midwest policy grid through 2009 - regulatory …€¦ · xls file · web viewutilities are...

IOWA through 12/31/09; see citations at end of documentElectric Natural Gas

Recommendation 1: Recognize energy efficiency as a high priority energy resource.

1.1

S S

1.2

S, A S, A

NA

1.3 N N

1.4

NA

1.5 N

Recommendation 2: Make a strong, long-term commitment to implement cost-effective energy efficiency as a resource

EE is established as a high priority resource, equivalent or superior to supply resources

Y

Iowa Code 473.2 states that "All supply and demand options are considered and evaluated using comparable terms and methods in order to determine how best to meet consumers' demands for energy at the least cost." HF 918, passed in 2007, established an Office of Energy Independence and a requirement for an annual Energy Independence Plan that will develop recommendations regarding state energy regulatory policy. The 2008 Energy Independence Plan recommended that utilities should pursue all cost-effective EE and DR before building generation capacity. The Energy Efficiency Plans and Programs Committee, established pursuant to SF 2386, prepared a report on statewide energy efficiency efforts which was published in February 2009.

Y

1.2.1 EE is integrated into an active IRP, portfolio management, or other resource planning process

Y

Traditional least-cost planning was ended in 2001. Iowa utilities are required to develop an energy efficiency plan for approval by the Iowa Utilities Board. The energy efficiency plans are developed in five-year cycles, and contain a forecast of future use of electricity for 20 years, and identifies future supply options and costs. While this is not a traditional IRP, RAP considers it to be an IRP-like process. Efficiency planning requirements are in Iowa Code 476.6(16) and IAC 199—35.3.

Y

1.2.2 Efficiency is procured as a resource for default service/standard offer customers

EE is an alternative to transmission based on a long-term transparent IRP or transmission system plan

1.4.1 EE is a biddable commodity

1.4.2 Bids occur in the following markets: (a) energy, (b) capacity, or (c) other

State Implementation Plans (SIPs) include EE set-asides

2.1

S S

2.2

A A

2.3

A A

A A

2.4 N N

2.5

A,R A,R

Efficiency commitment is in statute

Y

IA Code 473.3 states a goal to "more efficiently utilize energy resources" and calls for the development of energy efficiency programs to meet this goal. Also see 1.1. Senate bill 2386, passed in 2008, requires utilities to file energy efficiency goals. In accordance with this mandate, the Iowa Utility Board issued an order in Docket No. 199 IAC 35.4(1) on January 14, 2008 asking investor-owned utilities to submit plans, including a scenario to achieve a 1.5% annual electricity and natural gas savings goal. In 2009 the Iowa Utilities Board issued orders approving new energy efficiency plans for Iowa's investor-owned utilities. According to a local contact, the plans are projected to reach savings levels by 2012 of 1.4% of retail electricity use.

Y

The TRC or Societal Cost Test is used to evaluate EE programs

Y

199 IAC 35.8(1)(e) requires EE plans as a whole to be cost-effective, and require the use of the societal, ratepayer impact, utility, and participant tests. EE programs for low-income customers and other specific programs do not need to be cost-effective. See IAC 199--35.8(1)(e).

Y

2.3.1 Potential for cost-effective EE has been established through a potential study

Y

Statute and rules require utilities to assess efficiency potential. Requirements are listed in IAC 35.8(1). In 2005 ACEEE estimated potential of aggressive EE programs to reduce consumer use of natural gas and peak electricity generated by natural gas. Additionally, the Midwest Energy Efficiency Alliance commissioned a potential study from Summit Blue Consulting in 2006 addressing DSM potential in the 13 MEEA states.

Y

2.3.2 Established EE programs reach all customer classes Y

Iowa Code 476.6(16) and IAC 199—35.8 both require efficiency plans to include a range of programs designed to meet all ratepayer classes, including low-income customers. Y

Funding requirements for all long-term, cost-effective EE have been established

2.5.1 Quantitative MW and MWh savings goals have been established and are producing incremental investment.

Y-

IA Code 476.6(16) requires regulated utilities to assess cost-effective potential efficiency opportunities in their jurisdiction and use these assessments to develop capacity and energy savings performance standards with the Department of Natural Resources. SF 2386, passed in 2008, amended the code to include gas and electric utilities not required to be rate-regulated by the Board; such utilities must assess EE potential, establish an EE goal, and establish cost-effective EE programs designed to meet the EE goal. In January 2008 the Iowa Utility Board issued an Order in Docket 199 IAC 35.4(1) which required invester owned utilities to submit plans to achieve a 1.5% annual electricity and NG savings goal. In 2009 the Iowa Utilities Board issued orders approving new energy efficiency plans for Iowa's investor-owned utilities. According to a local contact the plans are projected to reach savings levels by 2012 of 1.4% of retail

Y-

2.5

R R

N N

S,R S,R

2.6

A A

Y Y

Y Y

N N

2.5.2 Goals are established: (a) connection with IRP or other planning process; (b) as part of an EEPS or similar system; (c) as part of program approval and budget-setting process; (d) other

a,c, d

Goals are established in the Efficiency Planning process, which includes assessment of potential, data from prior program years, and program and budget approval. Non-rate-regulated utilities must establish their own goals after assessing potential.

a,c, d

2.5.3 Energy Efficiency can be used to fulfill requirements of an RPS or similar renewable standard

In 1983, Iowa enacted the Iowa Alternative Energy Production law. The law requires the state’s two investor-owned utilities -- MidAmerican Energy and Alliant Energy Interstate Power and Light -- to contract for a combined total of 105 megawatts of their generation from renewable-energy resources, including small hydropower facilities. Energy efficiency is not counted as a resource under the RPS. HF 918, passed in 2007, established an Office of Energy Independence and a requirement for an annual Energy Independence Plan that will develop recommendations regarding state energy regulatory policy.

2.5.4 Capacity Savings (Annual MW)

According to Gordon Dunn of the IUB, actual IOU savings Energy effic. first-year savings of 65 MW, load management available of 500 MW (year?). See also the Status of Energy Efficiency Programs in Iowa and the 2007 Iowa Residential Energy Survey, Table III-14.

2.5.5 Energy Savings (Annual MWh)

ACEEE issued its 2009 State Energy Efficiency Scorecard (Scorecard) in October 2009. Among other things, the Scorecard tracks annual EE program savings by each state in 2007 (the most recent year for which relevant data are available for all jurisdictions). According to the Scorecard, IA's total incremental electric savings (MWh) was 322,177 in 2007 which was 0.71% of savings as a percent of electricity sales and ranked IA 10th when compared with other states.

2.6.1 A robust M&V process has been established

Y-

Utilities must include an M&V plan in Energy Efficiency plan filings. See IAC 199—35.8. Iowa has not developed a technical reference manual. According to a local contact, investor-owned utilities included M&V plans in new energy efficiency plans approved by the Iowa Utilities Board in 2009. The Iowa Utilities Board is not required by law to develop a "technical reference manual." However, the Iowa investor-owned utilities in 2009 filed documents containing the savings algorithms with their Operating Plans.

Y-

2.6.1.1 M&V is adequately funded

IOUs are approved to spend more than 5% of EE expenses on evaluation.

2.6.1.2 Energy savings are used to measure performance

"Deemed savings" in the form of a state-developed and approved list of energy savings algorithms are not provided for in Iowa statutes relating to utility programs. However, according to a state reviewer, the investor-owned utilities and non-rate regulated utilities have included the savings algorithms in energy efficiency plans.

2.6.1.3 M&V is done according to a defined schedule

M&V is not on a rigid schedule, but IOUs report savings annually.

C42

Brenda: EPA called this a Yes in grid updated through 2008

E42


2.6

YIOUs generally contract with third parties for M&V activities.

Y

Y Y

a

2.7

a a

2.8

R R

2.9

2.6.1.4 M&V is conducted by an independent party

2.6.1.5 Review of M&V is done in a transparent process

IOUs must submit full-scale evaluations to IUB, which can be contested by other parties, especially the Office of Consumer Advocate.

2.6.2 M&V is done using: (a) deemed savings; (b) actual savings; (c) other

Deemed savings are generally used, except for nonresidential customers participating in Shared Savings programs.

2.7.1 EE delivery structure has been established Y

Programs are required to be delivered by the utilities or a contractor of the utilities.

Y

2.7.2 Delivery is via: (a) utility administration; (b) third-party administration; or (c) government agency

Resource plans are regularly updated

Y

See 1.2.1 above. Energy Efficiency plans are filed every five years. Starting in 2012, electric and gas utilities that are not required to be rate-regulated must file a biennial report identifying their progress in meeting the EE goal, and amendments to their EE plans. N

2.9.1 Building Energy Codes for residential buildings are in place and regularly updated

Y/Y

2009 IECC standards are mandatory statewide. Can use REScheck to show compliance. Standards are reviewed every 3 years, with the latest update in January 1, 2010. SF 517, passed in 2008, directed the state building code commissioner to require compliance of construction with energy conservation requirements. A Commission on EE Standards and Practices was established as a result of SF 2386, passed in 2008, and is required to meet for two years, starting 7/1/08. The Commission is tasked wtih developing recommendations for new EE standards, specifications, or guidelines applicable to new buildings and vertical infrastructure, and issuing a report by 1/1/11. The IA Climate Change Advisory Council Final Report, issued 12/23/08, recommended that building code standards be increased. On October 21, 2009 the Iowa Building Code Advisory Council approved the adoption of several amendments to the State Building Code, including the adoption of the 2009 IECC effective January 1, 2010.

2.9

2.10N

2.11

Recommendation 3: Miscellaneous Policies

3.1

Y Y

Y Y

Do not delete this row.

Do not delete this row.Do not delete this row.


2.9.2 Building Energy Codes for commercial buildings are in place and regularly updated

Y/Y

2009 IECC, referencing ASHRAE 90.1-2004 is mandatory statewide. Can use COMcheck to show compliance. Standards are reviewed every 3 years, with the latest update in January 1, 2010. SF 517, passed in 2008, directed the state building code commissioner to require compliance of construction with energy conservation requirements. A Commission on EE Standards and Practices was established as a result of SF 2386, passed in 2008, and is required to meet for two years, starting 7/1/08. The Commission is tasked wtih developing recommendations for new EE standards, specifications, or guidelines applicable to new buildings and vertical infrastructure, and issuing a report by 1/1/11. The IA Climate Change Advisory Council Final Report, issued 12/23/08, recommended that building code standards be increased. On October 21, 2009 the Iowa Building Code Advisory Council approved the adoption of several amendments to the State Building Code, including the adoption of the 2009 IECC effective January 1, 2010.

Appliance and Equipment Efficiency Standards are in place and regularly updated

The IA Climate Change Advisory Council Final Report, issued 12/23/08, recommended that appliance efficiency standards be implemeted at the state level.

Energy efficiency is a high priority in state buildings and state funded buildings

Y

A 2005 Executive Order directed state agencies to reduce energy use 15% (from 2000 levels) by 2010. Provisions regarding funding sources for state-owned building efficiency were established in statute. A 2008 Executive Order rescinded the earlier order and required a further 15% reduction (from 2008 levels) in average energy use by 2015. An Energy Excellent Buildings Task Force will provide guidance toward achieving the goal. A Green Government Master Plan also has been developed, with recommendations to state agencies for reducing energy use. The Dept. of Administrative Services also has adopted an energy management strategy for the Capitol Complex. The IA Climate Change Advisory Council Final Report, issued 12/23/08, recommended that targets be developed to improve the efficiency of energy use in state and local government buildings that are much higher than code standards. In 2009, the Iowa Utilities Board and the Iowa Office of Consumer Advocate joint announced the groundbreaking for construction of a highly energy efficient demonstration office building to be located on the Capitol Complex. This 44,000 square foot building will house more than 90 employees of the two agencies. It is modeled to consume 62 percent less energy than a typical office building compliant with

EO, S

3.1.1 Public education programs on EE are in place. (See Guide Tab for Y/N criteria.)

3.1.2 Process is in place, such as a state or regional collaborative, to pursue EE as a high-priority resource. (See Guide Tab for Y/N

The Iowa Energy Independence Plan developed annually by the Office of Energy Independence is developed in partnership with many stakeholders.

3.1


3.2Y

All MidAmerican Energy

N

All

Recommendation 4: Promote sufficient, timely, and stable program funding to deliver energy efficiency where cost-effective.

4.1

A A

a

Y Y

4.2 N N

4.3

4.4 N/A

5.1

R

75% of state access to ENERGY STAR New HomesWhat proportion is due to regulated utility program? (who is sponsor)75% of state access to Home Performance with ENERGY STAR?What proportion is due to regulated utility program? (who is sponsor)

Alliant Energy and Black Hills Energy moving forward as sponsors

4.1.1 Cost recovery process exists

Y IA Code 476.6(16) establishes that utilities may recover costs through rates. Budgets and rates are established in the efficiency planning process. Related rules can be found in IAC 199—35.12. The rates are reconciled annually.

Y

4.1.2 Recovery occurs via: (a) rider; (b) regular rate case; or (c) system benefits charge

a

4.1.3 Funding is for multi-year periods

Budgets and rates are established through the efficiency planning process, which goes into effect for five-year periods.

A base energy efficiency spending level exists, with opportunity to justify higher level

% of net (retail) utility revenue presently used for energy efficiency [no unit = %; m/k = mils/kWh]

ACEEE issued its 2009 State Energy Efficiency Scorecard (Scorecard) in October 2009. Among other things, the Scorecard tracks spending on EE by each state in 2007 (the most recent year for which relevant data are available for all juriusdictions). According to the Scorecard, IA total spending on EE in 2007 was over $56.4 million, which was 1.4% of total utility revenues and ranked IA 9th in state spending.

Funds from carbon trading program support EE

Recommendation 5: Modify policies to align utility incentives with the delivery of cost-effective energy efficiency and modify ratemaking practices to promote energy efficiency investments.

5.1.1 Utility throughput incentive is addressed and disincentives are removed

N

Docket NOI-06-1 considered decoupling only for natural gas because no electric utility expressed any interest in decoupling. The Board's conclusion in NOI-06-1, that Iowa utilities have historically pursued efficiency aggressively without decoupling mechanisms, applies to both electric and gas utilities.The IA Climate Change Advisory Council Final Report, issued 12/23/08, recommended that the state change incentive structures to deploy EE, including decoupling, lost revenue recovery, and other policies.

N

5.1.2 Method used is: (a) decoupling; (b) lost revenue recovery; or (c) non-utility implementaion of EE

B80

Y (Yes) = EE program administrators representing 75% or more of state’s customers of regulated utilities have at least one state-approved EE program for new and one for existing homes that utilize professionals trained and certified by: RESNET, BPI, or organizations identified under LEED for Homes, NAHB Green Bldg. Prog, NATE or comparable HVAC organizations, or utilize professionals trained by utilities. Y/P (Yes / Partial) = EE program administrators representing between 50%-74% of state’s customers of regulated utilities have at least one state-approved EE program for new and one for existing homes that utilize professionals trained and certified by: RESNET, BPI, or organizations identified under LEED for Homes, NAHB Green Bldg. Prog, NATE or comparable HVAC organizations, or utilize professionals trained by utilities.

B82

EE program administrators representing 75% or more of state’s customers of regulated utilities have at least one state-approved EE program for new and one for existing homes that utilize professionals trained and certified by: RESNET, BPI, or organizations identified under LEED for Homes, NAHB Green Bldg. Prog, NATE or comparable HVAC organizations, or utilize professionals trained by utilities. EE program administrators representing between 50%-74% of state’s customers of regulated utilities have at least one state-approved EE program for new and one for existing homes that utilize professionals trained and certified by: RESNET, BPI, or organizations identified under LEED for Homes, NAHB Green Bldg. Prog, NATE or comparable HVAC organizations, or utilize professionals trained by utilities.

C89


E89


C91

Brenda: EPA called this a No in grid updated through 2008

E91


5.1

5.2

5.3R

R

5.4

R

R

State Fiscal PolicyDistributed Generation Policies

5.2.1 Utility/shareholder EE incentives are provided N

Incentives were provided in the mid-1990s, when DSM cost recovery was done once every several years. In 1996, this system was changed to an annual true-up with no incentives.

N

5.3.1 Impact on EE is a consideration when designing retail rates Y

A 3/6/07 Order in Docket NOI 06-03 indicates that rate structures should be examined to see if they are promoting energy efficiency. The Order indicates that this issue will be taken up in individual utility rate cases.

5.3.2 Declining block rates and fixed variable rate designs have been eliminated

N

A 3/6/07 Order in Docket NOI 06-03 expresses concern about declining block rates and indicates that these may reconsidered in the near future. According to the Orans publication, in 2009 two of the largest utilities in Iowa still had declining block rates.

5.4.1 Time sensitive rates in place

Y-

TOU rates are offered for residential and non-residential customers. A 3/6/07 Order in Docket NOI 06-03 indicates that CPP and RTP rates may considered in the near future. The IA Climate Change Advisory Council Final Report, issued 12/23/08, recommended that electricity consumption be reduced through use of time-of-day rates, real-time pricing, seasonal rates, and critical peak pricing.

5.4.2 Usage sensitive rates in place

5.4.3 AMI deployment planned

Y-/P

The Board has indicated in and Order on March 6, 2007 in Docket No. NOI-06-03 that staff will work with utilities to research AMI and develop an AMI pilot project. Alliant Energy is deploying 1,000,000 smart meters in IA, MN, and WI between 2008 and 2011.

5.4.4 Other mechanisms exist (e.g., on-bill financing, benefit sharing)

E106


7.1

R

U -

U Interstate Power and Light Co has no interconnection guidelines

7.2

U

U

7.3

A statewide interconnection policy is in place

Y

The Iowa Utilities Board (IUB) rule 15.10 established minimum power quality and safety standards for qualifying facilities (QF) under PURPA. The rule establishes utility review procedures, grants QFs the right of appeal, gives utilities access rights for inspection and testing, and allows utilities to disconnect facilities in the case of an emergency. Utilities are required to file standard contract provisions for renewable energy QFs, subject to IUB approval, under sub-rule 15.11(4). An external disconnect is required. Liability insurance is not addressed. None of the contract provisions filed by rate-regulated utilities include liability insurance requirements, however utilities are free to negotiate non-standard terms with the customer which require IUB approval unless the customer otherwise agrees. In July 2006, the IUB began an inquiry into the development of uniform interconnection standards. A draft version of model interconnection procedures was issued for comment in April 2007, and in December 2008 additional comments were requested on the possibility of adopting interconnection rules similar to those adopted by Illinois.The PUC subsequently opened a formal rule making docket (RMU-2009-0008) in September 2009 using the Illinois rules as a starting point.

Rule 15.10 can be accessed here: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=IA05R&re=1&ee=1 RMU-2009-0008 can be found here: https://efs.iowa.gov/efs/ShowDocketSummary.do?docketNumber=RMU-2009-0008

MidAmerican Co has guidelines for the interconnection of cogeneration and small power production facilities, guidelines can be accessed from here, http://www.midamericanenergy.com/pdf/rates/elecrates/iaelectric/n-46-46.30.pdf. There are no standard interconnection forms, no limits on fees, no specified approval timeframe, an external disconnect is required, also facilities must follow certain NEC, IEEE, and other standards.

A statewide net metering policy is in place

N

Iowa's does not have a statute that requires net metering, however net metering is implicitly allowed through PURPA enforcement and Iowa Code 476.41. Net metering is available to all customer classes of IA's IOUs - MidAmerican Energy and Interstate Power and Light. Statute 476.41 can be accessed from here, http://www.dsireusa.org/documents/Incentives/IA02Rb.htm.

MidAmerican Energy Co, IOU, docket no. TF-01-293 - limits net-metering to 500 kW and carries forward net excess generation (NEG) forward for use in future months. Docket no. TF-01-293 authorizing this tariff can be accessed from here, http://www.state.ia.us/government/com/util/docs/orders/2002/0308_tf01293.pdf

Interstate Power and Light, IOU - also allows net-metering for systems up to 500 kW and allows NEG to be carried forward. Docket No. TF-03-180 approves IP&L's tariff outlining these net-metering standards.

A statewide exit fee policy is in place N There is no statewide policy on exit fees in Iowa, however no

utilities in the state charge exit fees.

7.4

U -

U-

7.5

S

A

A statewide standby rate policy is in place

N

Iowa Utilities Board rule 15.6 establishes standards for standby rates for qualifying facilities (QFs) under PURPA. Unless supported by data, rates for backup or maintenance power cannot be based on the assumption that forced outages or output reductions by the QFs will occur simultaneously or during system peak; and the rates must take into account the extent to which the scheduled outages of QFs can be coordinated with scheduled outages of the utility’s facilities. Rule 15.6 can be accessed here: http://www.legis.state.ia.us/aspx/ACODocs/DOCS/7-28-2010.199.15.pdf.

Interstate Power and Light Co (Alliant Energy) - Pre-scheduled Energy Only Standby Service (Tariff Sheet 43) or Standby and Supplementary Power Service (Tariff Sheet 76). Under Tariff 43, standby service is provided on a contract basis at a primarily demand based rate with variable energy charges. There is a high penalty for exceeding the contract demand. Billing demand is based on the maximum demand of the month with a 12 month ratchet. Under Tariff 76, standby service is provided on a contract basis with very high demand charges based on a declining block schedule, and very low energy charges. Billing demand is based on the highest 15 minute demand of the month or 75% of the highest demand from the previous June-August. Rates available at: http://www.alliantenergy.com/UtilityServices/UtilityRatesFacts/019474

MidAmerican Energy Co - Tarrif Sheet E-27, N-34, or S-45 - The availability of standby service and its characteristics are different based on which part of the Iowa MidAmerican system a customer is located in, East, North, or South. Generally, standby service is offered to customers who contract for a specified amount of standby capacity with the utility. The customer will be charged under the regular rate they would receive service at if they were not generating power subject to minimum demand charges based on the contract standby demand. Billing demand is typically based on the higher of the maximum demand of the month or 90% of the maximum established in the previous period of June-Sept. Rates available at: http://www.midamericanenergy.com/rates1.aspx

As part of resource planning process, CHP is reviewed and incorporated where effective

Y

Least cost planning ended in 2001. The IA Utilities Board has the authority to require utilities to file a supply-side resource plan. For the demand side, EE planning is a separate process and is done on a regular basis. Efficiency planning requirements are in Iowa Code 476.6(16) and IAC 199—35.3. CHP projects are mentioned in IAC 199-35.3, "information about capacity outside of the utility's system that could meet its future needs including, but not limited to, cogeneration," expected to be available for the next 20 years should be included. There was one piece of related legislation that passed in 2009, HF2399/SF2399 and is now law in Iowa. This legislation contains a number of intiatives, including the deletaion of outdated provisions related to cogeneration plants, encourages the use of natural gas and biomass instead of coal, etc.

Iowa Code 476.6(16) can be accessed from http://coolice.legis.state.ia.us/Cool-ICE/default.asp?category=billinfo&service=IowaCode HF2339 can be accessed from here, http://coolice.legis.state.ia.us/linc/HF2399_Enrolled.pdf

IAC 199—35.3 is available online at http://www.legis.state.ia.us/Rules/Current/iac/199iac/19935/19935.pdf

7.5

U

Citations

Building Codes Assistance Project / Online Code Environment & Advocacy Network, IA page: http://bcap-ocean.org/state-country/iowaExecutive Office, Executive Order No. 41, 2005: http://publications.iowa.gov/2619/1/EO_41.pdfExecutive Office, Executive Order No. 6, February 21, 2008: http://publications.iowa.gov/6275/1/06-080221[1].pdfIA Code, Section 199—35 et seq, 1997: http://www.legis.state.ia.us/Rules/Current/iac/199iac/19935/19935.pdfIA Code, Section 473 et seq, 2009: http://coolice.legis.state.ia.us/cool-ice/default.asp?category=billinfo&service=iowacode&ga=83&input=473IA Code, Section 476.41 et seq., Renewable Portfolio Standard: http://coolice.legis.state.ia.us/Cool-ICE/default.asp?category=billinfo&service=IowaCode&ga=83&input=476.41 IA Code, Section 476.6 et seq., 2009: http://coolice.legis.state.ia.us/Cool-ICE/default.asp?category=billinfo&service=IowaCode&ga=83&input=476.6Iowa Climate Change Advisory Council, Final Report, December 23, 2008: http://www.iaclimatechange.us/ewebeditpro/items/O90F20723.pdfIUB, Order, Docket No. 199 IAC 35.4(1), January 14, 2008: http://www.state.ia.us/government/com/util/docs/orders/2008/0114_iac354.pdfIUB, Order, Docket No. EEP-08-2, March 9, 2009: https://efs.iowa.gov/efiling/groups/external/documents/docket/004253.pdfIUB, Order, Docket No. NOI 06-03, March 6, 2007: http://www.state.ia.us/government/com/util/docs/orders/2007/0306_noi063.pdfIUB, Order, Docket No. NOI-06-01, December 18, 2006: http://www.state.ia.us/government/com/util/docs/orders/2006/1218_noi061.pdfIUB, The Status of Energy Efficiency Programs in Iowa and the 2007 Iowa Residential Energy Survey, January 1, 2008 : http://www.iowa.gov/iub/docs/misc/EE/noi072/noi072_StatusReport.pdfMartin Kushler, Dan York, and Patti Wittehttp, ACEEE, Potential Study, January 2005: http://aceee.org/pubs/u051full.pdf?CFID=4892327&CFTOKEN=35620476MEEA, MIDWEST RESIDENTIAL MARKET ASSESSMENT AND DSM POTENTIAL STUDY, March 2006: http://www.mwalliance.org/sites/default/files/uploads/MEEA_2006_Midwest%20Market%20Assessment%20Final%20Report.pdfOffice of Energy Independence, Energy Independence Plan, December 2008 : http://www.energy.iowa.gov/OEI/docs/OEI_REPORTFINAL2008.pdf

More information on IA energy efficiency plan requirements can be found here, http://www.alliantenergy.com/Environmental/EnergyConservation/index.htm

http://www.alliantenergy.com/docs/groups/public/documents/pub/p016589.pdf

MidAmerican Energy Co has a number of EE incentives. The Company's energy efficiency plan is not currently located online.

http://www.state.ia.us/government/com/util/docs/orders/2007/1023_eep031.pdf

http://www.alliantenergy.com/docs/groups/public/documents/pub/p016589.pdf

http://www.state.ia.us/government/com/util/docs/orders/2007/1023_eep031.pdf

IOWA through 12/31/09; see citations at end of documentNatural Gas Updated by / Date Update notes for 2010 activity


BH 6/09, CK 7/10

CK 7/10

CK 7/10


Iowa Code 473.2 states that "All supply and demand options are considered and evaluated using comparable terms and methods in order to determine how best to meet consumers' demands for energy at the least cost." HF 918, passed in 2007, established an Office of Energy Independence and a requirement for an annual Energy Independence Plan that will develop recommendations regarding state energy regulatory policy. The 2008 Energy Independence Plan recommended that utilities should pursue all cost-effective EE and DR before building generation capacity. The Energy Efficiency Plans and Programs Committee, established pursuant to SF 2386, prepared a report on statewide energy efficiency efforts which was published in February 2009.

Traditional least-cost planning was ended in 2001. Iowa utilities are required to develop an energy efficiency plan for approval by the Iowa Utilities Board. The energy efficiency plans are developed in five-year cycles, and contain a forecast of future use of natural gas for five years, and identifies future supply options and costs. While this is not a traditional IRP, RAP considers it to be an IRP-like process. Efficiency planning requirements are in Iowa Code 476.6(16) and IAC 199—35.3.

CK 7/10

CK 7/10

CK 7/10

CK 7/10

BH 6/09, CK 7/10

IA Code 473.3 states a goal to "more efficiently utilize energy resources" and calls for the development of energy efficiency programs to meet this goal. Also see 1.1. Senate bill 2386, passed in 2008, requires utilities to file energy efficiency goals. In accordance with this mandate, the Iowa Utility Board issued an order in Docket No. 199 IAC 35.4(1) on January 14, 2008 asking investor-owned utilities to submit plans, including a scenario to achieve a 1.5% annual electricity and natural gas savings goal. In 2009 the Iowa Utilities Board issued orders approving new energy efficiency plans for Iowa's investor-owned utilities. According to a local contact, the plans are projected to reach savings levels by 2012 of 1.0% of retail natural gas use.

From state reviewer: In January of 2010, Iowa municipal utilities and electric cooperatives filed new energy efficiency plans via Joint Reports submitted by the Iowa Association of Municipal Utilities and the Iowa Association of Electric Cooperatives. These Joint Reports are being studied by the Iowa Utilities Board, which will issue a report to the legislature by December 31, 2010.

199 IAC 35.8(1)(e) requires EE plans as a whole to be cost-effective, and require the use of the societal, ratepayer impact, utility, and participant tests. EE programs for low-income customers and other specific programs do not need to be cost-effective. See IAC 199--35.8(1)(e).

Statute and rules require utilities to assess efficiency potential. Requirements are listed in IAC 35.8(1). In 2005 ACEEE estimated potential of aggressive EE programs to reduce consumer use of natural gas and peak electricity generated by natural gas. Additionally, the Midwest Energy Efficiency Alliance commissioned a potential study from Summit Blue Consulting in 2006 addressing DSM potential in the 13 MEEA states.

Iowa Code 476.6(16) and IAC 199—35.8 both require efficiency plans to include a range of programs designed to meet all ratepayer classes, including low-income customers.

IA Code 476.6(16) requires regulated utilities to assess cost-effective potential efficiency opportunities in their jurisdiction and use these assessments to develop capacity and energy savings performance standards with the Department of Natural Resources. SF 2386, passed in 2008, amended the code to include gas and electric utilities not required to be rate-regulated by the Board; such utilities must assess EE potential, establish an EE goal, and establish cost-effective EE programs designed to meet the EE goal. In January 2008 the Iowa Utility Board issued an Order in Docket 199 IAC 35.4(1) which required invester owned utilities to submit plans to achieve a 1.5% annual electricity and NG savings goal. In 2009 the Iowa Utilities Board issued orders approving new energy efficiency plans for Iowa's investor-owned utilities. According to a local contact the plans are projected to reach

BH 6/09, CK 7/10

CK 7/10

Goals are established in the Efficiency Planning process, which includes assessment of potential, data from prior program years, and program and budget approval. Non-rate-regulated utilities must establish their own goals after assessing potential.

from state reviewer:In January of 2010, Iowa municipal utilities and electric cooperatives filed new energy efficiency plans via Joint Reports submitted by the Iowa Association of Municipal Utilities and the Iowa Association of Electric Cooperatives. These Joint Reports are being studied by the Iowa Utilities Board, which will issue a report to the legislature by December 31, 2010.

In 1983, Iowa enacted the Iowa Alternative Energy Production law, which is codified in IAC 476.41 et seq. The law requires the state’s two investor-owned utilities -- MidAmerican Energy and Alliant Energy Interstate Power and Light -- to contract for a combined total of 105 megawatts of their generation from renewable-energy resources, including small hydropower facilities. Energy efficiency is not counted as a resource under the RPS. HF 918, passed in 2007, established an Office of Energy Independence and a requirement for an annual Energy Independence Plan that will develop recommendations regarding state energy regulatory policy.

Utilities must include an M&V plan in Energy Efficiency plan filings. See IAC 199—35.8. Iowa has not developed a technical reference manual. According to a local contact, investor-owned utilities included M&V plans in new energy efficiency plans approved by the Iowa Utilities Board in 2009. The Iowa Utilities Board is not required by law to develop a "technical reference manual." However, the Iowa investor-owned utilities in 2009 filed documents containing the savings algorithms with their Operating Plans.

CK 8/10 incorporated state reviewer comments

IOUs are approved to spend more than 5% of EE expenses on evaluation.

"Deemed savings" in the form of a state-developed and approved list of energy savings algorithms are not provided for in Iowa statutes relating to utility programs. However, according to a state reviewer, the investor-owned utilities and non-rate regulated utilities have included the savings algorithms in energy efficiency plans.

CK 8/10 incorporating state reviewer comments

M&V is not on a rigid schedule, but IOUs report savings annually.

IOUs generally contract with third parties for M&V activities.

CK 7/10

CK 7/10

BH 6/09, CK 7/10

IOUs must submit full-scale evaluations to IUB, which can be contested by other parties, especially the Office of Consumer Advocate.

Deemed savings are generally used, except for nonresidential customers participating in Shared Savings programs.

Programs are required to be delivered by the utilities or a contractor of the utilities.

See 1.2.1 above. Energy Efficiency plans are filed every five years. Starting in 2012, electric and gas utilities that are not required to be rate-regulated must file a biennial report identifying their progress in meeting the EE goal, and amendments to their EE plans.

BH 6/09, CK 7/10

CK 7/10

BH 6/09, CK 7/10


BH 6/09

The IUB/OCA office building is scheduled to be completed and occupied in December, 2010.

personal communication with Gordon Dunn, IA PUC, 5/10/10

The Iowa Energy Independence Plan developed annually by the Office of Energy Independence is developed in partnership with many stakeholders.

EPA 5/10


CK 7/10

CK 7/10

CK 7/10

CK 7/10

IA Code 476.6(16) establishes that utilities may recover costs through rates. Budgets and rates are established in the efficiency planning process. Related rules can be found in IAC 199—35.12. The rates are reconciled annually.

Budgets and rates are established through the efficiency planning process, which goes into effect for five-year periods.

Recommendation 5: Modify policies to align utility incentives with the delivery of cost-effective energy efficiency and modify ratemaking practices to promote energy efficiency

Docket NOI-06-1 was opened to consider natural gas decoupling. The Board concluded that historically, Iowa utilities have pursued efficiency aggressively without decoupling mechanisms, but stated that individual utilities should examine the relationship between energy efficiency and utility revenues, and may propose decoupling or other mechanisms as necessary. See 12/18/06 Order. The IA Climate Change Advisory Council Final Report, issued 12/23/08, recommended that the state change incentive structures to deploy EE, including decoupling, lost revenue recovery, and other policies. CK 8/10 incorporating

state reviewer requirements

CK 7/10

CK 7/10

CK 7/10

CK 7/10

CK 7/10


MRD 4/2010

MRD 4/2010

MRD 4/2010 From state reviewer: MidAmerican Energy Co. is in the process of revising its tariff to comply with Chapter 45.

MRD 4/2010 From state reviewer: Interstate Power and Light Co. (Alliant Energy) is in the process of revising its tariff to comply with Chapter 45.

updated through 2007


Confirmed with John Pearce at IUB [email protected] (515) 281-5679 From state reviewer: In May 2010, the Iowa Utilities Board adopted its final interconnection rules in RMU-2009-0008. This included new Chapter 45, which applies to rate regulated utilities, and amendments to Rule 15.10, which now applies primarily to non-rate-regulated utilities. The amendments to rule 15.10 focus the interconnection standards on IEEE Standard 1547; and continue to allow utilities to disconnect facilities in case of an emergency, and allow utilities to require an external disconnect. Chapter 45 includes these same provisions for rate-regulated utilities and, superseding subrule 15.11(4), requires the use of standard forms and interconnection agreements, including specific insurance requirements (such as general liability coverage, including homeowner insurance, for facilities smaller than 1 MVA). Chapter 45 also includes dispute resolution provisions. The IUB order adopting final rules in RMU-2009-0008 can be accessed here: https://efs.iowa.gov/efiling/groups/external/documents/docket/041781.pdf.

From state reviewer: Revised rule 15.10 can be accessed here: http://www.legis.state.ia.us/aspx/ACODocs/DOCS/7-28-2010.199.15.pdf. The new Chapter 45 rules can be accessed here: http://www.legis.state.ia.us/aspx/ACODocs/DOCS/7-28-2010.199.45.pdf.

ACH 8/2010

ACH 6/2010JR 6/2010 Jeff Kaman

(main number) 515-281-5979, e-mail: [email protected]

Citations

Building Codes Assistance Project / Online Code Environment & Advocacy Network, IA page: http://bcap-ocean.org/state-country/iowa

IA Code, Section 473 et seq, 2009: http://coolice.legis.state.ia.us/cool-ice/default.asp?category=billinfo&service=iowacode&ga=83&input=473IA Code, Section 476.41 et seq., Renewable Portfolio Standard: http://coolice.legis.state.ia.us/Cool-ICE/default.asp?category=billinfo&service=IowaCode&ga=83&input=476.41 IA Code, Section 476.6 et seq., 2009: http://coolice.legis.state.ia.us/Cool-ICE/default.asp?category=billinfo&service=IowaCode&ga=83&input=476.6Iowa Climate Change Advisory Council, Final Report, December 23, 2008: http://www.iaclimatechange.us/ewebeditpro/items/O90F20723.pdfIUB, Order, Docket No. 199 IAC 35.4(1), January 14, 2008: http://www.state.ia.us/government/com/util/docs/orders/2008/0114_iac354.pdfIUB, Order, Docket No. EEP-08-2, March 9, 2009: https://efs.iowa.gov/efiling/groups/external/documents/docket/004253.pdfIUB, Order, Docket No. NOI 06-03, March 6, 2007: http://www.state.ia.us/government/com/util/docs/orders/2007/0306_noi063.pdfIUB, Order, Docket No. NOI-06-01, December 18, 2006: http://www.state.ia.us/government/com/util/docs/orders/2006/1218_noi061.pdfIUB, The Status of Energy Efficiency Programs in Iowa and the 2007 Iowa Residential Energy Survey, January 1, 2008 : http://www.iowa.gov/iub/docs/misc/EE/noi072/noi072_StatusReport.pdfMartin Kushler, Dan York, and Patti Wittehttp, ACEEE, Potential Study, January 2005: http://aceee.org/pubs/u051full.pdf?CFID=4892327&CFTOKEN=35620476MEEA, MIDWEST RESIDENTIAL MARKET ASSESSMENT AND DSM POTENTIAL STUDY, March 2006: http://www.mwalliance.org/sites/default/files/uploads/MEEA_2006_Midwest%20Market%20Assessment%20Final%20Report.pdfOffice of Energy Independence, Energy Independence Plan, December 2008 : http://www.energy.iowa.gov/OEI/docs/OEI_REPORTFINAL2008.pdf

From state reviewer: MidAmerican Energy Co. is in the process of revising its tariff to comply with Chapter 45.

From state reviewer: Interstate Power and Light Co. (Alliant Energy) is in the process of revising its tariff to comply with Chapter 45.

ILLINOIS through 12/31/09Electric


1.1

Y

S

1.2



N

1.2

SRO

1.3 N

1.4


Y

1.2.2 Efficiency is procured as a resource for default service/standard offer customers Y


1.4

FO

b

1.5


2.1




N

Y

2.1

S

2.2

Y

S


2.3

Y

O

Y

S

2.4 N

2.5


2.3.2 Established EE programs reach all customer classes



Y

2.5

S,R

b

S


2.5

Y+



O


SRO

2.6


Y

Y

Y

R


Y-

S,RO




2.6

Y

a, b

R

2.7



2.7.1 EE delivery structure has been established

Y

2.7

S

a

2.8


Y

2.9

Y/Y



2.9

R,O

Y/Y

R,O

2.10

N



2.10

O

2.11

Y

R,O


3.1

Y



3.1

R,O

Y


R




3.2N

N


3.1.2 Process is in place, such as a state or regional collaborative, to pursue EE as a high-priority resource. (See Guide Tab for Y/N criteria.)

75% of state access to ENERGY STAR New HomesWhat proportion is due to regulated utility program? (who is sponsor)

75% of state access to Home Performance with ENERGY STAR?

What proportion is ue to regulated utility program? (who is sponsor)

B78


B80


4.1


Y

4.1

c, a


4.2

4.3

S,R,O




4.3

O

4.4

5.1

5.2

N

5.3

Funds from carbon trading program support EERecommendation 5: Modify policies to align utility incentives with the delivery of cost-effective energy efficiency and modify ratemaking practices to promote energy efficiency

investments.5.1.1 Utility throughput incentive is addressed and disincentives are removed

N


5.2.1 Utility/shareholder EE incentives are provided

5.3.1 Impact on EE is a consideration when designing retail rates


5.4


S,O



Y/C

R

Y

5.4

S



7.1

7.2


U+


Y+

N

7.2

U

7.3

A statewide exit fee policy is in place

S

7.4


U

U

7.5

R

Citations

Y

N


N

ILLINOIS through 12/31/09Electric Natural Gas


Y

S

N

Legislation passed in 2007 (SB 1592; Public Act 95-0481) states that utilities must establish annual energy savings goals, through which they must meet 0.2% of their delivered load in 2008 with EE, increasing incrementally to 2% in 2015 and thereafter.

SB 1592. http://www.ilga.gov/legislation/publicacts/95/PDF/095-0481.pdf

IRP was abandoned when Illinois restructured in 1997. The Illinois Power Agency (IPA) develops procurement plans for ComEd and Ameren, to ensure "adequate, reliable, affordable, efficient, and environmentally sustainable electric service at the lowest total cost," as a result of 2007 legislation (SB 1592). EE and DR Plans are also required to be filed and approved every three years, with the first filing due November 15, 2007. The IPA's first procurement plan was issued October 20, 2008 and assigned Docket No. 08-0519. On September 30, 2009, the IPA filed a new procurrement plan with the ICC for a 5-year period beginning June 2010. On December 28, 2009, the ICC issued an Order in Docket 09-0373 approving with modifications the IPA's procurement plan.

SB 1592. http://www.ilga.gov/legislation/publicacts/95/PDF/095-0481.pdf IPA Procurement Plan dated October 20, 2008 filed in Docket 08-0519. http://www.icc.illinois.gov/docket/Documents.aspx?no=08-0519ICC Order dated December 28 2009 in Docket 09-373. http://www.icc.illinois.gov/e-docket/reports/browse/document_view.asp?id=9870&no=09-0373&did=144971

N

PJM conducts a regional planning process for 13 states and DC, including a portion of IL. PJM uses its Reliability Pricing Model (RPM) to procure capacity on a multi-year forward basis through an auction mechanism. In March 2008, several parties asked FERC to review the reasonableness of the RPM process. On June 30, 2008, PJM filed a responsive report. On September 19, 2008, FERC issued an Order addressing the report and supporting creation of a stakeholder process to address pending RPM issues. On December 12, 2008, PJM filed a report with FERC summarizing results of the stakeholder process, proposing changes to the RPM, including allowing energy efficiency to participate in the RPM in Docket Nos. ER05-1410-000, EL05-148-000. Also on December 12, 2008, PJM filed corresponding tariff revisions for effect on March 27, 2009 in Docket No. ER09-412-000. On February 9, 2009, PJM and certain parties filed a Settlement Agreement with FERC regarding PJM’s December 2008 RPM filings. On March 26, 2009, FERC issued an Order Accepting Tariff Provisions in Part, Rejecting Tariff Provisions in Part, Accepting Report, and Requiring Compliance Filings in the above-referenced dockets. The March 26th Order addresses the inclusion of EE in the RPM at paragraphs 120-139. FERC approved PJM's tariff provisions to enable EE resources to participate in the RPM market starting with the May 2009 Base Residual Auction that will procure capacity for the 2012-2013 Delivery Year. FERC rejected PJM's proposal to compensate EE resources that do not supply annual M&V plans. On October 30, 2009, FERC issued an Order in Docket Nos. ER05-1410 et. al. addressing compliance issues relating to March 26, 2009 Order in these dockets.


Y

PJM Report Proposing Changes to RPM filed in Dcoket Nos. ER05-1410 et. al. dated December 12, 2008. http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13672172 PJM tariff filing to implement proposed changes to RPM in Docket Nos. ER05-1410 et. al. dated December 12, 2008. http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13672185FERC Order Regarding PJM Report and Tariff Filings in Docket Nos. ER05-1410 et. al. dated March 26, 2009. http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13701842FERC Order on PJM RPM Compliance Issues, Dcoket Nos ER05-1410 et. al., October 30, 2009. http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13765680

Illinois' draft CAIR Annual and Ozone Season rules reserved 25% of the state's NOx allowances for "Clean Air Set-Asides" including 4% for end-use EE. However, it does not appear that the final rule kept this arrangement.Draft CAIR Rule. http://www.epa.state.il.us/air/cair/set-aside-breakdown.htmlFinal CAIR Rule. http://www.ipcb.state.il.us/documents/dsweb/Get/Document-55740/

Legislation passed in 2007 (SB 1592) states that utilities must implement cost-effective energy efficiency to meet 0.2% of their delivered load in 2008, increasing incrementally to 2% in 2015 and thereafter.

S

Y

S

SB 1592. http://www.ilga.gov/legislation/publicacts/95/PDF/095-0481.pdf

Legislation passed in 2007 (SB 1592) (codified at 20 ILCS 3855/1-10) requires the TRC test, modified to ignore the effects on natural gas. Low-income programs do not have to meet the TRC test. In 2009, purusant to SB 1918, the definition of "total resource cost test" was amended to include "other quantifiable societal benefits" and avoided natural gas utility costs.;

SB 1592. http://www.ilga.gov/legislation/publicacts/95/PDF/095-0481.pdf 20 ILCS 3855/1-10. http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=002038550HArt%2E+1&ActID=2934&ChapAct=20%26nbsp%3BILCS%26nbsp%3B3855%2F&ChapterID=5&ChapterName=EXECUTIVE+BRANCH&SectionID=75953&SeqStart=100000&SeqEnd=3700000&ActName=Illinois+Power+Agency+Act%2ESB 1918. http://www.ilga.gov/legislation/publicacts/96/PDF/096-0033.pdf

Y

O

N

A residential potential study was done in 2003 by the Midwest Energy Efficiency Alliance. Also, ACEEE estimated potential of aggressive EE programs to reduce consumer use of natural gas and peak electricity generated by natural gas.

MEEA potential study. http://www.mwalliance.org/resource_program.php?PHPSESSID=33d79171c0ebdde26eb1619bb000ea5e&categorey=3ACEEE study. http://www.aceee.org/pubs/u051.htm

Ameren and ComEd's programs reach all customer classes. Section 220 ILCS 5/8-103 directs electric utilities to file EE and DR plans that "represent a diverse cross-section of opportunities for customers of all rate classes" and measures for low-income customers.

220 ILCS 5/8-103. http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=022000050HArt%2E+VIII&ActID=1277&ChapAct=220%26nbsp%3BILCS%26nbsp%3B5%2F&ChapterID=23&ChapterName=UTILITIES&SectionID=52875&SeqStart=9900000&SeqEnd=14800000&ActName=Public+Utilities+Act%2E

In 2005, the ICC adopted a resolution in Docket No. 05-0437 encouraging utilities to commit to a voluntary EE portfolio goal of reducing load growth by 25% during 2015-2017. Legislation passed in 2007 (SB 1592) (codified at 220 ILCS 5/8-103) states that utilities must establish annual energy savings goals, through which they must meet 0.2% of their delivered load in 2008 with EE, increasing incrementally to 2% in 2015 and thereafter. In February 2008, the IL Commerce Commission approved utility EE and DR Plans that begin to meet these requirements.

http://www.mwalliance.org/resource_program.php?PHPSESSID=33d79171c0ebdde26eb1619bb000ea5e&categorey=3

S

S

ICC Resolution in Docket No. 05-0437. http://www.icc.illinois.gov/docket/CaseDetails.aspx?no=05-0437SB 1592. http://www.ilga.gov/legislation/publicacts/95/PDF/095-0481.pdf 220 ILCS 5/8-103. http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=022000050HArt%2E+VIII&ActID=1277&ChapAct=220%26nbsp%3BILCS%26nbsp%3B5%2F&ChapterID=23&ChapterName=UTILITIES&SectionID=52875&SeqStart=9900000&SeqEnd=14800000&ActName=Public+Utilities+Act%2E

In 2007 (SB 1592), IL adopted a mandatory Energy Efficiecy Resource Standard (EERS) Requirement has a cap that limits the amount rather than a specific savings target. The EERS savings targets are codified at 220 ILCS 5/8-103.

SB 1592. http://www.ilga.gov/legislation/publicacts/95/PDF/095-0481.pdf220 ILCS 5/8-103. http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=022000050HArt%2E+VIII&ActID=1277&ChapAct=220%26nbsp%3BILCS%26nbsp%3B5%2F&ChapterID=23&ChapterName=UTILITIES&SectionID=52875&SeqStart=9900000&SeqEnd=14800000&ActName=Public+Utilities+Act%2E

Illinois has an RPS, but EE is not a qualifying source that can meet the standard. In 2005, the ICC adopted a resolution in Docket No. 05-04347 encouraging utilities to commit to a voluntary EE portfolio goal of reducing load growth by 25% during 2015-2017. Legislation passed in 2007 (SB 1592) states that utilities must establish annual energy savings goals, through which they must meet 0.2% of their delivered load in 2008 with EE, increasing incrementally to 2% in 2015 and thereafter. There is a cost cap on the standard. Utilities must also implement DR measures to reduce peak demand by 0.1% per year each year for 10 years, beginning in 2008. In February 2008, the ICC approved EE and DR Plans that begin to meet these requirements. The IL Climate Change Advisory Group released a report on November 13, 2008 making recommendations to meet the Governor's 2006 goal of reducing GHG emissions to 1990 levels by 2020; one of the recommendations is to provide a 2% demand reduction by 2015 without a revenue cap. By Order issued on December 28, 2009 in Docket No. 09-0373, the ICC approved the IPA's procurment plan covering the period from June 1, 2010 through May 31, 2015.

ICC Resolution in Docket No. 05-0437. http://www.icc.illinois.gov/docket/CaseDetails.aspx?no=05-0437SB 1592. http://www.ilga.gov/legislation/publicacts/95/PDF/095-0481.pdf.Report of the IL Climate Change Advisory Group dated November 13, 2008. http://www.epa.state.il.us/air/climatechange/documents/iccag-summary.pdf ICC Order dated December 28, 2009 in Docket No. 09-0373. http://www.icc.illinois.gov/docket/files.aspx?no=09-0373&docId=144971

ACEEE issued its 2009 State Energy Efficiency Scorecard (Scorecard) in October 2009. Among other things, the Scorecard tracks annual EE program savings by each state in 2007 (the most recent year for which relevant data are available for all jurisdictions). According to the Scorecard, IL's total incremental electric savings (MWh) was 314 in 2007 which was less than 0.01% of savings as a percent of electricity sales and ranked IL 44th when compared with other states.

