Citizens Utility Board and Pub Service agree on energy efficiency, conservation, decoupling

From a news release issued by the Citizens Utility Board:

Madison and Green Bay, Wis. – The Citizens Utility Board (CUB) and Wisconsin Public Service Corporation (WPS) have finalized an agreement to develop a program that will help consumers save energy. The agreement was completed on February 17, 2009.

“CUB and WPS collaborated on the issues to develop a program that will provide substantial benefits to customers and the environment by aggressively pursuing energy efficiency and conservation,” said Charlie Higley, CUB executive director.

CUB and WPS are now working with Focus on Energy, which provides energy efficiency and renewable energy services to residents and businesses in Wisconsin, to design the details of the program, with implementation scheduled for later this year.
The principle components of the program include the following:

+ WPS will increase its annual contribution to Focus on Energy in each of the next four years, 2009 through 2012. With more funds, Focus on Energy will be able to provide additional energy efficiency and renewable energy services to customers of WPS;

+ CUB, WPS, and Focus on Energy will develop energy-saving programs for three communities in the utility’s service territory. The programs will feature innovative rate options, enhanced energy efficiency options, and other ways for customers to reduce their energy use;

+ WPS reduced electric and gas rates for residential and commercial customers by $2.1 million (these changes took effect in January 2009);

+ WPS reduced the “fixed charge” and increased the “volumetric charge,” which are the two major components of electric and natural gas rates. These changes help low-income and other customers who already use a minimum amount of energy, and can encourage other customers to use less energy (these changes took effect in January 2009);

+ WPS will use a “revenue stabilization mechanism,” also known as “decoupling,” which will assure WPS of a certain level of revenue for its electric and natural gas service regardless of weather and other conditions. WPS’s revenue level will be trued up annually. If WPS’s revenues are higher than expected, customers will receive refunds. If WPS’s revenues are lower than expected, WPS will recover the difference over the next year.