Southeast Policy Grid Through 2008 - The Regulatory Assistance

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Southeast Policy Grid Through 2008 - The Regulatory Assistance Powered By Docstoc
					Guide to the Grid

Navigation                                                                                                                Policy Change Indicator:
The grid is designed to give users a broad overview of current utility energy efficiency policies in U.S. states.         Each cell will be color-coded to indicate policy areas where change has occurred recently or may occur soon. Colors
Begin your navigation with the "Grid" worksheet by clicking on the "Grid" tab at the bottom of the screen.                range from blue (no change is likely) to violet (change is imminent).
This worksheet contains a summary overview for all states of all the information in the document.                                    Policy stable, complete, and functioning (for 24 months or more)
Within the "Grid" worksheet, policies are organized into 5 broad recommendations that follow the National                            Policy stable, but some elements missing or implementation incomplete
Action Plan and 2 other policy areas of interest. Within each recommendation are many policy options.                                Policy is new (put into place during previous 24 months)
Click on the black +/- signs to the left of the screen to expand and collapse the policy lists.                                      Policy may change (informal discussion of policy changes, or proposed statute)
Individual worksheets for each state describe individual states' policies in greater detail. Worksheets are                          Action likely soon (docket has been opened or a Commission has expressed intent)
labeled by state abbreviations at the bottom of the screen.                                                                          New policy required by statute or order; details in development
Within the "Grid" worksheet, some policies are hyperlinked to the corresponding state page policy. For                    Cross-hatching indicates that two or more of the above apply. For example:
these, you may click on the Y/N designation to quickly navigate to the corresponding policy on that state's
page. From the state page, you may click on the Y/N to go back to the "Grid" page.                                                   Blue/Yellow: Indicates that a major change has recently been made to a pre-existing policy
Acronyms used are listed at the bottom of each worksheet.                                                                            Yellow/Purple: Indicates that a new policy exists, AND an additional policy is in development
                                                                                                                              Y      Blue/Purple: Indicates that a new policy is in development, in addition to preexisting policy

Explanation of Grid Symbology

Policy Origin:

A letter next to each policy explanation
(on the state pages) indicates the
policy's origin as follows:
          S Statutory policy
          R Regulatory policy resulting from a decision, order, or MOU
          A Policy codified in state rules or administrative code
          F Federal Policy
        EO Executive Order
          U Utility-specific policy


 Criteria for specific policy options: A designation of "Y" or "N" is generally self-explanatory.
                                           A designation of "C" indicates the state's policy status is complete, regarding certain federal metrics, as described below.
                                           A designation of "P" indicates the state's policy status is partial, regarding certain federal metrics, as described below.
                                           Order = regulatory or Executive orders

             Some options are designated with a qualifier (e.g. Y+, Y, or Y-) based on the following policy-specific criteria:
             Recommendation 1

                 1.1   Y+ indicates that EE has greater priority than supply resources, or that all cost-effective energy efficiency should be procured.
                       Y indicates that efficiency is considered an equivalent resource in statute or order.
                       Y+ indicates that a robust resource planning process exists and is designed to procure maximum cost-effective EE.
               1.2.1   Y indicates that a resource planning process exists and is designed to procure significant EE.
                       Y- indicates that a resource planning process exists that results in EE savings goals and targets but it is not designed to procure
                       significant EE.
                       Y indicates that EE must be procured as a resource for default or standard offer service (restructured states only)
               1.2.2   Y- indicates that EE is presently procured as a resource, but is not required to be.
                   N+ indicates that EE may be procured as a resource, but is not required to be.
             Recommendation 2
                       Y+ indicates that statute requires the procurement of all cost-effective EE.
                 2.1   Y indicates that statute requires EE as a systematic and required part of electric resource procurement.
                       Y- indicates that statute is supportive of EE, but falls short of requiring it or is no longer used.
                       Y+ indicates that TRC and/or SC or similar cost/benefit test is a primary EE program cost-effectiveness test.
                       Y indicates that TRC and/or SC or similar test are required, but not considered primary.
                 2.2   Y- indicates that TRC and/or SC or similar test are used, but not required.
                       N / P indicates that a docket is open to consider TRC and/or SC
                       N / P may also indicate that TRC and/or SC are allowed but are not used (however, RAP does not have to pro-actively determine this)
                       Y indicates that established EE programs reach all customer classes, including low-income customers
               2.3.2   Y may also indicate that established EE programs reach all customer classes, but allows customers to opt out who participate in self-
                       directed EE programs
                       Y+ indicates that goals are designed to capture all cost-effective EE.
               2.5.1   Y indicates that goals are designed to be "stretch" goals, or to increase administrators' ability to procure EE.
                       Y- indicates that goals exist as a by-product of budget constraints.
                       Y+ indicates that EE is required as part of an RPS or EEPS or other resource standard, and any type of efficiency may be used.
               2.5.3   Y indicates that EE may be used to meet resource standard requirements, but is not required, or that only certain types of EE may
                       qualify for the resource standard.
               2.6.1   Y indicates a robust EM&V process is in place including impact, market and process evaluations
               2.7.1   Y indicates EE program administration has been clearly established by statute, order or contract
                       Y+ indicates the same resource planning process referred to in 1.2.1 is regularly updated and that it quantifies and integrates energy
                 2.8   savings from building codes.
                       Y indicates that the same resource planning process referred to in 1.2.1 is regularly updated

               2.10    Y+ indicates that Commission or other agency has authority to update standards as needed without specific legislative authorization.
                   Y indicates that standards have been updated recently.
             Recommendation 3

                   Y indicates that all state-approved EE program portfolios include any type of public education programs.
               3.1.1
                   Y- indicates that state-approved EE program portfolios serving at least one-half of the state's customers of regulated utilities include
                   any type of public education programs.
                   Y indicates stakeholders were involved in an advisory or collaborative role with program administrators, while developing EE program
               3.1.2
                   plans or determining best use of efficiency or sustainable energy funds.
             Recommendation 4
                       Y indicates that a cost recovery process exists for EE programs offered to all ratepayer classes.
               4.1.1   Y- indicates that cost recovery exists for only some programs or some classes of ratepayers, is done on a case-by-case basis, or is
                       impacted by legislative diversion of SBC funding.
             Recommendation 5
                    Y+ indicates that disincentives are fully addressed for all utilities and disincentives are removed via a regularly updated decoupling
                    mechanism designed to promote EE.
              5.1.1 Y indicates that disincentives are addressed for all utilities via a mechanism other than decoupling (e.g. third party administration, lost
                    revenue recovery, or bonus rate of return).
                    Y- indicates that disincentives are addressed, but not for all utilities or not for all rate classes, is rarely used; or the decoupling
                    mechanism is not designed to promote conservation.
                    Y+ indicates that a significant incentive mechanism is in place, encouraging implementors to meet "stretch" goals, with clear rules
                    regarding the incentive process.

               5.2.1   Y indicates that an incentive mechanism is in place, but doesn't encourage "stretch" goals or rules are unclear.
                       Y- indicates that incentives may be available, but a regular, predictable incentive system does not exist.
                       N / C indicates that a state has considered incentive mechanisms within the last three years, and has ruled them out; this status was
                       not proactively determined for every state
                 5.3   Y- indicates a one-time provision; not a regular part of ratesetting activities.
              5.3.2    Y- indicates that most, but not all, declining block rate structures have been eliminated.
              5.4.1-
              5.4.2    Y- indicates that the rate structure or mechanism in question is in place for some, but not all, customers.
                       Y+ / C indicates one or more utilities have implemented AMI
               5.4.3   Y / C indicates one or more utilities have contracted for AMI
                       Y- / P indicates that AMI is planned or utilities are running pilots
               5.4.4 Y indicates specific customer mechanisms are listed on the state page.
             7. Distributed Generation Policies
             A statewide interconnection policy is in place
                      Y+ indicates that there is a well-defined interconnection policy in place that has at least one or more beneficial attributes such as
                      standard forms, a reasonable timeline for application approval, low or no additional insurance requirements, allows for fairly large DG
                      units to interconnect and may have additional positive attributes.
                 7.1   Y indicates that there is an interconnection policy, but overall the policy cannot be considered either beneficial or detrimental to DG.
                       Y- indicates that the policy may be available, but has unfavorable requirements such as only allowing very small units (up to 10 kW for
                       residential and 100 kW for commercial) to interconnect, having high liability insurance requirements, requiring owners/operators to pay
                       large interconnect study fees, and may have other burdensome requirements like only allowing systems that qualify under net
                       metering rules to interconnect.
             A statewide net metering policy is in place
                      Y+ indicates that there is a favorable net metering policy in place, meaning that the limits on overall enrollment are fairly high, a wide
                      variety of DG systems and sizes are allowed to net meter, the utility compensates the DG owner for net excess generation, and
                      possibly other beneficial attributes.
                      Y indicates that there is a net metering policy, but the policy cannot be considered either beneficial or detrimental to DG, there may be
                7.2
                      some portions of the policy that are helpful and some that are not.
                      Y- indicates that the policy may be available, but it has unfavorable requirements, such as overall enrollment limits are very low, only
                      non-emitting renewables that are a small size may be allowed to net meter, customers are not compensated for their net excess
                      generation, and possibly other negative requirements.
             A statewide exit fee policy is in place
                       Y+ indicates that, under the statewide policy, DG owners/operators are not charged an exit fee.
                 7.3   Y indicates that, under the statewide policy, utilities are not allowed to charge DG owners an explicit exit fee. However, under certain
                       circumstances, utilities may still be able to recover costs.
                      Y- indicates that there is a statewide policy in place that allows utilities to charge DG owners an exit fee.
             A statewide standby rate policy is in place
                       U+ Utility policy that is beneficial/positive for DG projects - small or no reservation fee and no demand ratchets.
                7.4     U Utility policy that is neither completely positive or negative towards DG - may have several opposing attributes
                       U - Utility policy that is detrimental/negative for DG projects - high demand reservation fees, high demand ratchets.

             Utility DG Policies, state-level pages only
                U+     Utility policy that is beneficial/positive for DG projects.
                  U    Utility policy that is neither completely positive or negative towards DG - may have several opposing attributes
                 U-    Utility policy that is detrimental/negative for DG projects.
                                                              ALABAMA
                                                                 Electric
Recommendation 1: Recognize energy efficiency as a high priority energy resource.
         EE is established as a high priority resource,
         equivalent or superior to supply resources




                                                          N




  1.1




                                                          S




         1.2.1 EE is integrated into an active IRP,
         portfolio management, or other planning          N
         process
  1.2    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               N
  1.3   transmission system plan

        1.4.1 EE is a biddable commodity

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


        State Implementation Plans (SIPs) include
                                                        N
  1.5   EE set-asides

Recommendation 2: Make a strong, long-term commitment to implement cost-effective energy efficiency
        Efficiency commitment is in statute             N
  2.1
        The TRC or Societal Cost Test is used to
  2.2   evaluate EE programs


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


        2.3.2 Established EE programs reach all
        customer classes

  2.3

                                                        N




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

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




  2.5
      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
2.5   2.5.3 Energy Efficiency can be used to fulfill
      requirements of an RPS or similar standard


      2.5.4 Expected Capacity Savings (Annual
      MW in 2006)

      2.5.5 Energy Savings (Annual MWh in
      2006)

      2.6.1 A robust M&V process has been
      established
                                                        N




      2.6.1.1   M&V is adequately funded


      2.6.1.2 Energy savings are used to
2.6   measure performance

      2.6.1.3 M&V is done according to a
      defined schedule

      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

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

      2.7.1 EE delivery structure has been
                                                        N
      established

2.7   2.7.2 Delivery is via: (a) utility
      administration; (b) third-party administration;
      or (c) government agency

      Resource plans are regularly updated              N
2.8
2.8
       2.9.1 Building Energy Codes for residential
       buildings are in place and regularly updated



                                                       N/N




2.9    2.9.2 Building Energy Codes for
       commercial buildings are in place and
       regularly updated


                                                       N/N




       Appliance and Equipment Efficiency
       Standards are in place and regularly            N
2.10   updated

       Energy efficiency is a high priority in state
       buildings and state funded buildings as
       evidenced in capital planning and enabling
       performance contracts
                                                       Y




2.11
 2.11




Recommendation 3: Miscellaneous Policies
        3.1.1 Public education programs on EE are
        in place. (See Guide Tab for Y/N criteria.)




                                                       N




                                                       S




        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.)
  3.1                                                  N
  3.1




         Do not delete this row.




                                                            R,S




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

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

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

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


Recommendation 4: Promote sufficient, timely, and stable program funding to deliver energy efficiency w
         4.1.1 Cost recovery process exists                 N


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

         4.1.3 Funding is for multi-year periods

         A base energy efficiency spending level
  4.2    exists, with opportunity to justify higher level
         % of net (retail) utility revenue presently
         used for energy efficiency [no unit = %; m/k
  4.3    = mils/kWh]
         Funds from carbon trading program support
         EE
                                                       N




  4.4




Recommendation 5: Modify policies to align utility incentives with the delivery of cost-effective energy effi
         5.1.1 Utility throughput incentive is
                                                       N
         addressed and disincentives are removed

  5.1    5.1.2 Method used is: (a) decoupling; (b)
         lost revenue recovery; or (c) non-utility
         implementaion of EE

         5.2.1 Utility/shareholder EE incentives are
                                                       N
         provided
  5.2    5.2.2 Incentives exceed amount of lost
         revenues

         5.3.1 Impact on EE is a consideration when
         designing retail rates

   5.3   5.3.2 Declining block rates and fixed
         variable rate designs have been eliminated


         5.4.1 Time sensitive rates in place
                                                       Y




         5.4.2 Usage sensitive rates in place

         5.4.3 AMI deployment planned
  5.4
                                                       Y/C
  5.4




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

State Fiscal Policy
         Sales Tax reduction or exemption for energy
  6.1    efficient products

         Investment Tax Credit for energy efficient
  6.2    investments

         State supported low cost financing for
         energy efficient investments: buildings (x),
  6.3    equipment (y)


Distributed Generation Policies
         A statewide interconnection policy is in place

                                                          N




                                                          U-




   7.1
7.1




                                                    U-




      A statewide net metering policy is in place
                                                    N
7.2
                                                    U-
      A statewide exit fee policy is in place
                                                    N
7.3


      A statewide standby rate policy is in place
                                                    N




7.4
                                                    U-
      As part of resource planning process, CHP
      is reviewed and incorporated where effective


                                                      N


7.5

                                                     https://www.pscpublicaccess.alabama.gov/pscpublicacc
                           ALABAMA
                              Electric                                                    Natural Gas
fficiency as a high priority energy resource.
           Passages in Alabama statute express a qualified              Passages in Alabama statute express a qualified
           importance for EE. For instance, section 41-6A-2             importance for EE. For instance, section 41-6A-2 of
           of the Code of Alabama states the following                  the Code of Alabama states the following legislative
           legislative intent: "The Legislature finds that the          intent: "The Legislature finds that the development,
           development, manangement and efficient use of                manangement and efficient use of energy resources
           energy resources and the conservation of energy              and the conservation of energy is of prime
           is of prime inportance in an era of rising costs,            inportance in an era of rising costs, foreign
           foreign dependence and uncertain supplies. At                dependence and uncertain supplies. At the same
           the same time it is also important to protect the            time it is also important to protect the economic,
           economic, social and environmental values of the         N   social and environmental values of the citizens of the
           citizens of the state." Similarly, section 41-23-80          state." Similarly, section 41-23-80 provides that "The
           provides that "The Legislature finds that the                Legislature finds that the development,
           development, management, efficient                           management, efficient consumption, and
           consumption, and conservation of residential                 conservation of residential energy resources are of
           energy resources are of prime importance                     prime importance throughout this state and this
           throughout this state and this nation. It is also            nation. It is also important to ensure the protection
           important to ensure the protection of the economic           of the economic and environmental values of
           and environmental values of Alabama's citizens."             Alabama's citizens."

           Section 41-6A-2.                                             Section 41-6A-2.
           http://alisondb.legislature.state.al.us/acas/FullHitfo       http://alisondb.legislature.state.al.us/acas/FullHitforC
           rCOA.htw?CiWebHitsFile=/acas/codeofalabama/1                 OA.htw?CiWebHitsFile=/acas/codeofalabama/1975/
           975/41%2D6a%2D2.htm&CiRestriction=energy%                    41%2D6a%2D2.htm&CiRestriction=energy%20effici
           20efficiency&CiQueryFile=/acas/TextHit.idq&CiBe              ency&CiQueryFile=/acas/TextHit.idq&CiBeginHilite=
           ginHilite=%3CFONT%20COLOR=%22%23FF000                        %3CFONT%20COLOR=%22%23FF0000%22%3E
           0%22%3E%3CB%3E%3CEM%3E&CiEndHilite=                          %3CB%3E%3CEM%3E&CiEndHilite=%3C/EM%3E
           %3C/EM%3E%3C/B%3E%3C/FONT%3E&CiUser                          %3C/B%3E%3C/FONT%3E&CiUserParam3=/acas/
           Param3=/acas/COATextSearch.asp&CiHiliteType                  COATextSearch.asp&CiHiliteType=Full
           =Full                              Section 41-23-80.         Section 41-23-80.
                                                                    S
           http://alisondb.legislature.state.al.us/acas/FullHitfo       http://alisondb.legislature.state.al.us/acas/FullHitforC
           rCOA.htw?CiWebHitsFile=/acas/codeofalabama/1                 OA.htw?CiWebHitsFile=/acas/codeofalabama/1975/
           975/41%2D23%2D80.htm&CiRestriction=energy                    41%2D23%2D80.htm&CiRestriction=energy%20effic
           %20efficiency&CiQueryFile=/acas/TextHit.idq&CiB              iency&CiQueryFile=/acas/TextHit.idq&CiBeginHilite=
           eginHilite=%3CFONT%20COLOR=%22%23FF00                        %3CFONT%20COLOR=%22%23FF0000%22%3E
           00%22%3E%3CB%3E%3CEM%3E&CiEndHilite=                         %3CB%3E%3CEM%3E&CiEndHilite=%3C/EM%3E
           %3C/EM%3E%3C/B%3E%3C/FONT%3E&CiUser                          %3C/B%3E%3C/FONT%3E&CiUserParam3=/acas/
           Param3=/acas/COATextSearch.asp&CiHiliteType                  COATextSearch.asp&CiHiliteType=Full
           =Full


                                                                    N
                                                                    N




-term commitment to implement cost-effective energy efficiency as a resource
           See 1.1 above.                                           N   See 1.1 above.




           Some utilities have made programs available to
           customers. No efficiency programs are required
           by the regulator. Alabama utilities offer a variety of
           loan and rebate programs. DSIRE has compiled a
           summary of the utility loan and rebate programs
           offered in Alabama. The Alabama Department of
           Ecomonic and Community Affairs, Energy
           Division, (DOE funded State Energy Program),
           also offers several EE programs. (See link
           below.)
           DSIRE summary of utility loan and rebate
           programs.
           http://www.dsireusa.org/incentives/index.cfm?re=1
           &ee=1&spv=0&st=0&srp=1&state=AL Alabama
           Department of Ecomonic and Community Affairs,
           Energy Division, programs.
           http://www.adeca.alabama.gov/Energy/default.asp
           x
No M&V process has been established in
Alabama. M&V is discussed in a document
prepared by the ADECA entitled "Alabama Energy
Performance Contracting Guide." (See pages 30
through 33 of document.)
"Alabama Energy Performance Contracting
Guide."
http://www.adeca.alabama.gov/C7/Performance%
20Contracting/Document%20Library/AEPC%20M
anual.pdf




EE program offerings are very limited and no
                                                 N
delivery structue has been established.
2006 IECC is voluntary effective December 1,
2008. Builders may also use the Residential
Energy Code of Alabama (RECA 2004) (a
voluntary state-developed code equivalent to the
2000 IECC (without SHGC 0.40)) until June 1,
2009. REScheck cannot be used to show
compliance. There is no set schedule for
updates. The most recent update was adopted in
2002. See BCAP summary for Alabama for
additional details.
Residential Energy Code of Alabama (RECA
2004).
http://www.adeca.alabama.gov/C0/Building%20En
ergy%20Codes/default.aspx
BCAP summary. http://bcap-energy.org/node/22

 2006 IECC is voluntary effective December 1,
2008. For state-funded and government
buildings, 2006 IECC is mandatory, but the
Alabama Building Energy Conservation Code
(ABECC 2004) based on ASHRAE 90.1-2001,
may be used untril June 1, 2009. There is no set
schedule for updates. The most recent update
was adopted in November 2008. See BCAP
summary for Alabama for additional details.

