family: arial,sans-serif; font-size: 13px;" target="_blank">http://bit.ly/blowerdoorfoil</a><span style="color: #222222; font-family: arial,sans-serif; font-size: 13px;"> </span><span style="color: #222222; font-family: arial,sans-serif; font-size: 13px;">& </span><a href="http://eesny.us6.list-manage.com/track/click?u=941b8ba61c438647ff4702e51&id=1e10ea3a35&e=169572bed2" style="color: #1155cc; font-family: arial,sans-serif; font-size: 13px;" target="_blank">http://bit.ly/blowerdoorfoilOLD</a></div>
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This email will be posted to my blog as was the last one. You can see those conversations here: http://bit.ly/HEREARESOMENUMBERS<br />
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The closer to the grey line, the more accurate the prediction average. This does not look at variance.<br />
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AND NOW - HOW DO YOU COMPARE TO YOUR COMPETITORS?...<br />
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Ted Kiddhttp://www.blogger.com/profile/14283149266019846669noreply@blogger.com1tag:blogger.com,1999:blog-699531228844218731.post-69860971015777771512012-12-15T07:46:00.000-05:002013-01-28T18:03:15.298-05:00"December Program Update' HERE'S SOME DATA! Letter to ContractorsBelow is the letter I sent to contractors about results tracking, and eventually having a way of ranking them based upon their ability to make accurate energy savings projections:<br />
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<span style="font-family: arial; font-size: x-small;">---------- Forwarded message ----------</span><br />
<span style="font-family: arial; font-size: x-small;">From: </span><b class="gmail_sendername" style="font-family: arial; font-size: small;">Ted Kidd</b><span style="font-family: arial; font-size: x-small;"> </span><span dir="ltr" style="font-family: arial; font-size: x-small;"><tedkidd@eesny.com></span><br />
<span style="font-family: arial; font-size: x-small;">Date: Wed, Dec 12, 2012 at 8:38 PM</span><br />
<span style="font-family: arial; font-size: x-small;">Subject: December Contractor Update - Merry Christmas!</span><br />
<span style="font-family: arial; font-size: x-small;">To: </span><br />
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<span style="font-family: 'comic sans ms', sans-serif;">Dear Contractors,</span><br />
<span style="font-family: comic sans ms, sans-serif;"><br /></span><span style="font-family: 'comic sans ms', sans-serif;">Below are; <a href="http://bit.ly/NickTaylorsCharts" target="_blank">Some metrics</a>, Competing for results, and a much better way of <a href="http://bit.ly/energysaavycrm" target="_blank">managing data</a>:</span></div>
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<span style="font-family: 'comic sans ms', sans-serif;">Some of you may be aware that last spring I requested and received a large amount of data under the Freedom of Information Act from NYSERDA regarding your HPwES projects. </span><br />
<span style="font-family: comic sans ms, sans-serif;"><br /></span><span style="font-family: 'comic sans ms', sans-serif;">You also may know that I feel this program needs to move toward a new competitive metric - one of published ability to deliver savings projected. <b> This will do for our industry what MPG ratings did to the auto industry, it will create incentive to excel around a metric that benefits the consumer and adds credibility to our promises. </b> It will allow us to market based upon truth and accountability, not smoke, mirrors and hope. Sell to reason, not fickle emotion. </span></div>
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<span style="font-family: comic sans ms, sans-serif;">A program that can deliver TRUTH is unique in today's marketplace. This could elevate our profession immeasurably! </span><br />
<span style="font-family: 'comic sans ms', sans-serif;">Tracking before and after energy would be ideal but right now there is an access problem to energy consumption data "after" improvements. Until we can solve this, do we have anything that might indicate what results to expect by contractor? </span><b style="font-family: 'comic sans ms', sans-serif;">Well, we do have access to "<i><u>reported </u></i>energy use before" </b><span style="font-family: 'comic sans ms', sans-serif;">and </span><b style="font-family: 'comic sans ms', sans-serif;">"<i><u>modeled </u></i>energy use before".</b><span style="font-family: 'comic sans ms', sans-serif;"> </span></div>
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<span style="font-family: 'comic sans ms', sans-serif;">Certainly someone who uses 1000 therms who has a model showing they use 2000 therms will save</span><span style="font-family: 'comic sans ms', sans-serif;"> 40% </span><span style="font-family: comic sans ms, sans-serif;">is not likely to see 800 therms savings. </span></div>
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<span style="font-family: comic sans ms, sans-serif;"><b>So we can rank ability to accurately model energy consumption pre-improvement with the expectation it will correlate to accuracy of savings projections? Highly likely. And seeing these numbers helps contractors understand how accurate their modeling is. </b></span></div>
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<span style="font-family: comic sans ms, sans-serif;"><br /></span><b style="font-family: 'comic sans ms', sans-serif;">Do No Harm. </b><span style="font-family: comic sans ms, sans-serif;"> To roll out a ranking or registry without contractor understanding of what is coming is likely to cause harm, so providing this interim step information in a format indicating what will eventually be public information provides opportunity to adjust behavior and policies ahead of time. Forewarned is forearmed. </span></div>
<span style="font-family: comic sans ms, sans-serif;"><br /></span><span style="font-family: 'comic sans ms', sans-serif;">Below is a representation of the data available, and an idea of what a realization ranking might look like. Those closest to the line have the models that most closely represent consumption of the homes they audit, and those further to the left tend to overstate consumption: </span><span style="font-family: Courier New, Courier, monospace;">(might need <a href="https://www.google.com/intl/en/chrome/browser/" target="_blank">Chrome</a> to view)</span></div>
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<span style="font-family: comic sans ms,sans-serif;"><img alt="Inline image 5" height="281" src="https://mail.google.com/mail/u/0/?ui=2&ik=717658308d&view=att&th=13b91e9e66ced25e&attid=0.0.2&disp=emb&realattid=ii_13b75ce56152c97e&zw&atsh=1" width="420" /></span></div>
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<span style="font-family: comic sans ms, sans-serif;"><br /></span><span style="font-family: 'comic sans ms', sans-serif;">There is a lot that can be done here, for example these numbers could be run quarterly to show who is improving and who is sliding. You can't manage what you don't measure, and this should be managed. Nick Taylor is working on making these numbers so people can dig in and understand how to improve results. You can play with the charts here: </span><span style="font-family: comic sans ms, sans-serif;"><a href="http://bit.ly/NickTaylorsCharts" target="_blank">http://bit.ly/<wbr></wbr>NickTaylorsCharts</a></span></div>
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<span style="font-family: 'comic sans ms', sans-serif;">This Christmas I will be receiving a new data set, and a lot of additional information, which I will share with anyone interested. </span></div>
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<span style="font-family: 'comic sans ms', sans-serif;">I'm also happy to discuss what happens to the work once you commit to tracking results. (HINT: When you have 2 tests coming up, one you automatically pass just for showing up and the other one is graded, which do you study hardest for?)</span></div>
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<span style="font-family: comic sans ms, sans-serif;">Next year NY HPwES will be transitioning from CSG's citrix to <a href="http://bit.ly/energysaavycrm" target="_blank">Energy Savvy</a>, which looks like a step in the right direction! Maybe NYSERDA will consider tying things to Salesforce and Hubspot. Things may look discouraging now, but they're poised to get better! I'd love to hear from those who do not plan to renew their Accreditation, that might be a mistake. </span><span style="font-family: comic sans ms, sans-serif;"><br /></span><span style="font-family: 'comic sans ms', sans-serif;">Sincerely,</span><br />
<span style="font-family: comic sans ms, sans-serif;"><br /></span><b><span style="color: #006600; font-family: comic sans ms, sans-serif;">Ted Kidd</span></b><br />
<b style="color: #006600; font-family: arial, sans-serif; font-size: 13px;"><span style="font-family: comic sans ms, sans-serif;"><a href="http://www.blogger.com/blogger.g?blogID=699531228844218731" style="color: #1155cc;" value="+15852058674">(585) 205-8674</a> Direct</span></b><span style="color: #006600; font-family: arial, sans-serif; font-size: 13px;"> </span><br />
<a href="http://eesny.com/" style="color: #1155cc; font-family: arial, sans-serif; font-size: 13px;" target="_blank"><b><span style="font-family: comic sans ms, sans-serif;">Energy Efficiency Specialists</span></b></a><br />
<b style="color: #222222; font-family: arial, sans-serif; font-size: 13px;"><span style="font-family: comic sans ms, sans-serif;"><a href="http://bit.ly/HHXOTT" style="color: #1155cc;" target="_blank">EES Blog</a></span></b><br />
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<span style="background-color: #66ff99; color: #222222; font-family: 'comic sans ms', sans-serif; font-size: 13px; font-style: italic;">Published Realization Rates - Let's take the "</span><b style="background-color: #66ff99; color: #222222; font-family: 'comic sans ms', sans-serif; font-size: 13px; font-style: italic;">blind buy</b><span style="background-color: #66ff99; color: #222222; font-family: 'comic sans ms', sans-serif; font-size: 13px; font-style: italic;">" out of home performance.</span></div>
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<span style="color: red; font-size: x-small;"><b>P.s.: Thank you to those who've sent words of encouragement and appreciation. And as always, to those who wish to be removed from this list please let me know. </b></span></div>
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<span style="color: red; font-size: x-small;"><b>Good faith attempts to remove clearly bad data were made. The analysis was performed by an independent 3rd party with absolutely no connection or bias toward any NY contractors or the program. Anyone having issue with accuracy of the data please contact NYSERDA and CSG. </b></span></div>
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Ted Kiddhttp://www.blogger.com/profile/14283149266019846669noreply@blogger.com0tag:blogger.com,1999:blog-699531228844218731.post-65137849325923507132012-06-22T12:15:00.002-04:002012-06-22T12:21:27.647-04:00Are You Pro-Active or Re-Active?<br />
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<span data-mce-style="color: #ffff00;" style="color: yellow;"><span data-mce-style="font-size: xx-small;" style="font-size: xx-small;"><span data-mce-style="color: #000000;" style="color: black;"><span data-mce-style="font-size: xx-small;"><span data-mce-style="text-decoration: underline;" style="text-decoration: underline;"><span data-mce-style="font-size: small;" style="font-size: x-small;">Energy Efficiency doesn't mean turning back the thermostat...</span></span></span></span></span></span></div>
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<span data-mce-style="color: #ffff00;" style="color: yellow;"><span data-mce-style="font-size: xx-small;" style="font-size: xx-small;"><span data-mce-style="color: #000000;" style="color: black;"><span data-mce-style="font-size: xx-small;"><span data-mce-style="text-decoration: underline;" style="text-decoration: underline;"><span data-mce-style="font-size: small;" style="font-size: x-small;"><i>...it means Keeping The Heat <b>in </b>the House!</i></span></span></span></span></span></span></div>
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<a href="http://bloximages.newyork1.vip.townnews.com/gilroydispatch.com/content/tncms/assets/v3/editorial/3/33/333a052a-7e61-59df-9211-7d201e26c37b/4efb3244dd57e.image.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="133" src="http://bloximages.newyork1.vip.townnews.com/gilroydispatch.com/content/tncms/assets/v3/editorial/3/33/333a052a-7e61-59df-9211-7d201e26c37b/4efb3244dd57e.image.jpg" width="200" /></a></div>
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We used to live in really leaky, poorly insulated homes with huge, high output equipment. The equipment had only one speed, full. <b>We had a strategy for saving energy - run the equipment as little as possible. </b></div>
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<span style="color: #333333; font-family: Georgia, 'Times New Roman', 'Bitstream Charter', Times, serif; font-size: x-small;"><span style="line-height: 19px;">This was a good strategy. Heat quickly left the house, so the less you heated the less that left. Also, over sized single output equipment is able to run more efficiently if it has an opportunity to run for a while. That opportunity occurred when it had to heat the house way up. </span></span><br />
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<a href="http://communaltable.files.wordpress.com/2010/12/stove-on-low.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="131" src="http://communaltable.files.wordpress.com/2010/12/stove-on-low.jpg" width="200" /></a></div>
<b style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', 'Bitstream Charter', Times, serif; font-size: small; line-height: 19px;">The new strategy is keep the equipment running, matching the building loss, and allowing modern modulating equipment to run at optimum efficiency ALL THE TIME. </b><br />
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<span style="color: #333333; font-family: Georgia, 'Times New Roman', 'Bitstream Charter', Times, serif; font-size: x-small;"><span style="line-height: 19px;">Technology has provided equipment that can modulate output to match the losses or load on the house like you modulate the burner on your stove. </span></span><br />
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<span style="color: #333333; font-family: Georgia, 'Times New Roman', 'Bitstream Charter', Times, serif; font-size: x-small;"><span style="line-height: 19px;">This</span></span><span style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', 'Bitstream Charter', Times, serif; font-size: x-small; line-height: 19px;"> new technology </span><span style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', 'Bitstream Charter', Times, serif; font-size: x-small; line-height: 19px;">requires a new strategy for saving energy.</span><span style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', 'Bitstream Charter', Times, serif; font-size: x-small; line-height: 19px;"> </span><span style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', 'Bitstream Charter', Times, serif; font-size: x-small; line-height: 19px;"> This new paradigm is the polar opposite of the old strategy, which means it's </span><span style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', 'Bitstream Charter', Times, serif; font-size: x-small; line-height: 19px;">counter-intuitive, contradicting long held beliefs. Instead of full <i><b>off </b></i>or full <b><i>on</i></b>, the equipment gently adjusts up or down to match the need. </span><br />
<span style="color: #333333; font-family: Georgia, 'Times New Roman', 'Bitstream Charter', Times, serif; font-size: x-small;"><span style="line-height: 19px;"><br /></span></span><br />
<span style="color: #333333; font-family: Georgia, 'Times New Roman', 'Bitstream Charter', Times, serif; font-size: x-small; font-style: italic; font-weight: bold;"><span style="line-height: 19px;">Also, w</span></span><span style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', 'Bitstream Charter', Times, serif; font-size: x-small; line-height: 19px;"><b style="font-style: italic;">e no longer heat the neighborhood. We have tighter, better insulated homes.</b> So lowering temperature doesn't save much, if anything, because it's not cutting losses the way it used to. In fact, now it may cost energy as the equipment has to go to full throttle for recovery thereby reducing condensing efficiencies. </span><br />
<span style="color: #333333; font-family: Georgia, 'Times New Roman', 'Bitstream Charter', Times, serif; font-size: x-small;"><span style="line-height: 19px;"><br /></span></span><br />
<span style="color: #333333; font-family: Georgia, 'Times New Roman', 'Bitstream Charter', Times, serif; font-size: x-small;"><span style="line-height: 19px;"><u><b>Equipment eventually wears out. </b></u> Unfortunately most people are not pro-active when it comes to equipment replacement. Good design and decisions are not accomplished at 2 am on the coldest night of the year when the furnace finally quits for good. </span></span><br />
<span style="color: #333333; font-family: Georgia, 'Times New Roman', 'Bitstream Charter', Times, serif; font-size: x-small;"><span style="line-height: 19px;"><br /></span></span><br />
<b><span style="color: #333333; font-family: Georgia, 'Times New Roman', 'Bitstream Charter', Times, serif;"><span style="line-height: 19px;">HOW CAN YOU BE PROACTIVE? </span></span><span style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', 'Bitstream Charter', Times, serif; line-height: 19px;">First Step - get your energy history. </span></b><br />
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<span style="background-color: white;">Our houses require a certain amount of heat which usually doesn't vary much from year to year (unless weatherization occurs). There are a number of ways to determine annual gas usage:</span></div>
<ol style="color: #333333; font-family: Georgia, 'Times New Roman', 'Bitstream Charter', Times, serif; font-size: 13px; line-height: 19px;">
<li>Call gas company and ask.</li>
<li>Login to your account and get usage history. (Click <a href="https://ebiz1.rge.com/cusweb/frmLogIn.aspx" target="_blank">HERE </a>for RGE)</li>
<li>Look at current meter read, then look at year ago meter read from a bill and subtract.</li>
<li>Go to the chart in a recent bill and look at each month. With a straight edge roughly determine the usage and write it down. Add 12 months usage together.</li>
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If you have problems calculating you annual usage feel free to send me your bills and I will try to help.</div>
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<span data-mce-style="color: #ff0000;" style="color: red;"><b style="color: #333333; text-align: -webkit-auto;">Next Step: Get a Comprehensive Home Assessment.</b>
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<span style="font-size: x-small;"><span data-mce-style="color: #ff0000;" style="color: red;"><span style="color: #333333; text-align: -webkit-auto;">If you'd like to understand your savings opportunity before hand, </span></span><span style="background-color: white;">All you need to know is your heating fuel type, annual amount used, and your homes square footage. </span><span style="background-color: white;"> </span></span></div>
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<span data-mce-style="color: #ff0000;" style="color: red;">If you don't know your annual consumption but you do know your annual cost, here's a very basic rule of thumb for determining your energy savings opportunity and if we should schedule a free energy visit. Based upon past experience:</span></div>
<ul style="color: #333333; font-family: Georgia, 'Times New Roman', 'Bitstream Charter', Times, serif; font-size: 13px; line-height: 19px;">
<li><strong><span data-mce-style="color: #ff0000;" style="color: red;">I REALLY WANT TO SEE YOU</span></strong> if you heat with Natural Gas and spend <span data-mce-style="color: #ff0000;" style="color: red;">more than $1.00 per square foot per year</span>. (Oil, Propane, or Electric the number is roughly double)</li>
<li><span data-mce-style="color: #00ff00;" style="color: lime;"><span data-mce-style="background-color: #ffff00;" style="background-color: yellow;"><strong>I AM HAPPY TO SEE YOU</strong></span></span> if you spend <span data-mce-style="color: #00ff00;" style="color: lime;"><span data-mce-style="background-color: #ffff00;" style="background-color: yellow;">$.50 to $1.00</span></span></li>
<li><strong><span data-mce-style="color: #008000;" style="color: green;">I WILL COME TO SEE YOU</span></strong> if you spend<span data-mce-style="color: #ff0000;" style="color: red;"> <span data-mce-style="color: #008000;" style="color: green;">less than $.50</span></span><span data-mce-style="color: #008000;" style="color: green;">,</span> <em>but you are either freezing or your house is already fairly efficient</em>. I hope there are comfort or durability issues you want to address. Please don't expect miracles when it comes to saving money on energy.</li>
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<strong>Most people’s single largest energy expense is heating their homes, this also means this is most peoples biggest opportunity for savings. </strong></div>
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<div data-mce-style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; text-align: center; padding: 0px;" style="color: #333333; font-family: Georgia, 'Times New Roman', 'Bitstream Charter', Times, serif; font-size: 13px; line-height: 19px; margin-bottom: 10px; padding: 0px; text-align: left;">
<strong>And Remember - </strong><span style="background-color: white; font-size: x-small;">Equipment that runs gently and continuously is like your car on the highway, running lots of miles with very little fuel. </span><span style="background-color: white; font-size: x-small;"> </span><span style="background-color: white; font-size: x-small;">In the end, every house is different. You can't know what really saves unless you track behavior and savings. </span></div>Ted Kiddhttp://www.blogger.com/profile/14283149266019846669noreply@blogger.com0tag:blogger.com,1999:blog-699531228844218731.post-2816054319283308182012-06-21T18:04:00.000-04:002013-01-02T09:16:54.894-05:00Applying for your FREE (or Low Cost) Energy AuditOk, so you've taken the <a href="http://eesny.blogspot.com/2012/04/how-high-are-my-energy-bills-simple.html" target="_blank">3 step test</a> or some other way decided a free audit is worth the effort. Your energy opportunity is appealing, your energy cost is higher than you'd like, comfort could be improved, and/or there is some other issue you would like to address...<br />
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<b><u>Good news! The application is amazingly simple too!</u></b> Assuming you got your energy history from the Opportunity <a href="http://eesny.blogspot.com/b/post-preview?token=howQzjYBAAA.rfwvCzYG9f1wuEM2LPVrvg.8zhRwDeyrk7M5k_PNw4wbw&postId=1317318942943826942&type=POST" target="_blank">MEASUREMENT STEP</a>, <b><i>you just have a one page application to complete. </i></b><br />
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<b><a href="http://bit.ly/NYSERDAirrectemps" target="_blank">CLICK HERE</a> for the Home Performance Free or Reduced Cost Audit Application and select either "APPLY ONLINE" or "DOWNLOAD APPLICATION". </b><br />
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<span style="font-size: x-small;"><span style="text-align: -webkit-auto;">***** If you would like us to</span><b style="text-align: -webkit-auto;"> automatically contact you to schedule the audit once you get approval,</b><span style="text-align: -webkit-auto;"> check the contractor check box and put </span><span style="color: #38761d; text-align: -webkit-auto;"><b>CSG@EESNY.COM</b></span><span style="text-align: -webkit-auto;"> on the e-mail line at the bottom.</span></span>
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This is what the form looks like (May 2012):<br />
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<a href="http://2.bp.blogspot.com/-vPZG5jKj8zw/T70kiqV-8sI/AAAAAAAASyM/IPMdrKazH4U/s700/gjgny-energy-audit-app.ashx+(applicationpdf+Object)+-+Mozilla+Firefox+5232012+15429+PM.bmp.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="" border="0" height="640" src="http://2.bp.blogspot.com/-vPZG5jKj8zw/T70kiqV-8sI/AAAAAAAASyM/IPMdrKazH4U/s640/gjgny-energy-audit-app.ashx+(applicationpdf+Object)+-+Mozilla+Firefox+5232012+15429+PM.bmp.jpg" title="Audit Application" width="490" /></a></div>
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<a href="http://bit.ly/NYSERDAirrectemps" style="font-weight: bold; text-align: center;" target="_blank">Again, CLICK HERE</a><span style="font-weight: bold; text-align: center;"> for the Audit Application. </span><br />
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***** If you would like us to<b> automatically contact you to schedule the audit once you get approval,</b> check the contractor check box and put <span style="color: #38761d;">CSG@EESNY.COM</span> on the e-mail line at the bottom. <br />
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Next, scan and send the application to HPwES-Audit@csgrp.com. The audit approval office really has their act together, you'll hear back from them usually within 2-3 days.<br />
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<span style="background-color: lime; color: red;">FREE or LOW COST? WHAT'S THIS COST? </span><span style="background-color: white; color: red;">- It depends upon your family income. In MONROE COUNTY if your income is below $137,400 the audit is free. </span><br />
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<b>And if you include </b>
<span style="color: #38761d;">CSG@EESNY.COM</span> on the contractor line, I'll get notified too.<b> You can simply wait for my phone call.</b><br />
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If you need help, feel free to get in touch with me.<br />
<br class="Apple-interchange-newline" />Ted Kiddhttp://www.blogger.com/profile/14283149266019846669noreply@blogger.com0tag:blogger.com,1999:blog-699531228844218731.post-13173189429438269422012-06-19T15:16:00.000-04:002013-11-08T20:06:40.602-05:00How High ARE My Energy Bills? - A simple measurement tool<div style="text-align: center;">
<b style="color: red; text-align: left;"><u><span style="font-size: large;">START HERE</span></u></b><br />
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<li><a href="https://lh5.googleusercontent.com/-Ygg5SUibUik/T3tKhfCQaoI/AAAAAAAAQhw/nfHCRZ_qZgU/s512/RGE%2520energy%2520use%2520Energy%2520Use%2520-%2520Google%2520Chrome%25208252011%252010438%2520PM.bmp.jpg" target="_blank">GET ONE YEAR ENERGY HISTORY</a><span style="color: #274e13;"> -</span><span style="color: #274e13; font-size: x-small;"> it's easy if you have a cheat sheet. <b style="font-family: arial;"><a href="https://plus.google.com/photos/112346123931976368847/albums/5472444370002162865/5473005357070186674?banner=pwa&pid=5473005357070186674&oid=112346123931976368847" target="_blank"><span style="font-family: Arial; font-weight: normal; vertical-align: baseline; white-space: pre-wrap;">CLICK HERE</span></a><span style="font-family: Arial; font-weight: normal; vertical-align: baseline; white-space: pre-wrap;"> to see screen shots of the steps to getting energy history at </span><a href="http://bit.ly/yNePLN" target="_blank"><span style="font-family: Arial; font-weight: normal; vertical-align: baseline; white-space: pre-wrap;">RGE.COM</span></a><span style="font-family: Arial; font-weight: normal; vertical-align: baseline; white-space: pre-wrap;"> or </span><a href="http://bit.ly/wSsZly" target="_blank"><span style="font-family: Arial; font-weight: normal; vertical-align: baseline; white-space: pre-wrap;">NYSEG</span></a></b></span></li>
<li><a href="http://bit.ly/Homescale" target="_blank">STEP ON AN ENERGY SCALE</a><span style="color: #274e13;"> -</span><span style="color: #274e13; font-size: x-small;"> it's just 2 numbers and clicking a button if you have energy history. </span></li>
<li><a href="https://lh6.googleusercontent.com/-xBBXjm6FrbA/T3nx6CkY0oI/AAAAAAAAQfc/oBPi9U-BX2M/s512/Home%2520Energy%2520Calculator%2520%2520Ted%2520Kidd%2520-%2520Google%2520Chrome%2520422012%252023556%2520PM.bmp.jpg" target="_blank">DECIDE IF FURTHER EFFORT IS WARRANTED</a><span style="color: #274e13;"> - </span><span style="color: #274e13; font-size: x-small;">it's easy. Decide if your home has a big enough savings opportunity to warrant applying for the free audit program. (not really free, you've already paid for it out of<span style="color: #38761d; text-align: -webkit-auto;"> </span><a href="http://www.epa.gov/chp/state-policy/renewable_fs.html" style="text-align: -webkit-auto;" target="_blank">RPS</a><span style="color: #38761d; text-align: -webkit-auto;"> and </span><a href="http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=NY07R&re=1&ee=1" style="text-align: -webkit-auto;" target="_blank">SBC </a><span style="color: #38761d; text-align: -webkit-auto;">charges on</span> your energy bill. So,<b><i> you are paying for an audit whether you take advantage of it or not</i></b>). </span></li>
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<b style="color: red;"><u><span style="font-size: large;">DONE! THAT'S IT! EASY!</span></u></b></div>
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Less than 15 minutes, right? </div>
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<span style="color: #38761d;"><b><u><span style="font-size: large;">NEXT:</span></u></b> </span> </div>
If you feel further effort IS warranted, apply for an audit, w<span style="text-align: left;">hich </span><i style="text-align: left;">may </i><span style="text-align: left;">take another 15 minutes</span><span style="text-align: left;">. </span><br />
<span style="text-align: left;">CLICK HERE: </span><a href="http://eesny.blogspot.com/2012/04/applying-for-your-free-or-low-cost.html" style="text-align: left;" target="_blank">It's a one page application</a><span style="text-align: left;">. </span></div>
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<span style="font-family: Times, 'Times New Roman', serif; font-size: x-small;">(I am always looking for ways to simplify and clarify the information I provide. </span><span style="font-family: Times, 'Times New Roman', serif; font-size: x-small;">If you have comments or suggestions, <b>please "Post a Comment" at the bottom or send me a note. </b>) </span></div>
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<b><i><u><span style="font-size: large;">Not clear? Visualize what the 3 step measurement process looks like:</span></u></i></b></div>
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<span style="color: red;"><u>STEP 1. GET ONE YEAR ENERGY HISTORY.</u></span><span style="text-align: left;"> Here's what mine looks like:</span></div>
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<a href="http://1.bp.blogspot.com/-TU-1pM0RZ8M/S_IHLidcX-I/AAAAAAAAd-8/I9AeGj_P9BM/s512/RGE%2520energy%2520use%2520Energy%2520Use%2520-%2520Google%2520Chrome%25205152010%252025751%2520PM.bmp.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="305" src="http://1.bp.blogspot.com/-TU-1pM0RZ8M/S_IHLidcX-I/AAAAAAAAd-8/I9AeGj_P9BM/s320/RGE%2520energy%2520use%2520Energy%2520Use%2520-%2520Google%2520Chrome%25205152010%252025751%2520PM.bmp.jpg" width="320" /></a></div>
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<span style="font-size: x-small;">(Click on image to shuttle quickly through images)</span></div>
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You can add these number by hand, or cut and paste to Excel to come up with annual consumption. (You can also cut and paste this to the email that you attach your free audit application to, as they want documentation of energy use.) </div>
