6.2. ERMUSR 04-14-2009 - Laserfiche WebLink

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Minnesota's municipal utilities support enemy conservation. The wise use of energy is in keeping with the main goal of our electric and gas services - to provide good service at a reasonable price. Helping customers improve their efficiency helps the environment, helps the utility defer the need to invest in generating facilities and helps consumers manage their energy bills. Municipal utilities'support for energy conservation has been demonstrated by their continuing efforts to meet state energy conservation mandates. Municipal utilities were early leaders in developing programs to manage and control customers' peak. Many municipal utilities have been operating energy efficiency programs for 20 years or more. Many others have become increasingly engaged in developing and implementing conservation programs. In 2007, the Minnesota legislature passed a statewide CIP goal of 1.596 annual conservation savings for electric and natural gas utilities. Some suggest an even higher goal should be established. However, the 1.596 target is generally considered to be a difficult goal, and we believe that utilities and the Department of Commerce (DOC) should be allowed to ramp up to the 2010 target date before the Legislature considers any additional changes. Minnesota municipal utilities currently spend about x12 million per year on conservation programs. After operating active conservation programs for many years, some utilities have picked all the low- hanging fruit and are finding it more difficult to maintain cost-effective conservation programs. Minnesota's municipal utilities are serious about conservation, but we are also serious about spending our ratepayers' dollars wisely and about not raising rates to pay for unproven or highly speculative conservation programs. We believe that the legislature should take a cautious approach toward any further conservation spending mandates. Minnesota's policy regarding CIP. should adhere to the following . principles: No additional CIP requirements should be imposed on municipal electric or gas utilities until we have had an opportunity to fully implement and to gauge the im- pact and effectiveness of the 2007 legislation. Ultimate- decision-making author- ity regarding municipal utility CIP energy efficiency and Ioad man agement programs-must remain with the local govierning'body of the utility. . Conservation Improvement Programs (CIP)