Alabama Building Energy Conservation Code
(ABECC 2004).
http://www.adeca.alabama.gov/C0/Building%20En
ergy%20Codes/default.aspx             BCAP
summary. http://bcap-energy.org/node/22




Executive Order 33, issued on May 10, 2006
requires state agencies to cut energy use 10% by
2008 and 20% by 2010. See DSIRE summary for
additional details. State loans are available for
efficiency projects done by local governments in
rural areas. The ADECA provides information and
assistance to state agencies regarding EE. See
ADECA link below.
     Executive Order 33.
     http://www.governorpress.alabama.gov/pr/ex-33-
     2006-05-
     10.asp.http://www.adeca.alabama.gov/C3/Local%
     20Government%20Energy%20Loan%20P/default.
     aspx                                 DSIRE
     summary regarding energy standards for Alabama
     state agencies.
     http://www.dsireusa.org/incentives/incentive.cfm?I
     ncentive_Code=AL03R&re=1&ee=1              ADECA
     web site.
     http://www.adeca.alabama.gov/C7/Performance%
     20Contracting/default.aspx

es
     The ADECA provides public education for the
     State Energy Programs it runs. This includes
     training materials for teachers and students that
     are summarized on the ADECA web site at link
     below. Education and public outreach are also
     provided in the context of other programs run by
     ADECA. For instance, the Agriculture Energy
     Efficiency Program includes an educational
     component. (See corresponding link below.) The
     statutory authority for ADECA to coordinate public
     education is codified at Code of Alabama, section
     41-6A-5.

     ADECA energy education program.
     http://www.adeca.alabama.gov/C1/Energy%20Edu
     cation/default.aspx                      AECDA
     Agriculture Energy Efficiency Program.
     http://www.adeca.alabama.gov/C0/Agriculture%20
     Energy%20Efficiency/default.aspx            Section
     41-6A-5.
     http://alisondb.legislature.state.al.us/acas/codeofal
     abama/1975/41-6a-5.htm
     While Alabama hasn't employed a collaborative
     process to pursue EE as a high priority, it has put
     on workshops and participatred regionally on
     energy-related matters. For instance, the
     Alabama PSC held a public workshop in its
     consideration of sections 1251 and 1254 of
     EPACT in Docket 30066. See discussion on
     pages 1-2 of the November 4, 2008 Order in
     Docket 30066. Alabama also joined the Southern
     States Energy Compact purusant to Code of
     Alabama, section 9-18A-1.
           November 4, 2008 Order in Docket 30066.
           https://www.pscpublicaccess.alabama.gov/pscpub
           licaccess/ViewFile.aspx?Id=2b008d37-e1e0-4313-
           871a-84728f16b6e4                       Section 9-
           18A-1.
           http://alisondb.legislature.state.al.us/acas/FullHitfo
           rCOA.htw?CiWebHitsFile=/acas/codeofalabama/1
           975/9%2D18a%2D1.htm&CiRestriction=energy%
           20efficiency&CiQueryFile=/acas/TextHit.idq&CiBe
           ginHilite=%3CFONT%20COLOR=%22%23FF000
           0%22%3E%3CB%3E%3CEM%3E&CiEndHilite=
           %3C/EM%3E%3C/B%3E%3C/FONT%3E&CiUser
           Param3=/acas/COATextSearch.asp&CiHiliteType
           =Full




imely, and stable program funding to deliver energy efficiency where cost-effective.
           Alabama completed its Climate Action Plan in
           1997. See EPA database for a status report on
           activities in Alabama relating to climate change.
           Alabama is a member of the Climate Registry.


           Alabama Climate Action Plan (1997).
           http://www.epa.gov/climatechange/wycd/stateandl
           ocalgov/downloads/Alabama_action_plan.pdf
           EPA database for Alabama.
           http://www.epa.gov/climatechange/wycd/stateandl
           ocalgov/states/al.html
           Climate Registry.
           http://www.theclimateregistry.org/

gn utility incentives with the delivery of cost-effective energy efficiency and modify ratemaking
           There is no method in place in Alabama for
           addressing the throughput incentive.




           Alabama Power offers a wide variety of TOU and
           RTP rate options are available for C&I customers,
           and one residential TOU rate is offered.

           http://www.alabamapower.com/pricing/al_rates.as
           p


           Alabama Power is in the process of converting its
           customers to smart meters. In its web site,
           Alabama Power indicates that the conversion to
           smart meters will take three years.
           Alabama Power smart meter information.
           http://www.alabamapower.com/residential/smartm
           eter.asp
Alabama Power and Dixie Electric Cooperative
offer on-bill financing.




The Alabama Public Service Commission is
considering the Interconnection Standard set forth
in PURPA §111 (d) (15). Reference APSC
Docket 31045. They do not have separate state
standards.
Huntsville City of, Public Utility - is currently
working on their interconnection policies. The City
of Huntsville generally follows the Tennessee
Valley Authority's interconnection guidelines,
which apply to large generators (< 20 MW) and
can be accessed from here,
http://www.tva.gov/power/pdf/tva_lgips.pdf. Facility
owners must pay $10,000 and fill out an
interconnection request. There are set timelines
for application notification. Various studies must
be conducted and prices for these are quite high.
There are standard forms. The guidelines do not
discuss insurance requirements
Alabama Power Co, IOU - has a fairly complicated
interconnection procedure. If a facility (100 kW or
less), has PURPA qualifying facility (QF) status
then the customer has several options - it can sell
the output to APC through the Rate PAE, it could
bid into a RFP process, or its power could be sold
on the wholesale market. If the facility sells the
power to APC then Rate PAE standards such as
having an external disconnect switch and at least
$1 million in liability insurance. If the facility plans
to sell its electricity on the wholesale market then
it must follow Southern Company's
interconnection requirements. If the generator is
located in APC's territory, but does not meet Rate
PAE requirements then it has the same three
options as mentioned above, but can only sell
power to APC at the avoided energy cost rate. If
the facility is going to sell to APC then there is a
standard application form that must be submitted
and additional studies may be required. The APC
will provide the applicant with estimated study
costs. An APC interconnection agreement would
not grant the facility any wholesale transmission or
interconnection rights. Facilities would have to
Alabama does not have a statewide net metering
policy
Alabama Power Co, IOU - does not have a net
metering policy.
Alabama Power does not have a statewide exit
fee policy. DG unit owners/operators should be
exempt from such fees.

Alabama does not have a statewide policy on
standby rates
Alabama Power Co - there is no standby rate
provision for Alabama Power, customers desiring
standby service are charged under the rate that
would be applicable to them if they were not
generating power. General rates are balanced
between demand and energy charges. Billing
demand is typically the higher of the maximum 15
minute demand of the month or 90% of the
maximum from the previous Jun-Sept period.
Rate available at:
http://www.alabamapower.com/pricing/al_rates.as
p
     There are no formal integrated resource plan
     (IRP) filing requirements for electric companies.
     However, Alabama Power provides the PSC Staff
     with IRP updates every three years that
     incorporate a ten-year planning horizon. Also, the
     PSC Staff may request an update to the IRP as
     needed.

https://www.pscpublicaccess.alabama.gov/pscpublicacc
                                                                           ARKANSAS
                                                                                Electric
Recommendation 1: Recognize energy efficiency as a high priority energy resource.
         EE is established as a high priority resource,         New IRP guidelines, approved in January
         equivalent or superior to supply resources             2007, require "comparable consideration" of
                                                                supply and demand side resources. The
                                                                Governor's Commission on Global Warming
                                                                produced a report in 10/08 which included a
                                                                proposal to meet all new electric load growth
                                                                in Arkansas through utility EE and DSM
                                                          Y     programs. EE and DSM programs that
                                                                deliver demand reductions of 1.4% of total
  1.1                                                           sales were proposed to be phased in
                                                                through 2015, with interim targets. The
                                                                Commission opened a Docket in 10/08 to
                                                                conduct a sweeping inquiry into Sustainable
                                                                Energy Resources, including consideration
                                                                of expanding development of EE.
                                                                IRP guidelines:
                                                          R     http://www.apscservices.info/PDF/06/06-028-
                                                                r_57_1.pdf; Gov. Commission on Global
         1.2.1 EE is integrated into an active IRP,             Warmingresource planning guidelines were
                                                                In 2007, report:
         portfolio management, or other planning                approved that incorporate demand side
         process.                                               resources in the planning process. In 10/08,
                                                          Y     a broad Docket was opened to consider
                                                                expanding sustainable energy resources in
                                                                Arkansas.

                                                                IRP Docket, Docket 06-028-R, Order 6:
  1.2                                                           http://www.apscservices.info/PDF/06/06-028-
                                                                r_57_1.pdf; Sustainable Energy Resources
                                                          R     Docket, Docket 08-144-U, Order 1:
                                                                http://www.apscservices.info/pdf/08/08-144-
                                                                U_1_1.pdf.

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


         EE is an alternative to transmission based             The new IRP guidelines (see 1.1, above)
         on a long-term transparent IRP or                      specify that regional transmission planning,
         transmission system plan                               done by an independent entity, (the
                                                                Southwest Power Pool, an RTO), should be
                                                          N     should be integrated into the IRP so that the
  1.3                                                           analysis of demand response and
                                                                generation options may be "synthesized and
                                                                optimized." Consideration of EE is not
                                                                explicitly required.
                                                                http://www.apscservices.info/PDF/06/06-028-
                                                          R
                                                                r_57_1.pdf
         1.4.1 EE is a biddable commodity                 N


  1.4
        1.4.2 Bids occur in the following markets:
  1.4   (a) energy, (b) capacity, or (c) other       N/A


        State Implementation Plans (SIPs) include
                                                     N
  1.5   EE set-asides

Recommendation 2: Make a strong, long-term commitment to implement cost-effective energy efficiency
        Efficiency commitment is in statute             The state's Energy Conservation
                                                        Endorsement Act of 1977 states "It shall be
                                                        considered a proper and essential function
                                                        of public utilities... to engage in energy
                                                        conservation programs, projects, and
                                                        practices which conserve...electric energy
                                                     Y- and supplies of natural gas, oil, and other
  2.1                                                   fuels." The Act had not been referenced by
                                                        the Arkansas Comission until 2006, when
                                                        the Commission began to consider new
                                                        energy efficiency rules, which were finalized
                                                        in May 2007.
                                                           www.arkansas.gov/psc/EEInfo/Energy_Con
                                                     S
                                                           serv_Act.pdf
        The TRC or Societal Cost Test is used to           New EE program rules outlined in Order 18
        evaluate EE programs                               in Docket 06-004-R requires 4 tests to be
                                                           performed, but none is exclusively favored:
                                                           The Participant Test, The Ratepayer Impact
                                                           Measure Test, The Total Resource Cost
                                                     Y     Test, and the Program Administrator Cost
  2.2                                                      Test. Section 3 of final EE Rules define a
                                                           “cost-effective” program as "one that has a
                                                           high probability of providing aggregate
                                                           ratepayer benefits to the majority of utility
                                                           customers."

                                                     R  http://www.apscservices.info/pdf/06/06-004-
                                                        r_125_1.pdf
        2.3.1 Potential for cost-effective EE has       Order 18 in Docket 06-004-R encourages
        been established through a potential study      utilities to estimate potential. One electric
                                                        utility (Entergy) has conducted an
                                                     Y- "achievable potential" study via a national
                                                        consultant (ICF).


                                                     R     http://www.apscservices.info/pdf/06/06-004-
  2.3
2.3   2.3.2 Established EE programs reach all             Order 18 in Docket 06-004-R requires utility
      customer classes                                    portfolios to include EE programs for all
                                                          customer classes. See p. 68 of the Order.
                                                          Four electric utilities received approval for
                                                      Y   Quick Start programs in Fall 2007, which
                                                          were designed to reach all customer
                                                          classes. Comprehensive EE programs must
                                                          be filed on July 1, 2009.

                                                          http://www.apscservices.info/pdf/06/06-004-
                                                      R   r_125_1.pdf; Quick Start programs for
                                                          Southwestern Elec. Power, Docket 07-082-
                                                          TF: http://www.apscservices.info/pdf/07/07-
      Funding requirements for all long-term, cost-       For the Quick Start EE programs
      effective EE have been established                  implemented in 2007-09 the utilities have
                                                          self-determined the levels of spending and
                                                          energy/peak savings goals to include in their
                                                          portfolios, which were approved by the
                                                      N   Commission. The same is true for the
2.4
                                                          proposed Comprehensive EE programs
                                                          being filed on July 1, 2009, which the
                                                          Commission will review for approval.



      2.5.1 Quantitative MW and MWh savings              New EE program rules outlined in Order 18
      goals have been established and are                in Docket 06-004-R require program filings
      producing incremental investment.                  to quantify expected savings goals. See
                                                         Attachment A in Order 18. Quick start
                                                      Y- programs approved in Fall 2007 established
                                                         savings goals, accepting those proposed by
                                                         the utilities, whose goals vary widely.

                                                          http://www.apscservices.info/pdf/06/06-004-
                                                          r_125_1.pdf
      2.5.2 Goals are established: (a) connection         New EE program rules outlined in Order 18
      with IRP or other planning process; (b) as          in Docket 06-004-R require program filings
      part of an EEPS or similar system; (c) as           to quantify expected savings goals. The
      part of program approval and budget-setting         Governor's Commission on Global Warming
      process; (d) other                                  produced a report in 10/08 which included a
                                                          proposal to meet all new electric load growth
                                                      c
                                                          in Arkansas through utility EE and DSM
2.5                                                       programs. EE and DSM programs that
                                                          deliver demand reductions of 1.4% of total
                                                          sales were proposed to be phased in
                                                          through 2015, with interim targets.

                                                          Gov. Commission on Global Warming
                                                          report:
                                                          http://www.arclimatechange.us/stakeholder.c
                                                          fm
      2.5.3 Energy Efficiency can be used to fulfill         No RPS in place.
      requirements of an RPS or similar standard       N


      2.5.4 Expected Capacity Savings (Annual                First programs implemented in late 2007.
                                                       NA
      MW in 2006)

      2.5.5 Energy Savings (Annual MWh in                    First programs implemented in late 2007.
                                                       NA
      2006)

      2.6.1 A robust M&V process has been                    Order 18 in Docket 06-004-R requires
      established                                            utilities to develop an M&V process, to be
                                                             approved by the Commission. Use of
                                                             deemed savings will be allowed. Several
                                                             utilities have collaborated in a deemed
                                                       N
                                                             savings proposal, and in February 2008, the
                                                             Commission approved all deemed savings
                                                             estimates applicable to their efficiency
                                                             programs (Docket 07-152-TF).

                                                             http://www.apscservices.info/pdf/06/06-004-
                                                       R
                                                             r_125_1.pdf; Docket 07-152-TF, Final Order:
      2.6.1.1   M&V is adequately funded                     Cost of M&V are recoverable under the
                                                       Y     Commission-approved Energy Efficiency
                                                             Cost Recovery rider.

2.6   2.6.1.2 Energy savings are used to
                                                       Y
      measure performance

      2.6.1.3 M&V is done according to a
                                                       Y
      defined schedule

      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

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



      2.7.1 EE delivery structure has been                   EE rules approved in 2007 establish that
      established                                            utilities will be responsible for administering
                                                             and implementing efficiency programs. The
                                                             Commission reserves the right to appoint an
                                                       Y     independent administrator of efficiency, but
                                                             states that utilities would still be responsible
                                                             for complying with the EE rules. Quick Start
2.7                                                          EE programs were approved for four electric
                                                             utilities in Fall 2007. Utilities are required to
2.7
                                                              EE Rules, p 37:
                                                              http://www.apscservices.info/PDF/06/06-004-
                                                              r_125_1.pdf
       2.7.2 Delivery is via: (a) utility
       administration; (b) third-party administration;    a
       or (c) government agency

       Resource plans are regularly updated                   Order 6 in Docket 06-028-R requires
                                                          Y   resource plans to be submitted at least once
2.8                                                           every three years.


       2.9.1 Building Energy Codes for residential           The 2004 Arkansas Energy Code for New
       buildings are in place and regularly updated          Building Construction, effective 10/1/04, is a
                                                             combination of the 2003 IECC code with
                                                             Arkansas supplements and amendments.
                                                         Y/Y There is no set schedule for updates. The
                                                             Governor's Commission on Global Warming
                                                             produced a report in 10/08 which
                                                             recommended improving building codes and
                                                             their enforcement.
                                                             http://bcap-
       2.9.2 Building Energy Codes for                       The 2004 Arkansas Energy Code for New
       commercial buildings are in place and                 Building Construction, effective 10/1/04,
2.9    regularly updated                                     adopts the ASHRAE Standard 90.1-2001 for
                                                             Buildings Except Low-Rise Residential
                                                         Y/Y Buildings. There is no set schedule for
                                                             updates. The Governor's Commission on
                                                             Global Warming produced a report in 10/08
                                                             which recommended improving building
                                                             codes and their enforcement.
                                                             http://bcap-
                                                             energy.org/state_status.php?state_ab=AR;
                                                             Gov. Commission on Global Warming
                                                             report:
                                                             http://www.arclimatechange.us/stakeholder.c
                                                             fm
       Appliance and Equipment Efficiency
       Standards are in place and regularly              N
2.10
       updated
         Energy efficiency is a high priority in state      Act 1770, effective in 2005, encourages
         buildings and state funded buildings as            state buildings to adopt LEED and Green
         evidenced in capital planning and enabling         Globes rating systems whenever possible in
         performance contracts                              conducting a building project. The
                                                            Governor's Commission on Global Warming
                                                            produced a report in 10/08 which included a
                                                            proposal to meet all new electric load growth
                                                            in Arkansas through utility EE and DSM
                                                         Y- programs. The report also recommended
  2.11                                                      that policies should be set to reduce energy
                                                            use in state-owned buildings. On 12/13/08,
                                                            a partnership was announced between the
                                                            state and the Clinton Foundation's Clinton
                                                            Climate Initiative to help the state plan and
                                                            implement regulations and guidelines that
                                                            improve the EE of state buildings.

                                                             http://170.94.58.9/ftproot/acts/2005/public/ac
                                                         S
                                                             t1770.pdf
Recommendation 3: Miscellaneous Policies
         3.1.1 Public education programs on EE are       Y   Energy Efficiency Arkansas education
         in place. (See Guide Tab for Y/N criteria.)         programs were underway in 2008.



         3.1.2 Process is in place, such as a state          The Arkansas Sustainable Energy
         or regional collaborative, to pursue EE as a        Collaborative was established in 10/08 under
         high-priority resource. (See Guide Tab for      Y   a Docket to promote expanded development
         Y/N criteria.)                                      of sustainable energy resources.
  3.1
         Do not delete this row.                             Docket 08-144-U, Order 1:
                                                         R
                                                             http://www.apscservices.info/pdf/08/08-144-
         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.
  3.2    Do not delete this row.
         Do not delete this row.
  3.3
         Do not delete this row.


Recommendation 4: Promote sufficient, timely, and stable program funding to deliver energy efficiency w
      4.1.1 Cost recovery process exists                    Docket 06-004-R, Order 18 requires utilities
                                                            to propose cost-recovery mechanisms when
                                                            filing their energy efficiency plans. Recovery
                                                            may be through a surcharge or a rider.
                                                            Arkansas Code 23-3-405 (The 1977 Energy
                                                            Conservation Act) gives the Commission the
                                                            authority to approve cost-recovery
                                                            mechanisms. Quick Start programs
                                                            approved in 9/07 for two utilities provide
                                                            incremental cost-recovery via an energy
                                                         Y-
                                                            efficiency cost rate rider (EECR). EECR
                                                            terms and conditions also apply to seven
                                                            electric/gas utilities in the state on an interim
                                                            basis, pending comprehensive plan filings
                                                            and further program and tariff review in 2009
                                                            in the context of Commission consideration
                                                            of expanding Quick Start programs to
                                                            Comprehensive Programs.

