Section 1
:
Purpose
In the Energy Conservation Endorsement Act of 1977, Ark. Code
Ann. §§
23-3-401 to 405
(2003), ("the Act"), the Arkansas General Assembly recognized that "enormous
amounts of energy are wasted by consumers of all classes and economic levels
due to inadequate insulation of buildings and other inefficiencies in the use
of energy."1 The Act broadly defines "energy
conservation programs and measures,"2 and states
that "energy conservation programs and measures" are broadly defined and that
"[i]t shall be considered a proper and essential function of public utilities
regulated by the Arkansas Public Service Commission to engage in energy
conservation programs, projects, and practices which conserve, as well as
distribute, electrical energy and supplies of natural gas, oil, and other
fuels."3
Furthermore, the Act provides the Commission with the authority
to "propose, develop, solicit, approve, require, implement, and monitor" energy
efficiency programs "by utility companies" if the Commission finds that such
programs and measures "will be beneficial to the ratepayers of such public
utilities and to the utilities themselves."4 "At the
time any such programs or measures are approved and ordered into effect" by the
Commission, the Act requires that the affected utility also "be allowed to
increase its rates or charges as necessary to recover any costs incurred by the
public utility company as a result of its engaging in any such program or
measure."5
Due to the current level and expected increases in energy
prices for both infrastructure investment and commodity purchases, along with
the minimal level of energy efficiency programs in Arkansas, Commission action
regarding energy efficiency is necessary. Consequently, the Commission has
developed these rules. These rules apply to the provision of both electricity
and natural gas service subject to the jurisdiction of the Arkansas Public
Service Commission.
Section
2
: Benefits and Objectives of Energy Efficiency
Programs
A. An overriding focus for
any energy efficiency initiative should be the benefits and objectives of the
initiative. The overall objectives of the initiative are to encourage and
enable utility customers to make the most efficient use of utility capacity and
energy and to discourage inefficient and wasteful use of energy. Objectives can
take the form of standards, codes, or programs. When proposing any one or a
combination of energy efficiency programs, standards, or codes, a utility shall
describe, in qualitative and quantitative terms, how its proposal furthers or
accomplishes any or all of the following objectives or ancillary benefits in
support of energy efficiency that are reasonably applicable to the utility's
proposal. Should the utility determine that its proposal does not accomplish or
meet one or more of the listed objectives or benefits, the utility shall
briefly explain why its proposal does not do so.
* Energy savings directly attributable to program
activities;
* Long-term and permanent changes in behavior, attitudes,
awareness, and knowledge about energy savings and use of energy efficient
technologies in order to achieve energy savings;
* Permanent peak electric demand reduction;
* Energy cost savings and cost-effectiveness;
* Reliability enhancements;
* Energy security benefits;
* Environmental benefits;
* Economic development/competitiveness benefits;
* Increases in system-wide capacity;
* Accelerating the commercialization of advanced or emerging
technologies;
* Improving affordability of energy for all customers;
and
* Implementing programs in an efficient
manner;
B. When providing
information on these objectives, utilities are directed to describe, in
quantitative terms, the benefits and costs of these different aspects of the
program, standard, or code, and to comment on the barriers that impede
accomplishment of these energy efficiency objectives and how to overcome these
barriers. Utilities are also encouraged to provide estimates of the energy
efficiency potential (including demand savings) in Arkansas associated with
these options.
Section 3
: Definitions
Administrator - The entity responsible
for creating and managing an energy efficiency program or portfolio of
programs.
Cost-effective - A standard used to
describe a "net beneficial" result for programs to be implemented, determined
through a process that includes a review of relevant benefit/cost tests. A
"cost-effective" program would be one that has a high probability of providing
aggregate ratepayer benefits to the majority of utility customers.
Deemed Savings - Pre-determined,
validated estimates of energy and peak demand savings attributable to
particular energy efficiency measures, based upon engineering calculations,
baseline studies and/or reasonable assumptions. Such savings are generally
those representing the difference between standard efficiency measures and
energy efficient measures. Deemed savings values must be revised periodically
to reflect new technologies and new federal, state or local policies and
codes.
Demand Response - Changes in energy
use by end use customers from their normal consumption patterns in response to
changes in the price of energy over time, or in response to incentive payments
designed to induce lower energy use at times of high wholesale market prices or
when system reliability is jeopardized.
