The document summarizes the growth of utility energy efficiency programs in the Midwest over the last ten years. It discusses how the Midwest Energy Efficiency Alliance (MEEA) has played a key role in supporting these programs by designing and administering programs, evaluating technologies, promoting best practices, and advancing policy. The presentation notes that while traditional programs focusing on lighting, appliances, and commercial and industrial incentives have achieved significant savings, utilities will need to explore new program areas and approaches to sustain savings given rising codes and standards and program saturation.

1. MEEA Policy Webinar
The Growth of Utility Energy
Efficiency Programs in the
Midwest over the Last Ten Years
September 6, 2012

2. MEEA’s Role in the Midwest
• Nonprofit serving 13 Midwest states
• 10+ years serving states, energy offices, utilities
and communities
• Staff of 25 in Chicago
• Actions
– Designing & Administering Energy Efficiency Programs
– Evaluating & Promoting Emerging Technologies
– Regional Voice for DOE/EPA & ENERGY STAR
– Coordinating Utility Program Efforts
– Delivering Training & Workshops
– Advancing Energy Efficiency Policy
– Promoting Best Practices

3. The EE Story (Current)
• Now: Low hanging fruit still around
– ‘Traditional’ suite of incentive programs
• Lighting, refrigerators, C&I
– CFLs, lighting are 70%+ electric savings
– HVAC/water heaters most of gas savings
• Challenging for gas utilities to meet goals
– Some exploration of behavior change
– Some piloting of new areas
– Challenge of updated building codes and
increasing appliance standards

4. MEEA’s Program History
Current Programs:
• Refrigerator Recycling (2002 – present)
• Building Operator Certification (2003 – present)
• Lights for Learning (2004 – present)
• HVAC Training and Retail Incentives (2008 – present)
• Home Performance with ENERGY STAR (2009-present)
• BPI and Building Science Training (2010-present)
Early Programs:
• Change A Light (2001 – 2008)
• Midwest Building Solutions (2005 – 2006)
• Room AC Recycling (2005 - 2006)
• LIHEAP CFL Program (2006 - 2007)

5. The EE Story (Future)
• Future: Finding a new portfolio
– Lighting savings going down
– Some program saturation
– Need ‘new’ programs
• Whole home (HPwES, air sealing, etc)
• Systems work (HVAC systems, smart homes, etc)
• Behavior programs (changing the customer habit)
• Education
• Building Energy Codes (adoption, training and
compliance_
– Challenges
• Cost effectiveness (non-energy benefits not counted)
• More complex (contractors, systems, etc)

6. Future Midwest Efficiency Targets and Funding
2010 $1.06 billion
2015 $1.58 billion
Minnesota Wisconsin
1.5% elec current
0.63% elec currently
1.5% gas current
0.48% gas currently Michigan
1% elec by 2012
0.75% gas by 2012
Iowa Ohio
1.4% elec currently 2% elec by 2019
1% gas currently gas in discussion
Illinois Indiana
2% elec by 2015 2% elec by 2019
1.5% gas by 2017 gas none yet
Kentucky
2010 EE funding Voluntary elec and gas
2015 EE funding Missouri
(projected) IRP process
Sept 2011

7. Estimated Annual Investment in Energy
Efficiency in the Midwest
$1.800 EERS Legislative
Legislation Committee
• IL Gas • WI EERS
$1.600 Admin Order overturned
• IN Electric
Earlier Statewide EE
$1.581
$1.400 • MN
Admin Order
EERS Legislation • WI Electric,
1983 – Pilot legislation Gas
• MI Electric,
1991 – CIP requirement
$1.200 adopted
Gas
• OH Electric
Exec Order
Earlier Statewide EE • IA Gas, $1.191
$1.000
Billions
• IA Electric
1990 – Initial legislation
1996 – Legislation
$0.800 updated EERS
Legislation
• IL Electric
Earlier Statewide EE • MN Electric,
$0.600 • WI Gas
1999 - Public Benefit
Fund Adopted
$0.400
$0.390
$0.200
$0.000
2002
2013
2000
2001
2003
2004
2005
2006
2007
2008
2009
2010
2012
2014
2015
2011
January 2011

8. Growth of MEEA Staff
30
25 25
24
20
18
15 15
12
10 10 10 10
7 8 Total MEEA Staff
5 5.5
0
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