4.1
                                                             EE Rules:
                                                             http://www.apscservices.info/pdf/06/06-004-
                                                             r_125_1.pdf; Quick Start programs for
                                                             Southwestern Elec. Power, Docket 07-082-
                                                         R   TF: http://www.apscservices.info/pdf/07/07-
                                                             082-tf_24_1.pdf; Quick Start programs for
                                                             Entergy Arkansas and EECR approval for
                                                             other utilities, Docket 07-085-TF:
                                                             http://www.apscservices.info/pdf/07/07-085-
                                                             tf_50_1.pdf
      4.1.2 Recovery occurs via: (a) rider; (b)              Energy Efficiency Cost Recovery (EECR)
      regular rate case; or (c) system benefits          a   riders were approved for all 7 utilities in fall
      charge                                                 2007.

      4.1.3 Funding is for multi-year periods                Order 18 states that plans may cover from 1-
                                                         Y   3 years.
                                                             http://www.apscservices.info/pdf/06/06-004-
                                                         R
                                                             r_125_1.pdf
      A base energy efficiency spending level                Utilities were allowed to propose budget and
      exists, with opportunity to justify higher level       energy/peak savings goals for their EE
                                                             program portfolios for the Quick Start phase;
                                                         N   all were approved as filed. The same
4.2
                                                             approach is in place for the Comprehensive
                                                             programs being filed on July 1, 2009.


      % of net (retail) utility revenue presently            No standard has been set to date and
      used for energy efficiency [no unit = %; m/k           percentages spent vary widely in Quick Start
      = mils/kWh]                                        N   phase.
4.3
         Funds from carbon trading program support
  4.4
Recommendation 5: Modify policies to align utility incentives with the delivery of cost-effective energy effi
         5.1.1 Utility throughput incentive is             The Commission has begun to address the
         addressed and disincentives are removed           throughput incentive. Order 18 in Docket 06-
                                                           004-R established that lost revenue recovery
                                                           or decoupling may be considered, but would
                                                           be best considered in the context of rate
                                                           case proceedings on a case-by-case basis.
                                                           The Governor's Commission on Global
                                                           Warming produced a report in 10/08 which
                                                           included a proposal to meet all new electric
                                                       N   load growth in Arkansas through utility EE
                                                           and DSM programs. The report also
                                                           recommended that the Commission should
                                                           adopt rate designs and cost recovery
                                                           mechanisms that are necessary and in the
  5.1                                                      public interest, to decouple the recovery of
                                                           the utilities' revenues from the amount of
                                                           electricity or natural gas sold. A Docket
                                                           opened in 10/08 on innovative approaches to
                                                           ratemaking may address decoupling, as will
                                                           the SER Docket (08-144-U), Order 1:
                                                           Order 18 is available at
                                                           http://www.apscservices.info/PDF/06/06-004-
                                                       R   r_125_1.pdf. See pp. 4-7; Gov. Commission
                                                           on Global Warming report:
                                                           http://www.arclimatechange.us/stakeholder.c
         5.1.2 Method used is: (a) decoupling; (b)         fm; Ratemaking Docket, Docket 08-137-U:
         lost revenue recovery; or (c) non-utility
         implementaion of EE

         5.2.1 Utility/shareholder EE incentives are       The Governor's Commission on Global
         provided                                          Warming produced a report in 10/08 which
                                                           included a proposal to meet all new electric
                                                           load growth in Arkansas through utility EE
                                                           and DSM programs. The report also
                                                       N
                                                           recommended the Commission should
                                                           identify appropriate incentives that are
                                                           necessary and in the public interest, to
  5.2                                                      further encourage the utilities to offer energy
                                                           efficiency, conservation, and DSM.
                                                           Gov. Commission on Global Warming
                                                           report:
                                                           http://www.arclimatechange.us/stakeholder.c
                                                           fm
         5.2.2 Incentives exceed amount of lost
         revenues

         5.3.1 Impact on EE is a consideration when
         designing retail rates

   5.3
   5.3   5.3.2 Declining block rates and fixed              Some declining block rates are still in place.
         variable rate designs have been eliminated     N


         5.4.1 Time sensitive rates in place                In Order 19 in Docket 06-004-R, (the
                                                            efficiency docket) the Commission
                                                            determined that blanket adoption of the
                                                            EPAct standard on time-based metering and
                                                        N
                                                            communication was not in the public interest.
                                                            However, demand response programs
                                                            involving rates can be addressed in
                                                            individual tariff or rate cases.
                                                            http://www.apscservices.info/PDF/06/06-004-
                                                        R
                                                            r_138_1.pdf
         5.4.2 Usage sensitive rates in place               At least one utility (Entergy) has long had in
                                                            place a voluntary residential time-of-use
                                                        Y
                                                            ("TOU") tariff, which has been very poorly
                                                            subscribed.
  5.4
         5.4.3 AMI deployment planned                       In Order 19 in Docket 06-004-R, (the
                                                            efficiency docket) the Commission
                                                            determined that blanket adoption of the
                                                            EPAct standard on time-based metering and
                                                        N
                                                            communication was not in the public interest.
                                                            However, demand response programs
                                                            involving rates can be addressed in
                                                            individual tariff or rate cases.
                                                            http://www.apscservices.info/PDF/06/06-004-
                                                        R
                                                            r_138_1.pdf
         5.4.4 Other mechanisms exist (e.g., on-bill
                                                        N
         financing, benefit sharing)

State Fiscal Policy
         Sales Tax reduction or exemption for energy
                                                        N
  6.1    efficient products

         Investment Tax Credit for energy efficient
                                                        N
  6.2    investments

         State supported low cost financing for
         energy efficient investments: buildings (x),   N
         equipment (y)
  6.3
         New or reorganized energy policy agency        N

Distributed Generation Policies
      A statewide interconnection policy is in place      The Arkansas PSC has interconnection
                                                          standards, AR PSC Order 02-046-R, but for
                                                          net-metered facilities only. Facilities using
                                                          solar, wind, hydro, geothermal, and biomass
                                                          are allowed to net meter and connect to the
                                                          grid. Fuel cells and microturbines are also
                                                          eligible. There are system capacity limits -
                                                          25 kW for residential and 300 kW for
                                                          nonresidential systems. There is standard
                                                       Y- interconnection agreement, which must be
                                                          submitted 30 days before interconnecting.
                                                          Systems must meet all performance
                                                          standards required by local and national
                                                          code, such as NEC, IEEE, NESC, and UL
7.1                                                       standards. Most of the time, an external
                                                          disconnect is required. The PSC order does
                                                          not address insurance requirements or fees.


                                                           AR PSC Order 02-046-R can be accessed
                                                           from here,
                                                       R
                                                           http://www.dsireusa.org/documents/Incentive
                                                           s/AR03Ra1.pdf
                                                           HB 2334, passed in 2007 extended net-
                                                           metering and interconnection to systems up
                                                           to 300 kW, previously the limit was 100 kW.
                                                       S
                                                           HB 2334 can be accessed here,
                                                           http://www.arkleg.state.ar.us/ftproot/bills/200
                                                           7/public/HB2334.pdf
      A statewide net metering policy is in place          Arkansas has statewide net metering
                                                           standards first established by A.C.A. § 23-18-
                                                           604 and then modified recently with HB 2334
                                                           enacted in 2007 Residential customers with
                                                           systems up to 25 kW and nonresidential
                                                           customers with systems up to 300 kW are
                                                           allowed to net meter. Eligible technologies
                                                           are solar, wind, hydroelectric, geothermal,
                                                       Y
                                                           biomass systems, fuel cells and
                                                           microturbines using renewable fuels. NEG is
                                                           carried over to the following monthly bill at
7.2                                                        the utility's retail rate. Any remaining NEG at
                                                           the end of an annual period is credited to the
                                                           utility. There is no limit on overall enrollment
                                                           for all net-metered systems.

                                                           A.C.A. § 23-18-604 can be accessed from
                                                           here,
                                                           http://www.dsireusa.org/documents/Incentive
                                                       S   s/AR03R.htm and HB 2334 of 2007 can be
                                                           found here,
                                                           http://www.arkleg.state.ar.us/ftproot/bills/200
                                                           7/public/HB2334.pdf
      A statewide exit fee policy is in place            Arkansas does not have a statewide policy
                                                         on exit fees. DG customers will not be
                                                     N   charged an exit fee. There may be an early
7.3
                                                         termination fee for customers that enter into
                                                         long-term contracts.

      A statewide standby rate policy is in place      Arkansas does not have a statewide policy
                                                     N
                                                       on standby rates
                                                       Southwestern Electric Power Co - Rate No.
                                                       28 - standby service is provided to
                                                       customers on a primarily demand based rate
                                                       with very low energy charges. Billing
                                                       demand is based on the higher of the
                                                   U - maxium 15 minute demand or 70% of the
                                                       maximum from the previous 11 months.
                                                       Rate available at:
                                                       https://www.swepco.com/CustomerService/
7.4                                                    RatesAndTariffs/LegalTariffFilings/Arkansas.
                                                       aspx
                                                       Entergy Arkansas Inc - Standby Service
                                                       Rider - standby service is provided to
                                                       customers who contract for a specified
                                                       amount of standby capacity with the utility. A
                                                       moderate standby reservation fee is charged
                                                   U
                                                       each month based on the contract demand.
                                                       For all non-reserved service energy, the
                                                       customer will be billed according to their
                                                       regular rate or the Large Power Service rate
                                                       schedule.
      As part of resource planning process, CHP        Order 6 in Docket 06-028-R, filed in January
      is reviewed and incorporated where effective     2007, approved resource planning guidelines
                                                       that do not specifically mention the
                                                       incorporation of CHP in the planning
                                                       process; however, "Utility efforts to
                                                       encourage energy efficiency, conservation,
                                                       demand-side management, interruptible
                                                   N
                                                       load, and price responsive demand should
                                                       be identified." A resource plan must be
                                                       submitted once every three years, utilities
                                                       are on a staggered filing schedule, with 2 of
                                                       4 IOUs, plus electric cooperatives preparing
                                                       3-year IRPs during 2009-2010.

                                                     R   http://www.apscservices.info/PDF/06/06-028-
7.5
                                                         Southwestern Electric Power Co submitted
                                                         an IRP with the Arkansas Public Service
                                                         Commission in February 2007 pursuant to
                                                     U Order #6 of docket 06-028-R. Swepco
                                                         conducted IRP stakeholder process in winter
                                                         2008-09 and will submit IRP in late summer
                                                         2009.
                                  http://www.apscservices.info/efilings/docket_search_results.asp?casenumber=07-011-U
    Entergy Arkansas Inc - issued an IRP in
    2002 for their service territory (TX, LA, MS,
U
    AK), Entergy is planning on submitting an
    IRP for Arkansas in 2009, after conducting a
    stakeholder process in spring 2009.
                             Natural Gas
urce.




            The new IRP process does not apply to gas utilities.
            In 10/08, a broad Docket was opened to consider
            expanding sustainable energy resources in
        N   Arkansas.



            Sustainable Energy Resources Docket, Docket 08-
            144-U, Order 1:
            http://www.apscservices.info/pdf/08/08-144-
            U_1_1.pdf.
effective energy efficiency as a resource
                  The state's Energy Conservation Endorsement Act
                  of 1977 states "It shall be considered a proper and
                  essential function of public utilities... to engage in
                  energy conservation programs, projects, and
                  practices which conserve...electric energy and
                  supplies of natural gas, oil, and other fuels." The Act
             Y-   had not been referenced by the Arkansas Comission
                  until 2006, when the Commission began to consider
                  new energy efficiency rules, which were finalized in
                  May 2007.



                  www.arkansas.gov/psc/EEInfo/Energy_Conserv_Ac
             S
                  t.pdf
                  New EE program rules outlined in Order 18 in
                  Docket 06-004-R requires 4 tests to be performed,
                  but none is exclusively favored: The Participant Test,
                  The Ratepayer Impact Measure Test, The Total
                  Resource Cost Test, and the Program Administrator
             Y    Cost Test. Section 3 of final EE Rules define a “cost-
                  effective” program as "one that has a high probability
                  of providing aggregate ratepayer benefits to the
                  majority of utility customers."



             R    http://www.apscservices.info/pdf/06/06-004-
                  r_125_1.pdf
                  Order 18 in Docket 06-004-R encourages utilities to
                  estimate potential.

             N



             R    http://www.apscservices.info/pdf/06/06-004-
     Order 18 in Docket 06-004-R requires utility
     portfolios to include EE programs for all customer
     classes. See p. 68 of the Order. Quick Start
     programs were approved for the states' three gas
Y    utilities in Fall 2007, which were designed to reach all
     customer classes. Comprehensive programs must
     be filed on July 1, 2009.



     http://www.apscservices.info/pdf/06/06-004-
R    r_125_1.pdf. Individual utility program proposals
     filed summer 2007.
     For the Quick Start EE programs implemented in
     2007-09 the utilities have self-determined the levels
     of spending and energy/peak savings goals to
     include in their portfolios, which were approved by
     the Commission. The same is true for the proposed
N    Comprehensive EE programs being filed on July 1,
     2009, which the Commission will review for approval.




     New EE program rules outlined in Order 18 in
     Docket 06-004-R require EE program filings to
     quantify expected savings goals. See Attachment A
     in Order 12. Quick start programs approved in Fall
Y-   2007 established savings goals, accepting those
     proposed by the utilities, whose goals vary widely.



     http://www.apscservices.info/pdf/06/06-004-
     r_125_1.pdf
     New EE program rules outlined in Order 18 in
     Docket 06-004-R require program filings to quantify
     expected savings goals. The Governor's
     Commission on Global Warming produced a report
     in 10/08 which included a proposal to meet all new
     electric load growth in Arkansas through utility EE
c
     and DSM programs. EE and DSM programs that
     deliver demand reductions of 1.4% of total sales
     were proposed to be phased in through 2015, with
     interim targets.
      No RPS in place.
N


      First programs implemented in late 2007.
NA


      First programs implemented in late 2007.
NA


      Order 18 in Docket 06-004-R requires utilities to
      develop an M&V process, to be approved by the
      Commission. Use of deemed savings will be
      allowed. Several utilities have collaborated in a
      deemed savings proposal, and in February 2008, the
N
      Commission approved all deemed savings estimates
      applicable to their efficiency programs (Docket 07-
      152-TF).


      http://www.apscservices.info/pdf/06/06-004-
R
      r_125_1.pdf
      Cost of M&V are recoverable under the Commission-
Y     approved Energy Efficiency Cost Recovery rider.




a,c



      EE rules approved in 2007 establish that utilities will
      be responsible for administering and implementing
      efficiency programs. The Commission reserves the
      right to appoint an independent administrator of
Y     efficiency, but states that utilities would still be
      responsible for complying with the EE rules. See p.
      37. Quick Start programs were approved for 3 gas
      utilities in Fall 2007. Comprehensive plans must be
      filed by July 1, 2009.
    http://www.apscservices.info/PDF/06/06-004-
    r_125_1.pdf


a


    Order 6 in Docket 06-028-R requires resource plans
Y   to be submitted at least once every three years.
             Y   Energy Efficiency Arkansas education programs
                 were underway in 2008.



                 The Arkansas Sustainable Energy Collaborative was
                 established in 10/08 under a Docket to promote
             Y   expanded development of sustainable energy
                 resources.

                 Docket 08-144-U, Order 1:
             R
                 http://www.apscservices.info/pdf/08/08-144-




deliver energy efficiency where cost-effective.
     Docket 06-004-R, Order 18 requires utilities to
     propose cost-recovery mechanisms when filing their
     energy efficiency plans. Recovery may be through a
     surcharge or a rider. Arkansas Code 23-3-405 (The
     1977 Energy Conservation Act) gives the
     Commission the authority to approve cost-recovery
     mechanisms. EECR terms and conditions outlined
     in Docket 07-085-TF also apply to seven electric/gas
     utilities in the state on an interim basis, pending
     comprehensive plan filings and further program and
Y-
     tariff review in 2009 in the context of Commission
     consideration of expanding Quick Start programs to
     Comprehensive Programs. .




     EE Rules: http://www.apscservices.info/pdf/06/06-
     004-r_125_1.pdf; Quick Start programs for Entergy
     Arkansas and EECR approval for other utilities,
     Docket 07-085-TF:
     http://www.apscservices.info/pdf/07/07-085-
R    tf_50_1.pdf




     Energy Efficiency Cost Recovery (EECR) riders were
a    approved for all 7 utilities in fall 2007.


     Order 18 states that plans may cover from 1-3 years.
Y

     http://www.apscservices.info/pdf/06/06-004-
R
     r_125_1.pdf
     Utilities were allowed to propose budget and
     energy/peak savings goals for their EE program
     portfolios for the Quick Start phase; all were
N    approved as filed. The same approach is in place
     for the Comprehensive programs being filed on July
     1, 2009.


     No standard has been set to date and percentages
     spent vary widely in Quick Start phase.
N
cost-effective energy efficiency and modify ratemaking
                In 2007, Arkansas Western Gas, Arkansas
                Oklahoma Gas, and CenterPoint Energy Resources
                received approval to use "partial-decoupling" tariffs
                for the next 3 or 4 years, in the context of general
                rate cases. In a separate proceeding, the
                Commission established that lost revenue recovery
                or decoupling may be considered, but would be best
                considered in the context of a rate case. The
                Governor's Commission on Global Warming
           Y-   produced a report in 10/08 which included a proposal
                to meet all new electric load growth in Arkansas
                through utility EE and DSM programs. The report
                also recommended that the Commission should
                adopt rate designs and cost recovery mechanisms
                that are necessary and in the public interest, to
                decouple the recovery of the utilities' revenues from
                the amount of electricity or natural gas sold. A
                Docket opened in 10/08 on innovative approaches to
                ratemaking may address decoupling, as will the SER
                Docket (08-144-U), Order 1:
                Arkansas Western Gas, Docket 06-124-U, Order 6:
                http://www.apscservices.info/PDF/06/06-124-
           R    u_109_1.pdf; Arkansas Oklahoma, Docket 07-026-
                U, Order 7: http://www.apscservices.info/pdf/07/07-
                026-u_151_1.pdf; CenterPoint Energy Resources,
                Docket 06-161-U, Order 6:
           a
                                                                                    FLORIDA
                                                                                   Electric                                     Natural Gas
Recommendation 1: Recognize energy efficiency as a high priority energy resource.
         EE is established as a high priority                EE, through DSM and conservation, are considered a
         resource, equivalent or superior to supply          resource in Florida. In December 2006, the FPSC
         resources                                           endorsed the NAPEE which recommends making EE a
                                                         N   high-priority resource. But no formal policy steps have
  1.1                                                        been taken to establish EE as a high priority resource.




