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RESIDENTIAL ENERGY CONSERVATION PROGRAM (RECP) PROGRAM INFORMATION

Background • In 1998, the Under Secretary of Defense established policy for resident paid utilities in public-private

venture (PPV) family housing. • Requires separation of rent and utilities. • Requires transfer from project owner paid to resident paid utilities. • PPV Partners have agreed to implement program consistent with OSD policy.

• Issue: Residents of rental housing typically consume more energy when not responsible for utilities – there is no incentive to conserve. • Excess energy costs impact PPV projects over the long-term and reduce net operating income,

long term sustainment accounts and resident quality of life. Program • RECP promotes and rewards the responsible use of energy in PPV Housing. • Cost savings from RECP are reinvested back into the housing communities. • Includes a 10% buffer above and below the baseline. Anticipate that, with this buffer, roughly 32% of

homes will be above the buffer. 32% will be below the buffer and eligible for a rebate. Roughly 36% will be within buffer and pay no excess costs.

Frequently Asked Questions 1. Isn’t a utility allowance already part of my BAH?

Yes. An allowance for “normal” utilities is a part of the BAH. BAH includes an allowance for electricity, gas or other heating fuels, and water/sewer. The BAH includes the cost of utilities based on averages from residents living in the private sector who are directly responsible for paying for their utilities.

2. How is my usage target determined? Your house will be combined with other housing units into like-type groups (LTG) of metered homes that have similar characteristics that affect home energy performance such as the square footage, age, and condition of the home. Each month the average usage of utilities for the LTG are developed to create a Normal Usage Band.

3. What utility rate will I be charged when living in PPV housing? You will be charged the same rate the PPV partner is charged to provide utilities to your home. By law, the PPV partner is not allowed to charge you a higher rate than they pay for utilities.

4. How can I be sure my home is energy efficient? Residents can request their property manager perform an evaluation of the home to ensure that all of the appliances and energy using features of the home are in good order. The property manager will also provide tips on how to make your home more energy efficient.

5. Is there a waiver policy if a member in my family has a medical circumstance that requires us to use more

electricity? Yes, a waiver from the RECP can be requested if your family member is enrolled in the Exceptional Family Member (EFM) program & you can demonstrate the condition has a direct impact on utility usage.

6. How do residents and their families benefit from RECP? Dollars saved through conservation will be put right back into the PPV project in the form of capital reinvestments such as new housing, renovations, community amenities, etc. Residents will earn rebates if they conserve more electricity than amounts identified in normal usage bands.

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7. How will this affect a member’s Basic Allowance for Housing (BAH)?

There will be no impact to the BAH allowance.

8. Why do residents have to pay for electricity when it is included in the rent? Rent is equal to the BAH. The BAH is computed based on three local price date points: (1) median current market rent, (2) average utilities (including electricity, heat, and water/sewer), and (3) average renter’s insurance. In other words, rent pays for typical utility usage.

RECP promotes and rewards the responsible use of energy in PPV Housing by incentivizing electricity conservation. Impact to date: Dept of Navy implemented RECP 2010 in Hawaii and South Carolina at 7K privatized units. Results: • 8.5% reduction in usage relative to same months in 2010. • Over 10 million kilowatt hours (kWh) conserved & over $2 million worth of electricity conserved. How does RECP work? • PPV homes are grouped by similar construction style/size, bedroom count and location into Like Type

Groups (LTG). • The utility usage for the LTG is measured monthly to establish an average with a 10% buffer applied above

and below to create a “normal usage band”. • In any given month a resident using more than the normal usage band of electricity is responsible for

paying for the excess. Those using less receive a rebate. • Payments and overages are calculated based on the rate the local utility provider charges the PPV partner. • RECP does not impact BAH which is computed on three local price date points: (1) median current market

rent, (2) average utilities (including electricity, heat, and water/sewer), and (3) average renter’s insurance. BAH includes the cost of utilities based on averages from residents living in the private sector who are directly responsible for paying for their utilities.

• Waivers from the RECP can be requested if a family is enrolled in the Exceptional Family Member (EFM) Program & the condition has an impact on utility usage.

• Wounded Warriors are exempt but may pay voluntarily. What’s the plan for San Diego? Phase 1: Communication (Jan-Mar); Pre-mock billing (Apr-Jun); Mock billing (Jul-Sep); Live billing (Oct). Includes these housing communities with installed meters:

Terrace View (236)

Paradise Gardens (46) Bonita Bluffs (75)

Home Terrace (85) Chollas Heights (412) Chollas Historical (7)

Gilmore Terrace (244) La Mesa Park (56)

Pomerado Terrace (120) Hilleary Park (37)

Ramona Vista (88) Eucalyptus Ridge (290)

Woodlake (480 River Place (78)

Prospect View (84 Bay View (723)

Phase 2: Communication (May-Jul); Pre-mock billing (Aug-Oct); Mock billing (Nov-Jan); Live billing (Feb 14). Includes these housing communities where meters will be installed by April.

Murphy Canyon, Santo Terrace (957); Aero Ridge (414); Orleck Heights (698); Canyon View (250); Naval Medical Center (4); and Naval Base San Diego (2)

Learn More:

www.youtube.com/NavyHousing and http://navylifesw.com/sandiego/housing/SaveEnergy/