Cost-effective energy efficiency programs implemented by WPPI and members in 2007 resulted in annual energy savings of 25,035 megawatt-hours (MWh) of electricity and 39,043 therms of natural gas.

Since the programs’ inception six years ago, customers of WPPI member utilities have realized cumulative energy savings of 120,000 MWh per year, which is equivalent to the electricity used each year by 13,500 typical homes. The environmental benefits include preventing the emission of more than 104,500 tons of carbon dioxide — the same as removing 18,000 cars from the road.

This cumulative reduction in diversified demand offsets the need to generate 17 megawatts (MW) of baseload power, and helps reduce the need to build new power plants.

Responding to rising energy costs continues to be one of WPPI’s most persistent challenges. The majority of the recent cost increases have been driven by the rising cost of purchased power. Other major drivers include dramatic increases in railroad costs for fuel delivery, as well as significant increases in fuel prices and transmission rates.

In addition, building new power plants has become extremely expensive. WPPI and its members are fortunate in that we have planned carefully for meeting customers’ energy needs and are not in need of new resources before 2017. Energy efficiency and conservation programs will also be key to reducing the need for costly new plants.

WPPI’s efforts to keep electric costs down while ensuring a reliable energy supply for our member communities take many forms. WPPI has continued to contest wholesale rate increases through aggressive legal intervention. We also audit charges billed by wholesale suppliers, monitor and participate actively in Midwest ISO issues, and continue to advocate for a robust transmission system.

Early in 2008, WPPI was able to announce progress in opposing large wholesale rate increases by two of WPPI’s major power suppliers. In the first case, Wisconsin Electric Power Company requested a 35 percent increase to WPPI. That increase became effective on May 1, 2007, pending final resolution of the case, and was collected subject to refund. WPPI settled the litigation, with the resulting refund of $1.9 million being flowed back to WPPI member utilities.

In the second case, Wisconsin Power and Light (WPL) sought to increase the wholesale rate it charges to WPPI by 27 percent effective January 1, 2007. WPPI was successful in delaying the effective date of the WPL increase until June 1, 2007, thus saving WPPI members and their customers approximately $4 million. Since then, WPPI has continued to fight for a substantial reduction of this increase, reaching a settlement late in 2007. It is estimated that the proposed increase will be reduced by about half. Any overcollections of revenues by WPL after June 1 will be refunded back to WPPI with interest and flowed back to members and their customers in 2008.

WPPI’s ongoing aggressive intervention in cases such as these will help control cost increases for members and their retail customers.