         1.2.1 EE is integrated into an active IRP,          Utilities prepare DSM plans every 5 years. Ten-year Site
         portfolio management, or other planning             Plans are submitted to the Commission. These are
         process                                             informal plans that include the results of utility 5-year
                                                             DSM plans in projecting future demand needs. Florida’s
                                                             EE statutes are part of the Florida Energy Efficiency and
                                                             Conservation Act (FEECA). FEECA was originally
                                                             enacted in 1980 and is codified at sections 366.80
                                                             through 366.85 and section 403.519, Florida Statutes
                                                             (F.S.). The planning requirement for the FPSA and
                                                             Florida’s IOUs is codified at section 366.82 F.S. The
                                                             FPSC’s rules requiring IOUs subject to the FEECA to
                                                             implement DSM programs are Rules 25-17.001 through
                                                             25.17.015 FCA. On April 30, 2008, the Florida Senate
                                                         N passed House Bill 7135: An Act Relating to Energy,             N
                                                             which was signed by Governor Charlie Crist in June
                                                             2008. Requirements in HB 7135 include: incentives to be
                                                             provided for utility achievement in energy efficiency, a
                                                             report by the FPSC on decoupling, and other energy
                                                             reduction requirements. The FPSC must set new EE
                                                             goals by January 2010. As part of this new goal setting
                                                             process, the FPSC has begun conducting a series of
                                                             workshops regarding EE initiatives. The FPSC held four
                                                             workshops from November 2007 through November
                                                             2008. During these workshops interested persons
                                                             discussed such things as the parameters of existing and
                                                             possible EE programs, a new potential study, savings
                                                             goals and M&V. The FPSC’s planning process and a
  1.2                                                        HB 7135, effective 7/1/08.
                                                             http://www.flsenate.gov/data/session/2008/House/bills/bill
                                                             text/pdf/h713503er.pdf
                                                             FEECA statute. (Sections 366.80 through
                                                             366.85)http://www.leg.state.fl.us/Statutes/index.cfm?App
                                                             _mode=Display_Statute&URL=Ch0366/titl0366.htm&Stat
                                                             uteYear=2008&Title=%2D%3E2008%2D%3EChapter%2
                                                             0366 (Section 403.519)
                                                             http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=
                                                             Display_Index&Title_Request=XXIX#TitleXXIX
                                                        S, A Rules 25-17.001 through 25.17.015 FCA.                      S, A
                                                             https://www.flrules.org/gateway/ChapterHome.asp?Chapt
                                                             er=25-17
                                                             Annual Report on Activities Pursuant to Florida Energy
                                                             Efficiency Act, February, 2009.
                                                             http://www.psc.state.fl.us/publications/pdf/electricgas/FEE
                                                             CA2009.pdf




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




         EE is an alternative to transmission based
         on a long-term transparent IRP or               N
  1.3
         transmission system plan
  1.3

        1.4.1 EE is a biddable commodity             N

        1.4.2 Bids occur in the following markets:
  1.4
        (a) energy, (b) capacity, or (c) other       N


        State Implementation Plans (SIPs) include
                                                     N
  1.5   EE set-asides

Recommendation 2: Make a strong, long-term commitment to implement cost-effective energy efficiency as a resource
        Efficiency commitment is in statute              1980 Florida Energy Efficiency and Conservation Act
                                                         required some utilities to adopt cost-effective EE
                                                         programs. The legislative intent underlying FEECA is
                                                         codified at section 366.81. Section 366.81 alludes to the
                                                         need for EE but does not include a specific commitment
                                                         to it. Section 366.82 requires the FPSC to establish
                                                         goals for increasing EE every 5 years. After the FPSC
                                                     Y                                                                   Y
                                                         adopts EE goals, each IOU subject to FEECA must
                                                         develop plans and programs to meet the goals which are
                                                         reviewed by the FPSC.
  2.1



                                                         FEECA statute. (Sections 366.80 through 366.85)
                                                         http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=
                                                         Display_Statute&URL=Ch0366/titl0366.htm&StatuteYear
                                                     S   =2008&Title=%2D%3E2008%2D%3EChapter%20366
                                                         (Section 403.519)
                                                         http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=
                                                         Display_Index&Title_Request=XXIX#TitleXXIX
                                                         Section 366.82, FS, requires IOU conservation programs
                                                         to be cost-effective. Florida Rule 25-17.008 F.A.C.
                                                         establishes the applicable cost effectiveness tests used
                                                         to evaluate proposed plans, programs, and program
                                                         modifications. Under the current rules, in order to obtain
                                                         recovery, a utility must provide a cost effectiveness
                                                         analysis of each program using three tests: a Participant
                                                         test, a Ratepayer Impact Measure (RIM) and the Total
                                                         Resource Cost (TRC) test. The features of each of these
                                                         tests are summarized in the FPSC’s most recent FEECA
                                                     N   annual report (page 12). According to this report, the          N
                                                         FPSC’s traditional policy has been to set goals for utilities
                                                         based on measures that pass both the Participant and
                                                         RIM tests. In addition, the FPSC encourages utilities to
                                                         evaluate implementation of TRC measures when it is
                                                         found that the savings are large and the rate impacts are
                                                         small. Section 366.82 was amended in 2008 to allow the
                                                         FPSC more flexibility when evaluating cost effectiveness
                                                         of utility DSM goals. (HB 7135). As discussed under
  2.2   The TRC or Societal Cost Test is used to         1.2.1 above, the FPSC must set new DSM goals by
        evaluate EE programs                             January 2010. As part of this new goal setting process,
                                                         the FPSC has begun conducting a series of workshops
2.2




                                                        FPSC Annual Report on Activities Pursuant to Florida
                                                        Energy Efficiency and Conservation Act, February, 2009.
                                                        http://www.psc.state.fl.us/publications/pdf/electricgas/FEE
                                                        CA2009.pdf
                                                        FEECA statute. (Sections 366.80 through
                                                   S, A 366.85)http://www.leg.state.fl.us/Statutes/index.cfm?App S, A
                                                        _mode=Display_Statute&URL=Ch0366/titl0366.htm&Stat
                                                        uteYear=2008&Title=%2D%3E2008%2D%3EChapter%2
                                                        0366 (Section 403.519)
                                                        http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=
                                                        Display_Index&Title_Request=XXIX#TitleXXIX
                                                        Rule 25-17.008.
                                                        https://www.flrules.org/gateway/readFile.asp?sid=0&tid=1
                                                        480140&type=1&File=25-17.008.docApril

      2.3.1 Potential for cost-effective EE has         ACEEE published a study in 2007 titled "Potential for
      been established through a potential study        Energy Efficiency and Renewwable Energy to Meet
                                                        Florida's Growing Energy Demand." The FEECA was
                                                        amended in 2008. One of the amendments directs the
                                                        FPSC to undertake a potential study. (HB 7135, section
                                                        39) The new language reads as follows: “In developing
                                                        the goals, the commission shall evaluate the full technical
                                                        potential of all available demand-side and supply-side
                                                        conservation and efficiency measures….” (Section
                                                        366.82 (3)) In response to this directive, two potential
                                                        studies were done in Florida. The first was performed by
                                                        ITRON and KEMA working together for a consortium of
                                                    Y   FEECA utilities. The second was done by GDS for the
                                                        FPSC. Both are in final form and were presented to the
                                                        FPSC on December 15, 2008. In addition, the FPSC
                                                        must set new EE goals by January 2010. The FPSC’s
                                                        goal setting activities are taking place in dockets 080407-
                                                        EG through 080413-EG. The potential studies will be
                                                        presented as documentary evidence in these
                                                        proceedings. The FPSC has retained GDS to assist the
                                                        FPSC evaluate the results of the potential studies and
                                                        responsive filings and proposals that will be made by the
                                                        IOUs and other parties. As part of this new goal setting
                                                        process, the FPSC undertook a series of workshops
2.3
                                                        regarding EE initiatives. The FPSC held four workshops
                                                        in from November 2007 through November 2008. During

                                                        ACEEE 2007 portential study
                                                        http://www.aceee.org/pubs/e072.htm         HB 7135,
                                                        effective 7/1/08.
                                                        http://www.flsenate.gov/data/session/2008/House/bills/bill
                                                        text/pdf/h713503er.pdf
                                                        FEECA statute. (Sections 366.80 through
                                                        366.85)http://www.leg.state.fl.us/Statutes/index.cfm?App
                                                    S   _mode=Display_Statute&URL=Ch0366/titl0366.htm&Stat
                                                        uteYear=2008&Title=%2D%3E2008%2D%3EChapter%2
                                                        0366 (Section 403.519)
                                                        http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=
                                                        Display_Index&Title_Request=XXIX#TitleXXIX
                                                        Annual Report on Activities Pursuant to Florida Energy
                                                        Efficiency Act, February, 2009.
                                                        http://www.psc.state.fl.us/publications/pdf/electricgas/FEE
                                                        CA2009.pdf

      2.3.2 Established EE programs reach all           See EEI summary of EE and demand response programs
      customer classes                              Y   which includes a summary of programs offered by four          Y
                                                        Florida IOUs. (Pages 18, 20 and 39)
                                                           EEI Highlights of EE and Demand Response Programs
                                                           for 2008.
                                                           http://www.eei.org/industry_issues/retail_services_and_d
                                                           elivery/wise_energy_use/programs_and_incentives/progs
                                                           .pdf

      Funding requirements for all long-term, cost-        As discussed in 2.3.1 above, the FPSC is currently
      effective EE have been established                   conducting a potential study to identify all cost effective
                                                           EE that exists in Florida. As discussed in 4.1.1 below,
                                                           IOUs recover their conservation costs from ratepayers
                                                       N
2.4                                                        through the ECCR clause.




      2.5.1 Quantitative MW and MWh savings                Florida Administrative Code 25-17.0021 requires the PSC
      goals have been established and are                  to set KW and KWh savings goals every five years for
      producing incremental investment.                    each utility affected by the FEECA (See Section 2).
                                                           Utilities propose goals in their DSM plans, and the
                                                           Commission approves them periodically. The planning
                                                           requirement is codified at section 366.82 FS. Goals were
                                                           last set in 2004 and the FPSC must set new goals by
                                                           January 2010. On June 26, 2008, the FPSC opened
                                                           dockets 080407-EG through 080413-EG to review
                                                           numeric conservation goals for IOUs subject to FEECA.
                                                       Y   As part of this new goal setting process, the FPSC has
                                                           begun conducting a series of workshops regarding EE
                                                           initiatives. The FPSC held four workshops in from
                                                           November 2007 through November 2008. During these
                                                           workshops interested persons discussed such things as
                                                           the parameters of existing and possible EE programs,
                                                           new potential study, savings goals and M&V. The
                                                           FPSC’s planning process and a summary of the
                                                           workshops can be found in the FPSC’s most recent
                                                           FEECA annual report.



                                                           FEECA statute. (Sections 366.80 through
                                                           366.85)http://www.leg.state.fl.us/Statutes/index.cfm?App
                                                           _mode=Display_Statute&URL=Ch0366/titl0366.htm&Stat
                                                           uteYear=2008&Title=%2D%3E2008%2D%3EChapter%2
                                                           0366 (Section 403.519)
                                                           http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=
                                                           Display_Index&Title_Request=XXIX#TitleXXIX
                                                       S, Rules 25-17.001 through 25.17.015 FCA.
                                                      R, A https://www.flrules.org/gateway/ChapterHome.asp?Chapt
                                                           er=25-17
                                                           Dockets 080407-EG through 080413-EG.
                                                           http://www.floridapsc.com/dockets/cms/
                                                           Annual Report on Activities Pursuant to Florida Energy
                                                           Efficiency Act, February, 2009.
                                                           http://www.psc.state.fl.us/publications/pdf/electricgas/FEE
                                                           CA2009.pdf

2.5   2.5.2 Goals are established: (a)                     FPL’s DSM Goals were approved in Order No. PSC-
      connection with IRP or other planning                040850-CO-EG issued September 1, 2004 in Docket No.
      process; (b) as part of an EEPS or similar           040029-EG. A synopsis of the goal-setting process can
      system; (c) as part of program approval and          be found in a proposed Order issued in that docket in
                                                       c
      budget-setting process; (d) other                    August 2004; see link below. As discussed in 2.5.1
                                                           above, the FPSC is in the process of establishiung new
                                                           goals in dockets 080407-EG through 080413- EG.


                                                           Order in 040850-CO-EG.
                                                       R   http://www.psc.state.fl.us/library/filings/04/08612-
                                                           04/08612-04.pdf                  Dockets 080407-EG
                                                           through 080413-EG.
                                                           http://www.floridapsc.com/dockets/cms/
      2.5.3 Energy Efficiency can be used to          Florida’s RPS statute is codified at section 366.92.
      fulfill requirements of an RPS or similar   N
      standard
                                                      RPS statute.
                                                      http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=
                                                  S   Display_Statute&Search_String=&URL=Ch0366/SEC92.
                                                      HTM&Title=->2008->Ch0366->Section%2092#0366.92

      2.5.4 Expected Capacity Savings (Annual         In its most recent FEECA annual report, the FPSC states
      MW in 2006)                                     that the demand savings from its utility sponsored DSM
                                                      programs since the enactment of FEECA have “deferred
                                                      the need for over 300 typical 150 MV combustion turbine
                                                      units, or enough capacity to serve approximately 1.6
                                                      million households.” (page 13)

                                                      Annual Report on Activities Pursuant to Florida Energy
                                                      Efficiency Act, February, 2009.
                                                      http://www.psc.state.fl.us/publications/pdf/electricgas/FEE
                                                      CA2009.pdf
      2.5.5 Energy Savings (Annual MWh in             In its most recent FEECA annual report, the FPSC states
      2006)                                           that utility-sponsored DSM programs reduced annual
                                                      energy consumption by an estimated 7,250 GWh in 2008.
                                                      (page 13)
                                                      Annual Report on Activities Pursuant to Florida Energy
                                                      Efficiency Act, February, 2009.
                                                      http://www.psc.state.fl.us/publications/pdf/electricgas/FEE
                                                      CA2009.pdf
      2.6.1 A robust M&V process has been             M&V of energy and capacity savings resulting from EE
      established                                     programs is conducted by IOUs and reported to the
                                                      FPSC annually. Pursuant to section 366.82 , the FPSC
                                                      requires IUOs to re-evaluate EE programs on a regular
                                                      basis. Section 366.82 was amended in 2008 in a variety
                                                      of significant ways. (HB 7135). In its most recent FEECA
                                                      annual report, the FPSC notes that “[t]hese new statutory
                                                      changes may result in changes to existing Commission
                                                      policy with regard to how utility-sponsored conservation
                                                      and energy efficiency programs are evaluated. For
                                                      example, the weight the Commission has traditionally
                                                      placed on the RIM and Participant tests in measuring the
                                                      cost effectiveness of utility-sponsored conservation
                                                  Y   programs may be revised.” (page 17) The FPSC is
                                                      currently reviewing utility DSM goals in dockets 080407-
                                                      EG through 080413-EG. The FPSC also held a series of
                                                      workshops from November 2007 through November
                                                      2008. Program evaluation, measurement of savings and
                                                      cost-effectiveness evaluation were recurring topics of
                                                      discussion during these workshops. As discussed in
                                                      2.3.1 above, the FPSC is also undertaking a potential
                                                      study. This study will include and assessment of M&V
                                                      issues.




2.6
                                                    HB 7135, effective 7/1/08.
                                                    http://www.flsenate.gov/data/session/2008/House/bills/bill
                                                    text/pdf/h713503er.pdf
                                                    FEECA statute. (Sections 366.80 through
                                                    366.85)http://www.leg.state.fl.us/Statutes/index.cfm?App
                                                    _mode=Display_Statute&URL=Ch0366/titl0366.htm&Stat
                                                    uteYear=2008&Title=%2D%3E2008%2D%3EChapter%2
                                                    0366 (Section 403.519)
                                                    http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=
                                                    Display_Index&Title_Request=XXIX#TitleXXIX
2.6                                                 Annual Report on Activities Pursuant to Florida Energy
                                                    Efficiency Act, February, 2009.
                                                    http://www.psc.state.fl.us/publications/pdf/electricgas/FEE
                                                    CA2009.pdf
                                               S, R Dockets 080407-EG through 080413-EG.
                                                    http://www.floridapsc.com/dockets/cms/




      2.6.1.1   M&V is adequately funded


      2.6.1.2 Energy savings are used to
      measure performance

      2.6.1.3 M&V is done according to a
      defined schedule

      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

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




      2.7.1 EE delivery structure has been          As discussed in 1.2.1, IOUs that are subject to FEECA
      established                                   are required to implement DSM programs. Florida’s
                                                    IOUs offer over 71 conservation programs for residential
                                                    and commercial customers. These programs are
                                                    discussed in the FPSC’s most recent FEECA annual
                                                    report. (page 1) The primary statute governing this
                                                    requirement is section 366.82. Section 366.82 was
                                                    amended in 2008 by HB 7135 in a variety of significant
                                                    ways. In addition, the FPSC recently conducted a series
                                                Y   of workshops regarding EE issues. It appears that the
                                                    EE delivery structure was not a primary topic of
                                                    discussion during the consideration of HB 7135 or during
                                                    the workshops.




2.7
                                                      Annual Report on Activities Pursuant to Florida Energy
2.7                                                   Efficiency Act, February, 2009.
                                                      http://www.psc.state.fl.us/publications/pdf/electricgas/FEE
                                                      CA2009.pdf
                                                      FEECA statute. (Sections 366.80 through
                                                      366.85)http://www.leg.state.fl.us/Statutes/index.cfm?App
                                                      _mode=Display_Statute&URL=Ch0366/titl0366.htm&Stat
                                                      uteYear=2008&Title=%2D%3E2008%2D%3EChapter%2
                                                  S   0366 (Section 403.519)
                                                      http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=
                                                      Display_Index&Title_Request=XXIX#TitleXXIX
                                                      HB 7135, effective 7/1/08.
                                                      http://www.flsenate.gov/data/session/2008/House/bills/bill
                                                      text/pdf/h713503er.pdf




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

      Resource plans are regularly updated            As discussed in 1.2.1 above, the planning requirement
                                                      for the FPSA and Florida’s IOUs is codified at section
                                                      366.82 F.S. The FPSC’s rules requiring IOUs subject to
                                                      the FEECA to implement DSM programs are Rules 25-
                                                      17.001 through 25.17.015 FCA. Section 366.82 was
                                                      amended in 2008 by HP 7135. Requirements in HB 7135
                                                      include: incentives to be provided for utility achievement
                                                      in energy efficiency, a report by the FPSC on decoupling,
                                                      and other energy reduction requirements. The FPSC
                                                      must set new EE goals by January 2010. As part of this
                                                      new goal setting process, the FPSC has begun
                                                      conducting a series of workshops regarding EE
                                                      initiatives. The FPSC held four workshops from
                                                  Y   November 2007 through November 2008. During these
                                                      workshops interested persons discussed such things as
                                                      the parameters of existing and possible EE programs, a
                                                      new potential study, savings goals and M&V. The
                                                      FPSC’s planning process and a summary of the
                                                      workshops can be found in the FPSC’s most recent
                                                      FEECA annual report.


2.8



                                                      HB 7135, effective 7/1/08.
                                                      http://www.flsenate.gov/data/session/2008/House/bills/bill
                                                      text/pdf/h713503er.pdf
                                                      FEECA statute. (Sections 366.80 through
                                                      366.85)http://www.leg.state.fl.us/Statutes/index.cfm?App
                                                      _mode=Display_Statute&URL=Ch0366/titl0366.htm&Stat
                                                      uteYear=2008&Title=%2D%3E2008%2D%3EChapter%2
                                                      0366 (Section 403.519)
                                                      http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=
                                                 S, A Display_Index&Title_Request=XXIX#TitleXXIX
                                                      Rules 25-17.001 through 25.17.015 FCA.
                                                      https://www.flrules.org/gateway/ChapterHome.asp?Chapt
                                                      er=25-17
                                                      Annual Report on Activities Pursuant to Florida Energy
                                                      Efficiency Act, February, 2009.
                                                      http://www.psc.state.fl.us/publications/pdf/electricgas/FEE
                                                      CA2009.pdf
        2.9.1 Building Energy Codes for                     2000 code mandatory statewide. State developed code,
        residential buildings are in place and              Chapter 13 of the Florida Building Code, exceeds 2006
        regularly updated                               Y/Y IECC. The code is mandatory statewide. The code is on
                                                            a triennial revision cycle.


                                                             Florida building code.
                                                             http://www.floridabuilding.org/BCISOld/bc/default.asp
                                                         A   BCAP site. http://bcap-energy.org/node/61

  2.9
        2.9.2 Building Energy Codes for                     ASHRAE 2004 mandatory statewide. State developed
        commercial buildings are in place and               code, Chapter 13 of the Florida Building Code, is
        regularly updated                                   mandatory statewide and meets or exceeds ASHRAE
                                                        Y/Y
                                                            90.1-2004. The code is on a triennial revision cycle.