Energy Efficiency - Reducing the rate
at which energy is used by equipment and/or processes while maintaining or
improving the customer's existing level of comfort and end-use functionality at
a lower customer cost. Reduction in the rate of energy used may be achieved by
substituting more advanced technology or by reorganizing the process to reduce
waste heat, waste cooling, or energy. Demand response is a form of energy
efficiency.
Energy Efficiency Savings - Energy
efficiency (kW, kWh, ccf) savings are determined by comparing measured energy
use before and after implementation of an energy efficiency measure or by
reference to a set of deemed savings approved by the Commission.
Evaluation, Measurement, and Verification
(EM&V) - The performance of studies and activities intended to
determine the actual savings and other effects from energy efficiency programs
and measures.
Implementer - An entity charged by a
utility to deliver programs to customers. Implementers, Administrators, and
utilities may be the same entity, or related by a contract.
Market transformation - Strategic
efforts to induce lasting structural or behavioral changes in the market that
result in increased adoption of energy efficient technologies, services and
practices. Energy savings from market transformation programs must be beyond
that which would be achieved through compliance with building codes and
appliance and equipment efficiency standards.
Measure - The equipment, materials and
practices that when installed and used at a customer site result in a
measurable and verifiable reduction in either purchased energy consumption,
measured energy or peak demand or both.
Portfolio - The entire group of
programs offered by an administrator.
Program - A particular energy
efficiency service or set of services to a particular target population.
Program Plan - A plan to deliver a
portfolio of energy efficiency programs which includes a set of benefit/cost
test results, specific objectives that can be evaluated using quantifiable
measures, and provisions to evaluate, monitor and verify results.
Program Year - The year in which
programs are administered and delivered, for the purposes of planning and
reporting, a program year shall be considered a calendar year, January 1
through December 31.
Section
4
: Administration and Implementation of Energy Efficiency
Programs
A. All electric and gas
utilities in Arkansas under the jurisdiction of the Commission shall propose
and be responsible for the administration and implementation of cost-effective
energy efficiency programs within their service territories. Each utility shall
file an application for approval by the Commission of its portfolio of energy
efficiency programs. The energy efficiency program portfolio of each utility
shall include programs for all customer classes.
B.
Waivers
Exemptions from these rules may be granted by the Commission in
accordance with Rule 2.05 of the Commission's Rules of Practice and Procedure.
Nothing in these Rules shall preclude the Commission from modifying these Rules
on its own initiative or in response to a party's motion and after notice and
hearing.
C.
Independent Administrator
The Commission may designate an administrator independent of
the utilities, although the utility will ultimately retain the responsibility
for compliance with these rules.
Section 5
: Plan Filing
Requirements
A.
General
Requirements
Administrators shall propose general program designs, specific
programs, and specific measures. Administrators may propose programs and/or
measures in any combination. All programs should include the following general
elements:
* A showing of high probability of providing aggregate
ratepayer benefits to the majority of ratepayers.
* The identification of the specific objectives of the
program.
* The identification of the specific EM & V procedures that
will be used to determine whether the program has achieved its stated
objectives.
B.
Portfolio Description and Support
Each plan filing shall address the following:
* demonstration that the scope of programs serves all customer
classes;
* plan benefit/cost analysis listing total costs and benefits,
including expected savings goals for the portfolio of programs;
* cost recovery proposal; and
* any additional supporting information the administrator may
propose.
C.
Program Description and Support
Each program filing shall address the following:
* services to be provided;
* target population;
* all barriers being addressed and how they are being
addressed;
* proposed customer incentives (if any);
* an evaluation, measurement and verification plan using an
industry accepted protocol approved by the Commission;
* timeframe if the program term is limited;
* a plan for addressing over-subscription to the
program;
* an analysis demonstrating that the program or measure is
beneficial including the prescribed cost / benefit analyses;
* estimated energy and peak demand savings and the basis for
these savings estimates, which may include Deemed Savings as approved by the
Commission; and
* any additional analyses the administrator may propose.
D.
Uniformity of
Programs
Programs addressing both electric and gas customers shall be
coordinated to the extent reasonable.
Fuel switching and load building programs not otherwise
authorized under the Commission Rules and Regulations Governing Promotional
Practices of Electric and Gas Utilities shall not be included as energy
efficiency programs.
E.
Customer Incentives
Programs may include incentives to encourage customers to make
energy efficient investments if the incentives are cost justified and are a
component of a program that has a high probability of providing aggregate
ratepayer benefits to the majority of utility customers.