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You'll also need your home's square footage. IF you don't know this number you can find it on <a href="http://bit.ly/HLeI2J" target="_blank">ZILLOW</a></div>
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<span style="color: red;"><u>STEP 2. STEP ON SCALE: </u></span> Take your annual consumption and square footage and enter into the <span style="color: #0b5394;"><a href="http://bit.ly/Homescale" target="_blank">ENERGY SCALE</a>:</span></div>
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<a href="http://3.bp.blogspot.com/-hHHNs88OOn8/T3nx2o1O38I/AAAAAAAAQe8/ftKeoy83OGk/s1600/Home+Energy+Calculator++Ted+Kidd+-+Google+Chrome+422012+14247+PM.bmp.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="640" src="http://3.bp.blogspot.com/-hHHNs88OOn8/T3nx2o1O38I/AAAAAAAAQe8/ftKeoy83OGk/s640/Home+Energy+Calculator++Ted+Kidd+-+Google+Chrome+422012+14247+PM.bmp.jpg" width="489" /></a></div>
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Here you see the annual usage and square footage entered,</div>
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Next click <b>Calculate</b> and....</div>
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<a href="http://1.bp.blogspot.com/-iwyiqvWYWUk/T3nx26w4KBI/AAAAAAAAQfE/5xVitgkOGt8/s1600/Home+Energy+Calculator++Ted+Kidd+-+Google+Chrome+422012+14254+PM.bmp.jpg" imageanchor="1" style="clear: left; display: inline !important; margin-bottom: 1em; margin-right: 1em; text-align: center;"><img border="0" height="640" src="http://1.bp.blogspot.com/-iwyiqvWYWUk/T3nx26w4KBI/AAAAAAAAQfE/5xVitgkOGt8/s640/Home+Energy+Calculator++Ted+Kidd+-+Google+Chrome+422012+14254+PM.bmp.jpg" width="505" /></a></div>
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<a href="http://2.bp.blogspot.com/-6VCOnBiMkAo/T3nx5mjKJXI/AAAAAAAAQfU/d5PBo7kUSRM/s1600/Home+Energy+Calculator++Ted+Kidd+-+Google+Chrome+422012+23538+PM.bmp.jpg" imageanchor="1" style="clear: left; display: inline !important; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="320" src="http://2.bp.blogspot.com/-6VCOnBiMkAo/T3nx5mjKJXI/AAAAAAAAQfU/d5PBo7kUSRM/s320/Home+Energy+Calculator++Ted+Kidd+-+Google+Chrome+422012+23538+PM.bmp.jpg" width="264" /></a><a href="http://2.bp.blogspot.com/-d7exsYsoR7g/T3nx5JEt80I/AAAAAAAAQfQ/ZnXhsp0UmKQ/s1600/Home+Energy+Calculator++Ted+Kidd+-+Google+Chrome+422012+14331+PM.bmp.jpg" imageanchor="1" style="clear: right; display: inline !important; margin-bottom: 1em; margin-left: 1em; text-align: -webkit-auto;"><img border="0" height="320" src="http://2.bp.blogspot.com/-d7exsYsoR7g/T3nx5JEt80I/AAAAAAAAQfQ/ZnXhsp0UmKQ/s320/Home+Energy+Calculator++Ted+Kidd+-+Google+Chrome+422012+14331+PM.bmp.jpg" width="257" /></a></div>
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YOUR Opportunity will<br />
POP UP</div>
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<u><span style="color: red;">STEP 3. SEE WHAT YOUR OPPORTUNITY MEANS:</span></u> Below is how I've classified the various pop-ups:</div>
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<span style="color: #38761d;"><br class="Apple-interchange-newline" />Again, NEXT: </span> If you feel further effort IS warranted, apply for an audit, w<span style="text-align: left;">hich </span><i style="text-align: left;">may </i><span style="text-align: left;">take another 15 minutes</span><span style="text-align: left;">. </span><a href="http://bit.ly/ffaQPz" style="text-align: left;" target="_blank">It's a one page application</a><span style="text-align: left;">. </span></div>
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Ever wonder; "How much am I wasting UNNECESSARILY and WHERE IS IT GOING?" </div>
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<u><span style="color: red;">STEP 4. SIGN UP FOR FREE ENERGY AUDIT PROGRAM</span></u> - it's easy. <a href="http://bit.ly/ffaQPz" target="_blank">It's a one page application</a>. </div>
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If you feel further effort IS warranted, that your house has attractive opportunity for energy savings or comfort improvement, the next small bite is apply for an audit, w<span style="text-align: left;">hich </span><i style="text-align: left;">may </i><span style="text-align: left;">take another 15 minutes:</span></div>
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<li>SIGN UP FOR FREE ENERGY AUDIT PROGRAM - it's easy. <a href="http://bit.ly/ffaQPz" target="_blank">It's a one page application</a>. Now you have your energy history and know your home has opportunity that meets your cost effectiveness criteria. Download the PDF and it's "fillable". </li>
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<span style="color: #38761d;">DONE! Now you have claimed your $250-$400 energy audit. Actually, reclaimed <a href="http://www.epa.gov/chp/state-policy/renewable_fs.html" target="_blank">RPS</a> and <a href="http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=NY07R&re=1&ee=1" target="_blank">SBC </a>charges you've paid in to the system on your utility bill. </span><br />
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<u><span style="color: red;">STEP 5.</span></u></div>
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<span style="color: #38761d;"><u>NEXT BLOG: </u> </span><span style="color: red;">FINANCING PROGRAMS THAT USE ENERGY SAVINGS TO PAY FOR IMPROVEMENTS! </span>On-Bill: So good it sounds too good to be true! </div>
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Line up the financing. It's a good idea to get this step started now. You have nothing to lose and understanding your options here will be really important later. (Many people find putting this off leads to disappointment and back-tracking.)</div>
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The audit opens the door for additional incentives available for funding repairs and improvements through the NY Home Performance with Energy Star program. Please contact me if you have any questions!</div>
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Ted Kiddhttp://www.blogger.com/profile/14283149266019846669noreply@blogger.com5tag:blogger.com,1999:blog-699531228844218731.post-61434484004548135962012-05-03T21:22:00.001-04:002012-05-03T22:14:50.874-04:00NO MORE CHASING SIR - Dear Contractors, Now We Can Build!!<br />
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<span style="font-size: large;">Group E-mail sent 5/3/2012 - With SIR basically gone, we can re-focus on accuracy, and build a program that delivers on promise:</span></div>
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I'm going to talk about 4 things: </div>
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<li>The recent positive program changes. </li>
<li>Many haven't fully grasped the changes - some ideas to help with that. </li>
<li>How this change allows us to get back to focusing on continuously improving the accuracy of our modelling.</li>
<li>Finally, modeled to actual energy consumption ratio is in the area of 1.369324, and this needs to get fixed quickly. </li>
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<b>1. Program Changes - SIR goes away (for the most part) - <span style="text-align: left;"><i>No kidding, <a href="http://credit.csgrp.com/webapps/nyserda/Webinars/2012-03-30%2015.05%20Home%20Performance%20with%20ENERGY%20STAR_%20March%20Webinar.wmv" style="color: #1155cc;" target="_blank">no more chasing SIR!!!</a> </i></span></b></div>
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Effective April 1 a <a href="http://credit.csgrp.com/webapps/nyserda/Announcements/3-22-2012/Cost%20Effectiveness%20Program%20Announcement%203-22-12.pdf" style="color: #1155cc;" target="_blank">change</a> occurred that I think people don't fully grasp. (Continuous changes to the program had left a lot of people overwhelmed and confused, including me). <a href="http://credit.csgrp.com/webapps/nyserda/Forms/6%204%20Eligible%20Measures%20and%20Accessories%20List%20-%20Effective%20January%201%202012.pdf" style="color: #1155cc;" target="_blank">Pre-approved Measures</a> no longer require SIR -or- TRC for 10% hemi or 50% aHPwES. Cost effectiveness of measures is pre-determined, doesn't matter what SIR you get. </div>
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I've heard a lot of complaints about models having no resemblance to the home when they finally get approved, these model contortion efforts can stop. Now that SIR and TRC are no longer required for <a href="http://credit.csgrp.com/webapps/nyserda/Forms/6%204%20Eligible%20Measures%20and%20Accessories%20List%20-%20Effective%20January%201%202012.pdf" style="color: #1155cc;" target="_blank">pre-approved measures</a>, we can now run <b>everyone </b>through the program for <b>SOME </b>incentive, which is fantastic! </div>
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<i><b>Even more fantastic - we can run 50/50 (aHPwES) <span style="color: red;">without SIR </span>(something I've never seen before).</b></i></div>
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<span style="color: #222222;">And even the loans are not completely off the table for sub 1.01 jobs. You can "buy down" the loan which means you can borrow up to the project cost TRC and SIR would justify. Basically they will loan based upon project energy savings. </span><b>In other words, if that $10,000 project would make the bar at $6,000, you can borrow that amount and only need to find $4,000 from other sources. </b></div>
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<b style="color: black; font-family: arial; font-size: small;">2. Getting our heads around this change - </b><span style="color: black; font-family: arial; font-size: x-small;">Not many attended the webinar, and even if you did the true meaning of recent changes are such a serious easing of restrictions that they may not be very clear. If it's not clear to you, it's probably not clear to your sales force. </span></div>
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<b><span style="font-size: medium;">So how do we convey this to the sales force?</span></b></div>
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<b>DISCUSS PROGRAM FINANCING.</b></div>
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Some are saying "Just don't do it". I think if clients are looking for financing, direct them to it <b>but encourage/require completion of your standard financing application also</b>. Make sure they understand the financing is challenging, and they may not get the whole amount financed through the program. And remember: <b style="font-family: 'Times New Roman'; font-size: medium;"><span style="font-family: Arial; font-size: 15px; font-weight: normal; vertical-align: baseline; white-space: pre-wrap;"><a href="http://credit.csgrp.com/webapps/nyserda/Announcements/3-22-2012/Cost%20Effectiveness%20Program%20Announcement%203-22-12.pdf" style="color: #1155cc;" target="_blank">Customers have the option to “buy down” the project cost so that the financed amount meets the cost effectiveness criteria.</a></span></b></blockquote>
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<b>DISCUSS ON-BILL.</b></div>
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We lobbied hard for this, and it's a great program. Again, have your standard financing paperwork. Explain that clients can buy down the total cost of the job by what the energy savings pays for, so they will only have to get outside financing for the difference. </blockquote>
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This means the additional net monthly cost of improvements to homeowners will only be the monthly cost of the amount <b>not </b>financed through on-bill. On Bill requires very true TREAT, so this should help provide confidence to clients until we get to <b>Published Realization Rates.</b> </blockquote>
<b><br /></b><b>Now that NYSERDA has removed SIR and TRC hurdles for a significant amount of work, accurate modeling is not an impediment to getting incentives. Please re-focus on accurate modelling instead of "tweaking to get approval" so when results tracking does occur, you don't put yourself and the program in a difficult spot. </b></div>
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<b>Please everyone, begin<a href="http://www.psdconsulting.com/sites/www.psdconsulting.com/files/emodules/True%20Up.html" target="_blank"> rigorously truing your models</a>, or Realization Rates will continue to deviate from reality. </b>$1 promised = 63 cents saved does not engender confidence. When results tracking by contractor becomes public, companies who are not diligent with their modelling run the risk of looking incompetent or worse, fraudulent. Conversely, those with good realization will have the most powerful sales tool imaginable.<br />
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<b>REVIEW THE 3/30 WEBINAR by clicking here:</b> <b style="text-align: left;"><i><a href="http://credit.csgrp.com/webapps/nyserda/Webinars/2012-03-30%2015.05%20Home%20Performance%20with%20ENERGY%20STAR_%20March%20Webinar.wmv" style="color: #1155cc;" target="_blank">No more chasing SIR!!!</a></i></b></div>
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<b><br />3. Improve Modelling Accuracy - This requires truing to actual consumption. </b></div>
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For over a year we've been truing our models. Not chasing SIR because we see transparency of realization around the corner, and we perceive eventual competitive advantage opportunity here. That meant very very few 1.01 SIR opportunities. These program changes means we can finally sell jobs! </div>
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This change means the only reason a contractor might want to game TREAT is to over promise savings to make improvements "payback" better. I don't think that's something any of us wants to risk. Leave that for "guy with van, dog, and six pack." ON BILL has such rigorous modelling requirements I don't think significant gaming can occur. So pressure on accurate modeling is again going in the right direction!!!</div>
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<b>4. Fix Accuracy of "Promise" - SOME DATA YOU SHOULD <u>ALL</u> BE AWARE OF:</b></div>
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TRUING NOT REQUIRED. Since the program never required truing, it's something many don't know how to do. It's extra work. (PSD has <a href="http://www.psdconsulting.com/sites/www.psdconsulting.com/files/emodules/True%20Up.html" target="_blank">videos showing how to do it</a>.) Unfortunately, initial models typically grossly overstate consumption. Overstate consumption and you overstate savings. So everybody needs to learn to TRUE UP.</div>
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From data on completed jobs post GJGNY audit, it appears the models <b>overstate reported consumption by about 36.9324%. </b> This <span style="text-align: left;">would lead to the conclusion that even if improvements are accurately modeled, and energy savings % is correct, actual energy & dollar saving will be pretty dramatically overstated.</span> Truing was optional, that eventually will not be the case. May as well start truing now for reasons that I hope to make apparent. </div>
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I have calculated consumption overstatement by contractor as well. If someone else doesn't start ranking contractors using these numbers, I will. Numbers will be from here forward, not looking back. SIR cliff made the playing field incredibly unfair, but as of April 1, 2012 that's gone. From here forward NYSERDA has dramatically fixed the turf, so bad numbers are not justifiable. </div>
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<b>Think of this: When we can <i><u>prove</u></i> $1 promised = $1 saved, selling big jobs becomes child's play</b>. Winning jobs away from the non- HPwES low bidder will be easy. Now is the time to correct our modelling so we can point to policy as cause for inaccurate promise during this small window of time, rather than our practices, ethics or cultures.<br />
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Again, your audit's modeled and reported energy consumption are publicly available data. If someone else doesn't start ranking contractors using these numbers, I will. Eventually I will get Realization Rates as well, the long term goal is to track Realization. </div>
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So accuracy may be a metric you want to think about from a competitive advantage/disadvantage perspective henceforth. </div>
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<span style="color: #006600; font-family: arial; font-size: x-small;">Cara at CSG added reported consumption to page two of the approval, which makes truing much easier. She has also added square footage, which allows us to quickly understand the opportunity before the audit. </span></div>
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<b>Results tracking is coming. We have time to prepare if we start now. Please start</b> <b><a href="http://www.psdconsulting.com/sites/www.psdconsulting.com/files/emodules/True%20Up.html" target="_blank">truing</a></b> <b>up your models. </b>Thank you for your time!</div>
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Ted Kidd</div>
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<a href="http://eesny.com/" target="_blank">Energy Efficiency Specialists</a></div>
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<a href="http://bit.ly/HHXOTT" target="_blank">EES Blog</a></div>
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<a href="tel:%28585%29%20205-8674" target="_blank" value="+15852058674">(585) 205-8674</a> Direct</div>
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<span style="font-family: 'comic sans ms', sans-serif;"><span style="background-color: #66ff99;">If TRANSPARENCY is the answer and FEAR is the barrier, how do we help put fear aside? </span> ~Ted Kidd, 2012</span></div>
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<a href="http://www.psdconsulting.com/software/treat/training-videos" target="_blank">TREAT Videos at PSD</a></div>
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(Bryan, maybe someone could update the most recent eligible measures list to reflect the changes. Most recent one on contractor portal is 1/1/12, still states projects must have sir greater than 1.)</div>
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**** Note - in looking at the data - there are a fair number of projects that project annual energy savings GREATER than the total annual consumption reported by the customer. You would think the SIR of these projects would be tend to be predominantly in the 1.01 area, but this appears not to be true. Possibly due to GeoThermal installs? <br />
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</div>Ted Kiddhttp://www.blogger.com/profile/14283149266019846669noreply@blogger.com0tag:blogger.com,1999:blog-699531228844218731.post-9975890977456413172012-04-03T11:21:00.002-04:002013-01-30T23:38:00.010-05:00How True Are YOUR Models?<a href="http://2.bp.blogspot.com/-L2r5vg58_rc/T3sE2rfYcmI/AAAAAAAAQfw/f-m341VErXg/s524/HOME+Improvement+Packages.pdf+-+Adobe+Acrobat+Pro+432012+100931+AM.bmp.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="272" src="http://2.bp.blogspot.com/-L2r5vg58_rc/T3sE2rfYcmI/AAAAAAAAQfw/f-m341VErXg/s400/HOME+Improvement+Packages.pdf+-+Adobe+Acrobat+Pro+432012+100931+AM.bmp.jpg" width="400" /></a><br />
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Ever wonder how accurate your energy savings projections are? <br />
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Like to know what level of confidence you (and your clients) should have in YOUR energy audit software savings projections?<br />
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Do you believe in the adage: <i><b>Garbage In, Garbage Out?</b></i><br />
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I have 10+ years worth of energy use, on a spreadsheet. <b>Doesn't everyone keep such a thing? </b><br />
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You mean everyone is not obsessive compulsive about their fuel use? Really, you don't have a spreadsheet like this for all their vehicles? You don't want to know your fuel cost per mile?<br />
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OK, I get it. Clients aren't calling contractors with "Hey, you said I'd save $700 and I only saved $250!!" People simply are not tracking results. Nobody cares.<br />
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Rather, I think most everyone DOES care (popularity of sites like <a href="http://bit.ly/HhVKU6" target="_blank">Fuelly</a> proves people want to roll with this, they just don't want to invent the WHEEL to do it!). The issue is <b>just not enough to figure out how to do it on their own. </b><br />
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<b>Gathering energy data is so onerous, bills are so frustrating and confusing, </b>very few care enough to suffer through the effort. It's as unpleasant as doing taxes with no guaranteed reward, no clear incentive. Guess it's like hiking. Sure I like to hike, but I'm not interested in climbing Everest. Way too much work for a hard to imagine reward at best, non-existent reward at worst. <br />
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Well, I wanted to know. I worried about selling a bunch of hooey, so I kept track. <br />
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And for larger projects, the savings is supposed to carry a fair amount of the improvement cost, so failure could be a fair harm to people. I felt a need for some due diligence. I even put some time into <a href="http://tedkidd.blogspot.com/" target="_blank">BLOGGING</a> about projects. <br />
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<b><i><u>WHAT I LEARNED FROM TRACKING...</u></i></b><br />
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Some of what I learned - I learned that if you build an accurate model, true it to actual energy use, put some thought into good, interconnected energy design, and insured the work was done diligently, actual savings exceeded model projections. <br />
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<i><u><b>SO, WHERE CAN THIS GO WRONG? </b></u></i><br />
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<b>Model Accuracy, Truing Energy Use, Improvement Design, Implementation Diligence, Energy Cost,</b> any place there is a variable that an inaccurate metric is either required ($1.60 therm for natural gas, really!?), or can accidentally be overlooked (If truing is not required, and you are in a hurry to get the work out...), or you need to hit some arbitrary SAVINGS RATIO to have the job qualify for incentives, or it won't sell and you've done 15 hours of work for no compensation... (SIR Cliff).<br />
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...If you've made it this far and would like me to continue, please leave a comment or question.<br />
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<br />Ted Kiddhttp://www.blogger.com/profile/14283149266019846669noreply@blogger.com0tag:blogger.com,1999:blog-699531228844218731.post-91972341834351252672012-04-02T15:35:00.000-04:002012-12-04T16:02:35.616-05:00See SIR opportunity BEFORE the AUDIT!So, You've got an Audit approval letter! (If not, <a href="http://bit.ly/hyq9yV" target="_blank">HERE's</a> an application form)<br />
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Client heats with Natural Gas, So you know there's probably less opportunity than an oil or propane client. Possible SIR challenges. Like to know how big the cost effective savings opportunity is BEFORE THE AUDIT?<br />
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<b>Wanna rough idea if there will be SIR opportunity before you get to the house? </b><br />
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I have a rough calculator for you <a href="http://bit.ly/Homescale" target="_blank">HERE</a>. <br />
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Take your approval letter, go to page 2 which has annual therms and square feet. Enter those numbers in the boxes, click Calculate, and if the box is any color other than red, be fairly confident you do not have a program opportunity.<br />
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This is what it looks like:<br />
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DATA FROM APPROVAL LETTER:<br />
<a href="http://3.bp.blogspot.com/-dLrjOZ_eKzU/T3nkBQP0--I/AAAAAAAAQd4/o_qPzwRgO6U/s1600/ApprovalLetter+%25286%2529.pdf+-+Adobe+Acrobat+Pro+422012+13719+PM.bmp.jpg" imageanchor="1" style="clear: right; display: inline !important; float: right; margin-bottom: 1em; margin-left: 1em; text-align: center;"><img border="0" height="178" src="http://3.bp.blogspot.com/-dLrjOZ_eKzU/T3nkBQP0--I/AAAAAAAAQd4/o_qPzwRgO6U/s400/ApprovalLetter+%25286%2529.pdf+-+Adobe+Acrobat+Pro+422012+13719+PM.bmp.jpg" width="400" /></a><br />
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This shows the annual therm consumption and square footage, which you enter in the calculator shown in the NEXT image.<br />
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<a href="http://3.bp.blogspot.com/-hHHNs88OOn8/T3nx2o1O38I/AAAAAAAAQe8/ftKeoy83OGk/s1600/Home+Energy+Calculator++Ted+Kidd+-+Google+Chrome+422012+14247+PM.bmp.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="640" src="http://3.bp.blogspot.com/-hHHNs88OOn8/T3nx2o1O38I/AAAAAAAAQe8/ftKeoy83OGk/s640/Home+Energy+Calculator++Ted+Kidd+-+Google+Chrome+422012+14247+PM.bmp.jpg" width="489" /></a></div>
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Here you see the annual usage and square footage entered,<br />
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next click Calculate and....<br />
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<a href="http://1.bp.blogspot.com/-iwyiqvWYWUk/T3nx26w4KBI/AAAAAAAAQfE/5xVitgkOGt8/s1600/Home+Energy+Calculator++Ted+Kidd+-+Google+Chrome+422012+14254+PM.bmp.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="640" src="http://1.bp.blogspot.com/-iwyiqvWYWUk/T3nx26w4KBI/AAAAAAAAQfE/5xVitgkOGt8/s640/Home+Energy+Calculator++Ted+Kidd+-+Google+Chrome+422012+14254+PM.bmp.jpg" width="505" /></a></div>
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<u>Voila, </u><br />
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<u>Great Opportunity:</u></div>
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This house has a pretty good energy opportunity even on super cheap Natural Gas. <br />
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Don't walk to this audit, drop everything and run because with these rare numbers it is very likely you have a lot of decent work that will be program eligible. <br />
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Unfortunately, it is much more common to run into homes like the next one:<br />
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THIS Home's opportunity is pretty good from a comfort and energy perspective, but you won't find SIR here... <br />
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<a href="http://1.bp.blogspot.com/-mjAYAqyWb0M/T3nt5eK4u8I/AAAAAAAAQfg/uYgm7P_hDSM/s1600/z-ApprovalLetter+%25283%2529.pdf+-+Adobe+Acrobat+Pro+422012+21948+PM.bmp.jpg" imageanchor="1" style="clear: left; display: inline !important; float: left; margin-bottom: 1em; margin-right: 1em; text-align: center;"><img border="0" height="270" src="http://1.bp.blogspot.com/-mjAYAqyWb0M/T3nt5eK4u8I/AAAAAAAAQfg/uYgm7P_hDSM/s640/z-ApprovalLetter+%25283%2529.pdf+-+Adobe+Acrobat+Pro+422012+21948+PM.bmp.jpg" width="640" /></a><br />
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<a href="http://2.bp.blogspot.com/-6VCOnBiMkAo/T3nx5mjKJXI/AAAAAAAAQfU/d5PBo7kUSRM/s1600/Home+Energy+Calculator++Ted+Kidd+-+Google+Chrome+422012+23538+PM.bmp.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="640" src="http://2.bp.blogspot.com/-6VCOnBiMkAo/T3nx5mjKJXI/AAAAAAAAQfU/d5PBo7kUSRM/s640/Home+Energy+Calculator++Ted+Kidd+-+Google+Chrome+422012+23538+PM.bmp.jpg" width="529" /></a></div>
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<span style="text-align: -webkit-auto;">1600 sf/1000 therms. </span></div>
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<span style="text-align: -webkit-auto;">Not that these homes don't have significant savings opportunities, you'll just find efforts to be comprehensive getting parsed to death by SIR and TRC problems. </span></div>
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<span style="text-align: -webkit-auto;">Want to bring up the program here? PROCEED WITH CAUTION! Even if you and your sales people aren't completely confused, the client will be. </span></div>
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On the other end of the scale are folks with pretty low usage who want to do more. Unfortunately there is no encouragement for these folks in the program, because incentive is SIR Cliff instead of Energy Savings based, you don't have a snowballs chance of getting work through: </div>
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<a href="http://2.bp.blogspot.com/-d7exsYsoR7g/T3nx5JEt80I/AAAAAAAAQfQ/ZnXhsp0UmKQ/s1600/Home+Energy+Calculator++Ted+Kidd+-+Google+Chrome+422012+14331+PM.bmp.jpg" imageanchor="1" style="clear: right; display: inline !important; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="640" src="http://2.bp.blogspot.com/-d7exsYsoR7g/T3nx5JEt80I/AAAAAAAAQfQ/ZnXhsp0UmKQ/s640/Home+Energy+Calculator++Ted+Kidd+-+Google+Chrome+422012+14331+PM.bmp.jpg" width="515" /></a><a href="http://1.bp.blogspot.com/-ExMEbNnVbcc/T3njjZqie1I/AAAAAAAAQeg/El8EGg93a5w/s1600/z-ApprovalLetter+%25286%2529.pdf+-+Adobe+Acrobat+Pro+422012+12841+PM.bmp.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><br /></a><a href="http://1.bp.blogspot.com/-ExMEbNnVbcc/T3njjZqie1I/AAAAAAAAQeg/El8EGg93a5w/s1600/z-ApprovalLetter+%25286%2529.pdf+-+Adobe+Acrobat+Pro+422012+12841+PM.bmp.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><br /></a><a href="http://1.bp.blogspot.com/-ExMEbNnVbcc/T3njjZqie1I/AAAAAAAAQeg/El8EGg93a5w/s1600/z-ApprovalLetter+%25286%2529.pdf+-+Adobe+Acrobat+Pro+422012+12841+PM.bmp.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="276" src="http://1.bp.blogspot.com/-ExMEbNnVbcc/T3njjZqie1I/AAAAAAAAQeg/El8EGg93a5w/s400/z-ApprovalLetter+%25286%2529.pdf+-+Adobe+Acrobat+Pro+422012+12841+PM.bmp.jpg" width="400" /></a></div>
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WHAT DO THE POP-UPS MEAN? Below is how I've classified the various pop-ups:</div>
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<a href="http://1.bp.blogspot.com/-xBBXjm6FrbA/T3nx6CkY0oI/AAAAAAAAQfc/oBPi9U-BX2M/s1600/Home+Energy+Calculator++Ted+Kidd+-+Google+Chrome+422012+23556+PM.bmp.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://1.bp.blogspot.com/-xBBXjm6FrbA/T3nx6CkY0oI/AAAAAAAAQfc/oBPi9U-BX2M/s1600/Home+Energy+Calculator++Ted+Kidd+-+Google+Chrome+422012+23556+PM.bmp.jpg" /></a></div>
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Again, this is a pre-audit tool that people can use to understand what neighborhood their opportunity is in, get an understanding of what the audit results are likely to tell them, and basically to set very general expectations. </div>
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It will also help disqualify people who are living in decent homes who want Buffet style return on investment from energy efficiency work. </div>
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Ted Kiddhttp://www.blogger.com/profile/14283149266019846669noreply@blogger.com0tag:blogger.com,1999:blog-699531228844218731.post-44758865427682614102012-04-02T13:01:00.001-04:002012-04-13T15:48:52.493-04:00Vision of how great the NY HPwES could be, if we can avoid catastrophe.<span style="font-family: arial; font-size: x-small;"><u>CONCLUSION/FOLLOW UP:</u></span><br />
<span style="font-family: arial; font-size: x-small;"><br /></span><br />