                                                             Florida building code.
                                                             http://www.floridabuilding.org/BCISOld/bc/default.asp
                                                             BCAP site. http://bcap-energy.org/node/61

        Appliance and Equipment Efficiency
        Standards are in place and regularly             N
 2.10
        updated
        Energy efficiency is a high priority in state      A number of initiatives and executive orders in recent
        buildings and state funded buildings as            years have highlighted Florida's commitment to efficiency
        evidenced in capital planning and enabling         in state buildings. Executive Order 05-241 calls for the
        performance contracts                              continued reduction in the state's energy demands and
                                                           encourages all state agencies, departments, and local
                                                           governments to be models for all Floridians and engage
                                                           in energy conservation practices including the investment
                                                           in energy-saving equipment. Considered no action
                                                           beacuse there is no specific requirement. The 2006
                                                           Florida Energy Plan calls for new state government
                                                         Y buildings to meet LEED standards and for a reduction of
                                                           energy consumption in state facilities by 25% from 2002
                                                           levels by 2007. Executive Order 07-126 includes a
                                                           variety of directives designed to achieve EE in state
                                                           government facilities, the state procurement process and
                                                           the state transportation-related activities. HB 7135
                                                           requires newly constructed or renovated buildings
 2.11                                                      financed by the state to be designed and built to meet
                                                           nationally recognized green building standards. State
                                                           agencies must also lease Energy Star-related buildings
                                                           and employ energy saving performance contracts to
                                                           upgrade existing 06-241.
                                                           Executive Order facilities.
                                                           http://www.flaseia.org/ExecutiveOrderNumber05-241.pdf
                                                           Florida’s Energy Plan – 2006.
                                                           http://www.dep.state.fl.us/energy/energyact/files/2006_En
                                                           ergy_Plan.pdf
                                                        S, Executive Order 07-126.
                                                        EO http://www.flgov.com/pdfs/orders/07-126-actions.pdf
                                                           HB 7135, effective 7/1/08.
                                                           http://www.flsenate.gov/data/session/2008/House/bills/bill
                                                           text/pdf/h713503er.pdf




Recommendation 3: Miscellaneous Policies
         3.1.1 Public education programs on EE are          The FPSC undertakes a variety of EE education activities
         in place. (See Guide Tab for Y/N criteria.)        which are discussed in the FPSC’s most recent Annual
                                                            Report on Activities Pursuant to Florida Energy Efficiency
                                                            Act that summarizes EE activities for 2008. The annual
                                                            report includes an appendix that lists related web sites
                                                        Y   belonging to IOUs, state and federal entities to assist       Y
                                                            consumers in researching additional conservation
                                                            opportunities.



                                                            Annual Report on Activities Pursuant to Florida Energy
                                                            Efficiency Act, February, 2009.
                                                            http://www.psc.state.fl.us/publications/pdf/electricgas/FEE
                                                            CA2009.pdf
  3.1

         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.)



         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.

         75% of state access to ENERGY STAR
                                                        Y
  3.2    New Homes
         What proportion is due to regulated utility        Central Florida Gas (Chesapeake Utilities Corporation),
         program? (who is sponsor) Performance
         75% of state access to Home                        Florida Power & Light Company, Jacksonville Electric
         with ENERGY STAR?                              N

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


Recommendation 4: Promote sufficient, timely, and stable program funding to deliver energy efficiency where cost-effective.
         4.1.1 Cost recovery process exists
                                                            Annual recovery is allowed for approved cost-effective
                                                            EE expenses. The mechanism used is similar to a fuel
                                                            adjustment clause. Florida’s IOUs are permitted to
                                                            recover prudently incurred EE costs through a surcharge
                                                            on customers’ bills. The FPSC conducts Energy
                                                            Conservation Cost Recovery (ECCR) clause proceedings
                                                        Y   each November during which the FPSC determines the            Y
                                                            energy conservation cost recovery factor to be applied in
                                                            the upcoming year. In 2007, Florida’s IOUs recovered
                                                            over $235 million in conservation program expenditures
                                                            from ratepayers. The FPSC’s most recent FEECA
                                                            annual report provides a breakdown of DSM expenditures
                                                            recovered through the EECR clause over the past 10
  4.1                                                       years. (Page 16)
                                                            FEECA Rules, Chapter 25.17.0021.
                                                            http://www.flrules.org/gateway/ruleno.asp?id=25-
                                                            17.0021&Section=0                Annual Report on
                                                        A   Activities Pursuant to Florida Energy Efficiency Act,
                                                            February, 2009.
                                                            http://www.psc.state.fl.us/publications/pdf/electricgas/FEE
                                                            CA2009.pdf
         4.1.2 Recovery occurs via: (a) rider; (b)          See 4.1.1 above.
         regular rate case; or (c) system benefits
         charge

         4.1.3 Funding is for multi-year periods        N
         A base energy efficiency spending level                 Spending levels for energy conservation programs are
         exists, with opportunity to justify higher level        initially established when an IOU submits a program for
                                                                 FPSC approval. New spending levels are set for every
                                                                 approved program during the EE goals setting
                                                                 proceedings that occur every 5 years. Annually, each
                                                                 IOU submits for cost recovery in the ECCR clause
                                                             Y
                                                                 process, which includes a projection of costs for each
  4.2                                                            program in the upcoming year. Recently, FPL requested
                                                                 additional programs after the approval of its DSM filing,
                                                                 based on new need in its service area. The request was
                                                                 granted in Order PSC-06-0740-TRF-E in Docket 060408-
                                                                 E1.
                                                                 http://www.psc.state.fl.us/library/filings/06/08007-
                                                             R
                                                                 06/08007-06.pdf
         % of net (retail) utility revenue presently
         used for energy efficiency [no unit = %; m/k
  4.3    = mils/kWh]



         Funds from carbon trading program support               In 2007, the Governor issued three Executive Orders (07-
         EE                                                      126, 07-127 and 07-128) which related to climate change
                                                                 mitigation. See ACEEE summary of the scope of each of
                                                                 the Executive Orders and links to the text of each
                                                                 Executive Order. There were a variety of changes to EE
                                                                 laws in 2008 under HB 7135. One of the changes was a
                                                                 directive to the FPSC to consider the costs imposed by
                                                             N   state and federal regulations on the emission of GHG
                                                                 when establishing EE goals for Florida’s IOUs. This
                                                                 change is codified at 366.82 (3) (d)




  4.4                                                           ACEEE summary of Florida’s climate change mitigation
                                                                activities.
                                                                http://aceee.org/energy/state/florida/fl_climate.htm
                                                                HB 7135, effective 7/1/08.
                                                                http://www.flsenate.gov/data/session/2008/House/bills/bill
                                                                text/pdf/h713503er.pdf
                                                                FEECA statute. (Sections 366.80 through
                                                            EO, 366.85)http://www.leg.state.fl.us/Statutes/index.cfm?App
                                                             S _mode=Display_Statute&URL=Ch0366/titl0366.htm&Stat
                                                                uteYear=2008&Title=%2D%3E2008%2D%3EChapter%2
                                                                0366 (Section 403.519)
                                                                http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=
                                                                Display_Index&Title_Request=XXIX#TitleXXIX




Recommendation 5: Modify policies to align utility incentives with the delivery of cost-effective energy efficiency and modify ratemaking prac
         5.1.1 Utility throughput incentive is                   HB 7135, which was signed in June 2008, directed the
         addressed and disincentives are removed                 FPSC to analyze decoupling and submit a report to the
                                                                 Legislature and Governor before the end of the year. In
                                                                 December 2008, the FPSC submitted the required report.
                                                                 The report concluded that other actions already being
                                                             N
                                                                 undertaken by Florida are “already paving the path
                                                                 toward the objectives of decoupling without incurring the
                                                                 cost and difficulties associated with the design,
                                                                 implementation and maintenance of a specific decoupling
                                                                 mechanism.”
  5.1                                                            HB 7135, effective 7/1/08.
                                                                 http://www.flsenate.gov/data/session/2008/House/bills/bill
                                                                 text/pdf/h713503er.pdf
                                                             S   FPSC Report on Decoupling, December 2008.
                                                                 http://www.floridapsc.com/publications/pdf/electricgas/De
                                                                 couplingReport_To_Legislature.pdf
  5.1




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

         5.2.1 Utility/shareholder EE incentives are       In 2008, the Florida Legislature enacted HB 7135.
         provided                                          Among other things, HB 7135 authorizes the FPSC to
                                                           provide financial rewards and penalties for EE
                                                           performance and to allow IOUs to earn additional return
                                                        Y- on equity for exceeding EE and conservation goals.
                                                           Specifically, the FPSC may allow an IOU a 0.5% increase
                                                           in ROE for exceeding 20% of annual load growth through
                                                           energy efficiency measures (see section 366.82 (8) and
                                                           (9))
                                                           HB 7135, effective 7/1/08.
                                                           http://www.flsenate.gov/data/session/2008/House/bills/bill
  5.2                                                      text/pdf/h713503er.pdf
                                                           FEECA statute. (Sections 366.80 through
                                                           366.85)http://www.leg.state.fl.us/Statutes/index.cfm?App
                                                        S _mode=Display_Statute&URL=Ch0366/titl0366.htm&Stat
                                                           uteYear=2008&Title=%2D%3E2008%2D%3EChapter%2
                                                           0366 (Section 403.519)
                                                           http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=
                                                           Display_Index&Title_Request=XXIX#TitleXXIX

         5.2.2 Incentives exceed amount of lost
         revenues

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

   5.3   5.3.2 Declining block rates and fixed
         variable rate designs have been eliminated      N


         5.4.1 Time sensitive rates in place               See EEI summary of EE and demand response programs
                                                           which includes a summary of programs offered by four
                                                           Florida IOUs. FLP Energy offers incentive programs that
                                                           allow the utility to control certain loads for residential and
                                                           business customers during peak periods. (Page 18) Gulf
                                                        Y-
                                                           Power offers a program that connects heating and air
                                                           conditioning thermostat to real time pricing signals from a
                                                           smart meter. (Page 20) TECO offers two forms of
                                                           demand response programs. (Page 39)

                                                               EEI Highlights of EE and Demand Response Programs
                                                               for 2008.
  5.4
                                                               http://www.eei.org/industry_issues/retail_services_and_d
                                                               elivery/wise_energy_use/programs_and_incentives/progs
                                                               .pdf

         5.4.2 Usage sensitive rates in place           Y- See 5.4.1 above.

         5.4.3 AMI deployment planned                          Some of Florida's IOUs are moving ahead with the
                                                        Y-/P
                                                               installation of smart meters on a pilot basis.

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

State Fiscal Policy
         Sales Tax reduction or exemption for
  6.1    energy efficient products

         Investment Tax Credit for energy efficient
  6.2    investments

         State supported low cost financing for
         energy efficient investments: buildings (x),
         equipment (y)
  6.3
  6.3
         New or reorganized energy policy agency

Distributed Generation Policies
         A statewide interconnection policy is in         In March 2008 FL adopted interconnection standards that
         place                                            only apply to the state's IOUs. There is a standardized
                                                          interconnection agreement for renewable energy. There
                                                          are three tiers for interconnection - up to 10 kW; larger
                                                          than 10 kW but less than 100 kW; and greater than 100
                                                          kW up to 2 MW. Tier 1 applicants are not subject to
                                                          application fees, interconnection studies or liability
                                                          insurance. Utilities may require that applicants have proof
                                                          of general liability insurance of $1 million for Tier 2 and
                                                       Y+ $2 million for Tier 3 customers. An external disconnect
                                                          switch is not required for inverter-based Tier 1 systems,
                                                          but a utility may choose to install a disconnect switch for
   7.1                                                    a Tier 1 system at the utility's expense. Utilities are
                                                          authorized to require customers with Tier 2 and Tier 3
                                                          systems to install a disconnect switch at the customer's
                                                          expense. The PSC rules also include a mutual
                                                          indemnification provision.



                                                       R  25-6.065, F.A.C. can be accessed here,
                                                          http://www.dsireusa.org/documents/Incentives/FL20R.pdf
                                                          HB 7135 can be accessed here:
                                                          http://www.myfloridahouse.gov/Sections/Documents/load
                                                       O
                                                          doc.aspx?FileName=_h7135er.xml&DocumentType=Bill&
                                                          BillNumber=7135&Session=2008
         A statewide net metering policy is in place      Florida does not have a statewide net metering policy.
                                                          The FL PSC has been directed to initiate a rulemaking on
                                                          adopting uniform net metering rules that allow for
                                                          residential and commercial customers to net meter with
                                                          renewable systems up to 1 MW. The PSC issued a
                                                       N
                                                          Notice of Proposed Rule Development (NOPR) on
                                                          creating net metering standards on August 15, 2007,
   7.2
                                                          which can be accessed from here
                                                          http://www.floridapsc.com/library/filings/07/07197-07/8-
                                                          30%20net%20metering%20notice.rg.doc
                                                          Florida Power and Light Co, IOU - does not have a net
                                                       U-
                                                          metering policy
                                                          Progress Energy Florida Inc, IOU - does not have a net
                                                       U-
                                                          metering policy
         A statewide exit fee policy is in place
                                                       N   Florida does not have a statewide policy on exit fees. DG
   7.3
                                                           units should be exempt from such fees in the state.

         A statewide standby rate policy is in place
                                                       N
                                                          Florida does not have a statewide policy on standby rates
                                                          Progress Energy Florida Inc - Rate SS-1, SS-2, and SS-3
                                                          - standby service is available by contract to firm,
                                                          interruptible, and curtailable demand capacity. Service is
                                                          charged at a balanced rate between demand and energy
                                                          charges. Billing demand is based on the greater of the
                                                       U-
                                                          maximum 30 minute demand of the month or the
                                                          maximum demand established in the previous 23
                                                          months. Rate available at: http://www.progress-
   7.4                                                    energy.com/aboutenergy/rates/index.asp#b3

                                                          Florida Power & Light Company - Rate SST-1 - Standby
                                                          service is provided to customers that contract with the
                                                          utility for a specific contract standby demand. Charges
                                                          are based on a reservation fee according to the contract
                                                       U- demand with a 23 month ratchet. Further demand and
                                                          energy charges based on actual usage. Billing demand
                                                          is based on the maximum 30 minute demand of the
                                                          month with no ratchet. Rate available at:
                                                          http://www.fpl.com/rates/
      As part of resource planning process, CHP       Section 366.82 of the Florida Statutes outline
      is reviewed and incorporated where              requirements for the state's IPR process referred to as
      effective                                       Ten-Year Site Plans. The Commission will adopt
                                                      appropriate goals for increasing the efficiency of energy
                                                      consumption and the development of demand-side
                                                      renewable energy systems. The goals must be reviewed
                                                      at least once every five years. Each utility must develop
                                                      plans and programs to meet the overall goals within its
                                                      service area. New goals are expected to be set in 2009
                                                  N   and should be reflected in the Utilities 2010 Ten-Year
                                                      Site Plans. In 2008, HB 7135 was signed into law by the
                                                      Governor. The bill states that utilities must develop plans
                                                      and implement programs for increasing energy efficiency,
                                                      conservation, and DSM. The bill also states that the use
                                                      of cogeneration is encouraged. No dockets have been
                                                      opened as of the end of 2008 to incorporate the
7.5                                                   requirements of HB 7135 in the Ten-Year Site Planning
                                                      process.

                                                        http://www.leg.state.fl.us/STATUTES/index.cfm?App_mo
                                                        de=Display_Statute&Search_String=&URL=Ch0366/SEC
                                                   S, A 82.HTM&Title=->2008->Ch0366-
                                                        >Section%2082#0366.82 and
                                                        http://laws.flrules.org/files/Ch_2008-227.pdf
                                                        Progress Energy FL's DSM plan is outlined in the
                                                        following presentation, CHP is not specifically mentioned.
                                                    U-
                                                        Progress Energy is expected to release an updated DSM
                                                        plan in 2009.
         http://www.floridaenergycommission.gov/UserContent/docs/File/Progress%20Energy.ppt#256,1,Demand Side Management: Past, Present, Future
                                                        Florida Power and Light Company released its 10-yr
                                                    U Power Plant Site Plan, to cover the years 2008-2017, in
                                                        the spring of 2008.
                          https://www.frcc.com/Planning/Shared%20Documents/Ten%20Year%20Site%20Plans/2008/2008_TYSP_FPL.pdf
                    Natural Gas




Section 366.82 (1)(a) defines "utility" to include Ious and
local gas distribution companies (LDCs). The remainder
of section 366.82 refers to "utilities" and makes no
distinction beterrn IOUs and LDCs. Section 366.81
articulates legislative findings and intent regarding EE.
Ang other things, section 366.81 states that "The
Legislature firther finds that the Florida Publixc Service
Commission is the appropriate agency to adopt goals and
apoprove plans related to the promotion of demand side-
renewable energy systems and conservation for electric
energy and natural gas usage." However, the 5-year goal
setting requirement discussed in the text for 1.2.1 relating
to electric utilities is governed by Chapter 25-17.0021 of
the FPSC's rules and Chapter 25-17.0021 is explicitly
limited to electric utilities.




FEECA statute. (Sections 366.80 through
366.85)http://www.leg.state.fl.us/Statutes/index.cfm?App_
mode=Display_Statute&URL=Ch0366/titl0366.htm&Statut
eYear=2008&Title=%2D%3E2008%2D%3EChapter%203
66 (Section 403.519)
http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=
Display_Index&Title_Request=XXIX#TitleXXIX
Rules 25-17.001 through 25.17.015 FCA.
https://www.flrules.org/gateway/ChapterHome.asp?Chapt
er=25-17
gy efficiency as a resource
              1980 Florida Energy Efficiency and Conservation Act
              required some utilities to adopt cost-effective EE
              programs. The legislative intent underlying FEECA is
              codified at section 366.81. Section 366.81 alludes to the
              need for EE but does not include a specific commitment
              to it.




              FEECA statute. (Sections 366.80 through 366.85)
              http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=
              Display_Statute&URL=Ch0366/titl0366.htm&StatuteYear=
              2008&Title=%2D%3E2008%2D%3EChapter%20366
              (Section 403.519)
              http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=
              Display_Index&Title_Request=XXIX#TitleXXIX
              Section 366.82, FS, requires IOU conservation programs
              to be cost-effective. Florida Rule 25-17.009 F.A.C.
              establishes the applicable cost effectiveness tests used to
              evaluate proposed plans, programs, and program
              modifications. Under the current rules, in order to obtain
              recovery, a utility must provide a cost effectiveness
              analysis of each program using three tests: a Participant
              test, a Ratepayer Impact Measure (RIM) and the Total
              Resource Cost (TRC) test. The features of each of these
              tests are summarized in the FPSC’s most recent FEECA
              annual report (page 12). According to this report, the
              FPSC’s traditional policy has been to set goals for utilities
              based on measures that pass both the Participant and
              RIM tests. In addition, the FPSC encourages utilities to
              evaluate implementation of TRC measures when it is
              found that the savings are large and the rate impacts are
              small. Section 366.82 was amended in 2008 to allow the
              FPSC more flexibility when evaluating cost effectiveness
              of utility DSM goals. (HB 7135). As discussed under 1.2.1
              above, the FPSC must set new DSM goals for IOUs by
              January 2010. As part of this new goal setting process,
              the FPSC has begun conducting a series of workshops
FPSC Annual Report on Activities Pursuant to Florida
Energy Efficiency and Conservation Act, February, 2009.
http://www.psc.state.fl.us/publications/pdf/electricgas/FEE
CA2009.pdf
FEECA statute. (Sections 366.80 through
366.85)http://www.leg.state.fl.us/Statutes/index.cfm?App_
mode=Display_Statute&URL=Ch0366/titl0366.htm&Statut
eYear=2008&Title=%2D%3E2008%2D%3EChapter%203
66 (Section 403.519)
http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=
Display_Index&Title_Request=XXIX#TitleXXIX
Rule 25-17.008.
https://www.flrules.org/gateway/readFile.asp?sid=0&tid=1
480140&type=1&File=25-17.008.docApril




Rule 25-17.008.
https://www.flrules.org/gateway/readFile.asp?sid=0&tid=1
480140&type=1&File=25-17.008.docApril




Programs offered by Florida utilities are summarized at
the gas conservation web site listed below.
Gas Conservation web site.
http://www.getgasfl.com/Home/EnergyConservationProgra
m/tabid/433/Default.aspx
               The FPSC undertakes a variety of EE education activities
               which are discussed in the FPSC’s most recent Annual
               Report on Activities Pursuant to Florida Energy Efficiency
               Act that summarizes EE activities for 2008. The annual
               report includes an appendix that lists related web sites
               belonging to LDCs, state and federal entities to assist
               consumers in researching additional conservation
               opportunities.