Incentives may include information, technical assistance,
leasing programs, product giveaways and direct financial inducements. Financial
inducements may include but are not limited to rebates, discounted products and
services, and low rate financing.
All customer incentives shall be considered in the benefit/cost
testing of programs. Costs of customer incentives shall be considered a direct
program cost.
Incentives should not be any higher than necessary to overcome
the customers' barriers to invest in the measure and should be reduced or
eliminated as the measure becomes more of a standard practice.
F.
Statewide
Programs
The Commission, after notice and hearing, may direct utilities
to offer uniform statewide energy efficiency and conservation programs if it
determines such standardization to be the most cost-effective result and in the
public interest. Utilities may request approval to offer statewide or
region-wide programs for which public messages, commercial terms and
conditions, and customer reception are best served by such an approach.
G.
Pilot and Quick
Start Programs
The Commission may approve pilot energy efficiency programs. A
pilot program design is distinct from Quick Start and other program designs in
that it shall include explicit questions that the pilot will address; explicit
EM & V designed to address pilot questions; estimates of program costs and
savings; a provisional benefit/cost evaluation; and shall be of limited
duration until reassessment after a pre-determined period. Pilot programs shall
have characteristics from among the following:
* Addressing a new end use;
* Applying a new technology or a new delivery method;
Quick Start programs are programs that are limited in nature
and that in other jurisdictions have been shown to have a high probability of
providing aggregate ratepayer benefits to the majority of utility customers.
Although estimates of program costs must be included in proposals to implement
all Initial Plan Quick Start programs, Quick Start programs are exempt from the
requirement to provide cost-effectiveness showings under the benefit-cost tests
of Section 6. Estimated energy and demand savings and an explicit EM&V
program must be included for all Quick Start programs except the statewide
Education program.
Programs that are neither Pilots nor Quick Start programs must
comply with all of the plan filing requirements of this section.
All costs for Pilot, Quick Start, and other programs shall be
considered eligible for cost recovery.
H.
Program Filing Procedures and
Schedule
A program filed under these rules shall not be implemented
until a Commission order is issued expressly approving the program.
The period from the filing date to the date of the Commission
order shall be no more than one hundred and eighty days which will permit
investigation, analysis, and adjudication of the program.
The Commission shall establish a procedural schedule for the
review of each program filing.
Section 6
: Benefit/Cost Tests
A. Administrators shall present sufficiently
detailed calculations, sensitivity analyses, and supporting testimony of the
effect of the proposed conservation and energy efficiency program using each of
the following tests set forth in the
California Standard Practice
Manual: Economic Analysis of Demand-Side Programs and Projects, (State
of California, Governor's Office of Planning and Research, July 2002),
(hereafter "Manual"): The Participant Test, The Ratepayer Impact Measure Test,
The Total Resource Cost Test, and the Program Administrator Cost Test.
The Commission will rely on the formulae found in the Manual.
However, the Commission may rely on some inputs contained in the Manual and not
on others. Furthermore, the costs and benefits contained in the Manual are
suggestions and are not endorsed by the Commission for every program. For this
reason, the Commission will not limit the costs and benefits that can be
considered in the benefit/cost tests to those listed therein.
Cost-effectiveness results shall be presented on both a program
and portfolio basis.
Administrators may submit additional economic analyses and
benefit/cost test information in support of a proposed program.
B. A utility shall use an
evaluation period of either ten years (a gas utility may use an evaluation
period of fifteen years), or the actual measure lives for each measure in a
program to evaluate a program or program portfolio.
Results of the tests shall be presented consistent with the
descriptions shown in Table 1, or by other means as approved by the
Commission.
TABLE I - Cost-Effectiveness Tests with Primary and
Secondary Means of Expressing Test Results
|
Participant Test
|
|
Primary
|
Secondary
|
|
Net present value (all participants)
|
Discounted payback (years)
Benefit-cost ratio ("BCR")
Net present value (average participant)
|
|
Ratepayer Impact Measure
|
|
Lifecycle revenue impact per Unit of energy (kWh or
therm) or demand customer (kW)
Net present value
|
Lifecycle revenue impact per unit
Annual revenue impact (by year, per kWh, kW, ccf, or
customer)
First-year revenue impact (per kWh, kW, ccf,
or customer)
BCR
|
|
Total Resource Cost
|
|
Net present value (NPV)
|
BCR
Levelized cost (cents or dollars per unit of energy or
demand)
Societal (NPV, BCR)
|
|
Program Administrator Cost
|
|
Net present value
|
BCR
Levelized cost (cents or dollars per unit of energy or
demand)
|
Section
7
: Cost Recovery
A.
