2001 AGN OCT 02 I07 - Laserfiche WebLink

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CITY OF COLTON Item #7 AGENDA REPORT For the City Council Meeting of October 2, 2001 TO: Honorable Mayor and City Council p FROM: Thomas K. Clarke, Utilities Director'-`� SUBJECT: Residential Compact Fluorescent Light Rebate Program DATE: September 19, 2001 BACKGROUND Compact Fluorescent Lighting (CFL) is a technology that provides as much light as a standard incandescent lamp while using only 25% of the energy. CFL lamps also last 10 times longer than standard lights. These lights have become a major way that residential customers can easily reduce the cost of lighting. However the initial costs,averaging $7 to $15 each,has been a major barrier to many customers who might otherwise purchase these more efficient and longer lasting products. Colton Public Utilities is proposing a rebate program where customers would be sent a coupon that would give them a $5.00 rebate off the purchase price of a compact fluorescent lamp. This rebate program and would be managed by ECOS Consulting which would provide the coupons and customized educational materials, handle relations with local retailers, process coupons, and reimburse the retail stores. DISCUSSION / ANALYSIS Staff has studied these marketing strategies and found that in store coupons can be an effective method to promote the use of compact fluorescent lights at minimal cost to the utility. Staff has considered working with local retailers to set up a rebate program but the complexities of developing and managing such a program has prevented action. Staff has been investigating other options for more than two years and has contacted companies providing various marketing programs for compact fluorescent lights. One company "ECOS" of San Dimas, California has developed and operated a number of successful lighting promotion projects including in store coupons and customer education bill stuffers. ECOS has worked with California Utilities: SCE, SDGE, PGE, LADWP, SMUD, and Riverside. Their rebate programs have enlisted the participation of major retailers such as Home Depot, Rite Aid, Ace Hardware Stores, and some grocery outlets. Staff has found this to be the only company providing the necessary services to implement an effective Residential Compact Fluorescent Lighting Rebate Program. We recommend that the City of Colton Implement a Residential Compact Fluorescent Lighting Rebate Program, and approve a professional services agreement with ECOS Consulting to implement and operate the program. ALTERNATIVES Many electric utilities have promoted the use of compact of compact fluorescent lamps by giving out free lamps, mail in rebates and sales at reduced prices by the utility or contracted venders. These programs have been studied and can be more costly, have lower customer participation rates, or can limit customer choice of products or venders. If we do not implement a Residential Compact Fluorescent Lighting Rebate Program we could be depriving our customers the Page 1 of 2