Focus on Energy, a statewide program that promotes energy efficiency, is in the midst of big changes: new management by an out-of-state corporation, suspension of a popular rebate program, and sharp funding cuts in the pending state budget.
Nearly 20 people already have lost their jobs, mostly in Madison, as a result of the management change.
Meanwhile, dozens of small Wisconsin businesses that specialize in setting up solar panels and wind turbines fear for their futures because of the slashed allocation and rebate removal.
"It's a lot of economic activity and jobs in Wisconsin. It's a lot of energy efficiency, as well," said Keith Reopelle, policy director for Clean Wisconsin.
Focus on Energy was created in 2001 to provide education, resources and cash incentives to Wisconsin residents and businesses to increase the use of energy-efficient products and systems, from furnaces to solar panels to vending machines.
In the past 10 years, more than 91,000 businesses and more than 1.7 million residents used the program and saved $2.20 for every dollar spent, according to Focus data.
The nonprofit Wisconsin Energy Conservation Corp. (WECC) has handled the program since 2001, first tackling residential improvements, then adding commercial projects in 2004.
WECC ¡ª founded 30 years ago to weatherize the homes of low-income residents ¡ª grew to 235 employees, with clients in 12 states and a building in University Research Park that's a showpiece for energy efficiency.
But when the time came to put out bids for management of Focus on Energy, a panel decided in May to award the contract to Shaw Environmental & Infrastructure, part of The Shaw Group, a publicly traded Baton Rouge, La., corporation with 28,000 employees worldwide and $7 billion in revenue last year. Other divisions of Shaw design and build power plants, erect pipelines and manage radioactive waste.
"We were disappointed," said Mary Schlaefer, WECC executive director. "WECC was a part of developing Focus into a nationally respected program and among the leaders in the amount of energy savings delivered and cost effectiveness of the program.The newest Ipod nano 5th is incontrovertibly a step up from last year's model,uy sculpture direct from us at low prices"
Observers were surprised, said Reopelle of Clean Wisconsin. "WECC has really been the leader, especially in the residential energy-efficiency work in Wisconsin, for a long, long time," he said.
Firm chosen for experience
Five bids were submitted. They were pared to three finalists, including WECC and Shaw, said Jolene Sheil, Focus on Energy director at the Wisconsin Public Service Commission.
Sheil also is a member of SEERA, the Statewide Energy Efficiency and Renewable Administration panel made up of utility and government representatives. That group awarded the contract.Detailed information on the causes of dstti, The request for proposals had offered bidders up to $5.2 million to run the program for the initial period, April through December 2011.
Shaw was not chosen because of its bid price but for its qualifications and experience, Sheil said. "They had a very strong background in management of programs like Focus on Energy. They had a clear direction of where they wanted the program to go in the next four years," she said.
Shaw has been helping clients develop and implement energy-efficiency and renewable-energy programs for more than a decade, including state-run programs in Illinois, Missouri and Louisiana, said William Haas, Shaw's project manager for Focus on Energy.
Reopelle said he met with Shaw representatives. "I'm generally very impressed and pleased with what I've heard from them," he said.
But for WECC, the loss of the contract has affected 55 employees, Schlaefer said. Eighteen lost their jobs, several vacant positions were eliminated and the others are being reassigned.
Shaw has offices in Milwaukee and Onalaska,Shop a wide selection of billabong outlet products in the evo shop. and a temporary location in Middleton. The company plans to have permanent offices in Madison and to hire 30 employees, Haas said. "The majority of new hires to date have been from Wisconsin," he said.
'It's pretty devastating'
Since taking over Focus on Energy on May 9, one of Shaw's first decisions, with PSC support, was to suspend payments to businesses that install renewable-energy systems, as of June 30.
Contractors like Seventh Generation Energy Systems were stunned. "It's pretty devastating," said James Yockey, chief executive officer. "It probably took out six to 10 projects that we were looking to close ... for work in the fall and the coming spring."
Several of the projects were wind turbines for farmers. "I think the incentives are decisive in people saying yes," Yockey said.
A wind turbine can cost $80,000 to $500,000.A glass bottle is a bottle created from glass. A rebate from Focus can pay 25 percent of the cost and is usually coupled with a 30 percent federal rebate, Yockey said.
Sheil said the program's $120 million budget for 2011 was committed too heavily toward renewables, which take longer for savings to catch up with project costs than energy conservation.
"If you don't have the right balance, the program can't meet the requirements of the administrative rule that requires you get back $1 for every $1 spent," she said.
