| (12) The scope of an EECRF proceeding includes the
extent to which the costs recovered through the EECRF complied with
PURA §39.905, this section, and §25.181 of this title; the
extent to which the costs recovered were reasonable and necessary
to reduce demand and energy growth; and a determination of whether
the costs to be recovered through an EECRF are reasonable estimates
of the costs necessary to provide energy efficiency programs and to
meet or exceed the utility's energy efficiency goals. The proceeding
shall not include a review of program design to the extent that the
programs complied with the energy efficiency implementation project
(EEIP) process defined in §25.181(q) of this title. The commission
shall not allow recovery of expenses that are designated as non-recoverable
under §25.231(b)(2) of this title (relating to Cost of Service).
(13) Notice of a utility's filing of an EECRF application
is reasonable if the utility provides in writing a general description
of the application and the docket number assigned to the application
within seven days of the application filing date to:
(A) All parties in the utility's most recent completed
EECRF docket;
(B) All retail electric providers that are authorized
by the registration agent to provide service in the utility's service
area at the time the EECRF application is filed;
(C) All parties in the utility's most recent completed
base-rate proceeding; and
(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.
(15) The commission may approve a utility's request
to establish an EECRF revenue requirement or EECRF rates that are
lower than the amounts otherwise determined under this section.
(e) Energy efficiency performance bonus. A utility
that exceeds its demand and energy reduction goals established in
§25.181 of this title at a cost that does not exceed the cost
caps established in subsection (d)(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 §25.181 of this title.
(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 §25.181 of this title.
(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. Program costs shall
include the cost of incentives, EM&V contractor costs, any shareholder
bonus awarded to the utility, and actual or allocated research and
development and administrative costs, but shall not include any interest
amounts applied to over- or under-recoveries. Total avoided costs
and program costs shall be calculated in accordance with this section
and §25.181 of this title.
(3) 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
under §25.181(e)(2) of this title. 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
under §25.181 of this title 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.
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