ACEEE Scorecard for 2009. http://aceee.org/pubs/e097.pdf?CFID=571117&CFTOKEN=50109276

SB 1592 sets EM&V funding at 3%.

Legislation passed in 2007 (SB 1592) requires utilities to provide for annual independent evaluation of programs. Ameren and ComEd proposed details of M&V in their EE and DR Plans filed on November 15, 2007 in Docket Nos. 07-0539 and 07-0540; the Commission approved the plans on February 6, 2008. Pursuant to those Orders, the ICC Staff conducted a series of workshops on EE and demand management. One of the topics considered during the workshops was whether the ICC should adopt rules governing M&V. On December 12, 2008, the Staff issued a report (which was published on February 18, 2009) summarizing the workshops and its recommendations. In the December 12, 2008 report, the Staff recommended against adopting a rule that would provide general guidelines for measuring ernergy savings, benefits anfd costs.

N

SB 1592. http://www.ilga.gov/legislation/publicacts/95/PDF/095-0481.pdf ICC Order dated February 6, 2008 in Docket 07-0539. http://www.icc.illinois.gov/docket/files.aspx?no=07-0539&docId=119839 ICC Order dated February 6, 2008 in Docket 07-0540. http://www.icc.illinois.gov/docket/files.aspx?no=07-0540&docId=119840ICC Staff Report dated December 12, 2008 Staff Report (published February 18, 2009). http://www.icc.illinois.gov/electricity/Energy%20Efficiency%20and%20Demand%20Response.aspx

SB 1592. http://www.ilga.gov/legislation/publicacts/95/PDF/095-0481.pdf According to comments submitted by T. Kennedy, energy savings are used to measure performance.

According to comments submitted by C Kulak on July 2, 2010, EM&V reviews are done on an annual basis.

By February 6, 2008 Order in Docket Nos. 07-0539 and 07-0540, the ICC approved Amren's and ComEd's EE and DR plans. In those Orders the ICC required an independent evaluator for the utility's portfolio of measures. The Orders further provide that the Commission will have supervisory control over hiring and firing the independent evaluator.

ICC Order dated February 6, 2008 in Docket 07-0539. http://www.icc.illinois.gov/docket/files.aspx?no=07-0539&docId=119839 ICC Order dated February 6, 2008 in Docket 07-0540. http://www.icc.illinois.gov/docket/files.aspx?no=07-0540&docId=119840

Y

According to comments submitted by T Kennedy, review of M & V is done in a transparent process.

By February 6, 2008 Orders in Docket No. 07-0539 and 07-0540, the ICC approved Amren's and ComEd's EE and DR plans. In those Orders, the ICC required the use of deemed savings for the first three years of the programs, after which actual savings must be used, and the values must be revisited every three years or more frequently.

ICC Order dated February 6, 2008 in Docket 07-0539. http://www.icc.illinois.gov/docket/files.aspx?no=07-0539&docId=119839 ICC Order dated February 6, 2008 in Docket 07-0540. http://www.icc.illinois.gov/docket/files.aspx?no=07-0540&docId=119840

Legislation passed in 2007 (SB 1592) requires electric utilities to implement all of the DR programs approved by the Commission, and 75% of the approved EE programs, and may outsource various aspects of implementation. The remaining 25% of approved EE measures must be implemented by the Dept. of Commerce and Economic Opportunity. If at the end of the third year, the utilities have not achieved their savings goals, the program will be taken away and assigned to the Illinois Power Agency which will also procure standard offer service. (See 220 ILCS 5/8-103)

S

a

SB 1592. http://www.ilga.gov/legislation/publicacts/95/PDF/095-0481.pdf220 ILCS 5/8-103. http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=022000050HArt%2E+VIII&ActID=1277&ChapAct=220%26nbsp%3BILCS%26nbsp%3B5%2F&ChapterID=23&ChapterName=UTILITIES&SectionID=52875&SeqStart=9900000&SeqEnd=14800000&ActName=Public+Utilities+Act%2E

According to state contact T Kennedy, resources plans are updated every three years "though program administrators do have flexibility to make changes as necessary to properly manage the portfolio."

Prior to 2009, IL had no statewide code is in place. Chicago had a mandatory residential building code that approximates the 2000 IECC code. The IL Climate Change Advisory Group released a report on November 13, 2008 making recommendations to meet the Governor's 2006 goal of reducing GHG emissions to 1990 levels by 2020; one of the recommendations is to improve residential EE construction codes beyond international standards. On May 31, 2009 the IL Legislature adopted HB 3987 (Public Act 096-0778) which directed the Illinios Capital Development Board to adopt the Illinois Energy Conservation Code which incorporates the 2009 IECC for residential buildings. The code is mandatory statewide. An automatic update provision directs the Capital Development Board to adopt each new version of the IECC within nine months of its publication, with an effective date three months afterwards. The latest code change will become effective January 29, 2010. See BCAP web site for additional details.

BCAP web site. http://bcap-energy.org/node/66 IL Climate Change Advisory Group Report dated November 13, 2008. http://www.epa.state.il.us/air/climatechange/documents/iccag-summary.pdf HB 3987. http://bcap-energy.org/files/Public%20Act%20096-0778_Residential%20IECC.pdf

Prior to 2009, the 2006 IECC and 2004 ASHRAE 90.1 were applied statewide. The code became effective in 2006. There was no schedule set for revisions. The IL Climate Change Advisory Group released a report on November 13, 2008 making recommendations to meet the Governor's 2006 goal of reducing GHG emissions to 1990 levels by 2020; one of the recommendations is to improve commercial EE construction codes beyond international standards. In 2009, IL adopted the Illinois Energy Conservation Code which incorporates the 2009 IECC and ASHRAE Standard 90.1 - 2007 (by reference) fror all privately funded commnercial buildings. Standard 90.1-2007 is also required for all publically funded commercial buildings. The code is mandatory statewide. An automatic update provision directs the Capital Development Board to adopt each new version of the IECC within nine months of its publication, with an effective date three months afterwards. The latest code change will become effective January 29, 2010. See BCAP web site for additional details.

BCAP web site. http://bcap-energy.org/node/66 IL Climate Change Advisory Group Report dated November 13, 2008. http://www.epa.state.il.us/air/climatechange/documents/iccag-summary.pdfHB 3987. http://bcap-energy.org/files/Public%20Act%20096-0778_Residential%20IECC.pdf

IL has not enacted any EE standards for appliances. The IL Climate Change Advisory Group released a report on November 13, 2008 making recommendations to meet the Governor's 2006 goal of reducing GHG emissions to 1990 levels by 2020; one of the recommendations is to establish EE standards for appliances and equipment.


Y

IL Climate Change Advisory Group Report dated November 13, 2008. http://www.epa.state.il.us/air/climatechange/documents/iccag-summary.pdf

New buildings and major renovations of less than 10,000 square feet must meet the highest LEED standard that is practical, and receive all LEED credits deemed mandatory by the state Capital Development Board; new buildings and major renovations larger than 10,000 square feet must be LEED silver certified, and receive all LEED credits deemed mandatory by the state Capital Development Board. Exemptions may be granted. 2007 legislation directs state agencies to set a goal of reducing energy use by 10% within 10 years, and requires purchase of Energy Star equipment. The IL Climate Change Advisory Group released a report on November 13, 2008 making recommendations to meet the Governor's 2006 goal of reducing GHG emissions to 1990 levels by 2020. One of the recommendations is to improve energy conservation and efficiency programs for existing state facilities. In July 2009, IL adopted HB 1013 (Pub Act 096-0073) which defines major renovations as projects with a budget of at least 40% of a building's replacement cost and makes several requirements based on the LEED rating system.

IL Climate Change Advisory Group Report dated November 13, 2008. http://www.epa.state.il.us/air/climatechange/documents/iccag-summary.pdf HB 1013. http://www.ilga.gov/legislation/publicacts/fulltext.asp?Name=096-0073

Public education was addressed in the ICC's Orders adopting the Amren and ComEd EE and DR plans in Docket Nos. 07-0539 and 07-0540. In both Orders, the ICC supported the utility's proposal for a collaborative process for implementing its plan that includes a broad array of stakeholders. In both Orders, the ICC encouraged, but did not require the utility to develop a statewide EE web site. In both Orders, the ICC explicitly declined to requiree the utility to adopt a EE education program. IL's State Energy Office is called the Energy and Recycling Bureau which is located within the IL Department of Commerce and Economic Opportunity. URLs for the Energy and Recycling Bureau and its Education and Communication Division are listed below.

Ameren Illinois Utilities

Discussions with MEEA


ICC Order dated February 6, 2008 in Docket 07-0539. http://www.icc.illinois.gov/docket/files.aspx?no=07-0539&docId=119839 Info on most of the electric programs is available on the following web site: http://ilsag.org/home

ICC Order dated February 6, 2008 in Docket 07-0540. http://www.icc.illinois.gov/docket/files.aspx?no=07-0540&docId=119840Energy and Recycling Bureau. http://www.commerce.state.il.us/dceo/Bureaus/Energy_Recycling/ Education and Communication Division. http://www.commerce.state.il.us/dceo/Bureaus/Energy_Recycling/Education/

There is a Statewide Smart Grid Collaborative. Ameren and ComEd were required to establish a Stakeholder Advisory Committee to review the utilities' progress in meeting EE and DR goals in their February 6, 2008 EE and DR Plan approvals.

ICC Order dated February 6, 2008 in Docket 07-0539. http://www.icc.illinois.gov/docket/files.aspx?no=07-0539&docId=119839ICC Order dated February 6, 2008 in Docket 07-0540. http://www.icc.illinois.gov/docket/files.aspx?no=07-0540&docId=119840

Y

In 1998, an Energy Efficiency Trust Fund was established, which requires electric utilities and alternative retail electric suppliers contribute annually a pro-rata share of a total amount of $3 million. The IL Dept of Commerce and Economic Opportunity determines how the funds are used; at the time, the fund supported EE in low-income housing. The Governor's Sustainable Energy Plan, adopted by the ICC in 2005, recommends that utilities be able to recover efficiency costs. The Plan also recommends that $10 million annually should be made available by utilities from their efficiency and demand response budgets to support DCEO-administered efficiency programs (including education and training). Individual utilities have agreed to submit implementation plans but have not done this yet. The funding mechanism was renewed in 2007 until December 12, 2015. Legislation passed in 2007 (SB 1592) authorizes utilities to recover costs for EE programs through an automatic adjustment clause tariff, and directs them to propose a cost-recovery mechanism in their EE plans filed with the Commission. There are caps for the total charge to customers. (See 220 ILCS 5/8-103) Ameren and Commonwealth Edison received approval of their EE and DR Plans on February 6, 2008, and annually trued up adjustment mechanisms were approved. Separate mechanisms for residential, small C&I, and large C&I are required, with all classes equally sharing costs for low-income programs. As discussed in 5.4.4 below, 220 ILCS 5/16-111.7 requires electric utilities to offer on-bill financing to their customers. That section also allows electric utilities to recover excess bad debt expenses through a rider.

S,R

S

See 4.1.1

SB 1592. http://www.ilga.gov/legislation/publicacts/95/PDF/095-0481.pdf220 ILCS 5/8-103. http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=022000050HArt%2E+VIII&ActID=1277&ChapAct=220%26nbsp%3BILCS%26nbsp%3B5%2F&ChapterID=23&ChapterName=UTILITIES&SectionID=52875&SeqStart=9900000&SeqEnd=14800000&ActName=Public+Utilities+Act%2EICC Order dated February 6, 2008 in Docket 07-0539. http://www.icc.illinois.gov/docket/files.aspx?no=07-0539&docId=119839ICC Order dated February 6, 2008 in Docket 07-0540. http://www.icc.illinois.gov/docket/files.aspx?no=07-0540&docId=119840220 ILCS 5/16-111.7. http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=022000050HArt%2E+XVI&ActID=1277&ChapAct=220%26nbsp%3BILCS%26nbsp%3B5%2F&ChapterID=23&ChapterName=UTILITIES&SectionID=21314&SeqStart=35800000&SeqEnd=40900000&ActName=Public+Utilities+Act%2E Governor's Sustainable Energy Plan issued in 2005, http://www.icc.illinois.gov/electricity/sustainableenergyplaninitiative.aspx 20 ILCS 687/6.6. http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=002006870HArt%2E+6&ActID=266&ChapAct=20%26nbsp%3BILCS%26nbsp%3B687%2F&ChapterID=5&ChapterName=EXECUTIVE+BRANCH&SectionID=4481&SeqStart=600000&SeqEnd=700000&ActName=Renewable+Energy%2C+Energy+Efficiency%2C+and+Coal+Resources+Development+Law+of+1997%2E

ACEEE issued its 2009 State Energy Efficiency Scorecard (Scorecard) in October 2009. Among other things, the Scorecard tracks spending on EE by each state in 2007 (the rmost recent year for which relevant data are available for all juriusdictions). According to the Scorecard, IL total spending on EE in 2007 was $829,000 which was less than 0.05% of total utility revenues and ranked IL 44th in state spending.

Y-

R

b

ACEEE Scorecard for 2009. http://aceee.org/pubs/e097.pdf?CFID=571117&CFTOKEN=50109276


According to state contact T Kennedy, the Commission favors the Single Fixed Variable rate design which results in relatively high customer charges that help reduce the utility's disincentive to promote energy efficiency and therefore is an attempt to better align utility incentives with investment in energy efficiency (of which the state has energy efficiency mandates and cost recovery flow through).

IL does not have a mechanism in place for utility shareholder incentives for EE.

Residential rates of the two largest utilities were flat rates. According to state contact T Kennedy, "most declining block rates have been eliminated except for Ameren where bill impact considerations prevent the Commission from doing so. The Commission favors the Single Fixed Variable rate design."

220 ILCS 5/16.107 requires electric utilities to file tariffs allowing residential and non-residential customers to elect real-time pricing (RTP) rates. By Order issued on December 20, 2006, the ICC approved RTP rates for ComEd in Docket No. 06-0617 and selected Comverge as the Program Administrator. Comverge is required to file annual reports regarding ComEd's RTP program. Comverge's report, along with a financial audit of the program and comments from stateholders are available on the ICC's edocket system under Docket 06-0617 at the URL below. According to state contact T Kennedy, the Commission has had optional RTP rates available for all electric utilities since 1997. CNT Energy is the program administrator for the Power Smart Pricing Program for Ameren Illinois Utilities. Power Smart Pricing Program consists of time-sensitive day-ahead pricing.

220 ILCS 5/16.107. http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=022000050HArt%2E+XVI&ActID=1277&ChapAct=220%26nbsp%3BILCS%26nbsp%3B5%2F&ChapterID=23&ChapterName=UTILITIES&SectionID=21314&SeqStart=40500&SeqEnd=45100&ActName=Public+Utilities+Act%2E URL to documents in Docket No. 06-0617. http://www.icc.illinois.gov/docket/Documents.aspx?no=06-0617

In September 2008, the Commission approved a rate increase for ComEd to fund the first phase of a smart grid project, including deployment of 200,000 smart meters. AMI workshops were required to be held during the following six months for ComEd's project. In addition, the Statewide Smart Grid Collaborative was established to develop a plan to guide the deployment of the smart grid statewide. The Collaborative will issue a report to the Commission, and the Commission will open a proceeding to consider the report and implementation issues. By Order issued on September 10, 2008 in Docket No. 07-0566, the ICC approved an AMI pilot for 200,000 ComEd customers. By Order issued on October 14, 2009 in Docket No. 09-0263, the ICC approved a tariff rider with annual true-up for ComEd AMI pilot program.

ICC Order September 10, 2008 in Docket No. 07-0566. http://www.icc.illinois.gov/docket/files.aspx?no=07-0566&docId=128596ICC Order October 14, 2009 in Docket No. 09-0263. http://www.icc.illinois.gov/docket/files.aspx?no=09-0263&docId=142015

S


220 ILCS 5/16-111.7 (electric) and 19-140 (gas), which were enacted in 2009 as part of Senate Bill 1918 (Public Act 96-0033), allow utility customers to purchase cost effective EE with no initial up-front payment through on-bill finiancing. On September 14, 2009, the ICC convened the third in a series of workshops aimed at establishing on-bill financing options for customers who wish to purchase EE measures. Section 16-111.7 requires electric utilities to submit a proposed on-bill financing program for commission review within 60 days of the completion of he workshop process

220 ILCS 5/16-111.7. http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=022000050HArt%2E+XVI&ActID=1277&ChapAct=220%26nbsp%3BILCS%26nbsp%3B5%2F&ChapterID=23&ChapterName=UTILITIES&SectionID=21314&SeqStart=35800000&SeqEnd=40900000&ActName=Public+Utilities+Act%2ESB 1918 http://www.ilga.gov/legislation/publicacts/96/096-0033.htm

Illinois does not have a statewide policy on net-metering.

Interconnection standards were adopted by the Illinois Commerce Commission in August 2008. There are four levels of review for interconnection requests, with standard interconnection agreements for each. Tier 1 is for systems 10 kW or less; Tier 2 for systems with a capacity rating of 2 MW or less, connected to a radial distribution network or a spot network serving one customer; Tier 3: Certified systems with a capacity rating of 50 kW or less connected to an area network and from which power will not be exported; or certified, non-power-exporting systems with a capacity rating of 10 MW or less connected to a radial distribution network; Tier 4: Systems with a capacity of 10 MW or less that do not meet the criteria for inclusion in a lower tier. Systems are considered to be lab-certified if the components have been evaluated as compliant with UL 1741 and the 2008 National Electric Code (NEC) according to the testing protocols of IEEE 1547. Larger systems are typically subject to more intensive screening and longer time limits. All systems are required to have an external disconnect switch directly accessible to the utility. Facilities larger than 1 MW must carry liability insurance with coverage of at least $2 million per occurrence and $4 million in aggregate. State standards for distributed generation with capacity greater than 10 MVA have also been developed (as 83 Illinois Administrative Code Part 467), but these standards are not yet effective.

Illinois Power Co, IOU a subsidiary of Ameren - Ameren provides a monthly credit to QF for net excess generation (a cogeneration or small power production facility) in an amount very similar to the utility's retail rate. Rider QF provides a general outline of Ameren's metering policy in central Illinois, http://www.ameren.com/sites/aiu/Rates/Documents/ipel32rdnm.pdf

Illinois does not have a statewide policy on standby rates

Citations

Commonwealth Edison Co, IOU - has net metering rules for wind and PV. Systems up to 40 kW are allowed to net-meter. Net excess is purchase at the utility's avoided-cost rate, plus an annual incentive payment. Information on Com-Ed's policy can be found here, http://www.iowadnr.com/energy/solarmidwest/illinois.html.

Exit fees are no longer allowed to be assessed in Illinois. They were allowed for some DG installations up to Dec. 31, 2006 but are no longer applicable under legislation 220 ILCS 5/.220 ILCS 5/ can be accessed at: http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=022000050HArt%2E+XVI&ActID=1277&ChapAct=220%26nbsp%3BILCS%26nbsp%3B5%2F&ChapterID=23&ChapterName=UTILITIES&SectionID=21314&SeqStart=35100000&SeqEnd=39400000&ActName=Public+Utilities+Act%2E

Commonwealth Edison Co (Exelon) - standby service is provided at a contracted rate with the utility. It would typically be based on high demand charges, with billing demand being based on the average of the three maximum 30 minute demand periods of the month. Rate available at: https://www.comed.com/sites/customerservice/Pages/RateInformation.aspx

Illinois Power Co (Ameren) - Rider RTP - standby service is entirely provided by real-time energy prices that are available to customers each day. Reserve distribution capacity can be attained through a contract with the utility. Rate available at: http://www.ameren.com/sites/aiu/Rates/Pages/ratesPost2006AMCIPS.aspx

IRP was abandoned when Illinois restructured in 1997. The Illinois Power Agency filed a procurement plan mainly for renewable generation (renewable energy credits) for the period 2010 through 2015 in September of 2009. Information on procurement plans for ComEd and Ameren for 2009 can be accessed at: http://www.icc.illinois.gov/electricity/procurementprocess2009.aspx. In December 2009, the Illinois Commerce Commission issued an order to revise the procurement plan since certain petitions to the plan were received. The order can be accessed from here, http://www.icc.illinois.gov/e-docket/reports/browse/document_view.asp?id=9870&no=09-0373&did=144971.

Title 83: Public Utilities, Chapter I, Subchapter c, Part 440 Least-Cost Planning for Electric Utilities was repealed. See, http://www.ilga.gov/commission/jcar/admincode/083/08300440sections.html.

ILLINOIS through 12/31/09Natural Gas Updated by / Date Update notes for 2010 activity


CPS 03/10; BH 6/09

CPS 03 10

CPS 03/10; BH 6/09

In 2009, the IL Legislature adopted several key amendments to EE law in the state. (SB 1918; Public Act 96-0033) SB 1918 included a new section on gas EE programs (220 ILCS 5/8-104). Among other things, this new section provides that "It is the policy of this State that natural gas urtilities...are required to use cost effective energy efficiency to reduce direct and indirect costs to consumers. It serves the public interest to allow natural gas utilities to reccover costs" associated with EE measures.

SB 1918. http://www.ilga.gov/legislation/publicacts/96/PDF/096-0033.pdf220 ILCS 5/8-104. http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=002038550HArt%2E+1&ActID=2934&ChapAct=20%26nbsp%3BILCS%26nbsp%3B3855%2F&ChapterID=5&ChapterName=EXECUTIVE+BRANCH&SectionID=75953&SeqStart=100000&SeqEnd=3700000&ActName=Illinois+Power+Agency+Act%2E

CPS 03/10

CPS 05/10; CS 4/09

CPS 05/10


CPS 03 10; BH 6/09

In 2009, the IL Legislature adopted several key amendments to EE law in the state. (SB 1918; Public Act 96-0033) SB 1918 included a new section on gas EE programs (220 ILCS 5/8-104). Among other things, this new section provides that "It is the policy of this State that natural gas urtilities...are required to use cost effective energy efficiency to reduce direct and indirect costs to consumers. It serves the public interest to allow natural gas utiklities to reccover costs" associated with EE measures. Section 5/8-104 creates a portfolio of natural gas efficiency programs very similar to the electric efficiency portfolio. The programs are to start 6/1/11.

CPS 03/10

CPS 03/10


Legislation passed in 2007 (SB 1592) (codified at 20 ILCS 3855/1-10) requires the TRC test, modified to ignore the effects on natural gas. Low-income programs do not have to meet the TRC test. In 2009, purusant to SB 1918, the definition of "total resource cost test" was amended to include "other quantifiable sociietal benefits" and avoided natural gas utility costs. The application of the TRC test to gas utilities is governed by 220 ILCS 5/8-104.

CPS, 03/10; BH 6/09

SB 1592. http://www.ilga.gov/legislation/publicacts/95/PDF/095-0481.pdf20 ILCS 3855/1-10. http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=002038550HArt%2E+1&ActID=2934&ChapAct=20%26nbsp%3BILCS%26nbsp%3B3855%2F&ChapterID=5&ChapterName=EXECUTIVE+BRANCH&SectionID=75953&SeqStart=100000&SeqEnd=3700000&ActName=Illinois+Power+Agency+Act%2E 220 ILCS 5/8-104.. http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=002038550HArt%2E+1&ActID=2934&ChapAct=20%26nbsp%3BILCS%26nbsp%3B3855%2F&ChapterID=5&ChapterName=EXECUTIVE+BRANCH&SectionID=75953&SeqStart=100000&SeqEnd=3700000&ActName=Illinois+Power+Agency+Act%2ESB 1918. http://www.ilga.gov/legislation/publicacts/96/PDF/096-0033.pdf

CPS 03/10

CPS 03/10

CPS 03/10; BH 6/09

ACEEE estimated potential of aggressive EE programs to reduce consumer use of natural gas and peak electricity generated by natural gas.

ACEEE study. http://www.aceee.org/pubs/u051.htm

In 2009, the IL Legislature adopted several key amendments to EE law in the state. (SB 1918; Public Act 96-0033) SB 1918 included a new section on gas EE programs (220 ILCS 5/8-104). Among other things, this new section requires gas utilities to implement cost effective EE measures that meet specified annual incremental savings goals for measures implemented after May 31. 2011.

CPS 03/10

CPS 03/10

CPS 03/10


In 2009 through SB 1918, IL adopted efficiency targets for natural gas with a goal of improving efficiency by 7.1% by 2019, rising by an additional 1.5% annually thereafter. (See 220 ILCS 5/16-111.7)

SB 1918. http://www.ilga.gov/legislation/publicacts/96/PDF/096-0033.pdf 220 ILCS 5/16-111.7. http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=022000050HArt%2E+XVI&ActID=1277&ChapAct=220%26nbsp%3BILCS%26nbsp%3B5%2F&ChapterID=23&ChapterName=UTILITIES&SectionID=21314&SeqStart=35800000&SeqEnd=40900000&ActName=Public+Utilities+Act%2E

CPS 03/10; BH 6/09

CPS 03/10; BH 6/09

CPS 03/10

CK 8/10

CPS 03/10; BH 6/09

CPS 03/10

CK 8/10

CPS 03/10; BH 6/09

CPS 03/10

CPS 03/10; BH 6/09

Prior to 2009, some natural gas utilities offered EE programs. In 2009, the IL Legislature adopted several key amendments to EE law in the state. (SB 1918; Public Act 96-0033) SB 1918 includes a new section on gas EE programs (220 ILCS 5/8-104). This new section tracks the EE requirements for electric utilities that were adopted in 2007 under SB 1592. The new law requires gas and electric utilities to coordinate on the delivery of EE programs. 220 ILCS 5/8-104 requires gas utilities to implement all of the DR programs approved by the Commission, and 75% of the approved EE programs, and may outsource various aspects of implementation. The remaining 25% of approved EE measures must be implemented by the Dept. of Commerce and Economic Opportunity. If at the end of the third year, the utilities have not achieved their savings goals, the responsibility for implementing the urtility's EE measures will be transferred to an independent program administrator slected by the commission.

Note for 2010. Section 5/8-104(f) requires each gas utility to file EE plans bu October 1, 2010 and every 3 years thereafter.


CK 8/10 incorporating state reviewers comments

CPS 07/10; CPS 03/10; BH 6/09

Note for 2010. According to comments filed by MEEA on July 22, 2010, in January 2010, JCAR (Joint Committee on Administrative Rules) approved the final rules on PA 096-0778. Illinois Administrative Code, Title 71, Chapter I, Subchapter d, Part 600. http://www.ilga.gov/commission/jcar/admincode/071/07100600sections.html (Applies to Residential, Commercial, and State-Funded buildings)

CPS 03/10

CPS 03/10

CPS 07/10; CPS 03/10 BH 6/09

Note for 2010. According to comments filed by MEEA on July 22, 2010, on May 22nd, 2010 Governor Quinn signed SB 3429 (Public Act 096-0896) into law. PA 096-0896 directs the Capital Development Board, in consultation with the Department of Commerce and Economic Opportunity, to study building energy performance measures. Ten sample commercial buildings will be identified for the effort. The Board will present a report to the legislature by July 1, 2012. To see the Act, go to http://www.ilga.gov/legislation/publicacts/fulltext.asp?Name=096-0896.

CPS 03/10; BH 6/09

CPS 03/10Recommendation 3: Miscellaneous Policies

Natural Gas energy efficiency docket numbers on the ICC eDocket website are 09-0436 for North Shore Gas and 09-0437 for Peoples Gas. The exhibits submitted with last reconciliation filing include program descriptions as well as associated therm savings, dollars spent and customer participation. This is probably the best summary document availableCPS 07/10; Personal communication with Richard Zuraski, Illinois Commerce Commission, 5/14/10

Note for 2010. According to comments submitted by C Kulak on July 2, 2010, the name of the Energy and Recycling Bureau has been changed to Illinois Energy Office

http://www.icc.illinois.gov/e-docket/

CPS 03/10

EPA 5/10


ICC Webiste: http://www.icc.illinois.gov/e-docket/

CPS 03/10; BH 6/09

In 2009, the IL Legislature adopted changes to the Illinois Power Agency Act. (SB 1918; Public Act 96-0033. SB 1918 included a new section on gas EE programs (codified at 220 ILCS 5/8-104). Among other things, this new section provides that "It is the policy of this State that natural gas urtilities...are required to use cost effective energy efficiency to reduce direct and indirect costs to consumers. It serves the public interest to allow natural gas utilities to reccover costs" associated with EE measures. Section 5/8-104 provides that a gas utility providing commission-approved EE measures shall be permitted to recover associateds costs through an automatic adjustrment clause tariff. As discussed in 5.4.4 below, 220 ILCS 19-140 requires gas utilities to offer on-bill financing to their customers. That section also allows gas utilities to recover excess bad debt expenses through a rider.

CPS 03/10

See 4.1.1

CPS 03/10

SB 1918. http://www.ilga.gov/legislation/publicacts/96/PDF/096-0033.pdf220 ILCS 5/8-104. http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=002038550HArt%2E+1&ActID=2934&ChapAct=20%26nbsp%3BILCS%26nbsp%3B3855%2F&ChapterID=5&ChapterName=EXECUTIVE+BRANCH&SectionID=75953&SeqStart=100000&SeqEnd=3700000&ActName=Illinois+Power+Agency+Act%2E220 ILCS 5/19-140. http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=022000050HArt%2E+XVI&ActID=1277&ChapAct=220%26nbsp%3BILCS%26nbsp%3B5%2F&ChapterID=23&ChapterName=UTILITIES&SectionID=21314&SeqStart=35800000&SeqEnd=40900000&ActName=Public+Utilities+Act%2E

CPS 03/10

CPS 03/10


North Shore Gas and Peoples Gas and Coke have revenue-per-customer Volume Balancing Adjustment pilots to take place for four years; monthly adjustments began March 2008. Nicor Gas requested a "Conservation Partnership Plan" that would decouple utility revenues from retail sales, in April 2008 in its rate case proceeding in Docket No. 08-0363. The ICC issued its final order in Docket No 08-0363 on March 25, 2009. Discussion of Nicor's proposed rider to support its EE programs can be found at pages 149-159 or the Order. CK 8/10

incorporating state reviewer comments, CPS 05/10; BH 6/09

Nicor Gas Rate Case Docket 08-0363: http://www.icc.illinois.gov/docket/Documents.aspx?no=08-0363

CK 8/10 incorporating state reviewer comments

CPS 03 10

CPS 03/10; BH 6/09

CPS 03/10

CPS 03 10, CK 8/10 w/ reviewer comments

CPS 03/10

CPS 03/10State Fiscal PolicyDistributed Generation Policies

220 ILCS 5/16-111.7 (electric) and 19-140 (gas), which were enacted in 2009 as part of Senate Bill 1918 (Public Act 96-0033), allow utility customers to purchase cost effective EE with no initial up-front payment through on-bill finiancing. On September 14, 2009, the ICC convened the third in a series of workshops aimed at establishing on-bill financing options for customers who wish to purchase EE measures. Section 19-140 requires gas utilities to submit a proposed on-bill financing program for commission review within 60 days of the completion of he workshop process

220 ILCS 5/19-140. http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=022000050HArt%2E+XVI&ActID=1277&ChapAct=220%26nbsp%3BILCS%26nbsp%3B5%2F&ChapterID=23&ChapterName=UTILITIES&SectionID=21314&SeqStart=35800000&SeqEnd=40900000&ActName=Public+Utilities+Act%2ESB 1918 http://www.ilga.gov/legislation/publicacts/96/096-0033.htm;

MRD 03/2010 Confirmed with Mary Bilyeu 217-524-4375, [email protected]

Updated through 2007

Comment from state reviewer: Yes, Net Electricity Metering 220 ILCS 5/16-107.5 (i) All electricity providers shall begin to offer net metering no later than April 1, 2008. Public Act 95-420 http://www.ilga.gov/legislation/publicacts/95/095-0420.htm For Ameren, see http://www.ameren.com/sites/aiu/MyBusiness/IlChoice/Pages/NetMetering.aspx For ComEd, see https://www.comed.com/sites/customerservice/Pages/interconnection_netmetering.aspx


ACH 6/2010

ACH 6/2010

JR 3/2010

Citations

Contacted Tom Kennedy from the Energy Policy Division (217) 785-1414

Confirmed with Mary Bilyeu 217-524-4375, [email protected]

INDIANA through 12/31/09; see citations at end of documentElectric


1.1 Y-

1.2A

N/A

1.3

A


IRP rules require utilities to "demonstrate that the utility's resource plan utilizes, to the extent practical, all economical load management, conservation, nonconventional technology relying on renewable resources, cogeneration, and energy efficiency improvements as sources of new supply." Duke Energy proposed introducing its new Power Share program on an annual basis (versus Summer basisor pilot basis), which would make energy efficiency a high-priority fuel choice in Duke's operations in Indiana to reduce costs for customers. This is currently under consideration in Docket No. 43715. No decision was reached by the end of 2009.

1.2.1 EE is integrated into an active IRP, portfolio management, or other resource planning process Y-

IRP rules require utilities to consider a wide range of demand-side programs in their IRPs, and utilities must "demonstrate that the utility's resource plan utilizes, to the extent practical, all economical load management, conservation, nonconventional technology relying on renewable resources, cogeneration, and energy efficiency improvements as sources of new supply." See IAC 170.4.7



N

Indiana's IRP rules require some analysis of the impact of DSM on the transmission system. See 170 Indiana Administrative Code 4.7.6

1.4

Y

R

b

1.5



PJM conducts a regional planning process for 13 states and DC, including a portion of IN. PJM uses its Reliability Pricing Model (RPM) to procure capacity on a multi-year forward basis through an auction mechanism. In March 2008, several parties asked FERC to review the reasonableness of the RPM process. On June 30, 2008, PJM filed a responsive report. On September 19, 2008, FERC issued an Order addressing the report and supporting creation of a stakeholder process to address pending RPM issues. On December 12, 2008, PJM filed a report with FERC summarizing results of the stakeholder process, proposing changes to the RPM, including allowing energy efficiency to participate in the RPM in Docket Nos. ER05-1410-000, EL05-148-000. Also on December 12, 2008, PJM filed corresponding tariff revisions for effect on March 27, 2009 in Docket No. ER09-412-000. On February 9, 2009, PJM and certain parties filed a Settlement Agreement with FERC regarding PJM’s December 2008 RPM filings. On March 26, 2009, FERC issued an Order Accepting Tariff Provisions in Part, Rejecting Tariff Provisions in Part, Accepting Report, and Requiring Compliance Filings in the above-referenced dockets. The March 26th Order addresses the inclusion of EE in the RPM at paragraphs 120-139. FERC approved PJM's tariff provisions to enable EE resources to participate in the RPM market starting with the May 2009 Base Residual Auction that will procure capacity for the 2012-2013 Delivery Year. FERC rejected PJM's proposal to compensate EE resources that do not supply annual M&V plans. On October 30, 2009, FERC issued an Order in Docket Nos. ER05-1410 et. al. addressing compliance issues relating to March 26, 2009 Order in these dockets.



Y-

SIP: Indiana's set-aside account is 2% of its trading program budget. Eligible sources include end-use EE, RE and others. CAIR: The CAIR Rule, effective February of 2007, specifies a set-aside of 545 tons (0.5%) for EE/RE. Applications include supply side efficiency. 326-IAC 24-1-8(a)(3) According to the IN Office of Utility Consumer Counselor in 5/09, these set-asides are not being used, and are therefore rolled back into Indiana's general budget. Thus, EE set-asides are allowed, but in practice not being included.

2.1 N

2.2

R

2.3

Y-

R

2.4 N

2.5


The 2006 Hoosier Homegrown Energy Plan provides a policy roadmap for the state to achieve energy independence and job growth through a number of means including energy efficiency and conservation.


N

Demand Side Management Programs in Indiana were implemented on a voluntary basis until the Phase II Order in late 2009. If a utility elected to provide a DSM program, 170 Indiana Administrative Code 4-8-1 et seq. details the methods of evaluation. Neither the TRC or Societal Cost Test are used to evaluate voluntary DSM programs.


ACEEE estimated potential of aggressive EE programs to reduce consumer use of natural gas and peak electricity generated by natural gas. The Order initiating Phase II of Cause 42693 declines to require a statewide market potential study. Several Indiana utilities completed EE potential studies: Vectren South, Indianapolis Power and Light, Indiana Michigan Power, and Duke Energy. An 11-14-08 Technical Workshop in Cause 42693 discussed the possible need for a macro-level assessment of these potential studies, perhaps in conjunction with development of consistency requirements.


N

In Cause 4263, Phase II Order approved on December 9, 2009, the Commission found that the new Core DSM Programs initiated as a result of the Order "must be available to all customer classes and market segments…" Core programs are expected to start in 2010.


2.5.1 Quantitative MW and MWh savings goals have been established and are producing incremental investment. Y-

Cause 42693, Phase II Order approved on December 9, 2009 establishes an overall annual energy savings goal of 2% to be achieved by jurisdictional electric utilities in the State of Indiana within 10 years, with interim savings goals established in the Order to be achieve in years one through nine. Savings goals will be based on the average weather-normalized electric sales over a three year period.

2.5

R

b

N

2.6

R

Cause 42693 Order: http://www.in.gov/iurc/portal/iurc/Modules/IURC/CategorySearch/viewfile.aspx?contentid=0900b631800eeb6a





ACEEE issued its 2009 State Energy Efficiency Scorecard (Scorecard) in October 2009. Among other things, the Scorecard tracks annual EE program savings by each state in 2007 (the most recent year for which relevant data are available for all jurisdictions). According to the Scorecard, IN's total incremental electric savings (MWh) was 20,653 in 2007 which was 0.05% of savings as a percent of electricity sales and ranked IN 30th when compared with other states.


Y-

In Cause 4263, Phase II Order approved on December 9, 2009, the Commission directed the newly created DSM Coordination Committee to issue an Evaluation RFP for the selection and utilization of an evaluation administrator(s) to undertake Evaluation, Measurement & Verification of DSM program offerings.



2.6

Y-

a

2.7

R

R

2.8



See 2.6.1 above. M & V will be conducted by a third party in the future.




Y

In Cause 42693, Phase II Order approved on December 2, 2009, the Commission established a Hybrid Model whereby an Independent Third-Party Administrator will oversee the Core DSM Programs established by the Order and the utilities will oversee any additional programs needed to achieve the energy savings goals established in the Order.

2.7.2 Delivery is via: (a) utility administration; (b) third-party administration; or (c) government agency a, b

The Hybrid Model calls for Third Party Administration of Core DSM Programs, and utility administration of additional programs beyond the Core Programs.


Y

IRPs are submitted every two years. Under the Cause 42963, Phase II Order, DSM Programs are to be submitted every three years with annual supplemental updates. DSM programs are expected to go into place in 2010.

2.9

2.10 N

2.11Y

EO


3.1

Y

Y




Y/N

State developed code is used (1992 MEC with Indiana amendments). Code is reviewed as necessary, with the most recent update on May 21, 2003.

2.9.2 Building Energy Codes for commercial buildings are in place and regularly updated Y/N

Mandatory statewide state-developed code is used. Does not meet ASHRAE/IESNA 90.1-1989. Code is reviewed as necessary. The Commercial Building Code soon will be updated to the most recent ASRAE 90.1 standard.



HB 1280 enacted in 2008 required the Environmental Quality Service Council to study and make findings to the legislature concerning whether the state should require public buildings to attain particular energy and environmental design ratings. Executive Order 08-14, signed on June 24, 2008, requires all new state buildings and repair and renovation of existing buildings to be designed to achieve maximum energy efficiency on a life-cycle cost-effectiveness basis. The Executive Order requires the DOA to develop design standards for these buildings. In March, 2009 the city of Bloomington, IN passed Ordinance 09-04 establishing the Green Buildings Program, which requires all new construction and major renovations of city buildings be built to achieve LEED Silver certification.



Collaborative stakeholder workshops were underway in late 2008 as part of Cause 42693.

3.1



3.2N

N


4.1 R

A

R


Indianapolis Power & Light, Northern Indiana Public Service Company (NIPSCO)

75% of state access to Home Performance with ENERGY STAR?What proportion is ue to regulated utility program? (who is sponsor)


Y-

Currently cost recovery is approved on a case-by-case basis concurrent with voluntary DSM program plan approval. In practice, utilities have been proposing an Alternative Regulatory Plan (ARP) instead of filing under these rules, according to the IN Office of Utility Consumer Counselor in 5/09. In Cause 42693 Phase II Order, approved on December 2, 2009, the Commission declined to address cost-recovery in further detail, and instead relied upon the guidance provided in 170 IAC 4-9-4 through 170 IAC 4-8-7 which regulates voluntary DSM programs in Indiana. The Commission approved Indiana Michigan Power (IMP's) rate increase but did not approve the cost recovery rider for $2.5 million for EE. The decision in Cause 43306 allows I&M to pursue those programs and seek cost recovery once final programs are approved as the result of an ongoing collaborative among I&M and the parties. Duke Energy Indiana's proposed Save-a-Watt EE plan (on-going through the end of 2009 under Cause 43374) proposes the utility be compensated for successful implementation of EE programs on the basis of discounted "avoided costs," rather than on the basis of utility expenses on program implementation.

170 IAC 4-8-5 specifies that cost recovery mechanisms may be approved by the Commission on a case-by-case basis concurrent with DSM program plan approval.

A recent example of a DSM cost recovery rider can be found in the March 6, 2007 Order in Cause No. 40292, approving IP&L's request for an update of its DSM adjustment rider.

4.1

R

4.2 N

4.3

4.4 N

5.1

A

b


a, b


Y

IP&L's past DSM planning and funding period was 2004-2007. IP&L's 2006 DSM Annual Report can be found in Cause 42639. Under Cause 42693, Phase II Order, approved December 2, 2009, DSM programs that are approved by the Commission will be filed every three years, with annual updates.



ACEEE issued its 2009 State Energy Efficiency Scorecard (Scorecard) in October 2009. Among other things, the Scorecard tracks spending on EE by each state in 2007 (the most recent year for which relevant data are available for all juriusdictions). According to the Scorecard, IN total spending on EE in 2007 was slightly over $4 million, which was less than 0.05% of total utility revenues and ranked IN 34th in state spending.




Y-

170 IAC 4-8-6 allows the Commission to approve lost revenue recovery mechanisms proposed by utilities. The Commission recently approved Vectren's alternative regulatory plan in Cause No. 43427, which included requests for performance incentives and lost revenue recovery. Vectren's decoupling proposal was rejected, but teh comission did request that an alternative lost revenue proposal be submitted. Norhter Indiana Power and Light and Indianopolis Power & Light have both prpoposed lost margin recovery mechanisms and both are pending before the Comission.


5.2

A

5.3

N

N

5.4

see 5.3.2 above

see 5.3.2 above


Y-

170 IAC 4-8-7 allows the Commission to approve incentive mechanisms proposed by utilities. Vectren South and Northern Indiana Public Service Co. have requested performance incentives (Cause 43427; Cause 43618, Case in Chief filed 12/4/08). The Commission decided Cause No. 43427 on December 16, 2009, and granted the performance incentives proposed not by the utility, but by the Indiana Office of Consumer Counselor. In reaching it's decision, the Commission stated that a "failure to achieve a minimum performance level should result in a penalty. Likewise, exceptional performance should be rewarded, although not as highly as Vectren has proposed." Indianapolis Power and Light filed its petition on 12/29/08 suggesting that it would request performance incentives (Cause 43623) (which it subsequently did in early 2009). These three utilities have all requested the same performance incentives, where percent of goal achieved=percent of program costs awarded: 0-60%=0%; 61-70%=5%; 71-80%=10%; 81-90%=15%; 91-100%=20%; 101-110%=25%; 111-120%=30%. The other causes were pending through the end of 2009. The Duke Energy Indiana Save-a-Watt EE proposal (on-going under Cause 43374) may also establish performance incentives.


In Cause 43693 Phase II Order, approved December 2, 2009, the Comission stated that it had fully addressed "rate design issues associated with development of new DSM programs" previously, and would not do so in the Phase II Order. EE is therefore not mandated to be a consideration when designing retail rates, and is considered on a case by case basis.


I&M recently eliminated block rates in Cause No. 43306. NIPSCO has filed to eliminate block rates in it most recent rate case Cause No. 43526. In Cause 42693, Phase II Order, approved December 2, 2009, the Commission declined to take further action on smart grid and advanced rate design, but noted that all participants in workshops on the issue had comitted to "continue to phase out declining block rates, which encourage customers to use more energy, rather than less."



C101


5.4 Y-/P


7.1

A

7.2

R

7.3

7.4

Indiana does not have a statewide policy on standby rates

U


I&M Smart Meter Pilot Project (Cause No. 43607) is deploying AMI and piloting smart meters in South Bend, IN (approximately 10,000 meters). Duke (Cause 43501) is proposing AMI that would reach 800,000 customers in IN. This matter was pending before the comission through the end of 2009. See 5.3.2 above.



Y+

Indiana established interconnection standards in late 2005 under 170 IAC 4-4.3 for three levels of interconnection based on system size. Systems up to 2 MW are allowed to interconnect. Indiana requires "reasonable amounts" of insurance, does not limit larger systems from interconnecting, has standard fees, and requires an external disconnect. Utilities must use an application and agreement approved by the Indiana Utility Regulatory Commission (IURC).

170 IAC 4-4.3 can be accessed from here, http://www.dsireusa.org/documents/Incentives/IN04R.pdf


Y-

The Indiana Utility Regulatory Commission (IURC) adopted net-metering rules in 2004, 170 IAC 4-4.2. IOUs must offer net-metering to residential customers and K-12 schools. Wind, solar and hydroelectric projects up to 10 kW in size are allowed to net-meter. Net excess is credited to the customer's next bill.

170 IAC 4-4.2 can be accessed from here, http://www.dsireusa.org/documents/Incentives/IN05R.pdf

A statewide exit fee policy is in place N There is no statewide policy on exit fees in Indiana, however no

utilities in the state charge exit fees.

A statewide standby rate policy is in place N

PSI Energy Inc (Duke Energy) - backup service is provided at the same rate as distribution service plus facilities and meter charges that the utility must put in place for the customer. Distribution service has a high demand component and low energy charges. Billing demand is based on the maximum 30 minute demand of the month with no ratchet. Rate available at: http://www.duke-energy.com/rates/indiana/tariff.asp

7.4

U-

7.5 S

A

U

U

Citations

IURC, Order, Cause No. 43427, December 16, 2009: https://myweb.in.gov/IURC/eds/Modules/Ecms/Cases/Docketed_Cases/ViewDocument.aspx?DocID=0900b63180124f61IN Administrative Code, Electric IRP rules, 170 IAC 4-7-1 et seq. http://www.in.gov/legislative/iac/T01700/A00040.PDFIndiana Administrative Code, Article 4, Electric Utilities: http://www.in.gov/legislative/iac/T01700/A00040.PDF.PJM, Report Proposing Changes to RPM, Dcoket Nos. ER05-1410 et. al., December 12, 2008. http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13672172 PJM, Tariff filing to implement proposed changes to RPM, Docket Nos. ER05-1410 et. al., December 12, 2008. http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13672185FERC, Order Regarding PJM Report and Tariff Filings, Docket Nos. ER05-1410 et. al., March 26, 2009. http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13701842FERC, Order on PJM RPM Compliance Issues, Dcoket Nos ER05-1410 et. al., October 30, 2009. http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13765680Indiana Administrative Code, Title 326, Artice 24, SIP set-asides, CAIR, http://www.in.gov/legislative/iac/iac_title?iact=326; Indiana General Assembly, Hosier Homegrown Energy Plan, 2006: http://www.in.gov/oed/files/Energy_Strategic_Plan_1-2.pdfMartin Kushler, Dan York, and Patti Wittehttp, ACEEE, Potential Study, January 2005: http://aceee.org/pubs/u051full.pdf?CFID=4892327&CFTOKEN=35620476Order: http://www.in.gov/iurc/portal/iurc/Modules/IURC/CategorySearch/viewfile.aspx?contentid=0900b631800eeb6aIURC, Phase II Order, Cause 42630, December 9, 2009: https://myweb.in.gov/IURC/eds/Modules/Ecms/Cases/Docketed_Cases/ViewDocument.aspx?DocID=0900b63180123011IURC, Order, Cause 43046, December 1, 2006: http://www.in.gov/iurc/portal/iurc/Modules/Ecms/Cases/Docketed_Cases/ViewDocument.aspx?DocID=0900b631800befea; IURC, Order, Cause 43051, May 2007: http://www.in.gov/iurc/portal/iurc/Modules/Ecms/Cases/Docketed_Cases/ViewDocument.aspx?DocID=0900b631800d382d;IURC, Order, Cause 42767: Citizens Gas, August 29, 2007: http://www.in.gov/iurc/portal/iurc/Modules/Ecms/Cases/Docketed_Cases/ViewDocument.aspx?DocID=0900b631800dd673Building Codes Assistance Project / Online Code Environment & Advocacy Network, IN page: http://bcap-energy.org/node/67Executive Office, Executive Order 08-14, June 24, 2008: http://www.in.gov/gov/files/EO_08_14.pdf; Indiana General Assembly, House Enrolled Act No. 1280, 2008: http://www.in.gov/legislative/bills/2008/HE/HE1280.1.htmlCity of Bloomington, Ordinance 09-04, March 26, 2009: https://bloomington.in.gov/media/media/application/pdf/4909.pdfIURC, Petition, Cause No. 40292, March 6, 2007 : http://www.in.gov/iurc/portal/Modules/IURC/CategorySearch/viewfile.aspx?contentid=0900b631800ca1d5

Northern Indiana Pub Serv Co - Rate 834 - standby service is provided to customers that enter into a contract with the utility for a specific amount of standby capacity. A monthly demand based capacity charge is assessed on the contract demand, with actual usage being assessed at a high demand rate with low energy charges. Billing demand is based on the higher of the maximum 30 minute demand or 80% of the maximum demand from the previous 11 months. Rate available at: http://www.nipsco.com/About-us/Rates-Tariffs/Electric-Service-Tariff.aspx


Y+

Indiana's Integrated Resource Planning (IRP) rules are outlined in 170 IAC 4-7. The IRP process requires the assessment and incorporation of CHP where effective. IRPs must be submitted every two years. The IURC has Docket #43643 currently open to investigate possible IRP rule changes.