9. Growth of MEEA Membership
160
147
140
134
120
119
100 101
80
74
60 56
40 40 43 46
40 Total
26 Membership
20
0
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

10. Growth of MES Conference
Attendance
600
500 483
408
400
375
301
300
274
200 199
Total MES Conference
174 148
Attendance
100
0 0 0 0
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

11. Growth of MEEA Programs
14
13
12
11
10
9
8 8
6 6 6
5
5 5 5
4
3 Total Number of Programs
2
0
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

12. Growth of MEEA Policy
14
Initiatives
12 12
12
10
8
6 6
6
5 5
4 4
3 Policy Initiatives
2
0 0 0 0
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

13. Our Presenters
• Dan York, ACEEE
– Report , “Three Decades and Counting”
– What has happened in the Midwest
• Diane Munns, MidAmerican Energy
– Overview of Utility’s Program Approach
– Lessons Learned from 10 years of EE programs
• Karen Rhodes
– Overview of Utility’s Program Growth
– Lessons Learned
– Benefits of Utility’s Long-term Commitment to EE

14. Three Decades and Counting:
Midwestern Foundations of Customer
Energy Efficiency Programs
Dan York, Ph.D., Utilities Program Director
American Council for an Energy-Efficient Economy
dwyork@aceee.org 608-243-1123
http://aceee.org

15. American Council for an
Energy-Efficient Economy (ACEEE)
The American Council for an Energy-Efficient Economy is a
nonprofit, 501(c)(3) organization that acts as a catalyst to
advance energy efficiency policies, programs, technologies,
investments, and behaviors
ACEEE was founded in 1980 by leading researchers in the energy
field. Since then we have grown to a staff of more than 50.
Projects are carried out by ACEEE staff and collaborators from
government, the private sector, research institutions, and other
nonprofit organizations.
15

16. Roots of today’s customer energy efficiency
programs go back 30+ years
• Programs arose in the 1970s as responses to energy
“crises” and environmental concerns.
• Next phase was utility “demand-side management,”
(DSM) which grew rapidly in 1980s; practice became
fairly widespread.
• By 1990s DSM and “integrated resource planning”
(IRP) were well established.
16

17. Rise of DSM and IRP
DSM and IRP marked fundamental shifts in utility
planning and operation; two key new paradigms:
(1) Customer demand could be affected by actions and
initiatives taken by utilities working with customers; and
(2) Energy efficiency is an energy resource capable of
substituting for energy supply resources in order to meet
customer energy needs.
17

18. Midwestern Pioneers of Customer Energy
Efficiency Programs
DSM and IRP was not just a “coastal” idea (California,
the Pacific Northwest and the Northeast).
Three Midwestern states were among the pioneering
states to enact DSM and IRP in 1980s (with some
program roots in the 1970s):
• Iowa
• Minnesota
• Wisconsin
18

19. ACEEE began tracking and comparing state
utility energy efficiency programs in 2000
• ACEEE’s 1st Utility Scorecard published in 2000 based
on 1993 and 1998 data; results?
• MN #5
• IA #7
• WI #8
• ACEEE’s Utility Scorecard Update published in 2002.
No total composite scoring, but MN, IA and WI
remained among leaders.
• Same story for ACEEE’s 3rd National Scorecard on
Utility EE programs: IA, MN and WI in top 15 on
different metrics (spending and savings).
19

20. “Surprise” Twist in the Story of IRP and DSM:
“Deregulation” and “Restructuring”
State efforts to deregulate electricity markets led to a
50% decline in DSM spending as such programs didn’t
seem to fit the new utility business model.
Efforts to preserve customer energy efficiency programs
led to new funding mechanisms (“public benefits
charges”) and new administrative structures, in some
cases non-utility administration of programs.
20

21. Utility Customer Energy Efficiency Program
Spending 1993-2010
NOTE: Natural gas EE programs existed before 2006; ACEEE began tracking
natural gas programs in 2006 as data first became available for this type of national tracking .

