Alliant plan calls for $399 million in Iowa energy efficiency investments

Alliant Energy customers will be hearing a lot more about light emitting diodes (LEDs) and opportunities to make apartments and condominiums energy efficient under a new long-term energy efficiency plan presented to the Iowa Utilities Board.

Alliant's current five-year energy efficiency plan expires at the end of 2013. The company's Interstate Power and Light subsidiary submitted a proposed new plan to replace it from 2014 through 2018 last month.

The new plan calls for spending $399 million over the five-year period, down $1 million from $400 million in the last five-year plan.

Customers fund the state-mandated program through their utility bills. For customers who use the many programs offered, however, reduced energy consumption, rebates and other incentives can more than compensate for the extra cost.

The plan is forecast to result in $768 million in direct benefits to participants in the form of lower energy bills. .

Alliant spokesman Justin Foss said one reason energy efficiency spending can be lowered is the improved availability and adoption of energy efficient products and building methods. As a result, he said, Alliant often doesn't have to use rebates or other incentives to induce energy efficient chooices.

"If one of our customers is going to buy a new furnace, they are probably going to buy an energy efficient one, because the furnaces available now in Iowa are almost all energy efficient models," Foss said. "It doesn't depend as much on whether we offer a rebate."

The spending is projected to yield electricity savings of 815 gigawatt hours, or 1.13 percent of IPL's electric load forecast on average. The previous plan had projected savings of 1.05 percent per year.

Left out of the new plan is a current renewable power generation pilot program that provides financial and technical assistance to conduct feasibility studies and provide cash rebates to install equipment.

Foss said the programs were omitted partly because renewable generation, while desirable, does not necessarily lower overall energy use.

Alliant eliminated a Performance Contracting program, which helps develop energy efficiency projects for nonresidential customers that pay for themselves out of savings, and a program called Home Performance With Energy Star, which provides a home energy inspection and cash rewards for homeowners who meet or exceed identified energy savings goals.

Three tree-planting programs currently in effect also are left out of the new program.

The programs were eliminated because of low cost-effectiveness, lack of customer interest, and limited support outside the company to deliver the programs, Alliant's Jeanine Penticoff said in written testimony to the board.

While the pilot renewable energy program was dropped, Alliant plans to continue supporting its customers' installation of renewable technologies such as solar and wind power through power purchase agreements, interconnection agreement and tariff agreements. The agreements set forth the terms under which Alliant will interconnect with customer-owned generation and credit their bills for power generated beyond what they consume.

One of the new programs will address energy efficency needs of multifamily housing, mainly apartments. Historically, it's been a challenge to get landlords to invest in energy efficiency because they see renters, rather than themselves, as benefiting from lower utility costs.

The new "Change-a-Light" program expands an existing seasonal program into a year-around program, according to Penticoff, director of economic development, energy efficiency and account management for Alliant. It will focus on getting customers to use highly-efficient LED bulbs and fixtures on a everyday basis, while the current program focuses on holiday lights.

A third new program offers three types of energy efficient assessments and lighting efficiency opportunities for businesses.

Foss said the energy efficiency plan is just one component of an overall strategic plan the utility follows to maximize the cost-effective and reliable delivery of electricity and natural gas. The plan includes power generation planning, fuel sourcing, distribution planning and other elements.

The Iowa Utilities Board is expected to act on the energy efficiency plan in the final four months of 2013. The impact on customer bills is expected to be small, Foss said.