Wisconsin Legislature: PSC 137.06(2)(e)

PSC 137.05 Minimum requirements of statewide energy efficiency and renewable energy programs.

(1) Programs for all customers. The statewide programs shall address the energy efficiency and renewable resource needs of all customers of participating energy utilities, municipal utilities, and retail electric cooperatives, except for the energy efficiency needs of those customers served by a utility-administered program under s. PSC 137.07 or a large energy customer self-directed program under s. PSC 137.09.

(2) Renewable resource programs for large customers. The statewide programs shall use a portion of the utility revenues collected from each large energy customer, including large energy customers who are participating in a self-directed energy efficiency program under s. PSC 137.09 and large commercial, industrial, institutional, or agricultural customers as defined in s. PSC 137.07 (1), to provide renewable resource programs to these customers.

(3) Environmental benefits. The statewide programs shall deliver programs that result in environmental benefits, as identified by the commission, either on-site or at the generation level.

(4) Programs for local units of government and agricultural producers.

(a) The statewide programs shall allocate at least 10 percent of the moneys collected under s. 196.374 (3) (b) 2., Stats., to programs to increase the energy efficiency of local units of government and agricultural producers. These programs are required to pass a portfolio level test of net cost-effectiveness, as determined by the commission.

(b) If the commission determines that the energy utilities cannot spend the full amount of moneys under par. (a) on cost-effective programs to serve local units of government and agricultural producers in any program year, the energy utilities shall allocate these unspent funds to programs to serve commercial, institutional, and industrial customers in the following program year.

(5) Promoting markets. The statewide programs shall include initiatives and strategies that address the needs of individuals or businesses facing the most significant barriers, as determined by the commission, to creating or participating in markets for energy efficiency and renewable resource products and services.

(6) Environmental and economic impacts of energy use. The statewide programs shall initiate and fund research and development projects, at the direction of the commission, that support sound public policy and provide information to policymakers, program administrators, utilities, and the public about the environmental and economic impacts of energy generation, delivery, and use.

(7) Effective program delivery. The statewide programs shall initiate and fund market research projects that support and enhance the effective delivery of statewide programs. These projects shall be coordinated with the commission and with the independent third-party evaluator who contracts with the commission, as provided in sub. (12), to avoid any conflicts of interest. A statewide program administrator may not conduct any market research related to establishing quantitative baseline data or related to studying the availability of energy efficiency savings if the research is used to measure program impacts.

(8) Grant and benefit opportunities. The statewide programs shall provide an equivalent opportunity for all eligible customers to participate. Statewide programs shall provide each customer class, on an annual basis, the opportunity to receive grants and benefits in an amount equal to that recovered from the customer class. If a customer is participating in a self-directed program under s. PSC 137.09, that customer’s participation in the statewide programs shall be limited to the amount of revenues that the customer contributes to them through s. 196.374 (3) (b) 2., Stats. Statewide programs shall coordinate with utility-administered, voluntary utility energy efficiency and renewable resource programs, ordered programs, and large energy customer self-directed programs to avoid duplication of effort and of program offerings in overlapping territories.

(9) Data collection. The program administrator shall, using the commission’s database tracking and reporting system, collect and record for each program, by customer class:

(a) KW, kWH, and therm savings.

(b) Performance metrics.

(d) All administrative and program delivery costs.

(e) Any other information the commission requests.

(10) Data to commission and independent evaluator. The program administrator shall provide all information and data collected through statewide programs to the commission and the independent third-party evaluator upon request.

(11) Priorities. The program administrator shall assign priority status to implementing programs that reduce growth in electric and natural gas demand and usage, facilitate energy efficiency and renewable resource market development, help market providers achieve higher levels of energy efficiency, promote energy reliability and adequacy, avoid adverse environmental impacts from the use of energy, and promote rural economic development.

(12) Cost-effectiveness. The program administrator shall deliver energy efficiency and renewable resource programs that pass a portfolio level test of net cost-effectiveness, as determined by the commission. The program administrator shall screen each energy efficiency and renewable resource program for net cost-effectiveness at least once a year. An independent third party, contracted by the commission, shall conduct all market assessment and evaluation activities necessary to measure the impact and cost-effectiveness of all statewide programs. The commission’s administration of the evaluation contract shall be paid by funds from the statewide energy efficiency and renewable resource programs, at a level determined by the commission.

(13) Performance goals and reporting. The commission shall, in consultation with the program administrator, establish annual and multi-year performance goals for the statewide programs. These goals shall be consistent with commission goals, priorities, and measurable targets under s. 196.374 (3) (b) 1., Stats. The program administrator shall provide monthly activity reports and semiannual performance results to the commission.