Cost recovery of conservation and energy efficiency programs shall be in
accordance with the provisions of Ark. Code Ann. §
23-3-401
et seq. Cost recovery shall be limited to the incremental
costs of providing the program that are not already included in the then
current rates of the utility, and may include direct program costs, lost
contributions to fixed costs and utility energy efficiency
incentives.
B. A utility may
request cost recovery through a surcharge or rider. If a utility requests cost
recovery through a surcharge or rider, the cost recovery through that mechanism
shall be limited to the incremental costs of providing the program that are not
included in the then current rates of the utility, and may include direct
program costs, lost contributions to fixed costs and utility energy efficiency
incentives.
C. A utility may
request that direct program costs and lost contribution to fixed costs from
approved program budgets be included in the rider. A utility may request
contemporaneous recovery of these costs via such rider.
D. Demand response programs that involve
rates (e.g., interruptible service, curtailment, off-peak service, time-of-use
rates) shall not be included in any surcharge or rider. The rates for those
mechanisms will be established through utility-specific rate or tariff
proceedings.
E. If a utility is
recovering conservation and energy efficiency program costs through a surcharge
or rider, the utility shall file, contemporaneous with the Annual Report under
Section 9, a re-determined Energy Efficiency Cost Rate ("EECR"). In support of
this re-determined rate, the utility shall file a schedule of actual program
costs for the reporting period, actual amounts collected under the rider for
the reporting period, and approved program budgets for the next calendar year.
In addition, if the utility seeks Commission approval to recover lost
contributions to fixed costs and/or utility energy efficiency incentives, and
the utility seeks to recover these costs through a surcharge or rider, the
utility shall incorporate these costs into the supporting schedule. Any
incentive calculations shall be based on the reporting year. The EECR shall be
adjusted to reflect a reconciliation of any over or under recovery for the
prior year and the approved budget for the next calendar year.
Section 8
: Program
Plans
Program plans shall cover at least one year and may cover up to
three years.
All programs filed by gas and electric utilities should be
consistent and should be fuel neutral, i.e., they should be
compliant with the Commission Rules and Regulations Governing Promotional
Practices of Electric and Gas Utilities, including restrictions on fuel
substitution and load building programs.
Program plans shall reflect the effects of all energy
efficiency programs in the electric resource plans or natural gas procurement
plans of the electric and natural gas utilities respectively. Furthermore, all
energy efficiency programs shall be consistent with each utility's current
electric resource plans or natural gas procurement plans.
A.
Initial Plan
Filings
The initial filings of energy efficiency programs will cover
program years 2007-2009. (Program year 2007 will be a partial calendar year,
while 2008 and 2009 will be full calendar years.) They should initially include
energy efficiency measures that can be implemented on a relatively "quick start
and/or pilot" basis. The initial programs should be limited in nature in order
to enable implementation in the 2007 program year. Proposed "quick start" or
pilot programs for program year 2007 shall be filed not later than July 1, 2007
with review to be completed and implementation to occur not later than October
1, 2007. Electric and gas utilities should file energy efficiency programs
choosing individual programs from within the following general list of Initial
Program Categories:
Education: This would include the education of
customers of all classes on energy efficiency and conservation. It should, to
the greatest extent possible, be a consistent statewide group of messages. It
should include education of builders and installers of equipment. All messages
should be fuel neutral. The messages should encourage the efficient use of
electricity and gas. The messages should increase awareness of opportunities to
use electricity and natural gas more efficiently. This category of programs
would apply to all customer classes.
Energy Audits, Evaluations leading to savings:
This would include home and commercial energy audits and audits of commercial
and industrial processes and equipment. The audits and evaluations would
produce recommendations for opportunities to implement site-specific efficiency
and conservation measures. Programs would be designed for audits to lead to
savings results, and could include cost-effective and economically justified
customer incentives to encourage the implementation of site-specific measures.
This category of programs would apply to all customer classes. A training
component to increase the number and quality of auditors will be needed.
Inspection and tune up of heating and air conditioning
systems: This would be applicable to residential, commercial, and
industrial systems. This category of programs would apply to all customer
classes.
Lighting: Improved lighting for residential,
commercial, and industrial customers. This category of programs would apply to
all customer classes.