<span style="font-family: arial; font-size: x-small;">I get the feeling contractors don't yet understand the meaning of these new rules. For a lot of them, they are attempting to use the program as it's been presented to them and it's gotten so complicated they can't even begin to think about things like Cost Effectiveness and Realization Rate, and how these things tie together. Or how the problems they've been facing are about to get worse. </span><br />
<b style="font-family: arial; font-size: small;"><br /></b><br />
<b style="font-family: arial; font-size: small;">Truing models to energy consumption, and truing energy price to actual market price means much lower SIR. </b><br />
<span style="font-family: arial; font-size: x-small;"><br /></span><br />
<span style="font-family: arial; font-size: x-small;">More accuracy in a program with SIR cliff, or it's twin TRC Cliff, means a lot fewer audits with opportunity and a lot fewer opportunities per audit. </span>
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<span style="font-family: arial; font-size: x-small;"><br /></span><br />
<span style="font-family: arial; font-size: x-small;"><u><b>Example: </b></u></span><br />
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<ul>
<li><span style="font-family: arial; font-size: x-small;">Modeled 1500 therms at $1.60 per therm. </span></li>
<li><span style="font-family: arial; font-size: x-small;">Trued home: 1000 actual therms, $1.10 actual therm cost.</span></li>
<li><span style="font-family: arial; font-size: x-small;">TREAT shows 50% savings from comprehensive measures.</span></li>
<li><span style="font-family: arial; font-size: x-small;">Modeled home savings $1200 (1500 x $1.60 x .5)</span></li>
<li><span style="font-family: arial; font-size: x-small;">Trued savings $550 (1000 x $1.10 x .5)</span></li>
<li><span style="font-family: arial; font-size: x-small;">If $1200 savings just passes, what do you think happens when savings drops to $550? </span></li>
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<span style="font-family: arial; font-size: x-small;">BTW, truing models makes blower door games go away. So those who in desperation have been playing blower door games to get projects through, be aware that fall back option is no longer going to be available. </span><br />
<span style="font-family: arial; font-size: x-small;"><br /></span><br />
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<span style="font-family: arial; font-size: x-small;">Feedback is that a lot of people don't understand how all these numbers interconnect, so I'll come at it another way to make the message clearer. </span><br />
<span style="font-family: arial; font-size: x-small;"><br /></span><br />
<span style="font-family: arial; font-size: x-small;">BASKETBALL SLAM DUNK ANALOGY:</span><br />
<blockquote class="tr_bq">
<span style="font-family: Verdana, sans-serif; font-size: x-small;">T<b>he program started out with a 6 ft basket. Clearly almost every attempt was successful.</b></span></blockquote>
<blockquote class="tr_bq">
<span style="font-family: Verdana, sans-serif; font-size: x-small;"><b>Later the basket was raised to 8 ft. Dunk rate declined.</b></span></blockquote>
<blockquote class="tr_bq">
<span style="font-family: Verdana, sans-serif; font-size: x-small;"><b>Later it was raised to 14 ft. Dunk rate declined.</b></span></blockquote>
<blockquote class="tr_bq">
<span style="font-family: Verdana, sans-serif; font-size: x-small;"><b>Later it was raised to 18 ft. Dunk rate declined. </b></span></blockquote>
<blockquote class="tr_bq">
<span style="font-family: Verdana, sans-serif; font-size: x-small;"><b>Some sharp bureaucrats suspect players were cheating, using ladders to dunk baskets. <i>Uhhh, NO KIDDING? </i></b></span></blockquote>
You want a basketball game without cheating - you need to make the basket reachable. Your SIR Cliff needs to go away - there is very little opportunity at 18 ft. <br />
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<span style="font-family: arial; font-size: x-small;"><br /></span><br />
<span style="font-family: arial; font-size: x-small;"><b>On-Bill requires truth in savings.</b> Now that truth in savings has gained a foothold, it will soon spread to all aspects of the program. This can either lead down an incredibly confusing path with very few program opportunities (SIR Cliff), or to a very simple path where anything with energy savings get's incentive.</span><br />
<span style="font-family: arial; font-size: x-small;"><br /></span><br />
<span style="font-family: arial; font-size: x-small;">Let's make incentives that are based upon the savings TRC views the measure has. </span><span style="font-family: arial; font-size: x-small;"><br /></span><br />
<span style="font-family: arial; font-size: x-small;"><br /></span><br />
<span style="font-family: arial; font-size: x-small;">~Ted</span><br />
<span style="font-family: arial; font-size: x-small;"><br /></span><br />
<span style="font-family: arial; font-size: x-small;"><br /></span><br />
<span style="font-family: arial; font-size: x-small;">I've been trying to point this out for over a year. Below are my more recent attempts to point this out: </span><br />
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<span style="font-family: arial; font-size: x-small;">******************************</span></div>
<span style="font-family: arial; font-size: x-small;"><br /></span><br />
<span style="font-family: arial; font-size: x-small;"><br /></span><br />
<span style="font-family: arial; font-size: x-small;">For those interested in measuring jobs from audit approval information, check <a href="http://eesny.blogspot.com/2012/04/see-rough-sir-opportunity-using-your.html" target="_blank">THIS </a>out. </span><br />
<span style="font-family: arial; font-size: x-small;"><br /></span><br />
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<span style="font-family: arial; font-size: large;"><b><br /></b></span></div>
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<span style="font-family: arial; font-size: large;"><b>BELOW IS THE E-MAIL THREAD HISTORY:</b></span></div>
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<span style="font-family: arial; font-size: x-small;">From: </span><b class="gmail_sendername" style="font-family: arial; font-size: small;">Ted Kidd</b><span style="font-family: arial; font-size: x-small;"> </span><span dir="ltr" style="font-family: arial; font-size: x-small;"><tedkidd@eesny.com></span><br />
<span style="font-family: arial; font-size: x-small;">Date: Sat, Mar 31, 2012 at 12:07 PM</span><br />
<span style="font-family: arial; font-size: x-small;">Subject: Great Webinar! Results tracking next please?</span><br />
<span style="font-family: arial; font-size: x-small;">To: John Ahearn <mja@nyserda.org></span><br />
<span style="font-family: arial; font-size: x-small;"><br /></span><br />
<span style="font-family: arial; font-size: x-small;"><br /></span><br />
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<blockquote class="gmail_quote" style="border-left-color: rgb(204, 204, 204); border-left-style: solid; border-left-width: 1px; font-family: arial; font-size: small; margin-bottom: 0px; margin-left: 0.8ex; margin-right: 0px; margin-top: 0px; padding-left: 1ex;">
On Fri, Mar 30, 2012 at 3:35 PM, John Ahearn <span dir="ltr"><<a href="mailto:mja@nyserda.org" target="_blank">mja@nyserda.org</a>></span> <wbr></wbr>wrote:</blockquote>
<blockquote class="gmail_quote" style="border-left-color: rgb(204, 204, 204); border-left-style: solid; border-left-width: 1px; font-family: arial; font-size: small; margin-bottom: 0px; margin-left: 0.8ex; margin-right: 0px; margin-top: 0px; padding-left: 1ex;">
<span style="color: navy; font-family: Arial;">Ted,</span><br />
<div>
<span style="color: navy; font-family: Arial;">It appears at this end that you were successful in logging. I hope the presentation provides useful information.</span></div>
</blockquote>
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<span style="font-family: arial; font-size: x-small;">Yes Mr. Ahearn, thanks! Thank you also to Andy Kambourelis and Cara Tromans of CSG, both of whom responded nearly instantly with a path to access. </span><br />
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<b style="font-family: arial; font-size: small;">And thank all of you at NYSERDA for proving you are very willing to listen, are light on your feet, and can drive change quickly.</b><span style="font-family: arial; font-size: x-small;"> I think you've restored hope for a lot of people that this program can be put back on the tracks. Your poll indicates changing the program to results based incentives is much more than an idea, it's a distinct possibility. SIR Cliff can go away. I hope you are being flooded with grateful and supportive e-mails. </span><br />
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<span style="font-family: arial; font-size: x-small;">Not discussed was the critical next step; </span><b style="font-family: arial; font-size: small;"><u><i>Results Tracking:</i></u></b><br />
<br />
<span style="font-family: arial; font-size: x-small;">Almost anything can be distilled down to a present value equation, and we need to do that with our program. We provide a financial vehicle. Like an annuity, we take present dollars and sell the promise of a future payment stream. Instead of providing cash, we provide a reduction in future energy liability which is converted to cash. Now, the buyer can set return expectation. Next we need to know that the promised expectation can be met. </span><br />
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<span style="font-family: arial; font-size: x-small;">To convert this program we need to know our results. </span><br />
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<span style="font-family: arial; font-size: x-small;">We promise savings, but I haven't found anybody comparing actual savings to promised savings. I believe this is called "Realization Rate". There are a lot of reasons tracking doesn't occur (fear, complexity and lack of transparency from utilities...), but the primary reason contractors don't do it is it takes a lot of unreimbursed effort and takes them down what may be a no-win path full of land mines. </span><br />
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<span style="font-family: arial; font-size: x-small;">I have tracked. It is a </span><b style="font-family: arial; font-size: small;">lot </b><span style="font-family: arial; font-size: x-small;">of work with no revenue, and the distinct possibility of creating a pissed off customer if results are poor. I've been lucky, but one pissed off customer and I might abandon tracking forever.</span><br />
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<span style="font-family: arial; font-size: x-small;">Without this critical piece of information, how can we honestly tell people how close their savings will be to the model? Without confirmation, how can we defend the argument that this is a bunch of false promise? If an insurance company took $10,000 in exchange for $50 a month for life, then only provided $15, there would be big trouble. Credibility of the industry would quickly drop to that of used car sales. Window sales. Furnace sales. </span><br />
<br />
<span style="font-family: arial; font-size: x-small;">What will really make us different from "</span><i style="font-family: arial; font-size: small;">Joe HVAC - Guy with Van, 12 pack, and Dog</i><span style="font-family: arial; font-size: x-small;">" is our ability to deliver on promise, and prove it. </span><br />
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<span style="font-family: arial; font-size: x-small;">Proof is the tool to completely marginalize Joe and his "got a great deal on a furnace that 'fell' off the back of a truck" low price approach. But without proof we are doing little more than selling the same sizzle Joe is. The most convincing pitch wins. With proof we provide steak </span><i style="font-family: arial; font-size: small;"><b>and </b></i><span style="font-family: arial; font-size: x-small;">sizzle. </span><br />
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<span style="font-family: arial; font-size: x-small;">This, clearly, can not happen as quickly as changing program incentive from 10% to savings based. But let's start building a thoughtful critical path now? Transparency is coming. A reactive response to transparency is likely to be very unpleasant, so let's be proactive. </span><br />
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<b style="font-family: arial; font-size: small;">The first step is sharing with contractors their realization rate, and that of the overall program. </b><span style="font-family: arial; font-size: x-small;"> From that we can all learn and begin to set goals. We can work on improving delivery together, rather than backing into accuracy with ever more onerous bureaucratic hurdles. </span><br />
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<span style="font-family: arial; font-size: x-small;">If contractors have poor realization rates,</span><b style="font-family: arial; font-size: small;"> please share that with them! </b><span style="font-family: arial; font-size: x-small;">You'll be amazed how quickly they fix it. If Hal Smith's realization rate is under 1 he won't be happy, if it is below average he won't stand for it. I have $1000 that says it'll be above current average in six months. He won't sleep until he's above "average," and he will work diligently to reach 1. Give him his results and see. </span><br />
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<span style="font-family: arial; font-size: x-small;">Change the playing field so we compete for results. On this field everyone wins (except the energy companies and Joe). </span><br />
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<span style="font-family: arial; font-size: x-small;">Thank you for being so responsive, keep up the good work!</span><br />
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<span style="font-family: arial; font-size: x-small;">Very gratefully yours,</span><br />
<span style="font-family: arial; font-size: x-small;">Ted Kidd</span><br />
<a href="http://eesny.com/" style="font-family: arial; font-size: small;" target="_blank">Energy Efficiency Specialists</a><br />
<a href="tel:%28585%29%20205-8674" style="font-family: arial; font-size: small;" target="_blank" value="+15852058674">(585) 205-8674</a><span style="font-family: arial; font-size: x-small;"> Office</span><br />
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<span style="background-color: #99ff99; font-family: 'comic sans ms', sans-serif; font-size: x-small;">Learning from our mistakes means admitting to them first. It takes all of us to build a better system.</span><span style="font-family: arial; font-size: x-small;"> - Dr. Sanjay Gupta</span><br />
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On Fri, Mar 30, 2012 at 3:21 PM, Ted Kidd <span dir="ltr"><<a href="mailto:tedkidd@eesny.com" target="_blank">tedkidd@eesny.com</a>></span> wrote:<br />
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Dear Mr. Ahearn and HPwES participants:<br />
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(At 2:30 I attempted to gain access to the 3pm webinar. Apparently I have a bad registration number. On 3 different browsers I get "Webinar Unavailable", curious.) </div>
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I think it's fair to say;<i> ‘290 other contractors are doing great with it’</i> has been proven false, that '<i>everyone else doesn’t have a problem with it, what is wrong with you</i>' has been shown to be the words of a cruel partner. To those who have replied, thank you for proving this to me and to everyone.</div>
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These are the things we've been hearing sir. I think you may also have been led to believe the same falsehood. I hope you are beginning to see a different picture now. </div>
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It was not my intent to create a stir without offering solutions: </div>
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<b>Currently the program pays a percentage of total job. I think this is the broken piece. </b> A $10,000 job might pass SIR if the price were $8000, problem is we can't perform $10,000 jobs for $8000 and stay in business long. </div>
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<b>PSC wants to pay for energy reduction. </b> If you think about it, they have a number they are willing to pay for every job. That amount occurs at the point that job hits 1.01 SIR. </div>
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<b>Why not make incentive based upon the amount that the PSC feels each individual job is worth, let the homeowner pay the rest? </b>Stop backing into things, come straight at it. Get the windows and water heaters back in, simplify for us sales people so we can explain it to the homeowner again. </div>
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Here's a scenario: </div>
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<span style="font-family: 'comic sans ms', sans-serif;">$10,000 job doesn't make 1.01. At $8000 it does. </span></div>
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<span style="font-family: 'comic sans ms', sans-serif;">This means the homeowner incentive is either $800, (or $4000 for 50/50). <b>PAY THAT! </b> Let the homeowner finance the remaining $9200 (or $6000 for 50/50). </span></div>
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<span style="font-family: 'comic sans ms', sans-serif;">With this approach NYSERDA/PSC pays for the value of the energy reduction they see for every job. Every audit becomes opportunity for sales without having to game models. Many of the current painful contortionist job sales and approval activities go away. </span></div>
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Isn't this almost the same perspective On-Bill is taking, allowing the difference to come from "Off-Bill"?</div>
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I know simple doesn't mean easy. Changing core approach to incentive will be hard, and the prospect out the other side of less bureaucracy may not appeal to some in power. But for us this approach does mean opportunity at almost EVERY AUDIT. </div>
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It means opportunity without having to game energy models. It would hyper-simplify approval, as nearly every job qualifies, just like before March 31, 2011. The program can again apply pressure to run all jobs through it, which I see as critically important program feature removed when "SIR Cliff" was implemented. </div>
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QC cost and complexity could be dramatically reduced. Sampling of energy savings proves accuracy. (Isn't NYSERDA sampling energy savings anyway?) Create incentive for excellence, bonus contractors based upon their savings realization rates. </div>
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A friend sent this:</div>
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<span style="color: #006600; font-family: arial, helvetica, sans-serif; font-size: xx-small;"><i>I especially like your arguments about applying incentive to the energy savings and not holding the retrofit companies to both SIR and realization for the incentives. <br /><br />I like your thoughts about providing incentive that matches to the trued model energy savings (and have the homeowner handle the rest of the cost - I can deal with a $5000 expense rather than $20,000 if I know the other $15,000 will be accurately accommodated by the work being done. <br /><br />This has got to be the answer - figure the energy savings based on the work scope and determine how that can be handled with On-Bill financing and then leave the rest to the homeowner. I think that this approach will get the contractors all back on track to be more supportive of the whole process - and it will be the most effective at reducing the fossil fuel energy usage.<br /><br />I really do think that getting the program to the essence of the last paragraph is the key - it is critical to the program. Without it, the construction companies are just pawns - mice on a treadmill - trying to survive from job to job.</i></span><br />
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With savings based incentives the program returns to it's goal of market transformation and reducing energy use. Sales people can again present the program to homeowners with enthusiasm and gusto! Instead of struggling with model uploads, contractors can get back to work. We can shift from just trying to survive, to prospering. </div>
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Otherwise this program will continue evolving down the path of: "I'll take $250 to have a seat at the kitchen table, and I'm happy to sell the RG&E rebate". I don't think this path leads to high realization rates or long term success for anybody. </div>
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Sincerely,</div>
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Ted Kidd<br />
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<a href="http://eesny.com/" target="_blank">Energy Efficiency Specialists</a></div>
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<a href="tel:%28585%29%20205-8674" target="_blank" value="+15852058674">(585) 205-8674</a> Office</div>
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P.s.: Damian's suggestion about moving this to a blog seems very pertinent at this point. I've posted this stuff at <a href="http://eesny.blogspot.com/" target="_blank">http://eesny.blogspot.com/</a> if anyone wants a reference or to comment.<br />
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On Wed, Mar 28, 2012 at 9:34 AM, Ted Kidd <span dir="ltr"><<a href="mailto:tedkidd@eesny.com" target="_blank">tedkidd@eesny.com</a>></span> wrote:<br />
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<span style="font-family: 'comic sans ms', sans-serif;">Wow, before my reply I would again like to thank everyone for all the private notes of support! </span><br />
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<span style="font-family: 'comic sans ms', sans-serif;">SIDE NOTE: I do not work for Damian, complaining to him or asking him to attempt to shut me up is not fair to him. Also, I intend to advocate for the interests of all homeowners and all contractors, not a select few. For inclusiveness, not exclusivity. Reducing barriers to entry, not increasing them. </span></div>
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<span style="font-family: 'comic sans ms', sans-serif;">I apologize to anyone who is receiving these messages who would rather not get them. Please, anyone who wants off let me know and I will pull your name out. </span></div>
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Dear Mr. Ahearn,</div>
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Thank you for your input. </div>
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NYSERDA now intends to require truing of models. It has been my experience building energy models, before truing to consumption they overstate costs. This is true of every modelling software I've used. With some homes it may be by a factor of as much as 100%. Please think a moment about what this means: </div>
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Your house annual energy spend is $2000. The untrued model says $4000. Improvements reduce consumption by 25% with 1.15 SIR.</div>
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Untrued, $1000 annual savings means your job get's SIR. Trued the savings is $500 and it does not get SIR. </div>
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Part of Energy Efficiency Specialists mission is accurate energy modelling. We have taken the further truing step of comparing projections to results, so we have very high certainty that there is little room for change in our approach if we hope to maintain a grip on reality. <b>We have been seeing very few projects with SIR 1.01 or better, and I can document months worth of conversations with CSG about this. </b> We have been seeing a lot of projects with .7 and lower. </div>
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Pulling 10% incentive off the top will not fix SIR shortfall on trued models. Would you instruct us to do whatever it takes to get jobs approved? Truing models and fuel cost is going to mean <b>even fewer viable opportunities</b>. Over the last year have you not been seeing (at least suspecting) insulation and blower door games? Don't you understand why that was happening? </div>
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<b>Please do not force contractors to true models unless you take away 1.01 SIR.</b> Many have had one foot out the door since last March. Yes I'm an advocate for truth in energy savings, but the path requires more participation, not less. It requires a program with competitive advantage, not a net add to overhead. Benefits of the program from homeowner perspective still requires competitive price. If you continue to make significant adds to contractor overhead, you need to pay for them so price remains competitive. </div>
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<b>Is it true that historically this program has a realization rate of 20%? </b>If that's the case, when contractors start doing accurate modelling what do you think will happen to their SIR's? Do you not see the direct correlation between savings realization and SIR? </div>
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These contortions and convolutions simply add more layers of computer confusion, administration, and are an unfortunate denial of the truth. These guys are playing by ground-rules you created. When you make a mistake, clubbing them with it is terribly unfair. Don't you see these people are bleeding to death? That it's the program's fault? We understand you have issues with the PSC, but you are our conduit. You are our partner. To correct a mistake you must first be willing to admit a mistake has been made. </div>
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I'm sorry nobody has had the gumption to tell you this sir. Clearly you have not been getting the true picture. Your son works at CSG, correct? Bypass the chain of command filters, they are not working. Talk to him! </div>
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<b>Speaking of CSG, apparently the contract for implementer is renewing? Who is involved in that decision? </b> Since they work with us, and are supposedly our partner, shouldn't we be? Has NYSERDA taken a poll of all contractors to see if we would like a change of implementer? Is NYSERDA interested in our opinion? </div>
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Truing models and fuel cost is going to mean <b>even fewer viable opportunities</b>. SIR based on net consumer investment instead of total investment doesn't game the numbers enough the other way. We need a program that redirects focus on savings delivered. On Bill will fail without it. Why hasn't your implementer made this clear to you? </div>
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This path is failing. This next tweak doesn't staunch the bleeding, it makes things worse. True models, true energy cost, and SIR requirements are completely incompatible. </div>
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Let's think about this program. Don't we all want opportunity at EVERY AUDIT. Want comprehensive projects to go through the program and get all the wonderful benefits and protections the program used to provide. I want that for every project. </div>
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This is a sales process! "Give us an opportunity at every home, or please just go away." "I wish this program would hurry up and fail." "homeowners complain about crappy walk through audits". Sales guys are fed up, and the program is really quickly losing goodwill now.</div>
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<span style="color: #006600;">SIR based on total project cost, or on <b>consumer investment</b> for a program that supposedly needs to justify <b>public </b>investment is absurd. </span> What conceit causes anyone who hasn't seen the home and talked to the homeowner to deign to know better how the homeowner should invest their own money in their own homes? See the flaw in this thinking? Doesn't this seem to treat the homeowner with abject paternalistic condescension? Besides, isn't the investment made by NYSERDA the investment NYSERDA should be worried about? Shouldn't it just be the public side of the equation that should be concerned with being a "good" investment energy wise? </div>
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<b>Shouldn't SIR be applied to the incentive portion rather then the homeowner portion? If you show up with 10%, worry about your 10%! Let me worry about what my house needs!! </b></div>
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Following this evolutionary path wouldn't we eventually arrive at the logical conclusion of creating incentive based upon energy savings? Imagine how little administration that would entail, not just on the contractor side but the program administration side as well. Incentive based not upon total investment, but upon energy saved. <b>Let the homeowner decide what capital, comfort, health, safety, durability, and investment return they want from improvements they make to THEIR homes. Give them incentive for the energy savings, not the investment return. </b> </div>
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<b>Every project AUTOMATICALLY approved - reinvigorate the interest of the sales force! </b></div>
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Thank you for coming to the conversation. Please fix this sir, it's time to fix this. Everyone is fed up. The answer is not in holding another webinar. There is a huge opportunity here, the time to act is now. </div>
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Ted Kidd<br />
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<a href="http://eesny.com/" target="_blank">Energy Efficiency Specialists</a></div>
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<a href="tel:%28585%29%20205-8674" target="_blank" value="+15852058674">(585) 205-8674</a> Office</div>
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<a href="http://www.quotationspage.com/quote/2298.html" target="_blank" title="Click for further information about this quotation"><span style="background-color: #99ff99; font-family: 'comic sans ms', sans-serif;">All that is necessary for the triumph of evil is that good men do nothing</span><span style="background-color: #99ff99; font-family: 'comic sans ms', sans-serif;">.</span></a> - Edmund Burke</div>
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On Mon, Mar 26, 2012 at 6:17 PM, John Ahearn <span dir="ltr"><<a href="mailto:mja@nyserda.org" target="_blank">mja@nyserda.org</a>></span> wrote:<br />
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<span style="color: navy; font-family: Arial;">Dear NYHPwES Contractors,<br />I had hoped that the Program Announcement that we sent out last week would address many of the concerns with SIR. The new guidelines apply SIR only on financing and net of incentives. There is a webinar scheduled for Friday. Please participate in the webinar. Know that I am committed to making HP work for our contractors.<br />John Ahearn</span></div>
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<span style="font-family: Tahoma;"><b>From</b>: Ted Kidd <<a href="mailto:tedkidd@eesny.com" target="_blank">tedkidd@eesny.com</a>><br /><b>To</b>: Bryan D. Henderson; John Ahearn<br /><b>(cc'd contractor list)<br />Sent</b>: Mon Mar 26 17:25:30 2012<br /><b>Subject</b>: Re: "Cost Effectiveness" requirements...? - Thanks for the support! </span></div>
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Hello everyone,<br />
