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                  Submitted To
      Wisconsin Department of Administration
                Division of Energy

                   Submitted By
     Wisconsin Energy Conservation Corporation
        Semi-Annual Performance Report         Wisconsin Energy Conservation Corporation
        Date: January 22, 2007                 Period Reported: Semi-Annual Report – FY07
                                                                (July 1–December 31, 2006)
                                               Contract Number: 84067

                  Statewide Focus on Energy – Business Programs
          Semi-Annual Performance Report for the Period July 1–December 31, 2006

WECC completed an initial allocation of annual resource savings, low and high ranges, across sectors for
prime subcontractor FY08 planning. WECC made these initial allocations based on the 12-month
resource savings goals agreed to during the first planning meeting held in November (31 MW, 155,000
MWh, and 11,000,000 therms) based on (1) being more aggressive within each sector and basing
savings on the sector’s historical contribution to the overall Business Programs’ savings and (2)
information from the ECW potential study. Based on WECC’s suggested allocation of resource savings by
sector, each sector manager will be responsible for building a technology portfolio to achieve those

An updated scope of work for the New Construction Program was prepared and distributed to sector
managers, channel managers, and coordinators after the December BPOC meeting. Staff began
developing possible technologies to include in the New Construction Program, calculating associated
energy savings for the technologies, and completing a first round of cost-effectiveness screening.

Focus staff coordinated with We Energies program staff to offer a joint prescriptive chiller incentive. The
incentive rates are higher compared with rates Focus previously offered (e.g., $200/kW and $0.08/kWh
versus $40/kW and 0.03/kWh). The principle reason for this change is to ease processing of single chiller
installations for customers, business allies, and program staff.

         Agriculture and Rural Business
              –   Several farms have completed large grain-drying projects in preparation for the 2006
                  drying season. The savings from those projects have pushed the Agriculture Program to
                  over 230% of their annual therm goal.
              –   Agriculture Program staff have been busy building relationships with associations,
                  manufacturers, and other agriculture and rural business stakeholders to enhance the
                  program for FY07 and prepare for FY08.
              –   Farm Technology Days (held July 11–13 in Oostburg) provided a great opportunity to
                  promote the new Agriculture Program FY07 prescriptive forms to Program Allies and
                  customers. In addition, over 1,500 CFLs were distributed at the event.

         Commercial
              –   Commercial Program staff have been aggressively benchmarking commercial properties
                  across the state. ENERGY STAR has provided program staff with personal key contacts
                  for each of the commercial teams (Hospitality, Health Care, and Grocery). This will make
                  their efforts much more efficient as outreach grows.
              –   The Commercial Team has started working on a contact management database that will
                  complement the WATTS system, better identify key accounts, and promote active
                  engagement with each customer.

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Business Programs Semi-Annual Report – FY07

             –   Healthcare Bid Cycle #6 closed with three submittals, indicating delivery of the following
                 savings: 976,000 kWh, 231 kW, and 99,000 therms. Total incentives sought total
                 $96,000. The submittals are being evaluated and scored.
             –   Energy Advisor Matt Matenaer had a meeting with heads of the DeRosa Corporation to
                 discuss how to make their restaurants more energy efficient and proposed a
                 Memorandum of Understanding for demand control ventilation. DeRosa owns all of the
                 Chancery Restaurants in the state, along with Eddie Martinis, Jose’s Blue Sombrero, and
                 the two Original Pancake Houses, to name a few.

