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N1 ANI�.�/ <br /> ,11101 <br /> MINNESOTA MUNICIPAL UTILITIES ASSOCIATION <br /> 12805 Highway S5 • Suite 212 • Plymouth, MN 55441-3859 • 763.551.1230 • 800.422.01 19(MN) • Fax 763.551.0459 <br /> Conservation Improvement Programs <br /> Since 1993, Minnesota law has required municipal electric utilities to spend 1% of their <br /> gross revenues on conservation initiatives known as conservation improvement programs <br /> (CIP). In 2001 the Minnesota State Legislature expanded municipal involvement in these <br /> programs by increasing CIP spending on electric operations to 1.5% of gross revenues, <br /> gradually reducing the amount of spending on load management that could be used to <br /> meet municipal CIP spending requirements. The new law also imposed new CIP <br /> reporting requirements on both electric and gas municipal operations. <br /> Through MMUA, municipal electric utilities launched a major effort to ensure that public <br /> power systems had the tools and information necessary to comply with the new <br /> mandates. This effort: <br /> • Educated municipal utilities regarding the new CIP requirements and the need to <br /> be able to demonstrate compliance. <br /> • Provided liaison with the Department of Commerce on municipal CIP matters; <br /> • Raised more than $100,000 to fund the development of new programs an program <br /> materials specifically tailored to help municipal electric utilities meet the new CIP <br /> requirements. <br /> • Developed a CIP primer to help municipal utilities understand the new <br /> requirements and how to comply with them. <br /> • Developed nine residential and commercial programs to be used by municipal <br /> electric utilities in meeting the new CIP mandate. Program materials include <br /> technical data, recommended rebate or assistance levels, forms, marketing <br /> materials and tracking spreadsheets. <br /> It will be several years before the law is fully effective and its impact can be evaluated. It <br /> would be inadvisable to make new CIP changes in the law until we know how well it is <br /> working. MMUA will resist efforts to impose additional CIP spending requirements or <br /> mandate additional CIP responsibilities on municipal electric utilities, particularly before <br /> municipals have had the opportunity to evaluate the impact of the current CIP program. <br /> MMUA will resist any effort to transfer control of municipal CIP programs away from <br /> local communities. <br /> However, it is already apparent that a "one size fits all" approach to CIP reporting is not <br /> practicable. For example, very small municipal electric utilities are finding that the <br />