Order 25599 - Clear River Electric & Water District: 2026 Demand Side Mgmt Filing

On November 10, 2025, Clear River Electric & Water District (CREW)[1], submitted its annual Demand Side Management Program (DSM) proposal for 2026 with the Public Utilities Commission (Commission).  CREW proposed a budget to fund its residential and commercial energy efficiency programs for calendar year 2026.[2]  On December 9, 2025, the Division of Public Utilities and Carriers (Division) submitted a memorandum, recommending approval of CREW’s 2026 DSM Program as filed.[3]

In last year’s filing, for calendar year 2025, CREW proposed a budget of $209,286.[4]  The 2025 actual estimated budget for the 2025 DSM Program was $209,749.[5]  In comparison, the 2026 proposed budget is $207,299.[6]  The 2026 budget proposal is divided into four categories: (1) Residential Programs; (2) Industrial/Commercial programs; (3) Administrative costs; and (4) Community Outreach, Marketing, and Education costs.[7]

            CREW proposed a budget of $104,079 for all of its residential programs in 2026.[8]  The residential programs include: (1) Residential Audit and Weatherization Incentives; (2) Residential ENERGY STAR Offerings; (3) HVAC & Water Heating Program; and (4) Committed for 2024-2025 Programs.[9]

            CREW proposed a total budget of $80,079 for the Residential Audit & Weatherization Program.  This program offers energy assessments and direct installation of measures to help residents reduce energy consumption.  CREW stated that its residential energy assessments “continue to be one of the most effective ways to help customers reduce energy use, lower utility bills, and identify future efficiency improvements.”[10]  Historically, CREW has partnered with Energy New England (ENE) to conduct these assessments.  The assessments provide customers with a comprehensive view of their home’s performance and recommend improvements for energy savings.[11]  Those recommendations tend to focus on weatherization measures, particularly insulation and air sealing.  CREW emphasizes weatherization’s importance as the region continues to experience temperature extremes.[12]

            In 2024, CREW introduced an enhancement to the weatherization program to better serve income-qualified customers. The enhancement offered a streamlined process where rebates are paid directly to contractors, reducing upfront financial barriers.[13]  The proposed rebate remains at $2,250, and eligibility is verified using established income qualification criteria or CREW’s financial hardship list.  CREW also proposed to allocate $10,000 within the budget specifically for weatherization incentives targeting small rental properties (defined as 2-4 units).[14]

            The $80,079 budget is distributed as follows: (1) $21,900 allocated to residential energy audits; (2) $5,000 allocated to direct-install measures; and (3) $53,179 allocated to weatherization incentives.[15]  CREW maintains that the residential audit & weatherization program is one of their most popular and effective pathways for driving energy efficiency improvements with residential customers.  According to CREW, the continuation of this program ensures broad community impact.[16]

            CREW proposed allocating $5,000 for its Residential ENERGY STAR Offerings, maintaining the existing structure and incentive levels of the program for 2025.[17]  The resulting budget is an increase from $4,000 in 2025 to $5,000 in 2026.  CREW stated that the increase was necessary because the program reached maximum expenditure in October of 2025.[18] 

Additionally, CREW proposed $18,000 for its HVAC and Water Heater Program.[19]  This program is now consolidated with the Enhanced Incentive Heat Pump Program, as of Program Year 2025.[20]  CREW highlighted that participation in the Enhanced Incentive Program has been low over the past few years, citing financial barriers and homeowner association restrictions.  Combining this program with the HVAC program gives CREW more flexibility to allocate resources.  CREW also noted that program participation in 2025 has been lower than expected; as of the November 8 filing, expenditures under the budget total approximately 68% of the annual budget.  However, CREW expressed confidence in the long-term trajectory of the market and program.  The 2026 program design aligns with state efficiency standards.  CREW is proposing an increase in this program from the 2025 program year, from $17,000 to $18,000.[21]

Lastly, CREW proposed allotting $1,000 to satisfy 2025 qualified rebates for customers that did not receive a rebate because the funds were depleted in program year 2025.  The cutoff date for 2025 rebates is proposed as March 31, 2026.[22]

CREW proposed a budget of $54,220 for its Industrial and Commercial Programs.  In program year 2025, the actual budget for CREW’s Industrial and Commercial programs was $77,586.  The proposed budget for program year 2026 represents a 30% decrease.  This decrease was because CREW proposed removing its LED Street Light Incentive entirely, a $23,366 decrease.[23]