Increased deployment of demand response
programs: Many programs already exist. This would look for additional
opportunities to offer demand response programs including interruptible
service, curtailment service, off-peak service, etc. In the near term, this
category of programs would apply to commercial and industrial customer classes
and may eventually extend to residential customers.
Weatherization: A Residential weatherization
program that would be based solely on efficiency criteria, targeting least
efficient homes first. The program should establish clear criteria to target
the least efficient homes first. This category of programs would apply to the
residential customer class. (An example of such a program is the Quick Start
and comprehensive Severely Energy Inefficient Homes ("SEIH") program, which the
Commission has directed all investor-owned gas and electric utilities to offer,
using either the existing State Weatherization Assistance Program ("WAP")
Network model6 or a substantially equivalent
alternative implementation method chosen by the utility, provided the
alternative method assures that the SEIH program and all other residential
programs are effectively available to all customers, consistent with the
timeframe for initial program plan filings.)
Commercial and industrial prescriptive incentive
programs: these programs offer a fixed-dollar incentive for multiple
defined prescriptive measures (i.e. lighting, HVAC replacements, occupancy
sensors, motors, etc).
All programs filed from the above category list should have a
high probability of providing ratepayer benefits to the majority of customers.
Program plans for program years 2008 and 2009 may contain additional programs
beyond those included in the above category list.
B.
Comprehensive Plan
Filings
Beginning April 1, 2009, each electric and gas utility shall
file a comprehensive set of program plans (for program years 2010 and later)
unless administration of programs has been previously delegated by the
Commission, in which case each administrator shall file a comprehensive set of
program plans by that date.
The programs proposed may continue to include, but are not
limited to, the "quick start and/or pilot" programs contained in the List of
Initial Program Categories.
Section 9
: Annual Reporting
Requirements
By May 1 annually, each electric and gas utility shall file an
annual report addressing the performance of all approved conservation and
energy efficiency programs.
The report shall present the results of the prescribed EM&V
measures for each program.
The report shall present the EM&V measures for the
utility's portfolio.
The report shall include a measure of each program's
savings.
The report shall present the amounts spent on each conservation
and energy efficiency program and the total amounts spent on all
programs.
Section 10
: Records
All energy efficiency measures are subject to inspection by the
Commission.
All records of energy efficiency programs shall be maintained
in sufficient detail to permit a thorough audit and evaluation of all program
costs and program performance. This section does not limit the existing
authority of the Arkansas Public Service Commission.
Section 11
: Opt Out/Self Direct Option
for Qualifying Nonresidential Business Customers
I.
Opt Out Customers
A.
(1) An
Arkansas non-residential (NR) customer of an electric or natural gas public
utility that is (a) classified within sectors 31 through 33 of the North
American Industry Classification System (NAICS), as it existed on January 1,
2013; or (b) a state-supported institution of higher education, may provide
notice, by mail or electronic mail to the Commission on or before September 15
of any year of its decision to opt out of utility-sponsored energy conservation
programs and measures and direct its own energy conservation programs and
measures if the NR customer satisfies the criteria set forth in Act 253 of
2013, as amended, codified as Ark. Code Ann. §
23-3-405(c)
through (e). The Commission will provide and
update as necessary instructions and forms on its official website to provide
guidance to qualifying NR customers that desire to opt out of utility-sponsored
energy conservation programs and measures under Ark. Code Ann. §
23-3-405(c)
through (e). The remainder of this Section 11
does not apply to customers providing notice to opt out in accordance with Act
253, as amended.
II.
Self-Direct Customers
(2) An Arkansas NR customer of an electric or
natural gas public utility that is not eligible to opt out under Paragraph A(1)
of this Section 11 that meets the eligibility requirements of subsection L of
Section 11 at a single metered location or subsection M of Section 11 at
multiple metered locations within a single utility's service territory may
request approval from the Commission for a Certificate of Exemption
(Certificate) allowing the customer to "opt out" of participating in
utility-provided EE programs and to participate instead in a Self-Directed EE
Option (SD Option). To be approved for a Certificate by the Commission, an
eligible customer must successfully demonstrate that it:
(a) has implemented or invested in a
measure(s) within ten years prior to the date the customer files its request
for a Certificate with the Commission;
(b) will implement or invest in a measure(s)
within the duration of the applicable public utility's energy efficiency (EE)
plan approved by the Commission pursuant to Ark. Code Ann. §
23-3-405;
or
(c) has exhausted its
opportunity to conduct further meaningful cost-effective EE programs and to
participate in, or to realize benefits through participation in, its utility's
EE programs.
