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MADISON – Today, the co-chairs of the Joint Legislative Audit Committee announced the release of an evaluation of the Focus on Energy program by the nonpartisan Legislative Audit Bureau (LAB). Focus on Energy, which provides energy-efficiency and renewable resource programs to utility customers statewide, is administered by a private contractor and overseen by the Public Service Commission (PSC). Funding is provided by electric and natural gas utilities, which recover their contributions from their customers through utility rates.

 

“The audit recommendations should help us make this program better,” said Sen. Cowles (R-Green Bay). “I am hopeful that with the release of this information we can continue to improve the quality of this program by making sure ratepayer dollars are spent effectively.”

 

LAB found that Focus on Energy funding totaled $96.9 million in 2010. The six largest investor-owned utilities provided at least 95.3 percent of this funding each year from 2008 through 2010. For the average residential customers of these utilities, Focus on Energy payments represented approximately 1.0 percent of monthly bills. For non-residential customers, LAB found that payments supporting Focus on Energy varied significantly.

 

In 2010, Focus on Energy provided utility customers with $58.6 million in financial incentives to purchase energy-efficient and renewable energy products and services. Non-residential customers received 57.1 percent of these incentives, residential customers received 27.6 percent, and the remaining 15.3 percent of incentives supported renewable energy products and services. LAB estimated that financial incentives were paid to 78,000 unique customers in 2010.

 

An additional $21.4 million in 2010 expenditures supported program delivery activities, which provide customer support and training and help customers identify, develop, and implement projects. LAB recommended the PSC report to the Audit Committee on the feasibility of measuring the effects of these activities on energy savings and program participation.

 

“The Focus on Energy program does good work promoting energy efficiency in our state,” said Rep. Kerkman (R-Randall). “I hope this audit leads to more transparency and a better public understanding of the program.”

 

LAB’s report includes recommendations for the PSC to improve the information it provides to the Legislature and the public about Focus on Energy. One example of this is to provide annual statements of program costs and benefits for utility customers. To obtain a copy of report 11-13, please visit the Legislative Audit Bureau’s Web site at http://legis.wisconsin.gov/lab/ or call 608-266-2818.