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Energy-Efficiency Funds and Demand Response Programs, Wisconsin

Updated July 2007

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. The energy efficiency and renewable energy programs are administered by the Division of Energy within the Wisconsin Department of Administration.

These energy efficiency programs, collectively referred to as Focus On Energy, replaced the energy efficiency programs that were previously offered by the state's utilities. Wisconsin has contracted with the Wisconsin Energy Conservation Corporation 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 several types of financial incentives and grants 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 motor and compressed air system upgrades or process improvements. Incentives are also available for maintaining equipment, and grants are available for studying the feasibility of proposed energy efficiency projects.
  • Through Focus on Energy's Industrial Program, customers can receive free facility audits, training and technical assistance, and energy management benchmarking assistance.

What utility energy efficiency programs are available to me?

WE Energies (WE) offers four energy efficiency programs to its customers:

  • The Prescriptive Incentive Program provides rebates for one-for-one replacements of commercial and industrial equipment ranging ranging from food service equipment to variable frequency drives.
  • The Custom Incentive Program provides incentive payments for more complex energy conservation projects, and also offers partial funding for energy audits and feasibility studies. All projects and studies must receive pre-approval.
  • The Request for Proposal (RFP) Incentive Program allows customers to bid for incentives to conduct comprehensive energy efficiency projects that can provide demand reductions of 100 kW or greater to WE. Proposals that combine multiple energy conservation measures and ones that employ leading edge technologies are favored. Up to $1 million in incentive money is expected to be available for each of the semi-annual bid cycles.
  • The New Construction Services Program provides technical assistance, design incentives, and measure incentives to reduce electric demand and energy use of new construction projects by 20-40%.

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

WE Energies (WE) offers three Load Management Incentives 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. 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's OperationWise initiative 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 $3.08 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 for the entire year (January through December).

Wisconsin Public Service Corp. (WPSC) offers the Voluntary Energy Reduction Program. The customer must be able to reduce load by 50 kW or more, and may choose from six price notification thresholds (ranging from $0.10 to $5.00 per kWh). Upon being paged (with at least 30 minutes' notification), the customer chooses whether or not it can reduce by its pre-set amount (which can be modified on a day-ahead basis). If the customer then reduces the load (for between two and seven hours), it is remunerated for the kWh reduced at the pre-determined price level.

WPSC also offers the Large Commercial & Industrial Interruptible Rider, in which customers can contract for a given load reduction (with curtailability up to 300 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 year-round consumption.

Alliant Energy's (Wisconsin Power & Light) Interruptible Programs offer a wide variety of both voluntary economic and mandatory emergency demand response programs. One example is the Experimental Emergency Energy Purchase—One Hour Notice program, in which participants agree to self-generate at least 50 kW of capacity during notified events, and then receive a monthly payment of $0.40/kWh for actual generation requested and received by the utility. In another program, the Experimental Market-Priced Load Curtailment Rider, Alliant notifies participants with an offer to voluntarily curtail load, indicating the curtailment hours and a price quote or estimate. Two versions of this program are available: Day-Ahead and Day-Of, each with different periods of advance notification and remuneration terms. To participate, customers must be able to curtail at least 500 kW. For a complete listing of load management programs available, visit Alliant's Tariff Web Page.

What distributed energy resource options are available to me?

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

Wisconsin's Focus On Energy offers grants (for training, feasibility studies, business and marketing development, and implementation) as well as cash rewards for installing or expanding renewable energy systems at businesses. Rebates for wind energy, solar hot water and PV (20 kW or less) systems cover 25-35% of project cost, capped at $35,000. Rebates for wood energy systems cover 25% of project cost, capped at $5,000.

WE sponsors renewable energy incentives to non-profits and governments of up to 50% of the installed cost (max. $100,000) of systems ranging from anaerobic digesters to wind turbines.

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 also have energy efficiency opportunities available with utilities (such as Alliant Energy and Wisconsin Gas) that have area-wide contracts with GSA and, by extension, all other federal agencies. Federal facilities should contact their account executive to determine the level of participation by their local utility.