Investments in Energy Efficiency

Recent PSC Ruling on Energy Efficiency is Positively Ground Breaking

By Stephen Heins

Alliant Energy's Shared Savings Program Given a New Lease on Life and Higher Return on Investment in Wisconsin

 

The most recent Wisconsin Public Service Commission (PSC) decision on July 20, 2005, must be considered an important ruling for the future of energy policy in Wisconsin. With this decision, Wisconsin became the first state in the U.S. to take the bold step of recognizing utility investments in energy efficiency as equivalent to investments in new power generation.

 

Given the fact that the cleanest, least expensive kilowatt is the one that is not used, it is surprising that more states have not devised a regimen whereby its utilities receive the same return on investment for provable energy efficiencies as they receive for new or existing sources of electricity.

 

There are several benefits for such well-run utility programs. The energy efficiencies:

• Reduce long term energy bills for all customers, including business and residential customers
• Reduce demand for new power plants & transmission lines
• Reduce business costs that will stimulate economic development
• Increase global competitiveness by keeping electric rates lower
• Reduces emissions that contribute to national and international environmental problem
• Create long term job opportunities for energy efficiency systems and service providers Improve national security by easing energy dependence
• Identify efficient new technologies that also improve work place environs and thereby productivity