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I was surprised to get such positive response in support of the e-mail I sent Friday. Below are some written responses. I've removed most of the names and retained either a first or last initial. </div>
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I suspect a lot of you are concerned about retribution and are holding back. If anyone else would like to comment anonymously through me, please feel free. I will assume you wish to remain anonymous unless stated otherwise:</div>
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Ted I know we haven't met but thank you for advocating on behalf of all program contractors and our customers. Sincerely, N</blockquote>
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Agreed...thank you. Green Jobs Green New York right? I wish the program wasn't so political. They lose sight of why we do this in the first place... A</blockquote>
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I think you are clear, honest and to the point here. This is something they need to take to heart and discuss when considering how they move forward. P</blockquote>
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Ted, you are right on target!! H</blockquote>
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<span style="font-family: Calibri;">Ted- You make some very good points of course. I think the HPwES program has gone off the rails since last year's changes which made the RG&E rebate the easiest choice for our</span><span style="font-family: Calibri;"> HVAC guys to sell. Not being able to tell the customer with certainty that they can expect the NYSERDA 10% rebate killed the program where the dollars would be about equal.</span><br />
<span style="font-family: Calibri;"> N</span><span style="font-family: Calibri;">ow TRC has complicated the Insulation and Air Sealing side to the point where I don't talk about any rebate up front. I find the I &AS jobs I have been selling address a specific</span> <span style="font-family: Calibri;">problem, like moisture in the attic space, or is embraced because of comfort issues and not because of a rebate. Small projects are not worth the effort to get CSG approval.</span><br />
<span style="font-family: Calibri;">I have had very positive feedback on the I & AS projects we did last year and that is gratifing, so I see it works on a qualitative level. But the true savings are difficult to know </span> <span style="font-family: Calibri;">especially from such a small sample, so you are right in requesting quantitative results on a state wide basis, and additionally at what administrative cost!! </span><br />
<span style="font-family: Calibri;">I feel that TREAT is outdated, that the CHA report is a bad report to give to the customer and that while the intent of HPwES is worthwhile, the implementation is pretty broken.</span><br />
<span style="font-family: Calibri;"> </span> <span style="font-family: Calibri;">There seems to be a lot of people that share this belief but I don't see much being done about it.</span> <span style="font-family: Calibri;">I expect the sharp decline in the number of projects will draw attention, but too late.</span><br />
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<span style="font-family: Calibri;">I will be heading down to the ACI meetings in Baltimore tomorrow. I hope to come back with some ideas on what direction this whole industry may be taking.</span> <span style="font-family: Calibri;">B</span> </blockquote>
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<span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">Ted,</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">Thank you so much for your response to NYSERDA.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">I too have been trying hard to be heard, about all the things you have expressed.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">I managed to get NYSERDA to increase the loan pre-approval time from 60 to 180 days.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">A 60 day period was not working with the process, and my customers were having to re-qualify, sometimes backing out of the sale.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">Yesterday I gave my</span> <span style="color: red; font-family: Calibri, sans-serif; font-size: 15px;">REDACTED</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;"> notice to </span><span style="font-family: Calibri, sans-serif; font-size: 11pt;"><span style="color: red;">REDACTED</span></span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">I am a hard working, valued member of our company, but working within the HPwES program, is setting your business up for failure.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">I believe customer service is the key to good business, but the program create obstacles, that leave your company with deep wounds.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">I wish you the best, and know that you are not alone.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">Sincerely, </span>M</blockquote>
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M followed up with:</div>
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Date: Mon, Mar 26, 2012 at 3:18 PM<br />
Subject: a shame<br />
To: Ted Kidd <<a href="mailto:tedkidd@eesny.com" target="_blank">tedkidd@eesny.com</a>><br />
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Ted,<u></u><u></u></div>
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I give you permission to use my name for your correspondence with NYSERDA.<u></u><u></u></div>
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Ultimately my frustration with the HPwES program, has led me to resign from GHA, as Residential Manager.<u></u><u></u></div>
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The program currently sets up contractors for failure.<u></u><u></u></div>
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I am unable to provide good customer service, and projects are unable to be completed in a timely manner, due to the programs restrictions. To be successful, we rely on customer referrals. With every project falling into conflict, my customers are exhausted by the end, and are unlikely to refer our business. Our association with the HPwES program has put our reputation at great risk.<u></u><u></u></div>
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<span style="font-family: 'Lucida Calligraphy'; font-size: 14pt;">Maggie<u></u><u></u></span></div>
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<span style="font-family: 'Baskerville Old Face', serif; font-size: 14pt;">Maggie Maurer<u></u><u></u></span></div>
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<span style="font-family: 'Baskerville Old Face', serif; font-size: 14pt;">BPI Certified Building Analyst</span></div>
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After seeing these responses a friend wrote:</div>
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Wow - those are some very powerful statements. I know that you were confident about what you stated, but this type of response has to really validate the accuracy of your data and your note. J</blockquote>
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Another friend wrote: </div>
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Wow, seems there is at least one contractor out there that is very frustrated and has no one to vent too.<br />
this would be nice to get out anonymously. </blockquote>
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would be interesting to see what happens. T</blockquote>
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Finally, here is a fairly long one that I chopped more than half out due to length and anonymity:</div>
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<span style="font-family: Calibri; font-size: small;">"Ted, I didn't want to hit reply all for fear of being "black Balled" and having jobs pulled after they were done for the Honeywell nazi's to tear apart like a pack of wolves. I called my CSG rep today and asked him about the cost jobs versus the sir bull crap. he said he did not think there was anything to it, but I am seeing price fixing all over that statement coming down the pipe. it is clear that there is no one at CSG NYSERDA or the PSC that cares one bit about the contractor in the field. </span></div>
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<span style="font-family: Calibri; font-size: small;">...GJNY is a complete bust. I have heard that comfort windows has laid off all but eight employees and is in trouble. Green Homes almost didn't make payroll in the late part of 2011. The free audits are not being policed and there are plenty of "walk through audits" being done and giving the program a bad reputation.<br /> The SIR thing should completely go away entirely. Rate of return is something that almost everyone knows and understands. Let's ask ourselves a questions here on investment, if you get a call for someone that has a comfort isuues why do we need to make it pass any sort of scrutiny from another entity? If the customer is willing to spend the money borrowed or not ... why do we have to beg or worse change something that will get the glorious 1.1 SIR to do the work. </span></div>
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<span style="font-family: Calibri; font-size: small;">...The Green jobs and the changes have put more people out of work and made it more difficult that this needs to be.<br />...I personally belive that they don't want to fix it. The goal for green jobs all along was to put unionized people into the homes to do the work. If they drive the small companies out and there are just a few core companies doing the work it will be easier to make that happen. Don't ask me how that would work but this is what I have been told twice (the unionized part).</span> </div>
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<span style="font-family: Calibri; font-size: small;"></span> There are several things that could fix all of this: </div>
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<span style="font-family: Calibri; font-size: small;">...The SIR thing disappears. </span> </div>
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<span style="font-family: Calibri; font-size: small;">...The customer should be the one to say that they want to spend the money one a give project and not the blessed gods at nyserda and the psc. I think CSG is a puppet right now that is stuck betwwen the contractor and nyserda, i am not defending them just what i think.</span> </div>
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<span style="font-family: Calibri; font-size: small;"> ...There has to my knowledge been no training on what they are really looking for in a treat file. We can be 99% accurate and they will still hold the project up with questions that are so dumb that even typing a repsonse makes one laugh. At the ACI conference in Saratoga at one of the seminars I asked if they could (CSG) put together all of the reasons why a job got rejected for the last month be sent to the contractors in the program. the response was that they don't track it and it would be difficult to do. If they put forth the effort our costs would go down, our jobs would flow faster, CSG would not have the frustration of sending file back and forth for days on end, and holy cow we might make a buck doing it. Again a failure in the system.<br /> ...i would like to have someone at NYSERDA go to a 4500 sq ft house with natural gas for a fuel source do an audit and all of the paperwork associated with that project go back and tell the customer that they can't help. Or better yet have them do all of the paperwork necessary to do a AHP job and see how long it takes them to do, and oh by the way they can't get a pay check until the job is entirely complete.</span><span style="font-family: Calibri; font-size: small;">..The contractor in the field has no help with Treat files, marketing, and for that matter anything besides himself to get through this. Can someone step forward to help?</span><span style="font-family: Calibri; font-size: small;"><br />...There are several more items, but I have been frustrated enough over this whole thing. I am guessing that there are contractors dropping out of this mess left and right. There are also some on the verge of bankruptcy. </span></div>
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<span style="font-family: Calibri; font-size: small;">...They are not looking at the big picture. People who have nothing can get it all, food stamps, HEAP, Empower etc. The people how are struggling to pay there bill and want comfort in there hoem and are willing to pay for that are left out or it takes a god awful long time to get it done. What a sad statement when there are truly millions in the bank of NYSERDA to spend."</span></div>
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When I asked this writer for permission to "Publish" his response, he replied: </div>
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That sounds good. As you can see there is a good man there that has to bail because he can't make a living for his family.</blockquote>
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<span style="color: #222222; font-family: arial, sans-serif;">Folks, lack of guideline clarity, transparency, and arbitrary contractor treatment by CSG carries a huge part in this failure. I think a lot of the troubles with the program track back to bad guidance from </span> from CSG management to CSG staff, and CSG management to NYSERDA. </div>
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<span style="color: #222222; font-family: arial, sans-serif;">Might be nice if we had a new program implementer. </span></div>
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Again, if I can be of assistance or be message conveyance to NYSERDA about CSG or other issues, please don't hesitate to reach out. </div>
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Ted Kidd<br />
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<a href="http://eesny.com/" target="_blank">Energy Efficiency Specialists</a></div>
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<span style="background-color: #99ff99; font-family: 'comic sans ms', sans-serif;">Learning from our mistakes means admitting to them first. It takes all of us to build a better system.</span> - Dr. Sanjay Gupta</div>
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On Fri, Mar 23, 2012 at 3:58 PM, Ted Kidd <span dir="ltr"><<a href="mailto:tedkidd@eesny.com" target="_blank">tedkidd@eesny.com</a>></span> wrote:<br />
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Hi Bryan,</div>
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Looking over the recent program announcement has me really concerned. This is going to really hurt a lot of contractors and homeowners - and the program overall. </div>
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<span style="font-weight: bold;"><span style="color: #006600;"><u>THE PROBLEM OF ACCURATE MODELS WITH 1.01 Savings Investment Ratio MINIMUMS</u>:</span></span></div>
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You are now telling <b>everyone </b>to do very accurate audit modelling. Building accurate models means all contractors will now find themselves the boat we've always been in, very few viable jobs, and even fewer truly comprehensive jobs that can go through the program. <b>I think this will further marginalize HPwES, which is devastating for me because I feel at it's foundation this program is sheer brilliance.</b> This current path is like a farmer who's diligently fertilized and planted, then opting to only water every 10th row. If you send people to homes and they have fewer and fewer program opportunities, how long do you have a program? <b> This program needs more opportunity, not less! </b></div>
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<b>I know this because our approach from the start has been accurate modelling, thoughtful collaborative design, then delivery of recommendations. </b>That approach means higher contractor audit cost and fewer projects that meet SIR. I haven't done the exact numbers, but in our first 50 audits roughly 45 were on natural gas and fewer then a handful of those had a viable project, much less a comprehensive one. </div>
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I was hoping CSG would help me convey this problem to you, but after many much cajoling and many promises to review and confirm our models were accurate, Earl Hicks abandoned me. Otherwise I would have been having this conversation with you 6 months ago and maybe helped you avoid the problems you are now about to face. </div>
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<b><span style="color: #006600;"><u>PEOPLE NEED TO HAVE INCENTIVE</u>: </span></b></div>
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Seems incentive has recently been completely overlooked. The commissioned salesperson is your front line and they need to pay bills like everyone else. With all the uncertainty in making a sale, having confidence in the program that takes you there is really important. This program change takes the salesperson from; "<b>Crap, how do I get this contract to pass</b>" to <b>"Crap, I've gotta go tell the homeowner this job doesn't qualify </b>(and now I won't be paid for all my time)." This takes the program from sometimes marginalized to almost always marginalized for even the most passionate.</div>
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Many contractors look at this program as JAST (Just Another Sales Tool). They go to the home, most often sell solutions at that initial visit, then go to the office and attempt to get the model to pass. Implicit in this path is a fair number of inaccurate models and a fair amount of wasted effort and frustration. It's an absurd process, but these guys don't have the luxury of <b>not </b>selling "because the model is not accurate" or because the program's design is fatally corrupted. They invested the time and need to earn a living, so they do whatever it takes to get the job through. <b>Designing comprehensive work should be the goal, but it's been supplanted by SIR and churning out proposals.</b> </div>
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<span style="color: #006600;"><br /><b><u>THERE IS NO TRANSPARENCY OR ACCOUNTABILITY FOR ENERGY RESULTS IN THIS PROGRAM</u>:</b></span></div>
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<b>For the program to really work, that must change. </b>Since homeowners mostly don't track, complaints about failure to meet annual savings projections are very unlikely. Contractors and homeowners need to easily see what was promised and what actually occurred. Furthermore, the rare complaint about energy results must not be met with <b>facetious defenses</b>; telling homeowners "you must have changed your behavior" or some other completely false misdirection. Currently this "go away" response has implicit blessing from the program! </div>
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<b>When this work is done comprehensively we change peoples homes from Hummers to Prius. </b> NYSERDA and BPI made this possible. My tracking has no statistical significance but anecdotal evidence suggests behavior has about as much impact as setting cruise at 60 vs 65. The difference between 50% savings and 55% savings if you are LUCKY. Not nothing, but immaterial on relative terms (and with modern equipment, human interaction with equipment settings may actually INCREASE consumption.) Without tracking on a larger scale a huge opportunity for detecting these patterns and learning from success and failure is lost. </div>
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Another reason to track - I frequently see non-program contractor insulation work on incredibly leaky houses with high bills. Results tracking raises the bar for everyone. Transparently "Poor Results" provides powerful counterbalance to "low bid" work. </div>
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<b><span style="color: #006600;"><u>The way forward</u>:</span></b></div>
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<i><b>Track and share with contractors the results of their work (BTU promised to BTU saved ratio). </b></i></div>
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<i><b>Tell contractors that that eventually this information will be used for marketing and for program awards, including $ for ratios above 1:1. </b></i></div>
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<i><b>Over night the orientation towards this work will change from "get the job sold and done as cheaply and quickly as possible" to "get the job done as energy effectively as possible". </b></i></div>
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<i><b>Contractors will compete for results. </b></i></div>
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<i><b>Main focus will shift from cost to quality.</b></i></div>
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<i><b>Everyone wins.</b></i></div>
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<b><i><span style="color: #006600;">This program should want every contractor in, every job in. Every energy savings opportunity incentivized, not discouraged. Every sales person excited about and selling this program, not terrified of it. </span></i></b><br />
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It would be nice if changes were made with consideration for contractors for a change. In contractors defense, without tracking how can they know whether results match promise or not? Since almost nobody tracks results everyone is completely disconnected from whether results match promise, or if any savings even occur. Contractors know how to analyze sales numbers and could easily do the same for energy numbers, but they aren't given these numbers to look at. Without tracking they don't see patterns, they don't learn what actually saves energy. They can not be scapegoat here, they've done what they were told in the hope of selling enough work to get a paycheck on Friday. </div>
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For this change to be fair to the contractor, it must not be implemented over night. If there are significant failures the contractors should be given time to understand and correct rather than having a switch flipped, after all they had no feedback loop from the program regarding energy results. A reasonable Gantt Chart needs to be mapped and communicated so contractors can understand current performance, understand time frames, re-orient priorities given this new information, see improvement, and be prepared. </div>
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<b><span style="color: #006600;">For all this to occur, program incentives need to be based upon energy savings, not project cost. </span> The program shouldn't tell homeowners what is a good investment, that's really for the individual homeowner to decide. The program would tell how much it will participate in each homeowner's project. This needs to be based upon the project energy savings, not total project cost. This simple change to incentives could make all projects meet TRC, even jobs with windows, and rejuvenate enthusiasm for the program for everyone. </b></div>
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Ted Kidd<br />
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<a href="http://eesny.com/" target="_blank">Energy Efficiency Specialists</a></div>
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<a href="tel:%28585%29%20205-8674" target="_blank" value="+15852058674">(585) 205-8674</a> Office</div>
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<span style="background-color: #99ff99; font-family: 'comic sans ms', sans-serif;">Learning from our mistakes means admitting to them first. It takes all of us to build a better system.</span> - Dr. Sanjay Gupta</div>
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<b><span style="font-family: Tahoma, sans-serif; font-size: 10pt;">From:</span></b><span style="font-family: Tahoma, sans-serif; font-size: 10pt;"> Ted Kidd [mailto:<a href="mailto:tedkidd@eesny.com" target="_blank">tedkidd@eesny.com</a>]<br /><b>Sent:</b> Wednesday, March 21, 2012 9:51 AM<br /><b>To:</b> Bryan D. Henderson<br /><b>Cc:</b> <a href="mailto:gthomas@psdconsulting.com" target="_blank">gthomas@psdconsulting.com</a><br /><b>Subject:</b> Re: TREAT troubles?</span><u></u><u></u></div>
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Hi Bryan,<u></u><u></u></div>
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PLEASE GET THEM ALL IN. <u></u><u></u></div>
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I keep running across Insulation and "air sealing" work that is visually appealing, it seems beautifully done. When I inspect the energy bills I scratch my head. Then when I run my fan and inspect the work these jobs are no longer visually appealing, the rim joists and attic crawls are leaky as heck. The boat is sinking faster than the Titanic. <u></u><u></u></div>
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We need a program where the incentive to participate is so great that everyone is IN. A program that spreads building science knowledge virally throughout the trades. A program that will teach these "I've got 30 years experience, I know what I'm doing" guys that the energy results tell a different story, that they've got 1 years experience 30 times. That when it comes to saving energy they are amateurs. We need everyone competing on results, or the cheap guys with ineffective but pretty looking work will win too often. <u></u><u></u></div>
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GET THEM ALL IN. <u></u><u></u></div>
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Instead of a program contractors want to avoid, one that corrupt program guidelines force them to game their one call sold jobs into "getting projects to pass," we need a program that tracks results so contractors understand how well or poorly they really are doing and rise or sink on results. A program that encourages solution sales thoughtful design rather than one call stuff down their throats product sales. <u></u><u></u></div>
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SIR 1.01 is an incredibly corrupting guideline. It forces everyone who wishes to run jobs through the program down a path of no return, particularly if they are using the one-call approach. This PSC requirement has had disastrous consequences, forcing CSG and contractors to go down the path of "just making small tweeks". Well, small tweeks eventually become malignant cancer. <u></u><u></u></div>
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Tracking my project results has proven to me that true TREAT models accurately project saving on comprehensive projects. CSG has so fully committed to the path of abandoning truth in TREAT that modelling no longer has any basis in reality. NYSERDA is somewhat complicit, with the "minimum number of projects" rule. Untrued or otherwise gamed models project savings that have no basis in reality.<u></u><u></u></div>
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I've been struggling to find any natural gas projects with SIR. We need a program that is not exclusionary. A program with energy savings based incentives, not SIR based. PSC wants to pay for energy savings, make the program energy savings based, not project cost based.<u></u><u></u></div>
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As I said all last year, bad modelling with be catastrophic as On-Bill progresses. Now we find ourselves at a crossroads of conscience. Very soon your opportunity to take a stand on this corruption will be behind you. At some point not taking a clear position against this evil will be the same as sanctioning it, something that can not be explained away. <u></u><u></u></div>
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Regards,<u></u><u></u></div>
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Ted Kidd<u></u><u></u></div>
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<a href="http://eesny.com/" target="_blank">Energy Efficiency Specialists</a><u></u><u></u></div>
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<a href="tel:%28585%29%20205-8674" target="_blank">(585) 205-8674</a> Office<u></u><u></u></div>
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<a href="http://www.quotationspage.com/quote/2298.html" target="_blank" title="Click for further information about this quotation"><span style="background-attachment: initial; background-clip: initial; background-color: #99ff99; background-image: initial; background-origin: initial; color: #454545; font-family: Arial, sans-serif; text-decoration: none;">All that is necessary for the triumph of evil is that good men do nothing.</span></a> - Edmund Burke<u></u><u></u></div>
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On Fri, Feb 24, 2012 at 11:58 AM, Ted Kidd <<a href="mailto:tedkidd@eesny.com" target="_blank">tedkidd@eesny.com</a>> wrote:<u></u><u></u></div>
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Hi Bryan,<u></u><u></u></div>
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Are my prognostications of the last year and a half coming to fruition? It breaks my heart, foundationally this is such a fantastic program and On-Bill could have made it amazing. The tremendous goodwill value built over 10 years seems to be quickly depleting. The way things are now we see brute force corrections which then have some fairly catastrophic unintended consequences that also require ever more extreme brute force corrections and all of it catastrophically impacts confidence. <u></u><u></u></div>
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Wouldn't it be nice if brute force corrections were unnecessary, if this program were naturally self-correcting? Wouldn't it be nice if the consumers and contractors lined up to participate? Wouldn't it be nice if everyone could have confidence that the savings modeled would hold up? Wouldn't it be nice if every contractor wanted to run every job through the program? Wouldn't it be nice if the cost of administering each job was cut by a factor of 4 and if incentives were based upon energy saved? <u></u><u></u></div>
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I firmly believe it is possible. But first it requires a level of accountability that will only occur when the program reorients around transparency of results. This is a tremendous opportunity for NYSERDA. <u></u><u></u></div>
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Results have to be the natural counterbalance. TREAT is a fantastic tool. Since 2008 I've repeatedly said TREAT is the KEY, and I still believe that. I've tracked my results and having them is very meaningful as it provides confidence and credibility, but getting them is very onerous. I want you to track them for me, to share the results with me and with the world. I want them to prove my successes and help me correct and avoid mistakes. Mostly I want pressure on results, which can't happen if nobody knows the results. <u></u><u></u></div>
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I suspect all the contractors would like to know how accurate their projections turn out to be (have any asked?). If given fair warning, data, and time to adjust, they too will come to see that they want their results shared. Think of what an amazing service this would provide to contractors and consumers. A very compelling measure of confidence and truth, and removal of a huge barrier to action by homeowners - the barrier of uncertainty. <u></u><u></u></div>
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Once contractors can see that their results can be a marketing tool or an anchor, they will focus on providing the best results possible and all your current nightmares are solved. New contractors will pay their first born to get into the program and all jobs will be self-approving. Existing contractors will focus on quality over short term profitability when the two conflict. It's so much easier to sell truth than to sell hype. <u></u><u></u></div>
