| (a) Purpose. The purpose of this section is to ensure
that:
(1) electric utilities administer energy efficiency
incentive programs in a market-neutral, nondiscriminatory manner and
do not offer competitive services, except as permitted in §25.343
of this title (relating to Competitive Energy Services) or this section;
(2) all customers, in all eligible customer classes
and all areas of an electric utility's service area, have a choice
of and access to the utility's portfolio of energy efficiency programs
that allow each customer to reduce energy consumption, summer and
winter peak demand, or energy costs; and
(3) each electric utility annually provides, through
market-based standard offer programs, targeted market-transformation
programs, or utility self-delivered programs, incentives sufficient
for residential and commercial customers, retail electric providers,
and energy efficiency service providers to acquire additional cost-effective
energy efficiency, subject to EECRF caps established in §25.182(d)(7)
of this title (relating to Energy Efficiency Cost Recovery Factor),
for the utility to achieve the goals in subsection (e) of this section.
(b) Application. This section applies to electric utilities
and the Electric Reliability Council of Texas, Inc. (ERCOT).
(c) Definitions. The following terms, when used in
this section and in §25.182 of this title, shall have the following
meanings unless the context indicates otherwise:
(1) Affiliate --
(A) A person who directly or indirectly owns or holds
at least 5.0% of the voting securities of an energy efficiency service
provider;
(B) A person in a chain of successive ownership of
at least 5.0% of the voting securities of an energy efficiency service
provider;
(C) A corporation that has at least 5.0% of its voting
securities owned or controlled, directly or indirectly, by an energy
efficiency service provider;
(D) A corporation that has at least 5.0% of its voting
securities owned or controlled, directly or indirectly, by:
(i) a person who directly or indirectly owns or controls
at least 5.0% of the voting securities of an energy efficiency service
provider; or
(ii) a person in a chain of successive ownership of
at least 5.0% of the voting securities of an energy efficiency service
provider; or
(E) A person who is an officer or director of an energy
efficiency service provider or of a corporation in a chain of successive
ownership of at least 5.0% of the voting securities of an energy efficiency
service provider;
(F) A person who actually exercises substantial influence
or control over the policies and actions of an energy efficiency service
provider;
(G) A person over which the energy efficiency service
provider exercises the control described in subparagraph (F) of this
paragraph;
(H) A person who exercises common control over an energy
efficiency service provider, where "exercising common control over
an energy efficiency service provider" means having the power, either
directly or indirectly, to direct or cause the direction of the management
or policies of an energy efficiency service provider, without regard
to whether that power is established through ownership or voting of
securities or any other direct or indirect means; or
(I) A person who, together with one or more persons
with whom the person is related by ownership, marriage or blood relationship,
or by action in concert, actually exercises substantial influence
over the policies and actions of an energy efficiency service provider
even though neither person may qualify as an affiliate individually.
(2) Baseline--A relevant condition that would have
existed in the absence of the energy efficiency project or program
being implemented, including energy consumption that would have occurred.
Baselines are used to calculate program-related demand and energy
savings. Baselines can be defined as either project-specific baselines
or performance standard baselines (e.g., building codes).
(3) Claimed savings--Values reported by an electric
utility after the energy efficiency activities have been completed,
but prior to the time an independent, third-party evaluation of the
savings is performed. As with projected savings estimates, these values
may utilize results of prior evaluations and/or values in technical
reference manuals. However, they are adjusted from projected savings
estimates by correcting for any known data errors and actual installation
rates and may also be adjusted with revised values for factors such
as per-unit savings values, operating hours, and savings persistence
rates. Can be indicated as first year, annual demand or energy savings,
and/or lifetime energy or demand savings values. Can be indicated
as gross savings and/or net savings values.
(4) Commercial customer--A non-residential customer
taking service at a point of delivery at a distribution voltage under
an electric utility's tariff during the prior program year or a non-profit
customer or government entity, including an educational institution.
For purposes of this section, each point of delivery shall be considered
a separate customer.
(5) Competitive energy efficiency services--Energy
efficiency services that are defined as competitive under §25.341
of this title (relating to Definitions).
(6) Conservation load factor--The ratio of the annual
energy savings goal, in kilowatt hours (kWh), to the peak demand goal
for the year, measured in kilowatts (kW) and multiplied by the number
of hours in the year.
(7) Deemed savings calculation--An industry-wide engineering
algorithm used to calculate energy and/or demand savings of the installed
energy efficiency measure that has been developed from common practice
that is widely considered acceptable for the measure and purpose,
and is applicable to the situation being evaluated. May include stipulated
assumptions for one or more parameters in the algorithm, but typically
requires some data associated with actual installed measure. An electric
utility may use the calculation with documented measure-specific assumptions,
instead of energy and peak demand savings determined through measurement
and verification activities or the use of deemed savings.
(8) Deemed savings value--An estimate of energy or
demand savings for a single unit of an installed energy efficiency
measure that has been developed from data sources and analytical methods
that are widely considered acceptable for the measure and purpose,
and is applicable to the situation being evaluated. An electric utility
may use deemed savings values instead of energy and peak demand savings
determined through measurement and verification activities.