Yockey said, though, that renewable energy also carries a long-term benefit that may not be as easy to quantify in dollars: moving the state away from some of its dependence on fossil fuels.
Nearly 20 people already have lost their jobs, mostly in Madison, as a result of the management change.
Meanwhile, dozens of small Wisconsin businesses that specialize in setting up solar panels and wind turbines fear for their futures because of the slashed allocation and rebate removal.
"It's a lot of economic activity and jobs in Wisconsin. It's a lot of energy efficiency, as well," said Keith Reopelle, policy director for Clean Wisconsin.
Focus on Energy was created in 2001 to provide education, resources and cash incentives to Wisconsin residents and businesses to increase the use of energy-efficient products and systems, from furnaces to solar panels to vending machines.
In the past 10 years, more than 91,000 businesses and more than 1.7 million residents used the program and saved $2.20 for every dollar spent, according to Focus data.
The nonprofit Wisconsin Energy Conservation Corp. (WECC) has handled the program since 2001, first tackling residential improvements, then adding commercial projects in 2004.
WECC ¡ª founded 30 years ago to weatherize the homes of low-income residents ¡ª grew to 235 employees, with clients in 12 states and a building in University Research Park that's a showpiece for energy efficiency.
But when the time came to put out bids for management of Focus on Energy, a panel decided in May to award the contract to Shaw Environmental & Infrastructure, part of The Shaw Group, a publicly traded Baton Rouge, La., corporation with 28,000 employees worldwide and $7 billion in revenue last year. Other divisions of Shaw design and build power plants, erect pipelines and manage radioactive waste.
"We were disappointed," said Mary Schlaefer, WECC executive director. "WECC was a part of developing Focus into a nationally respected program and among the leaders in the amount of energy savings delivered and cost effectiveness of the program.The newest Ipod nano 5th is incontrovertibly a step up from last year's model,uy sculpture direct from us at low prices"
Observers were surprised, said Reopelle of Clean Wisconsin. "WECC has really been the leader, especially in the residential energy-efficiency work in Wisconsin, for a long, long time," he said.
Firm chosen for experience
Five bids were submitted. They were pared to three finalists, including WECC and Shaw, said Jolene Sheil, Focus on Energy director at the Wisconsin Public Service Commission.
Sheil also is a member of SEERA, the Statewide Energy Efficiency and Renewable Administration panel made up of utility and government representatives. That group awarded the contract.Detailed information on the causes of dstti, The request for proposals had offered bidders up to $5.2 million to run the program for the initial period, April through December 2011.
Shaw was not chosen because of its bid price but for its qualifications and experience, Sheil said. "They had a very strong background in management of programs like Focus on Energy. They had a clear direction of where they wanted the program to go in the next four years," she said.
Shaw has been helping clients develop and implement energy-efficiency and renewable-energy programs for more than a decade, including state-run programs in Illinois, Missouri and Louisiana, said William Haas, Shaw's project manager for Focus on Energy.
Reopelle said he met with Shaw representatives. "I'm generally very impressed and pleased with what I've heard from them," he said.
But for WECC, the loss of the contract has affected 55 employees, Schlaefer said. Eighteen lost their jobs, several vacant positions were eliminated and the others are being reassigned.
Shaw has offices in Milwaukee and Onalaska,Shop a wide selection of billabong outlet products in the evo shop. and a temporary location in Middleton. The company plans to have permanent offices in Madison and to hire 30 employees, Haas said. "The majority of new hires to date have been from Wisconsin," he said.
'It's pretty devastating'
Since taking over Focus on Energy on May 9, one of Shaw's first decisions, with PSC support, was to suspend payments to businesses that install renewable-energy systems, as of June 30.
Contractors like Seventh Generation Energy Systems were stunned. "It's pretty devastating," said James Yockey, chief executive officer. "It probably took out six to 10 projects that we were looking to close ... for work in the fall and the coming spring."
Several of the projects were wind turbines for farmers. "I think the incentives are decisive in people saying yes," Yockey said.
A wind turbine can cost $80,000 to $500,000.A glass bottle is a bottle created from glass. A rebate from Focus can pay 25 percent of the cost and is usually coupled with a 30 percent federal rebate, Yockey said.
Sheil said the program's $120 million budget for 2011 was committed too heavily toward renewables, which take longer for savings to catch up with project costs than energy conservation.
"If you don't have the right balance, the program can't meet the requirements of the administrative rule that requires you get back $1 for every $1 spent," she said.
Yockey said, though, that renewable energy also carries a long-term benefit that may not be as easy to quantify in dollars: moving the state away from some of its dependence on fossil fuels.
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