B. The
request for a Certificate shall be filed with the Commission no later than
September 15 of any year in a customer-specific SD docket for verification and
approval by the Commission. All customer and party filings related to a request
for a Certificate, including requests to extend the initial filing deadline,
should be made in a customer-specific SD docket. Requests to renew a
Certificate should be made in the same docket as the original request. The
request shall state and shall include adequate information for the Commission
to verify that:
(1) the NR customer has
implemented or invested in a measure(s), excluding any measures in which the NR
customer has previously received an incentive from the utility as part of a
utility-sponsored program, or will implement or invest in a new measure(s)
designed to provide EE savings at the customer's facility in an amount equal to
or greater than the most current EE goals or standards established by the
Commission for the applicable program years and utility; or
(2)
(a) the
NR customer has exhausted its opportunity to conduct further meaningful
cost-effective EE programs and to participate in or to realize meaningful
benefits through participation in its utility-provided EE programs.
(b) If the customer claims that it has
exhausted its opportunity to participate in or to realize meaningful benefits
through participation in its utility-funded EE programs, then the public
utility at issue may be made a party to the proceeding by order of the
Commission.
(3) A NR
customer that participates in a utility's EE program may not request a
Certificate for five years following the NR customer's participation in that
utility's EE program unless the NR customer:
(a)
(i) Has
returned to an applicable public utility through a separate payment to the
public utility or through payment of rates approved under Section 7 of these
Rules any amount received from an applicable public utility calculated from the
date of the installation of the last energy conservation program or measure,
including any interest and directly attributable rate effects for:
(A) The installation of any energy
conservation programs and measures by the applicable public utility;
or
(B) Financing or direct monetary
compensation in the form of a rebate or incentive to enable the installation of
any energy conservation programs and measures by the applicable public
utility.
(ii) For
purposes of this subparagraph B(3), the phrase "participates in a utility's EE
program" shall mean accepting from the utility direct installation of an EE
measure or financing or direct monetary compensation in the form of an
incentive or rebate to enable installation of an energy efficiency measure.
Attendance at educational events and receipt of marketing materials shall not
constitute such participation.
C. The request for a Certificate from a NR
customer shall include the following minimum information:
(1) an estimate of the expected life of the
measure(s) or investment(s);
(2) an
estimate of expected EE savings or evidence of the actual EE savings realized
or to be realized, which can be linked to a specific measure(s) or
investment(s), stated in kilowatts (kW) or kilowatt hours (kWh) for electricity
and in million British Thermal Units (MMBtu) or thousand cubic feet (Mcf) for
natural gas;
(3) an explanation of
how the estimate of expected EE savings or actual EE savings realized was
calculated, including supporting workpapers;
(4) the name, title, company and contact
information for the person responsible for calculating the expected EE
savings;
(5) the historical annual
usage and peak load information necessary to verify eligibility pursuant to
subsection L or M, and a list of account numbers for all qualifying
facilities;
(6) the estimate of
expected EE savings or evidence of the actual EE savings realized, which can be
linked to a specific measure(s) or investment(s), may include allowances for
any reasonably known and measurable changes in operations, changes in output,
or production level changes at the qualifying customer location(s);
(7) in addition, a customer alleging that it
has exhausted its opportunity to conduct further meaningful cost-effective EE
programs and to participate in, or to realize meaningful benefits through
participation in, its utility's EE programs shall provide an explanation of how
the customer has exhausted its opportunity to conduct further meaningful
cost-effective EE programs and how the customer is unable to realize benefits
through participation in its utility's EE programs including a description of
any measures implemented or investments made by the customer that support that
conclusion. The request shall include an analysis of the cost-effectiveness of
the equipment or facilities that have been improved or that might be improved
that is based upon the full life cycle of the equipment or facilities. The
customer also may submit alternative cost-effectiveness analysis;
(8) a description of the steps the customer
has taken or will take to measure and verify the achievement of the estimated
EE savings supporting the request for a Certificate; and
(9) an affidavit certifying the accuracy of
the information provided from a registered professional engineer or a company
official authorized to bind the customer.
