State and Local Net Greenhouse Gas Emissions Reduction Programs

State and Local Net Greenhouse Gas Emissions Reduction Programs

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Universal Systems Benefit Program

Program types: Energy Efficiency, Energy Supply
State: Montana

Description

The Universal Systems Benefit (USB) Program offers market-transforming renewable energy, energy efficiency, and funding programs. The Montana Legislature delegated responsibility for the USB Program in 1997 to the Montana Department of Revenue. The state's Revenue Department facilitates the program's negotiated rule-making process and acts as the catalyst, bringing interested parties together. Although the program is administered by the Montana Department of Revenue, USB is implemented entirely by the Montana Power Company and was fully operational in 1999.

USB offers seven market-transformation programs:

E+ Audit for the Home This home audit program offers on-site and mail-in energy audits for homeowners. While on-site audits include installation of certain energy-saving devices, both audits provide homeowners with a report specific to their home that details energy use, along with efficiency recommendations.

E+ Commercial Energy Appraisal This commercial appraisal program focuses on identifying electric conservation opportunities for small commercial customers on Montana Power's electric distribution system. These energy appraisals are currently focused on businesses that have an average peak demand of 50 kilowatts or less.

E+ Commercial Lighting Rebate Program This commercial program offers a prescriptive rebate for the removal of old, less-efficient lighting products that are replaced with high-efficiency technologies. Eligible participants range from small businesses to local and state government agencies.

E+ Business Partners Program This business program offers funding for local energy conservation and load management projects in new and retrofit applications, including commercial, institutional, industrial, agricultural, and multifamily residential facilities/systems. Montana Power solicits proposals for this program through customers, architects, engineers, and other energy efficiency trade allies.

E+ Market Transformation Activities The Northwest Energy Efficiency Alliance (www.nwalliance.org) funds a range of projects and activities to influence energy efficiency for residential, commercial, agricultural, and industrial customers. USB funds from Montana Power electric customers help bring the market-transformation activities of the Alliance to Montanans. Activities under this broad program include the federal ENERGY STAR Program, Betterbricks, the Energy Ideas Clearinghouse, and the Northwest Lighting program.

E+ Programs for Income-Qualified Customers The USB Program provides expanded funding to reach more of Montana Power's income-qualified customers. Programs offered to qualified residents include Montana Power discounts, free weatherization assistance, and participation in the emergency Energy Share program.

E+ Renewable Resource Activities USB funding provides incentives for solar, wind, or geothermal projects. Montana Power evaluates potential projects through a formalized Request for Proposal process.

The company submits an annual report to the state Department of Revenue detailing program implementation progress and future plans. The USB Program is scheduled to run through 2005. The Montana Legislature will address the program duration in the future.

Development

The Montana USB Program was implemented in 1999 as a broader version of existing demand-side management and low-income programs. When the legislature established the USB charge, the state added a renewable portfolio and low-income programs to Montana Power's offerings. All electric and natural gas utilities within the state are required to collect USB funds from their customers. These funds are then dedicated to funding renewable, efficiency, and low-income energy programs. The average consumer currently pays $1.50 per month in electric and natural gas USB charges.

Ratepayers support program implementation costs. Expenditures for 2000 totaled over $5 million. Montana Power Company's largest customers provided an additional $3 million in funding through voluntary participation in USB programs.

Lessons Learned

Before USB, Montana Power ran several traditional demand-side management programs, and it did not have low-income or renewable energy programs. Montana Power found that ending its private programs while ramping up state programs has confused some consumers. Many residents knew that the utility's public benefit programs were ending, but they were not aware that other programs would replace them.

Montana Power also found the high initial costs of some renewable and efficiency technologies were a barrier when working with potential program participants. States and localities considering similar programs should work to educate potential program participants about these technologies.

Benefits

From 1999-2000, Montana Power estimates energy savings of 28, 807 megawatt-hours and over 4, 500 tons of CO₂e reductions. Energy efficiency audits, energy-saving devices, retrofits, and the low-income energy programs under USB provide the impetus for consumers to use less energy, save money, and, as a result, reduce greenhouse gas emissions. In addition, USB is transforming the energy market in Montana by bringing a wider range of energy choices to residential, commercial, agricultural, and industrial consumers.

Contact Information

David RyanMontana Power Company
40 East Broadway
Butte, MT 59701
Phone (406) 497-2322
Email: webmaster@mtpower.com

Website: http://www.mtpower.com