| (D) The state agency that administers the federal weatherization
program.
(14) The utility shall file an affidavit attesting
to the completion of notice within 14 days after the application is
filed.
(g) Incentive payments. The incentive payments for
each customer class shall not exceed 100% of avoided cost, as determined
in accordance with this section. The incentive payments shall be set
by each utility with the objective of achieving its energy and demand
savings goals at the lowest reasonable cost per program. Different
incentive levels may be established for areas that have historically
been underserved by the utility's energy efficiency programs or for
other appropriate reasons. Utilities may adjust incentive payments
during the program year, but such adjustments must be clearly publicized
in the materials used by the utility to set out the program rules
and describe the programs to participating energy efficiency service
providers.
(h) Energy efficiency performance bonus. A utility
that exceeds its demand and energy reduction goals established in
this section at a cost that does not exceed the cost caps established
in subsection (f)(7) of this section shall be awarded a performance
bonus calculated in accordance with this subsection. The performance
bonus shall be based on the utility's energy efficiency achievements
for the previous program year. The bonus calculation shall not include
demand or energy savings that result from programs other than programs
implemented under this section.
(1) The performance bonus shall entitle the utility
to receive a share of the net benefits realized in meeting its demand
reduction goal established in this section.
(2) Net benefits shall be calculated as the sum of
total avoided cost associated with the eligible programs administered
by the utility minus the sum of all program costs. Total avoided costs
and program costs shall be calculated in accordance with this section.
(3) Beginning with the 2012 program year, a utility
that exceeds 100% of its demand and energy reduction goals shall receive
a bonus equal to 1% of the net benefits for every 2% that the demand
reduction goal has been exceeded, with a maximum of 10% of the utility's
total net benefits.
(4) The commission may reduce the bonus otherwise permitted
under this subsection for a utility with a lower goal, higher administrative
spending cap, or higher EECRF cost cap established by the commission
pursuant to subsection (e)(2) of this section. The bonus shall be
considered in the EECRF proceeding in which the bonus is requested.
(5) In calculating net benefits to determine a performance
bonus, a discount rate equal to the utility's weighted average cost
of capital of the utility and an escalation rate of 2% shall be used.
The utility shall provide documentation for the net benefits calculation,
including, but not limited to, the weighted average cost of capital,
useful life of equipment or measure, and quantity of each measure
implemented.
(6) The bonus shall be allocated in proportion to the
program costs associated with meeting the demand and energy goals
and allocated to eligible customers on a rate class basis.
(7) A bonus earned under this section shall not be
included in the utility's revenues or net income for the purpose of
establishing a utility's rates or commission assessment of its earnings.
(i) Utility administration. The cost of administration
shall not exceed 15% of a utility's total program costs. The cost
of research and development shall not exceed 10% of a utility's total
program costs for the previous 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
pursuant to subsection (e)(2) of this section is granted. Any portion
of these costs which are 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
pursuant to subsection (f) of this section;
(G) the costs paid by a utility pursuant to PURA §33.023(b)
for an EECRF proceeding conducted pursuant to subsection (f) of this
section; 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, deemed savings estimates 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 REPs and EESPs 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 (s) 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.
(j) 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.
(k) 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
Cont'd... |