22. 2000s: Customer EE programs rebound and
accelerate to reach new heights
• In 2006 ACEEE published its first State Scorecard,
which included metrics for a variety of state level
policies and programs; utility programs largest single
share of score.
• Scoring for utility and public benefits energy efficiency
programs includes policies supporting such programs,
such as EERS, decoupling or lost revenue adjustment,
and shareholder incentives for successful customer
EE programs.

23. The Midwest’s Early Pioneering States:
IA, MN and WI, have continued to be leaders for
Utility and Public Benefits Policies
• 2008 State Scorecard for just Utility and Public Benefits Policies:
• Minnesota: ranked 4th
• Iowa: 9th
• Wisconsin: 10th
• 2009 State Scorecard
• Minnesota: 5th
• Iowa: 9th
• 2010 State Scorecard
• Minnesota: 5th
• Wisconsin: 7th
• Iowa: 9th

24. Biggest News Story of 2000s: “Rapid Start
States” burst onto the Midwestern EE Scene
• Policies were enacted in Ohio, Michigan and Illinois that rapidly
increased the funding and commitment to customer energy
efficiency programs. Prior to these policies, there had been little
funding for such programs in these states.
• ACEEE research has shown that these states (and most others
with EERS) are largely meeting savings targets. They have
quickly ramped up programs.
• And promising recent development: Missouri is on the way with
new policies and regulatory decisions to support a greatly
expanded portfolio of customer programs and utility investment in
customer energy efficiency.

25. The 2011 Scorecard Rankings: All EE Policies (not just utility
and public benefits policies)

26. Most Improved States (2011)

27. Electricity DSM Budgets
2009 vs. 2010
4.50%
4.00%
3.50%
2010 Budgets as % of Revenues
3.00%
Budgets as % of Revenues
2009 Budgets as % of Revenues
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%

28. Electricity Savings 2008 vs. 2009
2.50%
2.00%
Savings as % of Retail Sales
2009 Savings as % of Retail Sales
2008 Savings as % of Retail Sales
1.50%
1.00%
0.50%
0.00%

29. Why do it? Top reason: cheapest resource available
The cost of saving energy vs. generating it from new sources.
12
Levelized cost of electricity (cents/kWh) (2007$)
10
8
6
4
2
0
Energy Efficiency Wind Natural Gas Coal Nuclear
(a) Friedrich et al. 2009 (b) Generation costs from Annual Energy Outlook 2009
29

30. What’s Ahead? Changes and Challenges
• Programs are stretching to meet and sustain high savings.
• Continuing economic slow-down dampens program activity and
impacts.
• Codes and standards are moving baseline levels of energy
efficiency upward.
• New technologies and program approaches are emerging to
capture additional savings.
30

31. More Changes and Challenges
• “Smart grid” anyone? Much hype on benefits, including energy
efficiency…experience to date limited, much to learn.
• As we seek high savings from programs, importance of creating a
new business model for utilities and energy efficiency becomes
more critical (effectively addressing utility financial interests)
• And what about new environmental objectives, especially the
possibility for renewed and expanded efforts to reduce GHG?
• Oh, and then there’s turmoil and changed outlooks for natural gas
markets.
31

32. References
Three Decades and Counting: A Historical Review and Current
Assessment of Electric Utility Energy Efficiency in the States. D.
York, P. Witte, S. Nowak and M. Kushler. June 2012. ACEEE
Report Number U123
A National Review of Natural Gas Energy Efficiency Programs. D.
York, P. Witte, K. Friedrich and M. Kushler. January 2012.
ACEEE Report Number U121
The 2011 State Energy Efficiency Scorecard. M. Sciortino, M.
Neubauer, S. Vaidyanathan, A. Chittum, S. Hayes, S. Nowak and
M. Molina. October 2011. ACEEE Research Report Number
E115
32

33. Energy Efficiency Programs at
MidAmerican Energy Company
Diane Munns
Vice President, Regulatory Relations & Energy Efficiency
September 6, 2012

34. Topics to be Covered
• Company overview
• Energy efficiency programs
• Efficiency achievements
• Benefits of long-term commitment to energy efficiency
34

35. Company Overview
• Headquartered in Des Moines,
Iowa
MINNESOTA
• 3,500 employees
WISCONSIN
SOUTH DAKOTA • 1.4 million electric and natural
gas customers in four
IOWA
Midwestern states
NEBRASKA
ILLINOIS
• 7,432 net MW generation
capacity(1)
KANSAS MISSOURI
• Generating capacity by fuel
type(1)
– Coal 45%
– MW owned gas
Net Natural in operation and under construction as of Dec. 31, 2011
(1)
17%
– Wind 31%
– Nuclear and other 7%
35