170 IAC 4-7 can be accessed from here, http://www.in.gov/legislative/iac/T01700/A00040.PDF?A docket search for #43643 can be done here, https://myweb.in.gov/IURC/eds/Guest.aspx?tabid=7PSI Energy Inc (Duke Energy)'s 2009 IRP is expected to be released under Docket #43643 in early 2010. A docket search can be conducted using the link below.

https://myweb.in.gov/IURC/eds/Guest.aspx?tabid=7

Northern Indiana Pub Serv Co's 2009 IRP was released in October 2009 and can be found under Docket #43643. The 2009 IRP discusses CHP briefly in terms of rates. A docket search for #43643 can be done by using the link below.


http://www.in.gov/legislative/iac/T01700/A00040.PDF?



IURC, Order, Cause 43180, December 1, 2006: http://www.in.gov/iurc/portal/iurc/Modules/ECMS/Cases/Docketed_Cases/ViewDocument.aspx?DocID=0900b631800beff2.

INDIANA through 12/31/09; see citations at end of documentNatural Gas Updated by / Date


N

CK 6/10

N

CK 6/10

BH/PB (intern) 2/09Recommendation 2: Make a strong, long-term commitment to implement cost-effective energy efficiency as a resource

CS 4/09CS 5/10

N

CK 6/10

BH/PB (intern) 2/09

Y-

BH/PB (intern) 2/09

N

CK 6/10

CK 6/10

The 2006 Hoosier Homegrown Energy Plan provides a policy roadmap for the state to achieve energy independence and job growth through a number of means including energy efficiency and conservation.

BH/PB (intern) 2/09, CK 6/10

ACEEE estimated potential of aggressive EE programs to reduce consumer use of natural gas and peak electricity generated by natural gas.

BH/PB (intern) 2/09, CK 6/10

ACEEE study: http://www.aceee.org/pubs/u051.htm

BH / PB (intern) 2/09, CK 6/10

http://www.aceee.org/pubs/u051.htm

BH / PB (intern) 2/09

CK 6/10

CK 6/10



CK 6/10

BH 3/09, CK 6/10

R

a/b

CK 6/10

Y

The Commission opened an investigation in Cause 42693 that will address the issue of statewide utility administration, but in its 4-23-08 Order, the Commission removed natural gas DSM from consideration under this Cause. An EE delivery structure has not been formerly established for natural gas. But, three Commission Orders (Causes 43046, 40351 and 42767) have approved EE programs which are to have DSM Oversight Boards and a Third Party Administrator who is selected by and reports to the Oversight Boards. In Cause 42693, Phase II Order approved on December 2, 2009, the Commission found that there was "preliminary sucess with collaborative oversignt boards that monitor the progress and effectiveness of natural gas conservation programs."

Three Commission Orders have approved EE programs which are to have DSM Oversight Boards and a Third Party Administrator who is selected by and reports to the Oversight Boards.

CK 6/10


CK 6/10


CK 6/10

BH 3/09, CK 6/10


Y

N

Personal communication with Rich Brunt, IN PUC, 5/25/10

KP 5/09, EPA 5/10

KP 5/09, EPA 5/10

KP 5/09, EPA 5/10

KP 5/09, EPA 5/10


R

Y-

Cause No. 43051 established an SBC of .0067/therm for NIPSCO in May 2007.

Electric: BH / PB (intern) 2/09, CK 6/10

c

N

CK 6/10

CK 6/10

N

R


Recommendation 5: Modify policies to align utility incentives with the delivery of cost-effective energy efficiency and modify ratemaking

Y-

The Indiana Utility Regulatory Commission approved an efficiency program and decoupling mechanism for Vectren on 12/1/06 in Commission Causes 43046 and 42943, and for Citizens Gas on 8/29/07 in Cause 42767. Natural gas decoupling is being considered in general in Cause 43180, and in an Order issued on 10/21/09 the Commission closed the investigation and expressed a general preference for straight-fixed variable rate design.


a

BH 5/09, CK 6/10

CK 6/10

CK 6/10



MRD 4/2010

ACH 6/2010




ACH 6/2010

JR 6/2010

Citations

IURC, Order, Cause No. 43427, December 16, 2009: https://myweb.in.gov/IURC/eds/Modules/Ecms/Cases/Docketed_Cases/ViewDocument.aspx?DocID=0900b63180124f61IN Administrative Code, Electric IRP rules, 170 IAC 4-7-1 et seq. http://www.in.gov/legislative/iac/T01700/A00040.PDF

PJM, Report Proposing Changes to RPM, Dcoket Nos. ER05-1410 et. al., December 12, 2008. http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13672172 PJM, Tariff filing to implement proposed changes to RPM, Docket Nos. ER05-1410 et. al., December 12, 2008. http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13672185FERC, Order Regarding PJM Report and Tariff Filings, Docket Nos. ER05-1410 et. al., March 26, 2009. http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13701842FERC, Order on PJM RPM Compliance Issues, Dcoket Nos ER05-1410 et. al., October 30, 2009. http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13765680Indiana Administrative Code, Title 326, Artice 24, SIP set-asides, CAIR, http://www.in.gov/legislative/iac/iac_title?iact=326; Indiana General Assembly, Hosier Homegrown Energy Plan, 2006: http://www.in.gov/oed/files/Energy_Strategic_Plan_1-2.pdfMartin Kushler, Dan York, and Patti Wittehttp, ACEEE, Potential Study, January 2005: http://aceee.org/pubs/u051full.pdf?CFID=4892327&CFTOKEN=35620476Order: http://www.in.gov/iurc/portal/iurc/Modules/IURC/CategorySearch/viewfile.aspx?contentid=0900b631800eeb6aIURC, Phase II Order, Cause 42630, December 9, 2009: https://myweb.in.gov/IURC/eds/Modules/Ecms/Cases/Docketed_Cases/ViewDocument.aspx?DocID=0900b63180123011IURC, Order, Cause 43046, December 1, 2006: http://www.in.gov/iurc/portal/iurc/Modules/Ecms/Cases/Docketed_Cases/ViewDocument.aspx?DocID=0900b631800befea; IURC, Order, Cause 43051, May 2007: http://www.in.gov/iurc/portal/iurc/Modules/Ecms/Cases/Docketed_Cases/ViewDocument.aspx?DocID=0900b631800d382d;IURC, Order, Cause 42767: Citizens Gas, August 29, 2007: http://www.in.gov/iurc/portal/iurc/Modules/Ecms/Cases/Docketed_Cases/ViewDocument.aspx?DocID=0900b631800dd673Building Codes Assistance Project / Online Code Environment & Advocacy Network, IN page: http://bcap-energy.org/node/67

Indiana General Assembly, House Enrolled Act No. 1280, 2008: http://www.in.gov/legislative/bills/2008/HE/HE1280.1.htmlCity of Bloomington, Ordinance 09-04, March 26, 2009: https://bloomington.in.gov/media/media/application/pdf/4909.pdfIURC, Petition, Cause No. 40292, March 6, 2007 : http://www.in.gov/iurc/portal/Modules/IURC/CategorySearch/viewfile.aspx?contentid=0900b631800ca1d5

IURC, Order, Cause 43180, December 1, 2006: http://www.in.gov/iurc/portal/iurc/Modules/ECMS/Cases/Docketed_Cases/ViewDocument.aspx?DocID=0900b631800beff2.

Update notes for 2010 activityNotes from RS: IN had docket about EE issues. In early 2010 there was an order about an EE standard. Email to RS from Susan

Cause No. 43715 decision reached on 6/23/10

NIPSCO has issued an RFP to perform a Market Potential Study . No evidence it was completed in 2009.

A Technical Workshop in Cause 42693 in early 2009 will consider this issue.

Code is currently being reviewed by the IN Fire Prevention and Building Safety Commission. GE-MEEA: Indiana is in process of upgrading to IECC 2009, and

In 3/09, the Commercial building code was in the process of being updated, but was not updated by the time of the current update. GE-MEEA: The recently-adopted Indiana Energy Conservation Code, 2010 Edition consists of

HB 1380 is in process in 2009; proposes EE requirements for state buildings

These workshops were continuing to occur in early 2009.

Cause 43373 has a Final Order issued 2/10/10.

Cause 43374 and 43623 decided on 2/10/10. 43618 pending.

Confirmed with David Johnston [email protected] (317) 232-4234

Contacted Brad Borum at the Indiana Utility Regulatory Commission (317) 232-2304. See, [email protected]. The IURC has Docket #43643 currently open (opened in early 2009) to investigate possible IRP rule changes. See, https://myweb.in.gov/IURC/eds/Mo

KANSAS through 12/31/09; see citations at end of documentElectric


1.1 Y-

R

1.2

N

N/A

1.3 N

1.4

1.4.1 EE is a biddable commodity N

1.5 N








2.1


N

R

2.2

R

2.3


Y-

2.3.1 Potential for cost-effective EE has been established through a potential study Y

2.3

N

R

2.4 N

2.5

N






N

R, Gov



2.5

2.6

R2.6.1.1 M&V is adequately funded

Y

N

N


Y-






2.7

R

a

2.8


2.9

N

2.10 N


Y


N



Y/Y


C59

Brenda: EPA called this a Y/N in grid updated through 2008

2.11

EO Recommendation 3: Miscellaneous Policies

3.1

Y

R

Y




3.2

N

N



Y






B76


B78


4.1


R

a


4.2 N

4.3

4.4

Y-






5.1

R

5.2

S, R


Y-



Y-

5.3

R

N

5.4


R5.4.2 Usage sensitive rates in place


R

N

State Fiscal Policy


N


Y-

Y-/P


Distributed Generation Policies

7.1

R

U -

7.2


7.3A statewide exit fee policy is in place

7.4



Y

N

N

N

7.4

U-

U-

7.5

U

U

Citations

ACEEE, 2009 State Energy Efficiency Scorecard, October 2009, http://aceee.org/pubs/e097.pdf?CFID=571117&CFTOKEN=50109276.Building Codes Assistance Project / Online Code Environment & Advocacy Network, KS page: http://bcap-ocean.org/state-country/kansasCity of Greensburg, Kansas, Resolution NO. 2007-17, December 17, 2007: http://www.dsireusa.org/documents/Incentives/KS06R.pdfDSIRE, Kansas, Incentives/policies for renewables and efficiency, Last reviewed 2/23/10: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=KS06R&re=1&ee=1Executive Directive, No. 07-373, January 1, 2007: http://da.ks.gov/ps/subject/arc/memos/ExeDir%2007%20373.pdfKansas City Power and Light, Smart Grid Demonstration Project, 2009: http://www.energy.gov/news2009/documents2009/SG_Demo_Project_List_11.24.09.pdfKansas Statutes Annotated, Chapter 66, Article 117, July 1, 1997: http://www.kslegislature.org/legsrv-statutes/getStatuteInfo.doKSPUC, Energy Efficiency Codes Working Group, May 2009: http://www.kcc.state.ks.us/energy/codes/index.htm


N

http://www.westarenergy.com/corp_com/contentmgt.nsf/0f609ad5512bd4ee8625709d006f984e/04b9d9730ad6b75d86257577005ab084?OpenDocument

http://www.kcpl.com/cep/about_approach.html



KSPUC, Final Order, Docket 07-GIMX-247-GIV, October 10, 2007: http://www.kcc.state.ks.us/scan/200710/20071010110245.pdfKSPUC, Final Order, Docket 08-GIMX-441-GIV, November 14, 2008: http://www.kcc.state.ks.us/scan/200811/20081114142730.pdfKSPUC, Order, Docket 07-GIME-116-GIV, August 8, 2007: http://kcc.ks.gov/scan/200708/20070808133549.pdfKSPUC, Order, Docket 08-GIMX-442-GIV, April 13, 2009: http://www.kcc.state.ks.us/scan/200904/20090413145247.pdfKSPUC, Order, Docket 08-GIMX-442-GIV, June 2, 2008: http://www.kcc.state.ks.us/scan/200807/20080702144256.pdf KSPUC, Order, Docket 09-GIME-360-GIE, October 22, 2008: http://www.kcc.state.ks.us/scan/200810/20081022141307.pdf KSPUC, Order, Docket 09-GIME-360-GIE, December 14, 2009: http://www.kcc.state.ks.us/scan/200912/20091214154644.pdfKSPUC, Order, Docket 09-GIME-360-GIE, July 27, 2009: http://www.kcc.state.ks.us/scan/200907/20090727082750.pdfKSPUC, Order, Docket 10-GIMX-013-GIV, July 8, 2009: http://kcc.ks.gov/scan/200907/20090708163857.pdfSummit Blue Consulting, Kansas Energy Council Energy Efficiency Potential Study, 2008, http://www.summitblue.com/pages/areas-of-expertise/resource-potential/show?id=58

KANSAS through 12/31/09; see citations at end of documentElectric Natural Gas


Y-

R

N

N

N

N


In a 6/2/08 Order in Docket No. 08-GIMX-442-GIV, the Commission "indicated its belief that a balanced approach between use of traditional and alternative energy sources … must be utilized in meeting the state's energy needs. The Commission views energy efficiency as an additional resource to be considered in this balanced approach." In an Order entered on April 13, 2009 in the same docket, the Commission stated that "energy effiency is considered a resource, along with traditional supply side resources." The Commission goes on to say that energy efficiency "is like a resource --an alternative to supply-side electricity generating assets. It is the Commission's intent to make energy efficiency as much like a supply-side power plant as possible in the sense that utilizing energy efficiency should reliably lower energy demands and peak demands."

The Commission opened Docket 09-GIME-360-GIE in 10/08 to consider the PURPA standards related to IRP. In an Order entered on July 27, 2009 in the same docket, the Commission declared that while it had "considered" PURPA and the IRP requirements, it declined to adopt the PURPA standards and "impose additional regulatory burdens on Kansas utlities."

N

R

R

An efficiency commitment is not in statute. However, the Commission has stated its support for EE in a 6/2/08 Order in Docket No. 08-GIMX-442-GIV; the Commission "indicated its belief that a balanced approach between use of traditional and alternative energy sources … must be utilized in meeting the state's energy needs. The Commission views energy efficiency as an additional resource to be considered in this balanced approach." In an Order entered on April 13, 2009 in the same docket, the Commission stated that "energy effiency is considered a resource, along with traditional supply side resources." In addition, the Governor in 2007 asked energy producers to undertake efforts that would reduce energy use by 5% by 2010 and 10% by 2020.

In a 6/2/08 Order in Docket No. 08-GIMX-442-GIV, the Commission ruled that utilities should submit the Participant, RIM, PAC, and TRC benefit-cost tests with DSM or DR program applications. The Commission may also require the Societal Test, if appropriate. In using the tests, the Commission will place emphasis on the TRC and the RIM tests, but will not require that results for both tests be equal to or greater than one in order for a program to be implemented. Education programs are not subject to benefit-cost analysis. Details related to the benefit-cost tests were being discussed in a collaborative in Docket 08-GIMX-442-GIV. A staff report issued on 12/31/08 suggests that the Commission may wish to provide greater guidance to utilities on how the RIM and TRC tests will be emphasized. In an 11/14/08 Order, the Commission noted that all five benefit-cost tests must be submitted with program plans. In an Order enetered in the same docket on April 13, 2009, the Commission declined to "adopt a bright-line rule that if benefit-cost tests are passed, a program will be approved." The Commision went on to say that "the Commission is unlikely to deny a program that meets all tests."

Y-

The Kansas Energy Council commissioned a potential study that was completed on 8/11/08 by Summit Blue Consulting. Y

N

R

N

Kansas has an RPS, but efficiency cannot be used to meet it.N

Programs are not required by Commission to reach all customer classes. In a 6/2/08 Order in Docket No. 08-GIMX-442-GIV, the Commission stated that "some type of energy efficiency programs should be available to all customer classes, including low income customers." In an April 13, 2009 decision in the same docket, the Commission reiterated it's belief that "energy efficiency programs should be made available to all customer classes. The reality, however, is that large industrial customers and large commercial customers do not need as much assistance as residential and small commercial customers to take advantage of lower-cost alternatives to supply-side power."

The Commission works collaboratively with utilities and has not mandated EE programs. Commission staff have recommended that the Commission address this issue in a Staff Report. In a Final Order on October 10, 2007 in Docket No. 07-GIMX-247-GIV, the Commission evaluated the Staff Report and declined to adopt an Energy Efficiency Program, including MW or MWh savings goals. The Governor announced in a 2007 State of the State address that she had asked energy producers to undertake efforts to reduce consumption 5% by 2010 and 10% by 2020.

N

ACEEE issued its 2009 State Energy Efficiency Scorecard (Scorecard) in October 2009. Among other things, the Scorecard tracks annual EE program savings by each state in 2007 (the most recent year for which relevant data are available for all jurisdictions). According to the Scorecard, KS's total incremental electric savings (MWh) was 34,726 in 2007 which was 0.09% of savings as a percent of electricity sales and ranked KS 24th when compared with other states.

R

Y

N

N

An Order in Docket No. 08-GIMX-442-GIV on 6/2/08 states that EE program proposals must include an EM&V plan for Commission review and approval. In an Order in the same docket on April 13, 2009, the Commission determined that EM&V should not generally exceed 5% of the total energy efficiency program. The Comission opened a new docket, Docket No. 10-GIMX-013-GIV in an order on July 8, 2009, in order to determine the process to select a third party to conduct EM &V. This docket is open and deliberations on a third party evaluator are ongoing.

Y-

In an Order in Docket 08-GIMX-442-GIV on June 2, 2008, the Commission stated that a "budget benchmark not exceeding 5% of project costs is reasonable." In an Order in the same docket on April 13, 2009, the Commission determined that EM&V should not generally exceed 5% of the total energy efficiency program.

The Comission opened a new docket, Docket No. 10-GIMX-013-GIV in an order on August 7, 2009, in order to determine the process to select a third party to conduct EM &V. This docket is open and deliberations on a third party evaluator are ongoing.


R

a

N

As stated in the following dockets EE is not required by statute or order, but is to be done voluntarily by utlities. If the utilities elect to provide an energy efficiency program, the Commission will regulate it. Therefore, utlitilies are the EE delivery structure if EE is voluntarily pursued by utilities. In an order filed in Docket No. 08-GIMX-441-GIV on 11/14/08, the Commission stated that it would not require a third-party administrator, but instead would rely on utilities to provide EE programs. In an earlier order filed in Docket 07-GIMX-247-GIV on 10/10/07, the Commission also declined to create an efficiency program administrator, but encouraged municiple utilities and co-ops to voluntarily work together to create such administrators.

Y

The Commission opened docket 09-GIME-360-GIE in 10/08 to consider the PURPA standards related to IRP. In an Order entered on July 27, 2009 in the same docket, the Commission declared that while it had "considered" PURPA and the IRP requirements, it declined to adopt the PURPA standards and "impose additional regulatory burdens on Kansas utlities."

The Energy Efficiency Building Codes Working Group was established in May 2009 in order to ensure compliance with the federal energy code requirement for states receiving Recovery Act funds. They have adopted a preliminary plan for 90% of new and renovated residential and commercial structures to meet the 2009 IECC standards by 2017. This plan has not yet gone into effect.

2006 IECC standards are mandatory statewide. The last update was in 2007. The Energy Efficiency Building Codes Working Group was established in May 2009 in order to ensure compliance with the federal energy code requirement for states receiving Recovery Act funds. They have adopted a preliminary plan for 90% of new and renovated residential and commercial structures to meet the 2009 IECC standards by 2017. This plan has not yet gone into effect.


N

Y


Executive Directive No. 07-373 issued in January 2007 directs state agencies to consider and/or implement a range of efficiency improvements. Additionally, the city of Greensburg passed Resolution No. 2007-17 on December 17, 2007 requiring all newly constructed or renovated municipally owned facilities larger than 4,000 square feet to be designed to conform to the platinum rating of the US Green Building Council's LEED Green Building Rating System.

In a 6/2/08 Order in Docket 08-GIMX-442-GIV, the Commission stated that "programs should be implemented to educate consumers regarding the actual cost of providing energy to their homes and businesses." .) Kansas City Power and Light and Westar Energy are the only two regulated state utilities which offered DSM programs in 2009. Below are links to partial listings of each company’s DSM portfolios: KCPL: http://www.kcplsave.com/default.html Westar: http://www.westarenergy.com/corp_com/contentmgt.nsf/publishedpages/energy%20efficiency%20home. See the following dockets: 09-WSEE-636-TAR : Westar "WattSaver" program; 09-WSEE-738-MIS: Westar "Building Operator Certification" program

As part of Docket 08-GIMX-442-GIV, collaborative processes were in place in 2008 to deal with EM&V processes and benefit-cost analysis. The Kansas Energy Council, incorporating stakeholders, produces an annual energy plan for Kansas that includes EE.

Black Hills Energy (formerly Aquila Networks), Kansas City Power & Light

Efficiency Kansas, a whole home program equavalent to Home Performance with Energy Star in many ways, was launched by

the Kansas Energy Office on November 18, 2009. It is availiable to all residents of Kansas through partner banks.

R

a

In the past, costs were recovered in rates on a case-by-case basis. In a Staff Report and Recommendation in Docket 07-GIMX-247-GIV, Commission staff recommended that the Commission investigate all cost recovery options. The report also recommended the use of an interim rider to recover program costs while cost recovery options were being investigated. In an Order on 11/14/08 in Docket 08-GIMX-441-GIV, the Commission stated that it believed a rider mechanism would be the best method for cost recovery; proposals for riders will be submitted with EE program approvals. EE programs are not required by the Commission. See 1.1 regarding EE programs.

Y-

The Commission works collaboratively with utilities and has not mandated EE programs or spending on EE programs. In a Final Order on October 10, 2007 in Docket No. 07-GIMX-247-GIV, the Commission evaluated the Staff Report and declined to adopt an Energy Efficiency Program.

ACEEE issued its 2009 State Energy Efficiency Scorecard (Scorecard) in October 2009. Among other things, the Scorecard tracks spending on EE by each state in 2007 (the most recent year for which relevant data are available for all juriusdictions). According to the Scorecard, KS total spending on EE in 2007 was slightly over $6.7 million, which was 0.2% of total utility revenues and ranked KS 30th in state spending.

Recommendation 5: Modify policies to align utility incentives with the delivery of cost-effective energy efficiency and modify ratemaking practices to promote energy

R

Y-

S,R

In its Staff Report and Recommendation in Docket 07-GIMX-247-GIV, Commission staff recommended that the Commission address this issue. In an 11/14/08 Order in Docket 08-GIMX-441-GIV, the Commission stated that it will consider decoupling proposals made in connection with EE programs on a case-by-case basis. The Commission will require any decoupling proposal to include annual caps. The Commission opened docket no. 09-GIME-360-GIE in 10/08 to consider the PURPA standards related to incentives. In an Order in the same docket dated December 14, 2009, the Commission declined to adopt the PURPA standards, and instead encouraged continued "collaborative discussions...to develop policy and regulatory framework involving dynamic rate designs and possibly related Smart Grid technologies..." as well as "consideration of such issues as energy pricing and usage information for customers, rate recovery (including decoupling) and stranded assets." No docket number was assigned.

Y-

Statute 66-117 allows the commission to grant from 0.5-2% increased Return on Equity for utility investments on Renewable Energy or Energy Efficiency. In an 11/14/08 Order, the Commission decided to allow for incentives, but limit them to specific EE programs, namely: 1) proposals that target low and fixed income customers, and renters, and 2) proposals that target new and existing residential housing and demonstrate a potential for long-term energy savings using a comprehensive whole house concept. The Commission stated that it favors the shared benefit approach to performance incentives. The Commission opened docket no. 09-GIME-360-GIE in 10/08 to consider the PURPA standards related to incentives. In an Order in the same docket dated December 14, 2009, the Commission declined to adopt the PURPA standards, and instead encouraged continued "collaborative discussions...to develop policy and regulatory framework involving dynamic rate designs and possibly related Smart Grid technologies..." as well as "consideration of such issues as energy pricing and usage information for customers, rate recovery (including decoupling) and stranded assets." No docket number was assigned.

N

R

State Fiscal Policy

In its Staff Report and Recommendation in Docket 07-GIMX-247-GIV, Commission staff have recommended that the Commission address this issue. The Commisssion found in an Order dated October 10, 2007 in the above docket, that it had the authority to consider cost-reocvery and "environmental externalities". It also concluded that it did not have the jurisdiction to regualte the retail rates of municiple and small cooperatives. The Commission declined to require utilities implement energy efficiency programs, but they may do so voluntarily.

Several utilities offer time sensitive rates, including KCPL, Mid-Kansas Electric Co., Midwest, and Pioneer Electric Cooperative. The Commission has approved several DR programs for Westar. In a 6/2/08 Order in Docket 08-GIMX-442-GIV, the Commission "encourages utilities to continue to propose dynamic procing programs as well as other rate design schemes that provide the proper incentives to utilize energy efficiently," including time-of-use, critical peak, and seasonal price rates.

In an 8/8/07 Order in Docket 07-GIME-116-GIV, the Commission stated that it "strongly encouraged" utilities to develop and implement pilot programs regarding AMI, but decided against mandating such action. The Commission opened a docket in 10/08 to consider the PURPA standards related to smart grid. The Commission opened docket no. 09-GIME-360-GIE in 10/08 to consider the PURPA standards related to incentives. In an Order in the same docket dated December 14, 2009, the Commission declined to adopt the PURPA standards, and instead encouraged continued "collaborative discussions...to develop policy and regulatory framework involving dynamic rate designs and possibly related Smart Grid technologies..." Kansas City Power and Light Company will take part in a Smart Grid Demonstration Project with US DOE.


Kansas does not have a statewide net-metering policy in place.

Kansas does not have a statewide policy on standby rates

In May 2009 Kansas enacted legislation (HB 2369) establishing general interconnection standards. The standards apply to net-metered systems with a rated capacity of up to 25 kW for residential customers and up to 200 kW for non-residential. The standards apply to systems that generate electricity using solar, wind, methane, biomass or hydro resources, and to fuel cells using hydrogen produced by an eligible renewable technology. a facility must meet all applicable safety, performance, interconnection and reliability standards established by the National Electrical Code, the National Electrical Safety Code, and the Institute of Electrical and Electronics Engineers, Underwriters Laboratories, the Federal Energy Regulatory Commission, and any local governing authorities. The utility must provide a bi-directional meter to the customer at no additional cost to the customer. The utility may not require a customer-generator to purchase additional liability insurance if all safety and interconnection requirements are met. Utilities are authorized to require interconnected customers to install an external disconnect switch. The Kansas Corporation Commission will establish rules to implement net metering and interconnection within 12 months of the effective date of HB 2369.

http://www.kcc.state.ks.us/scan/200708/20070807082551.pdfWestar Energy Inc, has interconnection standards for systems up to 3,000 kVA additional requirements may apply to larger systems, the standards can be accessed here, http://www.westarenergy.com/corp_com/contentmgt.nsf/publishedpages/our%20energy%20home#. Systems must pay for all charges incurred by the utility for interconnection. The utility must approve/reject a complete application within 60 days. An external disconnect is required

There is no statewide policy on exit fees in Kansas, however no utilities in the state charge exit fees.

http://www.kcc.state.ks.us/scan/200708/20070807082551.pdf

Citations

ACEEE, 2009 State Energy Efficiency Scorecard, October 2009, http://aceee.org/pubs/e097.pdf?CFID=571117&CFTOKEN=50109276.Building Codes Assistance Project / Online Code Environment & Advocacy Network, KS page: http://bcap-ocean.org/state-country/kansasCity of Greensburg, Kansas, Resolution NO. 2007-17, December 17, 2007: http://www.dsireusa.org/documents/Incentives/KS06R.pdfDSIRE, Kansas, Incentives/policies for renewables and efficiency, Last reviewed 2/23/10: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=KS06R&re=1&ee=1Executive Directive, No. 07-373, January 1, 2007: http://da.ks.gov/ps/subject/arc/memos/ExeDir%2007%20373.pdfKansas City Power and Light, Smart Grid Demonstration Project, 2009: http://www.energy.gov/news2009/documents2009/SG_Demo_Project_List_11.24.09.pdfKansas Statutes Annotated, Chapter 66, Article 117, July 1, 1997: http://www.kslegislature.org/legsrv-statutes/getStatuteInfo.doKSPUC, Energy Efficiency Codes Working Group, May 2009: http://www.kcc.state.ks.us/energy/codes/index.htm

Kansas City Power & Light Co - Schedule SGC - standby service is provided through a combination of a standard bill plus standby charges. The standard bill has both a facilities demand and billing demand charge. Both demands are based on the maximum 30 minute demand of the month, the facilities demand charge has a 12 month ratchet whereas the billing demand charge does not. The standby energy charges are based on real-time energy prices plus a reactive power charge and a set interconnection charge each month. Rate available at: http://www.kcpl.com/about/ratesrules.htmlWestar Energy Inc - Standby Service Rider - standby service is offered to customers who contract with the utility for a specific amount of standby demand and maintenance energy. The Electric Service Agreement determines the rate schedule under which the customer will be charged. Typcial billing demands are based on the higher of the maximum 15 minute demand of the month or 85% of the maximum demand from the previous period of June-Sept. Rate available at: http://www.westarenergy.com/corp_com/contentmgt.nsf/tariffnorth?openview

IRP's are not required by regulation or statute, but there are two utilities that must share their plans with the Kansas Corporation Commission (KCC) on an individual case basis - Westar Energy and Kansas City Power and Light. The Kansas Energy Council - a stakeholder advisory group, produces an annual energy plan for Kansas. Also, the KCC opened a docket in October 2008 to consider IRP standards pursuant to PURPA (see the link below). http://kcc.ks.gov/scan/200907/20090727082750.pdf

Westar Energy must meet annually with the KCC staff to brief them on resource planning. The meetings are informal and are not open to the public. Westar Energy released a comprehensive energy plan in February 2008.

http://www.westarenergy.com/corp_com/contentmgt.nsf/0f609ad5512bd4ee8625709d006f984e/04b9d9730ad6b75d86257577005ab084?OpenDocumentKansas City Power & Light Co is currently working on a resource plan for 2010-on. Information on the company's current energy plan can be found below.


http://kcc.ks.gov/scan/200907/20090727082750.pdf



KSPUC, Final Order, Docket 07-GIMX-247-GIV, October 10, 2007: http://www.kcc.state.ks.us/scan/200710/20071010110245.pdfKSPUC, Final Order, Docket 08-GIMX-441-GIV, November 14, 2008: http://www.kcc.state.ks.us/scan/200811/20081114142730.pdfKSPUC, Order, Docket 07-GIME-116-GIV, August 8, 2007: http://kcc.ks.gov/scan/200708/20070808133549.pdfKSPUC, Order, Docket 08-GIMX-442-GIV, April 13, 2009: http://www.kcc.state.ks.us/scan/200904/20090413145247.pdfKSPUC, Order, Docket 08-GIMX-442-GIV, June 2, 2008: http://www.kcc.state.ks.us/scan/200807/20080702144256.pdf KSPUC, Order, Docket 09-GIME-360-GIE, October 22, 2008: http://www.kcc.state.ks.us/scan/200810/20081022141307.pdf KSPUC, Order, Docket 09-GIME-360-GIE, December 14, 2009: http://www.kcc.state.ks.us/scan/200912/20091214154644.pdfKSPUC, Order, Docket 09-GIME-360-GIE, July 27, 2009: http://www.kcc.state.ks.us/scan/200907/20090727082750.pdfKSPUC, Order, Docket 10-GIMX-013-GIV, July 8, 2009: http://kcc.ks.gov/scan/200907/20090708163857.pdfSummit Blue Consulting, Kansas Energy Council Energy Efficiency Potential Study, 2008, http://www.summitblue.com/pages/areas-of-expertise/resource-potential/show?id=58

KANSAS through 12/31/09; see citations at end of documentNatural Gas Updated by / Date


BH 6/09, CK 5/10

CK 5/10

CK 5/10

CK 5/10


In a 6/2/08 Order in Docket No. 08-GIMX-442-GIV, the Commission "indicated its belief that a balanced approach between use of traditional and alternative energy sources … must be utilized in meeting the state's energy needs. The Commission views energy efficiency as an additional resource to be considered in this balanced approach." In an Order entered on April 13, 2009 in the same docket, the Commission stated that "energy effiency is considered a resource, along with traditional supply side resources." The Commission goes on to say that energy efficiency "is like a resource --an alternative to supply-side electricity generating assets. It is the Commission's intent to make energy efficiency as much like a supply-side power plant as possible in the sense that utilizing energy efficiency should reliably lower energy demands and peak demands."

BH 7/09, CK 5/10

BH 6/09, CK 5/10

BH 6/09, CK 5/10

An efficiency commitment is not in statute. However, the Commission has stated its support for EE in a 6/2/08 Order in Docket No. 08-GIMX-442-GIV; the Commission "indicated its belief that a balanced approach between use of traditional and alternative energy sources … must be utilized in meeting the state's energy needs. The Commission views energy efficiency as an additional resource to be considered in this balanced approach." In an Order entered on April 13, 2009 in the same docket, the Commission stated that "energy effiency is considered a resource, along with traditional supply side resources." In addition, the Governor in 2007 asked energy producers to undertake efforts that would reduce energy use by 5% by 2010 and 10% by 2020.

In a 6/2/08 Order in Docket No. 08-GIMX-442-GIV, the Commission ruled that utilities should submit the Participant, RIM, PAC, and TRC benefit-cost tests with DSM or DR program applications. The Commission may also require the Societal Test, if appropriate. In using the tests, the Commission will place emphasis on the TRC and the RIM tests, but will not require that results for both tests be equal to or greater than one in order for a program to be implemented. Education programs are not subject to benefit-cost analysis. Details related to the benefit-cost tests were being discussed in a collaborative in Docket 08-GIMX-442-GIV. A staff report issued on 12/31/08 suggests that the Commission may wish to provide greater guidance to utilities on how the RIM and TRC tests will be emphasized. In an 11/14/08 Order, the Commission noted that all five benefit-cost tests must be submitted with program plans. In an Order enetered in the same docket on April 13, 2009, the Commission declined to "adopt a bright-line rule that if benefit-cost tests are passed, a program will be approved." The Commision went on to say that "the Commission is unlikely to deny a program that meets all tests."

The Kansas Energy Council commissioned a potential study that was completed on 8/11/08 by Summit Blue Consulting.

BH 6/09, CK 5/10

BH 7/09, CK 5/10

Kansas has an RPS, but efficiency cannot be used to meet it.

BH 7/09, CK 5/10

CK 5/10

Programs are not required by Commission to reach all customer classes. In a 6/2/08 Order, the Commission stated that "some type of energy efficiency programs should be available to all customer classes, including low income customers." In an April 13, 2009 decision in the same docket, the Commission reiterated it's belief that "energy efficiency programs should be made available to all customer classes. The reality, however, is that large industrial customers and large commercial customers do not need as much assistance as residential and small commercial customers to take advantage of lower-cost alternatives to supply-side power."

CK 6/10, BH 6/09

CK 6/10

CK 6/10, BH 7/09

An Order in Docket No. 08-GIMX-442-GIV on 6/2/08 states that EE program proposals must include an EM&V plan for Commission review and approval. In an Order in the same docket on April 13, 2009, the Commission determined that EM&V should not generally exceed 5% of the total energy efficiency program. The Comission opened a new docket, Docket No. 10-GIMX-013-GIV in an order on July 8, 2009, in order to determine the process to select a third party to conduct EM &V. This docket is open and deliberations on a third party evaluator are ongoing.

In an Order in Docket 08-GIMX-442-GIV on June 2, 2008, the Commission stated that a "budget benchmark not exceeding 5% of project costs is reasonable." In an Order in the same docket on April 13, 2009, the Commission determined that EM&V should not generally exceed 5% of the total energy efficiency program.



CK 5/10, BH 7/09

CK 6/10

CK 5/10

CK 5/10

CK 5/10

As stated in the following dockets EE is not required by statute or order, but is to be done voluntarily by utlities. If the utilities elect to provide an energy efficiency program, the Commission will regulate it. Therefore, utlitilies are the EE delivery structure if EE is voluntarily pursued by utilities. In an order filed in Docket No. 08-GIMX-441-GIV on 11/14/08, the Commission stated that it would not require a third-party administrator, but instead would rely on utilities to provide EE programs. In an earlier order filed in Docket 07-GIMX-247-GIV on 10/10/07, the Commission also declined to create an efficiency program administrator, but encouraged municiple utilities and co-ops to voluntarily work together to create such administrators.

The Commission opened docket 09-GIME-360-GIE in 10/08 to consider the PURPA standards related to IRP. In an Order entered on July 27, 2009 in the same docket, the Commission declared that while it had "considered" PURPA and the IRP requirements, it declined to adopt the PURPA standards and "impose additional regulatory burdens on Kansas utlities."

CK 5/10Recommendation 3: Miscellaneous Policies

BH 6/09

EPA 5/10


Personal communication with Michael Deupruee, Kansas Corporation Commission, 5/10/10; BH 6/09, Comments from MEEA reviewer, G. Ehrendreich, 6/10.

As part of Docket 08-GIMX-442-GIV, collaborative processes were in place in 2008 to deal with EM&V processes and benefit-cost analysis. The Kansas Energy Council, incorporating stakeholders, produces an annual energy plan for Kansas that includes EE.

Comment from state reviewer, 6/10

CK 6/10; BH 7/09

CK 6/10

CK 5/10

In the past, costs were recovered in rates on a case-by-case basis. In a Staff Report and Recommendation in Docket 07-GIMX-247-GIV, Commission staff recommended that the Commission investigate all cost recovery options. The report also recommended the use of an interim rider to recover program costs while cost recovery options were being investigated. In an Order on 11/14/08 in Docket 08-GIMX-441-GIV, the Commission stated that it believed a rider mechanism would be the best method for cost recovery; proposals for riders will be submitted with EE program approvals. EE programs are not required by the Commission. See 1.1 regarding EE programs.


CK 6/10, BH 7/09

BH 7/09

In its Staff Report and Recommendation in Docket 07-GIMX-247-GIV, Commission staff recommended that the Commission address this issue. In an 11/14/08 Order in Docket 08-GIMX-441-GIV, the Commission stated that it will consider decoupling proposals made in connection with EE programs on a case-by-case basis. The Commission will require any decoupling proposal to include annual caps. The Commission opened docket no. 09-GIME-360-GIE in 10/08 to consider the PURPA standards related to incentives. In an Order in the same docket dated December 14, 2009, the Commission declined to adopt the PURPA standards, and instead encouraged continued "collaborative discussions...to develop policy and regulatory framework involving dynamic rate designs and possibly related Smart Grid technologies..." as well as "consideration of such issues as energy pricing and usage information for customers, rate recovery (including decoupling) and stranded assets." No docket number was assigned.

Statute 66-117 allows the commission to grant from 0.5-2% increased Return on Equity for utility investments on Renewable Energy or Energy Efficiency. In an 11/14/08 Order, the Commission decided to allow for incentives, but limit them to specific EE programs, namely: 1) proposals that target low and fixed income customers, and renters, and 2) proposals that target new and existing residential housing and demonstrate a potential for long-term energy savings using a comprehensive whole house concept. The Commission stated that it favors the shared benefit approach to performance incentives. The Commission opened docket no. 09-GIME-360-GIE in 10/08 to consider the PURPA standards related to incentives. In an Order in the same docket dated December 14, 2009, the Commission declined to adopt the PURPA standards, and instead encouraged continued "collaborative discussions...to develop policy and regulatory framework involving dynamic rate designs and possibly related Smart Grid technologies..." as well as "consideration of such issues as energy pricing and usage information for customers, rate recovery (including decoupling) and stranded assets." No docket number was assigned.

CK 6/10, BH 2007

CK 6/10

BH 6/09

BH 8/09

CK 6/10

State Fiscal Policy

In its Staff Report and Recommendation in Docket 07-GIMX-247-GIV, Commission staff have recommended that the Commission address this issue. The Commisssion found in an Order dated October 10, 2007 in the above docket, that it had the authority to consider cost-reocvery and "environmental externalities". It also concluded that it did not have the jurisdiction to regualte the retail rates of municiple and small cooperatives. The Commission declined to require utilities implement energy efficiency programs, but they may do so voluntarily.


MRD 04/2010



ACH 6/2010

ACH 6/2010JR 6/2010

Citations

ACEEE, 2009 State Energy Efficiency Scorecard, October 2009, http://aceee.org/pubs/e097.pdf?CFID=571117&CFTOKEN=50109276.Building Codes Assistance Project / Online Code Environment & Advocacy Network, KS page: http://bcap-ocean.org/state-country/kansas

DSIRE, Kansas, Incentives/policies for renewables and efficiency, Last reviewed 2/23/10: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=KS06R&re=1&ee=1

Kansas City Power and Light, Smart Grid Demonstration Project, 2009: http://www.energy.gov/news2009/documents2009/SG_Demo_Project_List_11.24.09.pdf

Summit Blue Consulting, Kansas Energy Council Energy Efficiency Potential Study, 2008, http://www.summitblue.com/pages/areas-of-expertise/resource-potential/show?id=58

Update notes for 2010 activity

Notes from RS: See link for information on status of energy efficiency programs (currently cancelled) in 2010: http://www.kcc.state.ks.us/pi/press/10-16.htm. Note from CK: Check Joint Comittee on Energy and Environment (established pursuant to 46-3702 ) in 2010. Also check natural gas EEPs filed in early 2010 under docket no. 10-KGSG-421-TAR

Check Docket No. 10-KGSG-421-TAR for Application for decoupling and EEP by utility

Note from state reviewer: The Commission approved two pilot real-time pricing pilots for Westar Energy in Docket 09-WSEE-925-RTS. The two pilot rates are: Energywise Educational Service Real Time Pricing - Pilot, and Energywise High Load Factor Real Time Priceing Service - Pilot. See final order dated January 25, 2010 in above docket.

Confirmed with Don Low at KS Corporate Commission [email protected], 785-271-3221. Starting May 2010 the new contact is Michael Wegner [email protected]

Contacted Tom DeBaun at the KCC (785) 271-3135 [email protected]

MICHIGAN through 12/31/09Electric


1.1

Y-

S

1.2

S, R

N



Y


1.3

Y

R

1.4


Y

R

1.5 N




1.5


2.1


S

Y

2.2

N


SOR

2.3

Y

O

Y



2.3

2.4

N

S

2.5

Y-

SRO



2.5

S

b

Y

S2.5.4 Capacity Savings (Annual MW)




2.5

2.6

N

SA

SOR


2.6


N

R

Y

S

N

S

N

S






2.7

Y

SO

a,b

2.8


N



2.8

S,R

2.9

O

O

2.10N

O

2.11


Y/Y

2.9.2 Building Energy Codes for commercial buildings are in place and regularly updated Y/Y



Y

C61

Brenda: EPA called this a N/Y in grid updated through 2008

2.11

S


3.1

N

S

N

Do not delete this row.O



3.2N




B76


N


4.1




N

B78


4.1

c


Y

O

4.2

SRO



4.3

Y

OS

4.4

5.1

Y


Funds from carbon trading program support EERecommendation 5: Modify policies to align utility incentives with the delivery of cost-effective energy efficiency and modify ratemaking practices to promote energy efficiency

investments.5.1.1 Utility throughput incentive is addressed and disincentives are removed

SRO

5.1

a

5.2

Y



SRO

5.2

5.3

5.4


R



RO

R




Y

Y-


Y

7.1

R

S

A

7.2


R

7.3


S

7.4



Y+

Y

Y

N

7.4

U

U -

7.5

U

U

Citations


N

MICHIGAN through 12/31/09Electric Natural Gas


Y-

S

In 2008, Michigan enacted The Clean, Renewable, and Energy Efficiency Act (Act 295 of 2008, SB213) Section 460.1001 requires utilities to file an energy optimization plan with the Commission that "shall be designed to delay the need for constructing new electric generating facilities" and establishes an energy optimization standard. As noted in 1.2.1 below, MI Act 286 of 2008 requires utilities to file an IRP when they seek a certificate of necessity to add capacity. According to comments submitted from MEEA on July 6, 2010, a number of bills (HB6063-6070) were introduced to amend Act 295 to increase the EE requirement to 2.0% of electricity and 1.5% of natural gas. None of these bills moved past the committee stage in 2009.

Act 295 of 2008, MCL 460.1001. http://legislature.mi.gov/doc.aspx?mcl-460-1001 Act 286 of 2008, MCL Section 460.6s. http://legislature.mi.gov/doc.aspx?mcl-460-6s

Pursuant to Act 286 of 2008 (HB5524) (Companion legislation to Act 295), when utilities petition the Commission for a certificate of necessity to add capacity, they must include an integrated resource plan. The IRP must include detailed information on energy efficiency programs, existing and proposed, that were considered as part of the plan. MCL 460.6s. The MPSC opened Case No. U-15896 to implement MCL 460.6s. See December 23, 2008 Order Requesting Comment in Docket U-15896. No further Orders have been issued in this docket.

Act 286 of 2008, MCL Section 460.6s. http://legislature.mi.gov/doc.aspx?mcl-460-6s Order Requesting Comment in Docket U-15896, December 23, 2008. http://efile.mpsc.state.mi.us/efile/docs/15896/0001.pdf

The Michigan Planning Consortium has been established to "consider, evaluate, and integrate transmission; generation; distribution upgrades and construction; energy efficiency; and demand side alternatives. The Consortium shall submit energy infrastructure recommendations to the Commission." Docket U-15590, Order of July 1, 2008 at page 5. On July 31 2009, The PSC Staff issued a report regarding the activities of the chigan Planning Consortium. The report discussed the different positions of the participants and recommended that the Consortium be disbaneded.

PSC Order creating Michigan Planning Consortium, Case No. U-15590, July 1, 2008. http://efile.mpsc.state.mi.us/efile/docs/15590/0001.pdfPSC Staff Report on Michigan Planning Consortium, Caser No U-15590, July 31, 2009. http://efile.mpsc.state.mi.us/efile/docs/15590/0003.pdf

The majority of the state is in the MISO territory and MISO does not allow EE as a biddable resource at this time. PJM conducts a regional planning process for 13 states and DC, including a portion of Michigan. PJM uses its Reliability Pricing Model (RPM) to procure capacity on a multi-year forward basis through an auction mechanism. In March 2008, several parties asked FERC to review the reasonableness of the RPM process. On June 30, 2008, PJM filed a responsive report. On September 19, 2008, FERC issued an Order addressing the report and supporting creation of a stakeholder process to address pending RPM issues. On December 12, 2008, PJM filed a report with FERC summarizing results of the stakeholder process, proposing changes to the RPM, including allowing energy efficiency to participate in the RPM in Docket Nos. ER05-1410-000, EL05-148-000. Also on December 12, 2008, PJM filed corresponding tariff revisions for effect on March 27, 2009 in Docket No. ER09-412-000. On February 9, 2009, PJM and certain parties filed a Settlement Agreement with FERC regarding PJM’s December 2008 RPM filings. On March 26, 2009, FERC issued an Order Accepting Tariff Provisions in Part, Rejecting Tariff Provisions in Part, Accepting Report, and Requiring Compliance Filings in the above-referenced dockets. The March 26th Order addresses the inclusion of EE in the RPM at paragraphs 120-139. FERC approved PJM's tariff provisions to enable EE resources to participate in the RPM market starting with the May 2009 Base Residual Auction that will procure capacity for the 2012-2013 Delivery Year. FERC rejected PJM's proposal to compensate EE resources that do not supply annual M&V plans. On October 30, 2009, FERC issued an Order in Docket Nos. ER05-1410 et. al. addressing compliance issues relating to March 26, 2009 Order in these dockets.

PJM Report Proposing Changes to RPM filed in Dcoket Nos. ER05-1410 et. al. dated December 12, 2008. http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13672172 PJM tariff filing to implement proposed changes to RPM in Docket Nos. ER05-1410 et. al. dated December 12, 2008. http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13672185FERC Order Regarding PJM Report and Tariff Filings in Docket Nos. ER05-1410 et. al. dated March 26, 2009. http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13701842FERC Order on PJM RPM Compliance Issues, Dcoket Nos ER05-1410 et. al., October 30, 2009. http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13765680


Y

S

The Clean, Renewable, and Energy Efficiency Act established an energy optimization standard. Act 295 of 2008, MCL 460.1077. Under Act 295, an objective of the “energy optimization” programs is to reduce long-term costs to utility ratepayers — in particular, by delaying the need for additional power plants. A companion bill to Act 295 was Act 286 of 2008. Act 286 incorporates energy efficiency into the "integrated resource planning" process.

Act 295 of 2008, MCL 460.1077. http://legislature.mi.gov/doc.aspx?mcl-460-1077Act 286 of 2008. https://sharepoint.raponline.org:4433/knowledgecenter/research/policygrids/Shared%20Documents/Policy%20Grid%20States/Michigan/MI%20Grid%202008/2008-PA-0286_ratecaselaw.pdf

N

SOR

Energy optimization plans are evaluated using the Utility System Resource Cost Test, analogous to the Program Administrator Test. Other cost benefits tests may be used to evaluate individual programs. Act 295 of 2008, MCL 460.1073. On November 30, 2009, the MPSC issued a report summarizing its activities to implement Act 295. In its report the PSC notes that on September 29, 2009, it approved financial incentive mechanisms for Detroit Edison (U-15806), Michigan Consolidated Gas Company (U-15890) and Consumers Energy (U-15805 & U-15889). (See URL below for access to documents in each of these dockets.) The PSC further notes that "The Commission authorized a mechanism that it believed would incent utilities to pursue cost effective energy efficiency programs that significantly exceed the statutory minimum. The incentive mechanism requires a utility to simultaneously meet two thresholds: exceed the statutory minimum targets; and exceed Utility System Resource Cost Test of 1.0." Report at p. 17.