               Annual Report on Activities Pursuant to Florida Energy
               Efficiency Act, February, 2009.
               http://www.psc.state.fl.us/publications/pdf/electricgas/FEE
               CA2009.pdf




y efficiency where cost-effective.




               Florida’s LDC’s are permitted to recover conservation
               costs through the Energy Conservation Cost Recovery
               (ECCR) clause.



               Annual Report on Activities Pursuant to Florida Energy
               Efficiency Act, February, 2009.
               http://www.psc.state.fl.us/publications/pdf/electricgas/FEE
               CA2009.pdf
               See 4.1.1 above.
e energy efficiency and modify ratemaking practices to
                                                               GEORGIA
                                                                 Electric
Recommendation 1: Recognize energy efficiency as a high priority energy resource.
         EE is established as a high priority resource,
         equivalent or superior to supply resources




                                                          N
  1.1




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




                                                          Y-




                                                          S



  1.2
                                                          A




                                                          A




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


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




  1.3
                                                       R




                                                       A


        1.4.1 EE is a biddable commodity               N

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


        State Implementation Plans (SIPs) include
  1.5   EE set-asides

Recommendation 2: Make a strong, long-term commitment to implement cost-effective energy efficiency
        Efficiency commitment is in statute




                                                       Y-
  2.1



                                                       S
                                                   N




2.2




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




                                                   A




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




                                                   Y




2.3
      2.3.2 Established EE programs reach all
      customer classes                                 N




      Funding requirements for all long-term, cost-
      effective EE have been established
                                                       N
2.4

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

2.5   2.5.3 Energy Efficiency can be used to fulfill
      requirements of an RPS or similar standard       N


      2.5.4 Expected Capacity Savings (Annual
      MW in 2006)

      2.5.5 Energy Savings (Annual MWh in
      2006)

      2.6.1 A robust M&V process has been
      established

                                                       N




      2.6.1.1   M&V is adequately funded


      2.6.1.2 Energy savings are used to
      measure performance
2.6
      2.6.1.3 M&V is done according to a
      defined schedule

      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

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




       2.7.1 EE delivery structure has been
       established
                                                         N


2.7
       2.7.2 Delivery is via: (a) utility
       administration; (b) third-party administration;
       or (c) government agency

       Resource plans are regularly updated
                                                         Y
2.8
                                                         S
       2.9.1 Building Energy Codes for residential
       buildings are in place and regularly updated

                                                         Y/Y




2.9
       2.9.2 Building Energy Codes for
       commercial buildings are in place and
       regularly updated
                                                         Y/Y




       Appliance and Equipment Efficiency
       Standards are in place and regularly
       updated                                           N
2.10
        Energy efficiency is a high priority in state
        buildings and state funded buildings as
        evidenced in capital planning and enabling
        performance contracts




                                                        Y




 2.11




Recommendation 3: Miscellaneous Policies
        3.1.1 Public education programs on EE are
        in place. (See Guide Tab for Y/N criteria.)
                                                        Y




        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.)                                  Y
  3.1

        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.

        75% of state access to ENERGY STAR New
                                                        Y
        Homes
  3.2
  3.2    What proportion is due to regulated utility
         program? (who is sponsor)
         75% of state access to Home Performance
         with ENERGY STAR?                                  N

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


Recommendation 4: Promote sufficient, timely, and stable program funding to deliver energy efficiency w
         4.1.1 Cost recovery process exists



                                                            Y




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



                                                            S

                                                            A
         4.1.3 Funding is for multi-year periods

         A base energy efficiency spending level
  4.2    exists, with opportunity to justify higher level
         % of net (retail) utility revenue presently
         used for energy efficiency [no unit = %; m/k
  4.3    = mils/kWh]



         Funds from carbon trading program support
  4.4
Recommendation 5: Modify policies to align utility incentives with the delivery of cost-effective energy effi
      5.1.1 Utility throughput incentive is
      addressed and disincentives are removed




                                                    Y-




                                                    S
5.1




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

      5.2.1 Utility/shareholder EE incentives are
      provided

                                                    Y-

5.2


      5.2.2 Incentives exceed amount of lost
      revenues

      5.3.1 Impact on EE is a consideration when
      designing retail rates

5.3   5.3.2 Declining block rates and fixed
      variable rate designs have been eliminated
         5.4.1 Time sensitive rates in place



                                                        Y-




  5.4
         5.4.2 Usage sensitive rates in place

         5.4.3 AMI deployment planned
                                                        Y/C




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

State Fiscal Policy
         Sales Tax reduction or exemption for energy
         efficient products




  6.1


                                                        S


         Investment Tax Credit for energy efficient
  6.2    investments

         State supported low cost financing for
         energy efficient investments: buildings (x),
         equipment (y)
  6.3
         New or reorganized energy policy agency

Distributed Generation Policies
      A statewide interconnection policy is in place




                                                       Y-
7.1




                                                       S

      A statewide net metering policy is in place




                                                       Y-

7.2




                                                       S


      A statewide exit fee policy is in place
7.3
      A statewide standby rate policy is in place
                                                       N




7.4
                                                       U-
      As part of resource planning process, CHP
      is reviewed and incorporated where effective



                                                     Y




7.5

                                                     A




                                                     U+
                           GEORGIA
                              Electric                                                 Natural Gas
fficiency as a high priority energy resource.
           The Governor's Energy Policy Council published a
           State Energy Policy Strategy that expresses
           support for pursuing "all cost-effective energy
           efficiency" and discusses development of
           establishing voluntary Energy Efficiency Targets
           (EETs). The Strategy also recommends that the
           PSC look into "alternative utility regulation" and
           ensure that electric utilities are allowed to earn a
           return on investments in efficiency. There are no
           requirements inplace that place EE as a first-
           priority resource.
           http://www.seealliance.org/documents/STATEENE
           RGYSTRATEGYFINAL121406_000.pdf
           SUMMARY: IRP requirements are established in               Gas supply plans must be filed annually and include
           both statute and rules. Both require IRPs to include       the impact of any applicable IRP on the supply plan,
           analysis of all capacity resource options, including       but generally gas utilities are not required to file
           both supply and demand side options. Rules                 IRPs. See Georgia Rules 515-7-2-.04
           require that all capacity options be considered on a
           "fair and consistent basis." Heavy relainace on RIM
           has historically limited the number of programs        N
           approved by Georgia Public Service Commission
           (PSC). See Georgia Rules 515-3-4-.02 for
           definition of IRP and Georgia Rules 515-3-4-.05 for
           IRP requirements.



           Georgia Code § 46-3A-1 addressed IRP                       http://rules.sos.state.ga.us/docs/515/7/2/04.pdf
           requirements. See http://www.lexis-                    A
           nexis.com/hottopics/gacode/default.asp
           See Georgia Rules Chapter 515-3-4-.01 through
           515-3-4-.12. http://rules.sos.state.ga.us/cgi-
           bin/page.cgi?g=GEORGIA_PUBLIC_SERVICE_C
           OMMISSION%2FGENERAL_RULES%2FINTEGR
           ATED_RESOURCE_PLANNING%2Findex.html&d
           =1
           Rules require that all capacity options be
           considered on a "fair and consistent basis". See
           Georgia Rules 515-3-4-.05 at
           http://rules.sos.state.ga.us/docs/515/3/4/05.pdf
           Docket No. 24505 and 24506 deal with Georgia
           Power's most recent IRP filing. The IRP was
           approved in July 2007, and includes an expansion
           of DSM programs.
           http://www.psc.state.ga.us/facts/docftp.asp?txtdoc
           name=104010
           A Working Group has been established to address
           IRP-related issues. Commission staff have
           proposed pilot programs to use non-wires
           solutions to transmission constraints in the current N/A
           (2007) IRP cycle. See DSM Working Group notes
           from2/21/06. However, stafff recommendations
           were not adopted.


           DSM Working Group notes from2/21/06 at
           ftp://www.psc.state.ga.us/Dockets/17687/94000.pd
           f.


           Georgia Rules 515-3-4-.04 contain IRP
           requirements related to transmission planning. See
           http://rules.sos.state.ga.us/docs/515/3/4/04.pdf




-term commitment to implement cost-effective energy efficiency as a resource
           A 1989 statute declares that an "active program of          A 1989 statute declares that an "active program of
           energy conservation assistance" is required for             energy conservation assistance" is required for
           residential customers. The statute creates a state          residential customers. The statute creates a state
           plan for Residential Conservation Service, which            plan for Residential Conservation Service, which
           requires certain electric and gas utilities to offer   Y-   requires certain electric and gas utilities to offer
           home energy audits and related services.                    home energy audits and related services.
           Administration of this program is done by the               Administration of this program is done by the Office
           Office of Planning and Budget. See Georgia Code             of Planning and Budget. See Georgia Code § 46-4A-
           § 46-4A-2.                                                  2.
           http://www.lexis-                                           http://www.lexis-
                                                                  S
           nexis.com/hottopics/gacode/default.asp                      nexis.com/hottopics/gacode/default.asp
The TRC and Societal Cost test are "eligible" for
use, but through 2004, all EE programs were
required to pass the RIM test. A 2005 Order may
allow the TRC test to be used in some instances
but it has not been yet. See Georgia Rules 515-3-4-
.02 for definition of all tests eligible for use in
evaluating demand-side programs in the IRP
process. On July 13, 2007, the PSC approved the
IRP for Georgoia Power Co.in Dcoket No. 24505-
U. In that Order, the PSC directed the DSM
Workgroup to reconvene to address several
questions to the way the RIM test was applied in
the 2007 IRP process and how it should be applied
in the future. The DSM Working Group met five
times between August 29, 2007 and May 9, 2008
and filed a report with the PSC on May 30, 2008,
The May 30th report discusses various cost
effectiveness tests and proposes a new DSM
analysis process for use in the development of
new DSM initiatives for the 2010 IRP.



Georgia Rules 515-3-.02.
http://rules.sos.state.ga.us/docs/515/3/4/02.pdf
DSM Working Group report 05 30 08.
http://www.psc.state.ga.us/facts/docftp.asp?txtdoc
name=112194                                 DSM
Working Group report dated 05 30 08.
http://www.psc.state.ga.us/facts/docftp.asp?txtdoc
name=112194
The PSC in Docket No. 22449-U issued a June 22,
2006 accounting Order that requires Georgia
Power Company’s 2007 IRP filing to include an
assessment of the maximum achievable cost-
effective potential for energy efficiency programs in
its service area. The study was released in March
2007. See also the May 5, 2005 Georgia
Environmental Facilities Authority Final Report on
Assessment of Energy Efficiency Potential in
Georgia.


See the PSC site for docket documents
http://www.psc.state.ga.us/                   See
this site for the Georgia Power public disclosure
version of the March 2007 study
http://www.seealliance.org/documents/GAIRPTech
GAPowerPotentialStudy_052007.pdf
                                                     N




                                                     N




M&V was discussed briefly in a report submitted by
IFC Consuting to the Georgia Environmental
Facilities Authority entitled "Strategies for
Capturing Georgia's Energy Efficiency Potential"
and dated May 5, 2005. (See pages 21-22.)

A PDF version of the May 5, 2005 report can be
found at
http://www.gefa.org/Index.aspx?page=192#a4.
IRPs must be filed every three years. See Georgia           Resource plans are filed annually. See Georgia
Code § 46-3A-2                                          Y   Rules 515-7-2-.04.
http://www.lexis-                                           http://rules.sos.state.ga.us/docs/515/7/2/04.pdf
                                                        R
nexis.com/hottopics/gacode/default.asp
2006 IECC with state amendments, mandatory
statewide, can use REScheck to show compliance.
New editions of codes are reviewed as soon as
practiicable after publication. Supplements and
amendments are updated annually. See BCAP
summary for Georgia for additional details.


BCAP summary for Georgia. http://bcap-
energy.org/node/63

ASHRAE 90.1-2004, mandatory statewide; can
use COMcheck to show compliance. New editions
of codes are reviewed as soon as practiicable after
publication. Supplements and amendments are
updated annually. See BCAP summary for
Georgia for additional details.
BCAP summary for Georgia. http://bcap-
energy.org/node/63
Many of Georgia's Electric Membership
Corporation cooperatives offer rebates for the
installation of certain energy efficient applicances,
but appliance standards are not in place..
     The State Energy Plan, issued in 2006 contains a
     number of provisions to encourage energy
     efficiency in state buildings. An Executive Order
     issued in 2006 established a new agency to help
     state facilities become more energy efficient. The
     Georgia Environmental Facilities Authority, Division
     of Energy Resources has developed a "State
     Utilities Program" to support state facility
     managers and administrators regarding energy
     procurement and management. See link below for
     a summary of the State Utilities Program. The
     Governor has also issued an "Energy Challenge"
     which commits all state agencies to reduce energy
     consumption in state facilities to 15% below FY
     2007 levels by 2020.
     2006 State Energy Plan.
     http://www.georgiaenergyplan.org/suppmat/STATE
     _ENERGY_STRATEGY_FINAL_12_14_06.pdf
     2006 Executive Order.
     http://www.gov.state.ga.us/ExOrders/02_28_06_01
     .pdf                                         State
     Utilities Program.
     http://www.gefa.org/Index.aspx?page=134
     Governor's Energy Challenge.
     http://www.gefa.org/index.aspx?page=385

es
     Georgia Power is in the process of implementing
     some EE pilot programs that include a consumer
     awareness campaignto help educate customers.




     As discussed in 2.2 above, a DSM Workin Group
     has been convened to address several questions
     relating to cost effectivenss tests and a DSM
     analysis process. The DSM Working Group
     submitted a report to the PSC on My 30, 2008 in
     Docket No. 24505-U.
     DSM Working Group report dated 05 30 08.
     http://www.psc.state.ga.us/facts/docftp.asp?txtdoc
     name=112194
           Georgia Power Company, Cobb Electric
           Membership Corporation, Colquitt EMC




imely, and stable program funding to deliver energy efficiency where cost-effective.
           See below. The Governor's Energy Policy Council
           published a State Energy Policy Strategy in 2006
           which recommended establishing a Georgia Clean
           Energy Fund, perhaps with a system benefits
           charge. The PSC indicated that it would take up
           the issue of cost recovery for newly approved
           programs in Georgia Power's current rate case.

           http://www.seealliance.org/documents/STATEENE
           RGYSTRATEGYFINAL121406_000.pdf
           Recovery is done in rate cases, with an "additional
           sum" awarded by the PSC to encourage
           development of conservation resources.
           Regulatory and statutory provisions are the same.
           See Georgia Code § 46-3A-9 and Georgia Rules
           515-3-4-.11.
           Section 46-3A-9. http://www.lexis-
           nexis.com/hottopics/gacode/default.asp
           Rule 515.3-4-.11.
           http://rules.sos.state.ga.us/docs/515/3/4/11.pdf




gn utility incentives with the delivery of cost-effective energy efficiency and modify ratemaking
SUMMARY: Recommendations from the
Governor's Energy Policy Council include
consideration of methods to address disincentives.
Currently, disincentives are addressed by an
"additional sum" above energy efficiency costs that
may be awarded by the Commission. Exact
amount is determined by Commission on a case-
by-case basis, but lost revenues may be taken into
consideration. Regulatory and statutory language
is identical. See Georgia Code § 46-3A-9 and
Georgia Rules 515-3-4-.11.

Statutory provisions re: the "additional sum" are in
Georgia Code § 46-3A-9 at http://www.lexis-
nexis.com/hottopics/gacode/default.asp
The Governor's Energy Policy Council published a
State Energy Policy Strategy which recommends
that the PSC look into "alternative utility
regulation", identify disincentives to investment in
energy efficiency, and ensure that electric utilities
are allowed to earn a return on investments in
efficiency.
http://www.seealliance.org/documents/STATEENE
RGYSTRATEGYFINAL121406_000.pdf
Regulatory provisions re: the "additional sum" are
in Georgia Rules 515-3-4-.11 at
http://rules.sos.state.ga.us/docs/515/3/4/11.pdf

See Section 5.1.1 above. For Georgia Power's
Power Credit Single Family Program, Georgia
Power earns an additional sum of 15% of the net
present value of the net benefits resulting from the
program, but only if the program achieves at least
50% of the projected participation levels.
Georgia Power has utilized RTP for over ten years
for some customers. Georgia Power has also
adopted Demand Plus Energy Credit and TOU
rates for certain customers. The PSC pproved a
one year residential critical peak pricing pilot for
Georgia Power b y Order issued on December 30,
2007 in Docket No.25060-U. The pilot is limited to
the first 1,000 customers who have AMI.

Deceber 30, 2007 Order.
http://www.psc.state.ga.us/facts/docftp.asp?txtdoc
name=108457


Georgia Power began installing smart meters in
January 2008 with a target of installing more than
400,000 smart meters by the end of 2008.
Georgia Power smart meters.
http://www.georgiapower.com/residential/smartmet
er.asp




The Georgia Lagislature enacted a 4-day sales tax
exemption of energy efficient products effective
May 12, 2008. See DSIRE link for details. HB 670
was enacted in 2008 to provide tax credits for
clean energy property. HB 670 is codified at Code
Section 48-7-29.14.
DSIRE link summarizing sales tax exemption.
http://www.dsireusa.org/incentives/incentive.cfm?I
ncentive_Code=GA05F&re=1&ee=1                Code
Section 48-7-29.14. http://www.lexis-
nexis.com/hottopics/gacode/default.asp
Georgia has interconnection standards, The
Georgia Cogeneration and Distributed Generation
Act of 2001 § 46-3-56, but only for PV, wind or fuel
cells with a maximum capacity of 10 kW for
residential systems and 100 kW for commercial. A
utility is not required to enroll customers beyond
0.2% of its peak load for the previous year.
Customers wishing to interconnect must comply
with all national standards - IEEE, UL, and NEC.
An external disconnect is not required. Also,
utilities cannot require extra tests or liability
insurance.
§ 46-3-56 can be accessed here,
http://www.dsireusa.org/documents/Incentives/GA
04R.htm
Georgia has statewide net metering regulations
under O.C.G. § 46-3-50 et seq. Net metering is
available to PV, wind, and fuel cells and residential
systems must be 10 kW or less and the limit is 100
kW for commercial systems. All utilities must
provide net metering and net excess generation
(NEG) is credited to the customer's next bill; and
granted to the utility at the end of a 12-month
billing period. Overall enrollment is limited to 0.2%
of a utility's annual peak demand during the
previous year.
O.C.G. § 46-3-50 et seq. can be accessed from
here,
http://www.dsireusa.org/documents/Incentives/GA
02R.htm


Georgia does not have a statewide policy on
standby rates
Georgia Power Co - Schedule BU-6 - standby
service is provided only to QFs or customers with
generation that operates at least 6,000 hours a
year. The standby rate is primarily demand based
with energy charges based on a declining block
schedule. Billing demand is based on the
maximum 30 minute demand of the month with no
ratchet. Rate available at:
http://www.georgiapower.com/pricing/gpc_rates.as
p
See Georgia Rules 515-3-4-.02 for definition of
IRP and Georgia Rules 515-3-4-.05 for IRP
requirements. The GA IRP definition states that "In
IRP, all
resources reasonably available to reliably meet
future energy service demands are
considered by the utility on a fair and consistent
basis." Cogeneration is listed as an option to be
considered in under the IRP process. GA Power
Co must file IRPs with the PSC every 3 years.
http://rules.sos.state.ga.us/cgi-
bin/page.cgi?g=GEORGIA_PUBLIC_SERVICE_C
OMMISSION%2FGENERAL_RULES%2FINTEGR
ATED_RESOURCE_PLANNING%2Findex.html&d
=1
Georgia Power filed its IRP with the PSC in 2007.
The IRP is found in Docket #24505, document
number 99381, CHP is reviewed and incorporated
where effective.
                                                                          LOUISIANA
                                                                               Electric
Recommendation 1: Recognize energy efficiency as a high priority energy resource.
         EE is established as a high priority resource,       Title 45 of the Louisiana Revised Statutes
         equivalent or superior to supply resources           governs public utilities. EE is not specifically
                                                              addressed in Title 45. Nor is it addressed in
                                                          N
  1.1                                                         the rules of the Louisiana Pubic Service
                                                              Commission (PSC).


