85 7eh Place Est, Suite 500 Se Paul MN 58101-2098 rain: 512964028 mys650 2962860 mesial ecu! osuaes acme beens ; October 13, 2010 Richard Szydlowski Director of Enginecring and Business Development Center for Energy and Environment 212 3" Avenue North, Suite 560 Minneapolis, MN 55401 RE: One-Stop Bificiency Shop Modification Request Docket No, E002/CIP-09-198 ‘Dear Mr. Szydlowski ‘Staff and I have reviewed the Center for Energy and Environment's (CEE) Request for Increase in the 2010 Budget and Goals for the One-Stop Efficiency Shop (Petition), subiaitted on September 23, 2010. CEE requests a 20 percent budget increase for the One-Stop Efficiency ‘Shop (One-Stop) Program in 2010, from the approved budget of $111,859.252 to a modified budget of $14,207, 102 to meet greater than expected demand. The Petition was submitted following release of an independent evaluation of the One-Stop Program, ordered a5 a condition ‘for approval of inclusion of the One-Stop Program in Northern States Power Company, a ‘Minnesota corporation's (Xcel) 2010-2012 Conservation Improvement Program Plan. ‘Staff and I have reviewed the One-Stop evaluation report. While the results are generally positive, Tam concermed about the large budget increase requested for 2010. Table | shows the ‘One-Stop Program budgets from 2009-2012. ‘Table 1: One-Stop Budgets, 2009-2012 “Total 2009 008 2010 2011 2012 suemiy “Approved ‘Actual ‘Approved | Approved | Approved ‘Approved s7.as3702_|_sisesssos | siisso2s2 | si305.e19 | sis.as0360 | $40,015,440 ‘A large budget increase from 2009 to 2010 was already approved concurrent with approval of Xcel’s 2010-2012 CIP, In addition, CEE nearly doubled its approved One-Stop budget for 2009. ‘While the One-Stop Program continues to attract participants, it is important that utilities ane alternative CTP providers manage their programs to stay within their approved budgets.‘William L. Glahn October 13, 2010 Page Two Avthe same time, the Director understands that stopping the Program prior to the end of the year could have an adverse impact on the Program's relationships with its trade allies and potential customers. Therefore, the Director will allow CEE to spend up to the requested budget of $14,207,102 for 2010 to maintain program continuity, but declines to increase the One-Stop Program's averall budget for 2010-2012 at this time. Any funds spent in excess of the $11,839,252 approved for 2010 must be offset by an equivalent amount in 2011 and 2012. CEE must manage the One-Stop program to stay within the total approved budget of $40,015,440 for 2010-2012, ORDER CEE may spend up to $14,207,102 on the One-Stop Program in 2010, Any spending in excess of the $11,839,252 approved for 2010 must be offset by an equivalent amount in 2011 and 2012. BY ORDER OF THE DIRECTOR OF THE (OFFICE OF ENERGY SECURITY is! WILLIAM L. GLAHN Director, Office of Energy Security