2024 Utility Partner Guidebook

PROGRAM HISTORY, FUNDING, & STRUCTURE

PROGRAM HISTORY Originally formed by the Wisconsin Legislature as part of 1999’s Act 9 and funded by the Utility Public Benefits Fund (PBF), Focus on Energy delivers energy efficiency and renewable energy services for residential, business, and renewable customers throughout the state. In 2001, the Department of Administration rolled out the Focus on Energy Program statewide. In partnership with consumers, utilities, businesses, nonprofit organizations, and governmental agencies, the Program helps residents and businesses make smart energy choices. Per the legislation, Focus on Energy aims to: • Reduce the amount of energy used per unit of production in Wisconsin while improving energy reliability. • Enhance economic development and make Wisconsin firms more competitive. • Reduce the environmental impacts of energy use. • Expand the ability of markets to deliver energy-efficient and renewable energy goods and services to consumers and businesses. • Deliver quantified financial returns on public investments in energy improvements. The original legislation required utilities to fund energy efficiency programs and renewable energy programs through (1) a public benefits fee that utilities collect directly from customers and (2) mandatory utility “contributions,” which utilities recover from customers in rates. The amount of the charge was based on levels of utility expenditures for energy programs prior to the enactment of Act 9. In addition, the state’s five major investor-owned utilities administered and funded several related programs required by the WPSC, which included energy efficiency projects, renewable energy projects, load management, and related measures. Focus on Energy was restructured in March 2006 by 2005 Act 141. This law, most of which took effect July 1, 2007, replaced existing renewable energy and energy efficiency PBF programs with programs that utilities create and fund through contracts with private program administrators, with oversight and approval by the Wisconsin Public Service Commission (WPSC). Since Act 141 requires utilities to pay directly for programs, the state is unable to transfer or otherwise use these funds for general obligations. (From 2002 to 2006, the governor and legislature transferred or reallocated more than $108 million from the PBF to the state’s general fund or for other uses.)