Wisconsin needs to increase investment in energy efficiency, study says

MILWAUKEE, WISCONSIN - A draft study by a state energy think tank suggests Wisconsin can reduce the need for new power plants and save natural gas if the state steps up its investment in energy efficiency.

The study, prepared by the Energy Center of Wisconsin, concludes that "an average of up to $75 million to $120 million per year could be spent cost-effectively on statewide programs aimed at improving energy efficiency in Wisconsin homes and businesses."

Spending at that level for five years could eliminate the need for a major new power plant, and save enough electricity to power up to 240,000 homes, the Energy Center of Wisconsin says in its new report, which was released for comments The study was funded by Wisconsin's electric and natural gas utilities and prepared by the non-profit, Madison-based Energy Center of Wisconsin.

Wisconsin now spends $37 million in state funds, paid through a charge of up to $2.67 a month on utility customers' electric bills, to fund energy efficiency programs. In addition, about $40 million in spending is expected by the state's utilities in 2006, the Public Service Commission estimates.

But the state government funding for energy efficiency has been cut by 40 percent in the past two state budgets, as both Gov. Jim Doyle and the state Legislature have authorized the transfer of funds collected from electric customers on monthly bills to help balance the state budget.

In all, about $100 million in energy efficiency spending has been cut in recent years.

Results of the study were released as Doyle and key lawmakers in the energy arena prepare to work together on legislation designed to implement the recommendations of a bipartisan task force on renewable energy and energy efficiency. In a report last fall, the group recommended that Wisconsin pass legislation requiring that 10 percent of the state's electricity come from renewable sources such as wind turbines by 2015, up from the current 4 percent.

The draft study recommends investing in energy efficiency by beefing up programs designed to make manufacturers' processes more efficient, make newly built buildings more energy efficient and continue to foster use of compact fluorescent light bulbs by homeowners.

"The new report will help us set goals for energy efficiency and renewables in the state and shows us the most efficient ways to meet those goals," said Dan Ebert, chairman of the state Public Service Commission, in a statement.