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Summary
South Dakota's utilities historically have not funded or offered much in the way of customer energy efficiency programs, but recent initiatives are changing this picture. According to the Public Utility Commission, the state spent around $2.35 million in 2007, or 0.7% of 2007 retail electric sales.
Recent initiatives are changing this picture, however. Two investor-owned utilities have recently had performance incentives approved. A collaborative effort, the South Dakota Energy Smart Initiative, is bringing together partners to pledge their support of improving energy efficiency in South Dakota. Partners include both investor-owned and publicly owned utilities, which report numerous plans and new efforts to offer energy efficiency programs and services to their customers. One utility had a one-year pilot energy efficiency program approved by the South Dakota Public Utilities Commission in 2008. Another utility had a full portfolio of programs approved in 2009.
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| Customer Energy Efficiency Programs |
Historically, South Dakota's utilities have not funded or offered much in the way of customer energy efficiency programs. Recent initiatives are changing this picture, however. A collaborative effort, the South Dakota Energy Smart Initiative, is bringing together partners to pledge their support of improving energy efficiency in South Dakota. Partners include both investor-owned and publicly owned utilities, which report numerous plans and new efforts to offer energy efficiency programs and services to their customers. In July 2008, the South Dakota Public Utilities Commission approved a one-year pilot energy efficiency program for Otter Tail Power (Docket EL07-011). This pilot began in the fall of 2008 and plans to spend just under $160,000 annually to save 1,143,446 kWh annually and 416.2 kW in capacity. .
In March 2009, the commission also approved a revised portfolio of energy efficiency programs proposed by MidAmerican Energy Company, which began running programs in South Dakota in 2007 (Docket EL07-015). The proposal plans to spend $3,098,000 over three years to save 1.7 million kWh, 601 kW, and 56,400 Dth. Xcel Energy has also filed plans to spend $960,000 over one year to save 4.56 million kWh and 2,894 kW in capacity annually; their filing is currently under review at the commission.
Other utilities have been providing similar programs for years. Black Hills Power has been providing energy efficiency programs to their customers since the late 80's. The rural electric cooperatives also offer customers energy efficiency rebates. Other utilities such as Missouri River Energy Services and Heartland Consumers Power District, G&T providers for municipalities in SD, offer limited energy efficiency programs.
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Black Hills Power has been providing energy efficiency programs to their customers since the late 80's. They typically spend approximately $350,000 annually on such programs, but don't have an estimate of savings. The rural electric cooperatives spend approximately $1,700,000 annually on energy efficiency rebates, but don't give an estimate on savings. Heartland Consumers Power District, supplier to municipalities, estimates to have spent $300,000 in 2007 to save 82,760 kW and 86,655 kWh in SD.
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| Energy Efficiency Resource Standard |
None in place or proposed.
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Not in place or proposed.
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| Reward Structures for Successful Energy Efficiency Programs |
The SD Public Utilities Commission recently approved rate programs for 2 utilities (MidAmerican and Otter Tail) with a financial incentive mechanism based on performance. Before approving those, the commission allowed Montana-Dakota Utilities to recover lost margin for their programs since 2006. In addition, the commission is working with Xcel to provide similar programs in South Dakota.
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| Energy Efficiency as a Resource |
Not in place.
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Last Updated
10/13/2009
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