Docket 17405: Water Heater and Central Heating System Safe Installation Rebates

  • Organization: New England Propane Foundation
  • Applicant: Joseph Rose
  • State/Region: New England
  • Project Start Date: 08/01/11
  • Project End Date: 11/30/12
  • Replicated Rebate: Docket 16816
  • Estimated Total Project Cost: $302,837.00
  • Total Amount Awarded: $302,837.00
  • Award Date: 10/10/11

Project Summary

New England Propane Foundation has requested funds to provide a Safe Installation of Water Heaters and Central Heating Systems to propane consumers. This program is designed to help increase safety and safety awareness in the industry. The participating propane marketer will provide documentation that a safety inspection of the installation was performed before the rebate will be distributed. Rebates will be paid as follows: water heater ($300), furnace or boiler ($200), All rebates are contingent on water heating installation.

Statement of the Project

This project will reward customers with up to $ 500.00 for a combination of $300 for a water heater and an additional $200.00 for the addition of central heating for a total of $500) to pay for a qualified technician to conduct a safety audit of the safe installation of propane appliance(s). The objective is to promote the safe installation of propane appliances. This safe installation program will foster consumer safety awareness and support the proper installation of new appliances that replace older, less efficient models. Additionally, all safe installation appliance rebates must be submitted within 45 days. The safe installation rebate must be awarded to the consumer. It will be up to the propane marketer location to make it available to consumers when they purchase a qualifying unit. In addition, the section below would be included in all rebate application forms: The propane marketer seeking a rebate must submit a full and complete Application form. Submission of the Application form constitutes a representation on the part of the participating propane marketer that the work shown on the form has actually been completed. A safety inspection must be performed by the participating propane marketer after the installation of each new qualifying water heater and the result of that inspection must be documented on the Application form. The safety inspection for qualifying water heater installations must, at a minimum, include the following: 1) a leak test; 2) a pressure test and 3) a flow and lock up test on the regulator[s]. The propane marketer agrees to comply with all laws, rules and regulations governing the installation of the qualifying water heater and with the manufacturer's installation instructions. The Propane Gas Association of New England assumes no responsibility whatsoever for the installation, inspection or testing of the qualifying water heater or any associated gas system and, by issuing a rebate, makes no representation, warranty or guarantee regarding the qualifying water heater or the associated gas system. The Propane Gas Association of New England disclaims any liability for any personal injury, property damage, business losses or other damages of any nature whatsoever, whether special, indirect, consequential or compensatory, directly or indirectly arising from the installation of the qualifying water heater.

Cost Benefit Analysis

A safety inspection helps to ensure a safe installation that can greatly reduce incidents and accidents. In addition this allows the propane installer access to the house where observable safety issues may be addressed. This rebate for up to $500 also ensures that a proper safety inspection of the appliance installation has taken place. The benefit to this aspect far outweighs the safety costs of an improper installation.

Evaluation Statement

Documentation will prove that an appropriate safety inspection of the installation has been conducted before a rebate is issued. It is also important to note that this is a safety program and evaluation will be judged on safety-related metrics including the number of actual safe appliance installation inspections have occurred, as well as any potential documentation where the installer resolved other observable safety issues during the safety inspection of the particular appliance. The final report for this project will provide a list of rebates and names of customers who benefited from the safe appliance installation rebate program. This will allow the industry to keep a more accurate database for effective communication with its customers.

Budget and Statement of Costs

600 Water Heater Rebates $300.00 each $180,000 500 Central Heating Rebates $200.00 each $100,000 1100 Rebate Administrative Charges $17.00 each $18,700.00 Promotion $4137.00