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Technological advances make results transparency a forgone conclusion. If NYSERDA is not involved in bringing it you won't have control over how the results are presented. That has me very worried, I can't imagine it doesn't worry you. <u></u><u></u></div>
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If you are beginning to see some TREAT complaints from contractors this re-alignment should correct that too, I have some short term ideas for the interim. <br />
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Ted Kidd<u></u><u></u></div>
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<a href="http://eesny.com/" target="_blank">Energy Efficiency Specialists</a><u></u><u></u></div>
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<a href="tel:%28585%29%20205-8674" target="_blank">(585) 205-8674</a> Office<u></u><u></u></div>
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<a href="http://www.quotationspage.com/quote/2298.html" target="_blank" title="Click for further information about this quotation"><span style="background-attachment: initial; background-clip: initial; background-color: #99ff99; background-image: initial; background-origin: initial; color: #454545; font-family: Arial, sans-serif; text-decoration: none;">All that is necessary for the triumph of evil is that good men do nothing.</span></a> - Edmund Burke<u></u><u></u></div>
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<br class="Apple-interchange-newline" />Ted Kiddhttp://www.blogger.com/profile/14283149266019846669noreply@blogger.com0tag:blogger.com,1999:blog-699531228844218731.post-69711775850636706712012-03-31T15:07:00.000-04:002012-04-02T11:50:01.141-04:00Great Webinar! Results tracking next please? 3/31 (Webinar response, and whole thread)<span style="font-family: arial; font-size: x-small;">From: </span><b class="gmail_sendername" style="font-family: arial; font-size: small;">Ted Kidd</b><span style="font-family: arial; font-size: x-small;"> </span><span dir="ltr" style="font-family: arial; font-size: x-small;"><tedkidd@eesny.com></span><br style="font-family: arial; font-size: small;" /><span style="font-family: arial; font-size: x-small;">Date: Sat, Mar 31, 2012 at 12:07 PM</span><br style="font-family: arial; font-size: small;" /><span style="font-family: arial; font-size: x-small;">Subject: Great Webinar! Results tracking next please?</span><br style="font-family: arial; font-size: small;" /><span style="font-family: arial; font-size: x-small;">To: John Ahearn <mja@nyserda.org></span><br />
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On Fri, Mar 30, 2012 at 3:35 PM, John Ahearn <span dir="ltr"><<a href="mailto:mja@nyserda.org" target="_blank">mja@nyserda.org</a>></span> <wbr></wbr>wrote:</blockquote>
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<span style="color: navy; font-family: Arial;">Ted,</span><br /><div>
<span style="color: navy; font-family: Arial;">It appears at this end that you were successful in logging. I hope the presentation provides useful information.</span></div>
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<br style="font-family: arial; font-size: small;" /><span style="font-family: arial; font-size: x-small;">Yes Mr. Ahearn, thanks! Thank you also to Andy Kambourelis and Cara Tromans of CSG, both of whom responded nearly instantly with a path to access. </span><br style="font-family: arial; font-size: small;" /><br style="font-family: arial; font-size: small;" /><b style="font-family: arial; font-size: small;">And thank all of you at NYSERDA for proving you are very willing to listen, are light on your feet, and can drive change quickly.</b><span style="font-family: arial; font-size: x-small;"> I think you've restored hope for a lot of people that this program can be put back on the tracks. Your poll indicates changing the program to results based incentives is much more than an idea, it's a distinct possibility. SIR Cliff can go away. I hope you are being flooded with grateful and supportive e-mails. </span><br style="font-family: arial; font-size: small;" /><br style="font-family: arial; font-size: small;" /><br style="font-family: arial; font-size: small;" /><span style="font-family: arial; font-size: x-small;">Not discussed was the critical next step; </span><b style="font-family: arial; font-size: small;"><u><i>Results Tracking:</i></u></b><br style="font-family: arial; font-size: small;" /><br style="font-family: arial; font-size: small;" /><span style="font-family: arial; font-size: x-small;">Almost anything can be distilled down to a present value equation, and we need to do that with our program. We provide a financial vehicle. Like an annuity, we take present dollars and sell the promise of a future payment stream. Instead of providing cash, we provide a reduction in future energy liability which is converted to cash. Now, the buyer can set return expectation. Next we need to know that the promised expectation can be met. </span><br style="font-family: arial; font-size: small;" /><br style="font-family: arial; font-size: small;" /><span style="font-family: arial; font-size: x-small;">To convert this program we need to know our results. </span><br style="font-family: arial; font-size: small;" /><br style="font-family: arial; font-size: small;" /><span style="font-family: arial; font-size: x-small;">We promise savings, but I haven't found anybody comparing actual savings to promised savings. I believe this is called "Realization Rate". There are a lot of reasons tracking doesn't occur (fear, complexity and lack of transparency from utilities...), but the primary reason contractors don't do it is it takes a lot of unreimbursed effort and takes them down what may be a no-win path full of land mines. </span><br style="font-family: arial; font-size: small;" /><br style="font-family: arial; font-size: small;" /><span style="font-family: arial; font-size: x-small;">I have tracked. It is a </span><b style="font-family: arial; font-size: small;">lot </b><span style="font-family: arial; font-size: x-small;">of work with no revenue, and the distinct possibility of creating a pissed off customer if results are poor. I've been lucky, but one pissed off customer and I might abandon tracking forever.</span><br style="font-family: arial; font-size: small;" /><br style="font-family: arial; font-size: small;" /><span style="font-family: arial; font-size: x-small;">Without this critical piece of information, how can we honestly tell people how close their savings will be to the model? Without confirmation, how can we defend the argument that this is a bunch of false promise? If an insurance company took $10,000 in exchange for $50 a month for life, then only provided $15, there would be big trouble. Credibility of the industry would quickly drop to that of used car sales. Window sales. Furnace sales. </span><br style="font-family: arial; font-size: small;" /><br style="font-family: arial; font-size: small;" /><span style="font-family: arial; font-size: x-small;">What will really make us different from "</span><i style="font-family: arial; font-size: small;">Joe HVAC - Guy with Van, 12 pack, and Dog</i><span style="font-family: arial; font-size: x-small;">" is our ability to deliver on promise, and prove it. </span><br style="font-family: arial; font-size: small;" /><br style="font-family: arial; font-size: small;" /><span style="font-family: arial; font-size: x-small;">Proof is the tool to completely marginalize Joe and his "got a great deal on a furnace that 'fell' off the back of a truck" low price approach. But without proof we are doing little more than selling the same sizzle Joe is. The most convincing pitch wins. With proof we provide steak </span><i style="font-family: arial; font-size: small;"><b>and </b></i><span style="font-family: arial; font-size: x-small;">sizzle. </span><br style="font-family: arial; font-size: small;" /><br style="font-family: arial; font-size: small;" /><span style="font-family: arial; font-size: x-small;">This, clearly, can not happen as quickly as changing program incentive from 10% to savings based. But let's start building a thoughtful critical path now? Transparency is coming. A reactive response to transparency is likely to be very unpleasant, so let's be proactive. </span><br style="font-family: arial; font-size: small;" /><br style="font-family: arial; font-size: small;" /><b style="font-family: arial; font-size: small;">The first step is sharing with contractors their realization rate, and that of the overall program. </b><span style="font-family: arial; font-size: x-small;"> From that we can all learn and begin to set goals. We can work on improving delivery together, rather than backing into accuracy with ever more onerous bureaucratic hurdles. </span><br style="font-family: arial; font-size: small;" /><br style="font-family: arial; font-size: small;" /><span style="font-family: arial; font-size: x-small;">If contractors have poor realization rates,</span><b style="font-family: arial; font-size: small;"> please share that with them! </b><span style="font-family: arial; font-size: x-small;">You'll be amazed how quickly they fix it. If Hal Smith's realization rate is under 1 he won't be happy, if it is below average he won't stand for it. I have $1000 that says it'll be above current average in six months. He won't sleep until he's above "average," and he will work diligently to reach 1. Give him his results and see. </span><br style="font-family: arial; font-size: small;" /><br style="font-family: arial; font-size: small;" /><span style="font-family: arial; font-size: x-small;">Change the playing field so we compete for results. On this field everyone wins (except the energy companies and Joe). </span><br style="font-family: arial; font-size: small;" /><br style="font-family: arial; font-size: small;" /><span style="font-family: arial; font-size: x-small;">Thank you for being so responsive, keep up the good work!</span><br style="font-family: arial; font-size: small;" /><br style="font-family: arial; font-size: small;" /><span style="font-family: arial; font-size: x-small;">Very gratefully yours,</span><br style="font-family: arial; font-size: small;" /><span style="font-family: arial; font-size: x-small;">Ted Kidd</span><br style="font-family: arial; font-size: small;" /><a href="http://eesny.com/" style="font-family: arial; font-size: small;" target="_blank">Energy Efficiency Specialists</a><br style="font-family: arial; font-size: small;" /><a href="tel:%28585%29%20205-8674" style="font-family: arial; font-size: small;" target="_blank" value="+15852058674">(585) 205-8674</a><span style="font-family: arial; font-size: x-small;"> Office</span><br style="font-family: arial; font-size: small;" /><br style="font-family: arial; font-size: small;" /><span style="background-color: #99ff99; font-family: 'comic sans ms', sans-serif; font-size: x-small;">Learning from our mistakes means admitting to them first. It takes all of us to build a better system.</span><span style="font-family: arial; font-size: x-small;"> - Dr. Sanjay Gupta</span>
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On Fri, Mar 30, 2012 at 3:21 PM, Ted Kidd <span dir="ltr"><<a href="mailto:tedkidd@eesny.com" target="_blank">tedkidd@eesny.com</a>></span> wrote:<br /><blockquote class="gmail_quote" style="border-left-color: rgb(204, 204, 204); border-left-style: solid; border-left-width: 1px; margin-bottom: 0px; margin-left: 0.8ex; margin-right: 0px; margin-top: 0px; padding-left: 1ex;">
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(At 2:30 I attempted to gain access to the 3pm webinar. Apparently I have a bad registration number. On 3 different browsers I get "Webinar Unavailable", curious.) </div>
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I think it's fair to say;<i> ‘290 other contractors are doing great with it’</i> has been proven false, that '<i>everyone else doesn’t have a problem with it, what is wrong with you</i>' has been shown to be the words of a cruel partner. To those who have replied, thank you for proving this to me and to everyone.</div>
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These are the things we've been hearing sir. I think you may also have been led to believe the same falsehood. I hope you are beginning to see a different picture now. </div>
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It was not my intent to create a stir without offering solutions: </div>
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<b>Currently the program pays a percentage of total job. I think this is the broken piece. </b> A $10,000 job might pass SIR if the price were $8000, problem is we can't perform $10,000 jobs for $8000 and stay in business long. </div>
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<b>PSC wants to pay for energy reduction. </b> If you think about it, they have a number they are willing to pay for every job. That amount occurs at the point that job hits 1.01 SIR. </div>
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<b>Why not make incentive based upon the amount that the PSC feels each individual job is worth, let the homeowner pay the rest? </b>Stop backing into things, come straight at it. Get the windows and water heaters back in, simplify for us sales people so we can explain it to the homeowner again. </div>
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<span style="font-family: 'comic sans ms', sans-serif;">$10,000 job doesn't make 1.01. At $8000 it does. </span></div>
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<span style="font-family: 'comic sans ms', sans-serif;">This means the homeowner incentive is either $800, (or $4000 for 50/50). <b>PAY THAT! </b> Let the homeowner finance the remaining $9200 (or $6000 for 50/50). </span></div>
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<span style="font-family: 'comic sans ms', sans-serif;">With this approach NYSERDA/PSC pays for the value of the energy reduction they see for every job. Every audit becomes opportunity for sales without having to game models. Many of the current painful contortionist job sales and approval activities go away. </span></div>
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Isn't this almost the same perspective On-Bill is taking, allowing the difference to come from "Off-Bill"?</div>
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I know simple doesn't mean easy. Changing core approach to incentive will be hard, and the prospect out the other side of less bureaucracy may not appeal to some in power. But for us this approach does mean opportunity at almost EVERY AUDIT. </div>
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It means opportunity without having to game energy models. It would hyper-simplify approval, as nearly every job qualifies, just like before March 31, 2011. The program can again apply pressure to run all jobs through it, which I see as critically important program feature removed when "SIR Cliff" was implemented. </div>
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QC cost and complexity could be dramatically reduced. Sampling of energy savings proves accuracy. (Isn't NYSERDA sampling energy savings anyway?) Create incentive for excellence, bonus contractors based upon their savings realization rates. </div>
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A friend sent this:</div>
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<span style="color: #006600; font-family: arial, helvetica, sans-serif; font-size: xx-small;"><i>I especially like your arguments about applying incentive to the energy savings and not holding the retrofit companies to both SIR and realization for the incentives. <br /><br />I like your thoughts about providing incentive that matches to the trued model energy savings (and have the homeowner handle the rest of the cost - I can deal with a $5000 expense rather than $20,000 if I know the other $15,000 will be accurately accommodated by the work being done. <br /><br />This has got to be the answer - figure the energy savings based on the work scope and determine how that can be handled with On-Bill financing and then leave the rest to the homeowner. I think that this approach will get the contractors all back on track to be more supportive of the whole process - and it will be the most effective at reducing the fossil fuel energy usage.<br /><br />I really do think that getting the program to the essence of the last paragraph is the key - it is critical to the program. Without it, the construction companies are just pawns - mice on a treadmill - trying to survive from job to job.</i></span><div>
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With savings based incentives the program returns to it's goal of market transformation and reducing energy use. Sales people can again present the program to homeowners with enthusiasm and gusto! Instead of struggling with model uploads, contractors can get back to work. We can shift from just trying to survive, to prospering. </div>
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Otherwise this program will continue evolving down the path of: "I'll take $250 to have a seat at the kitchen table, and I'm happy to sell the RG&E rebate". I don't think this path leads to high realization rates or long term success for anybody. </div>
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<br clear="all" />Sincerely,</div>
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Ted Kidd<div>
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P.s.: Damian's suggestion about moving this to a blog seems very pertinent at this point. I've posted this stuff at <a href="http://eesny.blogspot.com/" target="_blank">http://eesny.blogspot.com/</a> if anyone wants a reference or to comment.<br /><br /><br /><div class="gmail_quote">
On Wed, Mar 28, 2012 at 9:34 AM, Ted Kidd <span dir="ltr"><<a href="mailto:tedkidd@eesny.com" target="_blank">tedkidd@eesny.com</a>></span> wrote:<br /><blockquote class="gmail_quote" style="border-left-color: rgb(204, 204, 204); border-left-style: solid; border-left-width: 1px; margin-bottom: 0px; margin-left: 0.8ex; margin-right: 0px; margin-top: 0px; padding-left: 1ex;">
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<span style="font-family: 'comic sans ms', sans-serif;">Wow, before my reply I would again like to thank everyone for all the private notes of support! </span><div>
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<span style="font-family: 'comic sans ms', sans-serif;">SIDE NOTE: I do not work for Damian, complaining to him or asking him to attempt to shut me up is not fair to him. Also, I intend to advocate for the interests of all homeowners and all contractors, not a select few. For inclusiveness, not exclusivity. Reducing barriers to entry, not increasing them. </span></div>
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<span style="font-family: 'comic sans ms', sans-serif;">I apologize to anyone who is receiving these messages who would rather not get them. Please, anyone who wants off let me know and I will pull your name out. </span></div>
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Dear Mr. Ahearn,</div>
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Thank you for your input. </div>
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NYSERDA now intends to require truing of models. It has been my experience building energy models, before truing to consumption they overstate costs. This is true of every modelling software I've used. With some homes it may be by a factor of as much as 100%. Please think a moment about what this means: </div>
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Your house annual energy spend is $2000. The untrued model says $4000. Improvements reduce consumption by 25% with 1.15 SIR.</div>
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Untrued, $1000 annual savings means your job get's SIR. Trued the savings is $500 and it does not get SIR. </div>
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Part of Energy Efficiency Specialists mission is accurate energy modelling. We have taken the further truing step of comparing projections to results, so we have very high certainty that there is little room for change in our approach if we hope to maintain a grip on reality. <b>We have been seeing very few projects with SIR 1.01 or better, and I can document months worth of conversations with CSG about this. </b> We have been seeing a lot of projects with .7 and lower. </div>
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Pulling 10% incentive off the top will not fix SIR shortfall on trued models. Would you instruct us to do whatever it takes to get jobs approved? Truing models and fuel cost is going to mean <b>even fewer viable opportunities</b>. Over the last year have you not been seeing (at least suspecting) insulation and blower door games? Don't you understand why that was happening? </div>
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<b>Please do not force contractors to true models unless you take away 1.01 SIR.</b> Many have had one foot out the door since last March. Yes I'm an advocate for truth in energy savings, but the path requires more participation, not less. It requires a program with competitive advantage, not a net add to overhead. Benefits of the program from homeowner perspective still requires competitive price. If you continue to make significant adds to contractor overhead, you need to pay for them so price remains competitive. </div>
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<b>Is it true that historically this program has a realization rate of 20%? </b>If that's the case, when contractors start doing accurate modelling what do you think will happen to their SIR's? Do you not see the direct correlation between savings realization and SIR? </div>
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These contortions and convolutions simply add more layers of computer confusion, administration, and are an unfortunate denial of the truth. These guys are playing by ground-rules you created. When you make a mistake, clubbing them with it is terribly unfair. Don't you see these people are bleeding to death? That it's the program's fault? We understand you have issues with the PSC, but you are our conduit. You are our partner. To correct a mistake you must first be willing to admit a mistake has been made. </div>
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I'm sorry nobody has had the gumption to tell you this sir. Clearly you have not been getting the true picture. Your son works at CSG, correct? Bypass the chain of command filters, they are not working. Talk to him! </div>
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<b>Speaking of CSG, apparently the contract for implementer is renewing? Who is involved in that decision? </b> Since they work with us, and are supposedly our partner, shouldn't we be? Has NYSERDA taken a poll of all contractors to see if we would like a change of implementer? Is NYSERDA interested in our opinion? </div>
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Truing models and fuel cost is going to mean <b>even fewer viable opportunities</b>. SIR based on net consumer investment instead of total investment doesn't game the numbers enough the other way. We need a program that redirects focus on savings delivered. On Bill will fail without it. Why hasn't your implementer made this clear to you? </div>
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This path is failing. This next tweak doesn't staunch the bleeding, it makes things worse. True models, true energy cost, and SIR requirements are completely incompatible. </div>
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Let's think about this program. Don't we all want opportunity at EVERY AUDIT. Want comprehensive projects to go through the program and get all the wonderful benefits and protections the program used to provide. I want that for every project. </div>
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This is a sales process! "Give us an opportunity at every home, or please just go away." "I wish this program would hurry up and fail." "homeowners complain about crappy walk through audits". Sales guys are fed up, and the program is really quickly losing goodwill now.</div>
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<span style="color: #006600;">SIR based on total project cost, or on <b>consumer investment</b> for a program that supposedly needs to justify <b>public </b>investment is absurd. </span> What conceit causes anyone who hasn't seen the home and talked to the homeowner to deign to know better how the homeowner should invest their own money in their own homes? See the flaw in this thinking? Doesn't this seem to treat the homeowner with abject paternalistic condescension? Besides, isn't the investment made by NYSERDA the investment NYSERDA should be worried about? Shouldn't it just be the public side of the equation that should be concerned with being a "good" investment energy wise? </div>
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<b>Shouldn't SIR be applied to the incentive portion rather then the homeowner portion? If you show up with 10%, worry about your 10%! Let me worry about what my house needs!! </b></div>
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Following this evolutionary path wouldn't we eventually arrive at the logical conclusion of creating incentive based upon energy savings? Imagine how little administration that would entail, not just on the contractor side but the program administration side as well. Incentive based not upon total investment, but upon energy saved. <b>Let the homeowner decide what capital, comfort, health, safety, durability, and investment return they want from improvements they make to THEIR homes. Give them incentive for the energy savings, not the investment return. </b> </div>
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<b>Every project AUTOMATICALLY approved - reinvigorate the interest of the sales force! </b></div>
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Thank you for coming to the conversation. Please fix this sir, it's time to fix this. Everyone is fed up. The answer is not in holding another webinar. There is a huge opportunity here, the time to act is now. </div>
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Ted Kidd<div>
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<a href="http://www.quotationspage.com/quote/2298.html" target="_blank" title="Click for further information about this quotation"><span style="background-color: #99ff99; font-family: 'comic sans ms', sans-serif;">All that is necessary for the triumph of evil is that good men do nothing</span><span style="background-color: #99ff99; font-family: 'comic sans ms', sans-serif;">.</span></a> - Edmund Burke</div>
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On Mon, Mar 26, 2012 at 6:17 PM, John Ahearn <span dir="ltr"><<a href="mailto:mja@nyserda.org" target="_blank">mja@nyserda.org</a>></span> wrote:<br /><blockquote class="gmail_quote" style="border-left-color: rgb(204, 204, 204); border-left-style: solid; border-left-width: 1px; margin-bottom: 0px; margin-left: 0.8ex; margin-right: 0px; margin-top: 0px; padding-left: 1ex;">
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<span style="color: navy; font-family: Arial;">Dear NYHPwES Contractors,<br />I had hoped that the Program Announcement that we sent out last week would address many of the concerns with SIR. The new guidelines apply SIR only on financing and net of incentives. There is a webinar scheduled for Friday. Please participate in the webinar. Know that I am committed to making HP work for our contractors.<br />John Ahearn</span></div>
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<span style="font-family: Tahoma;"><b>From</b>: Ted Kidd <<a href="mailto:tedkidd@eesny.com" target="_blank">tedkidd@eesny.com</a>><br /><b>To</b>: Bryan D. Henderson; John Ahearn<br /><b>(cc'd contractor list)<br />Sent</b>: Mon Mar 26 17:25:30 2012<br /><b>Subject</b>: Re: "Cost Effectiveness" requirements...? - Thanks for the support! </span></div>
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I was surprised to get such positive response in support of the e-mail I sent Friday. Below are some written responses. I've removed most of the names and retained either a first or last initial. </div>
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I suspect a lot of you are concerned about retribution and are holding back. If anyone else would like to comment anonymously through me, please feel free. I will assume you wish to remain anonymous unless stated otherwise:</div>
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Ted I know we haven't met but thank you for advocating on behalf of all program contractors and our customers. Sincerely, N</blockquote>
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Agreed...thank you. Green Jobs Green New York right? I wish the program wasn't so political. They lose sight of why we do this in the first place... A</blockquote>
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I think you are clear, honest and to the point here. This is something they need to take to heart and discuss when considering how they move forward. P</blockquote>
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Ted, you are right on target!! H</blockquote>
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<span style="font-family: Calibri;">Ted- You make some very good points of course. I think the HPwES program has gone off the rails since last year's changes which made the RG&E rebate the easiest choice for our</span><span style="font-family: Calibri;"> HVAC guys to sell. Not being able to tell the customer with certainty that they can expect the NYSERDA 10% rebate killed the program where the dollars would be about equal.</span><br /><span style="font-family: Calibri;"> N</span><span style="font-family: Calibri;">ow TRC has complicated the Insulation and Air Sealing side to the point where I don't talk about any rebate up front. I find the I &AS jobs I have been selling address a specific</span> <span style="font-family: Calibri;">problem, like moisture in the attic space, or is embraced because of comfort issues and not because of a rebate. Small projects are not worth the effort to get CSG approval.</span><br /> <span style="font-family: Calibri;">I have had very positive feedback on the I & AS projects we did last year and that is gratifing, so I see it works on a qualitative level. But the true savings are difficult to know </span> <span style="font-family: Calibri;">especially from such a small sample, so you are right in requesting quantitative results on a state wide basis, and additionally at what administrative cost!! </span><br /> <span style="font-family: Calibri;">I feel that TREAT is outdated, that the CHA report is a bad report to give to the customer and that while the intent of HPwES is worthwhile, the implementation is pretty broken.</span><br /><span style="font-family: Calibri;"> </span> <span style="font-family: Calibri;">There seems to be a lot of people that share this belief but I don't see much being done about it.</span> <span style="font-family: Calibri;">I expect the sharp decline in the number of projects will draw attention, but too late.</span><br /><br /> <span style="font-family: Calibri;">I will be heading down to the ACI meetings in Baltimore tomorrow. I hope to come back with some ideas on what direction this whole industry may be taking.</span> <span style="font-family: Calibri;">B</span> </blockquote>
