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(g) Utility administration. The cost of administration
in a program year shall not exceed 15% of a utility's total program
costs for that program year. The cost of research and development
in a program year shall not exceed 10% of a utility's total program
costs for that program year. The cumulative cost of administration
and research and development shall not exceed 20% of a utility's total
program costs, unless a good cause exception filed under subsection
(e)(2) of this section is granted. Any portion of these costs that
is not directly assignable to a specific program shall be allocated
among the programs in proportion to the program incentive costs. Any
bonus awarded by the commission shall not be included in program costs
for the purpose of applying these limits.
(1) Administrative costs include all reasonable and
necessary costs incurred by a utility in carrying out its responsibilities
under this section, including:
(A) conducting informational activities designed to
explain the standard offer programs and market transformation programs
to energy efficiency service providers, retail electric providers,
and vendors;
(B) for a utility offering self-delivered programs,
internal utility costs to conduct outreach activities to customers
and energy efficiency service providers will be considered administration;
(C) providing informational programs to improve customer
awareness of energy efficiency programs and measures;
(D) reviewing and selecting energy efficiency programs
in accordance with this section;
(E) providing regular and special reports to the commission,
including reports of energy and demand savings;
(F) a utility's costs for an EECRF proceeding conducted
under §25.182(d) of this title;
(G) the costs paid by a utility pursuant to PURA §33.023(b)
for an EECRF proceeding conducted under §25.182(d) of this title;
however, these costs are not included in the administrative caps applied
in this paragraph; and
(H) any other activities that are necessary and appropriate
for successful program implementation.
(2) A utility shall adopt measures to foster competition
among energy efficiency service providers for standard offer, market
transformation, and self-delivered programs, such as limiting the
number of projects or level of incentives that a single energy efficiency
service provider and its affiliates is eligible for and establishing
funding set-asides for small projects.
(3) A utility may establish funding set-asides or other
program rules to foster participation in energy efficiency programs
by municipalities and other governmental entities.
(4) Electric utilities offering standard offer, market
transformation, and self-delivered programs shall use standardized
forms, procedures, and program templates. The electric utility shall
file any standardized materials, or any change to it, with the commission
at least 60 days prior to its use. In filing such materials, the utility
shall provide an explanation of changes from the version of the materials
that was previously used. For standard offer, market transformation,
and self-delivered programs, the utility shall provide relevant documents
to retail electric providers and energy efficiency service providers
and work collaboratively with them when it changes program documents,
to the extent that such changes are not considered in the energy efficiency
implementation project described in subsection (q) of this section.
(5) Each electric utility in an area in which customer
choice is offered shall conduct programs to encourage and facilitate
the participation of retail electric providers and energy efficiency
service providers in the delivery of efficiency and demand response
programs, including:
(A) Coordinating program rules, contracts, and incentives
to facilitate the statewide marketing and delivery of the same or
similar programs by retail electric providers;
(B) Setting aside amounts for programs to be delivered
to customers by retail electric providers and establishing program
rules and schedules that will give retail electric providers sufficient
time to plan, advertise, and conduct energy efficiency programs, while
preserving the utility's ability to meet the goals in this section;
and
(C) Working with retail electric providers and energy
efficiency service providers to evaluate the demand reductions and
energy savings resulting from time-of-use prices; home-area network
devices, such as in-home displays; and other programs facilitated
by advanced meters to determine the demand and energy savings from
such programs.
(h) Standard offer programs. A utility's standard offer
program shall be implemented through program rules and standard offer
contracts that are consistent with this section. Standard offer contracts
will be available to any energy efficiency service provider that satisfies
the contract requirements prescribed by the utility under this section
and demonstrates that it is capable of managing energy efficiency
projects under an electric utility's energy efficiency program.
(i) Market transformation programs. Market transformation
programs are strategic efforts, including, but not limited to, incentives
and education designed to reduce market barriers for energy efficient
technologies and practices. Market transformation programs may be
designed to obtain energy savings or peak demand reductions beyond
savings that are reasonably expected to be achieved as a result of
current compliance levels with existing building codes applicable
to new buildings and equipment efficiency standards or standard offer
programs. Market transformation programs may also be specifically
designed to express support for early adoption, implementation, and
enforcement of the most recent version of the International Energy
Conservation Code for residential or commercial buildings by local
jurisdictions, express support for more effective implementation and
enforcement of the state energy code and compliance with the state
energy code, and encourage utilization of the types of building components,
products, and services required to comply with such energy codes.
The existence of federal, state, or local governmental funding for,
or encouragement to utilize, the types of building components, products,
and services required to comply with such energy codes does not prevent
utilities from offering programs to supplement governmental spending
and encouragement. Utilities should cooperate with the retail electric
providers, and, where possible, leverage existing industry-recognized
programs that have the potential to reduce demand and energy consumption
in Texas and consider statewide administration where appropriate.
Market transformation programs may operate over a period of more than
one year and may demonstrate cost-effectiveness over a period longer
than one year.
(j) Self-delivered programs. A utility may use internal
or external resources to design, administer, and deliver self-delivered
programs. The programs shall be tailored to the unique characteristics
of the utility's service area in order to attract customer and energy
efficiency service provider participation. The programs shall meet
the same cost effectiveness requirements as standard offer and market
transformation programs.
(k) Requirements for standard offer, market transformation,
and self-delivered programs. A utility's standard offer, market transformation,
and self-delivered programs shall meet the requirements of this subsection.
A utility may conduct information and advertising campaigns to foster
participation in standard offer, market transformation, and self-delivered
programs.
(1) Standard offer, market transformation, and self-delivered
programs:
(A) shall describe the eligible customer classes and
allocate funding among the classes on an equitable basis;
(B) may offer standard incentive payments and specify
a schedule of payments that are sufficient to meet the goals of the
program, which shall be consistent with this section, or any revised
payment formula adopted by the commission. The incentive payments
may include both payments for energy and demand savings, as appropriate;
(C) shall not permit the provision of any product,
service, pricing benefit, or alternative terms or conditions to be
conditioned upon the purchase of any other good or service from the
utility, except that only customers taking transmission and distribution
services from a utility can participate in its energy efficiency programs;
(D) shall provide for a complaint process that allows:
(i) an energy efficiency service provider to file a
complaint with the commission against a utility; and
(ii) a customer to file a complaint with the utility
against an energy efficiency service provider;
(E) may permit the use of distributed renewable generation,
geothermal, heat pump, solar water heater and combined heat and power
technologies, involving installations of ten megawatts or less;
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