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Summary
According to the Energy Information Administration, Kansas utilities spent $6.8 million on energy efficiency in 2007, saving 34,696 MWh. Investor-owned Kansas City Power and Light, publicly-run Kansas City Board of Public Utilities, and Midwest Energy Cooperative are the primary electric companies that offer energy efficiency programs in Kansas. Midwest Energy has an efficiency financing program that includes both electric and gas measures.
In 2007, the Kansas Corporation Commission (KCC) concluded a general investigation regarding energy efficiency programs. The investigation yielded recommendations to develop a uniform framework for reviewing and encouraging energy efficiency programs (Docket No. 07-GIMX-247-GIV). Another outcome of this general investigation was the opening of two separate dockets—one to address the benefit-cost tests used for evaluating programs (Docket No. 08-GIMX-442-GIV) and the second to examine cost recovery, decoupling, and financial incentives for utilities (Docket No. 08-GIMX-441-GIV).
In its November 14, 2008 order in Docket No. 08-GIMX-441-GIV, the commission chose not to require energy efficiency programs from the state’s electric and natural gas utilities but determined that it would collaborate with utilities as they pursue energy efficiency as a resource. The commission stated that it would consider energy efficiency program proposals that included decoupling, cost recovery, and shared savings performance incentives on a case-by-case basis. Presently, utilities are not required to conduct integrated resource planning.
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| Customer Energy Efficiency Programs |
Kansas does not have any laws or regulatory rules that mandate energy efficiency programs. In its November 14, 2008 order in Docket No. 08-GIMX-441-GIV, the commission chose not to require energy efficiency programs from the state’s electric and natural gas utilities but determined that it would collaborate with utilities as they pursue energy efficiency as a resource. According to the Energy Information Administration, Kansas's utility energy efficiency programs saved 34,696 MWh, 0.05% of total retail sales.
The majority of programs currently being offered by the Kansas utilities are rebate or financing programs. Kansas City Power and Light makes rebates available for commercial and residential customers, home builders and subdivision developers for energy-efficient electric heating and water heating systems. Kansas City Board of Public Utilities (KCBPU) offers commercial customers rebates for lighting, air conditioning, motors, and custom measures and offers residential customers rebates for air conditioning and programmable thermostats. KCBPU also gives rebates to homebuilders that construct ENERGY STAR-qualifying new homes. Midwest Energy has a financing program that includes both gas and electric measures.
The utilities administer the energy efficiency programs.
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Utilities administer and fund programs through customer rates. According to the Energy Information Administration, Kansas utilities spent $6.8 million on energy efficiency in 2007, 0.16% of total spending. This level is a considerable increase over the state’s 2006 spending of $336,000.
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| Energy Efficiency Resource Standard |
While not established by either regulatory requirement or statute, Governor Kathleen Sebelius in her 2007 State of the State address asked energy producers to undertake a statewide consumer education and conservation effort to reduce consumption 5% by 2010 and 10% by 2020.
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Decoupling, cost recovery, and financial incentives were investigated in Docket 08-GIMX-441-GIV before the Kansas Corporation Commission. In November 2008, the KCC chose not to implement a decoupling mechanism but will consider decoupling proposals from natural gas companies with concerns about revenue stability.
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| Reward Structures for Successful Energy Efficiency Programs |
The Kansas Corporation Commission ordered in Docket 08-GIMX-441-GIV that it shall consider proposals from utilities that include decoupling, cost recovery, and shared savings performance incentives. Statute 66-117 allows a rate of return of 0.5% to 2% on energy efficiency investments above the allowed rate of return. No plans have been approved for any utilities.
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| Energy Efficiency as a Resource |
Utilities are not required to conduct integrated resource planning. The Kansas Energy Council—a stakeholder advisory group—produces an annual energy plan for Kansas that includes consideration of energy efficiency and renewable energy resources.
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Last Updated
09/23/2009
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