Conducts research and holds training programs to create a future in which efficiency is our nation's first energy resource.
State Energy Efficiency Policy Database
Wisconsin
Related Publications & Documents
(Research Report - 3/5/2013)
(Research Report - 2/16/2012)
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(Press Release - 10/3/2012)
(Press Release - 2/16/2012)
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An advocacy organization in the Midwest working to achieve sustainability in energy and transportation.
Wisconsin Utility Policies
On November 10, 2010, the Public Service Commission of Wisconsin issued its final order of the Quadrennial Planning Process, which adopted electricity and natural gas savings goals for Focus on Energy, thereby establishing an EERS in the state. Reaching the goals would require investments in energy efficiency of around 2.5% of utility revenues. Shortly after, the state legislature enacted a law that prohibits Focus on Energy from spending more than 1.2% of its revenues on energy efficiency, leaving the program with similar funding as in previous years, despite growing energy efficiency opportunities and increased demand for energy efficiency services. The legislature also put the Quadrennial Planning Process in doubt moving forward.
Under the 2005 Wisconsin Act 141 (Act 141), oversight of the statewide energy efficiency and renewable resources program called Focus on Energy transferred to the Public Service Commission of Wisconsin. Act 141 requires investor-owned electric and natural-gas utilities to spend 1.2 percent of their annual gross operating revenues on energy efficiency and renewable resource programs, which in 2009 was about $85 million. Act 141 also requires municipal and retail electric cooperative utilities to collect an average of $8 per meter to fund energy efficiency programs. Municipal and retail electric cooperative utilities can collect the dollars and participate in the Focus on Energy program or can elect to operate their own Commitment to Community programs.
Act 141 also allows investor owned utilities (IOUs) to operate voluntary programs with funding in addition to 1.2 percent they contribute to Focus on Energy. These voluntary programs need to be approved by the Public Service Commission and currently, three IOUs operate some level of voluntary programs. A fourth utility is offering a decoupling pilot.
The investor- owned utilities formed the non-profit Statewide Energy Efficiency and Renewables Administration (SEERA) to fulfill their obligations under Act 141. SEERA is required to create and fund Focus on Energy and to contract, on the basis of competitive bids, with one or more persons to administer the programs.
These programs saved over 583,506 MWh in 2009. The Consortium for Energy Efficiency reports 2010 Wisconsin electric utility energy efficiency program budgets totaling $92.3 million and natural gas budgets of $64.8 million.
Reported budgets for energy efficiency programs for 2011, and electricity savings for 2010, are in the State Spending and Savings Tables.
Wisconsin's energy efficiency programs were initiated in the mid-1980s when integrated resource planning — termed the "Advance Plan Process" — was enacted by PSCW. This process is no longer in place and has been replaced by biennial "strategic energy assessments."
Links:
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October 19, 2012
Wisconsin has a statewide energy efficiency and renewable resources program called Focus on Energy, which is funded through a non-bypassable charge on customer bills. There has been no market restructuring or deregulation, so vertically integrated, investor-owned utilities are still regulated providers. One utility, Alliant Energy (Wisconsin Power & Light), has continued to offer a voluntary “Shared Savings Program” to its commercial/industrial customers for which the company is allowed to earn a rate of return on these energy efficiency investments.
The Public Service Commission of Wisconsin oversees the statewide programs and the investor- owned utilities formed the non-profit Statewide Energy Efficiency and Renewables Administration (SEERA) to fulfill their obligations under Act 141. SEERA is required to create and fund Focus on Energy and to contract on the basis of competitive bids, with one or more persons to administer the programs. Focus on Energy has programs in three areas: (1) residential energy efficiency and renewable energy, (2) non-residential energy efficiency and renewable energy (including the business, governmental, institutional, industrial and agricultural sectors), and (3) environmental and economic research and development.
Shaw Environmental & Infrastructure Inc. is the contractor for both residential and non-residential energy efficiency and renewable resource programs. Programs include both electric and natural gas efficiency. The Energy Center of Wisconsin is the contractor for environmental and economic research and development programs. The Public Service Commission contracts with an independent program evaluator.
Wisconsin utilities and the Focus on Energy program reported a combined electric efficiency annual energy savings of 583,506 MWh in 2009.
Reported budgets for energy efficiency programs for 2011, and electricity savings for 2010, are in the State Spending and Savings Tables.
The Wisconsin Focus on Energy Home Performance & Efficient Heating and Cooling Loan Program offers loans up to $10,000 available with no fees or closing costs and 100% of installation costs can be financed. Eligible measures include heating and cooling system, water heating, insulation, and air sealing. More information on the program can be found in the ACEEE report, Energy Efficiency Financing Programs.
Wisconsin Public Service Commission offers its largest energy customers the opportunity to self-direct their CRM funds. Customers must submit a program plan for approval that meets cost-effectiveness standards and includes detailed measurement and verification plans. Approved customers implement their plans and submit quarterly reports. The amount of funding available is based on variable formula and is received upon completion of projects. More information on large customer self-direct programs can be found in the ACEEE report, Follow the Leaders: Improving Large Customer Self-Direct Programs.