History: CR 06-139: cr. Register July 2007 No. 619, eff. 8-1-07.

PSC 137.06 Procedures to receive contributions from municipal utilities and retail electric cooperatives.

(1) Invoice forms. The energy utilities shall design invoice forms for municipal utilities and retail electric cooperatives that elect to contribute the fees they charge under s. 196.374 (7) (a) and (b) 2., Stats., to statewide programs. The participating municipal utilities and retail electric cooperatives shall use these forms to send in their collections.

(2) Procedures for fee contributions to statewide programs.

(a) At the end of each quarter, each participating municipal utility and retail electric cooperative shall inform the energy utilities of the dollar amount of fees it has collected for energy efficiency programs in the previous quarter. Participating municipal utilities and retail electric cooperatives shall deliver this information to the energy utilities within 15 working days after the quarter concludes.

(b) The energy utilities shall verify the amount collected by each participating municipal utility or retail electric cooperative.

(c) When the energy utilities have received the information specified in par. (a), they shall produce an invoice for each participating municipal utility or retail electric cooperative and deliver the invoice to the municipal utility or retail electric cooperative.

(d) Within 30 working days after it receives the invoice, the participating municipal utility or retail electric cooperative shall send a check to the address specified by the energy utilities for deposit in the fund for statewide programs.

(e) The energy utilities shall take reasonable steps to ensure that participating municipal utilities and retail electric cooperatives remit payments completely and on a timely basis.

(3) Reports. The energy utilities shall record the payment of each municipal utility or retail electric cooperative and create reports that include each municipal utility’s and retail electric cooperative’s cumulative contributions for the fiscal year.

History: CR 06-139: cr. Register July 2007 No. 619, eff. 8-1-07.

PSC 137.07 Utility-administered programs for large commercial, industrial, institutional, or agricultural customers.

(1) Definition. In this section, “large commercial, industrial, institutional, or agricultural customer” has the same meaning as “large energy customer” under s. 196.374 (1) (em), Stats., unless the commission specifies a different definition by order.

(2) Funding energy efficiency programs for large commercial, industrial, institutional, or agricultural customers. The funding available in any year for all the energy efficiency programs the commission has authorized an energy utility to offer to its large commercial, industrial, institutional, or agricultural customers under s. 196.374 (2) (b) 1., Stats., shall equal the revenues collected from the energy utility’s customers who are eligible for the utility-administered programs, less the funds set aside under s. PSC 137.05 (2) for statewide renewable resource programs. The commission shall determine the annual funding level available for these programs and inform energy utilities in writing at least 9 months prior to the beginning of the statewide program year.

(3) Energy efficiency programs for large commercial, industrial, institutional, or agricultural customers.

(a) An energy utility requesting to administer or fund one or more energy efficiency programs for large commercial, industrial, institutional, or agricultural customers in its service territory under this section may file a request with the commission at any time. The commission shall consider requests it receives at least 6 months before the start of the statewide energy efficiency and renewable resource program year for implementation in that program year.

(b) Each request to administer or fund an energy efficiency program under this section shall include:

1. A description of the program that includes the target market, eligible measures, delivery strategy, marketing and communications strategy, incentive strategy and potential market effects.

2. A plan prepared jointly with the program administrator that describes how statewide and utility-administered programs will be coordinated with large energy customer self-directed programs, ordered programs, and voluntary utility programs offered during the same period.

3. A description of the program’s consistency with the commission’s most recent study of available energy efficiency savings.

4. Annual and multi-year performance targets that are consistent with commission goals, policies, and priorities.

5. A program time frame that is consistent with the statewide program year.

6. A portfolio and program level cost-effectiveness analysis that is consistent with par. (c) 5.

7. An administrative and program delivery budget for the first year of operation.

8. Any other information the commission requests.

1. Be limited to offering energy efficiency programs to large commercial, industrial, institutional, or agricultural customers in the energy utility’s service territory. If a customer is participating in a self-directed program under s. PSC 137.09, that customer’s participation in any utility-administered program under this section shall be limited to the amount of revenues that the customer contributes to the utility-administered program through s. 196.374 (3) (b) 2., Stats.

2. Provide an equivalent opportunity for all eligible customers to participate. Utility-administered programs shall coordinate with statewide programs and with large energy customer self-directed programs to avoid duplication of effort and of program offerings in overlapping territories.