        Industrial
             –   Industrial Program staff completed and began distributing the new Water–Wastewater
                 Energy Best Practices Guidebook. They have received requests for over 80 guidebooks,
                 including requests from Lawrence Berkeley National Laboratory, the Environmental
                 Protection Agency, Consortium for Energy Efficiency (CEE), Wisconsin Public Service,
                 and several state agencies.
             –   Distribution has begun on the new Metal Casting Energy Best Practices Guidebook. The
                 Wisconsin Cast Metal Association produced 50 copies of the guidebook for its
                 membership. As a special promotion, Focus is offering a $5,000 reward to the first four
                 customers who provide a demonstration on how they applied the guidebook to their
             –   The Dairy Processing Energy Best Practices Guidebook was distributed in August and
                 the Plastics Energy Best Practices Guidebook was distributed in July. Meeting a June 30
                 deadline for printing helped the Industrial Program acquire a $6,000 grant from the
                 American Chemistry Council through a CleanTech Partners agreement with the U.S.
                 Department of Energy.
             –   BP staff worked with the Industrial Team to provide comments on a proposed RFP/
                 bidding effort it would like to launch during the third or fourth quarter of FY07 and
                 continue in FY08. The objective is to encourage specific technologies, process changes,
                 and bundling of projects, and allow customers to put forth their proposal for a financial
                 incentive based on a project’s specific need rather than on the standard custom Focus
                 grant currently available. WECC plans to iron out details of this offer and present a
                 recommendation to DOA in January.
             –   The Industrial Program joined the Pump Systems Matter (PSM) organization headed up
                 by the Hydraulic Institute and will also serve as a co-chair of the steering committee.
                 PSM is a national pump market initiative that will leverage equipment suppliers,
                 customers, and energy efficiency programs to impact energy efficiency in pumping
                 systems. Pumps were identified as having the largest potential electric savings
                 opportunities in the industrial market after lighting.

        Schools and Local Government
             –   The Schools and Local Government Program is promoting water-saving measures
                 through a direct mail program, which is resulting in the distribution of more than 16,000
                 faucet aerators, nearly 6,000 low-flow showerheads, and more than 500 kitchen sprayers
                 to participating customers. This will amount to a total savings of more than 600,000
                 therms and nearly 150,000 gallons of water. The team estimates over 225 educational
                 and government facilities will receive water-saving measures through the promotion.
             –   The Schools and Local Government Team is seeing a large number of municipal
                 government customers responding to Focus services. The team sees this as a natural
                 progression, as many municipal governments have faced tough budget issues, such as
                 the 2% spending cap.

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Business Programs Semi-Annual Report – FY07

             –   Benchmarking government facilities is progressing. Since processes and procedures
                 have been in place from the schools benchmarking project, staff expect the government
                 benchmarking will be handled efficiently and at less expense.

        Market Channels
             –   Chuck Sasso continued a dialogue with CEE staff on how they and the Motor Decisions
                 Matter (MDM) program can best be used to benefit Focus.
             –   The Lighting Team presented a Focus on Energy plaque and check to Spectrum brands
                 in Madison. Spectrum completed a high performance T8 retrofit project—the largest in
                 the state and the largest HPT8 project the program has incented.
             –   The Lighting Team ran a pilot spiff program with CFLs at Hein Electric. The spiff was run
                 in conjunction with a spiff offered for CFLs by GE. Focus matched the GE $0.50/bulb spiff
                 so sales staff would receive $1.00/bulb sold. This resulted in a quadrupling of CFL sales
                 through Hein Electric. It is a good example of leveraging manufacturer/distributor
                 relationships to increase program participation.

Business Process Improvements
WECC is working with the BPOC management team to outline a process for FY08 planning using
DSMore to screen measures for cost-effectiveness (currently total resource cost-based).

WECC has ironed out a list of technologies that will be split with We Energies going forward. Basically,
technologies will only be split with We Energies if the measure has demand savings. If there are no
demand savings associated with a measure, there will be no split. WECC will discuss this with WPS to
encourage them to do the same so that the two joint programs (WPS and We Energies) can be consistent
and more manageable.

With the intent of improving BP savings achieved through the Efficient Heating and Cooling Initiative in
FY08, WECC changed its internal EHCI structure. In the past, WECC had a model that kept the
residential components and business programs components of this effort somewhat separate. While we
have had great success on the residential side of the program, we have not had time to develop the
potential on the business side. In an effort to grow that opportunity and, recognizing that much of the
channel by which we deliver this program is the same across residential and commercial programs, we
have pulled all of EHCI under one program umbrella with Erinn Monroe at the helm.

Industrial Program staff met with the Focus Renewable Energy Team to work out an MOU between the
two programs that includes sharing energy savings, as appropriate, for projects.

The WATTS Manual was distributed to staff in December. Our hope is that staff will find the manual useful
and that lots of good suggestions for the next version will allow us to continually improve the manual and
its usefulness.

