NorthWestern Energy Submits Energy Efficiency Program Plans to South Dakota Public Utilities Commission For Consideration
Huron, S.D. – NorthWestern Energy has submitted a plan to the South Dakota Public Utilities Commission that, if approved, would enable the company to offer its customers a broad array of energy efficiency programs.
Demand Side Management (DSM) Programs are energy efficiency programs or plans that encourage customers to conserve energy through the installation of energy saving equipment, building upgrades, energy consumption habit modification, and overall energy usage education. The end result is educated consumers and less wasted consumption of energy.
An added benefit of DSM programs to energy customers, shareholders and utilities is that by using less energy, utilities are able to prolong their need for rate increases by delaying the need to construct expensive peak generation or base load generation projects.
NorthWestern's Montana utility has offered successful DSM programs for approximately 20 years and the SD DSM Plan is based on the company's experience with those programs. Under the submitted plan, SD DSM programs would be funded through a monthly per customer surcharge that mirrors similar funding mechanisms used by energy utilities in their SD PUC approved DSM plans.
"In talking with our customers over the past few years we have learned that many are very interested in learning about things they can do to their home or business to help conserve energy," said Pamela Bonrud, director of South Dakota/Nebraska government and regulatory affairs. "That desire to 'do it yourself' tells us that this is the right time for our South Dakota customers to receive benefits for that way of thinking."
The proposed DSM Plan includes rebates for the installation of energy saving products, like insulation, lighting and programmable thermostats. Home and business energy audits will be a key component of the proposed DSM Plan should it receive PUC approval. Mail-in energy audits would be available to residential electric customers that use electricity for only lights and appliances. Electric and natural gas space heating and water heating customers would qualify for on-site home energy audits, if their home is less than five years old. Audited customers would receive feedback about their energy usage habits, and the recommended steps to resolve inefficient habits or structural deficiencies causing excessive energy consumption.
"The home energy audit is the cornerstone of our DSM plan, and it is one of the best things that customers could be involved with in order to improve their energy efficiency," said Bobbi Schroeppel, vice president of customer care, communications and human resources. "During our Home Suite Home Giveaway in 2008, a South Dakota family won a new energy efficient clothes washer and dryer. Also included in the prize package was an on-site home energy audit. The winning family said the most valuable item in the prize package was the information gleaned from the auditors."
Assuming the SD PUC approves the program by the end of this year, the company intends to begin rolling out the programs to customers in early 2010.
About NorthWestern Energy
NorthWestern Energy is one of the largest providers of electricity and natural gas in the Upper Midwest and Northwest, serving approximately 650,000 customers in Montana, South Dakota and Nebraska. For more information about NorthWestern Energy, visit the company's Web site at www.northwesternenergy.com.
Information provided by NorthWestern Energy
October 2009