Focus on Conservation
Responsible energy management is a critical strategy for controlling costs and delaying the need to build additional power plants, transmission lines and gas pipelines. It is considerably cheaper to save a megawatt of demand through more efficient use of energy than it is to build a megawatt in a new, large power plant.
- In 2005, WPPI members increased their commitment to energy conservation by doubling the system-wide budget for commercial and industrial efficiency incentives. This customer segment has yielded the most economical demand-side resources, accounting for approximately three-quarters of the total energy conservation achievements. In all, customer programs aimed at reducing energy waste have resulted in nearly 10 MW of coincident demand reduction and 72,000 MWh per year of energy saved since 2002.
- With a goal of reducing energy use in WPPI's office facility by 10 percent, employees have formed an internal Energy Management Team to develop and implement strategies to minimize energy waste and reduce the environmental impacts of our facility's operations.
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Efficient Execution
- In April, the Midwest Independent Transmission System Operator (Midwest ISO) launched its Day 2 Market using locational marginal pricing. This complex market has radically changed the way Midwestern utilities do business. WPPI entered the market without incident; hard work and advance planning paid off.
- Fourteen members received new retail rates in 2005 following WPPI's assistance with electric rate applications. WPPI also facilitated development of financial plans for 16 members, helping them evaluate the rate and cash flow impacts of major capital additions and the loss or gain of a large customer.
- A multi-year project to improve the efficiency of wholesale metering and data collection was completed in 2005. Remote terminals have been upgraded to new meters that supply both billing data and real-time energy use information from 130 wholesale metering points. This will significantly reduce the cost to collect and electronically communicate critical information from member communities to WPPI's system operations center.
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