D. The Commission, the Commission General
Staff, and the Attorney General may request additional information from the
customer if such additional information is necessary to verify that the
measure(s) implemented or to be implemented, or investment(s) made or to be
made are designed to provide EE savings at the customer's facility in an amount
equal to or greater than the most current EE goals or standards established by
the Commission for the applicable program years and utility. Any such further
information that is the basis of testimony or comments by General Staff or by
the Attorney General before the Commission, and that is reasonably necessary to
substantiate such testimony or comments, shall be filed in the appropriate
docket.
E. Staff shall, and other
parties to the applicable docket may, review the request for a Certificate and
file findings and recommendations regarding the request for a Certificate by
November 15 of the year in which the request for a Certificate was
filed.
F. Either on its own motion
or at the customer's request, the Commission may schedule a hearing to consider
the request for a Certificate, or the Commission may without a hearing issue
its determination regarding the request based upon the filings addressing the
customer's request. A customer requesting a hearing shall file notice of such
request in the customer specific docket within five calendar days after Staff's
filing of recommendations regarding the Application. The Commission shall issue
its order either approving or denying a customer's request for a Certificate by
December 15 of the year in which the request is filed, unless such date is
waived by the customer or extended by the Commission.
G. The request, if approved, shall be
effective for the duration of the applicable utility's EE plan, beginning
January 1 of the year following the year in which the request was filed. Upon
approving the request for a Certificate under Section 11, the Commission shall
notify the appropriate public utility of the exemption. The customer receiving
the Certificate shall be exempt from charges billed through a surcharge or
rider for EE programs and measures approved by the Commission pursuant to Ark.
Code Ann. §
23-3-405(a)(3)
for that utility, including any lost contributions to fixed costs or utility
incentives approved by the Commission. Beginning with the customer's January
billing cycle in the year following the filing of the request and upon
Commission approval of the Certificate, the utility shall cease billing the
customer for any such charges. A customer receiving a Certificate shall not be
eligible to participate in any programs or measures offered by the utility
pursuant to Ark. Code Ann. §
23-3-405.
H. A Certificate approved by the Commission
under Section 11 shall continue for the duration of the public utility's EE
plan approved by the Commission pursuant to Ark. Code Ann. §
23-3-405
unless a different duration is approved by Commission order.
I. The customer who requested a Certificate
pursuant to subsection B(1) above shall file a report presenting the
measurement and verification of the achievement of the estimated EE savings
supporting the request for a Certificate.
(1)
In the case of a current Certificate holder seeking a new Certificate, the
report shall be filed as part of the new Application. The Certificate holder
shall use best efforts to report results for the greatest number of months
available at the time the report is filed beginning with the first month
covered by the Certificate.
(2) If
a Certificate holder is not seeking a new Certificate, the report shall be
filed no later than February 15 of the year following the expiration of the
Certificate.
J. The
customer must request and receive approval for a new Certificate applicable to
each new program plan filed by the utility and the associated goals
subsequently approved by the Commission pursuant to Ark. Code Ann. §
23-3-405.
The Commission may consider the customer's previous EE savings results as
compared to goal in approving a subsequent request for a new
Certificate.
K. A customer seeking
to withdraw its Certificate shall notify the Commission of such withdrawal by
November 15 of any year. Upon notification of withdrawal under this subsection,
the Commission shall promptly notify the appropriate public utility of the
withdrawal. Beginning with the customer's January billing cycle in the year
following the notice of withdrawal, the utility shall begin billing the
customer for any costs recovered through a surcharge or rider approved by the
Commission pursuant to Ark. Code Ann. §
23-3-405(a)(3),
including any lost contributions to fixed costs and utility incentives approved
by the Commission, and the customer shall become eligible to participate in any
programs or measures offered by the utility pursuant to Ark. Code Ann. §
23-3-405.
L. To be eligible for a Certificate under
Section 11, the customer's facility at a single metered location shall:
(1) Have a minimum peak electrical demand of
greater than one megawatt (1 MW) at that location based upon the prior 12
months billing history at the time of the application; or
(2) Have an annual natural gas consumption of
greater than seventy thousand MMBtu or Mcf (70,000 MMBtu or Mcf) at that
location.
M. To be
eligible for a Certificate of Exemption under Section 11 for multiple
facilities with identical ownership within a single utility's service
territory, the customer's facilities at two or more metered locations within
that service territory shall:
(1) Have a
minimum peak electrical demand of greater than two hundred kilowatts (200 kW)
at each location and a minimum combined peak electrical demand of one megawatt
(1 MW) , based upon the prior 12 months billing history at the time of the
application, when aggregating the customer's facilities listed in the
application and within that service territory; or
(2) Have an annual natural gas consumption of
greater than fourteen thousand MMBtu or Mcf (14,000 MMBtu or Mcf) at each
location and a minimum combined annual natural gas consumption of seventy
thousand MMBtu or Mcf (70,000 MMBtu or Mcf) when aggregating the customer's
facilities listed in the application and within that service
territory.