36. Programs
• Iowa, Illinois, South Dakota and Nebraska
• Gas and electric programs
• For every customer class, low income
• Audits, education and training
• Incentives (prescriptive, custom and dealer)
• Pilots
36

37. Achievements
Since 1990, MidAmerican Energy’s Iowa energy efficiency
programs have:
• Saved approximately 10.5 million MWh and
approximately 500 million therms
• Been utilized approximately 395,000 times by electric
customers and 315,000 times by gas customers
• Installed or rebated approximately 2.5 million compact
fluorescent bulbs
• Audited approximately 125,000 existing homes
• Certified approximately 30,000 energy-efficient new homes
• Planted more than 520,000 trees through community and
residential tree-planting programs
37

38. Long-Term Benefits
• Regulatory confidence and support
• Customer awareness
• Company culture change
• Trade ally, contractor, architect, builder awareness
• Customer satisfaction
• Economic development
• Market transformation
38

39. Energy Efficiency Portfolio Growth
at Xcel Energy
Karen Rhodes
Manager, Energy Efficiency Marketing
September 6, 2012

40. Xcel Energy
 Combination electricity and natural gas energy
company
 3.4 million electricity customers
 1.9 million natural gas customers
 Serve 8 states: CO, MI, MN,
NM, ND, SD, TX, WI
 Energy efficiency outreach
 Both fuels as applicable
 Longest running portfolio in MN
40

41. Next Generation Energy Act of 2007
 Provides goals for energy efficiency programs in
Minnesota
 Sets minimum energy savings goal of 1.0% of retail
energy sales
 Establishes target energy savings goal of 1.5%
 Applies to both electricity and natural gas
41

42. MN Electric Portfolio Achievements
500 $90
450 $80 •Since 2000,
Energy & Demand Savings
400 $70
energy savings
350 have increased
$60
$ (Millions)
300 90%
$50
250
$40
200 •Cost per kWh
$30
150 has only
100 $20 increased 24%
50 $10
0 $0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
MW GWh Expenditures
42

43. MN Gas Portfolio Achievements
1,400,000 $14
1,200,000 $12
•Since 2000,
1,000,000 $10
gas savings
Dth Savings
$ (Millions)
800,000 $8 have increased
150%
600,000 $6
400,000 $4 •Cost per Dth
has increased
200,000 $2 160%
0 $0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Dth Expenditures
43

44. Key Success Factors
 Regulatory compact
 Administrative oversight of programs
 Continuity in the market
 Builds awareness of energy efficiency programs
 Increases customer willingness
to make financial investment
 Trade partner engagement
 Innovative and evolving offerings
44

45. 45

46. Questions & Discussion
• Please type your question into the question
box.
• This Webinar is being recorded, and the
slides will be posted to the MEEA website
early next week.

47. Upcoming MEEA Policy
Webinars
• Thursday, October 11 at 1pm CDT
– A Midwest Look at the Better Buildings
Challenge
• Thursday, November 29 at 1pm CDT
– The New Political Landscape for Energy
Efficiency

48. Join the MEEA Policy Committee
Open to all MEEA Members
• Current Committee Chair – Diane Munns
• Next Call Scheduled for Monday, September 17 at
10 am CDT.
• If you would like to participate, please contact Jessica
Collingsworth at jcollingsworth@mwalliance.org or
(312)784-7247

49. The EE Story (Future)
• Future: Finding a new portfolio
– Lighting savings going down
– Some program saturation
– Need ‘new’ programs
• Whole home (HPwES, air sealing, etc)
• Systems work (HVAC systems, smart homes, etc)
• Behavior programs (changing the customer habit)
• Education
• Building Energy Codes (adoption, training and
compliance)
– Challenges
• Cost effectiveness (non-energy benefits not counted)
• More complex (contractors, systems, etc)

50. Contact Info
Stacey Paradis
Deputy Director
Midwest Energy Efficiency Alliance
312-784-7267
sparadis@mwalliance.org
www.mwalliance.org