| 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 REPs, 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.
(l) 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.
(m) 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 EESPs to conduct a market
transformation program, and shall include in its annual report the
justification for the selection of an EESP to conduct a market transformation
program on a sole-source basis.
(5) A load-control standard-offer program shall not
permit an energy efficiency service provider to receive incentives
under the program for the same demand reduction benefit for which
it is compensated under a capacity-based demand response program conducted
by an independent organization, independent system operator, or regional
transmission operator. The qualified scheduling entity representing
an energy efficiency service provider is not prohibited from receiving
revenues from energy sold in ERCOT markets in addition to any incentive
for demand reduction offered under a utility load-control standard
offer program.
(6) Utilities offering load management programs shall
work with ERCOT and energy efficiency service providers to identify
eligible loads and shall integrate such loads into the ERCOT markets
to the extent feasible. Such integration shall not preclude the continued
operation of utility load management programs that cannot be feasibly
integrated into the ERCOT markets or that continue to provide separate
and distinct benefits.
(n) Energy efficiency plans and reports (EEPR). Each
electric utility shall file by April 1 of each year an energy efficiency
plan and report in a project annually designated for this purpose,
as described in this subsection. The plan and report shall be filed
as a searchable pdf document.
(1) Each electric utility's energy efficiency plan
and report shall describe how the utility intends to achieve the goals
set forth in this section and comply with the other requirements of
this section. The plan and report shall be based on program years.
The plan and report shall propose an annual budget sufficient to reach
the goals specified in this section.
(2) Each electric utility's plan and report shall include:
(A) the utility's total actual and weather-adjusted
peak demand and actual and weather-adjusted peak demand for residential
and commercial customers for the previous five years;
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