Public Service Commission directs staff to draft order after mid‑quad Focus on Energy adjustments

The Public Service Commission on May 15 directed staff to draft an order implementing mid‑quad adjustments to the Focus on Energy program, selecting a moderate increase in natural‑gas savings goals and endorsing the program administrator’s plan for allocating additional funds for the remainder of the four‑year cycle.

Commissioner Nieto, the commission’s delegated commissioner on Focus on Energy issues, described the discussion as "a mid quad check‑in, essentially," saying the program runs on a four‑year cycle and that updated economic and budget information that became available after the quad began prompted the proposed adjustments.

The commission agreed to the staff and program administrator APTIM’s (APTIM, Inc.) recommendation to raise the Quad 4 natural‑gas (therm) savings target at the more conservative option identified as Alternative 1 rather than the more optimistic Alternative 2. "I think the middle of the road alternative 1 option was the one I was most comfortable with at this time," Commissioner Nieto said, citing pipeline completion and macroeconomic uncertainties. Chair Strand said she preferred deferring to the delegated commissioner’s expertise and was comfortable with Alternative 1 as a cautious approach.

The commissioners also approved APTIM’s proposed approach to allocate the additional dollars that are available because some utilities’ revenues increased after rate changes, which raised the Focus on Energy budget for the remainder of the quad. Commissioners agreed to implement the administrator’s recommended allocation across Quad 4 and Quad 5 as presented.

In a separate adjustment tied to the increased budget, the commission approved a proportional increase in APTIM’s performance goal — specifically a 2.41% increase consistent with the budget rise — and again selected the more moderate Alternative 1 for that change.

Formally, in docket 125FE104 the commission "direct[ed] the division of digital access, consumer and environmental affairs to draft an order consistent with our discussion." Commissioner Nieto made the motion; a second was called and the commission voted unanimously "Aye." The motion directs staff to prepare an order reflecting the selected alternatives and the administrator’s allocation plan; it does not itself adopt implementation language beyond that direction.

The discussion emphasized that the original quad goals were set during the COVID‑19 pandemic and were intentionally conservative because of supply chain and economic uncertainty at that time. Commissioners repeatedly noted the program administrator indicated the selected targets were achievable, but some commissioners expressed concern that the more optimistic option depended on pipeline projects in the current pipeline completing within the quad period.

No changes to tariff items, intervener awards, or the other dockets discussed earlier on the agenda were part of this directive; those items (for example, Walnut Way intervener compensation of $20,227 in docket 1IC570 and approval of Madison Gas and Electric’s community solar program in docket 3270TE119) were handled separately during the meeting. The commission scheduled its next open meeting for May 22, 2025, at 10:30 a.m.