| (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;
(F) may factor in the estimated level of enforcement
and compliance with existing energy codes in determining energy and
peak demand savings; and
(G) may require energy efficiency service providers
to provide the following:
(i) a description of how the value of any incentive
will be passed on to customers;
(ii) evidence of experience and good credit rating;
(iii) a list of references;
(iv) all applicable licenses required under state law
and local building codes;
(v) evidence of all building permits required by governing
jurisdictions; and
(vi) evidence of all necessary insurance.
(2) Standard offer and self-delivered programs:
(A) shall require energy efficiency service providers
to identify peak demand and energy savings for each project in the
proposals they submit to the utility;
(B) shall be neutral with respect to specific technologies,
equipment, or fuels. Energy efficiency projects may lead to switching
from electricity to another energy source, provided that the energy
efficiency project results in overall lower energy costs, lower energy
consumption, and the installation of high efficiency equipment. Utilities
may not pay incentives for a customer to switch from gas appliances
to electric appliances except in connection with the installation
of high efficiency combined heating and air conditioning systems;
(C) shall require that all projects result in a reduction
in purchased energy consumption, or peak demand, or a reduction in
energy costs for the end-use customer;
(D) shall encourage comprehensive projects incorporating
more than one energy efficiency measure;
(E) shall be limited to projects that result in consistent
and predictable energy or peak demand savings over an appropriate
period of time based on the life of the measure; and
(F) may permit a utility to use poor performance, including
customer complaints, as a criterion to limit or disqualify an energy
efficiency service provider or its affiliate from participating in
a program.
(3) A market transformation program shall identify:
(A) program goals;
(B) market barriers the program is designed to overcome;
(C) key intervention strategies for overcoming those
barriers;
(D) estimated costs and projected energy and capacity
savings;
(E) a baseline study that is appropriate in time and
geographic region. In establishing a baseline, the study shall consider
the level of regional implementation and enforcement of any applicable
energy code;
(F) program implementation timeline and milestones;
(G) a description of how the program will achieve the
transition from extensive market intervention activities toward a
largely self-sustaining market;
(H) a method for measuring and verifying savings; and
(I) the period over which savings shall be considered
to accrue, including a projected date by which the market will be
sufficiently transformed so that the program should be discontinued.
(4) A market transformation program shall be designed
to achieve energy or peak demand savings, or both, and lasting changes
in the way energy efficient goods or services are distributed, purchased,
installed, or used over a defined period of time. A utility shall
use fair competitive procedures to select energy efficiency service
providers to conduct a market transformation program, and shall include
in its annual report the justification for the selection of an energy
efficiency service provider to conduct a market transformation program
on a sole-source basis.
Cont'd... |
