NSPW proposes to implement voluntary utility customer service programs for both residential and business customers.
The proposed residential program, Community Conservation Program – Residential (Residential), would work with Focus on Energy to provide additional energy efficiency services in targeted communities for a two-year period per community. Proposed targeted communities include the city of Eau Claire from 2009-2010; the remainder of Eau Claire County and the city of Menomonie from 2010-2011; and the remainder of Dunn County from 2011-2012. The program seeks to increase participation in Focus on Energy’s Home Performance with ENERGY STAR program, which offers assistance and incentives to single-family homeowners to make their homes more energy efficient. Eligible homeowners include NSPW customers who heat with natural gas and NSPW electric customers who have all-electric heat. Eligible customers may call Focus on Energy or the company, and then the company schedules a time for a Home Performance Consultant to assess the customer’s home. NSPW would provide an incentive of $255 to cover a significant portion of the Home Performance Assessment cost to the customer. Focus on Energy does not provide an incentive for completing the Home Performance Assessment. If the customer follows through with the consultant’s recommendations, the company provides bonus incentives that match most of Focus on Energy’s cash-back rewards for insulation, air sealing, and ventilation measures. No NSPW incentives are given for electric or natural gas measures that do not receive a Focus on Energy incentive. Program outreach is accomplished through cross promotion with Focus on Energy, presentations to local governments, direct customer mailings, newspaper and radio ads, and local events.
The proposed business program includes a series of three-year programs that provide information, energy efficiency technical assistance, educational offerings, and bonus incentives in three counties in the NSPW territory. The targeted counties and proposed program schedule are: Eau Claire County, 2009-2011; Dunn County, 2010-2012; and La Crosse County, 2011-2013. The program NSPW proposes is the Community Conservation Program – Small Business (Business). This program targets its marketing and outreach to small commercial customers, but all NSPW non-residential natural gas and electric customers are eligible. The program offers eligible participants free energy audits, and bonus incentives that are piggy-backed on top of any Focus on Energy incentive the customer can earn for installing energy efficient measures. Bonus incentives are available for installed natural gas or electric measures. No NSPW bonus is offered for a measure that does not also receive a Focus on Energy incentive. Program marketing, educational offerings, audits and incentives are coordinated with the Focus on Energy program.
Because NSPW’s voluntary utility program was filed as a customer service program, no energy savings goals were proposed. The energy savings generated by the program will be tracked by and credited to the Focus on Energy program. The proposed annual business program budget for 2009-2011 is $450,000. This budget breakdown includes $47,500 for program delivery costs and $402,500 for bonus incentive costs. The proposed annual residential program budget for 2009-2011 is $526,500, which includes $144,000 for program delivery costs and $382,500 for bonus incentive costs. No estimate of the program’s cost-effectiveness was provided. The program’s effectiveness will be evaluated annually by the Energy Center of Wisconsin. Measures of program effectiveness will include increased participation in Focus on Energy programs in the targeted community or greater savings per customer in the targeted community.

Focus on Energy, the statewide energy efficiency and renewable resource program, has recently seen an increase in energy savings goals. These goals are expected to continue to increase in the future. Because utility information about customers is confidential, Focus on Energy is having trouble marketing its programs effectively. The Commissioners determined that utilities should provide basic information about customers and energy use to the program.

To accomplish this, the Commissioners approved a waiver of Wis. Admin. Code § PSC 113.0505(2), stating that, pursuant to Wis. Admin. Code § PSC 113.01(2), due to the current energy climate, the state is in an “exceptional or unusual situation”.

In two separate decisions today, the PSCW ordered We Energies to refund a $20.6 million overcollection of 2008 fuel costs, including interest at 10.75 percent through May 2009 over actual sales from April 2008 through December 2008. This amount includes accrual and fuel rules treatment of RSG revenues in 2008. The PSCW also ordered WPL to refund a $12.5 million overcollection of 2008 fuel costs, including interest at 10.80 percent through May of 2009 over actual December 2008 sales. This amount also includes accrual and fuel rules treatment of RSG revenues in 2008.
Energy Utility Rate Setting

On a 2-1 vote, the Commission approved $11,000 in additional intervenor funding to Sierra Club for its participation in two recent cases involving Wisconsin Public Service Corporation and Wisconsin Power & Light.

Commissioners Paul Centolella and Robert Lieberman of the Public Utilities Commission of Ohio and the Illinois Commerce Commission, respectively, are proposing a revision to Module E. The revision would allow load serving entities (LSE) to reduce their load forecast to take into account load reductions that would likely occur when market prices rise during periods when reliability is threatened.

This is a very controversial issue. Wisconsin Commissioners Callisto, Meyer and Azar agreed, in theory, that the MISO tariff should be changed to accommodate the unique circumstances in retail choice states, provided that, those tariff changes do not hurt the non-retail choice states. As the tariff is currently proposed, she said, she believed the risk is too high for Wisconsin to adopt the proposed language. Specifically, she said the proposed language increases the incentives to under predict future demand without setting forth penalties.

The Commission also reviewed the status of current Regional Transmission Organization transmission planning efforts and directed Commission staff to continue to monitor and participate as appropriate.

The Commission approved Wisconsin Electric Power Company’s 2009 voluntary energy efficiency and renewable energy programs consistent with the Commission’s discussion. This involves a component of the Joint Application of Wisconsin Electric Power Company and Wisconsin Gas LLC, both d/b/a We Energies, for Wisconsin Electric Power Company to Increase Its Electric, Natural Gas, and Steam Rates and for Wisconsin Gas LLC to Increase Its Natural Gas Rates.

WEPCO proposes to implement ten energy efficiency and demand response programs. These programs consist of both continuing programs and new programs.

The SEA identifies, describes, and assesses different aspects of Wisconsin’s electric energy picture for the next seven years. The SEA evaluates the adequacy and reliability of the state’s current and future electrical supply (Wis. Stat. § 196.491(2)(a)). The purpose of this EA is to discuss generic issues presented in the SEA and describe their potential environmental impacts. Copies can be downloaded at http://www.psc.wi.gov.

Last week the Commissioners discussed this matter and both Ebert and Meyer
indicated their approval of the order as it was drafted. Azar, however, suggested several modifications to the order, indicating she would author a concurrence. This week, Ebert took his last opportunity to share his thinking about the need to be cautious in making these changes, given
some of the unintended consequences that could result. Ebert wryly
noted his thoughts could be taken with a grain of salt given his short time remaining as Chair.
Ebert did not discuss his opinion at length at the open meeting. For those
interested, you can find his concurring opinion to the order on the Commission
website under Docket 6690-CE-194 .