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<span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">Ted,</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">Thank you so much for your response to NYSERDA.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">I too have been trying hard to be heard, about all the things you have expressed.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">I managed to get NYSERDA to increase the loan pre-approval time from 60 to 180 days.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">A 60 day period was not working with the process, and my customers were having to re-qualify, sometimes backing out of the sale.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">Yesterday I gave my</span> <span style="color: red; font-family: Calibri, sans-serif; font-size: 15px;">REDACTED</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;"> notice to </span><span style="font-family: Calibri, sans-serif; font-size: 11pt;"><span style="color: red;">REDACTED</span></span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">I am a hard working, valued member of our company, but working within the HPwES program, is setting your business up for failure.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">I believe customer service is the key to good business, but the program create obstacles, that leave your company with deep wounds.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">I wish you the best, and know that you are not alone.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">Sincerely, </span>M</blockquote>
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M followed up with:</div>
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<br />Date: Mon, Mar 26, 2012 at 3:18 PM<br />Subject: a shame<br />To: Ted Kidd <<a href="mailto:tedkidd@eesny.com" target="_blank">tedkidd@eesny.com</a>><br /><div lang="EN-US" link="blue" vlink="purple">
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Ted,<u></u><u></u></div>
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I give you permission to use my name for your correspondence with NYSERDA.<u></u><u></u></div>
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Ultimately my frustration with the HPwES program, has led me to resign from GHA, as Residential Manager.<u></u><u></u></div>
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The program currently sets up contractors for failure.<u></u><u></u></div>
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I am unable to provide good customer service, and projects are unable to be completed in a timely manner, due to the programs restrictions. To be successful, we rely on customer referrals. With every project falling into conflict, my customers are exhausted by the end, and are unlikely to refer our business. Our association with the HPwES program has put our reputation at great risk.<u></u><u></u></div>
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<span style="font-family: 'Lucida Calligraphy'; font-size: 14pt;">Maggie<u></u><u></u></span></div>
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<span style="font-family: 'Baskerville Old Face', serif; font-size: 14pt;">Maggie Maurer<u></u><u></u></span></div>
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<span style="font-family: 'Baskerville Old Face', serif; font-size: 14pt;">BPI Certified Building Analyst</span></div>
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After seeing these responses a friend wrote:</div>
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Wow - those are some very powerful statements. I know that you were confident about what you stated, but this type of response has to really validate the accuracy of your data and your note. J</blockquote>
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Another friend wrote: </div>
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Wow, seems there is at least one contractor out there that is very frustrated and has no one to vent too. <br />this would be nice to get out anonymously. </blockquote>
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would be interesting to see what happens. T</blockquote>
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Finally, here is a fairly long one that I chopped more than half out due to length and anonymity:</div>
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<span style="font-family: Calibri; font-size: small;">"Ted, I didn't want to hit reply all for fear of being "black Balled" and having jobs pulled after they were done for the Honeywell nazi's to tear apart like a pack of wolves. I called my CSG rep today and asked him about the cost jobs versus the sir bull crap. he said he did not think there was anything to it, but I am seeing price fixing all over that statement coming down the pipe. it is clear that there is no one at CSG NYSERDA or the PSC that cares one bit about the contractor in the field. </span></div>
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<span style="font-family: Calibri; font-size: small;">...GJNY is a complete bust. I have heard that comfort windows has laid off all but eight employees and is in trouble. Green Homes almost didn't make payroll in the late part of 2011. The free audits are not being policed and there are plenty of "walk through audits" being done and giving the program a bad reputation. <br /> The SIR thing should completely go away entirely. Rate of return is something that almost everyone knows and understands. Let's ask ourselves a questions here on investment, if you get a call for someone that has a comfort isuues why do we need to make it pass any sort of scrutiny from another entity? If the customer is willing to spend the money borrowed or not ... why do we have to beg or worse change something that will get the glorious 1.1 SIR to do the work. </span></div>
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<span style="font-family: Calibri; font-size: small;">...The Green jobs and the changes have put more people out of work and made it more difficult that this needs to be.<br />...I personally belive that they don't want to fix it. The goal for green jobs all along was to put unionized people into the homes to do the work. If they drive the small companies out and there are just a few core companies doing the work it will be easier to make that happen. Don't ask me how that would work but this is what I have been told twice (the unionized part).</span> </div>
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<span style="font-family: Calibri; font-size: small;"></span> There are several things that could fix all of this: </div>
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<span style="font-family: Calibri; font-size: small;">...The SIR thing disappears. </span> </div>
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<span style="font-family: Calibri; font-size: small;">...The customer should be the one to say that they want to spend the money one a give project and not the blessed gods at nyserda and the psc. I think CSG is a puppet right now that is stuck betwwen the contractor and nyserda, i am not defending them just what i think.</span> </div>
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<span style="font-family: Calibri; font-size: small;"> ...There has to my knowledge been no training on what they are really looking for in a treat file. We can be 99% accurate and they will still hold the project up with questions that are so dumb that even typing a repsonse makes one laugh. At the ACI conference in Saratoga at one of the seminars I asked if they could (CSG) put together all of the reasons why a job got rejected for the last month be sent to the contractors in the program. the response was that they don't track it and it would be difficult to do. If they put forth the effort our costs would go down, our jobs would flow faster, CSG would not have the frustration of sending file back and forth for days on end, and holy cow we might make a buck doing it. Again a failure in the system.<br /> ...i would like to have someone at NYSERDA go to a 4500 sq ft house with natural gas for a fuel source do an audit and all of the paperwork associated with that project go back and tell the customer that they can't help. Or better yet have them do all of the paperwork necessary to do a AHP job and see how long it takes them to do, and oh by the way they can't get a pay check until the job is entirely complete.</span><span style="font-family: Calibri; font-size: small;">..The contractor in the field has no help with Treat files, marketing, and for that matter anything besides himself to get through this. Can someone step forward to help?</span><span style="font-family: Calibri; font-size: small;"><br />...There are several more items, but I have been frustrated enough over this whole thing. I am guessing that there are contractors dropping out of this mess left and right. There are also some on the verge of bankruptcy. </span></div>
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<span style="font-family: Calibri; font-size: small;">...They are not looking at the big picture. People who have nothing can get it all, food stamps, HEAP, Empower etc. The people how are struggling to pay there bill and want comfort in there hoem and are willing to pay for that are left out or it takes a god awful long time to get it done. What a sad statement when there are truly millions in the bank of NYSERDA to spend."</span></div>
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When I asked this writer for permission to "Publish" his response, he replied: </div>
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That sounds good. As you can see there is a good man there that has to bail because he can't make a living for his family.</blockquote>
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<span style="color: #222222; font-family: arial, sans-serif;">Folks, lack of guideline clarity, transparency, and arbitrary contractor treatment by CSG carries a huge part in this failure. I think a lot of the troubles with the program track back to bad guidance from </span> from CSG management to CSG staff, and CSG management to NYSERDA. </div>
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<span style="color: #222222; font-family: arial, sans-serif;">Might be nice if we had a new program implementer. </span></div>
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Again, if I can be of assistance or be message conveyance to NYSERDA about CSG or other issues, please don't hesitate to reach out. </div>
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<br clear="all" />Ted Kidd<div>
<a href="http://eesny.com/" target="_blank">Energy Efficiency Specialists</a></div>
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<a href="tel:%28585%29%20205-8674" target="_blank" value="+15852058674">(585) 205-8674</a> Office</div>
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<span style="background-color: #99ff99; font-family: 'comic sans ms', sans-serif;">Learning from our mistakes means admitting to them first. It takes all of us to build a better system.</span> - Dr. Sanjay Gupta</div>
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On Fri, Mar 23, 2012 at 3:58 PM, Ted Kidd <span dir="ltr"><<a href="mailto:tedkidd@eesny.com" target="_blank">tedkidd@eesny.com</a>></span> wrote:<br /><blockquote class="gmail_quote" style="border-left-color: rgb(204, 204, 204); border-left-style: solid; border-left-width: 1px; margin-bottom: 0px; margin-left: 0.8ex; margin-right: 0px; margin-top: 0px; padding-left: 1ex;">
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Hi Bryan,</div>
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Looking over the recent program announcement has me really concerned. This is going to really hurt a lot of contractors and homeowners - and the program overall. </div>
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<span style="font-weight: bold;"><span style="color: #006600;"><u>THE PROBLEM OF ACCURATE MODELS WITH 1.01 Savings Investment Ratio MINIMUMS</u>:</span></span></div>
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You are now telling <b>everyone </b>to do very accurate audit modelling. Building accurate models means all contractors will now find themselves the boat we've always been in, very few viable jobs, and even fewer truly comprehensive jobs that can go through the program. <b>I think this will further marginalize HPwES, which is devastating for me because I feel at it's foundation this program is sheer brilliance.</b> This current path is like a farmer who's diligently fertilized and planted, then opting to only water every 10th row. If you send people to homes and they have fewer and fewer program opportunities, how long do you have a program? <b> This program needs more opportunity, not less! </b></div>
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<b>I know this because our approach from the start has been accurate modelling, thoughtful collaborative design, then delivery of recommendations. </b>That approach means higher contractor audit cost and fewer projects that meet SIR. I haven't done the exact numbers, but in our first 50 audits roughly 45 were on natural gas and fewer then a handful of those had a viable project, much less a comprehensive one. </div>
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I was hoping CSG would help me convey this problem to you, but after many much cajoling and many promises to review and confirm our models were accurate, Earl Hicks abandoned me. Otherwise I would have been having this conversation with you 6 months ago and maybe helped you avoid the problems you are now about to face. </div>
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<b><span style="color: #006600;"><u>PEOPLE NEED TO HAVE INCENTIVE</u>: </span></b></div>
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Seems incentive has recently been completely overlooked. The commissioned salesperson is your front line and they need to pay bills like everyone else. With all the uncertainty in making a sale, having confidence in the program that takes you there is really important. This program change takes the salesperson from; "<b>Crap, how do I get this contract to pass</b>" to <b>"Crap, I've gotta go tell the homeowner this job doesn't qualify </b>(and now I won't be paid for all my time)." This takes the program from sometimes marginalized to almost always marginalized for even the most passionate.</div>
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Many contractors look at this program as JAST (Just Another Sales Tool). They go to the home, most often sell solutions at that initial visit, then go to the office and attempt to get the model to pass. Implicit in this path is a fair number of inaccurate models and a fair amount of wasted effort and frustration. It's an absurd process, but these guys don't have the luxury of <b>not </b>selling "because the model is not accurate" or because the program's design is fatally corrupted. They invested the time and need to earn a living, so they do whatever it takes to get the job through. <b>Designing comprehensive work should be the goal, but it's been supplanted by SIR and churning out proposals.</b> </div>
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<span style="color: #006600;"><br /><b><u>THERE IS NO TRANSPARENCY OR ACCOUNTABILITY FOR ENERGY RESULTS IN THIS PROGRAM</u>:</b></span></div>
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<b>For the program to really work, that must change. </b>Since homeowners mostly don't track, complaints about failure to meet annual savings projections are very unlikely. Contractors and homeowners need to easily see what was promised and what actually occurred. Furthermore, the rare complaint about energy results must not be met with <b>facetious defenses</b>; telling homeowners "you must have changed your behavior" or some other completely false misdirection. Currently this "go away" response has implicit blessing from the program! </div>
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<b>When this work is done comprehensively we change peoples homes from Hummers to Prius. </b> NYSERDA and BPI made this possible. My tracking has no statistical significance but anecdotal evidence suggests behavior has about as much impact as setting cruise at 60 vs 65. The difference between 50% savings and 55% savings if you are LUCKY. Not nothing, but immaterial on relative terms (and with modern equipment, human interaction with equipment settings may actually INCREASE consumption.) Without tracking on a larger scale a huge opportunity for detecting these patterns and learning from success and failure is lost. </div>
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Another reason to track - I frequently see non-program contractor insulation work on incredibly leaky houses with high bills. Results tracking raises the bar for everyone. Transparently "Poor Results" provides powerful counterbalance to "low bid" work. </div>
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<b><span style="color: #006600;"><u>The way forward</u>:</span></b></div>
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<i><b>Track and share with contractors the results of their work (BTU promised to BTU saved ratio). </b></i></div>
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<i><b>Tell contractors that that eventually this information will be used for marketing and for program awards, including $ for ratios above 1:1. </b></i></div>
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<i><b>Over night the orientation towards this work will change from "get the job sold and done as cheaply and quickly as possible" to "get the job done as energy effectively as possible". </b></i></div>
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<i><b>Contractors will compete for results. </b></i></div>
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<i><b>Main focus will shift from cost to quality.</b></i></div>
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<i><b>Everyone wins.</b></i></div>
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<b><i><span style="color: #006600;">This program should want every contractor in, every job in. Every energy savings opportunity incentivized, not discouraged. Every sales person excited about and selling this program, not terrified of it. </span></i></b><br /><div class="gmail_quote">
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It would be nice if changes were made with consideration for contractors for a change. In contractors defense, without tracking how can they know whether results match promise or not? Since almost nobody tracks results everyone is completely disconnected from whether results match promise, or if any savings even occur. Contractors know how to analyze sales numbers and could easily do the same for energy numbers, but they aren't given these numbers to look at. Without tracking they don't see patterns, they don't learn what actually saves energy. They can not be scapegoat here, they've done what they were told in the hope of selling enough work to get a paycheck on Friday. </div>
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For this change to be fair to the contractor, it must not be implemented over night. If there are significant failures the contractors should be given time to understand and correct rather than having a switch flipped, after all they had no feedback loop from the program regarding energy results. A reasonable Gantt Chart needs to be mapped and communicated so contractors can understand current performance, understand time frames, re-orient priorities given this new information, see improvement, and be prepared. </div>
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<b><span style="color: #006600;">For all this to occur, program incentives need to be based upon energy savings, not project cost. </span> The program shouldn't tell homeowners what is a good investment, that's really for the individual homeowner to decide. The program would tell how much it will participate in each homeowner's project. This needs to be based upon the project energy savings, not total project cost. This simple change to incentives could make all projects meet TRC, even jobs with windows, and rejuvenate enthusiasm for the program for everyone. </b></div>
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Best regards,</div>
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<br clear="all" />Ted Kidd<div>
<a href="http://eesny.com/" target="_blank">Energy Efficiency Specialists</a></div>
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<a href="tel:%28585%29%20205-8674" target="_blank" value="+15852058674">(585) 205-8674</a> Office</div>
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<span style="background-color: #99ff99; font-family: 'comic sans ms', sans-serif;">Learning from our mistakes means admitting to them first. It takes all of us to build a better system.</span> - Dr. Sanjay Gupta</div>
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<b><span style="font-family: Tahoma, sans-serif; font-size: 10pt;">From:</span></b><span style="font-family: Tahoma, sans-serif; font-size: 10pt;"> Ted Kidd [mailto:<a href="mailto:tedkidd@eesny.com" target="_blank">tedkidd@eesny.com</a>]<br /><b>Sent:</b> Wednesday, March 21, 2012 9:51 AM<br /><b>To:</b> Bryan D. Henderson<br /><b>Cc:</b> <a href="mailto:gthomas@psdconsulting.com" target="_blank">gthomas@psdconsulting.com</a><br /><b>Subject:</b> Re: TREAT troubles?</span><u></u><u></u></div>
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Hi Bryan,<u></u><u></u></div>
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PLEASE GET THEM ALL IN. <u></u><u></u></div>
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I keep running across Insulation and "air sealing" work that is visually appealing, it seems beautifully done. When I inspect the energy bills I scratch my head. Then when I run my fan and inspect the work these jobs are no longer visually appealing, the rim joists and attic crawls are leaky as heck. The boat is sinking faster than the Titanic. <u></u><u></u></div>
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We need a program where the incentive to participate is so great that everyone is IN. A program that spreads building science knowledge virally throughout the trades. A program that will teach these "I've got 30 years experience, I know what I'm doing" guys that the energy results tell a different story, that they've got 1 years experience 30 times. That when it comes to saving energy they are amateurs. We need everyone competing on results, or the cheap guys with ineffective but pretty looking work will win too often. <u></u><u></u></div>
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GET THEM ALL IN. <u></u><u></u></div>
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Instead of a program contractors want to avoid, one that corrupt program guidelines force them to game their one call sold jobs into "getting projects to pass," we need a program that tracks results so contractors understand how well or poorly they really are doing and rise or sink on results. A program that encourages solution sales thoughtful design rather than one call stuff down their throats product sales. <u></u><u></u></div>
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SIR 1.01 is an incredibly corrupting guideline. It forces everyone who wishes to run jobs through the program down a path of no return, particularly if they are using the one-call approach. This PSC requirement has had disastrous consequences, forcing CSG and contractors to go down the path of "just making small tweeks". Well, small tweeks eventually become malignant cancer. <u></u><u></u></div>
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Tracking my project results has proven to me that true TREAT models accurately project saving on comprehensive projects. CSG has so fully committed to the path of abandoning truth in TREAT that modelling no longer has any basis in reality. NYSERDA is somewhat complicit, with the "minimum number of projects" rule. Untrued or otherwise gamed models project savings that have no basis in reality.<u></u><u></u></div>
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I've been struggling to find any natural gas projects with SIR. We need a program that is not exclusionary. A program with energy savings based incentives, not SIR based. PSC wants to pay for energy savings, make the program energy savings based, not project cost based.<u></u><u></u></div>
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As I said all last year, bad modelling with be catastrophic as On-Bill progresses. Now we find ourselves at a crossroads of conscience. Very soon your opportunity to take a stand on this corruption will be behind you. At some point not taking a clear position against this evil will be the same as sanctioning it, something that can not be explained away. <u></u><u></u></div>
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Regards,<u></u><u></u></div>
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<br clear="all" />Ted Kidd<u></u><u></u></div>
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<a href="http://eesny.com/" target="_blank">Energy Efficiency Specialists</a><u></u><u></u></div>
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<a href="tel:%28585%29%20205-8674" target="_blank">(585) 205-8674</a> Office<u></u><u></u></div>
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<a href="http://www.quotationspage.com/quote/2298.html" target="_blank" title="Click for further information about this quotation"><span style="background-attachment: initial; background-clip: initial; background-color: #99ff99; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; color: #454545; font-family: Arial, sans-serif; text-decoration: none;">All that is necessary for the triumph of evil is that good men do nothing.</span></a> - Edmund Burke<u></u><u></u></div>
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On Fri, Feb 24, 2012 at 11:58 AM, Ted Kidd <<a href="mailto:tedkidd@eesny.com" target="_blank">tedkidd@eesny.com</a>> wrote:<u></u><u></u></div>
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Are my prognostications of the last year and a half coming to fruition? It breaks my heart, foundationally this is such a fantastic program and On-Bill could have made it amazing. The tremendous goodwill value built over 10 years seems to be quickly depleting. The way things are now we see brute force corrections which then have some fairly catastrophic unintended consequences that also require ever more extreme brute force corrections and all of it catastrophically impacts confidence. <u></u><u></u></div>
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Wouldn't it be nice if brute force corrections were unnecessary, if this program were naturally self-correcting? Wouldn't it be nice if the consumers and contractors lined up to participate? Wouldn't it be nice if everyone could have confidence that the savings modeled would hold up? Wouldn't it be nice if every contractor wanted to run every job through the program? Wouldn't it be nice if the cost of administering each job was cut by a factor of 4 and if incentives were based upon energy saved? <u></u><u></u></div>
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I firmly believe it is possible. But first it requires a level of accountability that will only occur when the program reorients around transparency of results. This is a tremendous opportunity for NYSERDA. <u></u><u></u></div>
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Results have to be the natural counterbalance. TREAT is a fantastic tool. Since 2008 I've repeatedly said TREAT is the KEY, and I still believe that. I've tracked my results and having them is very meaningful as it provides confidence and credibility, but getting them is very onerous. I want you to track them for me, to share the results with me and with the world. I want them to prove my successes and help me correct and avoid mistakes. Mostly I want pressure on results, which can't happen if nobody knows the results. <u></u><u></u></div>
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I suspect all the contractors would like to know how accurate their projections turn out to be (have any asked?). If given fair warning, data, and time to adjust, they too will come to see that they want their results shared. Think of what an amazing service this would provide to contractors and consumers. A very compelling measure of confidence and truth, and removal of a huge barrier to action by homeowners - the barrier of uncertainty. <u></u><u></u></div>
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Once contractors can see that their results can be a marketing tool or an anchor, they will focus on providing the best results possible and all your current nightmares are solved. New contractors will pay their first born to get into the program and all jobs will be self-approving. Existing contractors will focus on quality over short term profitability when the two conflict. It's so much easier to sell truth than to sell hype. <u></u><u></u></div>
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Technological advances make results transparency a forgone conclusion. If NYSERDA is not involved in bringing it you won't have control over how the results are presented. That has me very worried, I can't imagine it doesn't worry you. <u></u><u></u></div>
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If you are beginning to see some TREAT complaints from contractors this re-alignment should correct that too, I have some short term ideas for the interim. <br clear="all" /><u></u><u></u></div>
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Ted Kidd<u></u><u></u></div>
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<br class="Apple-interchange-newline" />Ted Kiddhttp://www.blogger.com/profile/14283149266019846669noreply@blogger.com0tag:blogger.com,1999:blog-699531228844218731.post-57282773710074222852012-03-30T18:21:00.000-04:002012-04-02T13:48:19.428-04:00Challenges accessing 3/30 NYSERDA webinar...<span style="background-color: rgba(255, 255, 255, 0.917969); color: #222222; font-family: arial, sans-serif; font-size: 13px;">The email below was in the rough draft stage, and when my code didn't get me in to the webinar I felt compelled to release it. </span><br />
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<span style="color: #222222; font-family: arial, sans-serif; font-size: x-small;"><b>The program is moving toward truing energy consumption, and truing to energy prices. I hope people realize this will make SIR much more difficult to achieve, and that incentive based upon energy savings means SIR/TRC problems go away. </b></span><br />
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<span style="background-color: rgba(255, 255, 255, 0.917969); color: #222222; font-family: arial, sans-serif; font-size: 13px;">Thank you to Andy Kambourelis and Cara Tromans of CSG, both of whom responded nearly instantly to the e-mail with a path to access. I was able to catch a good portion of the webinar...</span><br />
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<span style="background-color: rgba(255, 255, 255, 0.917969); color: #222222; font-family: arial, sans-serif; font-size: 13px;">On Fri, Mar 30, 2012 at 3:21 PM, Ted Kidd </span><span dir="ltr" style="background-color: rgba(255, 255, 255, 0.917969); color: #222222; font-family: arial, sans-serif; font-size: 13px;"><<a href="mailto:tedkidd@eesny.com" style="color: #1155cc;" target="_blank">tedkidd@eesny.com</a>></span><span style="background-color: rgba(255, 255, 255, 0.917969); color: #222222; font-family: arial, sans-serif; font-size: 13px;"> wrote:</span><br />
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Dear Mr. Ahearn and HPwES participants:<br />
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(At 2:30 I attempted to gain access to the 3pm webinar. Apparently I have a bad registration number. On 3 different browsers I get "Webinar Unavailable", curious.) </div>
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I think it's fair to say;<i> ‘290 other contractors are doing great with it’</i> has been proven false, that '<i>everyone else doesn’t have a problem with it, what is wrong with you</i>' has been shown to be the words of a cruel partner. To those who have replied, thank you for proving this to me and to everyone.</div>