Act 295 of 2008, MCL 460.1073. http://legislature.mi.gov/doc.aspx?mcl-460-1073MPSC report on Act 295 Implementation, November 30, 2009. http://www.michigan.gov/documents/mpsc/mpsc_energy_optimization_report_113009_302592_7.pdfURL to PSC web site for access to documents in financial incentive mechanism dockets. http://efile.mpsc.state.mi.us/efile/

Y

O

Y

An assessment of efficiency potential in Michigan was done by the Energy Center of Wisconsin in July 2006 to inform the development of the 21st century energy plan. MI was also included in a regional potential study conducted by ACEEE in January 2005.

Summary of potential study done by the Energy Center of Wisconsin, July 2006. http://www.cis.state.mi.us/mpsc/electric/capacity/energyplan/energyeff/SummaryofMichiganEEPotentialStudywdocumentaion.pdfRegional potential study prepared by ACEEE, January 2005. http://www.aceee.org/pubs/u051.htm

The Clean, Renewable, and Energy Efficiency Act (Act 295 of 2008) requires energy optimization plans that "include offerings for each customer class, including low-income residential." Act 295, MCL 460.1071. Act 295 reestablished utility energy efficiency programs in Michigan. The state's previous programs were discontinued in 1996. Act 295 gave the MPSC the authority to approve or reject efficiency plan proposals. To approve a plan, the Commission must determine that the plan meets the utility system resource cost test and is reasonable and prudent. On December 4, 2008, the MPSC issued a Temporary Order in Case No. U-15800 that addressed filing requirements for the energy efficiency plans. By Order dated January 13, 2009, the PSC directed utilities to file their plans by April 3, 2009. The PSC required utilities to offer programs to customers in all sectors (residential, low-income, commercial, and industrial). The MPSC issued a report on the implementation of Act 295 on November 30, 2009. According to the report, all natural gas and electric utility customers in Michigan can participate in specific energy efficiency programs offered by their local utility. Efficiency United EO programs will begin launching on November 30, 2009. The report discusses specific programs at pages 4-5, 22-27.

SRO

N

S

Y-

Act 295 of 2008, MCL 460.1071. http://legislature.mi.gov/doc.aspx?mcl-460-1071PSC Temporary Order implementing Act 295, Case No. U-15800, December 4, 2008. http://efile.mpsc.state.mi.us/efile/docs/15800/0001.pdfMPSC report on Act 295 Implementation, November 30, 2009. http://www.michigan.gov/documents/mpsc/mpsc_energy_optimization_report_113009_302592_7.pdf

The Clean, Renewable, and Energy Efficiency Act (Act 295) has an energy optimization standard, a provision for capped program cost recovery, and requires cost effectiveness. However, a funding requirement for all long-term, cost effective EE exceeds the mandate of the Act. Act 295, MCL 460.1077 and 460.1089

Act 295, MCL 460.1077. http://legislature.mi.gov/doc.aspx?mcl-460-1077 Act 295 ,MCL 460.1089. http://legislature.mi.gov/doc.aspx?mcl-460-1089

The energy optimization standard established in Act 295 sets MWh goals, subject to sales revenue expenditure limits. Act 295 establishes an energy efficiency resource standard (known as an “energy optimization savings standard”) for utilities. Electric utilities must achieve 0.3% savings in 2009; 0.5% in 2010; 0.75% in 2011; and 1.0% in 2012 and each year thereafter. Natural gas utilities must achieve 0.1% savings in 2009; 0.25% in 2010; 0.5% in 2011; and 0.75% in 2012 and each year thereafter. There is no penalty for failing to achieve the savings amounts, but there are incentives for exceeding the targets. Act 295, MCL 460.1077

S

See 2.5.1 above.

b

Act 295, MCL 460.1077. http://legislature.mi.gov/doc.aspx?mcl-460-1077

Energy optimization credits may be used to comply with up to 10% of the Renewable Energy Credits Standard, subject to Commission approval. Act 295, MCL 460.1027.


ACEEE issued its 2009 State Energy Efficiency Scorecard (Scorecard) in October 2009. Among other things, the Scorecard tracks annual EE program savings by each state in 2007 (the most recent year for which relevant data are available for all jurisdictions). According to the Scorecard, MI's total incremental electric savings (MWh) was 0 in 2007 which was 0.00% of savings as a percent of electricity sales and ranked MI tgied for 46th when compared with other states. However, MI has made substantial investments in EE since 2007. As a percentage of total annual retail electricity sales of the prior year (except for 2008-9, which uses 2007 sales): 2009 - 0.3%, 2010 - 0.5%, 2011 - 0.75%, 2012-2015 - 1%. Act 295, MCL 460.1077. The MPSC issued a report on the implementation of Act 295 on November 30, 2009. According to the report, in 2009, the aggregate statewide electric energy savings target was 24,039 MWh. This is approximately 0.3 percent of the statewide retail electric sales level. The 2010 and 2011 statewide electric savings levels progressively rise to 38,933 MWh (0.5 percent of retail sales) and 57,977 MWh (0.75 percent of retail sales). At the conclusion of the report the PSC noted "While the Commission is not recommending specific legislative changes with this report, we do note that a number of states around the nation, and in our own Midwest region, have adopted larger energy efficiency savings requirements than are contained in PA 295. Should the legislature desire to consider the issue of strengthening the energy optimization components of PA 295, the Commission would be happy to cooperate in that effort." (Page 22 of report.)

SO

N

SA

ACEEE Scorecard for 2009. http://aceee.org/pubs/e097.pdf?CFID=571117&CFTOKEN=50109276http://legislature.mi.gov/doc.aspx?mcl-460-1077Act 295, MCL 460.1077. http://legislature.mi.gov/doc.aspx?mcl-460-1077 MPSC report on Act 295 Implementation, November 30, 2009. http://www.michigan.gov/documents/mpsc/mpsc_energy_optimization_report_113009_302592_7.pdf

Energy optimization plans shall "include a process for obtaining an independent expert evaluation of the actual energy optimization programs to verify the incremental energy savings from each energy optimization program." Act 295, MCL 460.1071. The PSC has initiated an Energy Optimization Evaluation collaborative which began on September 1, 2009 to develop evaluation criteria. As provided in MCL 460.1191(2), the Commission must promulgate the rules within one year of the effective date of Act 295. On October 7, 2008, the Commission filed a request for rulemaking (RFR) with the State Office of Administrative Hearings and Rules (SOAHR). On the same date, SOAHR approved the RFR, which has been assigned the SOAHR docket number 2008-042 LG. On October 6, 2009, the Commission submitted the draft of the Act 295 rules to SOAHR. The rules are expected to be finalized within nine months, well in advance of the next EO plan filings. The rules are referred to as the Clean, Renewable and Efficient Energy Rules. The pending Commission rules can be viewed at the URL listed below.

Act 295, MCL 460.1071. http://legislature.mi.gov/doc.aspx?mcl-460-1071Pending PSC draft rules. http://www.state.mi.us/orr/emi/rules.asp?type=dept&id=LG.

N

R

The energy optimization performance standard is based on savings. Act 295, MCL 460.1077Y

S

N

S

N

S

The energy optimization plans draft filing requirements and instructions declare that, "No more than eight percent of the energy optimization budget should be allocated for program evaluation, measurement and verification activities to determine actual program energy savings." Docket U-15800, Order of December 4, 2008, Attachment E, page 7.

PSC Temporary Order implementing Act 295, Case No. U-15800, December 4, 2008. http://efile.mpsc.state.mi.us/efile/docs/15800/0001.pdf


This is to be determined in the Energy Optimization Evaluation collaborative which began on September 1, 2009 to develop evaluation criteria.

Energy optimization plans shall "include a process for obtaining an independent expert evaluation of the actual energy optimization programs to verify the incremental energy savings from each energy optimization program." Act 295, MCL 460.1071


The evaluations "shall be subject to public review and commission oversight." Act 295, MCL 460.1071


http://legislature.mi.gov/doc.aspx?mcl-460-1071


Y

SO

See 2.7.1 above.a,b

N

"A provider's energy optimization programs or any part thereof, may be administered, at the provider's option, by the provider, alone or jointly with other providers, by a state agency, or by an appropriate experienced nonprofit organization selected after a competitive bid process." Act 295, MCL 460.1071. The MPSC issued a report on the implementation of Act 295 on November 30, 2009. In the report, the PSC summarizes the new EE delvery structure as follows: "Section 91 of PA 295, creates an option for utilities to offer energy optimization services through an energy optimization program administrator selected by the Commission. Section91(6) requires the administrator to be a “qualified nonprofit organization” and selected through acompetitive bid process. To fund the program, which has been named Efficiency United, the administrator will be paid directly by the participating utilities using funds collected fromcustomers through Commission approved surcharges on utility bills." Act 295, reestablished utility energy efficiency programs in Michigan. The state's previous programs were discontinued in 1996. Act 295 gave the MPSC the authority to approve or reject efficiency plan proposals. To approve a plan, the Commission must determine that the plan meets the utility system resource cost test and is reasonable and prudent. In December 2008, the MPSC issued a Temporary Order in Case No. U-15800 that addressed filing requirements for the energy efficiency plans. The PSC subsequently directed utilities to file their plans by April 3, 2009. The PSC required utilities to offer programs to customers in all sectors (residential, low-income, commercial, and industrial). The November 30, 2009 report further notes that "The utilities may administer the programs themselves, administer the programs jointly with other providers, select a nonprofit to administer the programs, or opt to work with the MPSC-selected program administrator (the Independent Energy Optimization Program Administrator). As of the summer of 2009, all of the utilities have either filed their plans or plan to use the Independent Energy Optimization Program Administrator. Several companies have begun implementing their programs." According to the report, all natural gas andelectric utility customers in Michigan can participate in specific energy efficiency programs offered by their local utility. Efficiency United EO programs will begin launching on November 30, 2009. The report discusses specific programs at pages 4-5, 22-27.

Act 295, MCL 460.1071. http://legislature.mi.gov/doc.aspx?mcl-460-1071MPSC report on Act 295 Implementation, November 30, 2009. http://www.michigan.gov/documents/mpsc/mpsc_energy_optimization_report_113009_302592_7.pdf

Resource plans are filed only with an application for Generation Certificate of Need. MCL 460.6s and Docket U-15896. See 1.2.1 above.

S,R

Act 295, MCL Section 460.6s. http://legislature.mi.gov/doc.aspx?mcl-460-6s Order Requesting Comment in Docket U-15896, December 23, 2008. http://efile.mpsc.state.mi.us/efile/docs/15896/0001.pdf

The 2003 IRC, with reference to the 2004 IECC supplement is mandatory statewide for 1- and 2-family dwellings and multiple-single family dwellings. Legal challenge to Michigan Uniform Energy Code was dissolved in October 2008. Codes are reviewed every three years. See BCAP summary for additional details. For detached 1- or 2-family homes, compliance can be demonstrated by meeting the requirements in the MUEC, or by meeting the requirements of the IECC (no year stated in code), or by meeting the requirements of Energy Star for Homes, or by achieving a HERS score of 83 or better. (Michigan Construction Code part 10 Michigan Uniform Energy Code R 408.31060 Sec N1101.2.1)

URL for BCAP summary of MI code. http://bcap-energy.org/node/75 Michigan Construction Code part 10 Michigan Uniform Energy Code R 408.31060. http://www.state.mi.us/orr/emi/admincode.asp?AdminCode=Single&Admin_Num=40831001&Dpt=CI&RngHigh=

MI building code has adopted ASHRAE 90.1-1999 by reference. It applies to all nonresidential building and is mandatory statewide. Builders may use COMcheck to show compliance. Codes are reviewed every three years. See BCAP summary for additional details.

URL for BCAP summary of MI code. http://bcap-energy.org/node/75 Updated standards were proposed in the Commission's 21st Century Energy Plan. See pp. 33-34 of the Plan.

PSC 21st Century Energy Plan, January 2007. http://www.michigan.gov/documents/mpsc/21stcenturyenergyplan_185274_7.pdfAct 295 of 2008 declares the state's goal to be "to reduce state government grid-based energy purchases by 25% by 2015." The act mandates the establishment of a program for energy analsyses of state buildings, examination of the costs and benefits of leasing buildings that meet LEED standards, appointing energy reduction coordinators in each state department, mandating the use of energy efficient products during procurement and building renovation and construction, and the implementation of an energy conservation education program for state employees. The law directs the Department of Management and Budget (DMB), in consultation with the state Energy Office, to perform and oversee a number of tasks related to achieving this goal, including the establishment of an energy analysis program to evaluate each building owned or leased by the state. The analyses must take place at least once every five years. Act 295, MCL 460.1131 and 460.1133.


N

S

DTE Energy

Act 295, MCL Section 460.1131. http://legislature.mi.gov/doc.aspx?mcl-460-1131Act 295, MCL Section 460.1133. http://www.legislature.mi.gov/(S(h44ibvnoayyrvs55u2oif5i3))/mileg.aspx?page=GetObject&objectname=mcl-460-1133

Energy optimization plans may utilize educational programs. Act 295 rquires the Commission to "actively pursue increasing public awareness of energy conservation and energy efficiency." Act 295, MCL 460.1071 and 460.1095

Act 295, MCL Section 460.1171. http://legislature.mi.gov/doc.aspx?mcl-460-1171 Act 295, MCL Section 460.1095. http://legislature.mi.gov/doc.aspx?mcl-460-1095

The PSC has overseen a variety of cololaborative activies regarding EE. In January 2007, the PSC released the 21st Century Electric Energy Plan presenting the results of a six-month study by MPSC staff and a number of other interested parties. Included in orders approving the Consumers Energy (Case No. U-15805) and DetroitEdison (Case No. U-15806) EO plans were provisions for the establishment of an energy optimization collaborative that required the participation of all gas and electric providers and offered the opportunity for a variety of additional stakeholders to participate from the energy efficiency industry, environmental groups and other interested stakeholders. The collaborative structure includes three main workgroups: Program Design and Implementation; Evaluation; and Low-Income Programs. This Energy Optimization Evaluation collaborative which began on September 1, 2009. The MPSC issued a report on the implementation of Act 295 on November 30, 2009. These coolaborative activities are discussed in that report.

MPSC report on Act 295 Implementation, November 30, 2009. http://www.michigan.gov/documents/mpsc/mpsc_energy_optimization_report_113009_302592_7.pdf

Consumers Energy starting new program


Michigan Public Service Commission is exploring partnership with Home Performance with ENERGY STAR. US EPA will be provided a presentation at the September 1, 2009 EE collaborative meeting.

Act 295 establishes a mechanism for recovering the costs of programs implemented as part the utilities' Energy Optimization Plans and to comply with the Energy Optimization Performance Standard. Commission filings detailing the EO Plans should include provisions for cost recovery. Act 295, MCL 460.1089 and Docket U-15800, Order from December 4, 2008. The MPSC issued a report on the implementation of Act 295 on November 30, 2009. In that report the PSC noted that EE programs are supported by customer rates via a volumetric charge for residential customers and monthly "per meter" charges for commercial and industrial customers. (Volumetric charges are assessed on a per kWh or per therm basis. "Per meter" charges are based on the number of meters rather than the customer's energy consumption.) Each utility specifies these charges in plans that are filed with the MPSC. Spending for each utility is limited to 0.75% of total sales revenues in 2009, 1.0% in 2010, 1.5% in 2011, and 2.0% in 2012 and each year thereafter. (1.0% of total electric revenues in Michigan would currently be approximately $80 million per year.) Section 91 of Act 295, creates an option for utilities to offer energy optimization services through an energy optimization program administrator selected by the Commission. Section 91(6) requires the administrator to be a “qualified nonprofit organization” and selected through acompetitive bid process. To fund the program, which has been named Efficiency United, the administrator will be paid directly by the participating utilities using funds collected from customers through Commission approved surcharges on utility bills. Nine electric and four natural gas providers that elected to participate. Efficiency United EO programs began launching on November 30, 2009. Services and offerings will be similar to, and coordinated with, those of other providers. The intent is to have as much consistency as possible across the state, reducing confusion among customers and trade allies, and resulting in greater efficacy in achieving the energy efficiency goals of PA 295. Through the end of 2011, Efficiency United will have an estimated total budget of $35,603,690 and save 125,869 MWh of electricity and 750,592,000 Mcf of natural gas. Note that residential EO surcharges are calculated as per kWh charges, all other customers classes are required by statute to pay fixed monthly surcharges.

N

SRO

See 4.1.1 abovec

Y

O

See 4.1.1 above.

Act 295 ,MCL 460.1089. http://legislature.mi.gov/doc.aspx?mcl-460-1089PSC Temporary Order implementing Act 295, Case No. U-15800, December 4, 2008. http://efile.mpsc.state.mi.us/efile/docs/15800/0001.pdfMPUC report on PA 295 Implementation, November 30, 2009. http://www.michigan.gov/documents/mpsc/mpsc_energy_optimization_report_113009_302592_7.pdf

The MPSC issued a report on the implementation of Act 295 on November 30, 2009. In the report, the PSC noted that "Subpart B of Act 295 requires providers of electric or natural gas service to establish Energy Optimization (EO) programs for their customers. In compliance with Act 295, on December 4, 2008, the Commission issued a temporary Order in Case No. U-15800 to implement the Act. The temporary Order provided EO plan filing guidelines and resolved implementation issues for EO and renewable energy plans. EO plan submittals were required from all retail rate-regulated electric utilities, retail rate-regulated rural electric cooperatives, member-regulated electric cooperatives, municipally-owned electric utilities and retail rate-regulated gas utilities in Michigan. In total, 65 utilities filed EO plans with the Commission between February 16, 2009 and April 1, 2009. All 65 EO plans were approved by the Commission on or before July 1, 2009. the Commission approved Energy Optimization Plans for nine Electric investor-owned utilities, 10 electric cooperatives, 41 municipal electric companies, and six gas companies for a total of 66 energy optimization plans. Based upon EO Plan filings with the Commission, for calendar year 2009, the aggregate statewide funding for EO programs is $89,328,886. For calendar year 2010, the statewide EO budget is $129,858,127. For calendar year 2011, the statewide EO budget is $186,945,184. The statewide three-year cumulative funding level for EO programs is $406,132,197."

MPUC report on PA 295 Implementation, November 30, 2009. http://www.michigan.gov/documents/mpsc/mpsc_energy_optimization_report_113009_302592_7.pdf

Y

S

S

ACEEE issued its 2009 State Energy Efficiency Scorecard (Scorecard) in October 2009. Among other things, the Scorecard tracks spending on EE by each state in 2007 (the most recent year for which relevant data are available for all jurisdictions). According to the Scorecard, MI total spending on EE in 2007 was $0 which was 0.00% of total utility revenues and ranked MI tied for 47th in state spending. However, Michigan has made substantial investments in EE since 2007. Act 295 directs cost recovery shall not exceed 1.7% of total retails sales revenue for primary customers and 2.2% of total retial sales revenue for secondary customers and for residential customers. Act 295, MCL 460.1089

ACEEE Scorecard for 2009. http://aceee.org/pubs/e097.pdf?CFID=571117&CFTOKEN=50109276 http://legislature.mi.gov/doc.aspx?mcl-460-1089Act 295 ,MCL 460.1089. http://legislature.mi.gov/doc.aspx?mcl-460-1089


Act 295 requires the Commission to submit a report on potential rate impacts, cost-effectiveness, and consumption reduction potential of decoupling. The Act also authorizes the use of third party program administrators and a performance incentive for exceeding the energy optimization performance standard. Act 295, MCL 460.1071, 460.1075 and 460.1097. DTE reqiuested decoupling in its current rate case in December 2009. (See Case Nos. U-15768 and U-15751.) The commission in case U-15244 (Detroit Edison) and U-15235 (Consumers Energy) required such utilities to file decoupling mechanisms in their current rate cases. The Commission’s May 26, 2009 order in Case Nos. U-15805 & U-15889 approved Consumers Energy’s renewable energy and energy optimization plans as required by Act 295, but it specifically reserved the decoupling issues for rate cases. The MPSC issued a report on the implementation of Act 295 on November 30, 2009. In the report, the PSC noted that it had approved an electric revenue decoupling mechanism for Consumers Energy’s in its most recent rate case, Case No. U-15645 (See Order below dated November 2, 2009) and added that "It specifically tied implementation of a decoupling true-up to Consumers Energy exceeding EO targets and provision of proposals for demand response and load control programs, i.e., demand resources. Currently, the Commission has decoupling proposals before it for Consumers Energy Gas, Detroit Edison and Mich Con. By tying a decoupling true-up to EO performance exceeding statutory minimums, the Commission recognizes that the outcome of a decoupling mechanism is to remove the throughput disincentive to promoting energy efficiency."

N

Act 295 ,MCL 460.1071. http://legislature.mi.gov/doc.aspx?mcl-460-1071 Act 295 ,MCL 460.1075. http://legislature.mi.gov/doc.aspx?mcl-460-1075 Act 295 ,MCL 460.1097. http://legislature.mi.gov/doc.aspx?mcl-460-1097URL to PSC web site for access to documents in decoupling and rate case dockets. http://efile.mpsc.state.mi.us/efile/PSC Order on decoupling, Case No. U-15645, November 2, 2009. http://efile.mpsc.state.mi.us/efile/docs/15645/0491.pdf MPUC report on PA 295 Implementation, November 30, 2009. http://www.michigan.gov/documents/mpsc/mpsc_energy_optimization_report_113009_302592_7.pdf

See 5.1.1 above.

Y

SRO

Act 295 contains two provisions whereby utilities can receive an economic incentive for implementing energy efficiency programs. First, they are allowed to request that EE program costs be capitalized and earn a normal rate of return. Second, they are allowed to request a performance incentive for shareholders if the utilities exceed the annual energy savings target. Performance incentives cannot exceed 15% of the total cost of the EE programs. Act 295, MCL 460.1075. On September 29, 2009, the Commission approved financial incentive mechanisms for Detroit Edison (U-15806), Michigan Consolidated Gas Company (U-15890) and Consumers Energy (U-15805 & U-15889). The MPSC issued a report on the implementation of Act 295 on November 30, 2009. In the report, the PSC noted that it "authorized a mechanism that it believed would incent utilities to pursue cost effective energy efficiency programs that significantly exceed the statutory minimum. The incentive mechanism requires a utility to simultaneously meet two thresholds: exceed the statutory minimum targets; and exceed Utility System Resource Cost Test (USRCT) of 1.0."

Act 295 ,MCL 460.1075. http://legislature.mi.gov/doc.aspx?mcl-460-1075URL to PSC web site for access to dockets relating to incentive provisions. http://efile.mpsc.state.mi.us/efile/ MPUC report on PA 295 Implementation, November 30, 2009. http://www.michigan.gov/documents/mpsc/mpsc_energy_optimization_report_113009_302592_7.pdf

Promotional rates are being phased out.


Utilities are just beginning to determine effectiveness of time-based rates such as Critical Peak Pricing, in impacting EE in addition to providing peak load reduction.

"In a January 30, 2007 order issued in Case Nos. U-15183, U-15184, and U-15185, the Commission determined, on the basis of a report by the Commission Staff, that only two of the eight Michigan jurisdictional utilities … do not currently offer time-based rate tariffs to all classes of customers." Docket U-15184, Order of July 26, 2007. One of the utilities has satisfied the Commission and the other contends that it is in compliance.

PSC Order in U-15184, July 26, 2007. http://efile.mpsc.state.mi.us/efile/docs/15184/0005.pdf

"Michigan utilities are currently investigating the deployment of AMI as a platform to implement remote meter reading, demand response programs, and other Smart Grid initiatives." AMI pilots are scheduled to commence in 2008. Docket U-15620, Order of July 1, 2008. No additional Orders have been issued in this docket. However, Staff issued a report on AMI minimum functionality on October 1, 2008. DTE has tested 30,000 meters in Grosse Ile Township and was awarded $84 M in SGIG fubnds to deploy a network of 660,000 smart meters. DTE will also implement a dynamic pricing pilot.

PSC Order invirting comments on AMI in case No U-15620, July 1, 2008. http://efile.mpsc.state.mi.us/efile/docs/15620/0001.pdfPSC Staff report on AMI minimum functionality, No U-15620, October 1, 2008. http://efile.mpsc.state.mi.us/efile/docs/15620/0025.pdf

"The Michigan Saves program will provide an option for financing energy efficiency improvements with no up front capital payment and no additional debt attributable to a participating customer. The customer at a location where products are financed under Michigan Saves are installed will pay a tariffed charge on their utility bill, as long as there are savings, until all measure costs, including financing costs, are paid." U-15800, Order of December 4, 2008 at page 30.

PSC Order in U-15800, December 4, 2008. http://efile.mpsc.state.mi.us/efile/docs/15800/0001.pdf

Exit fees are not allowed to be collected in the state of Michigan due to Senate Bill SB 937.

Michigan does not have a statewide policy on standby rates

In October 2008 Michigan enacted Public Act 295, creating a renewable portfolio standard (RPS) and authorizing the development of a mandatory statewide net metering program. In May 2009, the PSC issued an order formally adopting new net metering rules and revised interconnection rules to implement P.A. 295 of 2008. Certain aspects of the newly adopted rules apply only to net metered systems, but the rules generally apply to all distributed generation. The revised rules provide for 5 interconnection categories: Certified, inverter-based systems of 20 kW or less; systems greater than 20 kW but not more than 150 kW*; between 150 kW and 750 kW; between 750 kW and 2 MW; and systems greater than 2 MW. Certified systems are defined as those that use equipment certified by a nationally recognized testing laboratory to IEEE 1547.1 testing standards and in compliance with UL 1741. Additional insurance requirements are prohibited for category 1 & 2 projects and utilities may not require the customer to name the utility as an additional insured party. Category 3-5 projects are required to have general liability insurance of at least $1 million. Application and review fees are subject to PSC approval and Category 1 fees are limited in total to an application fee of $75. The rules contain specific time lines for the processing and review of interconnection requests for different categories of system. Utilities must provide standardized interconnection applications and agreements to customers, with a simplified version for Category 1 requests. Customer-generators are not required to install an external disconnect switch, although utilities may require it. Utilities are generally prohibited from establishing additional fees; requiring additional equipment or insurance; or making other requirements not specifically authorized by the standard rules. PSC Order, Case No. U-15787 can be accessed here: http://www.dleg.state.mi.us/mpsc/orders/electric/2009/u-15787_05-26-2009.pdfPublic Act 295 can be found here: http://www.legislature.mi.gov/documents/2007-2008/publicact/pdf/2008-PA-0295.pdfMich. Admin. Code R 460.481 et seq can be accessed here, http://www.state.mi.us/orr/emi/admincode.asp?AdminCode=Single&Admin_Num=46000481&Dpt=LG&RngHigh=Michigan has a voluntary statewide net-metering policy that was enacted in 2005, PSC Order, Case No. U-14346, and will last up to 5 years. The following systems/fuels are eligible to net meter - Solar thermal electric, PV, landfill gas, wind, biomass, hydro, geothermal, and municipal solid waste projects up to 30 kW in size. Net excess is credited to a customer's next bill at the utility's retail price and then granted to the utility at the end of a 12-month billing cycle. The state's two largest utilities Consumers Energy Company and Detroit Edison (also allows for net-metering of fuel cells and Stirling engines) are participating.

PSC Order, Case No. U-14346 can be accessed from here, http://efile.mpsc.state.mi.us/efile/docs/14346/0061.pdf

SB 937 can be accessed at: http://198.109.173.11/documents/1999-2000/publicact/pdf/2000-PA-0141.pdf

Detroit Edison Co

Citations

Detroit Edison Co - Rider No. 3 - standby service capacity is set by a contract and a customer charge and small reservation fee is paid each month based on the contracted demand. Actual usage is billed through moderate demand and energy charges, with a daily demand charge being based on the highest 30 minute demand. Distribution charges are all demand based and are based on the maximum demand from the previous period of June-Oct. Rate available at: http://www.dteenergy.com/businessCustomers/billingPayment/rates/electric/electricRates.htmlConsumers Energy Company - General Service Self Generation Rate GSG-2 - standby service capacity is set by a contract and a customer fee and small reservation fee is paid each month based on the contracted demand. Actual useage is charged based on real-time energy prices listed by the Midwest Independent Transmission System Operator. Billing demand is based on the maximum 15 minute demand of the month. Rate available at: http://www.consumersenergy.com/content.aspx?id=2005

IRP rules were adopted under 2008 PA 286 (Act 286), which is permissive and not mandatory as part of the certificate of necessity (CON) process. This Act suggests that utilities in the state, when they petition the Commission for a certificate of public necessity to add capacity, also file an IRP. Certain IRP guidelines are outlined in the Act, including, but not limited to the inclusion of projected energy efficiency program savings under any energy efficiency program requirements and the projected costs of that program. The Commissions' order regarding IRP application requirements and other criteria can be found under docket u-15896.

http://www.legislature.mi.gov/documents/2007-2008/publicact/pdf/2008-PA-0286.pdf and http://efile.mpsc.state.mi.us/efile/viewcase.php?casenum=15896&submit.x=30&submit.y=12

Consumers Energy Company is working on an electric supply plan, which is expected to be completed and submitted to the Michigan Public Service Commission in 2008.

MICHIGAN through 12/31/09Natural Gas Updated by / Date


In 2008, Michigan enacted The Clean, Renewable, and Energy Efficiency Act (Act 295 of 2008) Section 460.1001 requires utilities to file an energy optimization plan with the Commission that "shall be designed to delay the need for constructing new electric generating facilities" and establishes an energy optimization standard. As noted in 1.2.1 below, MI Act 286 of 2008 requires utilities to file an IRP when they seek a certificate of necessity to add capacity. According to comments submitted from MEEA on July 6, 2010, a number of bills (HB6063-6070) were introduced to amend Act 295 to increase the EE requirement to 2.0% of electricity and 1.5% of natural gas. None of these bills moved past the committee stage in 2009.

CPS 06/10; BSD 7/14/09

Act 295 of 2008, MCL 460.1001. http://legislature.mi.gov/doc.aspx?mcl-460-1001 Act 286 of 2008, MCL Section 460.6s. http://legislature.mi.gov/doc.aspx?mcl-460-6s

CPS 06/10; BSD 7/14/09

BSD 7/14/09

CPS 06/10; BSD 7/14/09

CPS 06/10; CS 4/09 and BSD on 8/14/09 (MISO comments)

Recommendation 2: Make a strong, long-term commitment to implement cost-effective energy efficiency as a resourceThe Clean, Renewable, and Energy Efficiency Act established an energy optimization standard. Act 295 of 2008, MCL 460.1077. Under Act 295, an objective of the “energy optimization” programs is to reduce long-term costs to utility ratepayers — in particular, by delaying the need for additional power plants. A companion bill to Act 295 was Act 286 of 2008. Act 286 incorporates energy efficiency into the "integrated resource planning" process.

CPS 06/10; BSD 7/14/09

Act 295 of 2008, MCL 460.1077. http://legislature.mi.gov/doc.aspx?mcl-460-1077Act 286 of 2008. https://sharepoint.raponline.org:4433/knowledgecenter/research/policygrids/Shared%20Documents/Policy%20Grid%20States/Michigan/MI%20Grid%202008/2008-PA-0286_ratecaselaw.pdf

BSD 8/14/09

Energy optimization plans are evaluated using the Utility System Resource Cost Test, analogous to the Program Administrator Test. Other cost benefits tests may be used to evaluate individual programs. Act 295 of 2008, MCL 460.1073. On November 30, 2009, the MPSC issued a report summarizing its activities to implement Act 295. In its report the PSC notes that on September 29, 2009, it approved financial incentive mechanisms for Detroit Edison (U-15806), Michigan Consolidated Gas Company (U-15890) and Consumers Energy (U-15805 & U-15889). (See URL below for access to documents in each of these dockets.) The PSC further notes that "The Commission authorized a mechanism that it believed would incent utilities to pursue cost effective energy efficiency programs that significantly exceed the statutory minimum. The incentive mechanism requires a utility to simultaneously meet two thresholds: exceed the statutory minimum targets; and exceed Utility System Resource Cost Test of 1.0." Report at p. 17.

Act 295 of 2008, MCL 460.1073. http://legislature.mi.gov/doc.aspx?mcl-460-1073MPSC report on Act 295 Implementation, November 30, 2009. http://www.michigan.gov/documents/mpsc/mpsc_energy_optimization_report_113009_302592_7.pdfURL to PSC we site for accfess to documents in financial incentive mechanism dockets. http://efile.mpsc.state.mi.us/efile/

CPS 07/10

ACEEE estimated potential of aggressive EE programs to reduce consumer use of natural gas and peak electricity generated by natural gas. This study was conducted by ACEEE to provide policymakers with reasonable assumptions of some achievable efficiency goals for their states.

Regional potential study prepared by ACEEE, January 2005. http://www.aceee.org/pubs/u051.htm

The Clean, Renewable, and Energy Efficiency Act (Act 295 of 2008) requires energy optimization plans that "include offerings for each customer class, including low-income residential." Act 295, MCL 460.1071. Act 295 reestablished utility energy efficiency programs in Michigan. The state's previous programs were discontinued in 1996. Act 295 gave the MPSC the authority to approve or reject efficiency plan proposals. To approve a plan, the Commission must determine that the plan meets the utility system resource cost test and is reasonable and prudent. In December 2008, the MPSC issued a Temporary Order in Case No. U-15800 that addressed filing requirements for the energy efficiency plans. By Order dated January 13, 2009, the PSC directed utilities to file their plans by April 3, 2009. The PSC required utilities to offer programs to customers in all sectors (residential, low-income, commercial, and industrial). The MPSC issued a report on the implementation of Act 295 on November 30, 2009. According to the report, all natural gas and electric utility customers in Michigan can participate in specific energy efficiency programs offered by their local utility. Efficiency United EO programs will begin launching on November 30, 2009. The report

CPS 06/10; BSD 7/14/09

BSD 7/14/09

BSD 7/14/09

Act 295 of 2008, MCL 460.1071. http://legislature.mi.gov/doc.aspx?mcl-460-1071PSC Temporary Order implementing Act 295, Case No. U-15800, December 4, 2008. http://efile.mpsc.state.mi.us/efile/docs/15800/0001.pdfMPSC report on Act 295 Implementaqtion, November 30, 2009. http://www.michigan.gov/documents/mpsc/mpsc_energy_optimization_report_113009_302592_7.pdf

The Clean, Renewable, and Energy Efficiency Act (Act 295) has an energy optimization standard, a provision for capped program cost recovery, and requires cost effectiveness. However, a funding requirement for all long-term, cost effective EE exceeds the mandate of the Act. Act 295, MCL 460.1077 and 460.1089

Act 295, MCL 460.1077. http://legislature.mi.gov/doc.aspx?mcl-460-1077 Act 295 ,MCL 460.1089. http://legislature.mi.gov/doc.aspx?mcl-460-1089

The energy optimization standard established in Act 295 sets MWh goals, subject to sales revenue expenditure limits. Act 295 establishes an energy efficiency resource standard (known as an “energy optimization savings standard”) for utilities. Electric utilities must achieve 0.3% savings in 2009; 0.5% in 2010; 0.75% in 2011; and 1.0% in 2012 and each year thereafter. Natural gas utilities must achieve 0.1% savings in 2009; 0.25% in 2010; 0.5% in 2011; and 0.75% in 2012 and each year thereafter. There is no penalty for failing to achieve the savings amounts, but there are incentives for exceeding the targets. Act 295, MCL 460.1077

See 2.5.1 above.

BSD 7/14/09


CPS 06/10; BSD 7/14/09

As a percentage of total annual retail natural gas sales of the prior year (except for 2008-9, which uses 2007 sales): 2009 - 0.1%, 2010 - 0.25%, 2011 - 0.5%, 2012-2015 - .75%. Act 295, MCL 460.1077. In 2009, the aggregate statewide gas energy savings target is 563,528 Mcf (563.5 Bcf).This is approximately 0.1 percent of the statewide retail gas sales level. The 2010 and 2011statewide energy savings levels progressively rise to 1,391,305 Mcf (1391.3 Bcf) and 2,741,886Mcf (2741.9 Bcf). This is 0.25 percent of retail sales and 0.50 percent of retail sales respectively.

CPS 06/10; BSD 7/14/09

Act 295, MCL 460.1077. http://legislature.mi.gov/doc.aspx?mcl-460-1077 MPSC report on Act 295 Implementation, November 30, 2009. http://www.michigan.gov/documents/mpsc/mpsc_energy_optimization_report_113009_302592_7.pdf

Energy optimization plans shall "include a process for obtaining an independent expert evaluation of the actual energy optimization programs to verify the incremental energy savings from each energy optimization program." Act 295, MCL 460.1071. The PSC has initiated an Energy Optimization Evaluation collaborative which began on September 1, 2009 to develop evaluation criteria. As provided in MCL 460.1191(2), the Commission must promulgate the rules within one year of the effective date of Act 295. On October 7, 2008, the Commission filed a request for rulemaking (RFR) with the State Office of Administrative Hearings and Rules (SOAHR). On the same date, SOAHR approved the RFR, which has been assigned the SOAHR docket number 2008-042 LG. On October 6, 2009, the Commission submitted the draft of the Act 295 rules to SOAHR. The rules are expected to be finalized within nine months, well in advance of the next EO plan filings. The rules are referred to as the Clean, Renewable and Efficient Energy Rules. The pending Commission rules can be viewed at the URL listed below.

CPS 06/10; BSD 7/14/09

Act 295, MCL 460.1071. http://legislature.mi.gov/doc.aspx?mcl-460-1071Pending PSC draft rules. http://www.state.mi.us/orr/emi/rules.asp?type=dept&id=LG.

BSD 7/14/09

BSD 7/14/09

BSD 7/14/09

The energy optimization plans draft filing requirements and instructions declare that, "No more than eight percent of the energy optimization budget should be allocated for program evaluation, measurement and verification activities to determine actual program energy savings." Docket U-15800, Order of December 4, 2008, Attachment E, page 7.

CPS 06/10; BSD 7/14/09

PSC Temporary Order implementing Act 295, Case No. U-15800, December 4, 2008. http://efile.mpsc.state.mi.us/efile/docs/15800/0001.pdf

The energy optimization performance standard is based on savings. Act 295, MCL 460.1077Act 295, MCL 460.1077. http://legislature.mi.gov/doc.aspx?mcl-460-1077

Energy optimization plans shall "include a process for obtaining an independent expert evaluation of the actual energy optimization programs to verify the incremental energy savings from each energy optimization program." Act 295, MCL 460.1071


The evaluations "shall be subject to public review and commission oversight." Act 295, MCL 460.1071




See 2.7.1 above.

"A provider's energy optimization programs or any part thereof, may be administered, at the provider's option, by the provider, alone or jointly with other providers, by a state agency, or by an appropriate experienced nonprofit organization selected after a competitive bid process." Act 295, MCL 460.1071 The MPSC issued a report on the implementation of Act 295 on November 30, 2009. In the report, the PSC summarizes the new EE delvery structure as follows: "Section 91 of PA 295, creates an option for utilities to offer energy optimization services through an energy optimization program administrator selected by the Commission. Section91(6) requires the administrator to be a “qualified nonprofit organization” and selected through acompetitive bid process. To fund the program, which has been named Efficiency United, the administrator will be paid directly by the participating utilities using funds collected fromcustomers through Commission approved surcharges on utility bills." Act 295, reestablished utility energy efficiency programs in Michigan. The state's previous programs were discontinued in 1996. Act 295 gave the MPSC the authority to approve or reject efficiency

CPS 06/10; BSD 7/14/09

Act 295, MCL 460.1071. http://legislature.mi.gov/doc.aspx?mcl-460-1071MPSC report on Act 295 Implementation, November 30, 2009. http://www.michigan.gov/documents/mpsc/mpsc_energy_optimization_report_113009_302592_7.pdf

Resource plans are filed only with an application for Generation Certificate of Need. MCL 460.6s and Docket U-15896. See 1.2.1 above.

CPS 06/10; BSD 8/14/09

CPS 06/10

MCL Section 460.6s. http://legislature.mi.gov/doc.aspx?mcl-460-6s Order Requesting Comment in Docket U-15896, December 23, 2008. http://efile.mpsc.state.mi.us/efile/docs/15896/0001.pdf

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CPS 06/10; BSD 7/15/09

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BSD 7/15/09

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EPA 5/10

Energy optimization plans may utilize educational programs. The Clean, Renewable, and Efficient Energy Act rquires the Commission to "actively pursue increasing public awareness of energy conservation and energy efficiency." Act 295, MCL 460.1071 and 460.1095

Act 295, MCL Section 460.1171. http://legislature.mi.gov/doc.aspx?mcl-460-1171 Act 295, MCL Section 460.1095. http://legislature.mi.gov/doc.aspx?mcl-460-1095

Recommendation 4: Promote sufficient, timely, and stable program funding to deliver energy efficiency where cost-effective.Act 295 establishes a mechanism for recovering the costs of programs implemented as part the utilities' Energy Optimization Plans and to comply with the Energy Optimization Performance Standard. Commission filings detailing the EO Plans should include provisions for cost recovery. Act 295, MCL 460.1089 and Docket U-15800, Order from December 4, 2008. The MPSC issued a report on the implementation of Act 295 on November 30, 2009. In that report the PSC noted that EE programs are supported by customer rates via a volumetric charge for residential customers and monthly "per meter" charges for commercial and industrial customers. (Volumetric charges are assessed on a per kWh or per therm basis. "Per meter" charges are based on the number of meters rather than the customer's energy consumption.) Each utility specifies these charges in plans that are filed with the MPSC. Spending for each utility is limited to 0.75% of total sales revenues in 2009, 1.0% in 2010, 1.5% in 2011, and 2.0% in 2012 and each year thereafter. (1.0% of total electric revenues in Michigan would currently be approximately $80 million per year.) Section 91 of Act 295, creates an option for utilities to offer energy optimization services through an energy optimization

CPS 06/10; BSD 7/15/09

BSD 7/15/09See 4.1.1 above.

BSD 8/14/09

CPS 06/10

See 4.1.1 above.

Act 295 ,MCL 460.1089. http://legislature.mi.gov/doc.aspx?mcl-460-1089PSC Temporary Order implementing Act 295, Case No. U-15800, December 4, 2008. http://efile.mpsc.state.mi.us/efile/docs/15800/0001.pdfMPUC report on PA 295 Implementation, November 30, 2009. http://www.michigan.gov/documents/mpsc/mpsc_energy_optimization_report_113009_302592_7.pdf

The MPSC issued a report on the implementation of Act 295 on November 30, 2009. In the report, the PSC noted that "Subpart B of Act 295 requires providers of electric or natural gas service to establish Energy Optimization (EO) programs for their customers. In compliance with Act 295, on December 4, 2008, the Commission issued a temporary Order in Case No. U-15800 to implement the Act. The temporary Order provided EO plan filing guidelines and resolved implementation issues for EO and renewable energy plans. EO plan submittals were required from all retail rate-regulated electric utilities, retail rate-regulated rural electric cooperatives, member-regulated electric cooperatives, municipally-owned electric utilities and retail rate-regulated gas utilities in Michigan. In total, 65 utilities filed EO plans with the Commission between February 16, 2009 and April 1, 2009. All MPUC report on PA 295 Implementation, November 30, 2009. http://www.michigan.gov/documents/mpsc/mpsc_energy_optimization_report_113009_302592_7.pdf

The Clean, Renewable, and Efficient Energy Act directs cost recovery shall not exceed 1.7% of total retails sales revenue for primary customers and 2.2% of total retial sales revenue for secondary customers and for residential customers. Act 295, MCL 460.1089

CPS 06/10; BSD 8/14/09

Act 295 ,MCL 460.1089. http://legislature.mi.gov/doc.aspx?mcl-460-1089


The Clean, Renewable, and Efficient Energy Act authorizes the implementaton of a symmetrical revenue decoupling true-up mechanism for utilities that spend more than 0.5% of revenues on energy optimization plans. The Commission is instructed to give deference to the mechanism proposed by the utility. Act 295, MCL 460.1089. Act 295 allows natural gas utilities to request a symmetrical revenue decoupling mechanism as long as they are spending at least 0.5% of total revenues (including natural gas commodity costs) on energy efficiency programs. The legislation does not mention electric utilities but there is an expectation that there will be decoupling proposals from at least one in 2009. Section 89(6) of Act 295 mandates decoupling for natrural gas. CMS will filing decoupling proposal in next rate case.

CPS 06.10; BSD 7/15/09

Act 295 ,MCL 460.1089. http://legislature.mi.gov/doc.aspx?mcl-460-1089

BSD 7/15/09

Act 295 contains two provisions whereby utilities can receive an economic incentive for implementing energy efficiency programs. First, they are allowed to request that EE program costs be capitalized and earn a normal rate of return. Second, they are allowed to request a performance incentive for shareholders if the utilities exceed the annual energy savings target. Performance incentives cannot exceed 15% of the total cost of the EE programs. Act 295, MCL 460.1075. On September 29, 2009, the Commission approved financial incentive mechanisms for Detroit Edison (U-15806), Michigan Consolidated Gas Company (U-15890) and Consumers Energy (U-15805 & U-15889). The MPSC issued a report on the implementation of Act 295 on November 30, 2009. In the report, the PSC noted that it "authorized a mechanism that it believed would incent utilities to pursue cost effective energy efficiency programs that significantly exceed the statutory minimum. The incentive mechanism requires a utility to simultaneously meet two thresholds: exceed the statutory minimum targets; and exceed Utility System Resource Cost Test (USRCT) of 1.0."

CPS 06/10; BSD 8/14/09

Act 295 ,MCL 460.1075. http://legislature.mi.gov/doc.aspx?mcl-460-1075URL to PSC web site for access to dockets relating to incentive provisions. http://efile.mpsc.state.mi.us/efile/ MPUC report on PA 295 Implementation, November 30, 2009. http://www.michigan.gov/documents/mpsc/mpsc_energy_optimization_report_113009_302592_7.pdf

BSD 7/16/09


CPS 06/10; BSD 7/16/09

CPS 06 10; BSD 7/16/09

MRD 04/10



ACH 5/2010

ACH 5/2010JR 5/2010

Citations


Note for 2010. Thye PUC's draft rule to implement PA 295 can be found at the following URL. http://www.state.mi.us/orr/emi/rules.asp?type=dept&id=LG&subId=2008%2D042+LG&subCat=Revision+Text According to comments submitted by MEEA on July 6, 2010, none of these bills (HB6063-6070) moved during the spring of 2010 either and, considering the upcoming election it's highly unlikely any action will occur on them this fall either.

Notes for 2010. According to comments submitted by MEEA on 07 06 10 - (GE MEEA 7/6/10) - MEEA analyzed the potential impact of the proposed doubling of the energy optimization standard (referred to in 1.1 above, and which did not pass in the 2010 spring legislative session either)http://www.mwalliance.org/meea-publications/meea-report-expanding-michigans-energy-optimization-standard

http://www.mwalliance.org/meea-publications/meea-report-expanding-michigans-energy-optimization-standard

Note for 2010. Detroit Edison's proposal for a revenue decoupling mechanism was approved in January 2010. The mechanism normalizes lost revenues for weather and has separate adjustments for each customer class. See cases U-15768 and U-15751. DTE authorized to implement a decoupling pilot: Order in case U-15768 and U-15751, 1/11/2010 -- program to be similar to that adopted for Consumers Energy in Case U-15645. It will be a 1-year pilot, continued contingent on meeting reporting requirements, exceeding benchmarks for the Energy Optimization Program, and committing to providing enhanced EE programs and DSM resources to all customer classes. Order effective 2/1/10. Mechamism to be symmetrical and to recocile non-fuel/non-purchase power revenue. Reconciliation proceeding to be filed on or before May 1 every year. Order in DTE Case: http://efile.mpsc.state.mi.us/efile/docs/15768/0379.pdf Decoupling on p. 62 Comments from MEEA 07/06/10

Note for 2010. DTE plans to deploy dynamic pricing pilots in the summmer of 2010 in conjunction with its AMI rollout. Apprpoval is pending. DTE was awarded SGIG funding for a program which includes a proposal that includes dynamic pricing for 5,000 customers.

Confirmed with Julie Baldwin at the MI Public Service Commission, [email protected], (517) 241-6115



Steve Kulesia, (517) 335-4558, [email protected]

Confirmed with Julie Baldwin at the MI Public Service Commission, [email protected], (517) 241-6115

MINNESOTA through 12/31/09; see citations at end of documentElectric


1.1

S

1.2

S, A

N/A


Y

Under the Minnesota Next Generation Energy Act of 2007 (Minnesota Statutes 2008 § 216B.241) sets energy savings goals for both natural gas and electric utilities of 1.5% of retail sales. Utilities may request a lower target, but in no case may be bve lower than 1% per year. Included under this goal are savings from energy conservation programs, rate design, energy codes, appliance standards, market transformation programs, programs to change human behavior, improvements to infrastructure, and waste heat recovery. Minnesota has a resource planning process in Section 216B.2422, which results in energy efficiency savings.


Y

Under Minnesota Statute 216B.2422, electric utilities are required to file resource plans according to rules adopted by the Commission. The resource planning process often results in utilities procuring efficiency in excess of the amount required by statute. The statute requires utilities to develop the least cost plan for meeting 50 and 75 percent of all new and refurbished capacity needs through a combination of conservation and renewable energy resources. Filing requirements for the resource plans are found in Minnesota Rules, 7843.0100, Subp. 9.


1.3

S

1.4

N

1.5


2.1

S

2.2

S

EE is an alternative to transmission based on a long-term transparent IRP or transmission system plan Y

Minnesota statute § 216B.243 Subd. 3 requires that demand-side alternatives to transmission lines be considered, and before lines over a certain size are constructed, the owner must show that there are no least-cost demand-side alternative solutions.