(9) Demand--The rate at which electric energy is used
at a given instant, or averaged over a designated period, usually
expressed in kW or megawatts (MW).
(10) Demand savings--A quantifiable reduction in demand.
(11) Eligible customers--Residential and commercial
customers. In addition, to the extent that they meet the criteria
for participation in load management standard offer programs developed
for industrial customers and implemented prior to May 1, 2007, industrial
customers are eligible customers solely for the purpose of participating
in such programs.
(12) Energy efficiency--Improvements in the use of
electricity that are achieved through customer facility or customer
equipment improvements, devices, processes, or behavioral or operational
changes that produce reductions in demand or energy consumption with
the same or higher level of end-use service and that do not materially
degrade existing levels of comfort, convenience, and productivity.
(13) Energy Efficiency Cost Recovery Factor (EECRF)--An
electric tariff provision, compliant with §25.182 of this title,
ensuring timely and reasonable cost recovery for utility expenditures
made to satisfy the goal of PURA §39.905 that provide for a portfolio
of cost-effective energy efficiency programs under this section.
(14) Energy efficiency measures--Equipment, materials,
and practices, including practices that result in behavioral or operational
changes, implemented at a customer's site on the customer's side of
the meter that result in a reduction at the customer level and/or
on the utility's system in electric energy consumption, measured in
kWh, or peak demand, measured in kW, or both. These measures may include
thermal energy storage and removal of an inefficient appliance so
long as the customer need satisfied by the appliance is still met.
(15) Energy efficiency program--The aggregate of the
energy efficiency activities carried out by an electric utility under
this section or a set of energy efficiency projects carried out by
an electric utility under the same name and operating rules.
(16) Energy efficiency project--An energy efficiency
measure or combination of measures undertaken in accordance with a
standard offer, market transformation program, or self-delivered program.
(17) Energy efficiency service provider--A person or
other entity that installs energy efficiency measures or performs
other energy efficiency services under this section. An energy efficiency
service provider may be a retail electric provider or commercial customer,
provided that the commercial customer has a peak load equal to or
greater than 50 kW. An energy efficiency service provider may also
be a governmental entity or a non-profit organization, but may not
be an electric utility.
(18) Energy savings--A quantifiable reduction in a
customer's consumption of energy that is attributable to energy efficiency
measures, usually expressed in kWh or MWh.
(19) Estimated useful life (EUL)--The number of years
until 50% of installed measures are still operable and providing savings,
and is used interchangeably with the term "measure life". The EUL
determines the period of time over which the benefits of the energy
efficiency measure are expected to accrue.
(20) Evaluated savings--Savings estimates reported
by the EM&V contractor after the energy efficiency activities
and an impact evaluation have been completed. Differs from claimed
savings in that the EM&V contractor has conducted some of the
evaluation and/or verification activities. These values may rely on
claimed savings for factors such as installation rates and the Technical
Reference Manual for values such as per unit savings values and operating
hours. These savings estimates may also include adjustments to claimed
savings for data errors, per unit savings values, operating hours,
installation rates, savings persistence rates, or other considerations.
Can be indicated as first year, annual demand or energy savings, and/or
lifetime energy or demand savings values. Can be indicated as gross
savings and/or net savings values.
(21) Evaluation--The conduct of any of a wide range
of assessment studies and other activities aimed at determining the
effects of a program; or aimed at understanding or documenting program
performance, program or program-related markets and market operations,
program-induced changes in energy efficiency markets, levels of demand
or energy savings, or program cost-effectiveness. Market assessment,
monitoring, and evaluation, and measurement and verification (M&V)
are aspects of evaluation.
(22) Evaluation, measurement, and verification (EM&V)
contractor--One or more independent, third-party contractors selected
and retained by the commission to plan, conduct, and report on energy
efficiency evaluation activities, including verification.
(23) Free driver--Customers who do not directly participate
in an energy efficiency program, but who undertake energy efficiency
actions in response to program activity.
(24) Free rider--A program participant who would have
implemented the program measure or practice in the absence of the
program. Free riders can be total, in which the participant's activity
would have completely replicated the program measure; partial, in
which the participant's activity would have partially replicated the
program measure; or deferred, in which the participant's activity
would have completely replicated the program measure, but at a time
after the time the program measure was implemented.
(25) Growth in demand--The annual increase in demand
in the Texas portion of an electric utility's service area at time
of peak demand, as measured in accordance with this section.
(26) Gross savings--The change in energy consumption
and/or demand that results directly from program-related actions taken
by participants in an efficiency program, regardless of why they participated.
(27) Hard-to-reach customers--Residential customers
with an annual household income at or below 200% of the federal poverty
guidelines.
(28) Impact evaluation--An evaluation of the program-specific,
directly induced changes (e.g., energy and/or demand reduction) attributable
to an energy efficiency program.
(29) Incentive payment--Payment made by a utility to
an energy efficiency service provider, an end-use customer, or third-party
contractor to implement and/or attract customers to energy efficiency
programs, including standard offer, market transformation and self-delivered
programs.
Cont'd... |