Within its Commercial and Industrial budget, CREW proposed allocating $15,000 to its Small Business ENERGY STAR OFFERINGS.[24]  This program advances energy efficiency opportunities.  The program has historically seen low participation, but CREW stated that it remains committed to support local businesses in reducing energy costs.[25]  CREW also asserted that it intends to conduct further outreach through in-person engagement to distribute program materials as well as develop a New Business Welcome Packet with information on available programs.  CREW indicated that it wishes to maintain the program as approved in 2025.  It also noted that as of the filing on November 8, 2025, no funds were expended under this program.[26]

Further in its 2026 DSM filing, CREW proposed allocating $39,220 for its 2026 Commercial and Industrial Energy Efficiency Projects.[27]  The program offers a 60% rebate—up to $5,000 per project—and works to ensure support while allowing businesses to benefit within financial and budget constraints.[28]  The programs focuses on lighting controls and LED upgrades, weatherization and HVAC upgrades, and specialized equipment incentives.[29]  CREW stated that it has undertaken efforts to improve its outreach.  It detailed that it believes the program is critical in its DSM portfolio and has chosen to maintain its program year 2025 funding.[30]

            CREW is seeking $23,000 for administrative expenses in its 2026 DSM portfolio.[31]  CREW’s administrative program supports the effective management, oversight, and delivery of CREW’s DSM portfolio.”[32]  CREW detailed that the DSM administration is a collaborative effort involving customer service representatives and the DSM Coordinator to ensuring program integrity and assisting customers with program eligibility and participation.  CREW’s request equals the amount approved in its 2025 DSM portfolio.

            CREW also proposed to maintain its funding of an Energy Efficiency Consultant for $10,000.[33]  This amount equals the amount CREW proposed in its 2025 program year.  CREW emphasized that the consultant helps accurately track energy and cost savings.  CREW first obtained Optimal Energy in 2019 for technical consulting support.  CREW has proposed to continue its partnership with Optimal Energy in 2026 for program review, impact reporting, and regulatory documentation.[34]

CREW is seeking $15,000 for Community Outreach, Marketing, and Education.[35]  This amount is equal to its proposal in program year 2025.   This program will include school outreach, senior events, and community events to share information on rebate programs, energy audits, weatherization, and clean heat.[36]  CREW stated that in program year 2025, staff participated in various outreach events to highlight CREW’s role in advancing energy conservation.[37]  Such events included an education visit with 4^th grade students at Steere Farm Elementary School.  Additionally, CREW participated in the Burrillville Aging Stronger Lunch and Learn events.  CREW also participated in the Green Festival and Pascoag Spring splash to promote programs and to speak directly to customers.[38] 

            Lastly, CREW has allocated $1,000 for Energy Efficiency Management Continuing Education funds.  CREW stated that the funds will be used to support participation in virtual and in-person training sessions, webinars, and workshops.[39]

On December 9, 2025, the Division filed a memorandum of Joel Munoz, Assistant to the Chief Accountant.[40]  Mr. Munoz reiterated the information that CREW provided in its filing and recommended approval of CREW’s 2026 DSM Plan.  He noted that the budget consisted of an actual/estimated carryover of $44,621 and $162,678 in estimated DSM revenue for 2025/2026.  Mr. Monoz provided a budget review for the years 2024, 2025, and 2026.  He then assessed CREW’s residential program; commercial and industrial program, and miscellaneous costs.

Mr. Munoz stated that CREW will not include LED Streetlight Incentive in its budget because CREW made a final payment of $23,366 in 2025.  The Division did not object to CREW’s approach to redirect funds to their audit and weatherization programs.  The Division determined that the program has strong and consistent demand.  The Division also encouraged CREW to continue to align its efficiency criteria for heat pumps with its Clean Heat Rhode Island Program with respect to its HVAC and Water Heater programs.  Mr. Munoz also summarized CREW’s Commercial & Industrial Program review and miscellaneous costs.[41]

The Division concluded that CREW’s 2026 DSM Plan is “reasonably and adequately catered” to meet residential and business demands.  The Division recommended that the Commission approve CREW’s 2026 DSM Plan as filed.[42]