N. The
customer-specific verification information submitted to the Commission pursuant
to subsections C and I of Section 11 by the applicant for a Certificate shall
be protected from public disclosure by the Commission as proprietary facts or
trade secrets pursuant to the provisions of Ark. Code Ann. §
23-2-316.
O. Each utility affected by a customer
receiving a Certificate:
(1) shall reduce the
level of energy sales in kWh for electricity or MMBtu or Mcf for natural gas by
the amount of the exempted customer's usage during the base year established by
the Commission for the purpose of establishing the EE savings goals for that
utility;
(2) shall exclude the
consumption of that customer from the calculation of any EE savings for the
duration of the public utility's EE plan approved by the Commission pursuant to
Ark. Code Ann. §
23-3-405;
and
(3) at the utility's option,
may choose to seek approval from the Commission to revise its last approved EE
plan to reflect the impact, if any, of adjustments resulting from customers
being approved for "opt-out".
Section 12
: Evaluation, Measurement,
and Verification
All aspects of utility-sponsored energy efficiency efforts,
including, but not limited to, measures, programs, and reports are potentially
subject to Evaluation, Measurement, and Verification (EM&V).
All EM&V activities undertaken as part of a
utility-sponsored program, including, but not limited to, estimation of energy
efficiency savings and process evaluations, shall be conducted consistent with
the Arkansas Technical Reference Manual (TRM) and with national best program
evaluation practices as established by the National Action Plan for Energy
Efficiency ("NAPEE"), the State & Local Energy Efficiency Action ("SEE
Action") Network, the International Performance Measurement and Verification
Protocol ("IPMVP"), or other similar nationally or internationally accepted
EM&V standards.
The TRM shall set forth Protocols for EM&V activities. An
organization selected by a program administrator to conduct EM&V activities
shall be independent of the organization or organizations involved in the
particular EE program design, management, and implementation, such that the
verification professionals conducting or reviewing evaluations have no
financial stake, beyond the evaluation contract itself, in the program or
program components being evaluated.
A.
Duty to Follow Procedures in Technical Reference Manual
EM&V activities shall be performed in a manner consistent
with the applicable TRM provisions. If the TRM does not specify provisions for
an EM&V activity, the utility shall conduct its EM&V activity with a
level of effort consistent with the provisions of the TRM.
B. Amendment of Technical Reference Manual
1. The Commission shall maintain a docket or
dockets for consideration of TRM amendments.
2. Except for good cause shown, any petition
to intervene in a docket for consideration of a TRM amendment shall be filed
within fifteen (15) days of the filing of a TRM amendment.
3. Unless otherwise provided in a Commission
order, within twenty (20) days of the date upon which a proposed TRM amendment
has been filed, Staff shall, and the other parties may, file appropriate
responsive testimony or request suspension of the proposed amendment. If a
timely objection to an amendment is filed, or if the Commission acts on its own
to suspend the proposed amendment, the amendment will be suspended and an
appropriate procedural schedule will be established.
4. At the request of a party or on its own
motion, the Commission may schedule a hearing to consider a suspended
amendment. If no party requests a hearing within fifteen (15) days following
suspension, hearing shall be deemed waived. No suspended amendment may become
effective prior to a hearing or waiver of hearing.
5. The date of any Commission order approving
a TRM amendment becomes the effective date for that amendment, unless otherwise
provided in a Commission order.
C. Technical Reference Manual Availability
The TRM shall be available for inspection in the Secretary's
Office and shall also be available on the Commission's website.
1 Ark. Code Ann. §
23-3-402.
2 Ark. Code Ann. §
23-3-403.
3 Ark. Code Ann. §
23-3-404.
4 Ark. Code Ann. §
23-3-405(a)(1)
-(2).
5 Ark. Code Ann. §
23-3-405(a)(3).
6 Appendix D, pp. D-9 and 10, and Appendix E,
pp. E-3 through 6 of the Report of Richard Sedano to the Commission on the
Collaborative Stakeholder Process in Docket No. 06-004-R, with errata, dated
November 2, 2006
