Beginning in 2002, rural electric cooperatives and municipal utilities in Minnesota were required to spend 1.5 percent of annual revenues, on energy conservation programs under a program known as CIP – Conservation Improvement Program.
Since 2002 Mt. Lake Public Utilities has been collecting and returning these funds to our customers in the form of rebates when energy efficient measures are purchased.
In 2007 the Next Generation Energy Act revised CIP and set an annual energy savings goal beginning in 2010. The energy savings goal is equivalent to 1.5 percent of the utility’s annual retail energy sales, averaged over the most recent three year period and weather normalized.
To determine if the 1.5 percent savings goal is reached, savings are calculated based on the ‘deemed savings’ for each new energy efficiency measure and for the elimination of an old measure. ‘Deemed savings’ represent the energy and demand savings expected to be achieved on average.
CIP is designed to offer customers long term savings. The Mt. Lake Public Utility has attempted to create programs that are accessible to everyone.