Y

Minnesota statute §216C.05 finds that "the state has a vital interest in providing for increased efficiency in energy consumption..." Additionally, Minnesota statute 216B.241 requires all public, cooperative and municipal utilities to develop a plan to achieve annual savings of at least 1 percent of annual retail sales, with a goal of 1.5 percent. The statute requires electric utilities to establish and fund DSM programs with 1.5-2.0% of revenues.


Y

Statute 216B.241, passed in 2007, requires the Commissioner of the Department of Commerce to consider the costs and benefits to ratepayers, the utility, participants, and society, when determining cost-effectiveness of CIP programs. The Office of Energy Security considers the societal test to be most important.

2.3

Y

2.4 N

2.5

S

b

R

N

S


In 2005 ACEEE estimated potential of aggressive EE programs to reduce consumer use of natural gas and peak electricity generated by natural gas.


Y

Programs reach all customer classes. Statute requires electric utilites to spend at least 0.1 percent (and beginning in 2010, 0.2 percent) of their gross operating revenue from residential customers in the state on low-income programs.

Funding requirements for all long-term, cost-effective EE have been established2.5.1 Quantitative MW and MWh savings goals have been established and are producing incremental investment. Y

The savings goal of 1.5% of energy sales, pursuant to Minnesota Statute 216B.241, will be translated into savings goals, based on 1.5% of the previous 3 years' average sales. Currently, statute requires the Commissioner of Commerce to establish goals when plans and budgets are approved.


Prior to the new statute goals were set as part of the Conservation Improvement Program (CIP) process pursuant to Minnesota Statute 216B.241. They were sometimes increased during the resource planning process under Minnesota Statute 216B.2422.


Minnesota's Renewable Portfolio Standard may be found in Minnesota Statute 216B.1691. Energy efficiency is not an eligible source to fulfill requirements under the RPS.

2.5

2.6

Y

Y-

Y-

Y-



The 1.5% savings goal translates to approx. 894,000 MWh for the entire state based on 2005 total retail energy sales. ACEEE issued its 2009 State Energy Efficiency Scorecard (Scorecard) in October 2009. Among other things, the Scorecard tracks annual EE program savings by each state in 2007 (the most recent year for which relevant data are available for all jurisdictions). According to the Scorecard, MN's total incremental electric savings (MWh) was 463,543 in 2007 which was 0.68% of savings as a percent of electricity sales and ranked MN 12th when compared with other states.


Y-

M&V Protocols have been established for custom efficiency projects exceeding 1,000,000 kWh in savings annually. M&V elements are including in both the decoupling and EE incentive dockets (Docket No. E,G999/CIP-06-1591); see 5.1.1 and 5.2.1.



Energy savings are the primary metric for the purposes of program reporting and making energy efficiency a resource


Pre- and post- monitoring is required for large custom projects


There are no requirements for independent program evaluations, though utilities implement evaluations on their own with independent evaluators. Complex custom projects require certification by a Professional Engineer.


Utilities must submit M&V plans and reports to Office of Energy Security engineering staff for review. Xcel Energy reports program evaluations to OES on an annual basis - see docket no. E002/M-90-1159

2.6

a, b, c

2.7 S

a

2.8

S

2.9

2.10 N


Project savings may be estimated through a combination of measurements and stipulated parameters, similar to IPMVP guidelines.

2.7.1 EE delivery structure has been established Y

Utilities administer CIP programs. See 1982 CIP statute (Minnesota Statutes 216B.241).

2.7.2 Delivery is via: (a) utility administration; (b) third-party administration; or (c) government

Resource plans are regularly updated Y

Resource plans under Minnesota Statute 216B.2422 are generally filed every two years.

2.9.1 Building Energy Codes for residential buildings are in place and regularly updated Y/N

The 2009 Minnesota State Building Code became effective June 1, 2009. The new residential energy code (Chapter 1322) is based on the 2006 IRC. REScheck is not available. There is no set schedule for code change cycle.


Y/N

The 2009 Minnesota State Building Code became effective June 1, 2009. The new commercial energy code (Chapter 1323) is based on ASHRAE 90.1-2004. COMcheck is not yet available. There is no set schedule for code change cycle.


2.11

EO, S


3.1

Y-/P


Y

A 2005 Executive Order committed state agencies to improving EE in state-ownded buildings by 10% in the following calendar year. Some state agencies were intending to meet the goal in future years as well. State agencies also are required to incorporate MN Sustainable Guidelines and EE programs provided by utilities in new construction projects, to implement improvements in existing buildings through partnerships with ESCOs, and to re-commission existing buildings to maximize utility rebates. The sustainable building design guidelines require new state buildings exceed the January 2004 state energy code by 30%. In 2008, an amendment required that 2% of a new building's total energy use be supplied by on-site solar or wind power, or a full cost and carbon analysis be supplied describing why the requirement is not cost-effective. The standards are designed to achieve energy use reductions of 60% in 2010 compared to 2003, increasing toward a target of 90% by 2025. In 2009 Minnesota Statute 16B.325 was amended to apply sustainable building guideline to all major renovations to state buildings.


Not all demand-side management programs approved by the Commission contained public education programs, but public education programs reach at least half of the utility's customers. Several utilities are participating in a program with OPOWER to deliver Home Energy Reports to customers. (Connexus Energy, Lake Country Power, Xcel & CenterPoint Energy, Austin Utilities, Owatonna Public Utilities, Minnesota Energy Resources Corporation.)Public education programs would include many indirect program activities that are included in utility conservation portfolios. In addition to the advertising and promotional activities utilities are engaged in, there are a number of advisory and analysis services that are available for business customers. On the residential program side there are

3.1

Y




3.2Y

N

small sponsor


4.1S


The EE incentive stakeholder group, consisting of environmental stakeholders, utilities, and the MN Office of Energy Security, is working to examine the present incentive mechanism and develop possible new mechanisms. See 5.2.1.


Xcel Energy, Minnesota Power, Minnesota Energy Resources

75% of state access to Home Performance with ENERGY STAR?What proportion is ue to regulated utility program? (who is sponsor)


Y

Minnesota Statutes 2005, 216B.241 Subd.1a. requires utilities to invest 1.5% - 2% of operating revenues for energy conservation programs. Utilities can be required to exceed this amount when additional cost-effective programs are identified. Subd. 2b allows for recovery of expenses. Costs are recovered in rates.


b

B77


B79


4.1

Y

4.2

4.3

4.4

5.1


A base energy efficiency spending level exists, with opportunity to justify higher level Y

Under Minnesota Statute 216B.241, 1.5 - 2.0% of gross operating revenues must be spent on efficiency. Utilities may be required by the Commission to exceed this amount, and have often exceeded this amount by identifying additional cost-effective efficiency during the resource planning process under Minnesota Statute 216B. 2422.


ACEEE issued its 2009 State Energy Efficiency Scorecard (Scorecard) in October 2009. Among other things, the Scorecard tracks spending on EE by each state in 2007 (the most recent year for which relevant data are available for all juriusdictions). According to the Scorecard, MN total spending on EE in 2007 was slightly over $91 million, which was 1.7% of total utility revenues and ranked MN 7th in state spending.




Y-

In 2007, MN enacted statute 216B.2412 which requires the PUC to "establish criteria and standards" by which decoupling could be adopted for utilities, and to authorize utilities "to participate in a pilot program to assess the merits of a rate-decoupling strategy to promote energy efficiency and conservation" subject to the criteria and standards. The Commission produced preliminary Criteria and Standards for utilities Pilot Decoupling Programs in Docket No. 08-132 on June 19, 2009. Utilities are required to provide a non-binding notice of intent by June 2010, and decoupling pilot programs are required to be filed with the comission by December 30, 2011.

5.1

S, R

a

5.2

S, R

5.3

Y-

5.4

Y-/P



Y

Minnesota Statute 216B.241 requires the PUC to review incentive plans and adjust the incentives as necessary to meet the new savings goals. Docket 08-133 was opened in 2008 and ongoing through the end of 2009. Status quo is based on Xcel's shared savings incentive plan submitted to the PUC in a joint settlement in Docket E,G-999/CI-98-1759.



According to the Orans publication, of the two largest utilities in Minnesota, one has inclining rates and one has flat rates.

5.4.1 Time sensitive rates in place Y- Many utilities have at least partially implemented some form

of time-variant rates; see 5.4.3 also.



In an August 2007 Order, the PUC did not require smart meters to be deployed by all utilities; instead, the PUC said it would modify the smart metering PURPA EPACT standard to include practices that achieve goals similar to smart metering, and would implement that modified standard on a utility-by-utility basis and consult it during rate cases and other appropriate times. Alliant Energy is slated to install 1,000,000 smart meters in WI, IA, and MN between 2008-2011.

5.4

Xcel offers on-bill financing.


7.1

R

7.2

S

7.3

7.4

Minnesota does not have a statewide policy on standby rates

U


Y-


Y-

Minnesota has general standards for the interconnection of DG up to 10 MW in size under docket no. E-999/CI-01-1023. There are standard application forms. An external disconnect is required. Insurance requirements vary by size, and are $300,000 for 40 kW and smaller. Insurance and engineering study costs can be quite high for larger systems. There is a dispute resolution process, and standard application fees. MN utilities have to file compliance tariffs with the PUC.

MN interconnection stds can be accessed from here, http://www.puc.state.mn.us/docs/orders/04-0131.pdf.


Y

Minnesota's net metering laws were first enacted with statute 216B.164 and the later with R. 7835.3300 and apply to all IOU's, MOUs, and electric cooperatives. All PURPA qualifying facilities (QF) up to 40 kW are allowed to net meter. Customers receive a check at the end of each month for net excess generation. Net excess is calculated at the "average retail utility energy rate," which is basically a utility's retail rate.

216B.164 can be accessed from here, http://www.dsireusa.org/documents/Incentives/MN01R.htm and R.7835.3300 can be accessed from here, http://www.dsireusa.org/documents/Incentives/MN01Ra.htm

A statewide exit fee policy is in place N There is no statewide policy on exit fees in Minnesota,

however no utilities in the state charge exit fees.

A statewide standby rate policy is in place N

Northern States Power Co (Exel Energy) - Standby Service Rider - standby service is totally demand based with a reservation fee based on contract demand. Actual usage is billed under the regular rate for the customer based on size. Billing demand is typically based on the higher of the maximum 15 minute demand of the month or 50% of the maximum set in the previous 11 months. Rate available at: http://www.xcelenergy.com/Minnesota/Company/About_Energy_and_Rates/Energy%20Prices%20%28Rates%20and%20Tariffs%29/Pages/MNEnergy_Rates.aspx

7.4

U

7.5U+

U

CitationsACEEE, 2009 State Energy Efficiency Scorecard, October 2009, http://aceee.org/pubs/e097.pdf?CFID=571117&CFTOKEN=50109276.Building Codes Assistance Project / Online Code Environment & Advocacy Network, MN page: http://bcap-ocean.org/state-country/minnesotaExecutive Office, Executive Order -5-15, 2005: http://www.governor.state.mn.us/priorities/governorsorders/executiveorders/2005/PROD005605.html; Martin Kushler, Dan York, and Patti Wittehttp, ACEEE, Potential Study, January 2005: http://aceee.org/pubs/u051full.pdf?CFID=4892327&CFTOKEN=35620476Minnesota Administrative Rules, 7690.0500, Rules for CIP Filings, 2005: https://www.revisor.mn.gov/rules/?id=7690&view=chapter#rule.7690.0500Minnesota Administrative Rules, 7843.0100, Subp. 9., 2005: https://www.revisor.mn.gov/rules/?id=7843&view=chapterMinnesota Statute, 16B.325, 2008: https://www.revisor.mn.gov/data/revisor/statute/2009/016B/2009-16B.325.pdf

Minnesota Statutes, 216B.1691, 2009: https://www.revisor.mn.gov/data/revisor/statute/2009/216B/2009-216B.1691.pdfMinnesota Statutes, 216B.2412, Sect. 6, 2007: http://www.revisor.leg.state.mn.us/bin/getpub.php?pubtype=STAT_CHAP&year=current&chapter=216B#stat.216B.2412.0Minnesota Statutes, 216B.242, 1993: https://www.revisor.mn.gov/data/revisor/statute/2009/216B/2009-216B.242.pdfMinnesota Statutes, 216B.243 Subd.3, 2009: http://www.revisor.leg.state.mn.us/stats/216B/243.htmlMinnesota Statutes, 216C.05, 2007: https://www.revisor.mn.gov/bin/getpub.php?type=s&num=216C.05&year=2007MN PUC, Investigation into Federal Energy Policy Act 2005, August 10, 2007: https://www.edockets.state.mn.us/EFiling/edockets/searchDocuments.do?method=showPoup&documentId={7C416F1F-C3FD-4F38-8336-7031ACAA097A}&documentTitle=4749423MN PUC, Measurement and Valuation Protocols, Docket No. 06-1591, November 22, 2006: https://www.edockets.state.mn.us/EFiling/edockets/searchDocuments.do?method=showPoup&documentId={39B74A35-B39B-4451-AEF1-8766A45E037E}&documentTitle=3578969

Minnesota Power - Standby Rider - standby service for customers with generation under 60 kW is available through their standard rate schedule. For customers with generation over 60 kW, a high reservation fee is charged each month. Actual usage is billed through high demand and energy charges. Billing demand is based on the maximum 15 minute demand period of the month with no ratchet. Rate available at: http://www.mnpower.com/customer_service/your_bill/electric_rates.htm


N

Minnesota has an IRP process outlined in Chapter 7843 of the Minnesota Administrative Rules, CHP is not directly mentioned. Utilities are required to explain the supply and demand circumstances, and the extent to which, each resource is used to meet the service needs.

https://www.revisor.leg.state.mn.us/rules/?id=7843Northern States Power Co (Excel Energy) - as part of their resource plan, Xcel energy is exploring ways to increase the use of CHP applications. Xcel is expected to file their next IRP in the summer of 2010. The last IRP was filed in 2007, with updates provided iin 2007. Below is the link to the MNPUC Order approving Xcel's most recent IRP, or at least a limited list of action steps from the 2007 IRP.

https://www.edockets.state.mn.us/EFiling/edockets/searchDocuments.do?method=showPoup&documentId={449D2F8F-D52A-474D-BC84-EDC046A53D98}&documentTitle=20098-40483-01Minnesota Power has partnered with some of its large industrial customers to create cogeneration projects (however, the current one is focused solely using wood resources in the region). Minnesota Power filed its latest resource plan for the years 2010 through 2024 in October 2008.

http://www.mnpower.com/earthfriendly/integrated_resource_plan.htm

Minnesota Statutes, §216B.241, 2007: https://www.revisor.mn.gov/statutes/?id=216B.241

https://www.revisor.leg.state.mn.us/rules/?id=7843

https://www.edockets.state.mn.us/EFiling/edockets/searchDocuments.do?method=showPoup&documentId=%7B449D2F8F-D52A-474D-BC84-EDC046A53D98%7D&documentTitle=20098-40483-01

http://www.mnpower.com/earthfriendly/integrated_resource_plan.htm

MN PUC, Order establishing criteria and standards for decoupling, Docket No. CI-08-132, June 19, 2009: https://www.edockets.state.mn.us/EFiling/edockets/searchDocuments.do?method=showPoup&documentId={6F09548B-9CA0-419B-9C13-5AF41E0A0551}&documentTitle=20096-38723-01Orans, Ren et al, Inclining for the Climate, Public Utilities Fortnightly, May 2009: http://www.fortnightly.com/archive/puf_archive_0509.cfm

MINNESOTA through 12/31/09; see citations at end of documentNatural Gas Updated by / Date


CK 7/10S

CK 7/10

Y-

Under the Minnesota Next Generation Energy Act of 2007 (Minnesota Statutes 2008 § 216B.241) sets energy savings goals for both natural gas and electric utilities of 1.5% of retail sales. Utilities may request a lower target, but in no case may be bve lower than 1% per year. Included under this goal are savings from energy conservation programs, rate design, energy codes, appliance standards, market transformation programs, programs to change human behavior, improvements to infrastructure, and waste heat recovery. The Commission and/or Governor may also require additional efficiency procurement. The Commissioner approved an average savings goal of 0.75% for 2010-2012 for CenterPoint Energy. This was the result of legislation that was passed by the Minnesota State Legislature in May of 2009 that allowed gas utilities that had demonstrated, through a potential study, that the 0.75% savings goal would be achievable over the three years following submission

N

Gas utilities are not required to do resource planning, but do file Conservation Improvement (CIP) plans under section 216B.241 of the Minnesota Statutes.


S

Y

CK 7/10S

Y

Minnesota statute §216C.05 finds that "the state has a vital interest in providing for increased efficiency in energy consumption..." Additionally, Minnesota statute 216B.241 requires all public and municipal utilities to develop a plan to achieve annual savings of at least 1 percent of annual retail sales, with a goal of 1.5 percent. The statute requires gas utilities to establish and fund DSM programs with 0.5% of revenues.

Statute 216B.241, passed in 2007, requires the Commissioner of the Department of Commerce to consider the costs and benefits to ratepayers, the utility, participants, and society, when determining cost-effectiveness of CIP programs. The Office of Energy Security considers the societal test to be most important.

Y

BH 7/09, CK 7/10

Y

BH 6/09, CK 7/10

CK 7/10S

b

CK 7/10R

N

CK 7/10

A study of MN gas EE potential was commissioned by CenterPoint Energy, Integrys, and Xcel Energy and was completed by Navigent in March 2009. In 2005 ACEEE estimated potential of aggressive EE programs to reduce consumer use of natural gas and peak electricity generated by natural gas.

Programs reach all customer classes. Statute requires gas utilites to spend at least 0.2 percent of their gross operating revenue from residential customers in the state on low-income programs.

Y

The savings goal of 1.5% of energy sales, pursuant to Minnesota Statute 216B.241, will be translated into savings goals, based on 1.5% of the previous 3 years' average sales. Currently, statute requires the Commissioner of Commerce to establish goals when plans and budgets are approved.

Prior to the new statute goals were set as part of the Conservation Improvement Program (CIP) process pursuant to Minnesota Statute 216B.241.

CK 7/10

Y-

CK 7/10

YCK 7/10

Y-CK 7/10

Y-

CK 7/10

Y-

CK 7/10

The 1.5% savings goal translates to approx. 4,641,000 MCF for the entire state based on 2005 total retail energy sales

M&V Protocols have been established for custom efficiency projects exceeding 20,000 MCF in savings annually (see Docket No. E,G999/CIP-06-1591.)

Energy savings are the primary metric for the purposes of program reporting and making energy efficiency a resource

Pre- and post- monitoring is required for large custom projects

There are no requirements for independent program evaluations, though utilities implement evaluations on their own with independent evaluators. Complex custom projects require certification by a Professional Engineer.

Utilities must submit M&V plans and reports to Office of Energy Security engineering staff for review. Xcel Energy reports program evaluations to OES on an annual basis - see docket no. E002/M-90-1159

a, b, c

CK 7/10

CK 7/10

S

a

CK 7/10

BH 6/09, CK 7/10

BH 6/09, CK 7/10

CK 7/10

Project savings may be estimated through a combination of measurements and stipulated parameters, similar to IPMVP guidelines.

Y

Utilities administer CIP programs. See 1982 CIP statute. (Minnesota Statutes 216B.241).

BH 6/09, CK 7/10


Y-/P

Not all demand-side management programs approved by the Commission contained public education programs, but public education programs reach at least half of the utility's customers. Several utilities are participating in a program with OPOWER to deliver Home Energy Reports to customers. (Connexus Energy, Lake Country Power, Xcel & CenterPoint Energy, Austin Utilities, Owatonna Public Utilities, Minnesota Energy Resources Corporation.)Public education programs would include many indirect program activities that are included in utility conservation portfolios. In addition to the advertising and promotional activities utilities are engaged in, there are a number of advisory and analysis services

Personal communication with Jeffrey Haase, MN Office of Energy Security, 5/14/10

Y

BH 7/09

EPA 5/10


CK 7/10S

The EE incentive stakeholder group, consisting of environmental stakeholders, utilities, and the MN Office of Energy Security, is working to examine the present incentive mechanism and develop possible new mechanisms. See 5.2.1.

Y

Minnesota Statutes 2005, 216B.24 1 Subd.1a. requires utilities to invest 0.5 percent of operating revenues for energy conservation programs. Utilities can be required to exceed this amount when additional cost-effective programs are identified. Subd. 2b allows for recovery of expenses. Costs are recovered in rates.

b

Y

CK 7/10

CK 7/10

BH 7/09, CK 7/10

Y

Under Minnesota Statute 216B.241, 0.5% of gross operating revenues must be spent on efficiency. Utilities may be required to procure additional efficiency by the Commission under certain circumstances.


Y-

In 2007, MN enacted statute 216B.2412 which requires the PUC to "establish criteria and standards" by which decoupling could be adopted for utilities, and to authorize utilities "to participate in a pilot program to assess the merits of a rate-decoupling strategy to promote energy efficiency and conservation" subject to the criteria and standards. The Commission produced preliminary Criteria and Standards for utilities Pilot Decoupling Programs in Docket No. 08-132 on June 19, 2009. Utilities are required to provide a non-binding notice of intent by June 2010, and decoupling pilot programs are required to be filed with the comission by December 30, 2011. A rate case for CenterPoint Energy proposed on 11/3/08 proposed a decoupling pilot program for their small volume firm customers. This docket was ongoing at the end of 2009.

S, R

a

BH 7/09, CK 7/10S, R

Y-

CK 7/10

BH 6/09, CK 7/10

BH 6/09, CK 7/10

Y

Minnesota Statute 216B.241 requires the PUC to review incentive plans and adjust the incentives as necessary to meet the new savings goals. Docket 08-133 was opened in 2008 and ongoing through the end of 2009. Status quo is based on Xcel's shared savings incentive plan submitted to the PUC in a joint settlement in Docket E,G-999/CI-98-1759.

According to the Orans publication, of the two largest utilities in Minnesota, one has inclining rates and one has flat rates.

NStatute (216B.242) allows inverted rate structure pilot programs to encourage conservation.


MRD 4/2010

ACH 7/2010



ACH 7/2010JR 6/2010

CitationsACEEE, 2009 State Energy Efficiency Scorecard, October 2009, http://aceee.org/pubs/e097.pdf?CFID=571117&CFTOKEN=50109276.Building Codes Assistance Project / Online Code Environment & Advocacy Network, MN page: http://bcap-ocean.org/state-country/minnesotaExecutive Office, Executive Order -5-15, 2005: http://www.governor.state.mn.us/priorities/governorsorders/executiveorders/2005/PROD005605.html; Martin Kushler, Dan York, and Patti Wittehttp, ACEEE, Potential Study, January 2005: http://aceee.org/pubs/u051full.pdf?CFID=4892327&CFTOKEN=35620476Minnesota Administrative Rules, 7690.0500, Rules for CIP Filings, 2005: https://www.revisor.mn.gov/rules/?id=7690&view=chapter#rule.7690.0500Minnesota Administrative Rules, 7843.0100, Subp. 9., 2005: https://www.revisor.mn.gov/rules/?id=7843&view=chapterMinnesota Statute, 16B.325, 2008: https://www.revisor.mn.gov/data/revisor/statute/2009/016B/2009-16B.325.pdf

Minnesota Statutes, 216B.1691, 2009: https://www.revisor.mn.gov/data/revisor/statute/2009/216B/2009-216B.1691.pdfMinnesota Statutes, 216B.2412, Sect. 6, 2007: http://www.revisor.leg.state.mn.us/bin/getpub.php?pubtype=STAT_CHAP&year=current&chapter=216B#stat.216B.2412.0Minnesota Statutes, 216B.242, 1993: https://www.revisor.mn.gov/data/revisor/statute/2009/216B/2009-216B.242.pdf

Minnesota Statutes, 216C.05, 2007: https://www.revisor.mn.gov/bin/getpub.php?type=s&num=216C.05&year=2007MN PUC, Investigation into Federal Energy Policy Act 2005, August 10, 2007: https://www.edockets.state.mn.us/EFiling/edockets/searchDocuments.do?method=showPoup&documentId={7C416F1F-C3FD-4F38-8336-7031ACAA097A}&documentTitle=4749423MN PUC, Measurement and Valuation Protocols, Docket No. 06-1591, November 22, 2006: https://www.edockets.state.mn.us/EFiling/edockets/searchDocuments.do?method=showPoup&documentId={39B74A35-B39B-4451-AEF1-8766A45E037E}&documentTitle=3578969

MN PUC, Order establishing criteria and standards for decoupling, Docket No. CI-08-132, June 19, 2009: https://www.edockets.state.mn.us/EFiling/edockets/searchDocuments.do?method=showPoup&documentId={6F09548B-9CA0-419B-9C13-5AF41E0A0551}&documentTitle=20096-38723-01Orans, Ren et al, Inclining for the Climate, Public Utilities Fortnightly, May 2009: http://www.fortnightly.com/archive/puf_archive_0509.cfm

Note from reviewer and CK: A statewide electric DSM potential study is was completed in 2010 by Summit Blue. See: http://www.state.mn.us/mn/externalDocs/Commerce/CARD_Minnesota_Electric_Energy_Efficiency_Potential_Study__Executi_063010013802_DSMPotentialsReportExecutiveSummary.pdf. This study was funded through an annual R&D fund created in 2007 legislation.

Per the Commission's Order on January 27, 2010 in Docket No. E,G-999/CI-08-133, the Commission established a new Shared Savings DSM Incentive mechanism. The Order establishes conservation incentives for each utility as well as details agreed-upon elements for the new model. Additionally, the Order states that a utility's incentive shall be adjusted in the event that utility has an approved decoupling program. Per the Commission's order on April 12, 2010 in the same docket, the Commission reduced the calibration level for CenterPoint Energy's incentive in recognition of the Company's approved decoupling pilot program.

See Final Order in Docket CI-08-1075 dated January 11, 2010. GE-MEEA: Minnesota Energy Resources Corporation has filed a notice of intent on May 27, 2010. Search for Document ID: 20105-50879-01 in the MN PUC Docket From state reviewer: Per the Commission's Final Order dated January 11, 2010 in Docket No. G-008/GR-08-1075, the Commission approved a limited decoupling pilot program for CenterPoint Energy's residential and small C&I customers. The Commission also approved an inverted block rate structure for residential consumers as part of the pilot settlement. Per the Commission's order regarding establishment of an evaluation plan, dated June 30, 2010, the decoupling rate adjustment's scheduled implementation (March 1, 2011) is contingent on an approved evaluation plan.

Additionally, per the Commission's request for non-binding notice of intent from parties planning to file decoupling pilot proposals, Minnesota Energy Resources Corp indicated it plans to propose a pilot in its

See Final Order in Docket 08-133 dated January 27, 2010

Confirmed with Stuart Mitchell at PUC [email protected] (651) 201-2242

MN PUC, Investigation into Federal Energy Policy Act 2005, August 10, 2007: https://www.edockets.state.mn.us/EFiling/edockets/searchDocuments.do?method=showPoup&documentId={7C416F1F-C3FD-4F38-8336-7031ACAA097A}&documentTitle=4749423MN PUC, Measurement and Valuation Protocols, Docket No. 06-1591, November 22, 2006: https://www.edockets.state.mn.us/EFiling/edockets/searchDocuments.do?method=showPoup&documentId={39B74A35-B39B-4451-AEF1-8766A45E037E}&documentTitle=3578969

Susan Mackenzie (651) 201-2241 or [email protected]

MN PUC, Order establishing criteria and standards for decoupling, Docket No. CI-08-132, June 19, 2009: https://www.edockets.state.mn.us/EFiling/edockets/searchDocuments.do?method=showPoup&documentId={6F09548B-9CA0-419B-9C13-5AF41E0A0551}&documentTitle=20096-38723-01

MISSOURI through 12/31/09: See citations at end of documentElectric


1.1

A,S

1.2

A, R

N/A

1.3 N

1.4


1.5


Y


Y-





Y

1.5


2.1


Y-

S

2.2

A, S

2.3

Y

Y

A


Y+



2.4 Y-

S

2.5

N

S, R






N

2.5


2.6

A

2.6.1.1 M&V is adequately funded N

N

N

N

Y

a, c

2.7

Y


N







2.7

a

2.8


Y

2.9

N/N

N/N

2.10 N

2.11Y-







3.1

Y

Y




3.2 N

N


4.1


b



75% of state access to ENERGY STAR New HomesWhat proportion is due to regulated utility program? (who is sponsor)75% of state access to Home Performance with ENERGY STAR?


Y


B78


B80


4.1


Y-

R

4.2 N

4.3

4.4

5.1

N

S






5.1

5.2

N

5.3

N

5.4


Y-


Y


Y-

N







7.1

S

S

7.2


S


7.4


U


Y-

Y

N

N

7.4

U

7.5

U-

U

CitationsACEEE, 2009 State Energy Efficiency Scorecard, October 2009, http://aceee.org/pubs/e097.pdf?CFID=571117&CFTOKEN=50109276.

AmerenUE, Personal Energy Manager, Smartgrid Fact Sheet, 2009: http://www.ameren.com/Media/Documents/FactSheets/SmartGrid.pdfAmerenUE, Real Time Pricing Program, June 1, 2008: https://www2.ameren.com/RetailEnergy/realtimeprices.aspxKCP&L, Real Time Pricing Schedule, May 14, 2006: http://www.kcpl.com/about/MORates/Sched26.pdfMEEA, MIDWEST RESIDENTIAL MARKET ASSESSMENT AND DSM POTENTIAL STUDY, March 2006: http://www.mwalliance.org/sites/default/files/uploads/MEEA_2006_Midwest%20Market%20Assessment%20Final%20Report.pdfMissouri DNR, CAIR Annual NOx set aside rules, January 2008: http://www.dnr.mo.gov/pubs/pub2234.pdfMissouri DNR, NOx SIP Call, April 26, 2005: http://www.dnr.mo.gov/env/apcp/Rules/nox_sipcall/nox_sip_bdgt_demo_mo.pdfMO Code of State Regulations, 4 CSR 240-22 et seq: http://www.sos.mo.gov/adrules/csr/current/4csr/4c240-22.pdfMO Corporation Commission, Order of Rulemaking, Case No. EX-2009-0252, 7/9/09 : https://www.efis.psc.mo.gov/mpsc/commoncomponents/view_itemno_details.asp?caseno=EX-2009-0252&attach_id=2010000140MO Corporation Commission, Order, Case ER-2007-0004, 2007: https://www.efis.psc.mo.gov/mpsc/commoncomponents/view_itemno_details.asp?caseno=ER-2007-0004&attach_id=2007026935MO Corporation Commission, Order, Case no EO-2006-0496, July 2007: https://www.efis.psc.mo.gov/mpsc/commoncomponents/view_itemno_details.asp?caseno=EO-2006-0496&attach_id=2008000680MO Corporation Commission, Report and Order, Case No. GR-2006-0387, February 22, 2007: https://www.efis.psc.mo.gov/mpsc/commoncomponents/view_itemno_details.asp?caseno=GR-2006-0387&attach_id=2007018856MO Corporation Commission, Stipulation and Agreement, Case GR-2007-0208, 2007: https://www.efis.psc.mo.gov/mpsc/commoncomponents/view_itemno_details.asp?caseno=GR-2007-0208&attach_id=2008000453MO Corporation Commissions, Report and Order, Case No. GR-2006-0422, March 22, 2007: https://www.efis.psc.mo.gov/mpsc/commoncomponents/view_itemno_details.asp?caseno=GR-2006-0422&attach_id=2007021032MO Executive Office, Executive Order 09-18, 2009: http://governor.mo.gov/orders/2009/09-18.htmMO Legislature, HB 734, 2009: http://www.house.mo.gov/billtracking/bills091/biltxt/truly/HB0734T.HTMMO Legislature, Proposition C, 2008: http://www.sos.mo.gov/elections/2008petitions/2008-031.aspMO Legislature, Senate Bill 1181, 2008: http://www.senate.mo.gov/08info/pdf-bill/tat/SB1181.pdfMO Legislature, Senate Bill 179, 2005: http://www.senate.mo.gov/05info/billtext/tat/SB179.htm


N

http://www.sos.mo.gov/adrules/csr/current/4csr/4c240-22.pdf and

http://www.sos.mo.gov/adrules/csr/current/4csr/4c240-22.pdf%20and

MO Legislature, Senate Bill 376, 2009: http://www.senate.mo.gov/09info/pdf-bill/tat/sb376.pdfMO Revised Statutes, Section 393.1040, January 1, 2008: http://www.moga.mo.gov/statutes/C300-399/3930001040.HTMMO Revised Statutes, Section 393.1075.1 et seq, August 29, 2009: http://www.moga.mo.gov/statutes/C300-399/3930001075.HTM

MISSOURI through 12/31/09: See citations at end of documentElectric Natural Gas


N/A

N

N

N/A

IRP rules in 4 CSR 240-22 require utilities to consider demand and supply options on an equal basis when conducting resource planning. See details on resource planning process in Section 1.2.1 below. The Missouri Public Service Commission opened Case No. EW-2009-0412 on May 15, 2009, to revise the IRP rule in Missouri. The requirements from SB 376 are being discussed in this case. The Missouri Energy Efficiency Investment Act Section 393.1075.3 passed in 2009 (SB 376) states that it is "...the policy of the state to value demand side investments equal to traditional investments in supply and delivery infrastructure..." The Act also requires that Missouri achieve all cost-effective demand-side savings.

Missouri is returning to IRP after several years of allowing utilities to file a waiver from existing IRP rules. The waiver process expired in 2005. Resource Plan filings have been re-instituted and updated for KCPL (EE-2008-0034), Empire (EO-2008-0069), AmerenUE (EO-2007-0409) and GMO (EE-2009-0237). The IRP is required by Missouri Code of State Regulations, 4 CSR 240-22. Docket EW-2009-0412 was opened May 15, 2009 to investigate and draft revision of the IRP rules. Missouri's regulated electric utilities are required by the IRP rule in Missouri to file an IRP with the Missouri Public Service Commission every three years. One utility, KCP&L filed its latest IRP in Case No. EE-2009-0237.

N

MO provides a NOx set-aside of 300 allowances (.5% of total allowances) under its CAIR statewide annual NOx program. EE, CHP and RE generation projects are eligible. The set-aside was oversubscribed in 2009 and 2010. See CAIR and NOx citations at end of document.


Y-

Y

N

Statute section 393.1040, effective January 1, 2008 states that "it is also the policy of this state to encourage electrical corporations to develop and administer energy efficiency initiatives that reduce the annual growth in energy consumption and the need to build additional electric generation capacity." SB 376 passed in 2009, establishes two state policies regarding energy efficiency:(1) it shall be valued equal to supply side and (2) "the commission shall permit electric corporations to implement commission-approved demand-side programs proposed pursuant to this section with a goal of achieving all cost-effective demand-side savings (Section 393.1075.4).

4 CSR 240-22.050(7) states that "the utility shall evaluate the cost-effectiveness of each potential demand-side program developed. . . using the total resource cost test. The utility cost test shall also be peformed for purposes of comarison." Additionally, Senate Bill No. 376, passed in 2009 and codified in section 393.1124(4) states that "the commission shall consider the total resource cost test a preferred cost-effectiveness test." The statute allows programs targeted to low-income customers and general education campaigns to not meet the cost-effectiveness test so long as the commission determines it is in the public interest.

In 2005 ACEEE estimated potential of aggressive EE programs to reduce consumer use of natural gas and peak electricity generated by natural gas. Additionally, the Midwest Energy Efficiency Alliance commissioned a potential study from Summit Blue Consulting in 2006 addressing DSM potential in the 13 MEEA states.

4 CSR 240-22.050(1) requires utilities to develop a menu of measures that cover "all major customer classes, including at least residential, commercial, and industrial and interruptible" in their resource planning process. Existing programs reach all customers, including low-income customers. 4 CSR 240-22.050(6) requires the utility to "develop a set of potential demand-side programs that are desgned to deliver an appropriate selection of end-use measure to each market segment."

Y-

Senate Bill 376, passed in 2009 and codified in 393.1075.4 states that "the commission shall permit electric corporations to implement commission-approved demand-side programs proposed pursuant to this section with a goal of achieving all cost-effective demand-side savings." Cost-recovery is allowed to fund these programs.

In 11/08, voters approved Proposition C, which repealed the state's existing voluntary renewable energy and EE objective and replaced it with an expanded, mandatory renewable electricity standard. EE measures are not eligible toward the new standard. The PSC is hosting a series of workshops to consider changes to the Commission regulation that requires Missouri’s investor-owned electric utilities to consider and analyze their resource plans, resource acquisition strategies, and investment decisions with the intent to provide safe, reliable and efficient energy services to the public at just and reasonable rates. The Commission is considering ways to bring the regulation more in line with Missouri’s Renewable Energy Standard statute. See File No. EW-2009-0412 re: Chapter 22 Planning Revisions Workshops. The rulemaking process to implement Proposition C (Renewal Energy Standards) is still ongoing by both the Missouri Public Service Commission (PSC) and the Missouri Department of Natural Resources (DNR).

N

N

N

Y

N

ACEEE issued its 2009 State Energy Efficiency Scorecard (Scorecard) in October 2009. Among other things, the Scorecard tracks annual EE program savings by each state in 2007 (the most recent year for which relevant data are available for all jurisdictions). According to the Scorecard, MO's total incremental electric savings (MWh) was 4,516 in 2007 which was 0.01% of savings as a percent of electricity sales and ranked MO 36th when compared with other states.

Under 4 CSR 240-22.050(9) utilities are required to develop an evaluation process to asess load impacts and improve program delivery. Processes used are not currently robust. There was no process underway in 2009 regarding development of M&V protocols.

Under 4 CSR 240-22.050(9)(A) "each demand-side program that is part of the utility's preferred resource plan shall be subjected to an ongoing evaluation process…"

4 CSR 240-22.050(9) requires the utility to evaluate their own demand-side plans.

4 CSR 240-22.050(11) requires the utilities file a report of their DSM programs that contains (d) "documentation of the methods and ssumptions used to develop the avoided cost estimates."

Senate Bill 376, passed in 2009 and codified in 393.1075.4 states that "the commission shall permit electric corporations to implement commission-approved demand-side programs proposed pursuant to this section with a goal of achieving all cost-effective demand-side savings."

a

N

Delivery of utility-funded EE programs is via the regulated utilities. Some choose to administer the programs "in-house" while others have chosen to contract a third party.

4 CSR 240-22.080(1) states that "each electric utility which sold more than one million megawatt-hours to Missouri retail electric customers for calendar year 1991 shall make a filing with the commission every three (3) years that demonstrates compliance with the provisions of this chapter."

No code statewide. Some local jurisdictions have adopted codes. State-owned residential buildings must comply with the latest edition of MEC or ANSI/ASHRAE 90.2-1993.

No code statewide. Some local jurisdictions have adopted codes. State-owned commercial buildings greater than 5,000 square feet must comply with ASHRAE/IESNA 90.1-1989 until 7/1/09; after that date, all state buildings must comply with the 2006 IECC.

In 2008, SB 1181 established that no person shall sell, offer for sale, or install any new product in the state unless the product meets the minimum energy efficiency standards as established by the State. In 2009, HB 734 required that all appliances purchased all, or in part, with state money must be Energy Star compliant unless the added cost exceeds the projected energy cost savings. The Advisory Group was created in August 2009, but has not yet published standards.

Missouri requires life-cycle cost analyses with 25-year time horizon for all new construction of state buildings and substantial renovations when major energy systems are involved. In 2008, the state enacted legislation requiring EE standards for new state buildings and reovations larger than 5,000 square feet to be developed by 1/1/09 that are at least as stringent as the 2006 IECC. Discussions have been underway with a representative code official. A final version of the legislation should be finished in 2010. In 2009, HB 734 required that all appliances purchased all, or in part, with state money must be Energy Star compliant unless the added cost exceeds the projected energy cost savings. The Advisory Group was created in August 2009, but has not yet published standards. In 2009, Missouri Governor Jay Nixon issued Executive Order 09-18 requiring a 2% annual savings in energy reductions in all state buildings.


Y

Y


Y-

b

There are demand-side advisory groups for 3 of the 4 electric utilities; and a collaborative for one electric utility.

The Empire District Electric Company, White River Valley Electric Cooperative

MO DNR with Columbia Light & Power and KC Light & Power making progress

Costs are recovered in rates. Utilities are allowed to amortize costs and recover a return on investments in efficiency. Senate Bill 376, which passed in 2009 and is codified in 393.1075.4, permits utilities to recover the cost of commission-approved demand-side programs if "the programs are approved by the commission, result in energy or demand savings and are beneficial to all customers in the customer class in which the programs are proposed, regardless of whether the programs are utilized by all customers." The Commission promulgated rules pursuant to Senate Bill 376, which were entered in Case No. EX-2009-0252 on July 6, 2009. The Commission opened a docket on AmerenUE's petition for rate recovery under the new rules in File No. ER-2010-0165 in November 2009. No decision was reached in 2009.

E83


R

N

N

R

IRP implementation plans are for 3 years. KCPL agreed to a 5 year DSM budget in its 2005 regulatory plan case, Docket EO-2005-0329. A decision in a rate case for Aquila, Inc. in 2007 in Case ER-2007-0004 stated that the company will implement only cost-effective programs as determined in a separate proceeding, with a funding goal of 1% of annual revenue by 2010. The Commission opened a docket on AmerenUE's petition for rate recovery under the new rules in File No. ER-2010-0165 in November 2009. No decision was reached in 2009.

Y

ACEEE issued its 2009 State Energy Efficiency Scorecard (Scorecard) in October 2009. Among other things, the Scorecard tracks spending on EE by each state in 2007 (the most recent year for which relevant data are available for all juriusdictions). According to the Scorecard, MO total spending on EE in 2007 was slightly over $1.3 million, which was less than 0.1% of total utility revenues and ranked MO 41st in state spending.

Recommendation 5: Modify policies to align utility incentives with the delivery of cost-effective energy efficiency and modify ratemaking practices to

Senate Bill 376, passed in 2009 and states in section 393.1075.3(2) that the commission shall "ensure that utility financial incentives are aligned with helping customers use energy more efficiently and in a manner that sustains or enhances utility customers' incentives to use energy more efficiently..." No rules or other mechanisms are in place to implement this policy to date.

Y

See 5.1.1 above

N

Y

N

N

N

Y-

N


AmerenUE started a Real Time Pricing program effective June 1, 2008. KCP&L started a RTP program effective May 14, 2006. According to a local contact, all utilities have some voluntary time-of-use rates in place. However, very few customers choose to be on these rates.

AmerenUE developed a pilot program in the summer of 2009 called Personal Energy Manager. AmerenUE is reviewing the results of the pilot and will possibly expand it in 2010.

Some utilities have limited AMI and RTP programs in place. According to a local contact, two utilities have AMR, the third is implementing AMR. In July 2007, in Case No. EO-2006-0496, the PSC decided not to require utilities to adopt the PURPA Standard regarding time-based metering and communications, because many utilities already provided time-based rates.

PACE is being considered, but is not currently being implemented.

Missouri does not have a statewide policy on standby rates

Missouri’s rules under SB 54 of 2007 apply only to net metered solar thermal electric, photovoltaic, wind, hydroelectric, or fuel cell systems using renewable fuel, with a capacity up to 100 kW or 5% of a utility's single-hour peak load during the previous year. An application must be accompanied by a plan that includes a wiring diagram and specifications for the generating unit. The customer must submit a certification from a professional electrician or engineer that the installation meets the interconnection requirements of the various codes and other requirements. The utility is required to review and respond within 30 days of receipt for small systems (10 kilowatts or less) and 90 days for all other systems (up to 100 kilowatts).There a minimum liability insurance requirement of $100,000 for systems up to 10 kW and $1 million for larger systems. The requirements may be met with an additional insurance policy or an endorsement on an existing policy. All system owners must indemnify the utility. Utilities are authorized to require an external disconnect. (RSMo §386.890 http://www.moga.mo.gov/statutes/C300-399/3860000890.HTM)

§ 386.890 R.S.Mo. can be accessed from here, http://www.moga.mo.gov/statutes/c300-399/3860000890.htmSB 54 and other information about interconnection of net metered systems can be found here: http://www.dnr.mo.gov/energy/renewables/solar10.htmMissouri enacted legislation in 2007, SB 54 of 2007, requiring all electric utilities to offer net metering to systems up to 100 kW in capacity. Wind, solar-thermal electric, hydro, PV, fuel cells using hydrogen and potentially other systems/fuels are eligible. Net excess generation (NEG) is credited to the customer's next bill at the utility's avoided cost rate and is granted to the utility at the end of a 12 month billing cycle.

SB 54 can be accessed from here, http://www.dsireusa.org/documents/Incentives/MO07R.pdfThere is no statewide policy on exit fees in Missouri, however no utilities in the state charge exit fees.

Kansas City Power & Light Co - Schedule SGC - standby rate = regular bill customer and demand charges (if customer was not generating on-site) + real time pricing of standby power + reactive power charge + facilities & admin charges. Billing demand is based on maximum 15 minute demand with no ratchet. Rate available at: http://www.kcpl.com/about/ratesrules.html


AmerenUE, Personal Energy Manager, Smartgrid Fact Sheet, 2009: http://www.ameren.com/Media/Documents/FactSheets/SmartGrid.pdfAmerenUE, Real Time Pricing Program, June 1, 2008: https://www2.ameren.com/RetailEnergy/realtimeprices.aspxKCP&L, Real Time Pricing Schedule, May 14, 2006: http://www.kcpl.com/about/MORates/Sched26.pdfMEEA, MIDWEST RESIDENTIAL MARKET ASSESSMENT AND DSM POTENTIAL STUDY, March 2006: http://www.mwalliance.org/sites/default/files/uploads/MEEA_2006_Midwest%20Market%20Assessment%20Final%20Report.pdfMissouri DNR, CAIR Annual NOx set aside rules, January 2008: http://www.dnr.mo.gov/pubs/pub2234.pdfMissouri DNR, NOx SIP Call, April 26, 2005: http://www.dnr.mo.gov/env/apcp/Rules/nox_sipcall/nox_sip_bdgt_demo_mo.pdfMO Code of State Regulations, 4 CSR 240-22 et seq: http://www.sos.mo.gov/adrules/csr/current/4csr/4c240-22.pdfMO Corporation Commission, Order of Rulemaking, Case No. EX-2009-0252, 7/9/09 : https://www.efis.psc.mo.gov/mpsc/commoncomponents/view_itemno_details.asp?caseno=EX-2009-0252&attach_id=2010000140MO Corporation Commission, Order, Case ER-2007-0004, 2007: https://www.efis.psc.mo.gov/mpsc/commoncomponents/view_itemno_details.asp?caseno=ER-2007-0004&attach_id=2007026935MO Corporation Commission, Order, Case no EO-2006-0496, July 2007: https://www.efis.psc.mo.gov/mpsc/commoncomponents/view_itemno_details.asp?caseno=EO-2006-0496&attach_id=2008000680MO Corporation Commission, Report and Order, Case No. GR-2006-0387, February 22, 2007: https://www.efis.psc.mo.gov/mpsc/commoncomponents/view_itemno_details.asp?caseno=GR-2006-0387&attach_id=2007018856MO Corporation Commission, Stipulation and Agreement, Case GR-2007-0208, 2007: https://www.efis.psc.mo.gov/mpsc/commoncomponents/view_itemno_details.asp?caseno=GR-2007-0208&attach_id=2008000453MO Corporation Commissions, Report and Order, Case No. GR-2006-0422, March 22, 2007: https://www.efis.psc.mo.gov/mpsc/commoncomponents/view_itemno_details.asp?caseno=GR-2006-0422&attach_id=2007021032MO Executive Office, Executive Order 09-18, 2009: http://governor.mo.gov/orders/2009/09-18.htmMO Legislature, HB 734, 2009: http://www.house.mo.gov/billtracking/bills091/biltxt/truly/HB0734T.HTMMO Legislature, Proposition C, 2008: http://www.sos.mo.gov/elections/2008petitions/2008-031.aspMO Legislature, Senate Bill 1181, 2008: http://www.senate.mo.gov/08info/pdf-bill/tat/SB1181.pdfMO Legislature, Senate Bill 179, 2005: http://www.senate.mo.gov/05info/billtext/tat/SB179.htm

Union Electric Co (Ameren) - Rider E - standby and supplemental service is provided to customers who contract for a specific amount of standby demand with the utility. Actual energy usage is charged under the normal rate the site would be charged if they did not generate power. High demand charges compared to energy charges. Billing demand based on maximum demand of the month or the contract demand. Rate available at: https://www2.ameren.com/business/Rates/ratesBundledElecFullSrvMO.aspx

IRP rules in 4 CSR 240-22 do not directly address CHP. Empire District Electric filed its IRP in 2007. AmerenUE and Kansas City Power and Light both filed IRPs in 2008.

http://www.sos.mo.gov/adrules/csr/current/4csr/4c240-22.pdf and

Kansas City Power & Light Co's lastest IRP was filed with the Commission in August 2008 in Case No. EE-2008-0034.

Union Electric Co (Ameren) filed its resource plan with the Missouri Public Service Commission in February 2008.

http://www.ameren.com/ResourcePlan/

http://www.sos.mo.gov/adrules/csr/current/4csr/4c240-22.pdf%20and

http://www.ameren.com/ResourcePlan/

MO Legislature, Senate Bill 376, 2009: http://www.senate.mo.gov/09info/pdf-bill/tat/sb376.pdfMO Revised Statutes, Section 393.1040, January 1, 2008: http://www.moga.mo.gov/statutes/C300-399/3930001040.HTMMO Revised Statutes, Section 393.1075.1 et seq, August 29, 2009: http://www.moga.mo.gov/statutes/C300-399/3930001075.HTM

MISSOURI through 12/31/09: See citations at end of documentNatural Gas Updated by / Date


CK 6/10

BH 6/09, CK 6/10

CK 6/10


BH 6/09, CK 6/10

CK 6/10

CK 6/10

BH 6/09, CK 6/10

Senate Bill 179 passed in 2005 requires MO natural gas utilities to recover in rates any decreases in revenue due to conservation or weather. However, no rules have been adopted by the Commission to implement this legislation.

