Should funding for natural gas conservation programs be included in MGEs cost of service?
As discussed earlier, under the SFV rate design, MGEs disincentive to promote natural gas conservation is removed. With the disincentive removed, the company is willing to offer conservation programs to better align themselves with the interest of the customer.[50] The company offers $705,000 to be included in rates to go toward a gas water heater rebate program.[51] The Commission notes, however, that this program is particularly in the companys interest as it provides an incentive for customers to switch from electric to gas water heaters.[52] Additionally, the company is offering $45,000 to be included in rates to educate the public about energy conservation.[53] This program would be an on-line audit (energy calculator) linked to the Department of Energy.[54] MGE anticipates lowering its return requirement by $1 million under the SFV design and using that money for conservation programs.[55] The Commission shall approve the conservation program proposed by Staff and MGE. 8. Environ
