6.2. ERMUSR 02-12-2019 - Laserfiche WebLink

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DMDMf// //////S/�'► Position Statement Sustainable CIP Improvements for Consumer-Owned Utilities Background diminishing returns on the investment. LED lighting Consumer-Owned Utilities (COUs) are those that are is increasingly not only the preferred option, but either owned and operated by a municipality (city) the only option. People who can afford to buy new or a Rural Electric Cooperative. COUs participate appliances find that most are energy efficient and in Minnesota's Conservation Improvement Program the existence of a rebate has little effect on what (CIP). COUS believe CIP has achieved significant they purchase. Meanwhile, for a low income family success toward reducing Minnesotans'energy that can't afford the new appliance, a rebate is not spending, catalyzing sustainable and renewable that helpful. In fact, utilities are beginning to report energy production in the state, minimizing new that in order to meet their CIP goals, including electric generation construction, and reducing current minimum expenditure requirements, low- greenhouse gas emissions, including carbon dioxide. income customers are actually subsidizing others. From the cooperative and municipal utilities'point Further, the current CIP can have the adverse effect of view, it has helped our members and citizens of discouraging efficient electrification, including use electricity more wisely and has facilitated the expanded use of electric vehicles, because it rewards successful widespread adoption of new efficient reduced use of electricity regardless of the benefits technologies. It is, however, time to update the CIP of expanding production to meet the needs of program so that it continues to be a successful and efficient electrification. CIP in its current form is beneficial operation. unsustainable and increasingly ineffective. Current Status Principles for a new approach CIP in its current form has reached maturity. CIP Municipal utilities have been working closely with needs to be modernized in order to encompass new the electric cooperatives, and consulting with a technologies, meet the evolving views of society number of non-governmental organizations (NGOs), regarding expanded but efficient electrification, and to develop a modernized CIP that recognizes the to take a broader view on overall energy efficiencies, good points of the current program while updating conservation, and carbon reduction. it to meet current demands and expectations. Early in the process, the COUs adopted the following Many of the things CIP currently incentivizes have now been deployed to a point of saturation and thus continued on next page O { i • • . -----• 0,0 l y € r 1 {fe h�'td-s� e ° IIi tlr°i t€ Many of the items the legacy CIP promoted, including efficient appliances, have been deployed to the saturation point. 2019 State Position Statements /3 107