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U.S. Department of Energy Energy Efficiency and Renewable Energy

Energy Incentive Programs, Wisconsin

Updated November 2011

What public-purpose-funded energy efficiency programs are available in my state?

The Reliability 2000 legislation in Wisconsin established a public benefits funding mechanism for energy efficiency, renewable energy, and low-income assistance. In 2010, over $160 million was budgeted across these programs.

Wisconsin's state-wide energy efficiency programs collectively fall under the Focus On Energy initiative. Wisconsin contracts with the Wisconsin Energy Conservation Corporation (WECC) to administer the energy efficiency programs directed at commercial and industrial customers. Federal customers may be interested in several of these programs:

  • The Focus on Energy program provides various types of financial incentives to eligible customers for installing qualified electricity and natural gas efficiency measures. These measures include energy-efficient lighting, HVAC equipment, food service equipment, and specialty equipment such as pre-rinse spray valves and anti-sweat door heaters for refrigeration units, as well as custom projects such as compressed air system upgrades or process improvements. Incentives are also available for new construction and equipment maintenance. Pre-approval is required for incentive amounts beyond $25,000.

  • Through Focus on Energy's Industrial Program, customers can receive free facility audits, training, technical assistance, and energy management benchmarking assistance.

What utility energy efficiency programs are available to me?

Wisconsin's ratepayer-funded energy efficiency programs are administered by the Focus on Energy initiative (see above) for customers of the state's investor-owned utilities. Some small cooperative and municipal utilities run their own efficiency programs, which are profiled by the Database of State Incentives for Renewables and Efficiency (DSIRE).

What load management/demand response options are available to me?

We Energies (WE) offers three load management programs that pay participants for voluntarily reducing their energy use during price spikes in the wholesale electricity market.

  • The Dollars for Power program pays customers based on pre-established bid prices for their load reduction: $0.40, $0.80, or $1.25 per kWh. When market prices dictate, We will make requests for individual participants to curtail. Response to any particular request is voluntary; no penalties are assessed if a participant decides not to provide the full load reduction. To participate, customers must be able to curtail a minimum of 50 kW.

  • The Power Market Incentives program allows customers to stipulate, on a day-to-day basis, how much they are willing to curtail for a posted price. When market prices dictate, WE will post an incentive for load curtailments. Interested participants may respond with an offer to provide a certain level of load reduction for that price. If their offer is accepted, they are committed to provide that load reduction for the time period specified. To participate, customers must be able to curtail at least 500 kW.

  • The PMI Pool program allows a customer, marketer, or agent to combine smaller sites so that the group can participate in a program with the same features as Power Market Incentives initiative (above). The pool operator manages the participating sites. A minimum commitment of 500 kW per PMI Pool contract, and 100 kW for each account, is required.

Xcel Energy offers two incentive programs for peak demand reductions:

  • The Electric Rate Savings program offers financial incentives for peak demand reduction projects at commercial and industrial facilities that can reduce load by 50 kW or more. Participating customers receive a per-kW discount on controllable demand every month, but in exchange must commit to reducing their load to a pre-determined level for up to 150 hours per year.

  • Xcel's Savers Switch program provides customers with a discount on their energy bill in exchange for granting the utility the right to remotely curtail their air conditioning units for up to 300 hours per year. Customers receive $3 per kW connected to Saver's Switch during each month of the year.

Wisconsin Public Service Corp. (WPSC) offers several demand response programs:

  • CG-20 Response Rewards is a "critical peak pricing" (CPP) option in which participating customers already on the company's time-of-use rate (CG-20) receive notifications (at least one hour in advance) of CPP events and then can reduce their loads during the 2-8 hour period, when prices are six times higher than the normal peak prices. In exchange, participants receive 40% lower on-peak and 20% lower off-peak prices at all other times of the year. WPSC also offers a small business version of the program, available to customers on the CG-1, CG-2, and CG-5 rates.

  • The Contracted Direct Load Control program allows WPSC to place control switches on equipment ranging from lights to motors and pumps and shut them off periodically during high demand periods in exchange for bill credits. Shut-off options range, from just summer cycling to year-round load shedding capability (up to 8 hours per day and 100 per year). Remuneration depends on the particular option, but ranges between $4.35/kW to $6.50/kW per month of participation.

  • WPSC also offers an interruptible rider (CP-12). Participants contract for a 200 kW or greater load reduction (with curtail ability up to 600 hours/yr.) subject to WPSC's determination of either economic or emergency conditions on the grid. In exchange, the customer receives reduced rates for its monthly peak demand.

Alliant Energy/Wisconsin Power & Light's Interruptible Programs offer a variety of both voluntary economic and mandatory emergency demand response options.

Madison Gas & Electric offers several interruptible options, as well as a direct load control program.

Utilities in the footprint of MISO (formerly the Midwest Independent System Operator) may enroll interested customers in any of MISO's various demand response offerings, from which they can receive payments for reducing load. Federal customers should contact their local utility representative to inquire about participation.

What distributed energy resource options are available to me?

The Database of State Incentives for Renewables and Efficiency (DSIRE) provides information on programs that offer incentives for renewable distributed generation. The following programs may of interest to federal customers:

  • We offers generous buy-back terms for up to 15 years for electricity from solar and biogas sources through its Customer-Owned Generation program.

  • Xcel (Northern States Power) also offers a buy-back tariff for customer-owned renewable generation.

Are there energy efficiency programs sponsored by the state government?

For information on energy efficiency programs available to federal customers, please see the section above on public-purpose-funded energy efficiency programs.

What additional opportunities are available to me?

Federal customers whose utilities have area-wide supply contracts through GSA (such as Alliant/WP&L), may be able to take advantage of 3rd-party financed energy efficiency projects called utility energy services contracts (UESCs). Information is available on GSA's Energy Center of Expertise Library Page. Federal facilities should contact their account executive to determine the level of each utility's participation.

NOTE: Energy efficiency funds and demand response programs are updated at least annually. Please contact the FEMP webmaster if changes are needed between updates.