Success Stories
        Agriculture and Rural Business Program
             –   Focus on Energy helped Irv Possin turn his old bin grain dryer into a computer-controlled,
                 automated, continuous-flow bin dryer. The old bin dryer Mr. Possin and his son had been
                 using to dry about 13,500 bushels of grain annually contained a perforated floor and
                 stirrator mechanisms. The new Shivver’s model adds a computer-controlled floor stirring
                 and auger mechanism as well as a central auger that continuously unloads grain as it
                 dries. The program ally, Enerson and Eggen, Inc., sold the system to the Possin’s for
                 $17,129. The installation is expected to save 2,457 gallons of liquid propane or 2,250
                 therms annually. The energy cost savings, $3,743, combined with the $750 Focus grant,

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Business Programs Semi-Annual Report – FY07

                 will help the Possins pay off their investment in approximately 7 years. This does not
                 include the saved time and labor the new, continuous-drying system allows. Also, the
                 new continuous dryer allows grain to be moved while hot, which maintains superior grain
             –   A web-based Farm Assessment Toolkit is an on-line tool that farmers can use to assess
                 and improve their farm’s energy efficiency. Developed jointly with the University of
                 Wisconsin–Extension Service and Focus, this tool helps the farmer identify areas for
                 improvement and suggests energy efficient equipment options. The farmer can obtain a
                 written report as well.

        Commercial Program
             –   Kwik Trip asked Focus to assist with a review of their facility plans and operating
                 procedures to determine how they can better control energy costs. Energy Advisor Dan
                 Hanson is working with Kwik Trip to finalize calculations for an aggressive controls
                 project that will be installed in approximately 50 stores statewide. Initial estimates
                 suggest potential savings in the range of 1 million kWh per year.
             –   Progress continues on several activities with Roundy’s, including the development of a
                 re-commissioning effort, a review of Roundy’s new construction and renovation
                 specifications, ENERGY STAR benchmarking on several facilities, as well as several
                 retrofits that take advantage of prescriptive incentive offerings. Focus now enjoys an
                 open and honest dialogue with this customer.
             –   Energy Advisor Dean Laube is working with Luther Hospital to implement an Energy
                 Management Plan. Luther Hospital was planning to lay the groundwork before December
                 31 and have a formal plan in place by January 1.
             –   Dos Gringos Mexican Restaurant in Beaver Dam recently underwent a kitchen renovation
                 that included a new exhaust hood. Scott Eberle, owner of Dos Gringos, was concerned
                 about the increasing costs of energy and how it was affecting his bottom line. He knew
                 that his exhaust hood used a significant amount of energy because it was always running
                 at full speed, even when his cooking equipment was not. After doing some research and
                 contacting Focus on Energy’s Hospitality Team, Mr. Eberle was introduced to variable
                 volume ventilation controls for kitchen exhaust hoods. The installation cut fan speeds by
                 45 percent and led to a significant reduction in energy costs. Mr. Eberle is saving almost
                 $4,000 annually in utility costs, both because of the lower fan use and because he’s
                 reduced the amount of heated or cooled air leaving the building. On top of this, the work
                 environment is much more pleasant and the grease filters work more effectively.
             –   Senior living community Oak Park Place was presented with a financial incentive check
                 for the facility’s installation of a central domestic hot water system, water loop heat
                 pumps, energy efficient lighting, occupancy sensors, and LED exit signs. With the
                 installations, the energy efficiency measures reduce the energy costs for Oak Park Place
                 by an estimated $35,000 annually. Focus began working with Oak Park Place in 2005
                 during the planning and construction phases of the new community.

        Industrial Program
             –   Cascades Tissue in Eau Claire was presented with a Governor’s Award for Excellence in
                 Energy Efficiency for their condensing stack heat recovery project. Cascades has also
                 completed efficiency upgrades to lighting, compressed air, vacuum system, boiler,
                 insulation, HVAC, and controls.
             –   Staff participated with a program ally (WW Equipment) in a lighting seminar at Proctor &
                 Gamble's (P&G) Green Bay facility. At the session, staff also presented P&G with a
                 Governor’s Award for Excellence in Energy Efficiency in recognition of their various
                 lighting projects (through WW Equipment) over the past 12 months. P&G expressed