         1.2.1 EE is integrated into an active IRP,           Louisiana has no IRP.
         portfolio management, or other planning          N
         process
  1.2    1.2.2 Efficiency is procured as a resource
         for default service/standard offer customers     N


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

         1.4.1 EE is a biddable commodity                 N

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


         State Implementation Plans (SIPs) include
  1.5    EE set-asides

Recommendation 2: Make a strong, long-term commitment to implement cost-effective energy efficiency
         Efficiency commitment is in statute                  As noted in 1.1 above, EE is not specifically
                                                          N   addressed in Louisiana statute.
  2.1

                                                              Louisiana has no EE programs for utility
         The TRC or Societal Cost Test is used to         N   customers. Consequently, it has not
  2.2    evaluate EE programs                                 established a cost benefit test for program
                                                              evaluation.

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




  2.3
      2.3.2 Established EE programs reach all              Louisiana has no EE programs for utility
      customer classes                                     customers. Some of the state's IOUs
                                                           provide some information to customers on
2.3                                                    N   ways to reduce their energy use and costs
                                                           through EE and conservation. For example,
                                                           see the URL to the Entergy EE site below.


                                                           Entergy EE site. http://www.entergy-
                                                           louisiana.com/your_home/Ensight.aspx


      Funding requirements for all long-term, cost-
      effective EE have been established
                                                       N
2.4

      2.5.1 Quantitative MW and MWh savings
      goals have been established and are              N
      producing incremental investment.
      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        N
      part of program approval and budget-setting
      process; (d) other

      2.5.3 Energy Efficiency can be used to fulfill       The PSC conducted an RPS study I n 2005
      requirements of an RPS or similar standard           and chose not to adopt an RPS because of
                                                           cost and insufficient local renewable
                                                           resource availability. The PSC decided
                                                           instead to adopt a Green Pricing Tariff as the
                                                           best way to promote renewable resource
                                                           policy in Louisiana. In December 2007, the
2.5                                                    N   Technical Assessment Division (Louisiana's
                                                           Energy Office) of the Louisiana Department
                                                           of Natural Resources issued a report entitled
                                                           "Louisiana Electric Generation - 2007
                                                           Update." The RSP history in Louisiana is
                                                           discussed in that report at pages 2 through
                                                           4.

                                                           LA Electric Generation – 2007 Update.
                                                           http://dnr.louisiana.gov/sec/execdiv/techasmt
                                                           /electricity/electric_generation_20071228.pdf

      2.5.4 Expected Capacity Savings (Annual
      MW in 2006)

      2.5.5 Energy Savings (Annual MWh in
      2006)
      2.6.1 A robust M&V process has been                   Louisiana has no EE programs for utility
      established                                           customers. Consequently, Louisiana hasn't
                                                        N   established an M&V process.



      2.6.1.1   M&V is adequately funded


      2.6.1.2 Energy savings are used to
      measure performance

      2.6.1.3 M&V is done according to a
2.6   defined schedule

      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

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




      2.7.1 EE delivery structure has been                  Louisiana has no EE programs for utility
      established                                           customers, so no delivery structure has been
                                                        N   established.


2.7
      2.7.2 Delivery is via: (a) utility                    See 2.7.1 above.
      administration; (b) third-party administration;
      or (c) government agency

      Resource plans are regularly updated
                                                        N
2.8

      2.9.1 Building Energy Codes for residential           2006 IRC mandatory statewide. Chapter 11
      buildings are in place and regularly updated          or the IRC provides energy conservation
                                                            standards. Can use REScheck to show
                                                        Y/Y compliance. Beginning in January 2007,
                                                            codes are updated every 3 years. The last
                                                            update was effective on June 22, 2007. See
                                                            BCAP summary for additional details.
                                                            BCAP summary. http://bcap-
                                                            energy.org/node/71
2.9
  2.9   2.9.2 Building Energy Codes for                     ASHRAE/IESNA 90.1-2004, and 2006 IECC
        commercial buildings are in place and               for buildinigs not covered by ASHRAE,
        regularly updated                                   mandatory statewide; can use COMcheck to
                                                            show compliance. Beginning in January
                                                        Y/Y 2007, codes are updated every 3 years. The
                                                            last update was effective on June 22, 2007.
                                                            See BCAP summary for additional details.

                                                            BCAP summary. http://bcap-
                                                            energy.org/node/71
        Appliance and Equipment Efficiency
        Standards are in place and regularly            N
 2.10   updated

        Energy efficiency is a high priority in state
        buildings and state funded buildings as
        evidenced in capital planning and enabling         Louisiana enacted leislation in 2007 (codified
        performance contracts                              at LA R.S. Title 40, section 1730.49) that
                                                           requires EE measure to be incorporated into
                                                           construction projects funded by the state. In
                                                           addition, Executrive Order BJ 2008-8
                                                         Y required the Division of Administration, in
                                                           consultation with state agencies, to set EE
                                                           goals for state facilities by July 30, 2008. LA
                                                           R.S. Title 39, section 1496.1 governs
                                                           performance-based EE contracts for state
                                                           facilities. See URL below for link to site
                                                           relating to EE in state buildings.
 2.11                                                      LA R.S. Title 40, section 1730.49.
                                                           http://legis.state.la.us/lss/lss.asp?doc=45280
                                                           4                                   Executive
                                                           Order BJ 2008-8.
                                                           http://www.gov.state.la.us/assets/docs/Offici
                                                           alDocuments/2008EOGreenGovernment.pdf
                                                         S LA R.S. Title 39 section 1496.1.
                                                        EO http://legis.state.la.us/lss/lss.asp?doc=95975
                                                           EE in state buildings.
                                                           http://dnr.louisiana.gov/sec/execdiv/techasmt
                                                           /energy_efficiency/statebuildings.htm




Recommendation 3: Miscellaneous Policies
      3.1.1 Public education programs on EE are          Louisiana has no EE programs for utility
      in place. (See Guide Tab for Y/N criteria.)        customers, so no education program for EE
                                                         programs is in place. The Technical
                                                         Assessment Division (Louisiana's Energy
                                                         Office) of the Louisiana Department of
                                                         Natural Resources maintains an EE
                                                         education web site. The Louisiana PSC also
                                                     N   provides information about EE at various
                                                         places on the PSC web site. For instance,
                                                         the PSC has a site on energy savings tips.
                                                         The PSC also conducts a "Distinguished
                                                         Speakers Series" which includes
                                                         presenations on EE. Finally, the PSC has a
                                                         FAQ site that includes EE related topics.


                                                         Energy Office education summary.
                                                         http://dnr.louisiana.gov/sec/execdiv/techasmt
                                                         /educational_resources/index.htm
                                                         PSC web site for EE tips.
                                                         http://www.lpsc.org/consumernews.asp
                                                         PSC speakers series.
                                                         http://www.lpsc.org/speakerseries.asp
                                                         PSC FAQ.
                                                         http://www.lpsc.org/mainconsumerfaq.asp

      3.1.2 Process is in place, such as a state         Louisiana has no EE programs for utility
      or regional collaborative, to pursue EE as a       customers. There is no stakeholder or
3.1   high-priority resource. (See Guide Tab for         collaborative process in place to discuss EE
      Y/N criteria.)                                     program development or determining the
                                                         best use of efficiency or sustainable energy
                                                         funds.
                                                     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.

         75% of state access to ENERGY STAR New
                                                            Y
         Homes
  3.2    What proportion is due to regulated utility            Southwestern Electric Power Company
         program? (who is sponsor)
         75% of state access to Home Performance
         with ENERGY STAR?                                  N

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


Recommendation 4: Promote sufficient, timely, and stable program funding to deliver energy efficiency w
         4.1.1 Cost recovery process exists                     Louisiana has no EE programs for utility
                                                                customers and there was no reported
                                                            N   spending on EE programs by Louisiana
                                                                utilities. Consequently there is no cost
                                                                recovery process in place at this time.
  4.1    4.1.2 Recovery occurs via: (a) rider; (b)              See 4.1.1 above.
         regular rate case; or (c) system benefits
         charge

         4.1.3 Funding is for multi-year periods

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

  4.2



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



         Funds from carbon trading program support
  4.4
Recommendation 5: Modify policies to align utility incentives with the delivery of cost-effective energy effi
         5.1.1 Utility throughput incentive is
                                                            N
         addressed and disincentives are removed

  5.1    5.1.2 Method used is: (a) decoupling; (b)
         lost revenue recovery; or (c) non-utility
         implementaion of EE
         5.2.1 Utility/shareholder EE incentives are
                                                        N
         provided
  5.2    5.2.2 Incentives exceed amount of lost
         revenues

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

   5.3   5.3.2 Declining block rates and fixed
         variable rate designs have been eliminated     N


         5.4.1 Time sensitive rates in place

         5.4.2 Usage sensitive rates in place

  5.4    5.4.3 AMI deployment planned

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

State Fiscal Policy
         Sales Tax reduction or exemption for energy
                                                        N
  6.1    efficient products

         Investment Tax Credit for energy efficient
                                                        N
  6.2    investments

         State supported low cost financing for
         energy efficient investments: buildings (x),   x,y
         equipment (y)                                        See 2.11 above.
  6.3
         New or reorganized energy policy agency

Distributed Generation Policies
      A statewide interconnection policy is in place      Louisiana has rules for the interconnection of
                                                          net-metered systems, LA PSC Order,
                                                          Docket No. R-27558. All electric utilities
                                                          govered by the PSC - public utilities, investor
                                                          owned utilties, municipal utilities and rural
                                                          electric cooperatives must offer net metering
                                                          and interconnection to systems using solar,
                                                          wind, hydropower, geothermal, or biomass
                                                          resources (fuel cells and microturbines that
                                                          produce electricity entirely from renewables
                                                          are also allowed). Residential systems up to
                                                          25 kW and commercial systems up to 100
                                                          kW are allowed to interconnect. (S.B. 359,
                                                       Y-
                                                          enacted in June 2008, expanded net
7.1                                                       metering for non-residential systems to 300
                                                          kW. The Louisiana PSC has not yet issued
                                                          new rules to reflect this change.)
                                                          Interconnected systems must meet all local
                                                          and national standard such as IEEE, NESC,
                                                          and UL. An external disconnect is required.
                                                          Customers must pay for interconnection
                                                          costs. There is a standard interconnection
                                                          agreement. Additional insurance is not
                                                          addressed.


                                                          LA PSC Order, Docket No. R-27558,
                                                       R  http://www.dsireusa.org/documents/Incentive
                                                          s/LA03Rb.pdf
      A statewide net metering policy is in place         Louisiana has a statewide net metering
                                                          policy established by La. R.S. 51:3061 et
                                                          seq. and LA PSC Order, Docket No. R-
                                                          27558. Utilities governed by the PSC must
                                                          offer net metering to customers that
                                                          generate electricity using solar, wind,
                                                          hydropower, geothermal or biomass
                                                          resources along with fuel cells and
                                                          microturbines that generate electricity
                                                       Y+
                                                          entirely from renewable resources.
                                                          Utilities/cooperatives must offer net metering
                                                          to residential systems up to 25 kW and for
7.2
                                                          commercial and agricultural systems up to
                                                          100 kW. Net excess generation is credited to
                                                          the customer's next bill at the utility's retail
                                                          rate; and is carried over indefinitely. There is
                                                          no limit on overall enrollment.
7.2




                                                        La. R.S. 51:3061 et seq. is located here,
                                                        http://www.dsireusa.org/documents/Incentive
                                                        s/LA03Rc.htm and LA PSC Order, Docket
                                                    S
                                                        No. R-27558 can be found here,
                                                        http://www.dsireusa.org/documents/Incentive
                                                        s/LA03Rb.pdf.
      A statewide exit fee policy is in place
7.3
      A statewide standby rate policy is in place       Louisiana does not have a statewide policy
                                                    N
                                                        on standby rates

                                                       Entergy Louisiana Inc - Schedule QFSS-13 -
                                                       standby service is provided only to QFs.
                                                       The standby rate is primarily demand based.
                                                       Billing demand is based on the higher of the
                                                   U - average of 3 maximum 15 minute demand
                                                       periods or 70% of the maximum demand in
                                                       the previous 11 months. Rate available at:
                                                       http://www.entergy-
7.4
                                                       louisiana.com/your_business/ELI_Tariffs.asp
                                                       x
                                                       Entergy Gulf States Inc - Schedule SMQ -
                                                       standby service is provided only to QFs.
                                                       The standby rate has a very high demand
                                                       component. Billing demand is based on the
                                                   U - maximum 30 minute demand of the month
                                                       with a 12 month ratchet. Rate available at:
                                                       http://www.entergy-
                                                       louisiana.com/your_business/EGSI_Tariffs.a
                                                       spx
      As part of resource planning process, CHP        Louisiana has no IRP process.
      is reviewed and incorporated where effective N


7.5
                                   Natural Gas
urce.
                 Title 45 of the Louisiana Revised Statutes governs
                 public utilities. EE is not specifically addressed in
                 Title 45. Nor is it addressed in the rules of the
             N
                 Louisiana Pubic Service Commission (PSC).




             N




effective energy efficiency as a resource
                 As noted in 1.1 above, EE is not specifically
             N   addressed in Louisiana statute.


                 Louisiana has no EE programs for utility customers.
             N   Consequently, it has not established a cost benefit
                 test for program evaluation.



             N
    Louisiana has no EE programs for utility customers.
    Some of the state's IOUs provide some information
    to customers on ways to reduce their energy use and
N   costs through EE and conservation.




N




N




N
    Louisiana has no EE programs for utility customers.
    Consequently, Louisiana hasn't established an M&V
N   process.




    Louisiana has no EE programs for utility customers,
    so no delivery structure has been established.
N




    See 2.7.1 above.
deliver energy efficiency where cost-effective.

                 Louisiana has no EE programs for utility customers
             N   and there was no reported spending on EE
                 programs by Louisiana utilities. Consequently there
                 is no cost recovery process in place at this time.

                 See 4.1.1 above.




             N




 cost-effective energy efficiency and modify ratemaking
             N
N




N



N
                                                                         MISSISSIPPI
                                                                               Electric
Recommendation 1: Recognize energy efficiency as a high priority energy resource.
         EE is established as a high priority resource,       Title 77 of the Mississippi Code governs
         equivalent or superior to supply resources           public utilities. Chapter 3 of Title 77 relates
                                                              to the regulation of public utilities. EE is not
                                                              specifically addressed in Title 77.
                                                              Mississippi Code section 77-3-101
                                                              expresses legislative policy regarding
                                                              electric generation. Subsection 77-3-101(c)
                                                              provides "[t]hat new base load electric
                                                              generation technologies are and will
                                                              continue to be important in the planning and
                                                              development of public utility electric
  1.1                                                         generation, and that the State should take
                                                              advantage of advances in nuclear, coal and
                                                              other technologies, including technologies
                                                              that reduce or minimize of that facilitate the
                                                              future reduction or minimization of, regulated
                                                              air emissions." EE is not addressed in the
                                                              rules of the Mississippi Public Service
                                                              Commission (PSC).

                                                              Mississippi Code section 77-3-101.
                                                          S   http://michie.com/mississippi/lpext.dll?f=tem
                                                              plates&fn=main-h.htm&cp
         1.2.1 EE is integrated into an active IRP,           Mississippi has no IRP requirement.
         portfolio management, or other planning
                                                          N
         process

  1.2
         1.2.2 Efficiency is procured as a resource
         for default service/standard offer customers     N


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

         1.4.1 EE is a biddable commodity                 N

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


         State Implementation Plans (SIPs) include            In written comments, a representative of the
         EE set-asides                                        MS energy office referenced MS Code of
                                                              1972 - SEC. 57-39-27 for policy relating the
                                                              EE and allocation of petroleum products.
  1.5
  1.5
                                                         MS Code of 1972 - SEC. 57-39-27.
                                                         http://michie.com/mississippi/lpext.dll?f=tem
                                                         plates&fn=main-h.htm&cp
Recommendation 2: Make a strong, long-term commitment to implement cost-effective energy efficiency
        Efficiency commitment is in statute              As noted in section 1.1 above, EE is not
                                                         specifically addressed in Mississippi statute.
                                                         The Mississippi Development Authority
                                                         (MDA), Energy Division (Mississippi's Energy
                                                         Office), maintains a web site that includes a
                                                         discussion of renewable and clean energy
                                                         which expresses MS's priorities as follows:
                                                         "Under the leadership of Governor Haley
                                                         Barbour, Mississippi is emerging as an
                                                         energy leader. While others have developed
                                                     N   complex energy plans and 'canned
                                                         incentives', Governor Barbour's plan is to
  2.1                                                    simply develop more energy. His stance is
                                                         to develop adequate supplies for the future
                                                         and enhance production from all domestic
                                                         sources, including oil, gas, coal, nuclear,
                                                         hydro and the renewables. Mississippi has
                                                         gained the reputation of being a pro-
                                                         business, relaible energy state."


                                                         MDA Energy Division renewable and clean
                                                         energy page.
                                                         http://www.mississippi.org/index.php?id=31



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


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




  2.3
      2.3.2 Established EE programs reach all              Electric utilities in Mississippi offer few EE
      customer classes                                     programs. The majority of EE programs in
                                                           MS are offered by public power associations.
                                                           The state's IUO's activities are largely limited
                                                           to on-line tips to residential customers about
                                                           how to save energy costs through EE.




2.3                                                    N




      Funding requirements for all long-term, cost-
      effective EE have been established
                                                       N
2.4

      2.5.1 Quantitative MW and MWh savings
      goals have been established and are              N
      producing incremental investment.
      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        N
      part of program approval and budget-setting
      process; (d) other

2.5   2.5.3 Energy Efficiency can be used to fulfill
      requirements of an RPS or similar standard       N
2.5



      2.5.4 Expected Capacity Savings (Annual
      MW in 2006)

      2.5.5 Energy Savings (Annual MWh in
      2006)

      2.6.1 A robust M&V process has been
      established
                                                        N



      2.6.1.1   M&V is adequately funded


      2.6.1.2 Energy savings are used to
      measure performance

      2.6.1.3 M&V is done according to a
2.6   defined schedule

      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

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




      2.7.1 EE delivery structure has been                  As discussed in 2.3.2 above, utilities in
      established                                           Mississippi offer few EE programs. The
                                                            majority of EE programs in MS are offered
                                                            by public power associations. The state's
                                                        N
                                                            IUO's activities are largely limited to on-line
                                                            tips to residential customers about how to
                                                            save energy costs through EE.
2.7


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

      Resource plans are regularly updated
                                                        N
2.8
       2.9.1 Building Energy Codes for residential         The state energy code, based on ASHRAE
       buildings are in place and regularly updated        90-1975, is voluntary. There is no set code
                                                       N/N change cycle. The most recent update was
                                                           July 1, 1980. See BCAP summary for
                                                           additional details.
                                                            BCAP summary. http://bcap-
                                                            energy.org/node/77
2.9
       2.9.2 Building Energy Codes for                     ASHRAE 90-1975 is mandatory for state-
       commercial buildings are in place and               owned buildings, public buildings and high-
       regularly updated                                   rise buildings. There is no set code change
                                                       N/N
                                                           cycle. The most recent update was July 1,
                                                           1980. See BCAP summary for additional
                                                           details.
                                                           BCAP summary. http://bcap-
                                                           energy.org/node/77
       Appliance and Equipment Efficiency
       Standards are in place and regularly             N
2.10
       updated
       Energy efficiency is a high priority in state
       buildings and state funded buildings as              The MS Legislature enacted SB 3007 in
       evidenced in capital planning and enabling           2008 (eefective July 1, 2008). SB 3007
       performance contracts                                requires the MS Department of Finance and
                                                            Administration to adopt rules regarding
                                                            energy perfromanace of state-funded
                                                            buildings and require that each qualifying
                                                            major facility construction project exceed
                                                            conservation guidelines by at least 30%. In
                                                            additon, the MDA, Energy Division, operates
                                                            the State Energy Management Program
                                                        Y
                                                            (SEMP) which provides for the development
                                                            and implementation of a state energy
                                                            management plan for all state-owned or
                                                            state-leased buildings. SEMO is mandated
                                                            by state law and designates the Energy
2.11                                                        Division as the primary source for EE in
                                                            state buildings (See SEC. 57-39-101, SEC.
                                                            57-39-103 through 57-39-115.) See also the
                                                            Energy Division's page summarizing its
                                                            activities relating to government and public
                                                            facilities.
 2.11




                                                           SB 3007.
                                                           http://billstatus.ls.state.ms.us/documents/20
                                                           08/html/SB/3000-3099/SB3007SG.htm
                                                           State Energy Management Program.
                                                           http://www.mississippi.org/index.php?id=17
                                                       S   Government and Public Facilities.
                                                           http://www.mississippi.org/index.php?id=18
                                                           SEC. 57-39-101, SEC. 57-39-103 through
                                                           57-39-115.
                                                           http://michie.com/mississippi/lpext.dll?f=tem
                                                           plates&fn=main-h.htm&cp
Recommendation 3: Miscellaneous Policies
        3.1.1 Public education programs on EE are          MS utilities don't have comprehensive EE
        in place. (See Guide Tab for Y/N criteria.)        ediucation programs but some do include
                                                           basic EE infomration on their respective web
                                                       N   sites. The Mississippi Development
                                                           Authority ,Energy Division (MS's Energy
                                                           Office) maintains an EE education page.

