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BACKGROUND:
Wisconsin's Public Benefits program, which encompasses energy conservation, renewable energy development and low-income services, was created in 1999 as part of the Reliability 2000 package promoted by then Governor Thompson and adopted by the Wisconsin Legislature. The establishment of a Public Benefits fund was supported not only by environmental and low-income advocacy organizations, but also consumer and business groups, senior citizens, labor unions, retirees, and many utilities.
FUNDING:
Public Benefits Funds are managed by the Wisconsin Department of Administration (DOA). Investor-owned utilities have 3 years to transition funds (previously spent by utilities internally for energy efficiency programs). Municipals/Co-op-owned utilities can opt in* to the Dept. of Administration managed program or provide services themselves.
ELIGIBILITY FOR PUBLIC BENEFITS SERVICES
*Because specific municipals and co-ops are not participating, their customers are ineligible for certain public benefits funded activities, such as incentives, grants, technical assistance, audit cost-sharing, and low interest loan programs.
Overview of 1999 Act 9
Eligibility -Service Territories of Participating Electric Providers
Principal Components are:
Transmission Divestiture
Holding Company Asset Cap Modification
Public Benefits
- Low-Income Weatherization and Bill Assistance
- Environmental/Energy Efficiency Funding
- Funded by $48.3 million/yr existing utility expenditures
- Funded by $15 million/yr additional funding
- Renewable Portfolio Standard
Renewable Energy Funding in Act 9
- Allocates 4.5% of $63.3 million
- Encourage customer applications/uses of RE
- Educate public on benefits of RE
- Continue resource assessment and R&D activities
- Cost-sharing for customer-owned RE systems
Renewable Energy in Act 9 Renewable Portfolio Standard
- Requirement is on Electric Retailer
- Excludes hydro operating before 1/1/98
- Based on energy, not capacity
- NSPW (now Xcel Energy) already meets requirement
- 0.5% by 1/1/02 (3,580 gWh/yr)
- 2.2% by 1/1/12 (4,580 gWh/yr)
- Existing qualifying renewables (excludes hydro as noted above): 500 gWh/yr
- Fines of $500,000 for noncompliance
See PSC 118 Rules and Procedures for Implementing a Renewable Portfolio
1999 Wis. Act 9 (Statute interpreted: s. 196.378, Stats.) created a renewable portfolio standard, requiring electric providers to meet certain minimum percentages of their retail sales with renewable resources. The minimum percentage gradually increases, as follows:
Year 2001: 0.5 percent of total retail electric sales.
Year 2003: 0.85 percent of total retail electric sales.
Year 2005: 1.2 percent of total retail electric sales.
Year 2007: 1.55 percent of total retail electric sales.
Year 2009: 1.9 percent of total retail electric sales.
Year 2011: 2.2 percent of total retail electric sales.
In lieu of providing renewable energy to its customers, an electric provider can purchase a renewable resource credit. Under s. 196.367(3)(a), Stats., the Commission must "promulgate rules that establish requirements for the use of a renewable resource credit, including the amount of a renewable resource credit." This rule addresses the requirements and procedures for the use of renewable resource credits.
Administration of Energy Conservation Funds
- All Public Benefits Funds are managed by the Wisconsin Department of Administration (DOA)
- Utilities have three years to transition to $63.3 million to DOA
- Municipals/Co-ops can opt in to Dept. of Administration managed program or provide services themselves
- $15 million/yr in new Energy Efficiency funding is available once fees are collected
- DOA will bid out Administration to Not-for-Profit corporations
- DOA is required to conduct administrative review of Public Benefits Programs in 4 years
Source: Wisconsin Department of Administration
Public Benefits Energy Efficiency and Renewable Energy Program
Service Territories of Participating Electric Providers
Alliant Energy
Argyle Electric & Water Utility
Belmont Municipal Light & Power
Benton Electric & Water Utility
Bloomer Electric & Water Utility
Cadott Light & Water Dept.
Cashton Light & Water
Centuria Municipal Electric Utility
Consolidated Water & Power Co.
Cornell Municipal Light Department
Cumberland Municipal Utility
Dahlberg Light & Power Co.
Eau Claire Energy Cooperative
Elroy Electric & Water Utility
Gresham Water & Electric Plant
Kiel Utilities
La Farge Municipal Utilities
Madison Gas & Electric
Mazomanie Electric Utility
Medford Electric Utility
North Central Power Co.
Northwestern Wisconsin Electric Co.
Pardeeville Public Utilities
Pioneer Power & Light Co.
Price Electric Cooperative
Princeton Light & Water Department
Rice Lake Utilities
Richland Electric Cooperative
Scenic Rivers Electric Cooperative
Shawano Municipal Utilities
Shullsburg Electric Utility
Spooner Municipal Electric Utility
Stratford Water & Electric Department
Superior Water, Light & Power Co.
Viola Municipal Electric Utility
We Energies
Westfield Electric Company
Wisconsin Public Service Corp.
Wonewoc Water & Light Department
Xcel Energy
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