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These are the things we've been hearing sir. I think you may also have been led to believe the same falsehood. I hope you are beginning to see a different picture now. </div>
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It was not my intent to create a stir without offering solutions: </div>
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<b>Currently the program pays a percentage of total job. I think this is the broken piece. </b> A $10,000 job might pass SIR if the price were $8000, problem is we can't perform $10,000 jobs for $8000 and stay in business long. </div>
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<b>PSC wants to pay for energy reduction. </b> If you think about it, they have a number they are willing to pay for every job. That amount occurs at the point that job hits 1.01 SIR. </div>
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<b>Why not make incentive based upon the amount that the PSC feels each individual job is worth, let the homeowner pay the rest? </b>Stop backing into things, come straight at it. Get the windows and water heaters back in, simplify for us sales people so we can explain it to the homeowner again. </div>
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Here's a scenario: </div>
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<span style="font-family: 'comic sans ms', sans-serif;">$10,000 job doesn't make 1.01. At $8000 it does. </span></div>
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<span style="font-family: 'comic sans ms', sans-serif;">This means the homeowner incentive is either $800, (or $4000 for 50/50). <b>PAY THAT! </b> Let the homeowner finance the remaining $9200 (or $6000 for 50/50). </span></div>
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<span style="font-family: 'comic sans ms', sans-serif;">With this approach NYSERDA/PSC pays for the value of the energy reduction they see for every job. Every audit becomes opportunity for sales without having to game models. Many of the current painful contortionist job sales and approval activities go away. </span></div>
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Isn't this almost the same perspective On-Bill is taking, allowing the difference to come from "Off-Bill"?</div>
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I know simple doesn't mean easy. Changing core approach to incentive will be hard, and the prospect out the other side of less bureaucracy may not appeal to some in power. But for us this approach does mean opportunity at almost EVERY AUDIT. </div>
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It means opportunity without having to game energy models. It would hyper-simplify approval, as nearly every job qualifies, just like before March 31, 2011. The program can again apply pressure to run all jobs through it, which I see as critically important program feature removed when "SIR Cliff" was implemented. </div>
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QC cost and complexity could be dramatically reduced. Sampling of energy savings proves accuracy. (Isn't NYSERDA sampling energy savings anyway?) Create incentive for excellence, bonus contractors based upon their savings realization rates. </div>
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A friend sent this:</div>
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<span style="color: #006600; font-family: arial, helvetica, sans-serif; font-size: xx-small;"><i>I especially like your arguments about applying incentive to the energy savings and not holding the retrofit companies to both SIR and realization for the incentives. <br /><br />I like your thoughts about providing incentive that matches to the trued model energy savings (and have the homeowner handle the rest of the cost - I can deal with a $5000 expense rather than $20,000 if I know the other $15,000 will be accurately accommodated by the work being done. <br /><br />This has got to be the answer - figure the energy savings based on the work scope and determine how that can be handled with On-Bill financing and then leave the rest to the homeowner. I think that this approach will get the contractors all back on track to be more supportive of the whole process - and it will be the most effective at reducing the fossil fuel energy usage.<br /><br />I really do think that getting the program to the essence of the last paragraph is the key - it is critical to the program. Without it, the construction companies are just pawns - mice on a treadmill - trying to survive from job to job.</i></span><br />
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With savings based incentives the program returns to it's goal of market transformation and reducing energy use. Sales people can again present the program to homeowners with enthusiasm and gusto! Instead of struggling with model uploads, contractors can get back to work. We can shift from just trying to survive, to prospering. </div>
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Otherwise this program will continue evolving down the path of: "I'll take $250 to have a seat at the kitchen table, and I'm happy to sell the RG&E rebate". I don't think this path leads to high realization rates or long term success for anybody. </div>
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Sincerely,</div>
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Ted Kidd<br />
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P.s.: Damian's suggestion about moving this to a blog seems very pertinent at this point. I've posted this stuff at <a href="http://eesny.blogspot.com/" style="color: #1155cc;" target="_blank">http://eesny.blogspot.com/</a> if anyone wants a reference or to comment. </div>
</blockquote>Ted Kiddhttp://www.blogger.com/profile/14283149266019846669noreply@blogger.com0tag:blogger.com,1999:blog-699531228844218731.post-22913718797837515762012-03-29T12:34:00.000-04:002012-04-13T15:59:24.839-04:00Dear Mr. Ahearn/NYSERDA 3/28 reply<span style="font-family: arial;">This is the response I sent to Mr. Ahearn's <a href="http://eesny.blogspot.com/2012/03/response-from-john-ahearn-to-323-e-mail.html" target="_blank">response</a> to <a href="http://eesny.blogspot.com/2012/03/conversations-with-bryan-32312.html" target="_blank">the concerns I brought to the fore</a>. </span><br />
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<span style="font-family: arial;">It feels like they still don't quite understand what driving for more accurate models means when you have SIR cliff. We've been doing our's this way for a year, and it results in very few 1.01 or better projects: </span><br />
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<span style="font-family: arial; font-size: x-small;">Wed, Mar 28, 2012 at 9:34 AM, Ted Kidd</span><span style="font-family: arial; font-size: x-small;"> </span><span dir="ltr" style="font-family: arial; font-size: x-small;"><<a href="mailto:tedkidd@eesny.com" target="_blank">tedkidd@eesny.com</a>></span><span style="font-family: arial; font-size: x-small;"> </span><span style="font-family: arial; font-size: x-small;">wrote:</span><br />
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<span style="font-family: 'comic sans ms', sans-serif;">Wow, before my reply I would again like to thank everyone for all the private notes of support! </span><br />
<span style="font-family: 'comic sans ms', sans-serif;"><br /></span><span style="font-family: 'comic sans ms', sans-serif;">SIDE NOTE: I do not work for Damian, complaining to him or asking him to attempt to shut me up is not fair to him. Also, I intend to advocate for the interests of all homeowners and all contractors, not a select few. For inclusiveness, not exclusivity. Reducing barriers to entry, not increasing them. </span><br />
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<span style="font-family: 'comic sans ms', sans-serif;">I apologize to anyone who is receiving these messages who would rather not get them. Please, anyone who wants off let me know and I will pull your name out. </span></div>
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<span style="font-family: arial; font-size: x-small;">Dear Mr. Ahearn,</span><br />
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<span style="font-family: arial; font-size: x-small;">Thank you for your input. </span><br />
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<span style="font-family: arial; font-size: x-small;">NYSERDA now intends to require truing of models. It has been my experience building energy models, before truing to consumption they overstate costs. This is true of every modelling software I've used. With some homes it may be by a factor of as much as 100%. Please think a moment about what this means: </span><br />
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Your house annual energy spend is $2000. The untrued model says $4000. Improvements reduce consumption by 25% with 1.15 SIR.<br />
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Untrued, $1000 annual savings means your job get's SIR. Trued the savings is $500 and it does not get SIR. </div>
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<span style="font-family: arial; font-size: x-small;">Part of Energy Efficiency Specialists mission is accurate energy modelling. We have taken the further truing step of comparing projections to results, so we have very high certainty that there is little room for change in our approach if we hope to maintain a grip on reality. </span><b style="font-family: arial; font-size: small;">We have been seeing very few projects with SIR 1.01 or better, and I can document months worth of conversations with CSG about this. </b><span style="font-family: arial; font-size: x-small;"> We have been seeing a lot of projects with .7 and lower. </span><br />
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<span style="font-family: arial; font-size: x-small;">Pulling 10% incentive off the top will not fix SIR shortfall on trued models. Would you instruct us to do whatever it takes to get jobs approved? Truing models and fuel cost is going to mean </span><b style="font-family: arial; font-size: small;">even fewer viable opportunities</b><span style="font-family: arial; font-size: x-small;">. Over the last year have you not been seeing (at least suspecting) insulation and blower door games? Don't you understand why that was happening? </span><br />
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<b style="font-family: arial; font-size: small;">Please do not force contractors to true models unless you take away 1.01 SIR.</b><span style="font-family: arial; font-size: x-small;"> </span><span style="font-family: arial; font-size: x-small;"> Many have had one foot out the door since last March. Yes I'm an advocate for truth in energy savings, but the path requires more participation, not less. It requires a program with competitive advantage, not a net add to overhead. Benefits of the program from homeowner perspective still requires competitive price. If you continue to make significant adds to contractor overhead, you need to pay for them so price remains competitive. </span><br />
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<span style="color: red;"><b style="font-family: arial; font-size: small;">Is it true that historically this program has a realization rate of 20%? </b><span style="font-family: arial; font-size: x-small;">If that's the case, when contractors start doing accurate modelling what do you think will happen to their SIR's? Do you not see the direct correlation between savings realization and SIR? </span></span><br />
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<span style="font-family: arial; font-size: x-small;">These contortions and convolutions simply add more layers of computer confusion, administration, and are an unfortunate denial of the truth. These guys are playing by ground-rules you created. When you make a mistake, clubbing them with it is terribly unfair. Don't you see these people are bleeding to death? That it's the program's fault? We understand you have issues with the PSC, but you are our conduit. You are our partner. To correct a mistake you must first be willing to admit a mistake has been made. </span><br />
<span style="color: orange;"><br style="font-family: arial; font-size: small;" /><span style="font-family: arial; font-size: x-small;">I'm sorry nobody has had the gumption to tell you this sir. Clearly you have not been getting the true picture. Your son works at CSG, correct? Bypass the chain of command filters, they are not working. Talk to him! </span></span><br />
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<b style="font-family: arial; font-size: small;">Speaking of CSG, apparently the contract for implementer is renewing? Who is involved in that decision? </b><span style="font-family: arial; font-size: x-small;"> Since they work with us, and are supposedly our partner, shouldn't we be? Has NYSERDA taken a poll of all contractors to see if we would like a change of implementer? Is NYSERDA interested in our opinion? </span><br />
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<span style="font-family: arial; font-size: x-small;">Truing models and fuel cost is going to mean</span><span style="font-family: arial; font-size: x-small;"> </span><b style="font-family: arial; font-size: small;">even fewer viable opportunities</b><span style="font-family: arial; font-size: x-small;">. SIR based on net consumer investment instead of total investment doesn't game the numbers enough the other way. We need a program that redirects focus on savings delivered. On Bill will fail without it. Why hasn't your implementer made this clear to you? </span><br />
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<span style="font-family: arial; font-size: x-small;">This path is failing. This next tweak doesn't staunch the bleeding, it makes things worse. True models, true energy cost, and SIR requirements are completely incompatible. </span><br />
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<span style="font-family: arial; font-size: x-small;">Let's think about this program. Don't we all want opportunity at EVERY AUDIT. Want comprehensive projects to go through the program and get all the wonderful benefits and protections the program used to provide. I want that for every project. </span><br />
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<span style="font-family: arial; font-size: x-small;">This is a sales process! "Give us an opportunity at every home, or please just go away." "I wish this program would hurry up and fail." "homeowners complain about crappy walk through audits". Sales guys are fed up, and the program is really quickly losing goodwill now.</span><br />
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<span style="color: #006600; font-family: arial; font-size: x-small;">SIR based on total project cost, or on <b>consumer investment</b> for a program that supposedly needs to justify <b>public </b>investment is absurd. </span><span style="font-family: arial; font-size: x-small;"> What conceit causes anyone who hasn't seen the home and talked to the homeowner to deign to know better how the homeowner should invest their own money in their own homes? See the flaw in this thinking? Doesn't this seem to treat the homeowner with abject paternalistic condescension? Besides, isn't the investment made by NYSERDA the investment NYSERDA should be worried about? Shouldn't it just be the public side of the equation that should be concerned with being a "good" investment energy wise? </span><br />
<b style="font-family: arial; font-size: small;"><br /></b><b style="font-family: arial; font-size: small;">Shouldn't SIR be applied to the incentive portion rather then the homeowner portion? If you show up with 10%, worry about your 10%! Let me worry about what my house needs!! </b><br />
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<span style="font-family: arial; font-size: x-small;">Following this evolutionary path wouldn't we eventually arrive at the logical conclusion of creating incentive based upon energy savings? Imagine how little administration that would entail, not just on the contractor side but the program administration side as well. Incentive based not upon total investment, but upon energy saved. </span><b style="font-family: arial; font-size: small;">Let the homeowner decide what capital, comfort, health, safety, durability, and investment return they want from improvements they make to THEIR homes. Give them incentive for the energy savings, not the investment return. </b><span style="font-family: arial; font-size: x-small;"> </span><br />
<b style="font-family: arial; font-size: small;"><br /></b><b style="font-family: arial; font-size: small;">Every project AUTOMATICALLY approved - reinvigorate the interest of the sales force! </b><br />
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<span style="font-family: arial; font-size: x-small;">Thank you for coming to the conversation. Please fix this sir, it's time to fix this. Everyone is fed up. The answer is not in holding another webinar. There is a huge opportunity here, the time to act is now. </span><br />
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<span style="font-family: arial; font-size: x-small;">Ted Kidd</span><br />
<a href="http://eesny.com/" style="font-family: arial; font-size: small;" target="_blank">Energy Efficiency Specialists</a><br />
<a href="tel:%28585%29%20205-8674" style="font-family: arial; font-size: small;" target="_blank" value="+15852058674">(585) 205-8674</a><span style="font-family: arial; font-size: x-small;"> </span><span style="font-family: arial; font-size: x-small;">Office</span><br />
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<a href="http://www.quotationspage.com/quote/2298.html" style="font-family: arial; font-size: small;" target="_blank" title="Click for further information about this quotation"><span style="background-color: #99ff99; font-family: 'comic sans ms', sans-serif;">All that is necessary for the triumph of evil is that good men do nothing</span><span style="background-color: #99ff99; font-family: 'comic sans ms', sans-serif;">.</span></a><span style="font-family: arial; font-size: x-small;"> - Edmund Burke</span><br />
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<span style="font-family: arial; font-size: x-small;"><b><u>SUMMARY</u></b>: While accurate modelling is an important goal, if the result is no work what is the point? Yes I'm an advocate for accurate modelling, but I also want the program participants to thrive. This means having work that the program recognizes as being worthwhile. This requires changing from a job cost cliff system to a system that pays based upon energy savings. </span><br />
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<span style="font-family: arial;"><span style="font-size: large;"><b><u>NEXT</u></b>: <a href="http://eesny.blogspot.com/2012/04/vision-of-how-great-ny-hpwes-could-be.html" target="_blank">HOW GREAT WOULD THIS BE!?!</a></span></span><br />
<span style="font-family: arial;"><br /></span></div>Ted Kiddhttp://www.blogger.com/profile/14283149266019846669noreply@blogger.com0tag:blogger.com,1999:blog-699531228844218731.post-81146317655720191982012-03-26T21:17:00.000-04:002012-04-13T16:01:24.100-04:00Response from John Ahearn to 3/26 e-mail<span style="font-family: arial; font-size: x-small;"><br /></span><br />
<span style="font-family: arial; font-size: x-small;">On Mon, Mar 26, 2012 at 6:17 PM, John Ahearn </span><span dir="ltr" style="font-family: arial; font-size: x-small;"><<a href="mailto:mja@nyserda.org" target="_blank">mja@nyserda.org</a>></span><span style="font-family: arial; font-size: x-small;"> wrote:</span><br />
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<span style="color: navy; font-family: Arial;">Dear NYHPwES Contractors,<br />I had hoped that the Program Announcement that we sent out last week would address many of the concerns with SIR. The new guidelines apply SIR only on financing and net of incentives. There is a webinar scheduled for Friday. Please participate in the webinar. Know that I am committed to making HP work for our contractors.<br />John Ahearn</span></div>
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I think most of us felt these communications were helping NYSERDA see a clearer, more accurate and less disconnected picture of what is actually happening with their program. But clearly a little more explanation will be required.<br />
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<a href="http://eesny.blogspot.com/2012/03/dear-mr-ahearnnyserda-328-reply.html">I responded shortly with THIS</a>.Ted Kiddhttp://www.blogger.com/profile/14283149266019846669noreply@blogger.com0tag:blogger.com,1999:blog-699531228844218731.post-67129479342278647492012-03-26T20:25:00.000-04:002012-04-13T15:15:40.681-04:003/26 Response from CONTRACTORS to my 3/23 emailBELOW ARE SOME OF THE RESPONSES I GOT FROM CONTRACTORS TO MY INITIAL PUBLIC E-MAIL:<br />
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<span style="font-family: Tahoma;"><b>Sent</b>: Mon Mar 26 17:25:30 2012<br /><b>Subject</b>: Re: "Cost Effectiveness" requirements...? - Thanks for the support! </span></div>
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Hello everyone,<br />
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I was surprised to get such positive response in support of the e-mail I sent Friday. Below are some written responses. I've removed most of the names and retained either a first or last initial. </div>
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I suspect a lot of you are concerned about retribution and are holding back. If anyone else would like to comment anonymously through me, please feel free. I will assume you wish to remain anonymous unless stated otherwise:</div>
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Ted I know we haven't met but thank you for advocating on behalf of all program contractors and our customers. Sincerely, N</blockquote>
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Agreed...thank you. Green Jobs Green New York right? I wish the program wasn't so political. They lose sight of why we do this in the first place... A</blockquote>
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I think you are clear, honest and to the point here. This is something they need to take to heart and discuss when considering how they move forward. P</blockquote>
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Ted, you are right on target!! H</blockquote>
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<span style="font-family: Calibri;">Ted- You make some very good points of course. I think the HPwES program has gone off the rails since last year's changes which made the RG&E rebate the easiest choice for our</span><span style="font-family: Calibri;"> HVAC guys to sell. Not being able to tell the customer with certainty that they can expect the NYSERDA 10% rebate killed the program where the dollars would be about equal.</span><br />
<span style="font-family: Calibri;"> N</span><span style="font-family: Calibri;">ow TRC has complicated the Insulation and Air Sealing side to the point where I don't talk about any rebate up front. I find the I &AS jobs I have been selling address a specific</span> <span style="font-family: Calibri;">problem, like moisture in the attic space, or is embraced because of comfort issues and not because of a rebate. Small projects are not worth the effort to get CSG approval.</span><br />
<span style="font-family: Calibri;">I have had very positive feedback on the I & AS projects we did last year and that is gratifing, so I see it works on a qualitative level. But the true savings are difficult to know </span> <span style="font-family: Calibri;">especially from such a small sample, so you are right in requesting quantitative results on a state wide basis, and additionally at what administrative cost!! </span><br />
<span style="font-family: Calibri;">I feel that TREAT is outdated, that the CHA report is a bad report to give to the customer and that while the intent of HPwES is worthwhile, the implementation is pretty broken.</span><br />
<span style="font-family: Calibri;"> </span> <span style="font-family: Calibri;">There seems to be a lot of people that share this belief but I don't see much being done about it.</span> <span style="font-family: Calibri;">I expect the sharp decline in the number of projects will draw attention, but too late.</span><br />
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<span style="font-family: Calibri;">I will be heading down to the ACI meetings in Baltimore tomorrow. I hope to come back with some ideas on what direction this whole industry may be taking.</span> <span style="font-family: Calibri;">B</span> </blockquote>
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<span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">Ted,</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">Thank you so much for your response to NYSERDA.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">I too have been trying hard to be heard, about all the things you have expressed.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">I managed to get NYSERDA to increase the loan pre-approval time from 60 to 180 days.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">A 60 day period was not working with the process, and my customers were having to re-qualify, sometimes backing out of the sale.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">Yesterday I gave my</span> <span style="color: red; font-family: Calibri, sans-serif; font-size: 15px;">REDACTED</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;"> notice to </span><span style="font-family: Calibri, sans-serif; font-size: 11pt;"><span style="color: red;">REDACTED</span></span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">I am a hard working, valued member of our company, but working within the HPwES program, is setting your business up for failure.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">I believe customer service is the key to good business, but the program create obstacles, that leave your company with deep wounds.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">I wish you the best, and know that you are not alone.</span><span style="color: #1f497d; font-family: Calibri, sans-serif; font-size: 11pt;">Sincerely, </span>M</blockquote>
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M followed up with:</div>
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Date: Mon, Mar 26, 2012 at 3:18 PM<br />
Subject: a shame<br />
To: Ted Kidd <<a href="mailto:tedkidd@eesny.com" style="color: #1155cc;" target="_blank">tedkidd@eesny.com</a>><br />
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Ted,<u></u><u></u></div>
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I give you permission to use my name for your correspondence with NYSERDA.<u></u><u></u></div>
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Ultimately my frustration with the HPwES program, has led me to resign from GHA, as Residential Manager.<u></u><u></u></div>
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The program currently sets up contractors for failure.<u></u><u></u></div>
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I am unable to provide good customer service, and projects are unable to be completed in a timely manner, due to the programs restrictions. To be successful, we rely on customer referrals. With every project falling into conflict, my customers are exhausted by the end, and are unlikely to refer our business. Our association with the HPwES program has put our reputation at great risk.<u></u><u></u></div>
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<span style="font-family: 'Lucida Calligraphy'; font-size: 14pt;">Maggie<u></u><u></u></span></div>
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<span style="font-family: 'Baskerville Old Face', serif; font-size: 14pt;">Maggie Maurer<u></u><u></u></span></div>
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<span style="font-family: 'Baskerville Old Face', serif; font-size: 14pt;">BPI Certified Building Analyst</span></div>
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After seeing these responses a friend wrote:</div>
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Wow - those are some very powerful statements. I know that you were confident about what you stated, but this type of response has to really validate the accuracy of your data and your note. J</blockquote>
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Another friend wrote: </div>
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Wow, seems there is at least one contractor out there that is very frustrated and has no one to vent too.<br />
this would be nice to get out anonymously. </blockquote>
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would be interesting to see what happens. T</blockquote>
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Finally, here is a fairly long one that I chopped more than half out due to length and anonymity:</div>
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<span style="font-family: Calibri; font-size: small;">"Ted, I didn't want to hit reply all for fear of being "black Balled" and having jobs pulled after they were done for the Honeywell nazi's to tear apart like a pack of wolves. I called my CSG rep today and asked him about the cost jobs versus the sir bull crap. he said he did not think there was anything to it, but I am seeing price fixing all over that statement coming down the pipe. it is clear that there is no one at CSG NYSERDA or the PSC that cares one bit about the contractor in the field. </span></div>
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<span style="font-family: Calibri; font-size: small;">...GJNY is a complete bust. I have heard that comfort windows has laid off all but eight employees and is in trouble. Green Homes almost didn't make payroll in the late part of 2011. The free audits are not being policed and there are plenty of "walk through audits" being done and giving the program a bad reputation.<br /> The SIR thing should completely go away entirely. Rate of return is something that almost everyone knows and understands. Let's ask ourselves a questions here on investment, if you get a call for someone that has a comfort isuues why do we need to make it pass any sort of scrutiny from another entity? If the customer is willing to spend the money borrowed or not ... why do we have to beg or worse change something that will get the glorious 1.1 SIR to do the work. </span></div>
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<span style="font-family: Calibri; font-size: small;">...The Green jobs and the changes have put more people out of work and made it more difficult that this needs to be.<br />...I personally belive that they don't want to fix it. The goal for green jobs all along was to put unionized people into the homes to do the work. If they drive the small companies out and there are just a few core companies doing the work it will be easier to make that happen. Don't ask me how that would work but this is what I have been told twice (the unionized part).</span> </div>
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<span style="font-family: Calibri; font-size: small;"></span> There are several things that could fix all of this: </div>
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<span style="font-family: Calibri; font-size: small;">...The SIR thing disappears. </span> </div>
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<span style="font-family: Calibri; font-size: small;">...The customer should be the one to say that they want to spend the money one a give project and not the blessed gods at nyserda and the psc. I think CSG is a puppet right now that is stuck betwwen the contractor and nyserda, i am not defending them just what i think.</span> </div>
