(a) Energy conservation program authority. A local
distribution company may offer to residential and commercial customers
and prospective residential and commercial customers and provide to
those customers an energy conservation program pursuant to this section
and Texas Utilities Code, §§104.401-104.403. The Commission
has exclusive original jurisdiction over energy conservation programs
implemented by local distribution companies. A political subdivision
served by a local distribution company that implements an energy conservation
program approved by the Commission pursuant to this section shall
not limit, restrict, or otherwise prevent an eligible customer from
participating in the energy conservation program based on the type
or source of energy delivered to its customers.
(b) Definitions.
(1) Administrative costs--All prudently incurred costs
of creating, managing, and administering an ECP portfolio.
(2) Director--The Director of the Gas Services Department
of the Oversight and Safety Division or the Director's delegate.
(3) Energy conservation program (ECP)--A particular
program that promotes energy conservation or energy efficiency.
(4) ECP portfolio--The entire group of energy conservation
programs offered to a service area by a local distribution company
as described in subsection (f) of this section. The portfolio may
consist of one or more programs.
(5) ECP rate--The energy conservation program rate
approved by the Commission in the form of a monthly volumetric charge
designed to recover an LDC's authorized administrative and portfolio
costs.
(6) Gas Services--The Gas Services Department of the
Oversight and Safety Division of the Commission.
(7) Local distribution company (LDC)--An investor-owned
gas utility that operates a retail gas distribution system.
(8) Portfolio costs--All prudently incurred non-administrative
costs that an LDC seeks to recover through the ECP rate to implement
and deliver an ECP portfolio to customers and prospective customers,
including but not limited to research and development costs, payment
of rebates, material costs, the costs associated with installation
and removal of replaced materials and/or equipment, and the cost of
education and customer awareness materials related to conservation
or efficiency.
(9) Portfolio term--The term during which an approved
ECP portfolio will be in effect.
(10) Program year--The 12-month period beginning the
first day of the month following the Commission's approval of the
ECP portfolio.
(11) Research and development costs--The costs prudently
incurred by an LDC to conduct market and engineering studies for the
feasibility and design of potential ECPs. Research and development
costs cannot exceed 5% of portfolio costs.
(c) General requirements.
(1) An LDC may recover costs of an ECP portfolio if
the ECP portfolio is approved by the Commission pursuant to this section
and the LDC implements the approved ECP portfolio. An LDC seeking
to implement an ECP portfolio shall apply with Gas Services and receive
a final order from the Commission before beginning to recover the
approved costs of the ECP portfolio.
(2) An LDC applying for an ECP portfolio shall submit
an application for each service area in which it seeks to implement
an ECP.
(3) If the Commission approves the LDC's application
or approves the application with modifications, the LDC may recover
costs to implement the ECP portfolio, including costs incurred to
design, market, implement, administer, and deliver the ECP portfolio.
Any costs included in an ECP portfolio approved by the Commission
shall be fully subject to review by the Commission for reasonableness
and prudence during the LDC's next statement of intent rate proceeding.
The LDC shall include support for this determination in its next statement
of intent application. ECP costs that are imprudent or recovered from
customers without approval of the Commission are subject to refund
as determined by the Commission.
(d) Contents of application. An LDC may apply for approval
of an ECP portfolio by submitting an application to Gas Services.
(1) Initial ECP portfolio application. An initial application
for approval of an ECP portfolio shall include:
(A) a description of any existing energy conservation
programs offered by the LDC in the applicable service area prior to
the effective date of this section;
(B) a list and detailed description of each proposed
ECP;
(C) the objectives for each proposed ECP;
(D) the proposed per-program year portfolio costs for
each ECP and the ECP portfolio;
(E) the proposed per-program year administrative costs
for each ECP and the ECP portfolio;
(F) the proposed per-program year amount and proportion
of ECP portfolio costs and administrative costs to be funded by customers;
(G) the proposed per-program year amount and proportion
of ECP portfolio costs and administrative costs to be funded by shareholders;
(H) the projected annual consumption reduction per
customer class for each ECP and the ECP portfolio;
(I) the projected annual net cost savings per customer
class for each ECP and the ECP portfolio;
(J) a copy of the notice to customers and an affidavit
stating the method of notice and the date or dates on which the notice
was given;
(K) copies of written correspondence received by the
LDC in response to the notice;
(L) copies of any proposed advertisements or promotional
materials that the LDC intends to distribute to customers if an ECP
portfolio is approved;
(M) copies of the proposed ECP rate schedule or schedules;
(N) calculation of the proposed ECP rate;
(O) normalized historical annual volumes per customer
class;
(P) projected volumes for the upcoming program year
per customer class;
(Q) any other information that supports determination
of the ECP rate; and
(R) the name of the LDC's representative, business
address, telephone number, and email address.
(2) Subsequent ECP portfolio application. An LDC shall
re-apply for approval of its ECP portfolio in accordance with this
paragraph. A subsequent application shall be filed 45 days following
the end of the ECP portfolio's second program year. A subsequent application
for approval of an ECP portfolio shall include:
(A) a list and detailed description of each proposed
ECP;
(B) the objectives for each ECP;
(C) the proposed per-program year portfolio costs for
each ECP and the ECP portfolio;
(D) the proposed per-program year administrative costs
for each ECP and the ECP portfolio;
(E) the actual historical per-program year portfolio
costs for each ECP and the ECP portfolio;
(F) the actual historical per-program year administrative
costs for each ECP and the ECP portfolio;
(G) the historical and proposed per-program year amount
and proportion of ECP portfolio costs and administrative costs to
be funded by customers;
(H) the historical and proposed per-program year amount
and proportion of ECP portfolio costs and administrative costs to
be funded by shareholders;
(I) the projected per-program year consumption reduction
per customer class for each ECP and the ECP portfolio over the new
portfolio term and the actual historical per-program year consumption
reduction per customer class for each ECP and the ECP portfolio over
the previous portfolio term;
(J) the projected per-program year net cost savings
per customer class for each ECP and the ECP portfolio over the new
portfolio term and the actual historical per-program year cost savings
per customer class for each ECP and the ECP portfolio over the previous
portfolio term;
(K) copies of any proposed advertisements or promotional
materials that the LDC intends to distribute to customers if the ECP
portfolio is approved;
(L) copies of the proposed rate schedule or schedules;
(M) calculation of the proposed ECP rate;
(N) normalized historical annual volumes per customer
class;
(O) projected volumes for the upcoming program year
per customer class;
(P) any other information that supports determination
of the ECP rate; and
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