The City of Houston and CenterPoint began a public/private partnership in 2006 to provide a comprehensive suite of energy efficiency upgrades to low-income homes in Houston. The intent of the program is twofold: reduce energy consumption and improve quality of life. It was developed as part of the comprehensive plan to reduce energy consumption throughout the City. The expectation is that if we can all reduce energy consumption, there will be immediate savings as well as a longer-term net reduction in demand for costly power generation and infrastructure.

Beyond the economic benefits, this program is also designed to help stabilize the low-income neighborhoods on which it focuses by allowing residents to cut their energy costs and remain in their homes. Many of the program’s clients are elderly or disabled and on a fixed income. In some cases they must make a decision between purchasing food and medicine or keeping the air-conditioning on; this program helps them do both. The homes in these neighborhoods are generally the oldest and the most in need of energy saving measures, yet the homeowners are the least likely among us to be able to afford these measures or to be able to “do-it-yourself.”

REEP offers home weatherization at no cost to residents. It has effectively reduced energy consumption and we feel confident in stating that it is cost-effective.  Our REEP contractors were hired through a competitive, open-bidding process using established industry standards. We asked the contractors to bid on the five weatherization measures, which include attic insulation, weather stripping, window caulking, CFL bulbs and a water heater blanket. These five items were bid as a comprehensive weatherization package. From this bidding process we came to a negotiated price that is ~30% below suggested industry cost, per home.  

All of the prices include labor, material, equipment and overhead (administrative expenses of contractor) and profit. For example, a CFL bulb costs the program ~$2.35, a market competitive price. Because this is a comprehensive program, and not simply a light bulb giveaway, labor, overhead and profit and disposal must be included in the entire bid package. This is not simply changing out light bulbs. It is detailed work that includes pressurizing homes to detect heating/cooling leaks and involves technical requirements and equipment to perform these operations properly.

To date, $7 million has been spent for this program, about $1,000 per home. Approximately $4.5 million has been provided through money that state law requires utility companies to provide for such purposes and from money available as part of a rate settlement with CenterPoint Energy.  The remaining, $2.5 million comes from TIRZ money that is specifically set aside for low-income neighborhoods and the homeless and housing bond fund. We believe this is an efficient and effective program that has resulted in a net cut in energy consumption that has put money back into the pockets of homeowners.