Links:
- Wisconsin Act 141, 2005
- Wisconsin Energy Conservation Corporation
- Focus on Energy
- Energy Center of Wisconsin
- Database of State Incentives for Renewables and Efficiency
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March 28, 2013
Under 2005 Wisconsin Act 141 (Act 141), oversight of the statewide energy efficiency and renewable resources program called Focus on Energy, transferred to the Public Service Commission of Wisconsin. Act 141 requires investor-owned electric and natural-gas utilities to spend 1.2 percent of their annual gross operating revenues on energy efficiency programs and renewable resource programs which in 2009 was about $85 million. Act 141 also requires municipal and retail electric cooperative utilities to collect an average of $8 per meter to fund energy efficiency programs. Municipal and retail electric cooperative utilities can collect the dollars and participate in the Focus on Energy program or can elect to operate their own Commitment to Community programs.
Reported budgets for energy efficiency programs for 2011 are in the State Spending and Savings Tables.
Program cost recovery is handled via individual rate cases. A conservation escrow account is used for voluntary energy efficiency and demand-side management programs. Program costs are recovered through rates, the money goes into an escrow account, and then the costs are adjusted, or "trued up," in the next rate case. If utilities spend more than the approved budget, they generally receive cost recovery through the true up. If the amount of actual spending is higher than the amount collected in escrow, the utilities may amortize cost recovery. If actual spending is less than the escrow amount, the PSCW "trues it up" through a reduction in revenue requirement for the next rate period.
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March 28, 2013
The Public Service Commission of Wisconsin issued its final order of the Quadrennial Planning Process on November 10, 2010, which adopts electricity and natural gas savings goals for Focus on Energy. The electricity goals, as a percent of peak load and electric sales, amount to 0.75% in 2011, ramping up to 1.5% in 2014. The PSC also approved natural gas goals of 0.5% in 2011, ramping up to 1% in 2013.
Shortly after the EERS was approved by a Joint Committee of the state legislature, the state limited funding to Focus on Energy to 1.2% of revenues, which resulted in a major reduction in energy efficiency goals. The goals are now approximately 0.75% of sales in 2011, 2012, and 2013 for electricity and 0.5% of sales for natural gas over the same time-frame.
Links:
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October 12, 2012
Decoupling was approved for Wisconsin Public Service Corporation (WPSC) in December 2008 (specified as a “Revenue Stabilization Mechanism”), allowing the utility to pursue a four-year pilot program. WPSC is required to make additional contributions to Focus on Energy. WPSC is also required to pursue three community-based pilots, which will be regularly reviewed (at 2, 12, 24, and 30 months). True-ups occur annually and over- or under-collection is capped at $14 million for electricity and at $8 million for natural gas. (Docket No. 6690-UR-119 (December 2008, modified February 2009);
Wisconsin Electric Power Company submitted a proposed Gas Cost Recovery Mechanism. Approval was granted June 2011. (Docket No. 6630-GF-112).
Links:
- Public Service Commission of Wisconsin docket search
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October 12, 2012
A decision in a recent rate case (Docket 6680-UR-114) of Wisconsin Power & Light (Alliant Energy) allows the company to earn the same rate-of-return on its investments in energy efficiency made through its “Shared Savings” program for C/I customers as it earns on other capital investments (e.g., power plant construction).
Utilities can propose incentives as part of their rate cases, but there have been no such proposals from other utilities recently. Wisconsin did have performance incentives in place in the early to mid-‘90s, but dropped them as the state began investigating restructuring and deregulation.
Links:
- Public Service Commission of Wisconsin docket search
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October 12, 2012
The Public Service Commission of Wisconsin carries out a "Strategic Energy Assessment" every two years. These assessments assess past and future electric energy needs and associated resources available to meet these needs. It also addresses issues that may need to be addressed to ensure the availability and reliability of the state's electric energy supply. This process is for planning only; it yields no regulatory orders or decisions that require actions by affected utilities, such as establishing specific resource goals or required investment levels in energy efficiency.
In April 2008, PSCW initiated a docket as a result of recommendations by the Governor's Task Force on Global Warming to establish targets for energy savings through energy efficiency and conservation, "Investigation into the Adoption and Achievement of Increased Conservation and Energy Efficiency Goals (05-UI-115)." This docket was superseded by the Quadrennial Planning docket (5-GF-191.)
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March 28, 2013
- Cost-effectiveness test(s) used: TRC, UCT, SCT
- Uses a deemed savings database: yes (Deemed Savings Data)
The evaluation of ratepayer-funded energy efficiency programs in Wisconsin relies on both legislative mandates (Wisconsin Act 141) and regulatory orders (PSC Chapter 137). Evaluations are administered by both the utilities and the Wisconsin Public Service Commission. There are no specific legal requirements for these evaluations in Wisconsin. Evaluations are conducted statewide and for each of the utilities. Wisconsin uses three of the five classic benefit-cost tests identified in the California Standard Practice Manual. These are the Total Resource Cost (TRC), Utility/Programs Administrator (UCT), and Social Cost (SCT). Wisconsin specifies the TRC to be its primary test for decision making. A benefit-cost test is required for overall portfolio level screening. The rules for benefit-cost tests are stated in 5GF191 Order.
Links:
- Authority: Wisconsin Act 141, WI Statute 196.374 (3)(d)
- Authority: WI Administrative Code:PSC Chapter 137
- Authority:5GF191 Order, November 2010
- Deemed Savings Data: Appendix B on 2010 Focus on Energy Evaluation Report
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March 28, 2013