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Business Programs Semi-Annual Report – FY07

                 interest in developing an energy team and receiving Practical Energy Management
                 (PEM) assistance from Focus.
             –   Energy Advisor Tim Dantoin has been leading and facilitating energy team meetings
                 using the PEM approach. The plan is to provide further training to all energy advisors so
                 they can provide this service to their customers. Tim has provided PEM assistance to
                 many industrial companies, such as Weyerhaeuser, Oshkosh Truck, Quad Graphics,
                 American Foods Group, Packerland Packing, Phillips Plastics, Flambeau River Paper,
                 and Greenheck Fans.
             –   Phillips Plastics (Multi-shot), an Eau Claire-based business, has received an Award for
                 Excellence in Energy Efficiency given by Focus on Energy for the implementation of
                 innovative energy efficiency projects within their business. With the help of Focus, Phillips
                 has made a number of energy efficiency improvements, including adding a chiller and
                 variable frequency drives to their cooling tower and performing compressed air system
                 leak assessments and heating–cooling system tune-ups, saving more than $34,000 in
                 energy costs annually at the Eau Claire facility alone. Companywide, Phillips Plastics,
                 which has other locations throughout the state, has saved over $112,000 in annual
                 energy costs since 2002. The most recent project involved a chiller upgrade at the Eau
                 Claire location. To date, this facility has been awarded $44,000 in financial incentives
                 from Xcel Energy and Focus for installing qualifying energy efficiency measures.
             –   Nestlé Food Company, headquartered in Vevey, Switzerland, is the world's largest food
                 and beverage company, employing 250,000 worldwide. The Eau Claire facility is a
                 branch of Nestlé USA, the company’s U.S. Division. Nestlé USA has partnered with
                 Focus since 2002 by making energy efficiency upgrades at locations throughout
                 Wisconsin, including Eau Claire, Hager City, Jefferson, Burlington, and Stoughton.
                 Improvements at the Eau Claire plant alone have saved nearly $200,000 in energy costs.
                 A recent project, a new condensing economizer system, cost the company $340,000 but
                 is saving the company $110,675 in energy costs annually. The economizer captures
                 latent heat from water vapor in the flue gas, which Nestlé then uses to pre-heat cold
                 boiler water. A Focus grant of $40,386 means the project will pay for itself in less than 3

        Schools and Local Government Program
             –   The Madison Metropolitan School District (MMSD) was recently presented with a
                 Governor’s Award for Excellence in Energy Efficiency and a financial incentive check
                 totaling $45,009 from Focus on Energy. The award was for the school district’s ongoing
                 commitment to becoming more energy efficient. The financial incentive check was given
                 to help fund the district’s recent implementation of PC network controls and high
                 efficiency lighting. The PC network controls software provided by Verdiem was installed
                 to address unnecessary energy consumption in the operation of MMSD’s computers.
                 Computer monitors with PC network controls enter a low-power sleep mode during
                 periods of inactivity, which can result in an annual savings of $10 to $30 per monitor.
                 Monitors can be reactivated in a matter of seconds by touching the keyboard or mouse,
                 making PC network controls an easy and convenient way to cut energy consumption.
                 The MMSD estimates its use of the energy efficient technology will result in a reduction of
                 more than 1.9 million kWh per year and an annual energy cost savings of nearly $1.3
                 million. MMSD also installed high efficiency lighting, LED exit signs, and occupancy
                 sensors throughout the district. The district’s commitment to energy efficiency makes the
                 MMSD a role model for students and for other school districts in Wisconsin. Since 2001,
                 the district has received $204,906 in financial incentives from Focus and has undertaken
                 a number of energy efficiency projects and improvements, saving them more than $4.9
                 million in annual energy costs. Other improvements made by the MMSD include the
                 repair and eventual replacement of steam traps, building automation projects in 23
                 schools, unit ventilators in 9 schools, and boiler replacements.

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Business Programs Semi-Annual Report – FY07

             –   North Lake School in North Lake has made a number of energy efficiency improvements,
                 including the installation of high efficiency fluorescent lighting, automatic lighting systems,
                 LED lighting, hydronic boiler system, instant hot water flash heater systems, and in-floor
                 hydronic heating, all of which have had a significant impact on reducing the school’s
                 natural gas and electric use. Over the past few years, North Lake School has undertaken
                 extensive programs to reduce the amount of energy they consume. Heating and cooling
                 of the building has been completely automated and regulated by computers to further add
                 to efficiencies. The school has experienced energy usage reductions of over 20 percent,
                 and even more so during peak usage times. According to school personnel, the school is
                 cleaner, brighter, more comfortable, and more environmentally friendly than ever.