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<span style="font-family: Calibri; font-size: small;"> ...There has to my knowledge been no training on what they are really looking for in a treat file. We can be 99% accurate and they will still hold the project up with questions that are so dumb that even typing a repsonse makes one laugh. At the ACI conference in Saratoga at one of the seminars I asked if they could (CSG) put together all of the reasons why a job got rejected for the last month be sent to the contractors in the program. the response was that they don't track it and it would be difficult to do. If they put forth the effort our costs would go down, our jobs would flow faster, CSG would not have the frustration of sending file back and forth for days on end, and holy cow we might make a buck doing it. Again a failure in the system.<br /> ...i would like to have someone at NYSERDA go to a 4500 sq ft house with natural gas for a fuel source do an audit and all of the paperwork associated with that project go back and tell the customer that they can't help. Or better yet have them do all of the paperwork necessary to do a AHP job and see how long it takes them to do, and oh by the way they can't get a pay check until the job is entirely complete.</span><span style="font-family: Calibri; font-size: small;">..The contractor in the field has no help with Treat files, marketing, and for that matter anything besides himself to get through this. Can someone step forward to help?</span><span style="font-family: Calibri; font-size: small;"><br />...There are several more items, but I have been frustrated enough over this whole thing. I am guessing that there are contractors dropping out of this mess left and right. There are also some on the verge of bankruptcy. </span></div>
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<span style="font-family: Calibri; font-size: small;">...They are not looking at the big picture. People who have nothing can get it all, food stamps, HEAP, Empower etc. The people how are struggling to pay there bill and want comfort in there hoem and are willing to pay for that are left out or it takes a god awful long time to get it done. What a sad statement when there are truly millions in the bank of NYSERDA to spend."</span></div>
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When I asked this writer for permission to "Publish" his response, he replied: </div>
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That sounds good. As you can see there is a good man there that has to bail because he can't make a living for his family.</blockquote>
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<span style="color: #222222; font-family: arial, sans-serif;">Folks, lack of guideline clarity, transparency, and arbitrary contractor treatment by CSG carries a huge part in this failure. I think a lot of the troubles with the program track back to bad guidance from </span> from CSG management to CSG staff, and CSG management to NYSERDA. </div>
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<span style="color: #222222; font-family: arial, sans-serif;">Might be nice if we had a new program implementer. </span></div>
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Again, if I can be of assistance or be message conveyance to NYSERDA about CSG or other issues, please don't hesitate to reach out. </div>
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Ted Kidd<br />
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<a href="http://eesny.com/" style="color: #1155cc;" target="_blank">Energy Efficiency Specialists</a></div>
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<a href="tel:%28585%29%20205-8674" style="color: #1155cc;" target="_blank" value="+15852058674">(585) 205-8674</a> Office</div>
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<span style="background-color: #99ff99; font-family: 'comic sans ms', sans-serif;">Learning from our mistakes means admitting to them first. It takes all of us to build a better system.</span> - Dr. Sanjay Gupta</div>
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<u><b>SUMMARY</b></u>: The program appears to be going off the rails. As if the comments above weren't proof, below are more comments that came in after I'd sent this e-mail.<br />
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<b><u>NEXT</u></b>: John Ahearn <a href="http://eesny.blogspot.com/2012/03/response-from-john-ahearn-to-323-e-mail.html" target="_blank">responds</a> to this e-mail, and <a href="http://eesny.blogspot.com/2012/03/dear-mr-ahearnnyserda-328-reply.html" target="_blank">I respond to his comments</a>. <br />
<br />Ted Kiddhttp://www.blogger.com/profile/14283149266019846669noreply@blogger.com16tag:blogger.com,1999:blog-699531228844218731.post-56180246889385913872012-03-23T18:58:00.000-04:002012-04-13T15:23:16.413-04:00Email to Bryan and Contractors 3/23/12, COST EFFECTIVENESS ANNOUNCEMENT?!<span style="color: #500050; font-family: arial, sans-serif; font-size: x-small;">In response to </span><b style="background-color: rgba(255, 255, 255, 0.917969); color: #222222; font-family: arial, sans-serif; font-size: 13px;">Cost Effectiveness Program Announcement 3-22-12.pdf </b><span style="background-color: rgba(255, 255, 255, 0.917969); color: #500050; font-family: arial, sans-serif; font-size: 13px;">I wrote Bryan Henderson and </span><span style="background-color: rgba(255, 255, 255, 0.917969); font-family: arial, sans-serif; font-size: 13px;"><span style="color: red;">CC'd all contractors from an earlier NYSERDA announcement the following message:</span></span><br />
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<span style="background-color: rgba(255, 255, 255, 0.917969); color: #500050; font-family: arial, sans-serif; font-size: 13px;">On Fri, Mar 23, 2012 at 3:58 PM, Ted Kidd </span><span dir="ltr" style="background-color: rgba(255, 255, 255, 0.917969); color: #500050; font-family: arial, sans-serif; font-size: 13px;"><<a href="mailto:tedkidd@eesny.com" style="color: #1155cc;" target="_blank">tedkidd@eesny.com</a>></span><span style="background-color: rgba(255, 255, 255, 0.917969); color: #500050; font-family: arial, sans-serif; font-size: 13px;"> wrote:</span><br />
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Looking over the recent program announcement has me really concerned. This is going to really hurt a lot of contractors and homeowners - and the program overall. </div>
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<span style="font-weight: bold;"><span style="color: #006600;"><u>THE PROBLEM OF ACCURATE MODELS WITH 1.01 Savings Investment Ratio MINIMUMS</u>:</span></span></div>
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You are now telling <b>everyone </b>to do very accurate audit modelling. Building accurate models means all contractors will now find themselves the boat we've always been in, very few viable jobs, and even fewer truly comprehensive jobs that can go through the program. <b>I think this will further marginalize HPwES, which is devastating for me because I feel at it's foundation this program is sheer brilliance.</b> This current path is like a farmer who's diligently fertilized and planted, then opting to only water every 10th row. If you send people to homes and they have fewer and fewer program opportunities, how long do you have a program? <b> This program needs more opportunity, not less! </b></div>
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<b>I know this because our approach from the start has been accurate modelling, thoughtful collaborative design, then delivery of recommendations. </b>That approach means higher contractor audit cost and fewer projects that meet SIR. I haven't done the exact numbers, but in our first 50 audits roughly 45 were on natural gas and fewer then a handful of those had a viable project, much less a comprehensive one. </div>
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I was hoping CSG would help me convey this problem to you, but after many much cajoling and many promises to review and confirm our models were accurate, Earl Hicks abandoned me. Otherwise I would have been having this conversation with you 6 months ago and maybe helped you avoid the problems you are now about to face. </div>
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<b><span style="color: #006600;"><u>PEOPLE NEED TO HAVE INCENTIVE</u>: </span></b></div>
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Seems incentive has recently been completely overlooked. The commissioned salesperson is your front line and they need to pay bills like everyone else. With all the uncertainty in making a sale, having confidence in the program that takes you there is really important. This program change takes the salesperson from; "<b>Crap, how do I get this contract to pass</b>" to <b>"Crap, I've gotta go tell the homeowner this job doesn't qualify </b>(and now I won't be paid for all my time)." This takes the program from sometimes marginalized to almost always marginalized for even the most passionate.</div>
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Many contractors look at this program as JAST (Just Another Sales Tool). They go to the home, most often sell solutions at that initial visit, then go to the office and attempt to get the model to pass. Implicit in this path is a fair number of inaccurate models and a fair amount of wasted effort and frustration. It's an absurd process, but these guys don't have the luxury of <b>not </b>selling "because the model is not accurate" or because the program's design is fatally corrupted. They invested the time and need to earn a living, so they do whatever it takes to get the job through. <b>Designing comprehensive work should be the goal, but it's been supplanted by SIR and churning out proposals.</b> </div>
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<span style="color: #006600;"><br /><b><u>THERE IS NO TRANSPARENCY OR ACCOUNTABILITY FOR ENERGY RESULTS IN THIS PROGRAM</u>:</b></span></div>
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<b>For the program to really work, that must change. </b>Since homeowners mostly don't track, complaints about failure to meet annual savings projections are very unlikely. Contractors and homeowners need to easily see what was promised and what actually occurred. Furthermore, the rare complaint about energy results must not be met with <b>facetious defenses</b>; telling homeowners "you must have changed your behavior" or some other completely false misdirection. Currently this "go away" response has implicit blessing from the program! </div>
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<b>When this work is done comprehensively we change peoples homes from Hummers to Prius.</b> NYSERDA and BPI made this possible. My tracking has no statistical significance but anecdotal evidence suggests behavior has about as much impact as setting cruise at 60 vs 65. The difference between 50% savings and 55% savings if you are LUCKY. Not nothing, but immaterial on relative terms (and with modern equipment, human interaction with equipment settings may actually INCREASE consumption.) Without tracking on a larger scale a huge opportunity for detecting these patterns and learning from success and failure is lost. </div>
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Another reason to track - I frequently see non-program contractor insulation work on incredibly leaky houses with high bills. Results tracking raises the bar for everyone. Transparently "Poor Results" provides powerful counterbalance to "low bid" work. </div>
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<b><span style="color: #006600;"><u>The way forward</u>:</span></b></div>
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<i><b>Track and share with contractors the results of their work (BTU promised to BTU saved ratio). </b></i></div>
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<i><b>Tell contractors that that eventually this information will be used for marketing and for program awards, including $ for ratios above 1:1. </b></i></div>
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<i><b>Over night the orientation towards this work will change from "get the job sold and done as cheaply and quickly as possible" to "get the job done as energy effectively as possible". </b></i></div>
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<i><b>Contractors will compete for results. </b></i></div>
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<i><b>Main focus will shift from cost to quality.</b></i></div>
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<i><b>Everyone wins.</b></i></div>
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<b style="color: #500050;"><i><span style="color: #006600;">This program should want every contractor in, every job in. Every energy savings opportunity incentivized, not discouraged. Every sales person excited about and selling this program, not terrified of it. </span></i></b><br />
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It would be nice if changes were made with consideration for contractors for a change. In contractors defense, without tracking how can they know whether results match promise or not? Since almost nobody tracks results everyone is completely disconnected from whether results match promise, or if any savings even occur. Contractors know how to analyze sales numbers and could easily do the same for energy numbers, but they aren't given these numbers to look at. Without tracking they don't see patterns, they don't learn what actually saves energy. They can not be scapegoat here, they've done what they were told in the hope of selling enough work to get a paycheck on Friday. </div>
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For this change to be fair to the contractor, it must not be implemented over night. If there are significant failures the contractors should be given time to understand and correct rather than having a switch flipped, after all they had no feedback loop from the program regarding energy results. A reasonable Gantt Chart needs to be mapped and communicated so contractors can understand current performance, understand time frames, re-orient priorities given this new information, see improvement, and be prepared. </div>
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<b><span style="color: #006600;">For all this to occur, program incentives need to be based upon energy savings, not project cost. </span> The program shouldn't tell homeowners what is a good investment, that's really for the individual homeowner to decide. The program would tell how much it will participate in each homeowner's project. This needs to be based upon the project energy savings, not total project cost. This simple change to incentives could make all projects meet TRC, even jobs with windows, and rejuvenate enthusiasm for the program for everyone. </b></div>
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<span style="color: #500050;">Ted Kidd</span><br />
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<a href="http://www.blogger.com/blogger.g?blogID=699531228844218731" style="color: #1155cc;" value="+15852058674">(585) 205-8674</a> Office</div>
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<span style="background-color: #99ff99; font-family: 'comic sans ms', sans-serif;">Learning from our mistakes means admitting to them first. It takes all of us to build a better system.</span> - Dr. Sanjay Gupta</div>
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This message included the earlier "Conversations with Bryan" emails: <a href="http://eesny.blogspot.com/2012/02/conversations-with-bryan-22412.html" target="_blank">2/24</a> and <a href="http://eesny.blogspot.com/2012/03/conversations-with-bryan-32112.html" target="_blank">3/21</a>.<br />
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<span style="font-size: large;">SUMMARY: SIR cliff based incentive is corrupt by design. The bar is invisible, set too high, forces realization rates down, and creates all types of problems with the sales process. Sales measures basket height after the sale then contorts modelling to reach. Time for a new approach. </span><br />
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<span style="font-size: large;">NEXT POST: <a href="http://eesny.blogspot.com/2012/03/326-response-from-contractors-to-323.html" target="_blank">Surprising response from Contractors.</a> </span><br />
<span style="font-size: large;"><br /></span>Ted Kiddhttp://www.blogger.com/profile/14283149266019846669noreply@blogger.com0781 Harvard St, Rochester, NY 14610, USA43.144074 -77.57221343.142626 -77.5746805 43.145522000000007 -77.56974550000001tag:blogger.com,1999:blog-699531228844218731.post-54402637839071189182012-03-21T12:53:00.000-04:002012-04-13T14:51:08.675-04:00Conversations with Bryan 3/21/12, GET EVERYONE IN<br />
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<b style="background-color: rgba(255, 255, 255, 0.917969);"><span style="font-family: Tahoma, sans-serif; font-size: 10pt;">From:</span></b><span style="font-family: Tahoma, sans-serif; font-size: 10pt;"><span style="background-color: rgba(255, 255, 255, 0.917969);"> Ted Kidd</span><br /><b style="background-color: rgba(255, 255, 255, 0.917969);">Sent:</b><span style="background-color: rgba(255, 255, 255, 0.917969);"> Wednesday, March 21, 2012 9:51 AM</span><br /><span style="background-color: white;"><b>To:</b> <span class="il" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial;">Bryan</span> D. Henderson<br /><b><br />Subject:</b> Re: TREAT troubles?</span></span><span style="background-color: white;"><u></u><u></u></span></div>
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<span style="background-color: white;">Hi <span class="il" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial;">Bryan</span>,<u></u><u></u></span></div>
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PLEASE GET THEM ALL IN. <u></u><u></u></div>
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I keep running across Insulation and "air sealing" work that is visually appealing, it seems beautifully done. When I inspect the energy bills I scratch my head. Then when I run my fan and inspect the work these jobs are no longer visually appealing, the rim joists and attic crawls are leaky as heck. The boat is sinking faster than the Titanic. <u></u><u></u></div>
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We need a program where the incentive to participate is so great that everyone is IN. A program that spreads building science knowledge virally throughout the trades. A program that will teach these "I've got 30 years experience, I know what I'm doing" guys that the energy results tell a different story, that they've got 1 years experience 30 times. That when it comes to saving energy they are amateurs. We need everyone competing on results, or the cheap guys with ineffective but pretty looking work will win too often. <u></u><u></u></div>
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GET THEM ALL IN. <u></u><u></u></div>
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Instead of a program contractors want to avoid, one that corrupt program guidelines force them to game their one call sold jobs into "getting projects to pass," we need a program that tracks results so contractors understand how well or poorly they really are doing and rise or sink on results. A program that encourages solution sales thoughtful design rather than one call stuff down their throats product sales. <u></u><u></u></div>
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SIR 1.01 is an incredibly corrupting guideline. It forces everyone who wishes to run jobs through the program down a path of no return, particularly if they are using the one-call approach. This PSC requirement has had disastrous consequences, forcing CSG and contractors to go down the path of "just making small tweeks". Well, small tweeks eventually become malignant cancer. <u></u><u></u></div>
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Tracking my project results has proven to me that true TREAT models accurately project saving on comprehensive projects. CSG has so fully committed to the path of abandoning truth in TREAT that modelling no longer has any basis in reality. NYSERDA is somewhat complicit, with the "minimum number of projects" rule. Untrued or otherwise gamed models project savings that have no basis in reality.<u></u><u></u></div>
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I've been struggling to find any natural gas projects with SIR. We need a program that is not exclusionary. A program with energy savings based incentives, not SIR based. PSC wants to pay for energy savings, make the program energy savings based, not project cost based.<u></u><u></u></div>
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As I said all last year, bad modelling with be catastrophic as On-Bill progresses. Now we find ourselves at a crossroads of conscience. Very soon your opportunity to take a stand on this corruption will be behind you. At some point not taking a clear position against this evil will be the same as sanctioning it, something that can not be explained away. <u></u><u></u></div>
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Regards,<u></u><u></u></div>
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<br clear="all" />Ted Kidd<u></u><u></u></div>
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<a href="tel:%28585%29%20205-8674" style="color: #1155cc;" target="_blank">(585) 205-8674</a> Office<u></u><u></u></div>
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<a href="http://www.quotationspage.com/quote/2298.html" style="color: #1155cc;" target="_blank" title="Click for further information about this quotation"><span style="background-attachment: initial; background-clip: initial; background-color: #99ff99; background-image: initial; background-origin: initial; color: #454545; font-family: Arial, sans-serif; text-decoration: none;">All that is necessary for the triumph of evil is that good men do nothing.</span></a> - Edmund Burke</div>
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<b><u>POST SUMMARY:</u></b> Momentum for market transformation exists. Many contractors now understand how "sell a product" did not deliver, we've learned building science and can now "sell solutions" that deliver. Infrastructure to deliver accurate energy savings needs to go to the next step so we no longer have to sell a "blind buy" to the consumer. Transparency of realization rates. </div>
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<span style="font-size: large;"><b><u>NEXT POST:</u></b> <a href="http://eesny.blogspot.com/2012/03/conversations-with-bryan-32312.html" target="_blank">SIR MINIMUMS ARE LIKE DUNKING 18 FT HIGH BASKETS, NOT HAPPENING WITHOUT A LADDER! </a></span><br />
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</div>Ted Kiddhttp://www.blogger.com/profile/14283149266019846669noreply@blogger.com0tag:blogger.com,1999:blog-699531228844218731.post-78760339303603378932012-02-24T14:58:00.000-05:002012-04-13T13:01:36.521-04:00Conversations with Bryan, 2/24/12 BEGINNING<br />
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On Fri, Feb 24, 2012 at 11:58 AM, Ted Kidd <<a href="mailto:tedkidd@eesny.com" style="color: #1155cc;" target="_blank">tedkidd@eesny.com</a>> wrote:<u></u><u></u></div>
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Hi Bryan,<u></u><u></u></div>
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Are my prognostications of the last year and a half coming to fruition? It breaks my heart, foundationally this is such a fantastic program and On-Bill could have made it amazing. The tremendous goodwill value built over 10 years seems to be quickly depleting. The way things are now we see brute force corrections which then have some fairly catastrophic unintended consequences that also require ever more extreme brute force corrections and all of it catastrophically impacts confidence. <u></u><u></u></div>
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Wouldn't it be nice if brute force corrections were unnecessary, if this program were naturally self-correcting? Wouldn't it be nice if the consumers and contractors lined up to participate? Wouldn't it be nice if everyone could have confidence that the savings modeled would hold up? Wouldn't it be nice if every contractor wanted to run every job through the program? Wouldn't it be nice if the cost of administering each job was cut by a factor of 4 and if incentives were based upon energy saved? <u></u><u></u></div>
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I firmly believe it is possible. But first it requires a level of accountability that will only occur when the program reorients around transparency of results. This is a tremendous opportunity for NYSERDA. <u></u><u></u></div>
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Results have to be the natural counterbalance. TREAT is a fantastic tool. Since 2008 I've repeatedly said TREAT is the KEY, and I still believe that. I've tracked my results and having them is very meaningful as it provides confidence and credibility, but getting them is very onerous. I want you to track them for me, to share the results with me and with the world. I want them to prove my successes and help me correct and avoid mistakes. Mostly I want pressure on results, which can't happen if nobody knows the results. <u></u><u></u></div>
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I suspect all the contractors would like to know how accurate their projections turn out to be (have any asked?). If given fair warning, data, and time to adjust, they too will come to see that they want their results shared. Think of what an amazing service this would provide to contractors and consumers. A very compelling measure of confidence and truth, and removal of a huge barrier to action by homeowners - the barrier of uncertainty. <u></u><u></u></div>
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Once contractors can see that their results can be a marketing tool or an anchor, they will focus on providing the best results possible and all your current nightmares are solved. New contractors will pay their first born to get into the program and all jobs will be self-approving. Existing contractors will focus on quality over short term profitability when the two conflict. It's so much easier to sell truth than to sell hype. <u></u><u></u></div>
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Technological advances make results transparency a forgone conclusion. If NYSERDA is not involved in bringing it you won't have control over how the results are presented. That has me very worried, I can't imagine it doesn't worry you. <u></u><u></u></div>
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If you are beginning to see some TREAT complaints from contractors this re-alignment should correct that too, I have some short term ideas for the interim. <br />
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Ted Kidd<u></u><u></u></div>
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<a href="http://eesny.com/" style="color: #1155cc;" target="_blank">Energy Efficiency Specialists</a><u></u><u></u></div>
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<a href="tel:%28585%29%20205-8674" style="color: #1155cc;" target="_blank">(585) 205-8674</a> Office<u></u><u></u></div>
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<a href="http://www.quotationspage.com/quote/2298.html" style="color: #1155cc;" target="_blank" title="Click for further information about this quotation"><span style="background-attachment: initial; background-clip: initial; background-color: #99ff99; background-image: initial; background-origin: initial; color: #454545; font-family: Arial, sans-serif; text-decoration: none;">All that is necessary for the triumph of evil is that good men do nothing.</span></a> - Edmund Burke</div>
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<span style="font-family: Georgia, 'Times New Roman', serif;"><u>SUMMARY of this Post:</u> TREAT works, Delivering savings on promise IS possible, We need to know our results and use REALIZATION RATE as the competitive metric, SIR has to go away and incentive based upon savings needs to take its place. </span></div>
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<span style="font-family: Georgia, 'Times New Roman', serif; font-size: large;">NEXT EMAIL/POST: <a href="http://eesny.blogspot.com/2012/03/conversations-with-bryan-32112.html" target="_blank">Please Get All Contractors IN</a></span><br />
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</div>Ted Kiddhttp://www.blogger.com/profile/14283149266019846669noreply@blogger.com0tag:blogger.com,1999:blog-699531228844218731.post-16293895888649047442011-12-28T12:48:00.000-05:002011-12-28T12:56:41.555-05:00DELIVERING ON PROMISES - Ask What Is Their Promised to Delivered Ratio!Today I want to write about PROMISE TO DELIVERED ratios. <br />
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<div class="separator" style="clear: both; text-align: center;"><a href="http://voreblog.files.wordpress.com/2009/04/brooklyn-bridge-1a.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="http://voreblog.files.wordpress.com/2009/04/brooklyn-bridge-1a.jpg" width="320" /></a></div><div style="text-align: center;">BE CAREFUL WHEN BUYING BRIDGES!</div><br />
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<u><b>IF YOU DON'T KEEP TRACK, HOW WILL YOU KNOW?</b></u> Guess what, in a world where NOBODY tracks results, don't expect the promises to have any relationship to reality. Where there is no accountability, don't expect to get the truth. The lie may not be intentional, but if you don't know what the truth is how can you tell it?<br />
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Energy Audit reports promise a certain $ savings for various improvements.<b> </b> If they can't give you a promised to delivered ratio - what are you buying? Hopes and dreams? Is this really as good as it gets?!? <br />
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<b>Conversations about </b><b>projected </b><b>to </b><b>actual </b><b> savings may get mind numbingly complicated, </b>as discussions of individual v/s package savings, energy prices, and inflation, and the "argument" about lifestyle changes come into play (as if your driving a Prius 20,000 miles and my driving it 20,000 miles will net a statistically different number of gallons used. Look folks, a house is a house!).<br />
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<div style="text-align: justify;"><b>So let's cut to the chase. If they promise you will save $400, how much do you save? Do you even keep track!?</b></div><br />
What you REALLY need to know isn't the COST, it's the CONSUMPTION! The cost of fuel goes up and down, which will skew "savings" results. What we really need to know is how much less E N E R G Y is used because of your investment in home improvements. <br />
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While I can't always pry energy use from my clients, that's what I would like to get because it helps improve my confidence in the work we do. (Many times I get "Oh gosh, the house is a lot more comfortable and our worst bill is down something like $150 - which is nice to hear but not statistically useful).<br />
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<b>Do you want to keep track? I want to help.</b><br />
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I would really like to hear from people on this. Anyone interested in a website that would track use, provide comparison figures, and track before and after ACTUAL results against promised? <br />
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Also, future blog topics anyone want to see? How about performing financial analysis to see how much of your improvements are paid for by energy savings?Ted Kiddhttp://www.blogger.com/profile/14283149266019846669noreply@blogger.com0