The Public Service Commission of Wisconsin (PSC) recommended, on March 27, 1997, creation of a $166 million a year state fund to support energy conservation and renewable energy development. State Senator Brian Burke and State Rep. Rosemary Potter will both introduce bills designed to capitalize on the cost savings and pollution reduction that can be achieved by implementing energy conservation programs and developing renewable energy resources. The vast majority of these programs would help provide energy conservation measures for residential and small business customers.
Lately, Wisconsin's biggest electric companies have been dramatically
cutting investments in energy conservation and other customer services
in preparation for deregulation. The policy came into question recently
as power shortages threatened to paralyze Southeast Wisconsin. The
situation caused many businesses and public officials to ask why better
planning hadn't been done.
"People in Wisconsin have some of the lowest electric bills in the
nation because for many years utilities did energy conservation work as
a matter of course and allowed consumers to pay for it through their electric
bill," says Keith Reopelle, of Wisconsin's Environmental Decade.
"The energy saved was available to meet growing demand and reduced the
need for new plants and more air pollution. But when the electric
utility drops these programs and customers are forced to purchase and implement
them individually, far less conservation happens. This is extremely unfortunate
given the huge savings that can now be obtained for customers with new
advanced conservation programs."
The PSC voted unanimously to recommended establishment of the Public Benefits Fund to implement energy conservation and renewable energy development into the 21st century. The fund would consist of $100 million per year for efficiency and conservation, $59 million for low-income weatherization and bill assistance, $5 million for renewables and $2 million for environmental research.
The PSC recommended funding the programs through a charge on electric and gas utilities. Residential rate payers will contribute the same amount for these services that they did in 1993 - about $4 per month. One major difference is that local utilities would no longer have a monopoly on how these funds are spent. The funds would instead be administered competitively among existing utilities and independent providers of conservation and renewable energy services.
Also included in the proposed legislation is a portfolio standard for electric utilities in Wisconsin. The portfolio standard requires that utilities develop "new renewable energy resources" and that those resources represent 4% of each utility's contribution to the Wisconsin power grid by the year 2010.
The proposal draws support from a wide array of business, civic and public interest organizations, including the Wisconsin Federation of Cooperatives, the Municipal Electric Utilities Association, the International Brotherhood of Electrical Workers, the Wisconsin Community Action Program Association, the Citizen's Utility Board, the Badger Fishermen's League, and of course, the Wisconsin's Environmental Decade.
The PSC calculated the amount of energy conservation that could cost-effectively occur in a Statewide Technical and Economic Potential (STEP) Study. The PSC found that Wisconsin could reduce energy usage by 35% over 20 years through a variety of measures, such as process improvements in manufacturing, lighting efficiency measures in the commercial sector and fuel switching for residential needs. All of the measures would pay for themselves through energy savings. The potential is great, and the fact that any business could compete to receive these dollars means that this fund will also help to jumpstart a bigger and better energy services industry in the state.
In approving the public benefits proposal, the PSC agreed with environmental and low-income advocates that spending levels in Wisconsin are now too low to foster a significant independent market for energy conservation or renewable energy. Nor can lower-income residents afford to take the very prudent conservation measures that are available, such as insulation of homes.
If passed by the state legislature, the Public Benefits Fund and Advisory Board will ensure that Wisconsin takes advantage of cost-saving opportunities while continuing to make progress toward minimizing the environmental impact of energy production in Wisconsin. Wisconsin's electric energy production system, which relies heavily on fossil fuels and especially coal, is a primary contributor to many of our worst air pollution problems, including smog, acid rain and global warming.
Also impacted by energy production are 305 Wisconsin lakes and river segments where public health warnings recommend limiting consumption of sport fish because of mercury contamination primarily derived from coal driven power plant emissions. We can dramatically reduce these emissions by emphasizing conservation and renewables in meeting our new energy needs. You can help make it happen by contacting your state legislators and asking them to vote for the public benefits proposal recently approved by the PSC.
Wisconsin's nuclear plants are rapidly approaching the end of their useful life and will leave a huge gap in the power supply of our state. With energy use rising by 2% per year and the onset of retail competition making out-of-state sales of electricity likely to increase, our power resources will be considerably strained.
We have a wide range of options for meeting the energy crunch effectively, including conservation, alternative fuels, cogeneration, and baseload natural gas plants. Policy makers seem to agree that developing these alternative resources will help to lower future energy costs, stabilize supplies, develop Wisconsin's economy, and reduce pollution. But accomplishing this will require the political will to make a major industry do something significant. Our utility companies need to continue to invest wisely for the future, not just comply with the whims of the competitive market.
Just call the legislative hotline (1-800-362-9472) during normal business hours to find out the name and phone number or address of your state legislator. Be sure and ask for the new individual toll free number that each legislator now has for their office. Then call or write them directly.
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