Wis. Admin. Code Public Service Commission PSC 137.07 - Utility-administered programs for large commercial, industrial, institutional, or agricultural customers

(1) DEFINITION. In this section, "large commercial, industrial, institutional, or agricultural customer" has the same meaning as "large energy customer" under s. 196.374(1) (em), Stats., unless the commission specifies a different definition by order.

(2) FUNDING ENERGY EFFICIENCY PROGRAMS FOR LARGE COMMERCIAL, INDUSTRIAL, INSTITUTIONAL, OR AGRICULTURAL CUSTOMERS. The funding available in any year for all the energy efficiency programs the commission has authorized an energy utility to offer to its large commercial, industrial, institutional, or agricultural customers under s. 196.374(2) (b) 1, Stats., shall equal the revenues collected from the energy utility's customers who are eligible for the utility-administered programs, less the funds set aside under s. PSC 137.05(2) for statewide renewable resource programs. The commission shall determine the annual funding level available for these programs and inform energy utilities in writing at least 9 months prior to the beginning of the statewide program year.

(3) ENERGY EFFICIENCY PROGRAMS FOR LARGE COMMERCIAL, INDUSTRIAL, INSTITUTIONAL, OR AGRICULTURAL CUSTOMERS.

(a) An energy utility requesting to administer or fund one or more energy efficiency programs for large commercial, industrial, institutional, or agricultural customers in its service territory under this section may file a request with the commission at any time. The commission shall consider requests it receives at least 6 months before the start of the statewide energy efficiency and renewable resource program year for implementation in that program year.

(b) Each request to administer or fund an energy efficiency program under this section shall include:

1. A description of the program that includes the target market, eligible measures, delivery strategy, marketing and communications strategy, incentive strategy and potential market effects.

2. A plan prepared jointly with the program administrator that describes how statewide and utility-administered programs will be coordinated with large energy customer self-directed programs, ordered programs, and voluntary utility programs offered during the same period.

3. A description of the program's consistency with the commission's most recent study of available energy efficiency savings.

4. Annual and multi-year performance targets that are consistent with commission goals, policies, and priorities.

5. A program time frame that is consistent with the statewide program year.

6. A portfolio and program level cost-effectiveness analysis that is consistent with par. (c) 5.

7. An administrative and program delivery budget for the first year of operation.

8. Any other information the commission requests.

(c) Each utility-administered program under this section shall:

1. Be limited to offering energy efficiency programs to large commercial, industrial, institutional, or agricultural customers in the energy utility's service territory. If a customer is participating in a self-directed program under s. PSC 137.09, that customer's participation in any utility-administered program under this section shall be limited to the amount of revenues that the customer contributes to the utility-administered program through s. 196.374(3) (b) 2, Stats.

2. Provide an equivalent opportunity for all eligible customers to participate. Utility-administered programs shall coordinate with statewide programs and with large energy customer self-directed programs to avoid duplication of effort and of program offerings in overlapping territories.

3. Be evaluated by an independent third party. The commission shall contract with the independent third-party evaluator, unless it determines that it is reasonable to allow the energy utility to contract with the evaluator. In that case the commission shall oversee the contracting process and approve the energy utility's selection of the independent third-party evaluator. The energy utility shall pay for the evaluation of the program, as determined by the commission, from retained utility revenues that the energy utility would otherwise have expended on statewide energy efficiency programs.

4. Be designed in a manner that prevents the energy utility or any of its affiliates from selling or installing energy efficiency processes, equipment, or appliances.

5. Pass a portfolio level test of net cost-effectiveness, as determined by the commission. The energy utility shall screen for net cost-effectiveness at least once a year.

6. Result in environmental benefits, as identified by the commission, either on site or at the generation level.

(d) The energy utility shall:

1. Assign priority status to implementing programs that reduce growth in electric and natural gas demand and usage, facilitate energy efficiency market development, assist market providers in achieving higher levels of energy efficiency, promote energy reliability and adequacy, avoid adverse environmental impacts from the use of energy, and promote rural economic development.

2. Establish annual and multi-year performance goals that are consistent with the program goals, priorities, and measurable targets established under s. 196.374(3) (b) 1, Stats. At a minimum, the energy utility shall provide quarterly activity reports and semiannual performance reports to the commission.

3. Using the commission's database tracking and reporting system, collect and record for each program, by customer class:

a. KW, kWH, and therm savings.

b. Performance metrics.

c. Non-energy benefits.

d. All administrative and program delivery costs.

e. Any other information the commission requests.

4. Provide all information and data the energy utility collects for its utility-administered programs to the commission and the independent third-party evaluator upon request.

(e) The commission shall consider all of the following when deciding whether to approve a program proposed under par. (a):

1. Whether the program is in the public interest.

2. Whether the program meets the minimum requirements of par. (c).

3. Whether the program includes appropriate energy efficiency measures.

4. Whether the proposed budget is within the level of funds available.

5. The likelihood the program will achieve its goals.

6. The level of coordination with statewide programs under s. PSC 137.05, voluntary utility programs under s. PSC 137.08, large energy customer self-directed programs under s. PSC 137.09, and ordered programs and the potential for disrupting the overall ability of energy efficiency efforts in the state to meet the goals, priorities, and measurable targets established under s. 196.374(3) (b) 1, Stats.

(4) APPROVAL, DENIAL OR MODIFICATION OF REQUESTS FOR UTILITY-ADMINISTERED PROGRAMS. An energy utility may only administer or fund a program under this section with the commission's prior approval. The commission shall issue its decision to approve, deny, or modify an energy utility's proposal to administer or fund a program under this section in writing, within 40 working days after receiving the proposal. If the commission denies or modifies a proposed utility-administered program it shall explain its reasons. The energy utility may revise and resubmit a proposed program that the commission has denied.

(5) MODIFYING OR DISCONTINUING A UTILITY-ADMINISTERED PROGRAM OR AN ORDERED PROGRAM.

(a) An energy utility may request the commission to authorize the modification or discontinuation of a program it administers or funds under this section at any time. No energy utility may modify or discontinue such a program without the commission's prior approval.

(b) Requests for discontinuation of an ordered program shall be made as part of a proceeding the commission conducts under 196.374(3) (b) 1., Stats.

(6) RETURN OF FUNDS. The commission may require that the energy utility deliver any unspent funds of an energy efficiency program approved under this section to the energy utilities, to fund the statewide programs.

Notes

Wis. Admin. Code Public Service Commission PSC 137.07

CR 06-139: CR Register July 2007 No. 619, eff. 8-1-07.