In 2005 ACEEE estimated potential of aggressive EE programs to reduce consumer use of natural gas and peak electricity generated by natural gas. Additionally, the Midwest Energy Efficiency Alliance commissioned a potential study from Summit Blue Consulting in 2006 addressing DSM potential in the 13 MEEA states. Individual Gas LDCs -- Laclede, Missouri Gas Energy, and The Empire District Gas Company -- have performed EE potential studies of their service areas.

AmerenUE Gas, Laclede, Atmos, Missouri Gas Energy, and Empire District Gas Co. have implemented voluntary Energy Efficiency programs for Residential and General Service Customers.

CK 6/10

CK 6/10

BH 6/09, CK 6/10

The Missouri Public Service Commission recently ruled in two separate natural gas utility rate cases to establish a target for annual EE funding at 0.5% of gross revenues. Case No. GR-2009-0355 (Missouri Gas Energy) and empire District Gas Company (GR-2009-0434).

CK 6/10

BH 6/09, CK 6/10

CK 6/10

CK 6/10

CK 6/10

CK 6/10

CK 6/10

According to a state contact, evaluations of LDC Natural Gas energy efficiency programs including low income weatherization have been conducted or are being conducted by third parties.

Utilities undertake EE, but this is not established in statute.

CK 6/10

BH 6/09, CK 6/10

BH 6/09, CK 6/10

BH 6/09, CK 6/10

BH 6/09, CK 6/10

Delivery of utility-funded EE programs is via the regulated utilities. Some choose to administer the programs "in-house" while others have chosen to contract a third party.

BH using comments from reviewer 8/09, CK using comments from reviewer 6/10


BH 7/09

EPA 5/10


CK 6/10

CK 6/10

Personal communication with Lena Mantle, MO PSC, 5/10/10

There are demand-side advisory groups for the larger gas utilities.

In 2005, SB 179 was enacted to allow MO natual gas utilities to recover in rates any decreases in revenue due to conservation or weather. However, at this time no rules have been adopted by the Commission to implement this legislation.

BH 7/09, CK 6/10

CK 6/10

BH 7/09, CK 6/10

Laclede Gas Co will spend up to $3.5 million over 3 years on EE according to 7.9.07 Unanimous Stipulation and Agreement

2/2007 Order in Case GR-2007-0003 granted a straight-fixed-variable rate structure and a 1% conservation spending requirement for Atmos. However, that rate structure was challenged in court and the court recently remanded the decision back to the Missouri Public Service Commission. The case has been consolidated into Case No. GR-2010-0192 and will be ongoing in 2010.


A 2/2007 Order in Case GR-2007-0003 granted a straight-fixed-variable rate structure and a 1% conservation spending requirement for Atmos. However, that rate structure was challenged in court and the court recently remanded the decision back to the Missouri Public Service Commission. The case has been consolidated into Case No. GR-2010-0192 and will be ongoing in 2010. Not all rates in the Atmos case No. GR-2006-0387 were stayed and some rates were decoupled and went into effect. Missouri Gas Energy has straight fixed variable rates in case no. GR-2006-0422. According to Henry Warren of the Missouris PSC, Laclede Gas implemented a block rate design for residential and small general service customers that increased the customer charge and reduced the amount of margin rate collected during the heating season in Case No. GR-2005-0284.

CK 6/10

CK 6/10

CK 6/10

CK 6/10

CK 6/10


According to a local contact, impact on energy efficiency has been a consideration in gas rate cases currently and over the last three years.

CK 7/10, incorporating state reviewer comments

BH 6/09, CK 7/10 incorporating comments from local contact

PACE is being considered, but is not currently being implemented.

MRD

ACH 7/2009

ACH 7/2009JR 6/2009


AmerenUE, Personal Energy Manager, Smartgrid Fact Sheet, 2009: http://www.ameren.com/Media/Documents/FactSheets/SmartGrid.pdf

MEEA, MIDWEST RESIDENTIAL MARKET ASSESSMENT AND DSM POTENTIAL STUDY, March 2006: http://www.mwalliance.org/sites/default/files/uploads/MEEA_2006_Midwest%20Market%20Assessment%20Final%20Report.pdf

MO Corporation Commission, Order of Rulemaking, Case No. EX-2009-0252, 7/9/09 : https://www.efis.psc.mo.gov/mpsc/commoncomponents/view_itemno_details.asp?caseno=EX-2009-0252&attach_id=2010000140MO Corporation Commission, Order, Case ER-2007-0004, 2007: https://www.efis.psc.mo.gov/mpsc/commoncomponents/view_itemno_details.asp?caseno=ER-2007-0004&attach_id=2007026935MO Corporation Commission, Order, Case no EO-2006-0496, July 2007: https://www.efis.psc.mo.gov/mpsc/commoncomponents/view_itemno_details.asp?caseno=EO-2006-0496&attach_id=2008000680MO Corporation Commission, Report and Order, Case No. GR-2006-0387, February 22, 2007: https://www.efis.psc.mo.gov/mpsc/commoncomponents/view_itemno_details.asp?caseno=GR-2006-0387&attach_id=2007018856MO Corporation Commission, Stipulation and Agreement, Case GR-2007-0208, 2007: https://www.efis.psc.mo.gov/mpsc/commoncomponents/view_itemno_details.asp?caseno=GR-2007-0208&attach_id=2008000453MO Corporation Commissions, Report and Order, Case No. GR-2006-0422, March 22, 2007: https://www.efis.psc.mo.gov/mpsc/commoncomponents/view_itemno_details.asp?caseno=GR-2006-0422&attach_id=2007021032


From state reviewer: Case No. EW-2009-0412 investigating revisions to the IRP rule in Missouri is continuing. SB 376 rulemaking is underway in Case No. EW-2010-0265 where implementation of the policies related to energy efficiency are being discussed in workshops by stakeholders. Draft rules include performance targest for energy efficiency. Commission Staff is currently drafting rules to implement the Missouri Energy Efficiency Investment Act. The goal is to have the rules approved by the

From state reviewer: Electric: Demand-side management is included in the IRP rule to be considered on an equivalent basis as supply side resources. Draft rules for SB 376 "The Missouri Energy Efficiency Investment Act" link DSM plans and recovery mechanisms to the IRP. Updated rules will be given to the Commission for consideration in late summer 2010.

In 2010, two EE sponsors received a total of 25 allowances; the remaining 275 allowances were allocated to one CHP project and three wind projects.

AmerenUE is conducting a potential study that was completed in 2010 and is in sharepoint for 2010 review. From state reviewer: Electric: The Missouri Public Service Commission, with assistance from the Missouri Department of Natural Resources, is seeking a vendor to conduct a statewide potential study. Plans are for the study to be completed by the end of calendar year 2010.

Note from reviewer: The requirement for utilities to develop demand-side programs for all of its costomer classes has been retained in all of the draft revisions of Chapter 22 Electric Utility Resource Planning rules will ………..

Note from Reviewer: Rules will be submitted to the Commission in 2010 to enact this statute.

Note from reviewer: Draft rules to implement the Missouri Energy Efficiency Investment Act include a minimum target for both MWh and MW.

Energy savings performance targets are being considered in the rule to implement SB 376 passed in 2009. Although the statute does not include such targets, performance incentives are authorized in the statute and targets that are informed by potential studies are included in the current rule draft, as a means against which performance can be measured.

Note from reviewer: SB 376 current rule draft includes energy capacity targets of 1% reductions of annual peak demand. Cumulative targets are also included.

SB 376 current rule draft includes annual energy savings targets starting at 0.3% in 2012 increasing to 1.7% annual reductions by 2019. Cumulative targets are also included.

Note from Reviewer: Draft rules for the Missouri Energy Efficiency Investment Act include requirements for EM&V to get Commission approval of the programs and any incentives.

As Missouri is revising its IRP rules, a requirement for annual updates is being considered. (Docket EW-2009-0412)

Note from Reviewer: Currently the utilities are allowed to ammortize costs and some of the utilities are allowed to recover a return on their investments.Commission Staff is currently drafting rules to implement the Missouri Energy Efficiency Investment Act that allows other types of cost recovery. The goal is to have the rules approved by the Commission in late 2010.

Note from Reviewer: Commission Staff is currently drafting rules to implement the Missouri Energy Efficiency Investment Act. The goal is to have the rules approved by the Commission in late 2010.

Note from reviewer: Commission Staff is currently drafting rules to implement the Missouri Energy Efficiency Investment Act. The goal is to have the rules approved by the Commission in late 2010.

note from reviewer: AmerenUE chose not to implement its Personal Energy Management program on a system-wide basis.

Bill passed in March 2010 enacting PACE: http://www.senate.mo.gov/10info/pdf-bill/intro/SB1037.pdf

Confirmed with David Elliott at the MO PSC 7/10/09 [email protected] 573-526-3778. The insurance requirements will be changing to none under 10kW and $100,000 for above 10kW. This change will take affect sometime in 2009.https://www.efis.psc.mo.gov/mpsc/commoncomponents/viewdocument.asp?DocId=935400246

MEEA, MIDWEST RESIDENTIAL MARKET ASSESSMENT AND DSM POTENTIAL STUDY, March 2006: http://www.mwalliance.org/sites/default/files/uploads/MEEA_2006_Midwest%20Market%20Assessment%20Final%20Report.pdf

MO Corporation Commission, Order of Rulemaking, Case No. EX-2009-0252, 7/9/09 : https://www.efis.psc.mo.gov/mpsc/commoncomponents/view_itemno_details.asp?caseno=EX-2009-0252&attach_id=2010000140

MO Corporation Commission, Report and Order, Case No. GR-2006-0387, February 22, 2007: https://www.efis.psc.mo.gov/mpsc/commoncomponents/view_itemno_details.asp?caseno=GR-2006-0387&attach_id=2007018856MO Corporation Commission, Stipulation and Agreement, Case GR-2007-0208, 2007: https://www.efis.psc.mo.gov/mpsc/commoncomponents/view_itemno_details.asp?caseno=GR-2007-0208&attach_id=2008000453MO Corporation Commissions, Report and Order, Case No. GR-2006-0422, March 22, 2007: https://www.efis.psc.mo.gov/mpsc/commoncomponents/view_itemno_details.asp?caseno=GR-2006-0422&attach_id=2007021032

Contacted John Rogers at the PSC (573) 751-7524. The state currently has docket no. EW-2009-0412 open to revise the IRP process (issued in 2009). However, revisions to the IRP process focus on regional transmission organizations and the impact they have on utility plans and the filing schedule. No changes in the IRP process involving the assessment of certain energy efficiency measures are expected to be made.

NORTH DAKOTA through 12/31/09Electric


1.1 N

R

1.2AR

N

1.3 N

1.4


1.5 N


2.1Efficiency commitment is in statute N


A Demand Side Management Rulemaking was on-going at the end of 2009. The Commission held a workshop to consider policy goals and objectives, as well as other issues, in January 2009.


N

North Dakota administrative code 69-09-02-33 requires utilities to consider a full range of options and select the most practicable "least cost" option. Montana Dakota Utilities is required to file IRPs. Two other utilities submit copies of filings prepared for other state commissions. The Order requiring MDU to begin filing annual IRPs was issued January





2.2

R, A

2.3

Y

N

2.4 N

2.5

N


N

No tests are required. Utilities typically use a variety of tests, giving most weight to RIM. Northern Power Co. / Xcel Energy submitted a DSM Program and Cost Recovery Rider proposal to the Commission on 4/17/08, but the cost recovery rider was denied on 11/5/08. The utility had deemed its proposed EE program cost-effective from a TRC perspective; the Commission Staff stated that more weight should be given to the RIM test, and the EE programs do not pass or are questionable under the RIM test. As a result the Commission found that further proceedings are needed before implementing EE programs and it will open a rulemaking to investigate and determine parameters for evaluating and implementing DSM programs. The rulemaking was on-going at the end of 2009. A workshop in Docket PU-08-884 to consider benefit-cost issues, as well as others, was held in January 2009. No further action was taken in that docket in 2009.


Plains Justice commissioned Synapse Energy Economics to complete a potential study, entitled North Dakota Energy Efficiency Potential Study, and completed December 1, 2009.





2.5

N



2.6

N


2.7

Y

a

2.8Resource plans are regularly updated

N


North Dakota enacted HB 1506 in March 2007 that established an objective that 10% of all retail electricity sold in the state be obtained from renewable energy and recycled energy by 2015. Energy efficiency is not an eligible resource to meet this RPS.


A Demand Side Management Rulemaking was on-going at the 2009 in Docket No. PU-08-884. A workshop to consider M&V, as well as other issues, took place in January 2009.







EE delivery structure is not established by statute nor required by the Commission, but some utilities conduct modest, voluntary EE programs.


2.9

2.10N

2.11


3.1

N

N

Do not delete this row.Do not delete this row.Do not delete this row.Do not delete this row.Do not delete this row.

3.2N

Cass County Electric Cooperative

N



N/N

There is no mandatory residential energy code currently in effect. Effective August 1, 2009, the 1993 MEC was removed as the voluntary state residential energy standard.

2.9.2 Building Energy Codes for commercial buildings are in place and regularly updated N/N

There is no mandatory commercial energy code currently in effect. Effective August 1, 2009, ASHRAE Standard 90.1-1989 was removed as the voluntary state commercial energy standard.



N

The Office of Renewable Energy and Energy Efficiency, housed within the North Dakota Department of Commerce, offers grants to support energy audits and efficiency measures at state owned buildings, colleges, and universities.






B77


B79


4.1


b


4.2 N

4.3

4.4 N

5.1

N

5.2

N

Y-

Costs have been recovered in rate cases on a case-by-case basis. Northern Power Co. / Xcel Energy submitted a DSM Program and Cost Recovery Rider proposal to the Commission on 4/17/08 in PU-08-171, but the cost recovery rider was denied on 11/5/08. The utility was authorized to provide load management programs (up to a capped amount) that will be recovered in the utility's next general rate case. In the Order denying the rider, the Commission said it will open a rulemaking to investigate and determine parameters for evaluation and implementing DSM programs for electric utilities. The DSM Rulemaking was on-going at the end of 2009. A workshop to consider many DSM issues was held in January 2009.









5.3N

5.4


R



R


7.1



According to Fortnightly, one or both of the largest utilities in North Dakota has declining rates.

Y

Two utilities offer time-based rates for large commercial and industrial customers. In Case No. PU-07-3, Otter Tail filed for TOU rates for large industrial customers. A Demand Side Management Rulemaking was on-going at the end of 2009. A workshop to consider dynamic pricing, as well as other issues, was scheduled for 1/5/09.

N

The Commission issued an order on 8/8/07 that would initiate a rulemaking to pursue a "modified version" of the PURPA standard 14. Through the rulemaking (docket 08-884), the Commission anticipated mandating utilities to offer time-based rate schedules and to provide large C&I customers who request a time-based rate with a smart meter. The rulemaking was opened in 2007, and a proposed rule was issued, but was not adopted. No further action has been taken in this docket in 2009. Also in the 8/8/07 order, utilities were required to include in their annual reports a discussion of progress toward the feasibility of making smart metering available for all customers, begining with the 2007 annual reports.


A statewide interconnection policy is in place N North Dakota does not have interconnection

standards

7.1

U

U -

7.2


A

7.3


7.4


MDU Resources Group Inc, IOU - has a standard interconnection form and timelines for engineering studies. Facility owners must pay for additional measures that the utility must undertake for interconnection. An external disconnect is required. http://www.montana-dakota.com/Pages/ElectricandNaturalGasRates.aspx?state=North%20Dakota

Northern States Power Co, IOU, a subsidiary of Xcel Energy - Xcel has interconnection standards. There is no timeframe for the application process, but it is described as "lengthy." There are no system size limitations mentioned or insurance requirements. There are no simplified procedures for smaller systems or standard forms. These standards can be accessed from http://www.xcelenergy.com/EnergyPartners/GenerationOwners/Pages/Interconnection_Guidelines_For_Parallel_Operation_of_Distribution_Connected_Customer_Owned_Generation.aspx

Y

North Dakota adopted net metering rules under ND Administrative Code 69-09-07-09. These rules apply to renewable energy generators and CHP units up to 100 kW. Net excess generation is purchased at the utility's avoided cost rate.

ND Administrative Code 69-09-07-09 can be accessed here, http://www.dsireusa.org/documents/Incentives/ND01R.pdf

NThere is no statewide policy on exit fees in North Dakota, however no utilities in the state charge exit fees.

N North Dakota does not have a statewide policy on standby rates

7.4

U

U-

7.5

U+

MDU Resources Group Inc - no standard standby rate is currently offered, so customers seeking standby service would have to enter into an individual contract with the utility. Utility personnel said that a rate similar to Rate 30 would be charged with a specific reservation fee determined in the contract. Rate 30 has a high demand component and billing demand is based on the maximum 15 minute demand of the month with no ratchet. Rate available at: http://www.montana-dakota.com/Pages/ElectricandNaturalGasRates.aspx?state=North%20Dakota

Northern States Power Co (Exel Energy) - Standby Service Rider - standby service is totally demand based with a reservation fee based on contract demand. Actual usage is billed under the regular rate for the customer based on size. Billing demand is typically based on the higher of the maximum demand of the month or 50% of the maximum from the previous 11 months. Rate available at: http://www.xcelenergy.com/Minnesota/Company/About_Energy_and_Rates/Energy%20Prices%20(Rates%20and%20Tariffs)/Pages/NDEnergy_Rates.aspx


N

ND's IRP process for utilities is outlined in two separate rate cases. Montana-Dakota Utilities Company (MDU) is required to file an IRP with the ND PSC. The two other IOUs - Otter Tail Power Co and Northern States Power (NSP) have to file biennial IRPs with the Minnesota Commission and then provide a copy of these IRPs to the ND PSC. The Order requiring MDU to begin filing annual IRPs was issued January 27, 1987 inCase No. 10,799 and amended to allow biennial filings on March 11, 1992 in Case No. PU-399-91-689. The ND PSC recently (12/22/2008) issued requirements for NSP to submit IRPs without certain Minnesota requirements as part of a rate case in docket #PU-07-776.

http://www.psc.state.nd.us/jurisdiction/pud/electricity/orders/2008/07776-Dec31Order.pdfThe most recent MDU IRP was submitted to the North Dakota PSC in July 2008, and covers the years 2008-2010.

http://www.psc.state.nd.us/database/documents/08-0433/001-020.pdf

http://www.psc.state.nd.us/jurisdiction/pud/electricity/orders/2008/07776-Dec31Order.pdf

http://www.psc.state.nd.us/database/documents/08-0433/001-020.pdf

7.5

U

Citations

Building Codes Assistance Project / Online Code Environment & Advocacy Network, ND page: http://bcap-ocean.org/state-country/north-dakotaDocket PU-08-171, Order 11/5/08: http://www.psc.nd.gov/database/documents/08-0171/007-020.pdfND Legislature, HB 1506, January 3, 2007: http://www.legis.nd.gov/assembly/60-2007/bill-text/HBIO0500.pdfND PSC, DSM Rulemaking Docket, PU-08-884: http://www.psc.state.nd.us/database/docket_view_list.php?s_dept=PU&s_year_case=08&s_seq_num=884&s_company_name=Public+Service+Commission&docket_viewPage=1ND PSC, Order, PURPA Standard, Docket PU-06-290, August 8, 2007: not available online ND PSC, Rulemaking, Docket PU-07-641: http://www.psc.nd.gov/database/docket_view_list.php?s_dept=PU&s_year_case=07&s_seq_num=641&s_company_name=Public+Service+CommissionNorth Dakota Administrative Code, Standards of Electric Service, NDAC 69-09-02-33, http://www.legis.nd.gov/information/acdata/html/..%5Cpdf%5C69-09-02.pdfNorth Dakota Department of Commerce, Office of Renewable Energy and Energy Efficiency, http://www.communityservices.nd.gov/energy/Orans, Ren et al, Inclining for the Climate, Public Utilities Fortnightly, May 2009Regulatory Assistance Project, North Dakota Electric Resource Long-Range Planning Survey, 2005. See http://www.raponline.org/showpdf.asp?PDF_URL=%22Pubs/IRPsurvey/IRPND.pdf%22; Synapse Energy Economics, North Dakota Energy Efficiency Potential Study, December 1, 2009: http://www.synapse-energy.com/Downloads/SynapseReport.2009-12.PJ.North-Dakota-EE-Study.09-067.pdf

Northern States Power Co (Excel Energy) has a Demand Side Management (DSM) plan filed with the ND PSC under case number PU-08-171. Northern States Power Co must file an IRP with the MN PSC and normally provides copies of this IRP to the ND PSC.

http://www.psc.state.nd.us/database/docket_view_list.php?s_dept=PU&s_year_case=08&s_seq_num=171&s_company_name=Northern+States+Power+Company&docket_viewOrder=Sorter_docket&docket_viewDir=ASC

http://www.psc.state.nd.us/database/docket_view_list.php?s_dept=PU&s_year_case=08&s_seq_num=171&s_company_name=Northern+States+Power+Company&docket_viewOrder=Sorter_docket&docket_viewDir=ASC

NORTH DAKOTA through 12/31/09Natural Gas


CK 7/10

N

CK 7/10

N

NCK 7/10

N CK 7/10

Recommendation 2: Make a strong, long-term commitment to implement cost-effective energy efficiency as a resourceN CK 7/10

Updated by / Date


North Dakota administrative code 69-09-02-33 requires utilities to consider a full range of options and select the most practicable "least cost" option. Montana Dakota Utilities is required to file IRPs. Two other utilities submit copies of filings prepared for other state commissions.

Y

CK 7/10

N

CK 7/10

BH 7/09, CK 7.10

Plains Justice commissioned Synapse Energy Economics to complete a potential study, entitled North Dakota Energy Efficiency Potential Study, and completed December 1, 2009.

N

CK 7/10

North Dakota enacted HB 1506 in March 2007 that established an objective that 10% of all retail electricity sold in the state be obtained from renewable energy and recycled energy by 2015. Energy efficiency is not an eligible resource to meet this RPS.

BH 7/09, CK 7/10

BH 7/09, CK 7/10

CK 7/10

CK 7/10


N

N

EPA 5/10


BH 7/09, CK 7/10

GE-MEEA: Efforts are underway at the ND Building Code Advisory Committee to update the codes (with an effective date of 1/1/2011) http://www.communityservices

BH 7/09, CK 7/10

personal communication with Michael

See Docket PU-08-884

N CK 7/10

N CK 7/10

a

N CK 7/10

BH 7/09, CK 7/10


Y-

In Docket 2004 PU04-578, NSP was granted a decoupling mechanism. According to the American Gas Association, at least on utility in North Dakota has approved flat monthly fees.

CK 7/10 could not verify natural gas docket

CK 7/10


MRD 4/2010 Confirmed with Jerry Lein at PSC, [email protected], 701-328-1035

BH 7/09, CK 7/10

BH 7/09, CK 7/10

MRD 4/2010

MRD 4/2010



ACH 6/2010

ACH 6/2010JR 6/2010 Jerry Lein ND PSC, 701 328-

1035, [email protected]

Citations

Building Codes Assistance Project / Online Code Environment & Advocacy Network, ND page: http://bcap-ocean.org/state-country/north-dakota

ND PSC, DSM Rulemaking Docket, PU-08-884: http://www.psc.state.nd.us/database/docket_view_list.php?s_dept=PU&s_year_case=08&s_seq_num=884&s_company_name=Public+Service+Commission&docket_viewPage=1

ND PSC, Rulemaking, Docket PU-07-641: http://www.psc.nd.gov/database/docket_view_list.php?s_dept=PU&s_year_case=07&s_seq_num=641&s_company_name=Public+Service+CommissionNorth Dakota Administrative Code, Standards of Electric Service, NDAC 69-09-02-33, http://www.legis.nd.gov/information/acdata/html/..%5Cpdf%5C69-09-02.pdfNorth Dakota Department of Commerce, Office of Renewable Energy and Energy Efficiency, http://www.communityservices.nd.gov/energy/

Regulatory Assistance Project, North Dakota Electric Resource Long-Range Planning Survey, 2005. See http://www.raponline.org/showpdf.asp?PDF_URL=%22Pubs/IRPsurvey/IRPND.pdf%22; Synapse Energy Economics, North Dakota Energy Efficiency Potential Study, December 1, 2009: http://www.synapse-energy.com/Downloads/SynapseReport.2009-12.PJ.North-Dakota-EE-Study.09-067.pdf

Confirmed with Jerry Lein at PSC, [email protected], 701-328-1035

ND PSC, DSM Rulemaking Docket, PU-08-884: http://www.psc.state.nd.us/database/docket_view_list.php?s_dept=PU&s_year_case=08&s_seq_num=884&s_company_name=Public+Service+Commission&docket_viewPage=1

NEBRASKA through 12/31/09Electric


1.1

Y-

S, O

1.2



Y-

1.2

S, O

N/A

1.3 N

1.4


1.5 N


2.1


S

2.2Y-

O

2.3

Y





Y-



2.3

Y

O

2.4 N

2.5

Y

a

N

O







Brenda:NE received a Yes on this question because the Public Power Districts' governing bodies are the public power trustees, who established these goals.

C29

Brenda: NE received a Yes on this question because the Public Power Districts' governing bodies are the public power trustees, who established these goals.

2.5


2.6

N


2.7

N

a

2.8

Resource plans are regularly updatedN









2.8

2.9

2.10 N

2.11Y


3.1

N


Y/N


Y/N




3.1 N




3.2N

N


4.1

4.1.1 Cost recovery process exists N

4.1.3 Funding is for multi-year periods N

4.2 N

4.3








B76


B78


4.4 N

5.1

N

5.2

N

5.3 N

5.4


Y-

O5.4.2 Usage sensitive rates in place


Y-/P

O








5.4

Y


7.1

U



Y-

7.2


U-

U -


7.4


U

U-

7.5 S

U

Citations

N

N

N


Y+

NEBRASKA through 12/31/09Electric Natural Gas


N

Nebraska has an IRP requirement in statute for public utilities (and all power at the retail level is provided by public utilities). The IRP requirement states that demand and supply resources shall be treated on a consistent and integrated basis. However, the requirement has not resulted in significant program spending on EE historically. See Section 1.2.1. The Interim 2009 Nebraska Energy Plan recognizes energy efficiency as a resource, along with other supply resources.

NE Revised Code 66-1060, http://uniweb.legislature.ne.gov/laws/statutes.php?statute=66-1060.NE Energy Office, 2009 Interim Energy Plan, http://www.neo.ne.gov/comments2/PlanDraft2009.pdf.Nebraska Code Section 66-1060 requires public utilities to "practice integrated resource planning and include least cost options when evaluating alternatives for providing energy supply and managing energy demand." EE is evaluated in this process; however, implementation of EE has been minimal in the past. According to ACEEE, only the Omaha Public Power District historically has reported significant spending on EE. However, Omaha Public Power District, Lincoln Electric System, and Nebraska Public Power District, the state's largest utility, had plans for stepping up their EE efforts in 2009. NE Public Power District completed an IRP in 2008, in which it sets a goal to meet 41,100 MWh through EE by 2014, equating to 14% of NPPD's annual energy load growth. NPPD planned to spend $4.7 million on energy efficiency programs in 2009. Omaha Public Power District also set new savings goals in 2009 (see 2.5.1). In addition, the Western Area Power Association (a power marketing administration within the US DOE that markets and transmits hydroelectric power to a 15-state region in central and western US) requires its customers to submit IRPs every five years, and the requirement is included in power sales contracts with long-term firm customers. Small customer plans are required of WAPA's smaller customers.


NE Revised Statute, Section 66-1060, http://uniweb.legislature.ne.gov/laws/statutes.php?statute=66-1060.NE Public Power District, 2008 Integrated Resource Plan, http://www.nppd.com/irp/additional_files/irp_final.pdf.Columbus Telegram, NPPD Looks to Future for Energy Answers, January 1, 2009, http://www.columbustelegram.com/news/local/article_cab676e2-6fca-521d-9510-3a42d257cb17.html.Lincoln Energy Systems, press release, http://www.les.com/your_les/news_rel_display.asp?inpt_Article=180

Nebraska Code Section 66-1001 finds that conservation provides a public purpose and that it would be prudent for utilities to provide the capital needed to make homes and buildings more efficient.

NE Revised Code, Section 66-1001, http://uniweb.legislature.ne.gov/laws/statutes.php?statute=66-1001In the DSM Potential Study completed for Nebraska Public Power District, EE measures were evaluated using 4 tests, with the TRC test being used by the consultant to evaluate which measures to include in a portfolio.

NE Public Power District, 2008 Integrated Resource Plan, http://www.nppd.com/irp/additional_files/irp_final.pdf.

Nebraska Public Power District, the largest electric utility, commissioned a DSM Potential Study and Plan in 2007.

NE Public Power District, 2008 Integrated Resource Plan, Appendix E, NE Public Power District DSM Potential Study and Plan, http://www.nppd.com/irp/additional_files/irp_final.pdf

Omaha Public Power District's EE programs reached all customer classes in 2009.

Omaha Public Power District, 2009 Sustainability Report, http://www.oppd.com/prodconsump10g/groups/web/documents/webcontent/22_005766.pdf

Nebraska Public Power District, the state's largest utility, completed an IRP in 2008, in which it sets a goal to meet 41,100 MWh through EE by 2014, equating to 14% of NPPD's annual energy load growth. Omaha Public Power District announced in January 2009 that it has set a target to reduce the electricity used by its customers by 50 MW by 2012 through energy efficiency measures.

NE Public Power District, 2008 Integrated Resource Plan, http://www.nppd.com/irp/additional_files/irp_final.pdf.Omaha Public Power District, News Release, "OPPD Substantially Increases Goals for Renewable Energy," January 21, 2009, http://www.oppd.com/AboutUs/NewsEvents/22_005698#renewable_012109

The Interim 2009 Nebraska Energy Plan recommends the enactment of a Renewable Portfolio Standard.

NE Energy Office, 2009 Interim Energy Plan, http://www.neo.ne.gov/comments2/PlanDraft2009.pdf.

Brenda:NE received a Yes on this question because the Public Power Districts' governing bodies are the public power trustees, who established these goals.

ACEEE issued its 2009 State Energy Efficiency Scorecard (Scorecard) in October 2009. Among other things, the Scorecard tracks annual EE program savings by each state in 2007 (the most recent year for which relevant data are available for all jurisdictions). According to the Scorecard, NE's total incremental electric savings (MWh) was 6,902 in 2007 which was 0.02% of savings as a percent of electricity sales and ranked NE 27th when compared with other states.

ACEEE, 2009 State Energy Efficiency Scorecard, October 2009, http://aceee.org/pubs/e097.pdf?CFID=571117&CFTOKEN=50109276.

EE program administration has not been established in law. All utilities in NE are publicly owned. Some utilities implemented EE programs in 2009, including Omaha Public Power District, Nebraska Public Power District, and Lincoln Energy Systems.

There is no requirement in statute regarding how often utilities must complete IRPs.


NE Revised Statute, Section 66-1060, http://uniweb.legislature.ne.gov/laws/statutes.php?statute=66-1060.2003 IECC mandatory statewide. No set schedule for updates. Last update in 2005. The Interim 2009 Nebraska Energy Plan calls for updating and enforcing building codes.

BCAP: http://bcap-ocean.org/state-country/nebraska; Nebraska Revised Statute 81-1611 http://www.legislature.ne.gov/laws/statutes.php?statute=s8116011000 adopted in 2004; Interim Energy 2003 IECC mandatory statewide. No set schedule for updates. Last update in 2005. The Interim 2009 Nebraska Energy Plan calls for updating and enforcing building codes. The NE Energy Office received a grant in 9/08 to evaluate the feasibility of adopting an advanced commercial building energy code which exceeds by 30% the requirements of the 2006 IECC.

BCAP: http://bcap-ocean.org/state-country/nebraska.NE Energy Office, 2009 Interim Energy Plan, http://www.neo.ne.gov/comments2/PlanDraft2009.pdf.BCAP, "NE wins grant to adopt 30 percent above code commercial requirements," September 16, 2008, http://bcap-energy.org/node/272.

All state-owned and state-funded buildings must comply with 2003 IECC for buildings. The Interim 2009 Nebraska Energy Plan calls for some measures that would improve energy use in state buildings, and mentions that the NE Department of Administrative Services published a compendium of energy efficiency measures to be undertaken by all state agencies, titled “Governing for Energy and Environmental Efficiency.”

BCAP: http://bcap-energy.org/node/272; Interim Energy Plan: http://www.neo.ne.gov/comments2/PlanDraft2009.pdf

Some utilities have public education, but none of the EE programs are state-approved. All utilities in Nebraska are publically owned, and thus education programs are not reviewable for state approval.

N

Omaha Public Power District

Recommendation 4: Promote sufficient, timely, and stable program funding to deliver energy efficiency where cost-effective.N

ACEEE issued its 2009 State Energy Efficiency Scorecard (Scorecard) in October 2009. Among other things, the Scorecard tracks spending on EE by each state in 2007 (the most recent year for which relevant data are available for all juriusdictions). According to the Scorecard, NE total spending on EE in 2007 was $948,000 which was 0.05% of total utility revenues and ranked NE 35th in state spending. Omaha Public Power District, Lincoln Electric System, and Nebraska Public Power District had plans for stepping up their EE spending in 2009.

ACEEE, 2009 State Energy Efficiency Scorecard, October 2009, http://aceee.org/pubs/e097.pdf?CFID=571117&CFTOKEN=50109276.

N

R

N

NPPD has declining block residential winter rates.

N

NPPD, http://www.nppd.com/timeofuse/


SourceGas proposed decoupling with their 2009 rate increase proposal (Docket NG-0060). The Docket was still on-going at the end of 2009.

NE PSC, Docket NG-0060, http://www.psc.state.ne.us/home/NPSC/natgas/orders_natgas/orders_natgas.html

According to C3 database, some natural gas utilities in NE have declining block rates. Black Hills Corporation requested a declining block rate structure in 12/09.

NPPD Resdiential Rate Tariff, http://www.nppd.com/My_Account/Additional_Files/rates/residentialservice.pdfNebraska Public Power District offers time-of-use rates to some customers. The utility also is conducting a pricing pilot program that started in 10/09.

NE Public Power District is conducting a pricing pilot program that started in 10/09 in which participants are given a real-time power cost monitor. The utility also is installing AMI systems throughout the state, to be completed in 2012.

NPPD, http://www.nppd.com/timeofuse/additional_files/pilot_program.asp, http://www.nppd.com/timeofuse/additional_files/smart_meters.asp


Legislation passed in 2008 (the Low-Income Home Energy Conservation Act; NE Revised Code Section 66-1012 through 66-1019) created an Energy Conservation Improvement Fund, effective January 1, 2009. The Fund provides grants for EE improvements to homeowners at or below 150% of poverty level, who can be required to pay for a share of the cost (no more than 20% of total) through on-bill financing. The Fund is funded through state sales taxes collected by and matching funds remitted by the public power entities.

NE Revised Code, Section 66-1012 through 66-1019, http://nebraskalegislature.gov/laws/browse-chapters.php?chapter=66.Personal communication with Tim Texel, NE Power Review Board, 2009.

Nebraska's interconnection standards apply to systems with a capacity up to 25 kW that produce electricity using solar, wind, methane, biomass, hydropower or geothermal resources. LB 436, which became effective in August 2009, established general rules for the interconnection and net metering of customer-owned electricity generating systems. To be eligible, a facility must meet all applicable National Electric Code and adopted by the State Electrical Board, the National Electric Safety Code, and the Institute of Electrical and Electronics Engineers safety, performance, interconnection and reliability standards. The system must be capable of automatically isolating itself from the electrical grid in the event of a power outage. Customer-generators must have an inspection from the State Electrical Division and provide documentation of the completed inspection to the utility before the system can be interconnected to the grid. The utility must provide a bi-directional meter to the customer at no additional cost. The utility may not require a customer-generator to purchase additional liability insurance if all safety and interconnection requirements are met.

Omaha Public Power District, Public Utility - they have interconnection standards in place. There are no system size limits and there are three levels of interconnection. The utility must respond to an application within 30 days and there are standard forms. Interconnection standards can be accessed here, http://www.oppd.com/prodconsump10g/groups/web/documents/webcontent/22_001516.pdf.

Nebraska does not have a statewide net-metering policy.

Nebraska Public Power District does not have a net-metering policy. Omaha Public Power District states in their DG manual that they do not allow net metering for DG systems operating in closed transition. There is no statewide policy on exit fees in Nebraska, however no utilities in the state charge exit fees.

Nebraska does not have a statewide policy on standby rates

Nebraska Public Power District - Sites interested in receiving standby service must enter into an individualized contract with the utility. Rates are split between demand and energy charges, with demand charged determined by the maximum 30 minute demand of the month. General service rates are based on a steep declining block schedule. Rate available at: http://www.nppd.com/My_Account/Additional_Files/rates.asp

Omaha Public Power District - Schedule 464 - standby service is entirely demand based, however the demand charge is moderate. Billing demand is based on the higher of the maximum 15 minute demand of the month or 85% of the maximum from the previous 11 months. Rate available at: http://www.oppd.com/Rates/index.htmNebraska Code Section 66-1060 requires utilities to participate in least cost planning and states the following - "Integrated resource planning means a planning process for new energy resources that evaluates the full range of alternatives, including new generating capacity, power purchases, energy conservation and efficiency, cogeneration..."

http://law.justia.com/nebraska/codes/s66index/s6610060000.htmlNebraska Public Power District issued an IRP in 2008, which is a 20-year plan (covering from 2008 through 2027). The plan assesses CHP.http://www.nppd.com/IRP/

http://law.justia.com/nebraska/codes/s66index/s6610060000.html

http://www.nppd.com/IRP/

Updated by / Date Update notes for 2010 activity

BH 3/10

BH 7/09BH 3/10

BH 3/10

BH 7/09

BH 7/09

BH 3/10

BH 3/10

BH 7/09BH 3/10

BH 3/10

BH 7/09BH 3/10

BH 7/09BH 3/10

BH 3/10

BH 7/09BH 3/10

BH 7/09BH 3/10

BH 7/09BH 3/10

Personal communication with Tim Texel EE and General Council, Nebraska Power Review Board, 2008,

EPA 5/10

BH 3/10

BH 5/10

BH 3/10

BH 7/09BH 3/10

BH 3/10

MRD 4/2010

MRD 4/2010

Confirmed with David Rich (402) 564-8561 [email protected]


ACH 5/2010, Updated through 2007

ACH 5/2010JR 3/2010 Contacted Sarah Hayak at the

NE Power Review Board (402) 471-2301

OHIO through 12/31/09; see citations at end of documentElectric


1.1 Y

S

1.2

Y

A

S

1.3 Y

A




Y


1.4


Y

R

b

1.5


2.1




Y

Y

2.1

S

2.2Y+

A

2.3

Y

A, O

Y

A

2.4 N

2.5

Y

S, R






2.5

b

Y+

S, R



2.6

N


Y

Y

Y

A







C44

Brenda: EPA called this a Yes in grid updated through 2008.

C46


C48


2.6

Y

2.7

Y

S, A

a

2.8


Y

A

2.9

2.10 N






Y/N

2.9.2 Building Energy Codes for commercial buildings are in place and regularly updated Y/N


C50


2.11Y


3.1

N

N




3.2N

N







B77


B79


4.1


A

a, c

A, S

4.1.3 Funding is for multi-year periods Y

4.2 N

4.3

4.4 N

Y-




Funds from carbon trading program support EERecommendation 5: Modify policies to align utility incentives with the delivery of cost-effective energy efficiency and modify ratemaking practices to promote energy

efficiency investments.

5.1

Y-

S, R

b

5.2

Y

R

5.3N






5.4

5.4.1 Time sensitive rates in place Y-


5.4.3 AMI deployment planned Y-/P


7.1

R

7.2


S

7.3 A statewide exit fee policy is in place



Y+

Y+

7.4


U

U -

7.5

R

Citations

BCAP, "Ohio Code Information," http://bcap-ocean.org/state-country/ohioACEEE, 2009 State Energy Efficiency Scorecard, October 2009, http://aceee.org/pubs/e097.pdf?CFID=571117&CFTOKEN=50109276.ACEEE, Examining the Potential for Energy Efficiency to Help Address the Natural Gas Crisis in the Midwest, January 2005, http://www.aceee.org/pubs/u051.htmACEEE, Shaping Ohio's Energy Future: Energy Efficiency Works, March 2009, http://www.aceee.org/store/proddetail.cfm?CFID=4867142&CFTOKEN=98975491&ItemID=458&CategoryID=7

Y


Y

Executive Order 2007-02SFERC, Order on PJM RPM Compliance Issues, Docket Nos ER05-1410 et. al., October 30, 2009, http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13765680FERC, Order Regarding PJM Report and Tariff Filings, Docket Nos. ER05-1410 et. al., March 26, 2009, http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13701842OH General Assembly, SB 221, OH PUC Rules 4901:1-39, http://www.puco.ohio.gov/PUCO/Rules/Rule.cfm?id=8724OH PUC Rules 4901:1-40, http://www.puco.ohio.gov/PUCO/Rules/Rule.cfm?id=8724OH PUC Rules 4901:5-1, http://www.puco.ohio.gov/PUCO/Rules/Rule.cfm?id=8724OH PUC Rules 4901:5-5, http://www.puco.ohio.gov/PUCO/Rules/Rule.cfm?id=8724OH PUC Rules 4901:5-7, http://codes.ohio.gov/oac/4901%3A5-7OH PUC, Case 05-1444-GA-UNC, Order on February 4, 2009, http://dis.puc.state.oh.us/DocumentRecord.aspx?DocID=4e98e33f-f76b-4f6d-b72b-8f9f26033b0eOH PUC, Case 06-0091-EL-UNC, Staff report of 1/12/2007; and Order of 7/11/07, http://dis.puc.state.oh.us/CaseRecord.aspx?CaseNo=06-0091OH PUC, Case 07-1080-GA-AIR, Order on January 7, 2009, http://dis.puc.state.oh.us/DocumentRecord.aspx?DocID=def5f7ab-e174-4a78-9961-a241c93e3a3fOH PUC, Case 08-920-EL-SSO, http://dis.puc.state.oh.us/TiffToPDf/A1001001A08G31B74801D05501.pdfOH PUC, Case 09-512-GE-UNC, Entry on June 24, 2009, http://dis.puc.state.oh.us/DocumentRecord.aspx?DocID=8ec155c8-d3ea-4d92-bb3c-e9f1ce523726OH Revised Code 123.011OH Revised Code 3345.69OH Revised Code 4928.143, OH Revised Code 4928.61 and 4928.62, http://codes.ohio.gov/orc/4928.61OH Revised Code 4928.64 et seq, http://codes.ohio.gov/orc/4928OH Revised Code 4928.66, http://codes.ohio.gov/orc/4928OH Revised Code 4929.01(A), OH Revised Code 4929.02(A)(12), http://codes.ohio.gov/orc/4929.02OH Revised Code 4929.051, Ohio School Facilities Commission Resolution 07-124Orans, Ren et al, "Inclining for the Climate," in Public Utilities Fortnightly, May 2009

PJM, Tariff filing to implement proposed changes to RPM, Docket Nos. ER05-1410 et. al., December 12, 2008, http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13672185SIP Call, http://www.epa.state.oh.us/dapc/files/OhioGuidanceFINAL.pdf

CAIR, http://www.epa.state.oh.us/dapc/regs/regs.html#3745 109 Scroll down to OAC 3745-109

PJM, Report Proposing Changes to RPM, Docket Nos. ER05-1410 et. al., December 12, 2008, http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13672172

OHIO through 12/31/09; see citations at end of documentElectric

Natural GasRecommendation 1: Recognize energy efficiency as a high priority energy resource.

N

N

A

Legislation passed in 2008 included energy savings targets and peak demand reduction targets; see 2.5.1 (OH General Assembly SB 221; OH Revised Code 4928.66). In addition, OH requires that a resource plan be submitted with electric utilities' long-term forecast reports; see 1.2.1 (OH PUC Rules 4901:5-5).

PUC Rules that became effective in 2009 require electric utilities to prepare long-term forecast reports, which must include a resource plan (OH PUC Rules 4901:5-5).

Rate stabilization for the Provider of Last Resort (POLR) function was set to expire at the end of 2008. Under Legislation passed in 2008, POLR responsibility remained with the electric distribution utility, who must provide a standard service offer under either an electric service plan or a market rate option (OH General Assembly, SB 221). Annual EE requirements for all customers, including standard service offer customers, are set forth in this legislation.

PUC Rules that became effective in 2009 require electric utilities to prepare long-term forecast reports, which must include a resource plan (OH PUC Rules 4901:5-5). Resource plans are defined as plans or programs that give appropriate consideration to supply-side and demand-side resources, transmission, and distribution.


Y-

PJM conducts a regional planning process for 13 states and DC, including a portion of OH. PJM uses its Reliability Pricing Model (RPM) to procure capacity on a multi-year forward basis through an auction mechanism. In March 2008, several parties asked FERC to review the reasonableness of the RPM process. On June 30, 2008, PJM filed a responsive report. On September 19, 2008, FERC issued an Order addressing the report and supporting creation of a stakeholder process to address pending RPM issues. On December 12, 2008, PJM filed a report with FERC summarizing results of the stakeholder process, proposing changes to the RPM, including allowing energy efficiency to participate in the RPM in Docket Nos. ER05-1410-000, EL05-148-000. Also on December 12, 2008, PJM filed corresponding tariff revisions for effect on March 27, 2009 in Docket No. ER09-412-000. On February 9, 2009, PJM and certain parties filed a Settlement Agreement with FERC regarding PJM’s December 2008 RPM filings. On March 26, 2009, FERC issued an Order Accepting Tariff Provisions in Part, Rejecting Tariff Provisions in Part, Accepting Report, and Requiring Compliance Filings in the above-referenced dockets. The March 26th Order addresses the inclusion of EE in the RPM at paragraphs 120-139. FERC approved PJM's tariff provisions to enable EE resources to participate in the RPM market starting with the May 2009 Base Residual Auction that will procure capacity for the 2012-2013 Delivery Year. FERC rejected PJM's proposal to compensate EE resources that do not supply annual M&V plans. On October 30, 2009, FERC issued an Order in Docket Nos. ER05-1410 et. al. addressing compliance issues relating to March 26, 2009 Order in these dockets.

Ohio's set-aside program accounts for 1% of state NOx trading program budget, or 454 tons. EE, RE, and innovative technology projects are eligible. The proposed CAIR rules will make available 1% (454 allowances) for ozone season (only) NOx allowances using the same regulatory language as its SIP Call set-aside program.

Electric Distribution companies are required to implement energy efficiency programs to comply with Ohio's version of an energy efficiency resource standard with a "cumulative annual energy savings in excess of twenty-two per cent by the end of 2025" (SB 221 establishing OH Revised Code §4928.66 (A)(1)(a)).

S

Y-

R

Y-

O

Y

PUC Rules that became effective in 2009 require all electric utilities to implement EE programs, and use the TRC test to evaluate programs (OH PUC Rules 4901:1-39). Utilities also must use the TRC test, at minimum, to determine the cost-effectiveness of DSM programs in the resource plans described under 1.2.1 (OH PUC Rules 4901:5-5).

PUC Rules that became effective in 2009 require electric utilities to conduct potential studies prior to proposing their comprehensive EE and peak demand plans (OH PUC Rules 4901:1-39). According to Wilson Gonzalez, of OH Consumer Counsel, several utilities had completed their potential studies by the end of 2009. In addition, a 2009 ACEEE report estimated electric EE potential in OH (ACEEE, Shaping Ohio's Energy Future, 2009).

PUC Rules that became effective in 2009 require electric utilities to design EE and peak demand reduction portfolios, "including a range of programs that encourage innovation and market access for cost-effective EE and peak demand reduction for all customer classes" (OH PUC Rules 4901:1-39). ”Mercantile customers,” defined as commercial or industrial customers that consume more than 700,000 kWh per year or are part of a national account involving multiple facilities in one or more states, may enter into a special arrangement with their utility to integrate their demand reduction, demand response, or EE programs with those of the electric utility.

Legislation passed in 2008 establishes EE and demand reduction benchmarks for electric utilities (SB 221; OH Revised Code 4928.66; OH PUC Rules 4901:1-39). Starting in 2009, the target is energy savings of 0.3% of the total, annual average, and normalized kilowatt-hour sales of the electric distribution utility during the preceding three calendar years to customers in OH. The target is ratcheted up, reaching 1% from 2014 to 2018, and 2% from 2019 to 2025. There also are peak demand reduction targets.

N

R

OH has an Alternative Energy Portfolio Standard, passed in 2008, which requires 25% of utilities' retail electric supply to be provided by alternative energy resources by 2025. Demand-side management and energy efficiency qualify as "advanced energy resources" under this standard, and can contribute toward the goal (OH Revised Code 4928.64 et seq; and OH PUC Rules 4901:1-40). OH also has specific EE targets separate from the Alternative Energy Resource Standard (see 2.5.1), and DSM/EE cannot be double-counted for both regulatory standards.

ACEEE issued its 2009 State Energy Efficiency Scorecard (Scorecard) in October 2009. Among other things, the Scorecard tracks annual EE program savings by each state in 2007 (the most recent year for which relevant data are available for all jurisdictions). According to the Scorecard, OH's total incremental electric savings (MWh) was 29,789 in 2007 which was .02% of savings as a percent of electricity sales and ranked OH 31st when compared with other states.

According to PUC Rules that became effective in 2009, electric utilities must include in their three-year EE and peak demand reduction program portfolio plans a description of the plan for preparing reports that document the electric utility's EM&V (OH PUC Rules 4901:1-39). A regulatory proceeding opened in 2009 to establish protocols for EM&V of EE and peak demand reduction programs, including the establishment of a Technical Reference Manual (OH PUC, Case 09-512-GE-UNC). The proceeding was on-going at the end of 2009.

