N93 Endorsed Statement on RECP Continuation until OSD announces suspension:
The Department of the Navy (DON) is directing that Navy privatized (PPV) housing project companies continue live billing of the resident energy conservation program (RECP) until we receive guidance from the Office of the Secretary of Defense (OSD) on how to execute an orderly suspension of the RECP as required by the FY20 National Defense Authorization Act (NDAA).
As a result, residents of Navy PPV housing in the RECP program will continue to receive billing statements that may include rebates and also continue to have the responsibility to pay for charges included in their billing statements.
When the Navy receives OSD guidance on the suspension of the Navy RECP we will pass the suspension implementation guidance to the PPV project companies to share with all residents in the program and execute the policy.
If residents have any questions about the RECP program they should contact their utility billing company, the local PPV property manager, or their installation Navy Housing Service Center (HSC).
Resident Energy Conservation Program (RECP)
The Resident Energy Conservation Program (RECP) is in line with the Navy goal to conserve energy and to comply with the Office of the Secretary of Defense (OSD) policy. See more information!
- RECP transfers responsibility for utility consumption to residents of Public Private Venture (PPV) housing
- Rewards and incentivizes conservation
- Savings are reinvested into the PPV project to keep the housing and neighborhoods in good condition
- Navy leadership is out in front to promote program
In 1998, in conjunction with its PPV partners, OSD set forth the policy (see below) for the payment of utilities in PPV housing to encourage energy efficiency in privatized housing units. The RECP represents the Department of the Navy's (DON) next step in establishing an energy conservation program in PPV housing consistent with OSD policy. The program is in alignment with the Department of Defense (DoD) and DON's energy conservation initiatives to reduce dependence on foreign oil, other fossil fuels, and overuse of electricity.
Historically, PPV residents consume more energy than their military or civilian counterparts living in the same community do. These excess energy costs negatively impact PPV projects over the long-term by reducing available capital, which would ultimately be reinvested back into the PPV community, allowing improvements to the property such as renovations and community amenities.
The program is designed to set a reasonable range for normal electricity consumption in PPV housing units. Here are the basic steps:
- OMC establishes "like-type" groups of PPV homes within each of its neighborhoods based on size, number of bedrooms, and year built. The Navy reviews and endorses these groupings.
- Each month, OMC calculates a monthly usage average for each group of homes.
- OMC currently adds a 10% buffer above and below the monthly usage average that results in a normal usage band. The buffers are added to account for variances in the homes and family demographics.
- Residents are required to pay for excess electricity consumption that is above the normal usage band. Residents whose consumption falls below the normal usage band will receive a credit or rebate. Residents within the normal usage band will neither pay nor receive a credit.
- Residents receive a monthly bill showing their month's consumption as compared to the monthly usage average and the normal usage band, along with the money owed or credited.