Support for Market Providers
        New Business Allies are entering the program across all sectors. We also are gaining valuable
         feedback from staff and allies on the Business Ally website search that was launched August 4.
         The updated search allows users to search based on customer market (schools, industrial,
         commercial, etc.), business type (architect, builder, distributor, etc.), and line of business
         (appliances, controls, lighting, heat recovery, etc.).
        Chuck Sasso and Matt Kok met with two electrical equipment distributors and two motor and
         drive manufacturers to discuss current and future Focus programs related to high efficiency
         motors and adjustable speed drives. Overall, the feedback obtained was positive in that the
         current incentive levels are not out of range. However, most of these stakeholders were unaware
         of Focus programs for motor and drive technologies. The stakeholders asked that Focus consider
         slight revisions to incentive levels and processing of incentive applications. These comments are
         being considered for FY08. In addition, Erinn Monroe, Kurt Pulvermacher, and Matt Kok met with
         representatives of Trane to discuss the current prescriptive EHCI offerings for businesses. Kevin
         Kolbert of Trane said they will begin actively promoting the EHCI chiller incentive to their
        Channel Lighting staff continually meet with various business allies to keep them posted on
         program updates. At the beginning of FY07, Liesel Schulte met with account managers and sales
         staff at Pieper Electric, a large commercial electrical contractor in Milwaukee, and Erinn Monroe
         met with sales staff at Energy Performance Specialists, an electrical contractor based in Madison.
         Lighting staff also met with Crescent, Graybar, Town & Country Electric, and Suburban Electric,
         among others.
        The annual HVAC Distributor Meeting was held in Pewaukee on December 4. The meeting was
         attended by 15 representatives of 8 major distributors in southeast Wisconsin. Topics discussed
         included proper installation practices of central air conditioners, new technologies from
         manufacturers, possible upcoming equipment rewards and, generally, how to make the EHCI
         program more appealing and user friendly for contractors.
        Schools and Government Program Manager Charlie Schneider, Energy Advisor Nate Nygaard,
         and BP Director Ed Carroll met with Orion Energy Services staff in September. It proved to be a
         very productive conversation, where both sides learned about each other’s offerings. Among the
         outcomes of that meeting is Orion’s interest in structuring a type of shared savings financing offer
         for cash-strapped schools that have no way of completing basic lighting upgrades.
        The Commercial Program coordinated with Matt Kok, the Trade Ally Coordinator, to develop
         plans for recruiting more food service distributors to participate in the Food Service Equipment
        Staff contacted refrigeration contractors statewide to educate them on Focus services and

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Business Programs Semi-Annual Report – FY07

Outreach Activities
        The Focus website is being restructured and a market research survey is being considered to
         better understand what customers are looking for when they access the site. The website is
         expected to go online in February.
        Commercial Program staff collaborated with members of the Green Gas Station Initiative to
         produce a new feature for the Wisconsin Petroleum Marketers' and Convenience Store
         Association monthly newsletter that will highlight environmental and energy-related issues for
         convenience store operators statewide.
        Matt Matenaer met with Ted Meredith from Bridgeman Foods in Oak Creek to go over Focus
         programs. Bridgeman Foods recently purchased all of the Chili’s Restaurants in Wisconsin and
         also owns and operates a significant number of Wendy’s Restaurants. An MOU with Bridgeman
         is being established for demand control ventilation.
        Staff participated in a subcommittee meeting for the Waukesha County Water Conservation
         Coalition with individuals from Waukesha Water, Waukesha County, Metropolitan Milwaukee
         Sewage District, and Kohler on creating a plan for promoting water and energy savings targeting
         the lodging market that can later be expanded to other commercial businesses and schools. This
         coalition is looking to be a guide for all of southeastern Wisconsin.
        Four Industrial CFL sales events were set up at Marquip, Marathon Electric, JJ Keller, Karl Smith
         Unisia, and American Food Groups, fully booking the program through December.
        As co-chair and a board member of the national Pump Systems Matter organization, Industrial
         Program staff attend bi-monthly conference calls to develop strategic directions for this federal
        Schools and Local Government Program staff have been working with several groups of controls
         allies on measures they could be installing at school and municipal buildings statewide.
        As requested by DOA, Schools staff created an article for the Wisconsin Association of Schools
         featuring the benefits of using and purchasing ENERGY STAR-qualified commercial kitchen
        The Lighting Team has established and held several meetings with the Lighting Advisory Group
         to discuss new technologies and gather recommendations on how to make the program more
         effective and useful for allies.
        Liesel Schulte and Erinn Monroe participated in three NELA On-the-Road joint presentations with
         General Electric (GE), Hein Electric, GE Supply, and Graybar Electric. The audience was
         composed of end users and electrical contractors. GE set up the presentations with their
         distributors and invited Focus to participate.