PUC Rules that became effective in 2009 state that an independent program evaluator will be hired at the direction of the commission to prepare an independent EM&V plan (OH PUC Rules 4901:1-39).

N

a

N

This issue will be addressed in a regulatory proceeding underway at the end of 2009 (OH PUC, Case 09-512-GE-UNC).

PUC Rules effective in 2009 require each electric utility to design and implement EE and peak demand reduction programs to meet the statutory benchmarks outlined in 2.5.1 (OH PUC Rules 4901:1-39). Utilities' first program portfolio plans were to be filed before 1/1/10; and updated plans were to be filed by April 15 of each third year thereafter.

Long-term forecast reports, which must include a resource plan, are required annually from electric utilities serving more than fifteen thousand customers in the state; see 1.2.1 (OH PUC Rules 4901:5-1). There are some exemptions.

Residential buildings must meet the 2006 IECC; or one-, two-, and three-family dwellings may follow an alternate option by meeting certain requirements of the Residential Code of Ohio based on Chapter 11 of the 2006 IRC (Chapter 11, Sections 1101-1103); or such dwellings may meet the state code's new Prescriptive Energy Requirements (section 1104). The latest update/readoption was on 1/1/09, and there is no set schedule for updates (BCAP).

The 2006 IECC is mandatory for commercial buildings. The last update was effective Jan 1, 2008, and there is no regular schedule for updates (BCAP).


Y

Buckeye Power Inc., Vectren Energy Delivery

Dominion Gas starting new programRecommendation 4: Promote sufficient, timely, and stable program funding to deliver energy efficiency where cost-effective.

Life-cyle cost analyses are required before construction for state-funded buidings larger than 5,000 square feet. Energy consumption analyses are required on state-leased buildings larger than 20,000 square feet. Certification of building owners for state-funded buildings (except higher education) also are required (OH Revised Code 123.011). Energy audits and consumption reductions have been mandated for state agencies (Executive Order 2007-02S). Institutions of higher education have consumption reduction goals, minimum efficiency standards, and planning requirements (OH Revised Code 3345.69). In addition, new schools and renovations to existing schools must meet the LEED for schools silver certification, and have a goal of meeting the gold certification (Ohio School Facilities Commission Resolution 07-124).

It is now state policy to "encourage the education of small business owners… regarding the use of… energy efficiency programs… in their businesses." S.B. 221 establishing O.R.C. §4928.02(M).

http://codes.ohio.gov/orc/4928.02

http://codes.ohio.gov/orc/4928.02

b

Most utilities' energy efficiency funding is proposed for three years.

PUC Rules that became effective in 2009 state that when utilities file their proposed program portfolio plans, they may submit a request for recovery of the costs of the programs through an approved rate adjustment mechanism (OH PUC Rules 4901:1-39). The recovery is subject to annual reconciliation after the M&V process is complete. The cost of transmission and distribution infrastructure that reduces line losses may be recovered on the portion of the investment that is attributable to and undertaken primarily for EE or demand reduction purposes. "Mercantile customers,” defined as commercial or industrial customers that consume more than 700,000 kWh per year or are part of a national account involving multiple facilities in one or more states, may enter into a special arrangement with their utility to integrate their programs with those of the electric utility; they may individually or jointly with the utility apply for exemption from such recovery. There are reporting requirements for the exemptions.Under Duke Energy's Save-a-watt program, effective 1/1/09, Duke was slated to receive 50% of NPV of avoided costs for conservation and 75% of avoided costs for demand response, up to an earnings cap. Duke paid all program costs from this, and could not earn a profit for meeting the state's mandatory savings requirements, but only could earn a profit on savings beyond the standards. There is a true-up after the rider has been in place for four years.

Y-

In addition to the recovery process mentioned under 4.1.1, there also is a systems benefits charge that funds various EE and renewable energy projects (OH Revised Code 4928.61 and 4928.62).

ACEEE issued its 2009 State Energy Efficiency Scorecard (Scorecard) in October 2009. Among other things, the Scorecard tracks spending on EE by each state in 2007 (the most recent year for which relevant data are available for all juriusdictions). According to the Scorecard, OH total spending on EE in 2007 was $28,757,000 which was less than 0.2% of total utility revenues and ranked OH 27th in state spending. Spending is planned to be ramped up in future years.


R, S

a

N

At least one utility still has declining block rates (Orans, 2009).N

Lost revenue recovery mechanisms are determined on a case-by-case basis. Duke Energy recovers lost revenues resulting from their programs through a DSM rider. Legislation passed in 2008 authorizes the Commission to approve a revenue decoupling mechanism for an electric distribution utility if it reasonably aligns the interests of the utility and of its customers in favor of energy efficiency or energy conservation programs (OH General Assembly, SB 221; OH Revised Code 4928.66 (A)(2)(c), (D), and 4928.143 (B)(2)(h)).

Y-

Duke Energy received approval for incentives in the Save-a-watt program in 2008 (OH PUC, Case 08-920-EL-SSO). If Duke achieves 101% or more of its mandate, it receives a return on investment on program costs equal to between 6% and 15%.


2007 - OAC 4901:1-22 accessed here: http://codes.ohio.gov/oac/4901:1-22

Time sensitive rates were in place for some customers of First Energy in 2009.

Several utilities have AMI projects planned or underway, including First Energy, Duke Energy, and AEP.

Ohio adopted new interconnection standards in March 2007. Systems up to 20 MW are allowed to connect. There are 3 levels of review for interconnection: Level 1 applies to units up to 10 kW that use renewable energy, and follows the simplified procedure; Level 2 applies to systems up to 2 MW and follows the expedited review procedure. Both level 1 and 2 systems must meet IEEE 1547 and UL 1741 standards and may not be interconnected at the transmission level. Level 3 interconnection - the standard procedure - applies to systems not greater than 20 MW. An external disconnect switch is required for all. There are two application forms for interconnection: a "short form" application for systems not greater than 50 kW in capacity, and a standard application for systems that do not qualify for the "short form." There is a standard interconnection agreement. Utilities may not require additional liability insurance beyond proof of insurance. There is a provision for alternative dispute resolution, and for formal complaints.

Ohio first established a net metering policy with ORC 4928.67 in 1999, and with orders OAC 4901:1-10-28 and OAC 4901:1-21-13. The state's net metering policy was recently modified in 2007. Electric distribution utilities and competitive retail electric service providers must offer net metering to customers who generate electricity from biomass, landfill gas, hydropower, fuel cells, microturbines, wind, and solar energy. There is no stated capacity limit. NEG is credited at a utility's unbundled generation rate to a customer's next bill; the customer may request a refund of NEG credits accumulated over a 12-month period.

ORC 4928.67 can be accessed here, http://www.dsireusa.org/documents/Incentives/OH02R1.htm, OAC 4901:1-10-28 can be found here, http://dis.puc.state.oh.us/TiffToPDf/A1001001A07C28B45049D31500.pdf and OAC 4901:1-21-13 is located here, http://dis.puc.state.oh.us/TiffToPDf/A1001001A07C28B45049D31500.pdf

Citations

BCAP, "Ohio Code Information," http://bcap-ocean.org/state-country/ohioACEEE, 2009 State Energy Efficiency Scorecard, October 2009, http://aceee.org/pubs/e097.pdf?CFID=571117&CFTOKEN=50109276.ACEEE, Examining the Potential for Energy Efficiency to Help Address the Natural Gas Crisis in the Midwest, January 2005, http://www.aceee.org/pubs/u051.htmACEEE, Shaping Ohio's Energy Future: Energy Efficiency Works, March 2009, http://www.aceee.org/store/proddetail.cfm?CFID=4867142&CFTOKEN=98975491&ItemID=458&CategoryID=7

Rules promulgated by the PUCO in Case No. 05-1500 established that electric utilities must offer a market based standby rate. Market based standby rates have been filed but not yet approved. According to SB 221, it is the state's policy to encourage implementation of distributed generation across customer classes through regular review and updating of administrative rules governing critical issues such as, but not limited to, interconnection standards, standby charges, and net metering. These are all being reviewed in Case No. 08-888-EL-ORD.

Ohio Power Co (AEP) - Schedule OAD-SBS - delivery of standby energy is provided through Ohio Power but the energy commodity must be purchased through another provider. Standby fee is primarily demand based, billed on the contract demand, with very low energy charges. Customers with contract capacity below 100 kW recieve a much lower standby demand charge. Rate available at: https://www.aepohio.com/account/bills/rates/AEPOhioRatesTariffsOH.aspx

Cincinnati Gas & Electric Company (Duke Energy) - Rate DP - there is no standard standby rate however utility personnel indicated that on-site generation customers would be charged under Rate DP. Charges are primarily demand based with very low energy charges. Billing demand is based on the higher of the maximum 15 minute demand of the month or 85% of the maximum from the previous 11 months. Rate available at: http://www.duke-energy.com/rates/ohio/electric.aspOhio has energy efficiency and peak demand reduction benchmarks (targets) set forth in Senate Bill 221. The projected impacts of programs designed to meet these benchmarks are recognized in utilities’ demand forecasts and resource plans, which and these overlay are reviewed in the state’s IRP process. While the resource plan is generally reviewed under a reasonable cost / best value standard, EE and demand response programs are required by rule to meet the Total Resource Cost test in a process separate from resource planning, which is set forth in Chapter 4901:1-39 of the Ohio Administrative Code (Commission rules implementing SB221). Other cost / benefit tests may also be used. The forecast and resource plan process is outlined in Chapter 4901:5-5. Resource plans must give adequate consideration to environmental impacts of the plan and their costs.

http://www.puco.ohio.gov/PUCO/Rules/Rule.cfm?id=8724

http://www.puco.ohio.gov/PUCO/Rules/Rule.cfm?id=8724

FERC, Order on PJM RPM Compliance Issues, Docket Nos ER05-1410 et. al., October 30, 2009, http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13765680FERC, Order Regarding PJM Report and Tariff Filings, Docket Nos. ER05-1410 et. al., March 26, 2009, http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13701842

OH PUC Rules 4901:1-39, http://www.puco.ohio.gov/PUCO/Rules/Rule.cfm?id=8724OH PUC Rules 4901:1-40, http://www.puco.ohio.gov/PUCO/Rules/Rule.cfm?id=8724OH PUC Rules 4901:5-1, http://www.puco.ohio.gov/PUCO/Rules/Rule.cfm?id=8724OH PUC Rules 4901:5-5, http://www.puco.ohio.gov/PUCO/Rules/Rule.cfm?id=8724OH PUC Rules 4901:5-7, http://codes.ohio.gov/oac/4901%3A5-7OH PUC, Case 05-1444-GA-UNC, Order on February 4, 2009, http://dis.puc.state.oh.us/DocumentRecord.aspx?DocID=4e98e33f-f76b-4f6d-b72b-8f9f26033b0eOH PUC, Case 06-0091-EL-UNC, Staff report of 1/12/2007; and Order of 7/11/07, http://dis.puc.state.oh.us/CaseRecord.aspx?CaseNo=06-0091OH PUC, Case 07-1080-GA-AIR, Order on January 7, 2009, http://dis.puc.state.oh.us/DocumentRecord.aspx?DocID=def5f7ab-e174-4a78-9961-a241c93e3a3fOH PUC, Case 08-920-EL-SSO, http://dis.puc.state.oh.us/TiffToPDf/A1001001A08G31B74801D05501.pdfOH PUC, Case 09-512-GE-UNC, Entry on June 24, 2009, http://dis.puc.state.oh.us/DocumentRecord.aspx?DocID=8ec155c8-d3ea-4d92-bb3c-e9f1ce523726

OH Revised Code 4928.61 and 4928.62, http://codes.ohio.gov/orc/4928.61OH Revised Code 4928.64 et seq, http://codes.ohio.gov/orc/4928

OH Revised Code 4929.02(A)(12), http://codes.ohio.gov/orc/4929.02

Orans, Ren et al, "Inclining for the Climate," in Public Utilities Fortnightly, May 2009

PJM, Tariff filing to implement proposed changes to RPM, Docket Nos. ER05-1410 et. al., December 12, 2008, http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13672185SIP Call, http://www.epa.state.oh.us/dapc/files/OhioGuidanceFINAL.pdf

CAIR, http://www.epa.state.oh.us/dapc/regs/regs.html#3745 109 Scroll down to OAC 3745-109

PJM, Report Proposing Changes to RPM, Docket Nos. ER05-1410 et. al., December 12, 2008, http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13672172

OHIO through 12/31/09; see citations at end of document

Natural Gas

Updated by / Date Update notes for 2010 activity


BSD 7/9/09

BSD 6/5/09BH 7/10

Natural gas utilities are required to file forecast reports, and the utilities serving fifteen thousand or more customers must include a description of their energy conservation programs and policies; however, a resource plan is not required (OH PUC Rules 4901:5-7). BSD 6/5/09

BH 7/10

BSD 6/5/09BH 7/10


CS 4/09CS 5/10

State policy includes the "alignment of natural gas company interests with consumer interest in energy efficiency and energy conservation" (OH Revised Code §4929.02(A)(12)).

BSD 6/4/09BH 7/10

BSD 7/9/09

A commission staff report evaluating Duke's EE electric and gas plan in 2007 states that the TRC test is generally used. The Commission later approved the plan, which included some gas measures (OH PUC, Case 06-0091-EL-UNC, Staff report of 1/12/2007; and Order of 7/11/07).

BSD 7/9/09BH 7/10

A 2005 ACEEE report estimated the potential of aggressive EE programs to reduce consumer use of natural gas and peak electricity generated by natural gas in the Midwest region, including OH (ACEEE, 2005).

BSD 7/9/09BH 7/10

BSD 7/9/09BH 7/10

Columbia Gas is required to saving 1.5% of their load over three years (Wilson Gonzalez, OCC; need citation).

BSD 7/9/09BH 7/10 See SB232 from 2010 session.

BH 7/10

BSD 7/9/09BH 7/10

BSD 6/5/09BH 7/10

A regulatory proceeding opened in 2009 to establish protocols for EM&V of EE and peak demand reduction programs, including the establishment of a Technical Reference Manual (OH PUC, Case 09-512-GE-UNC). The proceeding was on-going at the end of 2009.

BSD 6/5/09BH 7/10

BH 7/10

BH 7/10

Resource plans are not required.

BH 7/10

Natural gas utilities administer programs at their own initiative; but OH has not formally established this requirement by law. However, most or all gas utilities have approved EE budgets or programs.

BSD 6/5/09BH 7/10

BSD 6/5/09BH 7/10

GE-MEEA-7/28/10: Hearings in the RCAC toward updating the residiential code to IECC 2009 are underway, but no date has yet been set for a vote on the issue.

BSD 6/5/09BH 7/10


BSD 6/5/09

EPA 5/10


BSD 6/5/09BH 7/10

Should check the upcoming forecast and ESP plans for EE provisions that may pertain to education.

OCC Wilson Gonzalez says, "Each Utility in the State of Ohio has it's own Energy Efficiency/Demand Side Management Collaborative." GE-MEEA-7/28/10: A bill (HB 443) to set up a statewide Stakeholder Advisory Group died in committee.

BH 7/10

BSD 6/4/09

Cost recovery mechanisms have been established in rate cases to recover the EE costs of new natural gas programs, according to Wilson Gonzalez, OH Consumers' Counsel.

BSD 6/4/09BH 7/10

BSD 6/8/09BH 7/10

Spending is planned to be ramped up in future years.


BSD 6/8/09

In 2008, the Commission authorized Duke Energy and Dominion East Ohio to adopt a Straight Fixed Variable rate structure. Those two approvals were challenged at the OH Supreme Court, and the case was still pending at the end of 2009.The Commission approved decoupling for Vectren Energy in 2006; however, the decision was appealed (OH PUC, Case 05-1444-GA-UNC). In 2009, the Commission authorized Vectren to adopt a Straight Fixed Variable rate structure that sets a partial fixed / partial volumetric rate for the first year; and a full fixed rate for following year (OH PUC, Case 07-1080-GA-AIR, Order on 1/7/09). An application for rehearing in this case was denied by the Commission (OH PUC, Case 05-1444-GA-UNC, Order on 2/4/09). Legislation passed in 2008 authorizes a natural gas utility to apply for Commission approval of an alternative rate plan that includes a revenue decoupling mechanism; it also adds an objective to the statutory natural gas policy to promote an alignment of natural gas company interests with consumer interests in energy efficiency and energy conservation (OH Revised Code 4929.01(A), 4929.02(A)(12), and 4929.051).

BSD 6/8/09BH 7/10

See summary of Supreme Court decision from 1/26/10 upholding the SFV rates; in sharepoint.

BSD 6/8/09BH 7/10

See 5.1.1 for information on Straight Fixed Variable rates.


MRD 05/2010 Confirmed with Kim Wissman at PUC [email protected] (614)466-6692

BSD 6/8/09BH 7/10

BSD 6/8/09BH 7/10

updated though 2007

ACH 6/2010

ACH 6/2010

JR 5/2010

Citations

ACEEE, Examining the Potential for Energy Efficiency to Help Address the Natural Gas Crisis in the Midwest, January 2005, http://www.aceee.org/pubs/u051.htmACEEE, Shaping Ohio's Energy Future: Energy Efficiency Works, March 2009, http://www.aceee.org/store/proddetail.cfm?CFID=4867142&CFTOKEN=98975491&ItemID=458&CategoryID=7


Contacted: Sandy Siegel (614) 644-7694, [email protected] and Daniel R. Johnson, Johnson, [email protected]

FERC, Order on PJM RPM Compliance Issues, Docket Nos ER05-1410 et. al., October 30, 2009, http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13765680FERC, Order Regarding PJM Report and Tariff Filings, Docket Nos. ER05-1410 et. al., March 26, 2009, http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13701842

OH PUC, Case 05-1444-GA-UNC, Order on February 4, 2009, http://dis.puc.state.oh.us/DocumentRecord.aspx?DocID=4e98e33f-f76b-4f6d-b72b-8f9f26033b0eOH PUC, Case 06-0091-EL-UNC, Staff report of 1/12/2007; and Order of 7/11/07, http://dis.puc.state.oh.us/CaseRecord.aspx?CaseNo=06-0091OH PUC, Case 07-1080-GA-AIR, Order on January 7, 2009, http://dis.puc.state.oh.us/DocumentRecord.aspx?DocID=def5f7ab-e174-4a78-9961-a241c93e3a3f

OH PUC, Case 09-512-GE-UNC, Entry on June 24, 2009, http://dis.puc.state.oh.us/DocumentRecord.aspx?DocID=8ec155c8-d3ea-4d92-bb3c-e9f1ce523726

PJM, Tariff filing to implement proposed changes to RPM, Docket Nos. ER05-1410 et. al., December 12, 2008, http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13672185PJM, Report Proposing Changes to RPM, Docket Nos. ER05-1410 et. al., December 12, 2008, http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13672172

Confirmed with Kim Wissman at PUC [email protected] (614)466-6692

OKLAHOMA through 12/31/09Electric


1.1 Y

1.2A

N

1.3 N

1.4


1.5




Y-





2.1


N

2.2

A

2.3

Y


Y-


2.3

Y

A

2.4 N

2.5

A

a, c, d

A

N

2.5.4 Capacity Savings (Annual MW)R




Y



2.5


R

2.6

Y

A2.6.1.1 M&V is adequately funded

N

Y

Y

N





2.6

Y

a, b, c

A

2.7

Y

R, A

a

2.8

Resource plans are regularly updatedY

2.9






Y/Y

C54


2.9

2.10 N

2.11Y

S


3.1

Y

N




3.2

Y






75% of state access to ENERGY STAR New Homes

B77


3.2

3.3N


4.1


Y

A

a, b

4.1.3 Funding is for multi-year periods N

4.2 N

4.3

4.4 N

What proportion is due to regulated utility program? (who is sponsor)








B79


5.1

Y-

b

5.2

Y

5.3N

5.4


R5.4.2 Usage sensitive rates in place Y






Y-

5.4 5.4.3 AMI deployment planned

Y- / P


7.1

U

U -

7.2


S

7.3


7.4



A statewide interconnection policy is in place N

Y-

N

N

7.4

U-

U -

7.5 A

U

U

Citations

ACEEE, 2009 State Energy Efficiency Scorecard, October 2009, http://aceee.org/pubs/e097.pdf?CFID=571117&CFTOKEN=50109276.Building Codes Assistance Project / Online Code Environment & Advocacy Network, OK page: http://bcap-energy.org/state_status.php?state_ab=OKInstitute for Electric Efficiency, Dynamic Pricing Pilots and Programs by State, December 2009: http://www.edisonfoundation.net/iee/issueBriefs/IEE_DP_Map_Residential_1209.pdfOG&E Energy Efficiency Potential Study (2008): http://www.occ.state.ok.us/Divisions/PUD/Collaborative/OGE_EnergyEfficiencyPotential_FinalReport%2010-02-08.pdf. OK Administrative Code, Electricity Demand Programs, OAC 165-35-41(1)-(7), June 25, 2009: http://www.oar.state.ok.us/oar/codedoc02.nsf/frmMain?OpenFrameSet&Frame=Main&Src=_75tnm2shfcdnm8pb4dthj0chedppmcbq8dtmmak31ctijujrgcln50ob7ckj42tbkdt374obdcli00_OK Administrative Code, Integrated Resource Plan Rules, OAC 165:35:37 :http://www.ok.gov/redirect.php?link_id=320OK Administrative Code, Natural Gas Demand Programs, OAC 165-45-23(1)-(7), June 25, 2009: http://www.oar.state.ok.us/oar/codedoc02.nsf/frmMain?OpenFrameSet&Frame=Main&Src=_75tnm2shfcdnm8pb4dthj0chedppmcbq8dtmmak31ctijujrgcln50ob7ckj42tbkdt374obdcli00_OK Corporation Commission, Cause 200600285, Order 545168, 10/9/07: http://imaging.occeweb.com/AP/Orders/0035DC7E.pdfOK Corporation Commission, Utility IRP Filings, 2006: http://imaging.occeweb.com/imaging/PUDReport.aspx, select"Integrated Resource Planning 2006" from the Forms menuOklahoma Corporation Commission, OK Gas &Electric: Cause No. 200800059; Order 556179 http://imaging.occeweb.com/AP/Orders/OCC3770635.PDFOK Session Laws, House Bill 3394, May 22, 2008: http://www.oscn.net/applications/oscn/deliverdocument.asp?citeid=451974

As part of resource planning process, CHP is reviewed and incorporated where effective N

http://imaging.occeweb.com/PUD/Reports/002AB66F.pdf

http://imaging.occeweb.com/PUD/Reports/002AB83B.pdf



Oklahoma Corporation Commission, Tenth Electric System Planning Report, December 2008: http://occ.state.ok.us/Divisions/PUD/10th%20ESPR2008%20FINAL%20DOC.pdfOrans, Ren et al, Inclining for the Climate, Public Utilities Fortnightly, May 2009PSO Energy Efficiency Potential Study (2008): http://www.occ.state.ok.us/Divisions/PUD/Collaborative/PSO%20Report%20Final%2010-01-08%20compatible%20version.doc.Utility-Scale Smart Meter Deployments, Plans & Proposals, February 2010: http://www.edisonfoundation.net/iee/issueBriefs/IEE_SmartMeterRollouts_update.pdf

OKLAHOMA through 12/31/09Electric

Natural Gas


N

N

N

N

N


EE is equivalent to supply side resources as a result of the IRP. See 1.2.1 below.

A new IRP process in OAC 165: 35-37, effective in 2006, requires utilities to prepare IRPs every three years that consider the impact of existing and potential DSM to meet forecasted demand. Some utilities' IRP filings have indicated an interest in increasing DSM activities.

N

Y-

A

Y

Oklahoma has not commited to energy efficiency for utilities in statute. However, Oklahoma has addressed energy efficiency in other areas. In 2008 the Oklahoma Legislature created the "Oklahoma Energy Efficiency and Emission Reduction Program" under Statute 2-3-109 which is to fund activities designed to reduce air pollution. In 2009 Statute 3-4-106 imposed a duty on state agencies to develop and implement energy efficiency and conservation plan strategies for operation swithin state buildings. Energy efficiency rules were passed in 2009. See 2.7.1 below.

EE rules were issued in 12/08, and went into effect on July 1, 2009. Oklahoma Administrative Code (OAC) 165:35-41-5(b) states "[w]hether a program is cost-effective will be determined by the Commission and may be based on the tests found in the California Standard Practice Manual." Those tests "are to be used in conjunction with one another and no one test may be used to deem a program to be lacking in cost-effectiveness." Results of the RIM test must also include an estimate of the impact on average customer bills. In addition, the rules state in 165:35-41-4(b)(10) that programs targeted to low-income or hard-to-reach customers may have a lower threshold of cost-effectiveness than other programs.

EE rules were issued in 2008, and went into effect on June 25, 2009. Oklahoma Administrative Code (OAC) 165:45-23-5(c) states "[w]hether a program is cost-effective will be determined by the Commission and may be based on the tests found in the California Standard Practice Manual." Those tests "are to be used in conjunction with one another and no one test may be used to deem a program to be lacking in cost-effectiveness." Results of the RIM test must also include an estimate of the impact on average customer bills. In addition, the rules state in 165:45-23-4(b)(9) that programs targeted to low-income or hard-to-reach customers may have a lower threshold of cost-effectiveness than other programs.

Potential studies were commissioned by and completed for Public Service Co. of OK, and OK Gas & Electric in 2008.

Under OAC 165: 45-23-2(b) "the Commission may set specific savings goals for each utility to reduce natural gas usage and/or the rate of growth of natural gas usage generally, without adversely affecting customer comfort or state economic activity, based on market potential studies, base line studies, gas supply portfolios, risk management plans or other evidence." When individual utility plans are approved by the Commission they will need to comply with these rules.

Y

A

N

Y

A

a,c,d

A

N

214 MW savings were reported for 2007.

Energy Efficiency rules passed in 2009 require that demand portfolios shall contain programs for all customer sectors, including programs for low-income and hard-to-reach customers. It is unclear whether approved EE plans under the new rules reached all customer classes in 2009. When individual utility plans are approved by the Commission they will need to comply with these rules.

Energy Efficiency rules passed in 2009 require that demand portfolios shall contain programs for all customer sectors, including programs for low-income and hard-to-reach customers. It is unclear whether approved EE plans under the new rules reached all customer classes in 2009. When individual utility plans are approved by the Commission they will need to comply with these rules.

OAC 165:35-41-2(b) reqires that the "Commission shall set specific savings goals for each utility to reduce the rate of growth of peack demand, energy useage, and capacity addition" as part of the hearing process for approval of a utlity's energy efficiency and demand response programs. A "goal" may be expressed "in kilowatts, kilowatt-hours, percentage reductionor limitation, years that anticipated construction of utility plant is delayed, and/or another quantifiable measurement approved by the Commission." When individual utility plans are approved by the Commission they will need to comply with these rules.

OAC 165: 45-23-2 (b) requires that the Comission may set specific savings goals for each utility to reduce natural gas usage and/or the rate of growth of natural gas usage generally, without adversly affecting customer comfort or state economic activity, based on market potential studies, base line studies, gas supply portfolios, risk management plans or other evidence." When individual utility plans are approved by the Commission they will need to comply with these rules.

OAC 165:35-41-2, passed in mid-2009, requires that the proposed goals be based on "market potential studies, IRPs, or other evidence."

OAC 165: 45-23-2, passed in mid-2009, requires that the proposed goals be based on "market potential studies, IRPs, or other evidence."

Y

A

N

Y

Y

N

ACEEE issued its 2009 State Energy Efficiency Scorecard (Scorecard) in October 2009. Among other things, the Scorecard tracks annual EE program savings by each state in 2007 (the most recent year for which relevant data are available for all jurisdictions). According to the Scorecard, OK's total incremental electric savings (MWh) was 203 in 2007 which was less than 0.05% of savings as a percent of electricity sales and ranked OK 42nd when compared with other states.

EE rules were issued in 12/08, and went into effect on July 1, 2009. Oklahoma Administrative Code (OAC) 165:35-41-6(1) states "Utilities are responsible for timely evaluation, measurement, and verification of their energy efficiency and demand response programs."

EE rules were issued in 2008, and went into effect on June 25, 2009. Oklahoma Administrative Code (OAC) 165:45-23-6(a) states "Utilities are responsible for timely evaluation, measurement, and verification of their energy efficiency and demand response programs."

OAC 165:35-41-4(a)(14) states that each DSM portfolio application shall contain "[a]n annual budget for each program, providing detail for program costs, and differentiating evaluation, measurement, and verification costs from other program costs." It is not known whether M & V is adequately funded until the first plans pursuant to the new rules are approved.

OAC 165: 45-23-4(a)(14) states that each DSM portfolio application shall contain "[a]n annual budget for each program, providing detail for program costs, and differentiating evaluation, measurement, and verification costs from other program costs." It is not known whether M & V is adequately funded until the first plans pursuant to the new rules are approved.

OAC 165:35-41-6(b)(1) states that "the intent of the evaluation, measurement, and verification process is to provide a reliable calculation of the net savings produced by energy efficiency programs."

OAC 165:45-23-6(b)(1) states that "the intent of the evaluation, measurement, and verification process is to provide a reliable calculation of the net savings produced by energy efficiency programs."

OAC 165: 35-41-4(a) requires utilities to propose energy efficiency and demand response programs "at least once every three years." E, M & V is a required part of each portfolio. OAC 165: 35-41-6 delineates the E, M & V requirements.

OAC 165: 45-23-4(a) requires utilities to propose energy efficiency and demand response programs "at least once every three years." E, M & V is a required part of each portfolio. OAC 165: 45-23-6 delineates the E, M & V requirements.

OAC 165: 35-41-6 requires that each electric utility is responsible for "timely evaluation, measurement, and verification of their energy efficiency programs." Thus E, M & V is not conducted by an independent party, but by the utility.

OAC 165: 45-23-6 requires that each electric utility is responsible for "timely evaluation, measurement, and verification of their energy efficiency programs." Thus E, M & V is not conducted by an independent party, but by the utility.

Y

a,b,c

A

Y

A

a

N

OAC 165: 35-41-6(g) requires that the "evaluation, measurement, and verification process shall produce reports that are fully documented, auditable, and transparent."

OAC 165: 45-23-6(g) requires that the "evaluation, measurement, and verification process shall produce reports that are fully documented, auditable, and transparent."

OAC 165: 35-41-6(e) states that "deemed savings, customer bill analysis, on-site metering, and statistical sampling will be permitted in appropriate applications.

OAC 165: 45-23-6(g) states that "deemed savings, customer bill analysis, on-site metering, and statistical sampling will be permitted in appropriate applications.

"Quick Start" demand programs were approved on a case-by-case basis in 2008 for a couple utilities. New rules, effective mid-2009, require that "all electric utilities under rate regulation of the Commission shall propose, at least once every three years, and be responsible for the administration and implementation of a demand portfolio of EE and demand response programs." The Rules include a list of items that must be included in each proposal. High-volume electricity users, defined as a customer who uses more than 15 million kWh of electricity per year, may opt out of EE programs after the utility has a reasonable opportunity to present customized opportunities to the customer.

New rules, effective mid-2009, require that "all utilities under rate regulation of the Commission having more than 25,000 meters in the state of Oklahoma shall propose, at least once every three years, and be responsible for the administration and implementation of a demand portfolio of EE and demand response programs." The Rules include a list of items that must be included in each proposal.

IRPs described in 1.2.1 above must be updated every 3 years, with the first plan due on or before October 1, 2006.

2003 IECC mandatory in jurisdictions that haven't adopted a code and for state owned/leased buildings. Updates are reviewed every three years. The most recent update became effective January 1, 2004.


N

N

2003 IECC mandatory in jurisdictions that haven't adopted a code and for state owned/leased buildings. Updates are reviewed every three years. The most recent update became effective January 1, 2004.

House Bill 3394 passed on May 22, 2008 requiring the OK Dept. of Central Services to develop a high-performance building certification program (LEED or Green Globes) for state construction and renovation projects. The law applies to new construction or substantial renovation (projects that cost more than 50% of the value of the facility) in buildings larger than 10,000 square feet, which use state funds for at least 50% of the project cost. The buildings must meet the highest level of certification attainable under a payback period of 5 years or less. Public schools and some other buildings are exempted. This legislation went into effect August 21, 2009.

A Demand Program Collaborative, also known as a Rulemaking Collaborative, met in 2008 to discuss developing new rules for demand programs. According to a local contact, currently there is no process in place.

A Demand Program Collaborative, also known as a Rulemaking Collaborative, met in 2008 to discuss developing new rules for demand programs. According to a local contact, currently there is no process in place.


Y

A

a, b

Oklahoma Gas and Electric Company (OG&E), Public Service Company of Oklahoma,Oklahoma Natural Gas

Quick start programs approved in July 2008 for OK Gas & Electric (Cause No. 200800059, Order # 556179 and Public Servic Co. of OK included cost recovery of program costs, lost revenues, and incentives. OAC 165: 35-41-5(d) states that utilities' recovery of costs in rates or riders will be determined by the Commission on a utility-specific basis, and that "costs other than for inducement shall not exceed ten percent of program costs and all program costs shall not add more than $1.90 to the residential sector's monthly average customer bill." Time-of-use devices and installation are not included in these caps.

OAC 165: 45-23-5(d) states that utilities' recovery of costs in rates or riders will be determined by the Commission on a utility-specific basis, and that "costs other than for inducement shall not exceed ten percent of program costs and all program costs shall not add more than $1.33 to the residential sector's monthly average customer bill." Time-of-use devices and installation are not included in these caps.

ACEEE issued its 2009 State Energy Efficiency Scorecard (Scorecard) in October 2009. Among other things, the Scorecard tracks spending on EE by each state in 2007 (the most recent year for which relevant data are available for all juriusdictions). According to the Scorecard, OK total spending on EE in 2007 was $173,000, which was less than 0.05% of total utility revenues and ranked OK 45th in state spending.


Y-

b

Y

N

N

Y

In Cause 200600285, Order 545168 issued on October 9, 2007, the Commission declined to adopt decoupling (termed a formula-based rate) proposed by and for Public Service Co. of OK. The Commission found, however, that the mechanism has merit and said it will re-examine the issue in the future if other parties wish to file proposals. Lost revenue recovery will be determined on a case-by-case basis.

Lost revenue recovery will be determined on a case-by-case basis.

Quick start programs approved in July 2008 for OK Gas & Electric and Public Service Co. of OK included incentives: 25% of costs with measurable results, and 15% of costs with non-measurable results, such as EE education. Under the new demand side management rules which became effective in mid-2009, "incentive" means "a sum of money a utlity may be allowed to recover-- in addition to program costs and lost net revenues -- which sum is designed to reward the utility for successful and appropriate energy efficiency and demand response program performance." OAC 165: 35-41-4(a)(19) requires that each portfolio application contain a detailed explanation of cost-recovery and "additional incentives the utility proposes it requires to make the programs workable."

Under the new demand side management rules which became effective in mid-2009, "incentive" means "a sum of money a utlity may be allowed to recover-- in addition to program costs and lost net revenues -- which sum is designed to reward the utility for successful and appropriate energy efficiency and demand response program performance." OAC 165:45-23-4(a)(18) requires that each portfolio application contain a detailed explanation of cost-recovery and "additional incentives the utility proposes it requires to make the programs workable."

One of the state's two largest utilities has declining block rates for non-summer residential customers. See Cause No. 200600285, Order No. 545168 dated October 9, 2007.

OG & E will include variable peak pricing for 42,000 participants in its "SmartPower" pilot in Norman, OK. See Cause No. 201000016.


OG & E was awarded $130M in SGIG funds to deploy a smart grid network to the entire service territory, including meters and dynamic pricing options.

Oklahoma does not have statewide interconnection standards. Public Service Co of Oklahoma - a subsidiary of AEP. AEP has a standard interconnection application form. A lockable disconnecting switch is required. The application fees are either $100 for a single phase system up to 25 kW and $500 for all others. If a study is required then additional charges may apply. Most systems have to meet IEEE 1547 technical standards.

Oklahoma Gas and Electric Co, IOU, has interconnection for net metered systems - up to 25kW for residential systems; up to 300kW for all others. Systems must comply with national safety standards. Protective devices and an external disconnect must be installed. Indemnity insurance is required. http://www.oge.com/business-customers/billing-and-payment/Pages/RateInfo.aspxOklahoma has a statewide net metering policy established by O.A.C. § 165:40-9. IOUs and electric cooperatives must file net-metering tariffs for customer owned renewable energy systems and CHP facilities up to 100 kW. Net metering is available to all customer classes. Utilities are not required to purchase NEG from customers, but the customer may request the utility purchase the generation and if the utility agrees it will be purchased at the avoided cost rate.

O.A.C. § 165:40-9 can be accessed here, http://www.occ.state.ok.us/Divisions/GC/OCCRULES/permrules/Chap40.pdf.

There is no statewide policy on exit fees in Oklahoma, however no utilities in the state charge exit fees.

Oklahoma does not have a statewide policy on standby rates

Oklahoma Gas & Electric Co's IRP mentions CHP

Citations

ACEEE, 2009 State Energy Efficiency Scorecard, October 2009, http://aceee.org/pubs/e097.pdf?CFID=571117&CFTOKEN=50109276.Building Codes Assistance Project / Online Code Environment & Advocacy Network, OK page: http://bcap-energy.org/state_status.php?state_ab=OKInstitute for Electric Efficiency, Dynamic Pricing Pilots and Programs by State, December 2009: http://www.edisonfoundation.net/iee/issueBriefs/IEE_DP_Map_Residential_1209.pdfOG&E Energy Efficiency Potential Study (2008): http://www.occ.state.ok.us/Divisions/PUD/Collaborative/OGE_EnergyEfficiencyPotential_FinalReport%2010-02-08.pdf. OK Administrative Code, Electricity Demand Programs, OAC 165-35-41(1)-(7), June 25, 2009: http://www.oar.state.ok.us/oar/codedoc02.nsf/frmMain?OpenFrameSet&Frame=Main&Src=_75tnm2shfcdnm8pb4dthj0chedppmcbq8dtmmak31ctijujrgcln50ob7ckj42tbkdt374obdcli00_OK Administrative Code, Integrated Resource Plan Rules, OAC 165:35:37 :http://www.ok.gov/redirect.php?link_id=320OK Administrative Code, Natural Gas Demand Programs, OAC 165-45-23(1)-(7), June 25, 2009: http://www.oar.state.ok.us/oar/codedoc02.nsf/frmMain?OpenFrameSet&Frame=Main&Src=_75tnm2shfcdnm8pb4dthj0chedppmcbq8dtmmak31ctijujrgcln50ob7ckj42tbkdt374obdcli00_OK Corporation Commission, Cause 200600285, Order 545168, 10/9/07: http://imaging.occeweb.com/AP/Orders/0035DC7E.pdfOK Corporation Commission, Utility IRP Filings, 2006: http://imaging.occeweb.com/imaging/PUDReport.aspx, select"Integrated Resource Planning 2006" from the Forms menuOklahoma Corporation Commission, OK Gas &Electric: Cause No. 200800059; Order 556179 http://imaging.occeweb.com/AP/Orders/OCC3770635.PDFOK Session Laws, House Bill 3394, May 22, 2008: http://www.oscn.net/applications/oscn/deliverdocument.asp?citeid=451974

Oklahoma Gas & Electric Co - Schedules MS-1, SS-1, and BUS-1 - standby service is charged through a fixed customer fee, high demand charges and moderate energy charges. Demand charges are based on the higher of a low demand rate multiplied by the maximum 15 minute demand of each day in the billing month, or a moderate demand charge assess on the contract demand. Rate available at: http://www.oge.com/BUSINESS-CUSTOMERS/LARGE-BUSINESS-SOLUTIONS/Pages/Rates.aspx

Public Service Co of Oklahoma - According to the "Rules and Regulations" customers are not allowed to operate in parallel with the utility or get standby service. QFs that are under 100 kW can interconnect but must go under the net energy billing schedule. Rate available at: https://www.psoklahoma.com/account/bills/rates/PSORatesTariffsOK.aspxA new IRP process, effective in 2006, is found in rules OAC 165:35-37, CHP is not mentioned in the planning requirements. The first IRPs were due in 2006, with subsequent plans due every three years.

http://www.oar.state.ok.us/oar/codedoc02.nsf/All/15A17CFCA82DAC5E86257506001627B9?OpenDocument

http://imaging.occeweb.com/PUD/Reports/002AB66F.pdfPublic Service Co of Oklahoma's IRP assesses cogeneration facilities


http://www.oar.state.ok.us/oar/codedoc02.nsf/All/15A17CFCA82DAC5E86257506001627B9?OpenDocument



Oklahoma Corporation Commission, Tenth Electric System Planning Report, December 2008: http://occ.state.ok.us/Divisions/PUD/10th%20ESPR2008%20FINAL%20DOC.pdfOrans, Ren et al, Inclining for the Climate, Public Utilities Fortnightly, May 2009PSO Energy Efficiency Potential Study (2008): http://www.occ.state.ok.us/Divisions/PUD/Collaborative/PSO%20Report%20Final%2010-01-08%20compatible%20version.doc.Utility-Scale Smart Meter Deployments, Plans & Proposals, February 2010: http://www.edisonfoundation.net/iee/issueBriefs/IEE_SmartMeterRollouts_update.pdf

Updated by / Date

CK 6/10

CK 6/10

CK 6/10

CK 6/10

CK 6/10


CK 6/10

BH 5/09, CK 6/10

BH 5/09, CK 6/10

SEEA Potential study came out in 2010 for Oklahoma at : http://www.seealliance.org/se_efficiency_study/oklahoma_efficiency_in_the_south.pdf

BH 5/09, CK 6/10

BH 5/09, CK 6/10

CK 6/10

CK 6/10

BH 5/09

See House Bill 3028 passed in 2010, which allows up to 25% of EE to meet RPS

BH 5/09, CK 6/10

BH 5/09, CK 6/10

CK 6/10

CK 6/10

CK 6/10

CK 6/10

CK 6/10

BH 5/09, CK 6/10

BH 5/09, CK 6/10

BH 5/09, CK 6/10

BH 5/09, CK 6/10

BH 5/09, CK 6/10

BH 5/09, CK 6/10

BH 5/09, CK 6/10

EPA 5/10

Personal Communication with Fairo Mitchell, OK Corporation Commission, on

Natural gas edu programs will be submitted this year per Fairo Mitchell

CK 8/10 per state reviewer

BH 5/09, 6/10

CK 6/10

CK 6/10

BH 5/09, CK 6/10

BH 5/09, CK 6/10

BH 5/09, CK 6/10

CK 6/10

They opened a docket in early 2010 on utility incentives.

BH 5/09, CK 6/10

MRD 05/2010 Confirmed with George Kiser at OK Corporate Commission [email protected] (405) 521-6878

MRD 05/2010

See Cause 201000029 in 2010.



ACH 6/2010

ACH 6/2010

MRD 06/2010 Unable to contact the state. It does not look like there have been any changes.

Institute for Electric Efficiency, Dynamic Pricing Pilots and Programs by State, December 2009: http://www.edisonfoundation.net/iee/issueBriefs/IEE_DP_Map_Residential_1209.pdf

OK Administrative Code, Electricity Demand Programs, OAC 165-35-41(1)-(7), June 25, 2009: http://www.oar.state.ok.us/oar/codedoc02.nsf/frmMain?OpenFrameSet&Frame=Main&Src=_75tnm2shfcdnm8pb4dthj0chedppmcbq8dtmmak31ctijujrgcln50ob7ckj42tbkdt374obdcli00_

OK Administrative Code, Natural Gas Demand Programs, OAC 165-45-23(1)-(7), June 25, 2009: http://www.oar.state.ok.us/oar/codedoc02.nsf/frmMain?OpenFrameSet&Frame=Main&Src=_75tnm2shfcdnm8pb4dthj0chedppmcbq8dtmmak31ctijujrgcln50ob7ckj42tbkdt374obdcli00_

Confirmed with George Kiser at OK Corporate Commission [email protected] (405) 521-6878

SOUTH DAKOTA through 12/31/09Electric


1.1Y

1.2


In the Commission's December of 2009 order on EL08-028, it adopted a new standard that reads, "Each electric utility shall (A) integrate cost-effective energy efficiency resources into the plans and planning processes of the electric utility; and (B) adopt policies establishing cost-effective energy efficiency as a priority resource; and (C) file integrated resource plans that are filed with other state regulatory agencies when those plans may affect South Dakota power supply and rates; or if no integrated resource plans are required to be filed in other states, file any integrated resource plans prepared for South Dakota power supply planning processes."

http://puc.sd.gov/commission/orders/electric/2009/el08-028C.pdf


Y

In the Commission's December of 2009 order on EL08-028, it adopted a new standard that reads, "Each electric utility shall (A) integrate cost-effective energy efficiency resources into the plans and planning processes of the electric utility; and (B) adopt policies establishing cost-effective energy efficiency as a priority resource; and (C) file integrated resource plans that are filed with other state regulatory agencies when those plans may affect South Dakota power supply and rates; or if no integrated resource plans are required to be filed in other states, file any integrated resource plans prepared for South Dakota power supply planning processes." In Docket EL08-028, the Commission updated its IRP Planning requirements to either require informational filings for plans developed by the utility in another jurisdiction that impact the SD utility, or to file an IRP.

1.2

N/A

1.3 N

1.4


1.5


2.1


S

2.2

http://legis.state.sd.us/statutes/DisplayStatute.aspx?Type=Statute&Statute=49-41B-3 Black Hills Corporation 10Yr Plan and IRP http://puc.sd.gov/commission/10yearplan/bhp2010.pdf; http://puc.sd.gov/commission/orders/electric/2009/el08-028C.pdf





Y-

South Dakota Code 49-46-3 requires electric and gas utilities to offer residential audits and to otherwise comply with energy conservation plans developed by the Governor's Office of Economic Policy.

South Dakota Code 49-46-3 is available at http://legis.state.sd.us/statutes/DisplayStatute.aspx?Type=Statute&Statute=49-46-3


Y-

In its 5/8/08 EE Plan filing, Otter Tail evaluated its proposed programs with all five of the benefit-cost tests. The MidAmerican EE Plan relies on the Societal Test.

2.2

2.3

N

R

2.4 N

2.5

Y-

Otter Tail EE Pilot, Docket EL07-011, 7/28/08 Order: http://puc.sd.gov/commission/orders/electric/2008/el07-011.pdf; and 5/8/08 Revised EE Plan: http://puc.sd.gov/commission/dockets/electric/2007/el07-011/050808.pdf http://puc.sd.gov/commission/dockets/electric/2007/el07-015/introduction.pdf



Y

Program offerings vary by utility. Otter Tail Power Company received approval on 7/28/08 for EE programs that will reach residential, commercial, and industrial customers, but the programs do not specifically target low-income customers. MidAmerican received approval on through a decision on 3/31/09 for EE programs and reaches residential and "non-residential" customers.

Otter Tail EE Pilot, Docket EL07-011, 7/28/08 Order: http://puc.sd.gov/commission/orders/electric/2008/el07-011.pdf; and 5/8/08 Revised EE Plan: http://puc.sd.gov/commission/dockets/electric/2007/el07-011/050808.pdf MidAmerican EE Program Proposal, Docket EL07-015 http://puc.sd.gov/commission/dockets/electric/2007/el07-015/introduction.pdf



In Otter Tail's 7/28/08 EE Plan approval, the Commission agreed to the company's proposal for a financial incentive if the company achieves its energy savings goal that is set in the plan. MW and MWh goals are established for the MidAmerican Plan.

2.5

R

c

N



2.6

R

R


Otter Tail EE Pilot, Docket EL07-011, 7/28/08 Order: http://puc.sd.gov/commission/orders/electric/2008/el07-011.pdf; and 5/8/08 Revised EE Plan: http://puc.sd.gov/commission/dockets/electric/2007/el07-011/050808.pdf



The Legislature enacted a voluntary objective in 2008 that 10% of retail electricity sales be obtained from renewable and recycled energy by 2015. Efficiency was not allowed to assist in meeting this objective in the 2008 law. In March 2009, the policy was modified, also allowing "conserved energy" to meet the objective. It went into effect on July 1, 2009.

HB 1123; SB 57 http://legis.state.sd.us/sessions/2009/Bill.aspx?File=SB57ENR.htm


N

M&V plays a role in each of the 3 utilities' program. In its 7/28/08 approval of Otter Tail's EE Plan, the Commission required the utility to perform a yearly evaluation of the plan, but details are not prescribed. An EE Plan by Mid-American was approved as part of its filing in Docket EL07-015. Details of the plan are not prescribed.

The M&V portion of Mid American's EE filing in Docket EL07-015 is available at http://www.state.sd.us/puc/commission/dockets/electric/2007/el07-015/d1-1.pdf

Otter Tail EE Pilot, Docket EL07-011, 7/28/08 Order: http://puc.sd.gov/commission/orders/electric/2008/el07-011.pdf; and 5/8/08 Revised EE Plan: http://puc.sd.gov/commission/dockets/electric/2007/el07-011/050808.pdf

2.6

Y-

Y-

Y-

Y-

2.7

N

a


Otter Tail Power is given an incentive for performance, based on energy savings. Review of performance bonus is reviewed by commission. It remains unclear whether there is any independent review of utility program performance.

