Two Critical Keys for Eliminating Utility CIP Program Fees.

Where State and Federal programs exist to encourage energy reduction to meet financial, environmental and social objectives, we often find Utility Energy Efficiency Programs and Conservation Improvement Programs (CIP) which favor energy efficiency standards for all customers, regardless of size or customer class.  These CIP programs are funded via a fee or rider added to the customers’ monthly energy bill; however it is common to discover large customer opt-out provisions which may offer major energy users like industrial facilities the option of self-directing their energy efficiency initiatives.

Most states recognize the value of a self-directed efficiency opt-out versus a total opt-out for large customers.  Here is our list of currently known states that allow for an opt-out of CIP or provide for a self-directed energy conservation or demand response management program:

  • Arizona
  • Arkansas
  • Colorado
  • Connecticut
  • Idaho
  • Illinois
  • Indiana
  • Kentucky
  • Maine
  • Massachusetts
  • Michigan
  • Minnesota
  • Missouri
  • Montana
  • New Jersey
  • New Mexico
  • North Carolina
  • Ohio
  • Oklahoma
  • Oregon
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming

We’ve found a couple of critical keys for ensuring success in your opt-out initiative:

  1. Evidence that ongoing legitimate energy conservation initiatives are being implemented via a self-directed and continuously functional energy reduction program complete with an accountability structure.
  2. Your anecdotal energy reduction actions must include measurable, verifiable, and significant energy savings.

Armed with these, your opt-out efforts can’t help but bear fruit.


Source: American Council for an Energy-Efficient Economy

Implementing a demand-side energy reduction initiative with the help of MPC Energy will allow a large industrial facility meet a number of objectives:

  • Reduce energy consumption and associated emissions.
  • Meet the Utility CIP Opt-Out and eliminate the Utility CIP fees.
  • Save 10 to 15% of energy costs without the need to allocate capital dollars.
  • Provide reports and verified results that can be submitted to the utility commission to meet opt-out requirements.
  • Establish a culture of consumption awareness and accountability.
  • Achieve ISO50001 compliance.

Contact MPC Energy

…to discuss how your facility can opt-out of utility CIP programs and still implement an energy reduction program that will support both regulatory requirements and your financial goals.

Communicating for Buy-In: Tips for Energy Managers

It’s a question we get often:

“We have a culture of resisting change, so how can I assure we can sustain MPC-driven energy savings on an ongoing basis?”

Unfortunately, frustrated energy managers tend to be the rule more often than the exception when it comes to establishing a cultural energy awareness in manufacturing operations.  Even when upper management supports the mission, often there are layers that simply fail to echo their commitment.

Here are three of the best practices we’ve found among our clients for getting traction behind your team initiatives:

Communicate specific goals to stakeholder groups in their own terms.

Too often, initiatives (energy or otherwise) are communicated across entire teams in generic terms. Try crafting separate messages for each stakeholder group with well-defined goals provided for each.

Develop a “hero” mindset.

Perhaps the most impactful thing you can do is to connect the dots between the success of your initiative and the larger impact it will have beyond the plant floor. Does your team know that just one of them can save enough energy in the course of a single shift to (for example) heat a single family home for an entire week? Shouldn’t they?

Sharing success creates a more lasting effect than attributing failure.

People are happier and more mindful and productive when they are working to accomplish something good; than when they are simply working to avoid something bad. Apply kudos liberally on the good energy days/shifts; and reinforce goals on the bad ones.

Have more ideas and best practices for getting buy-in? We’d love to hear them!