| (D) If a utility's prior five-year average load growth,
calculated under subparagraph (A) of this paragraph, is negative,
the utility shall use the demand reduction goal calculated using the
alternative method approved by the commission beginning with the 2013
program year or, if the commission has not approved an alternative
method, the utility shall use the previous year's demand reduction
goal.
(E) A utility shall not claim savings obtained from
energy efficiency measures funded through settlement orders or count
towards the bonus calculation any savings obtained from grant incentives
that have been awarded directly to the utility for energy efficiency
programs.
(F) Savings achieved through programs for hard-to-reach
customers shall be no less than 5.0% of the utility's total demand
reduction goal.
(G) Utilities may apply peak savings on a per project
basis to summer or winter peak, but not to both summer and winter
peaks.
(4) An electric utility shall administer a portfolio
of energy efficiency programs designed to meet an energy savings goal
calculated from its demand savings goal, using a 20% conservation
load factor.
(5) Electric utilities shall administer a portfolio
of energy efficiency programs to effectively and efficiently achieve
the goals set out in this section.
(A) Incentive payments may be made under standard offer
contracts, market transformation contracts, or as part of a self-delivered
program for energy savings and demand reductions. Each electric utility
shall establish standard incentive payments to achieve the objectives
of this section.
(B) Projects or measures under a standard offer, market
transformation, or self-delivered program are not eligible for incentive
payments or compensation if:
(i) A project would achieve demand or energy reduction
by eliminating an existing function, shutting down a facility or operation,
or would result in building vacancies or the re-location of existing
operations to a location outside of the area served by the utility
conducting the program, except for an appliance recycling program
consistent with this section.
(ii) A measure would be adopted even in the absence
of the energy efficiency service provider's proposed energy efficiency
project, except in special cases, such as hard-to-reach and weatherization
programs, or where free riders are accounted for using a net to gross
adjustment of the avoided costs, or another method that achieves the
same result.
(iii) A project results in negative environmental or
health effects, including effects that result from improper disposal
of equipment and materials.
(C) Ineligibility under subparagraph (B) of this paragraph
does not apply to standard offer, market transformation, and self-delivered
programs aimed at energy code adoption, implementation, compliance,
and enforcement under subsection (k) of this section, nor does it
preclude standard offer, market transformation, or self-delivered
programs promoting energy efficiency measures also required by energy
codes to the degree such codes do not achieve full compliance rates.
(D) A utility in an area in which customer choice is
not offered may achieve the goals of paragraphs (1) and (2) of this
subsection by:
(i) providing rebate or incentive funds directly to
eligible residential and commercial customers for programs implemented
under this section; or
(ii) developing, subject to commission approval, new
programs other than standard offer programs and market transformation
programs, to the extent that the new programs satisfy the same cost-effectiveness
standard as standard offer programs and market transformation programs
using the process outlined in subsection (q) of this section.
(E) For a utility in an area in which customer choice
is offered, the utility may achieve the goal of this section in rural
areas by providing rebate or incentive funds directly to customers
after demonstrating to the commission in a contested case hearing
that the goal requirement cannot be met through the implementation
of programs by retail electric providers or energy efficiency service
providers in the rural areas.
(f) 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.
(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;
Cont'd... |