Call Center Activities
The table below provides a breakdown of calls received by month and sector. It should be noted that
much of the Business Programs communication is received and handled by Energy Advisors on a one-
on-one basis.

                                                                                Schools and
         Month           Agriculture          Commercial         Industrial                      Other

          July               27                   68                30               20            45
         August              39                  100                29               19            57
        September            21                   94                35               22            55
         October             21                  105                42               31            51

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Business Programs Semi-Annual Report – FY07

                                                                                 Schools and
         Month           Agriculture          Commercial          Industrial                       Other
        November             18                    89                31                30            38
        December             27                    71                16                22            23

Education and Training
        Matt Matenaer and Dean Laube met with representatives of Great Wolf Resorts to tailor the
         Smart Strategies for Hotels training Focus is offering to their organization.
        Focus staff participated in an online ENERGY STAR training for benchmarking of medical office
        Industrial Program staff presented an overview of the Focus Program at the winter Energy
         Summit sponsored by Werner Electric and Rockwell Automation. This was a half-day seminar
         covering lighting technologies, variable frequency drives, building automation, and motors.
        A new training class centered around the Schools’ Operations & Maintenance CD is in the works.
        Recognizing the need to improve attendance for BP-sponsored training events in southeast
         Wisconsin, Ed Carroll is talking to We Energies staff on how to promote the classes jointly. In
         addition, Nancy Giere will communicate with Energy Advisors serving this area to make sure all of
         them are aware of upcoming events and can contact customers/allies who might benefit most
         from the classes.
        A Smart Strategies Training for Hotels was held in September at the Holiday Inn City Centre. This
         training was offered in collaboration with the Greater Green Bay Lodging Association and WPS.
         The training had a record-breaking 31 attendees.
        Steam trainings in Appleton and Pewaukee both had strong attendance and brought good
         industrial project leads. One marketing effort for the training involved a direct mailing to operators
         of 100 of the largest high-pressure boilers in the state derived from the Department of
         Commerce’s inspection database.

Utility Coordination
        The Utility Coordinator and Marketing Program Manager developed a bill insert that provides an
         overview of Focus programs for Richland Electric Cooperative members. The insert will be
         enclosed in the member’s January utility bill.
        The Utility Coordinator met with Jackson Electric and Pierce Pepin Electric Cooperatives to
         discuss Focus BP services.
        BP Director Ed Carroll and Utility Coordinator Martha Grasty scheduled and conducted quarterly
         utility update meetings to discuss FY07 efforts underway, collect ideas for other offerings that
         might be introduced later in the fiscal year, and address concerns or issues utility staff might have
         regarding Focus BP activities.
        Representing Focus, Liesel Schulte attended We Energies customer meetings in November. She
         continues to work with We Energies to assure the programs are aligned.
        Energy Advisors Eric Wall and Rob Bedelis met with PREVEA Health to discuss an account
         management approach for energy assessment and benchmarking of all of their facilities. The
         meeting was coordinated by Jim Rath of WPS.
        Industrial Program staff conducted a 3-hour training session for WPS account managers on the
         principles and materials needed to facilitate corporate energy teams. This training was done at

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          Business Programs Semi-Annual Report – FY07

                    the request of WPS and is part of their ongoing effort to develop the capability to deliver facilitated
                    energy team services to key industrial customers.
                   WECC and Sector Managers met with WPS large account executive staff in September in Green
                    Bay to provide an update of achievements in FY06 and plans for FY07.

