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The state Legislature has ordered an extensive audit of the state’s Focus on Energy – a large program providing incentives to homeowners and businesses that install energy efficiency upgrades, such as solar panels – that could serve as the basis for downsizing or otherwise changing the program.

The legislature’s Joint Audit Committee voted last week to order the nonpartisan Legislative Audit Bureau to begin work on the review, which, according to a statement, will vet the program, which is funded by state-mandated payments from electric utilities in the state, from top to bottom. Auditors will review program spending, participation, oversight and effectiveness.

Late last year, the legislature’s Joint Finance Committee, then controlled by Democrats, voted to greatly expand funding for Focus on Energy by increasing the payments from utilities, charges that would ultimately get passed onto ratepayers. The state Public Service Commission, which requested the increase, argued ratepayers would ultimately save money, but the non-partisan Legislative Fiscal Bureau noted this would only happen to those customers who benefit from the incentive programs.

The Republicans now controlling the Joint Finance Committee and both chambers of the legislature haven’t moved to roll back those increases in funding. The Joint Audit Committee appears to be taking the lead on the issue. A solar industry group, the Wisconsin Solar Energy Industries Association, wrote in a recent letter to its members the upcoming audit “may have a major influence on future legislative decisions on whether to continue the Focus on Energy program and at what level.”

State Sen. Robert Cowles (R-Green Bay), co-chair of the audit committee, said in a statement, “We need to have an independent audit of Focus on Energy to make sure that ratepayers are getting their money’s worth … We need more certainty on program effectiveness.” Cowles added he still believes, however, “these efforts can provide benefits to ratepayers in Wisconsin.”

Under the new utility contribution plan, the state will collect $120 million from utilities in 2011, $160 in 2012, $204 in 2013 and $256 million in 2014. Previously, the state only collected about $100 million a year.

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