Otter Tail EE Pilot, Docket EL07-011, 7/28/08 Order: http://puc.sd.gov/commission/orders/electric/2008/el07-011.pdf


MidAmerican EE Plan includes provisions for biennial filings with the Public Service Commission.

http://puc.sd.gov/commission/dockets/electric/2007/el07-015/022509d1.pdf2.6.1.4 M&V is conducted by an independent party


MidAmerican EE Plan includes provisions for biennial filings with the Public Service Commission. Opportunities for stakeholder involvement remain obscure.http://puc.sd.gov/commission/dockets/electric/2007/el07-015/022509d1.pdf


The MidAmerican EE Plan approved in March of 2009 includes a variety of approached so measurement and verification of savings. MidAmerican M&V have not been conducted yet under the plan.http://puc.sd.gov/commission/dockets/electric/2007/el07-015/022509d1.pdf


EE spending is minimal in SD and the state has no requirements, but utilities undertake some programs.

http://www.cee1.org/files/StateofEEIndustry2009.pdf


http://puc.sd.gov/commission/dockets/electric/2007/el07-015/022509d1.pdf

2.8


Y-

2.9

N/N

http://bcap-ocean.org/code-status-residential

N/N

2.10 N

2.11

Y-

Resource plans that consider EE are not in place except for Black Hills Corporation, as noted in 1.2.1, although recent decisions favor increasing emphasis on IRP type efforts.in the Commission's December of 2009 order on EL08-028, it adopted a new standard that reads, "Each electric utility shall (A) integrate cost-effective energy efficiency resources into the plans and planning processes of the electric utility; and (B) adopt policies establishing cost-effective energy efficiency as a priority resource; and (C) file integrated resource plans that are filed with other state regulatory agencies when those plans may affect South Dakota power supply and rates; or if no integrated resource plans are required to be filed in other states, file any integrated resource plans prepared for South Dakota power http://puc.sd.gov/commission/orders/electric/2009/el08-028C.pdf


There is no statewide code. Some local jurisdictions have adopted versions of the IECC codes.


There is no statewide code. Some local jurisdictions have adopted versions of the IECC codes.

http://bcap-ocean.org/code-status-commercial



All state facilities must be built to the ASHRAE 90.1-1999 building code. The Legislature enacted a requirement in 3/08 that state building projects and renovations that cost more than $500,000 or include more than 5,000 square feet shall achieve LEED Silver certification, a two-globe rating in the Green Globes system, or a comparable rating. SB 202 passed in 2009 establishes energy savings targets of 50% for state buildings by 2015.


2.11

S


3.1

Y

N




3.2N

N


4.1


Y

SB 188: http://legis.state.sd.us/sessions/2008/Bills/SB188ENR.pdf; http://legis.state.sd.us/sessions/2009/Bills/SB202P.pdf



The SD Energy Smart Initiative, coordinated by the PUC, is composed of many of the utilities, and municipal utility associations, and is intended to foster the promotion of EE in SD. Stakeholders other than the utilities and their associations do not appear to be involved.

http://www.sdenergysmart.com/Partners.aspx




Otter Tail received approval on 7/28/08 for a cost recovery rider for its EE Plan. All customers will pay the same cost recovery charge. An EE Plan from Mid-American, in which cost-recovery was proposed to be funded with a rider, was approved in March of 2009. Previously, programs have been minimal and cost recovery has been done in rates.

http://www.sdenergysmart.com/Partners.aspx

B77


B79


4.1 R

R

a/b


4.2

4.3

4.4

5.1

Otter Tail EE Pilot, Docket EL07-011, 7/28/08 Order: http://puc.sd.gov/commission/orders/electric/2008/el07-011.pdf; and 5/8/08 Revised EE Plan: http://puc.sd.gov/commission/dockets/electric/2007/el07-011/050808.pdf http://puc.sd.gov/commission/dockets/electric/2007/el07-015/introduction.pdf

Mid-American's tariff rider was established in Docket EL07-015. http://puc.sd.gov/commission/dockets/electric/2007/el07-015/introduction.pdf


Current recovery is done via rates. Proposed recovery mechanisms include tariff riders.



Funds from carbon trading program support EERecommendation 5: Modify policies to align utility incentives with the delivery of cost-effective energy efficiency and modify

ratemaking practices to promote energy efficiency investments.5.1.1 Utility throughput incentive is addressed and disincentives are removed

N

The Commission affirmatively rejected any requirements relating to the throughput incentives in the context of their review of PURPA provisions of the 2007 Energy Independence and Security Act.



MidAmerican includes a lost margin recovery factor for its DSM programs that was approved in March of 2009.http://puc.sd.gov/commission/dockets/electric/2007/el07-015/introduction.pdf

http://puc.sd.gov/commission/dockets/electric/2007/el07-015/introduction.pdf

5.2

5.3N

5.4



Y-

Otter Tail received approval for an incentive in the Commission's 7/28/08 approval of its EE Plan. The shared-savings incentive awards Otter Tail a share of the total net benefits if the company reaches 100% of the proposed energy savings goal. The financial incentive is capped at 30% of the utility's approved EE Plan expenditures. A similar incentive structure was approved for MidAmerican in March 2009. Incentive provisions do not include a provision for penalties for program deficiencies.

Otter Tail EE Pilot, Docket EL07-011, 7/28/08 Order: http://puc.sd.gov/commission/orders/electric/2008/el07-011.pdf; and 5/8/08 Revised EE Plan: http://puc.sd.gov/commission/dockets/electric/2007/el07-011/050808.pdf; http://puc.sd.gov/commission/dockets/electric/2007/el07-015/introduction.pdf



Y-

Some utilities have pilot TOU rates in place. On 7/28/08, Otter Tail received approval to begin a residential demand control project that is a "close to real-time pricing" project; it will use a device that will notify customers of the need to curtail or reduce energy demand during peak times. EE Plan approved on 7/27/08, it In 2006, Docket EL06-018 was opened to consider PURPA recommendations, including time-based rates. In 2007, the Commission declined to mandate time-based metering for all customer classes. The Commission stated that it believes additional studies are needed related to the benefits of time-based metering.

5.4

R

R


5.4.3 AMI deployment planned N


Time of Delivery rates were approved for Xcel in Docket EL07-001. See http://www.state.sd.us/puc/commission/orders/electric/2007/el07-001OATR.pdf. Otter Tail EE Pilot, Docket EL07-011, 7/28/08 Order: http://puc.sd.gov/commission/orders/electric/2008/el07-011.pdf; and 5/8/08 Revised EE Plan: http://puc.sd.gov/commission/dockets/electric/2007/el07-011/050808.pdf

Documents related to Docket EL06-018 are available at http://www.state.sd.us/puc/commission/dockets/electric/2006/el06-018/el06-018.htm


7.1

A

7.2


U-

7.3


7.4



Y+

South Dakota adopted interconnection standards in May 2009. The standards apply to customers of investor-owned utilities – they do not apply to electric cooperatives or municipal utilities. There are four levels of interconnection for systems up to 10 MW: Tier 1 applies to inverter-based systems, up to 10 kW, that use lab-tested equipment; Tier 2 applies to systems, up to 2 MW, that use lab-tested equipment; Tier 3 applies to systems up to 2 MW that do not export electricity; Tier 4 applies to systems up to 10 MW that do no meet the requirements of Tier 1, Tier 2 or Tier 3. Technical screens have been established for each level, and the IEEE 1547 technical standard is used for all interconnections. Reasonable timeframes for application and approval are set forth in the rules. Utilities may require an external disconnect switch. Limited interconnection to area networks is permitted. General liability insurance is required with levels that vary by tier. For Tier 1 only “proof of adequate homeowners, general liability or commercial liability insurance sufficient to insure against all reasonably foreseeable direct liabilities given the size of the small generator facility” is necessary.

S.D. Administrative Code § 20:10:36 is available here: http://legis.state.sd.us/rules/DisplayRule.aspx?Rule=20:10:36

N South Dakota does not have a statewide net metering policy.

Northern States Power Co, IOU - a subsidiary of Xcel Energy does not have a net metering policy in place.

NThere is no statewide policy on exit fees in South Dakota, however no utilities in the state charge exit fees.

N South Dakota does not have a statewide policy on standby rates

7.4

U

U -

Northern States Power Co - Standby Service Rider - standby service is totally demand based with a reservation fee based on contract demand. Actual usage is billed under the regular rate for the customer based on size. Billing demand is typically based on the maximum 15 minute demand of the month with no ratchet. Rate available at: http://www.xcelenergy.com/South%20Dakota/Company/About_Energy_and_Rates/Energy%20Prices%20%28Rates%20and%20Tariffs%29/Pages/SDEnergy_Rates.aspx

Black Hills Power Inc - Rate SP-3B - to qualify for standby service a site must be a QF less than or equal to 100kW. All others must contract individually for standby service. A high demand and energy charge is billed for standby service, based on the maximum 15 minute demand or the contract demand. (high demand rate would be billed every month based on contract demand). Rate available at: http://www.blackhillspower.com/ratescc.htm

7.5

U

Citations


N

South Dakota Code 49-41B requires electric utilities to submit ten-year forecasts and plans, CHP is not mentioned in planning requirements. Also, during a rate case, the SD PSC requires IRP type of analysis to determine appropriate plant additions or DSM expenses.Certain regulated companies have IRP requirements in the other states they serve and they often submit these reports for SD PSC review.In Docket EL08-028 (opened in October 2008), the Commission determined that the current 10 year plans being provided were adequate and no further IRP filing requirement was necessary. Although, in the Commission's December of 2009 order on EL08-028, it adopted a new standard that was described in earlier sections. There is not explicit provision relevant to CHP. The new requirements have yet to yield plans that respond to the new policy.

http://legis.state.sd.us/statutes/DisplayStatute.aspx?Type=Statute&Statute=49-41B-3 and http://puc.sd.gov/Dockets/Electric/2008/el08-028.aspx

Black Hills Power Inc - IRP for 2007-2008 can be accessed below,

http://puc.sd.gov/commission/dockets/electric/2009/el09-018/tietjen2.pdf

http://puc.sd.gov/commission/dockets/electric/2009/el09-018/tietjen2.pdf

SOUTH DAKOTA through 12/31/09Natural Gas Updated by Update notes for 2010 activity


N

RA 8/10

N

RA 8/10


S

BH 7/09, RA 8/10

The State Energy Office has implemented a revolving loan fund for EE improvements. More information can be found from Michele Farris ([email protected]).

Y-

South Dakota Code 49-46-3 requires electric and gas utilities to offer residential audits and to otherwise comply with energy conservation plans developed by the Governor's Office of Economic Policy.

South Dakota Code 49-46-3 is available at http://legis.state.sd.us/statutes/DisplayStatute.aspx?Type=Statute&Statute=49-46-3

In GE09-001 NorthWestern proposed determining program viability on the TRC test. Commission staff has begun placing most emphasis on TRC with some on the RIM test. The plan was approved on May 4, 2010.

BH 7/09

BH 7/09, RA 8/10

R

N

BH 7/09; RA 8/10

Black Hills Power is conducting a cost-effective EE potential study as a result of their recent rate case, in preparation to file a suite of EE programs.

N

Program offerings vary by utility. Pilot programs for MDU were approved in 2005 in Docket NG05-016. MidAmerican received approval on EE programs on 3/31/09 for filings due on 3/1/10.

ACEEE reports that the Commission is also working with Xcel energy on an EE Proposal

http://www.state.sd.us/puc/commission/dockets/naturalgas/2005/NG05-016/NG05-016.htm; MidAmerican EE Plan Docket EL07-015 http://puc.sd.gov/commission/dockets/electric/2007/el07-015/introduction.pdf

The MidAmerican Plan includes therm savings estimates.

A plan may also be filed soon for XCel Energy

BH 7/09, RA 8/10

BH 7/09, RA 8/10

MidAmterican EE Plan; Docket EL07-015 http://puc.sd.gov/commission/dockets/electric/2007/el07-015/introduction.pdf

In RM09-002 the commission is currently considering rules to clarify the method for reporting conserved energy. Following this rule, annual reports should help answer 2.5.4 and 2.5.5

RA 8/10

Y-RA 8/10

Y-RA 8/10

Y-

RA 8/10

RA 8/10

MidAmerican EE Plan includes provisions for biennial filings with the Public Service Commission.http://puc.sd.gov/commission/dockets/electric/2007/el07-015/022509d1.pdf

MidAmerican EE Plan includes provisions for biennial filings with the Public Service Commission. Opportunities for stakeholder involvement remain obscure.http://puc.sd.gov/commission/dockets/electric/2007/el07-015/022509d1.pdfThe MidAmerican EE Plan approved in March of 2009 includes a variety of approached so measurement and verification of savings. MidAmerican M&V have not been conducted yet under the plan.http://puc.sd.gov/commission/dockets/electric/2007/el07-015/022509d1.pdf

BH 7/09, RA 8/10

BH 7/09, RA 8/10

BH 6/09, RA 8/10

SDCL 11-10-7 adopts the IECC as a voluntary standard for new residential buildings. SDCL 11-10-10-8 requires builders to

A statewide commercial energy code (a chapter of IBC 2006) is in place via SDCL 11-10-6, but local jurisdictions have the option of deleting the energy code chapter. A Workgroup has been formed by the Governor's Executive Order 2010-10 that is to recommend a plan of action for complying with ARRA requirements of having statewide adopted energy codes and enforcement of 90% by 2017.


Y

BH 7/09, RA 8/10

EPA 5/10


Y

BH 7/09, RA 8/10

Personal communication with Brian Rounds, SD PUC, 5/10/10

Cost recovery mechanisms vary from utility to utility. MDU requested and received cost recovery for pilot conservation programs in 2005. An EE Plan from Mid-American, in which cost-recovery was established in March of 2009.

R

R

a

N

BH 7/09, RA 8/10

RA 8/10 b -- see above.

MDU's tariff rider was approved in Docket NG07-012. See http://www.state.sd.us/puc/commission/dockets/naturalgas/2007/ng07-012/042007.pdf http://www.state.sd.us/puc/commission/dockets/naturalgas/2005/NG05-016/NG05-016.htm http://puc.sd.gov/commission/dockets/electric/2007/el07-015/introduction.pdf

Mid-American's tariff rider was established in Docket EL07-015.See http://puc.sd.gov/commission/dockets/electric/2007/el07-015/introduction.pdf

Recommendation 5: Modify policies to align utility incentives with the delivery of cost-effective energy efficiency and modify

The commission rejected a standard decoupling mechanism as requested by EISA of '07, but recently approved a lost revenue recovery mechanism for NorthWestern Energy in GE09-001.

BH 7/09, RA 8/10

BH 7/09

An incentive structure for MidAmerican was established in March of 2009. Incentives do not include a provision for pentalties for program deficiencies.

http://puc.sd.gov/commission/dockets/electric/2007/el07-015/introduction.pdf

MRD 04/2010 Confirmed with Brian Rounds at SD PUC, [email protected], (605) 773-3201



ACH 7/2010

ACH 7/2010

JR 6/2010

Citations

Dave Jacobson, [email protected]

Confirmed with Brian Rounds at SD PUC, [email protected], (605) 773-3201

WISCONSIN through 12/31/09; see citations at end of documentElectric Natural Gas


1.1

S, R S, R

1.2S, R S, R

N/A


Y+

Statute §1.12(4) requires that "in meeting energy demands, the policy of the state is that, to the extent cost-effective and technically feasible, options be considered based on the following priorities in the order listed: (a) Energy conservation and efficiency..." Further, §1.12(5)(a) states that in designing all new and replacement energy pojects, a state agency or local governmental unit shall rely to the greatest extent feasible on energy efficiency improvements and renewable energy resources, if [they] are cost-effective and technically feasible and do not have unacceptable environmental impacts." However, Act 141 passed in 2006, states that the PSC may not impose the energy efficiency requirements of the priority list on IOUs and wholesale suppliers if the the applicant has fulfilled all the obligations related to funding and implementing the statewide EE programs and Renewable Resource plans. Act 141 had many other new efficiency requirements. Docket 05-UI-115 was opened on 3/3/08 and is currently underway to consider adopting and achieving increased conservation and EE goals. Deliberations under this docket will be ongoing in 2010.

Y+


Y

Docket 05-ES-104 and Docket 05-GF 191 on the efficiency planning process ("quadrennial planning") are currently underway through the end of 2009. The results of the efficiency planning process will be incorporated into the biennial Strategic Energy Assessment (SEA) prepared by the PSC. Docket 05-ES-104 has been opened to address the incorporation of efficiency planning into the SEA. A final SEA report was issued in 2009. The SEA is considered by RAP to be akin to an IRP-like process.

Y


1.3 N N

R, S R, S

1.4

1.4.1 EE is a biddable commodity N N

1.5


2.1


S, R S, R


Act 141, passed in 2006, limits the Commission's implementation of the priority list described in 1.1 with respect to transmission. It states that the Commission may not impose any EE requirement on a IOU or wholesale supplier for approval to buy or build electric transmission facilities or equipment. The PSC issued a Final Strategic Energy Assessment plan in Docket No. 05-ES-104 in April 2009 that describes how several entites are undertaking transmission planning in Wisconsin; however, the Commission did not create an optimal transmission plan for Wisconsin in the draft Strategic Energy Assessment, nor address ways that efficiency planning can be incorporated into transmission planning.


State Implementation Plans (SIPs) include EE set-asides N

Y

Statute §1.12(4) requires that "in meeting energy demands, the policy of the state is that, to the extent cost-effective and technically feasible, options be considered based on the following priorities in the order listed: (a) Energy conservation and efficiency..." Further, §1.12(5)(a) states that in designing all new and replacement energy pojects, a state agency or local governmental unit shall rely to the greatest extent feasible on energy efficiency improvements and renewable energy resources, if [they] are cost-effective and technically feasible and do not have unacceptable environmental impacts."

Y

2.2

S, R S, R

2.3

Y

S, R S,R


Y-

Section 137.05(12) of the Wisconsin Administrative Code requires that statewide programs must "pass a portfolio level test of net cost-effectiveness, as determined by the Commission." The Commission currently uses the TRC. The quadrennial planning process opened in Docket No. 05-UI-115 (ongoing in 2009) will determine whether the TRC will continue to be used in the future.

Y-


Y

A potential study was completed in Fall 2005. WI was also included in a ACEEE study of the potential of aggressive EE programs to reduce consumer use of natural gas and peak electricity generated by natural gas. Act 141, passed in 2006, required an updated potential study. The Energy Center of Wisconsin was hired to conduct an energy efficiency and customer sited renewable energy potential study in 2008 as part of Docket 5-UI-115. The Final draft of the potential study was released on August 12, 2009.

2.3

Y

S S

2.4 N N

R R

2.5

N

S S


Y

Section 137.05(1) of the Wisconsin Administrative Code requires "that the statewide programs shall address the energy efficiency and renewable resource needs of all customers of participating energy utilities, municipal utilities, and retail electric cooperatives, except for the energy efficiency needs of those customers served by a utility-administered program under section 137.07 (utility administered programs for large commercial, industrial, institutional, or agricultural customers) or 137.09 (large energy customer self-directed energy efficiency programs). Low income assistance funds are referred to as public benefits funds in Act 141. The statewide energy efficiency and customer-owned renewable resource programs are funded through utiility rates. Act 141, passed in 2006, requires statewide programs to include components for residential, commercial, industrial, agricultural, and local government customers.


Under Act 141 utilities are required to spend 1.2% of their revenues on energy efficiency and renewable energy sources. Docket 5-GF-191 may consider appropriate funding levels to achieve EE goals.


Y-

Act 141, passed in 2006, requires the Commission to review and establish "goals, priorities, and measurable targets" every four years. The Commission has completed Phase One of the Quadrennial Planning Process, and Phase Two, which will set goals, was to begin in September 2009. Docket 5-GF-191 will establish EE goals; see 2.1. We Energies and WI Power and Light have voluntary EE programs funded with dollars that are in addition to those required by Act 141; in these programs, We Energies has savings goals, and WPL's savings goals are incorporated into the statewide EE programs. Northern States Power Company also has voluntary energy efficiency programs in addition to those required by Act 141. NSP does not have savings goals.

2.5

a,c a,c

N N




Goals will be established based on a variety of factors, including results of potential study, previous years' performance, and impact on rates. The Governor's Task Force on Global Warming released a report in July 2008 in which it recommended a set of GHG reduction targets: to 2005 levels by 2015; to 1990 levels by 2022; and to a 75% reduction from 2005 levels by 2050.


102 MW achieved by Focus on Energy during the 18 month program period ending December 31, 2008. 129 MW achieved by Focus on Energy in CY 2009.

ACEEE issued its 2009 State Energy Efficiency Scorecard (Scorecard) in October 2009. Among other things, the Scorecard tracks annual EE program savings by each state in 2007 (the most recent year for which relevant data are available for all jurisdictions). According to the Scorecard, WI's total incremental electric savings (MWh) was 467,725 in 2007 which was 0.66% of savings as a percent of electricity sales and ranked WA 13th when compared with other states. Focus on Energy achieved 640,000,000 kWh energy savings in calendar year 2009.

2.6

2.6.1.1 M&V is adequately funded Y M&V funding is 3-4% of the Focus on Energy budget. Y

Y Y

Y The evaluation process (see 2.6.1.4 below) will be done annually. Y

S S


Y-

PSC 137.04 states that "an independent third party, contracted by the commission, shall conduct all market assessment and evaluation activities necessary to measure the impact and cost−effectiveness of all statewide programs." Programs enacted by the utilities under PSC 137.07, beyond the requirements of the statewide programs, are required to be independently evaluated. PSC 137.07(3)(c)(3) states that "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. Focus on Energy programs are also reviewed by an independent contractor, and the evaluation reports may be viewed at the Focus on Energy webiste listed below. Act 141, passed in 2006, requires the development of a more consistent and robust M&V protocol statewide through it's Quadrennial Planning Process. The PSC has completed Phase One of the process, and started Phase Two in September 2009, which will finalize decisions under 05-UI-115. At present there are no concrete M & V rules in place, however, Focus on Energy conducts extensive evalutions, including impact, market and process evaluations.

Y-


Focus on Energy program administrator has a performance contract with incentives for kW, kWh and therm savings.


2.6

Y Y

S S

Y Y

a, b a, b

2.7S S


Act 141, passed in 2006, requires the Commission to contract with third party auditors to evaluate program performance.


A standard process is in place for reviewing M&V in which Commission staff and the program administrators have several opportunities to review the reports. There are also open discussions on the detailed evaluation plans before they are finalized. Focuse on Energy evaluation reports are available online.


A combination of deemed and actual savings is used, depending on whether the measure is prescriptive or custom.


Y

Prior to 2000, program administration was done by utilities. From 2000 through June 2007, third-party administrations of statewide programs were funded separately by utilities and overseen by the Department of Administration. Act 141, passed in 2006, requires utilities to collectively fund a third-party efficiency administrator, under the regulation of the Public Service Commission, effective 7/07. The energy efficiency, renewable energy, and R&D efforts are called the Focus on Energy initative. The Commission has day-to-day oversight of these programs. Utilities may also develop and offer voluntary efficiency programs, as approved by the Commission.

Y

2.7

a, b a, b

2.8


Y Y

S, R S, R

2.9


Wisconsin utilities contract with the Wisconsin Energy Conservation Corporation (WECC), which administers the residential, business and renewable energy programs. The Energy Center of Wisconsin administers the Environmental and Economic R&D program. Collectively, the energy efficiency, renewable energy and research components comprise the Focus on Energy initiative. FOE provides information, financial assistance, technical assistance and other services to residents, businesses, schools, institutions and local governments.

Act 141, passed in 2006, requires the PSC to conduct energy efficiency planning every four years. Docket 05-GF-191 on the efficiency planning process ("quadrennial planning") is currently underway. The results of the efficiency planning process will be incorporated into the biennial Strategic Energy Assessment (SEA) prepared by the PSC. A final Strategic Energy Assessment was issued in April 2009. The Strategic Energy Assessment is completed on a biennial basis.


Y/Y

State-developed code incorporates the 2006 IECC with state amendments, and applies to 1 and 2-family dwellings. Multi-family dwellings must meet 2000 IECC. Codes are updated every 3-5 years. The Governor's Task Force on Global Warming issued a report in July 2008 that recommended legislation to incorporate the latest IECC code into Wisconsin's resdiential / multi-family code within 18 months of promulgation.


Commercial buildings must meet 2006 IECC. Updates are every 3-5 years. The Governor's Task Force on Global Warming issued a report in July 2008 that recommended legislation to incorporate the latest IECC code into Wisconsin's commercial code within 18 months of promulgation.

2.10 N

2.11


3.1

Y Y


The Governor's Task Force on Global Warming issued a report in July 2008 that recommended legislation to create state appliance / equipment efficiency standards based on a model bill developed by ASAP and ACEEE.


Y

Act 141, passed in 2006, requires the six largest state agencies to biennially prepare a plan for energy cost reduction, and the plans must include all system and equipment upgrades that will pay for themselves in energy cost reductions. The Act also directs the Department of Administration to establish and annually review EE standards for equipment installed in state buildings; the standards must meet or exceed other model standards. The Department must ensure that the standards are adhered to in building purchases. Executive Order 145 passed in 2006 directs the Department of Administration to set EE goals for state facilities for fiscal years 2007, 2008, 2009, which will reduce overall energy use per square foot by 10% by 2008 and 20% by 2010 (compared to 2005 levels). New state facilities must be 30% more efficient than commercial code, and state agencies must examine the feasibility of energy performance contracting. The Governor's Task Force on Global Warming issued a report in July 2008 that recommended the state take a number of steps to reduce its GHG emissions through energy conservation, efficiency, purchasing policies, etc.

S, EO


3.1 Y

Wisconsin will have a collaborative in 2009.




3.2 Y

Wisconsin Focus on Energy, WECC, Alliant Energy

Y

WEEC (75% of pop)




What proportion is due to regulated utility program? (who is sponsor)

B77

Y (Yes) = EE program administrators representing 75% or more of state’s customers of regulated utilities have at least one state-approved EE program for new and one for existing homes that utilize professionals trained and certified by: RESNET, BPI, or organizations identified under LEED for Homes, NAHB Green Bldg. Prog, NATE or comparable HVAC organizations, or utilize professionals trained by utilities. Y/P (Yes / Partial) = EE program administrators representing between 50%-74% of state’s customers of regulated utilities have at least one state-approved EE program for new and one for existing homes that utilize professionals trained and certified by: RESNET, BPI, or organizations identified under LEED for Homes, NAHB Green Bldg. Prog, NATE or comparable HVAC organizations, or utilize professionals trained by utilities.

B79


4.1


S S

Y

1999 legislation had established the previous public benefits fee, which was based on 1998 utility DSM spending, and was subject to legislative raiding. Fees collected were initially used to fund utility-administered DSM, and from 2000-2002, a decreasing portion was spent on utility-administered DSM and an increasing amount was contributed to the system benefits charge. Act 141, passed in 2006, requires utilities to contribute 1.2% of utility revenues to fund statewide EE and renewable efforts, and the PSC must ensure that utilities recover the cost of EE programs in rates. In addition to the 1.2%, utilities may implement their own voluntary programs and recover costs in rates via a conservation escrow account. "Large energy customers" may fund EE projects and, with PSC approval, may deduct the cost from the amount the customer is required to pay the utility for cost recovery; the utility deducts the amount from the amount required to spend on programs. The new law changes previous legislation so that there is no cap on the amount a customer may be required to pay for utilities' cost recovery, but it freezes the amount a large energy customer may be required to pay. The new legislation authorizes the Commission, with legislative oversight, to raise the SBC, based on results of a potential study, or taking other considerations into account. By requiring utilities to contract directly with a third party EE implementor, the new legislation protects SBC funding from legislative raiding. Act 141 directed the Commission to submit a plan to the Legislature for allocation within customer classes of charges for utilities' program recovery costs. The Commission issued a Memorandum in Docket 05-UI-113 on December 31, 2008 which proposes that the projected cost of each program shall be directly assigned to each customer class that may participate in the program. Starting in 2010, each large energy customer (as determined by the Commission) would be required to pay all of the cost allocated to it through its customer class, under the proposed plan. The proposal further states that the Commission shall ensure that EE cost recovery is equitably divided among customer classes so that similarly situated ratepayers pay equivalent amounts.

Y

4.1

b, c b,c

4.1.3 Funding is for multi-year periods Y

4.2

4.3

4.4 N




Y

Statute 196.374(3)(b), which incorporates the provisions of Act 141, states that 1.2% is a minimum requirement for EE and renewable program spending. The Commission may seek to increase the 1.2% requirement; approval from the legislature's utilities committee is necessary for any increases. The Commission cannot require utilities to fund efficiency beyond legislatively approved amounts, but utilities may request approval for efficiency programs to be administered and funded separately from the statewide programs. Docket 05-UI-115, opened in 2008 and ongoing throughout the end of 2009, will consider whether to replace the 1.2% minimum requirement with savings target; see description under 2.1.

Y


ACEEE issued its 2009 State Energy Efficiency Scorecard (Scorecard) in October 2009. Among other things, the Scorecard tracks spending on EE by each state in 2007 (the most recent year for which relevant data are available for all juriusdictions). According to the Scorecard, WI total spending on EE in 2007 was slightly over $80.5 million, which was 1.2% of total utility revenues and ranked WI 13th in state spending.


5.1

R R

a, c a, c

5.2

R R

5.3


Y-

Utilities contract with a third party efficiency administrator. Docket 05-UI-114, initiated in 2008 and ongoing throughout 2009, will examine ratemaking approaches that promote EE, including removing disincentives and providing incentives. Decoupling was approved for WI Public Service in December 2008 (called a "Revenue Stabilization Mechanism"), which allows the utility to undertake a four-year pilot program. The pilot will occur in three communities, and will be regularly reviewed; true-ups will occur annually and over- or under-collection is capped at about $14 million ($12 million for electric operations, and $2 million for natural gas operations). WI Power and Light has discontinued it's decoupling proposal.

Y-



Y

WI Power and Light has an on-bill finance mechanism for customers, which allows the utility to recover in rates a return on investment equivalent to supply. A Final Order in Docket No. 6680-UR-114 on October 8, 2008 allows Wisconsin Power & Light (Alliant Energy) to earn the same rate-of-return on its investments in energy efficiency made through its "shared savings" program for commercial and industrial customers as it earns on other capital invstments. Additionally, utilities may propose incentives as part of their rate cases.

Y

5.3.1 Impact on EE is a consideration when designing retail rates Y

5.3.2 Declining block rates and fixed variable rate designs have been eliminated Y

5.4


N

R R5.4.2 Usage sensitive rates in place

5.4.3 AMI deployment planned Some utilities have AMI and TOU or RTP pilots in place.


7.1

A

Y-

We Energies received approval in October 2008 to launch a 2009 pilot that will equip 12,000 customers with equipment that will give them instant price signals. Wisconsin Electric Power has both CPP and PTR pilots for residential customers which will run through May 2012. WPSC's "Response Rewards" program is a CPP program that offers three pricing levels: an on-peak rate of 19.5 cents/kWh, an off-peak rate of 7.1 cents/kWh, and a critical-peak rate that varies. WPSC, as part of its decoupling stipulation, will offer new price sensitive rates in three community pilots. The first community pilot is underway and the second will begin early fall 2010. Docket 05-UI-116, currently in progress through the end of 2009, will "investigate and adopt innovative rate designs that provide more accurate price signals to customers to incent reductions" of greenhouse gas emissions. A May 2008 Order in that Docket states that it is likely the "inquiry will evolve into a more comprehensive exploration of rate design and load management issues."

Y-



Y

Wisconsin's DG interconnection standards allow for systems up to 15 MW in capacity to interconnect. The standards were first established with Wis. Stat. § 196.496, and are also governed by PSC rules - Chapter PSC 119. There are four categories of interconnection based on system size. There are standard application forms. Systems 20 kW and smaller are not required to pay any fees for application reviews, engineering reviews, or distribution system studies. Application fees for larger systems range from $250 - $1000. Insurance requirements for 20 kW to 1 MW range from $300k - $2 million; for systems over 1 MW insurance is negotiated.

PSC rules - Chapter PSC 119 can be accessed here: http://www.dsireusa.org/documents/Incentives/WI11Rb.pdf

7.2


R


7.4

A statewide standby rate policy is in placeWisconsin does not have a statewide policy on standby rates

U

U -

Y

The WI PSC established net metering standards with PSCW Order, Docket No. 05-EP-6. All regulated utilities had to file net metering tariffs with the PSC for customer generation up to 20 kW. The order applies to IOUs and municipal utilities. All DG systems including renewables and CHP systems are eligible. NEG is generally credited at the utility's retail rate for renewables and at the utility's avoided cost rate for non-renewables. NEG is carried forward to the customer's next bill. If NEG credit exceeds $25 then the utility must issue a check for that amount, payable to the customer.

Utility tariff information can be accessed from here, http://psc.wi.gov/apps/tariffs/content/elelist.aspx

N There is no statewide policy on exit fees in Wisconsin, however no utilities in the state charge exit fees.

N

Wisconsin Electric Power Co (We Energies) - General Primary Service Optional Standby - standby service is provided based on a contract with the uility for a specified amount of reserved demand. The demand reservation fee is moderate, however if standby power above the contract demand is used a very high penalty based on demand is assessed. Billing demand is based on the maximum 15 minute demand of the month less the reserved demand. One of the demand components has a 12 month ratchet, while the other two do not. Rate available at: http://www.we-energies.com/business_new/elec/elecrateswi.htm

Wisconsin Public Service Corp - Small C&I Service TOU - standby service is provided at the regular rate the site would be charged if they did not generate power plus a minimum demand fee for standby service. The demand component of the regular tariff is relatively high. Billing demand is based on the maximum demand of the month with a 12 month ratchet. Rate available at: http://www.wisconsinpublicservice.com/company/wi_tariffs.aspx

7.5

S

R

U

U Wisconsin Public Service Corp - IRP not available

CitationsACEEE, 2009 State Energy Efficiency Scorecard, October 2009, http://aceee.org/pubs/e097.pdf?CFID=571117&CFTOKEN=50109276.Building Codes Assistance Project / Online Code Environment & Advocacy Network, WI page: http://bcap-ocean.org/state-country/wisconsinDocket 05-ES-104 and Docket 05-UI-115 (includes quadrennial planning) documents accessed from: http://psc.wi.gov/index.htm.Energy Center of Wisconsin, Potential Study Final Report, August 2009: http://psc.wi.gov/apps/erf_share/view/viewdoc.aspx?docid=118226Energy Center of Wisconsin, Potential Study, 2005: http://energytaskforce.wi.gov/docview.asp?docid=155Executive Order #145, Energy Conservation for State Buildings, April 11, 2006: http://www.wisgov.state.wi.us/journal_media_detail.asp?locid=19&prid=1907Focus on Energy, Annual Report, 2007: http://www.focusonenergy.com/files/Document_Management_System/DOA/focusonenergy_annualreport07.pdf


Y

WI requires a Strategic Energy Assessment (SEA), which the PSC must prepare biennially to mainly assesses the state's current electricity supply and is not a true Integrated Resource Planning (IRP) process, and for utilities to submit biennial energy cost reduction plans. The state enacted Act 141 in 2006, which will require the state to conduct an energy efficiency planning process every 4 years. Docket 05-UI-115 has been opened to implement Act 141 requirements. In October 2009, several policy decisions regarding Phase 1 of the quadrennial planning process were released. Also, Docket 5-GF-191 is open to address Phase two of the quadrennial planning process. Phase Two consists of two stages: the first will address energy efficiency and renewable energy evaluation issues (metrics to use, cost-effectiveness assumptions, etc); the second phase will address goals and budgets for the EE/RE programs. Dockets 05-UI-115 and 5-GF-191 are still open.

Act 141 can be accessed from here, http://www.legis.state.wi.us/2005/data/acts/05Act141.pdfDocket 05-UI-115 and 5-GF-191 can be accessed here by entering in the case number, http://psc.wi.gov/Wisconsin Electric Power CO (We Energies) provides a short summary of their comprehensive plan that can be accessed at the site below. CHP is not mentioned.

http://wecnews.wisconsinenergy.com/news/newsrel/pages/newsrelease_107

Governor's Task Force on Global Warming, Final Report, July 2008: http://dnr.wi.gov/environmentprotect/gtfgw/documents/Final_Report.pdfMartin Kushler, Dan York, and Patti Wittehttp, ACEEE, Potential Study, January 2005: http://aceee.org/pubs/u051full.pdf?CFID=4892327&CFTOKEN=35620476WI Admin. Code §137.01 et seq, 2007: http://www.legis.state.wi.us/rsb/code/psc/psc137.pdf

http://wecnews.wisconsinenergy.com/news/newsrel/pages/newsrelease_107

http://dnr.wi.gov/environmentprotect/gtfgw/documents/Final_Report.pdf


WI PSC, AMI Docket, Docket No. 05-UI-116: http://psc.wi.gov/apps/cms_docket/content/DcktDetl.asp?list=docsWI PSC, Docket 05-UI-113, Memorandum, December 30, 2008: http://psc.wi.gov/apps/cms_docket/content/DcktDetl.asp?list=docsWI PSC, Docket 05-UI-115 documents: http://psc.wi.gov/index.htmWI PSC, Final Order, Docket No. 6680-UR-114, October 8, 2008: http://psc.wi.gov/apps/cms_docket/content/DcktDetl.asp?list=docsWI PSC, Ratemaking Docket, Docket 05-UI-114: http://psc.wi.gov/apps/cms_docket/content/DcktDetl.asp?list=docsWI PSC, WPL Decoupling Order, Docket No. 6680-UR-116, December 30, 2008: http://psc.wi.gov/apps/cms_docket/content/DcktDetl.asp?list=docsWI PSC, WPSC Decoupling Order, Docket No. 6690-UR-119, December 30, 2008: http://psc.wi.gov/apps/cms_docket/content/DcktDetl.asp?list=docsWis. Stat. Ann., Act 141, 2006: http://www.legis.state.wi.us/2005/data/acts/05Act141.pdfWis. Stat. Ann., Statute 1.12, 2005 : http://www.legis.state.wi.us/statutes/Stat0001.pdfWis. Stat. Ann., Statute 196 et seq, 2007: http://www.legis.state.wi.us/statutes/Stat0196.pdf

http://www.legis.state.wi.us/statutes/Stat0196.pdf

WISCONSIN through 12/31/09; see citations at end of documentNatural Gas Updated by / Date Update notes for 2010 activity


BH 5/09, CK 6/10

BH 5/09, CK 6/10

Statute §1.12(4) requires that "in meeting energy demands, the policy of the state is that, to the extent cost-effective and technically feasible, options be considered based on the following priorities in the order listed: (a) Energy conservation and efficiency..." Further, §1.12(5)(a) states that in designing all new and replacement energy pojects, a state agency or local governmental unit shall rely to the greatest extent feasible on energy efficiency improvements and renewable energy resources, if [they] are cost-effective and technically feasible and do not have unacceptable environmental impacts." However, Act 141 passed in 2006, states that the PSC may not impose the energy efficiency requirements of the priority list on IOUs and wholesale suppliers if the the applicant has fulfilled all the obligations related to funding and implementing the statewide EE programs and Renewable Resource plans. Act 141 had many other new efficiency requirements. Docket 05-UI-115 was opened on 3/3/08 and is currently underway to consider adopting and achieving increased conservation and EE goals. Deliberations under this docket will be ongoing in 2010.

AB649/SB450 the "clean energy jobs act" (substitute amendment) failed to even be brought up for a vote during the 2010 legislative session. Among other provisions it would have established an enhanced statewide RPS (and allowed EE to be used toward RPS compliance), implemented appliance standards for some consumer electronics, established new building codes. http://www.legis.state.wi.us/2009/data/SB450hst.html and http://www.cleanwisconsin.org/campaigns/documents/PSC-CEJA_Analysis.pdf

Docket 05-GF-191 on the efficiency planning process ("quadrennial planning") is currently underway through the end of 2009.

BH 5/09, CK 6/10


BH 5/09, CK 6/10

Act 141, passed in 2006, limits the Commission's implementation of the priority list described in 1.1 with respect to transmission. It states that the Commission may not impose any EE requirement on a IOU or wholesale supplier for approval to buy or build electric transmission facilities or equipment.

Statute §1.12(4) requires that "in meeting energy demands, the policy of the state is that, to the extent cost-effective and technically feasible, options be considered based on the following priorities in the order listed: (a) Energy conservation and efficiency..." Further, §1.12(5)(a) states that in designing all new and replacement energy pojects, a state agency or local governmental unit shall rely to the greatest extent feasible on energy efficiency improvements and renewable energy resources, if [they] are cost-effective and technically feasible and do not have unacceptable environmental impacts."

BH 5/09, CK 6/10

BH 5/09, CK 6/10

Section 137.05(12) of the Wisconsin Administrative Code requires that statewide programs must "pass a portfolio level test of net cost-effectiveness, as determined by the Commission." The Commission currently uses the TRC. The quadrennial planning process opened in Docket No. 05-UI-115 (ongoing in 2009) will determine whether the TRC will continue to be used in the future.

A potential study was completed in Fall 2005. WI was also included in a ACEEE study of the potential of aggressive EE programs to reduce consumer use of natural gas and peak electricity generated by natural gas. Act 141, passed in 2006, required an updated potential study. The Energy Center of Wisconsin was hired to conduct an energy efficiency and customer sited renewable energy potential study in 2008 as part of Docket 5-UI-115. The Final draft of the potential study was released on August 12, 2009.

BH 5/09, CK 6/10

BH 5/09, CK 6/10

BH 5/09, CK 6/10

Section 137.05(1) of the Wisconsin Administrative Code requires "that the statewide programs shall address the energy efficiency and renewable resource needs of all customers of participating energy utilities, municipal utilities, and retail electric cooperatives, except for the energy efficiency needs of those customers served by a utility-administered program under section 137.07 (utility administered programs for large commercial, industrial, institutional, or agricultural customers) or 137.09 (large energy customer self-directed energy efficiency programs). Low income assistance funds are referred to as public benefits funds in Act 141. The statewide energy efficiency and customer-owned renewable resource programs are funded through utiility rates. Act 141, passed in 2006, requires statewide programs to include components for residential, commercial, industrial, agricultural, and local government customers.

Under Act 141 utilities are required to spend 1.2% of their revenues on energy efficiency and renewable energy sources. Docket 5-GF-191 may consider appropriate funding levels to achieve EE goals.

Act 141, passed in 2006, requires the Commission to review and establish "goals, priorities, and measurable targets" every four years. The Commission has completed Phase One of the Quadrennial Planning Process, and Phase Two, which will set goals, was to begin in September 2009. Docket 5-GF-191 will establish EE goals; see 2.1.

CK 6/10

BH 5/09, CK 6/10

Goals will be established based on a variety of factors, including results of potential study, previous years' performance, and impact on rates. The Governor's Task Force on Global Warming released a report in July 2008 in which it recommended a set of GHG reduction targets: to 2005 levels by 2015; to 1990 levels by 2022; and to a 75% reduction from 2005 levels by 2050.

14.8 million therms of savings were reported for FY2007 in Focus on Energy's 2007 Annual Report. This figure includes savings from business and residential programs, but not renewable energy programs. 24.4 million therms of savings were reported for the 18-month program period ending December 31, 2008 in FOE, not including savings from voluntary utility programs. The 2007 Annual report is the most recent.

BH 5/09, CK 6/10

M&V funding is 3-4% of the Focus on Energy budget. CK 6/10

CK 6/10

The evaluation process (see 2.6.1.4 below) will be done annually. CK 6/10

PSC 137.04 states that "an independent third party, contracted by the commission, shall conduct all market assessment and evaluation activities necessary to measure the impact and cost−effectiveness of all statewide programs." Programs enacted by the utilities under PSC 137.07, beyond the requirements of the statewide programs, are required to be independently evaluated. PSC 137.07(3)(c)(3) states that "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. Focus on Energy programs are also reviewed by an independent contractor, and the evaluation reports may be viewed at the Focus on Energy webiste listed below. Act 141, passed in 2006, requires the development of a more consistent and robust M&V protocol statewide through it's Quadrennial Planning Process. The PSC has completed Phase One of the process, and started Phase Two in September 2009, which will finalize decisions under 05-UI-115. At present there are no concrete M & V rules in place, however, Focus on Energy conducts extensive evalutions, including impact, market and process evaluations.

Focus on Energy program administrator has a performance contract with incentives for kW, kWh and therm savings.

CK 6/10

CK 6/10

CK 6/10

CK 6/10

Act 141, passed in 2006, requires the Commission to contract with third party auditors to evaluate program performance.

A standard process is in place for reviewing M&V in which Commission staff and the program administrators have several opportunities to review the reports. There are also open discussions on the detailed evaluation plans before they are finalized. Focuse on Energy evaluation reports are available online.

A combination of deemed and actual savings is used, depending on whether the measure is prescriptive or custom.

Act 141, passed in 2006, requires utilities to collectively fund a third-party efficiency administrator, under the regulation of the Public Service Commission, effective 7/07. Utilities may also develop and offer voluntary efficiency programs, as approved by the Commission.

CK 6/10

BH 5/09, CK 6/10

BH 5/09, CK 6/10

BH 5/09, CK 6/10

Wisconsin utilities contract with the Wisconsin Energy Conservation Corporation (WECC), which administers the residential, business and renewable energy programs. The Energy Center of Wisconsin administers the Environmental and Economic R&D program. Collectively, the energy efficiency, renewable energy and research components comprise the Focus on Energy initiative. FOE provides information, financial assistance, technical assistance and other services to residents, businesses, schools, institutions and local governments.

Act 141, passed in 2006, requires the PSC to conduct energy efficiency planning every four years. Docket 05-GF-191 on the efficiency planning process ("quadrennial planning") is currently underway.

BH 5/09, CK 6/10

BH 5/09, CK 6/10

Recommendation 3: Miscellaneous PoliciesPersonal communication with Carol Stemrich, WI PSC, 5/10/10

EPA 6/10


Wisconsin will have a collaborative in 2009

BH 5/09, CK 6/10

1999 legislation had established the previous public benefits fee, which was based on 1998 utility DSM spending, and was subject to legislative raiding. Fees collected were initially used to fund utility-administered DSM, and from 2000-2002, a decreasing portion was spent on utility-administered DSM and an increasing amount was contributed to the system benefits charge. Act 141, passed in 2006, requires utilities to contribute 1.2% of utility revenues to fund statewide EE and renewable efforts, and the PSC must ensure that utilities recover the cost of EE programs in rates. In addition to the 1.2%, utilities may implement their own voluntary programs and recover costs in rates via a conservation escrow account. "Large energy customers" may fund EE projects and, with PSC approval, may deduct the cost from the amount the customer is required to pay the utility for cost recovery; the utility deducts the amount from the amount required to spend on programs. The new law changes previous legislation so that there is no cap on the amount a customer may be required to pay for utilities' cost recovery, but it freezes the amount a large energy customer may be required to pay. The new legislation authorizes the Commission, with legislative oversight, to raise the SBC, based on results of a potential study, or taking other considerations into account. By requiring utilities to contract directly with a third party EE implementor, the new legislation protects SBC funding from legislative raiding. Act 141 directed the Commission to submit a plan to the Legislature for allocation within customer classes of charges for utilities' program recovery costs. The 12/30/08 Commission plan proposes that the projected cost of each program shall be directly assigned to each customer class that may participate in the program. Starting in 2010, each large energy customer (as determined by the Commission) would be required to pay all of the cost allocated to it through its customer class, under the proposed plan. The proposal further states that the Commission shall ensure that EE cost recovery is equitably divided among customer classes so that similarly situated ratepayers pay equivalent amounts.

CK 6/10

CK 6/10


Statute 196.374(3)(b), which incorporates the provisions of Act 141, states that 1.2% is a minimum requirement for EE and renewable program spending. The Commission may seek to increase the 1.2% requirement; approval from the legislature's utilities committee is necessary for any increases. The Commission cannot require utilities to fund efficiency beyond legislatively approved amounts, but utilities may request approval for efficiency programs to be administered and funded separately from the statewide programs. Docket 05-UI-115, opened in 2008 and ongoing throughout the end of 2009, will consider whether to replace the 1.2% minimum requirement with savings target; see description under 2.1.

BH 5/09, CK 6/10

BH 5/09

BH 5/09, CK 6/10

Utilities contract with a third party efficiency administrator. Docket 05-UI-114, initiated in 2008 and ongoing throughout 2009, will examine ratemaking approaches that promote EE, including removing disincentives and providing incentives. Decoupling was approved for WI Public Service in December 2008 (called a "Revenue Stabilization Mechanism"), which allows the utility to undertake a four-year pilot program. The pilot will occur in three communities, and will be regularly reviewed; true-ups will occur annually and over- or under-collection is capped at about $14 million ($12 million for electric operations, and $2 million for natural gas operations). WI Power and Light has discontinued it's decoupling proposal.

WI Power and Light has an on-bill finance mechanism for customers, which allows the utility to recover in rates a return on investment equivalent to supply. A Final Order in Docket No. 6680-UR-114 on October 8, 2008 allows Wisconsin Power & Light (Alliant Energy) to earn the same rate-of-return on its investments in energy efficiency made through its "shared savings" program for commercial and industrial customers as it earns on other capital invstments. Additionally, utilities may propose incentives as part of their rate cases.

BH 5/09, CK 6/10


MD 4/10 Confirmed with Deborah Erwin, PSC (608)266-3905 [email protected]

Docket 05-UI-116, currently in progress through the end of 2009, will "investigate and adopt innovative rate designs that provide more accurate price signals to customers to incent reductions" of greenhouse gas emissions. A May 2008 Order in that Docket states that it is likely the "inquiry will evolve into a more comprehensive exploration of rate design and load management issues."



ACH 5/2010

ACH 5/2010

JR 5/2010

Citations

Executive Order #145, Energy Conservation for State Buildings, April 11, 2006: http://www.wisgov.state.wi.us/journal_media_detail.asp?locid=19&prid=1907Focus on Energy, Annual Report, 2007: http://www.focusonenergy.com/files/Document_Management_System/DOA/focusonenergy_annualreport07.pdf

Carol Stemrich from the WI PSC, (608) 266-8174, [email protected]

Martin Kushler, Dan York, and Patti Wittehttp, ACEEE, Potential Study, January 2005: http://aceee.org/pubs/u051full.pdf?CFID=4892327&CFTOKEN=35620476


Confirmed with Deborah Erwin, PSC (608)266-3905 [email protected]