          Other Program Activities
                   Over the past 6 months, several personnel have left the Focus Business Programs to pursue
                    other interests, resulting in several new staff hires. Business Programs Director Ed Carroll will be
                    heading up planning and new business opportunities for WECC and Kevin DeMaster has been
                    hired to take his place. Matt Kok of WECC has assumed the role of Business Ally Coordinator
                    vacated by John Pfeiffer, who left Franklin Energy Services for another job in Chicago. In turn,
                    Chuck Sasso has assumed the role of Motors and Drives Channel Manager also vacated by John
                    Pfeiffer. The Commercial Program has hired Tom Quasius to replace Dan Tarrence, who will fill a
                    role at Franklin Energy similar to the role Ed Carroll will be taking on at WECC.
                   Over the past 6 months, measurement and verification reports were completed on guest room
                    energy management systems at Comfort Inn (Fond du Lac), Great Wolf Lodge (Wisconsin Dells),
                    and Days Inn (Madison), Clinton Farm’s installation of high-volume low-speed fans, P&H Mining’s
                    steam plant decentralization, and Cornell School’s 250W CFL conversion.
                   The Lighting Channel is devising a plan to research the current state of the market for linear
                    fluorescent lighting technologies. This is in response to the Evaluation Team’s understanding that
                    the industry standard for linear fluorescent lighting is T8 technology.

          Energy Savings to Date

                          No. of                                                                                                         Unverified
                                                              Unverified                             Unverified
                       Participants          Gross                                                                       Gross           Adjusted
                                                              Adjusted            Gross               Adjusted
                         Having             Potential                                                                   Potential           Gross
  Program Area                                                  Gross          Potential kW            Gross
                         Energy               kWh                                                                        Therm            Installed
                                                            Installed kWh        Savings            Installed kW
                         Savings            Savings                                                                     Savings            Therm
                                                               Savings                                Savings
                        Estimates                                                                                                         Savings
 Agriculture                 —                  —               7,332,694             —                  1,678              —               693,239
 Commercial                  —                  —             18,696,071              —                  4,137              —               594,269
 Industrial                  —                  —             21,615,068              —                  4,362              —             2,388,350
 Schools and
                             —                  —             10,390,489              —                  1,647              —             1,213,603

 Business                    —                  —             58,034,223              —                11,824               —             4,889,461
 Channel Efforts
 EHCI                        —                  —                 205,441             —                    212              —               106,146
 Lighting                    —                  —             17,070,750              —                  3,799              —                  1,342
 Motors and
                             —                  —                 609,968             —                       3             —                     NA

Gross savings have been adjusted using adjustment factors from the 9/9/05 Impact Evaluation Report.
Starting in FY07, savings associated with the Channel programs (EHCI, Lighting, Motors and Drives) are included with the sector efforts (Agriculture,
      Commercial, Industrial, and Schools and Government). Individual channel savings are provided for tracking and informational purposes only (i.e.,
      EHCI’s 205,441 kWh is included in the 58,034,223 kWh Total Business Programs total reported above).
kW and kWh year-to-date totals include compact fluorescent data from EFI for October 2006.
NOTE: Information from WATTS is not yet available in the format required to identify potential savings for electric and gas measures; therefore, these
   columns are blank.

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Business Programs Semi-Annual Report – FY07

Budget Status

                                                                             Expenses to Date
                  Program Area                          Budget                                  a    Balance
                                                                             (as of 12/31/2006)
     Administration                                     $1,212,747                   $531,728         $681,018
     Agriculture                                        $1,914,379                   $980,497         $933,881
     Commercial                                         $3,139,218                 $1,048,830        $2,090,387
     Industrial                                         $7,387,525                 $1,985,324        $5,402,200
     Schools and Government                             $4,048,919                 $1,385,232        $2,663,686
     Education and Training                               $370,099                   $153,971         $216,127
     Energy Efficient Lighting Initiative               $1,367,807                   $822,685         $545,121
     Efficient Heating & Cooling Initiative               $556,879                    $79,835         $477,043
     Motors Channel Program                               $313,494                    $69,374         $244,119
     CleanTech Partners                                   $577,453                   $372,418         $205,034
     Outside Funding                                        $88,366                    $5,066          $83,299
     Non-Focus Eligible Schools                           $216,236                    $66,703         $149,532
     WPS-Admin Business                                     $64,819                   $30,532          $34,286
     WPS Hometown Energy Check-up                         $225,341                    $67,595         $157,745
     WPS Prescriptive/Cust Incentives                     $478,606                   $129,535         $349,070
          Total                                        $21,961,888                 $7,729,325       $14,232,563
          Numbers reflect those reported through interim invoice to DOA, dated January 17, 2007.

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