Describes the first year of an experiment involving design, implementation, and analysis of a pilot pricing, conservation, and heating systems control experiment in 264 apartments in four buildings. The results and experience in the United States will be used to guide the pricing decisions of the municipal district heat utility and the conservation and air quality strategies of the Krakow development authority. Development of a price incentive strategy involved considerations of public policy toward fixed-income occupants and ownership of energy metering. Thermostats were installed to permit occupant control, and building-level conservation and control techniques were implemented. Physical constraints required the use of German "cost allocator" metering technology at the apartment level. Final subsidy or "pseudo-pricing" design included building level incentives as well as apartment performance inducements. Results include insights on communication and cultural impacts and guidance for future testing as well as energy conservation effectiveness values.

KEYWORDS: year 1995, testing, domestic, energy consumption, metering, pricing, district heating, flats, energy conservation, incentives, experiment, behaviour, occupiers, thermal comfort, thermostats, radiators, Poland