Stimulating Utilities to Promote Energy Efficiency: Process Evaluation of Madison Gas and Electric's Competition Pilot Program

On June 14, 1988 the Public Service Commission of Wisconsin (PSCW) authorized the Madison Gas and Electric Company (MGE) to encourage energy conservation and efficiency in the use of gas and electricity among its customers through an innovative program, the Energy Conservation Competition Pilot (hereafter referred to as the Competition.) The Competition had the following primary objectives:

• Motivate MGE to improve its conservation efforts in terms of both the quantity and cost-effectiveness of conservation achieved.
• Provide an opportunity for the development of exceptional conservation services for utility customers by allowing conservation providers, in addition to MGE, funds to design and implement innovative and competing programs.
• Test how cost-effectively conservation services can be delivered through various marketing services, strategies and providers.
• Test the usefulness of the Performance Score as a measure of cost-effective conservation achieved and its usefulness as a tool for pursuing a least-cost resource strategy.
• Test whether the Competition format is a regulatory strategy worthy of future pursuit.