3. Be evaluated by an independent third party. The commission shall contract with the independent third-party evaluator, unless it determines that it is reasonable to allow the energy utility to contract with the evaluator. In that case the commission shall oversee the contracting process and approve the energy utility’s selection of the independent third-party evaluator. The energy utility shall pay for the evaluation of the program, as determined by the commission, from retained utility revenues that the energy utility would otherwise have expended on statewide energy efficiency programs.

4. Be designed in a manner that prevents the energy utility or any of its affiliates from selling or installing energy efficiency processes, equipment, or appliances.

5. Pass a portfolio level test of net cost-effectiveness, as determined by the commission. The energy utility shall screen for net cost-effectiveness at least once a year.

6. Result in environmental benefits, as identified by the commission, either on site or at the generation level.

(d) The energy utility shall:

1. Assign priority status to implementing programs that reduce growth in electric and natural gas demand and usage, facilitate energy efficiency market development, assist market providers in achieving higher levels of energy efficiency, promote energy reliability and adequacy, avoid adverse environmental impacts from the use of energy, and promote rural economic development.

2. Establish annual and multi-year performance goals that are consistent with the program goals, priorities, and measurable targets established under s. 196.374 (3) (b) 1., Stats. At a minimum, the energy utility shall provide quarterly activity reports and semiannual performance reports to the commission.

3. Using the commission’s database tracking and reporting system, collect and record for each program, by customer class:

a. KW, kWH, and therm savings.

b. Performance metrics.

c. Non-energy benefits.

d. All administrative and program delivery costs.

e. Any other information the commission requests.

4. Provide all information and data the energy utility collects for its utility-administered programs to the commission and the independent third-party evaluator upon request.

(e) The commission shall consider all of the following when deciding whether to approve a program proposed under par. (a):

1. Whether the program is in the public interest.

2. Whether the program meets the minimum requirements of par. (c).

3. Whether the program includes appropriate energy efficiency measures.

4. Whether the proposed budget is within the level of funds available.

5. The likelihood the program will achieve its goals.

6. The level of coordination with statewide programs under s. PSC 137.05, voluntary utility programs under s. PSC 137.08, large energy customer self-directed programs under s. PSC 137.09, and ordered programs and the potential for disrupting the overall ability of energy efficiency efforts in the state to meet the goals, priorities, and measurable targets established under s. 196.374 (3) (b) 1., Stats.

(4) Approval, denial or modification of requests for utility-administered programs. An energy utility may only administer or fund a program under this section with the commission’s prior approval. The commission shall issue its decision to approve, deny, or modify an energy utility’s proposal to administer or fund a program under this section in writing, within 40 working days after receiving the proposal. If the commission denies or modifies a proposed utility-administered program it shall explain its reasons. The energy utility may revise and resubmit a proposed program that the commission has denied.

(5) Modifying or discontinuing a utility-administered program or an ordered program.

(a) An energy utility may request the commission to authorize the modification or discontinuation of a program it administers or funds under this section at any time. No energy utility may modify or discontinue such a program without the commission’s prior approval.

(b) Requests for discontinuation of an ordered program shall be made as part of a proceeding the commission conducts under 196.374 (3) (b) 1., Stats.

(6) Return of funds. The commission may require that the energy utility deliver any unspent funds of an energy efficiency program approved under this section to the energy utilities, to fund the statewide programs.

History: CR 06-139: cr. Register July 2007 No. 619, eff. 8-1-07.

PSC 137.08 Voluntary utility energy efficiency or renewable resource programs.

(1) Definition. In this section, “voluntary program” means an energy efficiency or renewable resource program that an energy utility voluntarily proposes for commission approval under s. 196.374 (2) (b) 2., Stats.

(2) Request to administer or fund a voluntary program. An energy utility may file a request with the commission at any time to administer or fund one or more voluntary programs in its service territory. The commission shall consider requests that it receives at least 6 months before the start of the statewide energy efficiency and renewable resource program year for implementation in that program year.

(3) Required information. An energy utility requesting to administer one or more voluntary programs in its service territory shall provide the information specified in s. PSC 137.07 (3) (b) 1., 4., 6., 7., and 8., plus the following information:

(a) A proposed reporting schedule.

(b) A description of the energy utility’s proposed database tracking and reporting system.

(c) A description of how the energy utility will coordinate its voluntary program with statewide programs under s. PSC 137.05, utility-administered programs under s. PSC 137.07, and ordered programs.

(d) An evaluation, measurement, and verification plan.

(4) Prior approval of voluntary programs.

(a) An energy utility may only administer or fund a voluntary program with the commission’s prior approval.

(b) The commission shall consider each of the following factors when deciding whether to approve a voluntary program:

1. Whether the program is in the public interest.

2. The likelihood the program will achieve its goals.