                                                           Entergy. http://entergy-
                                                           mississippi.com/your_home/Ensight.aspx
                                                           Southern Company.
                                                           http://www.southerncompany.com/planetpow
                                                           er/
                                                           TVA. http://www.energyright.com/
  3.1                                                      Energy Division.
                                                           http://www.mississippi.org/index.php?id=14

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

        75% of state access to ENERGY STAR New             In written comments, a representative of the
        Homes                                              MDA-ED (MS energy office) stated that
                                                           "MDA-ED is an official ENERGY STAR
                                                           partner and is seeking to expand into the
                                                           Home Performance with ENERGY STAR.
                                                       Y
                                                           Information has been provided to consumers
  3.2                                                      regarding ENERGY STAR New Homes and
                                                           energy efficient products that bear the
                                                           ENERGY STAR label."

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

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


Recommendation 4: Promote sufficient, timely, and stable program funding to deliver energy efficiency w
         4.1.1 Cost recovery process exists
                                                                As noted in 2.3.2 above, IOUs have spent
                                                                very little on EE programs in MS. Chapter
                                                            N
                                                                17 of the MS PSC Rules of Practice and
                                                                Procedure (pages 61-64) governs fuel
                                                                adjustment clauses and riders.
                                                                Chapter 17.
                                                                http://www.psc.state.ms.us/executive/rules/F
  4.1                                                       A
                                                                inal%20Rules%20&%20Procedure%20form
                                                                atted%20for%20SOS.pdf
         4.1.2 Recovery occurs via: (a) rider; (b)
         regular rate case; or (c) system benefits
         charge

         4.1.3 Funding is for multi-year periods

         A base energy efficiency spending level
  4.2    exists, with opportunity to justify higher level
         % of net (retail) utility revenue presently
         used for energy efficiency [no unit = %; m/k
  4.3    = mils/kWh]



         Funds from carbon trading program support
  4.4
Recommendation 5: Modify policies to align utility incentives with the delivery of cost-effective energy effi
         5.1.1 Utility throughput incentive is
                                                            N
         addressed and disincentives are removed

  5.1    5.1.2 Method used is: (a) decoupling; (b)
         lost revenue recovery; or (c) non-utility
         implementaion of EE

         5.2.1 Utility/shareholder EE incentives are
                                                            N
         provided
  5.2    5.2.2 Incentives exceed amount of lost
         revenues

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

   5.3
   5.3   5.3.2 Declining block rates and fixed
         variable rate designs have been eliminated


         5.4.1 Time sensitive rates in place

         5.4.2 Usage sensitive rates in place

         5.4.3 AMI deployment planned                         Southern Company, which provides electric
                                                              service throughout the southeast, including
                                                              Mississippi, has contracted with Sensus
                                                          Y/C
                                                              Metering Systems to provide AMI to
                                                              Southern Company's 4.3 million customers
  5.4                                                         over the next 5 years.
                                                              Reuters article discussing Southern/Sensus
                                                              AMI contract.
                                                              http://www.reuters.com/article/pressRelease/
                                                              idUS106956+14-Jan-2008+PRN20080114

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

State Fiscal Policy
         Sales Tax reduction or exemption for energy
                                                          N
  6.1    efficient products

         Investment Tax Credit for energy efficient
                                                           N
  6.2    investments

         State supported low cost financing for
         energy efficient investments: buildings (x),
         equipment (y)
  6.3
         New or reorganized energy policy agency

Distributed Generation Policies
         A statewide interconnection policy is in place        Mississippi does not have statewide
                                                           N
                                                               interconnection standards.




   7.1
                                                        Entergy Mississippi Inc, IOU - has two levels
                                                        of interconnection one for systems less than
                                                        20 MW and the other for systems larger than
                                                        20 MW. A number of studies must be
                                                        conducted for systems over 20 MW - a
                                                        feasibility study, a system impact study, and
                                                        a facilities study. For systems under 20 MW,
                                                        these facilities must follow FERC Order 2006
                                                        and its successors (SGIP and SGIA), which
7.1
                                                    U   can be found here, http://oasis.e-
                                                        terrasolutions.com/documents/EES/Order20
                                                        06Postings.html. All systems must comply
                                                        with North American Electric Reliability
                                                        Corporation (NERC) standards.
                                                        Interconnection information can be accessed
                                                        from here,
                                                        http://www.entergy.com/transmission/facility_
                                                        requirements.aspx.


      A statewide net metering policy is in place       Mississippi does not have a statewide net
                                                    N
                                                        metering policy.
7.2


      A statewide exit fee policy is in place
7.3
      A statewide standby rate policy is in place      Mississippi does not have a statewide policy
                                                    N
                                                       on standby rates
                                                       Entergy Mississippi Inc - Rider Schedule SS-
                                                       9 - standby service is provided at an entirely
                                                       demand based rate. The demand charge is
                                                       assessed against 35% of the customer's
                                                       entire load (regardless of source of
                                                       generation) each month. Actual usage is
                                                       charged under regular tariff, billing demand
                                                    U-
                                                       typically based on the higher of the
                                                       maximum 15 minute demand of the month
                                                       or 80% of the maximum established in the
                                                       previous 11 months. Rate available at:
                                                       http://www.entergy-
                                                       mississippi.com/Your_Business/Business_T
7.4                                                    ariffs.aspx
7.4

                                                        Mississippi Power Co - Schedule SPSS-3B -
                                                        standby service is provided to customers
                                                        that contract for a specified amount of
                                                        demand capacity with the utility. Contract
                                                        capacity must be above the maximum power
                                                        demand from the preceding 23 months. A
                                                     U- customer charge and demand based
                                                        reservation charge is assessed each month.
                                                        Actual usage is billed under a primarily
                                                        demand based rate. Billing demand is
                                                        based on the maximum 15 minute demand
                                                        of the month. Rate available at:
                                                        http://www.mississippipower.com/pricing/ms
                                                        _rates.asp
      As part of resource planning process, CHP         Mississippi does not have a formal IRP
      is reviewed and incorporated where effective      process. Section 77-3-14 of the Mississippi
                                                        Code of 1972 requires the PSC to "develop,
                                                     N publicize and keep current an analysis" of
                                                        the long-range needs for electrical
                                                        generation in our state."

7.5
                                                        Entergy Mississippi and Mississippi Power
                                                        Co are currently working with the PSC to
                                                    U
                                                        develop a plan to meet Mississippi's
                                                        "economic future"
                                  http://www.entergy-mississippi.com/content/newsletters/Jan_Feb_2008_currents.pdf
                                                    U Mississippi Power Co (see above).
                             Natural Gas
urce.
            Title 77 of the Mississippi Code governs public
            utilities. Chapter 3 of Title 77 relates to the
            regulation of public utilities. EE is not specifically
            addressed in Title 77. Mississippi Code section 77-3-
            101 expresses legislative policy regarding electric
            generation. Subsection 77-3-101(c) provides "[t]hat
            new base load electric generation technologies are
            and will continue to be important in the planning and
            development of public utility electric generation, and
            that the State should take advantage of advances in
            nuclear, coal and other technologies, including
            technologies that reduce or minimize of that facilitate
            the future reduction or minimization of, regulated air
            emissions." EE is not addressed in the rules of the
            Mississippi Public Service Commission (PSC).




            Mississippi Code section 77-3-101.
        S   http://michie.com/mississippi/lpext.dll?f=templates&f
            n=main-h.htm&cp
effective energy efficiency as a resource
                 As noted in section 1.1 above, EE is not specifically
                 addressed in Mississippi statute.




             N




             N




             N
    It appears that MS's gas utilties do not offer EE
    programs to their MS customers. However, these
    gas utilities may offer EE programs in other
    jurisdictions. For instance Atmos Energy offers EE
    programs to customers it serves in Colorado, Texas
    and Missouri.




N




    Atmos Energy EE programs.
    http://www.atmosenergy.com/home/efficiency/index.
    html



N




N




N
N




N
N




N
deliver energy efficiency where cost-effective.
                 Chapter 18 of the MS PSC Rules of Practice and
                 Procedure (page 64) governs purchsed gas
                 adjustment provisions. Subsection 100(3) provides
             N
                 that a gas utility is allowed to recover in the PGA
                 "such other costs as may be approved by the
                 Commission."
                 Chapter 18.
                 http://www.psc.state.ms.us/executive/rules/Final%20
             A
                 Rules%20&%20Procedure%20formatted%20for%20
                 SOS.pdf




 cost-effective energy efficiency and modify ratemaking
             N




             N




             N
                                                                   NORTH CAROLINA
                                                                              Electric
Recommendation 1: Recognize energy efficiency as a high priority energy resource.
         EE is established as a high priority resource,       New IRP rules, approved in July 2007,
         equivalent or superior to supply resources           require consideration of supply and demand
                                                              side resources. See 1.2, below. In addition,
                                                              Duke Energy has proposed a Save-a-Watt
                                                              program in its filing in Docket No. E-7, Sub
                                                          N   831. This proposal doesn't establish EE as
                                                              equivalent or superior to supply, but does
  1.1                                                         treat demand-side resources as a significant
                                                              resource. The filing is available at the link
                                                              below.
                                                             http://ncuc.commerce.state.nc.us/cgi-
                                                             bin/webview/senddoc.pgm?dispfmt=&itype=
                                                          R
                                                             Q&authorization=&parm2=TAAAAA72170B&
                                                             parm3=000126792
         1.2.1 EE is integrated into an active IRP,          SUMMARY: New IRP rules were approved
         portfolio management, or other planning             in July 2007, requiring ongoing assessment
         process                                             of existing and potential demand side
                                                             resources. The 2003 State Energy Plan
                                                             describes DSM activities prior to 2007. See
                                                             the 2003 State Energy Plan, pp. 21-25.
                                                             Supply and demand-side resources must be
                                                             considered and compared to find the least-
                                                             cost long-term combination of resources to
                                                             meet system needs. The newly revised rules
                                                             can be found as an attachment to the Order
                                                             in Docket E-100, Sub 111. The laws
                                                             governing public utilities in North Carolina
                                                             are codified at Chapter 62. Sections 62-
                                                          Y- 2(3a) and 62-110.1(c) set forth the
                                                             requirements for NC’s IRP process. Section
                                                             62-2 articulates public policy. Section 62-
                                                             2(3a) states NC’s commitment to EE and
                                                             requires that the resource mix “include use
                                                             of the entire spectrum of demand-side
                                                             options, including but not limited to
                                                             conservation, load management and
                                                             efficiency programs, as additional sources of
                                                             energy supply and/or energy demand
                                                             reductions.” Section 62-2(3a) also
                                                             authorizes the NCUC to “require energy
                                                             planning and fixing of rates in a manner to
                                                             result in the least cost mix of generation and
                                                             demand-reduction measures which are


  1.2
                                                           2003 State Energy Plan.
                                                           http://www.energync.net/epc/docs/Energy%2
1.2                                                        0Plan%202005.pdf
                                                           Order in Docket E-100, Sub 111 at
                                                           http://ncuc.commerce.state.nc.us/cgi-
                                                           bin/webview/senddoc.pgm?dispfmt=&itype=
                                                           Q&authorization=&parm2=FAAAAA29170B&
                                                           parm3=000125858.                   Order
                                                           amending IRP Rule, 07 11 07.
                                                           http://ncuc.commerce.state.nc.us/cgi-
                                                           bin/webview/senddoc.pgm?dispfmt=&itype=
                                                           Q&authorization=&parm2=FAAAAA29170B&
                                                           parm3=000125858
                                                     SRA
                                                           Sections 62-2(3a), 62-110.1(c) and 62-
                                                           110(e).
                                                           http://www.ncleg.net/enactedlegislation/statu
                                                           tes/html/bychapter/chapter_62.html
                                                           Commission Rule R8-60.
                                                           http://www.ncuc.commerce.state.nc.us/ncrul
                                                           es/Chapter08.pdf
                                                           Senate Bill 3 (Session Law 2007-397).
                                                           http://www.ncleg.net/Sessions/2007/Bills/Se
                                                           nate/PDF/S3v6.pdf
                                                           NCUC Order Adopting REPS Rule and
                                                           Implementing SB 3.
                                                           http://www.ncuc.commerce.state.nc.us/selor
                                                           der/rules/SW022908.pdf

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


      EE is an alternative to transmission based           The new IRP rules require comparison of
      on a long-term transparent IRP or                    comprehensive combinations of demand
      transmission system plan                             and supply side options to determine an IRP
                                                           that offers the least-cost long-term set of
                                                           resources to meet system needs, taking into
                                                      N
                                                           account the sensitivity of its analysis to T&D
                                                           costs, among others. The rules have no
                                                           explicit instruction that demand side
                                                           resources are considered an alternative to
                                                           transmission.
                                                           The newly revised rules can be found as an
                                                           attachment to the Order in Docket E-100,
                                                           Sub 111 at
                                                      R    http://ncuc.commerce.state.nc.us/cgi-
                                                           bin/webview/senddoc.pgm?dispfmt=&itype=
                                                           Q&authorization=&parm2=FAAAAA29170B&
1.3
                                                           parm3=000125858.
1.3
                                                           When applying for Certificates of
                                                           Convenience and Necessity for transmission
                                                           projects, applicants must show that the
                                                           proposed project is "reasonable, preferred,
                                                           and in the public interest". See North
                                                           Carolina General Statutes § 62-105.
                                                           http://www.ncga.state.nc.us/EnactedLegislati
                                                       S   on/Statutes/HTML/BySection/Chapter_62/G
                                                           S_62-105.html CPCNs may be waived
                                                           under certain circumstances. See North
                                                           Carolina General Statutes § 62-101.
                                                           http://www.ncga.state.nc.us/EnactedLegislati
                                                           on/Statutes/HTML/BySection/Chapter_62/G
                                                           S_62-101.html

      1.4.1 EE is a biddable commodity

                                                           PJM conducts a regional planning process
                                                           for 13 states and DC, including a portion of
                                                           NC. 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,
                                                       N 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
1.4                                                      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.
                                                           PJM Report filed 12 12 08
                                                           http://elibrary.ferc.gov/idmws/File_list.asp?do
                                                           cument_id=13672172
                                                           PJM tariff filing to implement proposed
                                                           changes to RPM filed 12 12 08
                                                           http://elibrary.ferc.gov/idmws/File_list.asp?do
                                                   R       cument_id=13672185
      1.4.2 Bids occur in the following markets:
      (a) energy, (b) capacity, or (c) other
        State Implementation Plans (SIPs) include
        EE set-asides                               N   North Carolina is working towards creating
  1.5
                                                        an EE/RE set aside in its CAIR regulations.

Recommendation 2: Make a strong, long-term commitment to implement cost-effective energy efficiency
        Efficiency commitment is in statute            N.C. Gen. Stat. § 62-2(3a) states that it is
                                                       the policy of North Carolina that utility service
                                                    Y- include the entire spectrum of demand-side
  2.1                                                  resources.
                                                        http://www.ncga.state.nc.us/EnactedLegislati
                                                    S   on/Statutes/HTML/BySection/Chapter_62/G
                                                        S_62-2.html
                                                        NC enacted Senate Bill 3 (Session Law 2007-
                                                        397) in 2007. On August 23, 2007, the
                                                        NCUC initiated a rulemaking proceeding to
                                                        implement SB 3 (Docket No. E-100, Sub
                                                        113). Cost-benefit evaluation will be
                                                        considered in this docket. In the past, Staff
                                                        have recommended that a number of tests
                                                        be used, not just the RIM test alone. Utilities
                                                        varied in response. (Outcomes of a
                                                        Workgroup process that resulted in a
                                                        number of recommendations.) NC’s cost
                                                        effectiveness test is governed by Rule R8-
                                                        68. Section R8-68(c)(2)(iv) directs utilities to
                                                        file a cost effectiveness evaluation that is
                                                    N   “based on direct or quantifiable costs and
                                                        benefits and should include, at a minimum,
                                                        an analysis of the Total Resource Cost Test,
                                                        the Participant Test, the Utility Cost Test and
                                                        the Ratepayer Impact Measure Test.” On
                                                        February 29, 2008, the NCUC issued an
                                                        Order Adopting Final Rules in Docket No. E-
                                                        100, Sub 113. The NCUC discusses a
                                                        variety of proposed amendments to Rule R8-
                                                        68 and the NCUC’s cost-effectiveness
                                                        analysis in the February 29th Order at pages
  2.2                                                   98-100 and 124-127. In Docket No. E-100,
                                                        Sub 113, several intervenors urged the
        The TRC or Societal Cost Test is used to        NCUC to clarify and standardize its cost
        evaluate EE programs                            effectiveness review under Rule R8-68. For
2.2




                                                       See page 4 in the Order initiating rulemaking
                                                       in Docket No. E-100, sub 113 at
                                                       http://www.ncuc.net/selorder/orders.htm.
                                                       RE: earlier Workgroup outcomes, a
                                                       summary of Staff recommendations and
                                                       party responses is included in the October
                                                       2006 Order available at
                                                   SRA http://ncuc.commerce.state.nc.us/cgi-
                                                       bin/webview/senddoc.pgm?dispfmt=&itype=
                                                       Q&authorization=&parm2=BBAAAA29260B&
                                                       parm3=000125744. Senate Bill 3 (Session
                                                       Law 2007-397).
                                                       http://www.ncleg.net/Sessions/2007/Bills/Se
                                                       nate/PDF/S3v6.pdf
                                                       NCUC Order Adopting REPS Rule and
                                                       Implementing SB 3.
                                                       http://www.ncuc.commerce.state.nc.us/selor
                                                       der/rules/SW022908.pdf

      2.3.1 Potential for cost-effective EE has         According to an October 19, 2006 Order in
      been established through a potential study        an IRP proceeding, the NCUC decided to
                                                        require further study of DSM potential in
                                                        Docket No. E-100, Sub 110. In December
                                                        2006, GDS submitted potential study to the
                                                        NCUC. On December 6, 2007, the NCUC
                                                        issued an Order Discussing Issues and
                                                        Closing Docket in Docket No. E-100, Sub
                                                    N
                                                        110. In the December 6th Order, the NCUC
                                                        discusses the positions of the parties on the
                                                        need for a statewide potential study (pages 6-
                                                        8) and concludes that “sufficient information
                                                        is readily available to move forward without
                                                        further study at this time.” (page 15)




2.3
                                                    GDS potential study 12 08.
                                                    http://www.ncuc.commerce.state.nc.us/reps/
                                                    NCRPSEnergyEfficiencyReport12-06.pdf
                                                    October 19, 2006 Order.
                                                    http://ncuc.commerce.state.nc.us/cgi-
                                                    bin/webview/senddoc.pgm?dispfmt=&itype=
                                                    Q&authorization=&parm2=BBAAAA29260B&
                                                R   parm3=000125744 NCUC                       Order
                                                    Relating to potential study and other EE
                                                    issues, Docket No. E-100, Sub 110,
                                                    December 6, 2007.
                                                    http://ncuc.commerce.state.nc.us/cgi-
                                                    bin/webview/senddoc.pgm?dispfmt=&itype=
2.3                                                 Q&authorization=&parm2=8AAAAA93370B&
                                                    parm3=000125744
      2.3.2 Established EE programs reach all       Duke's Save-A-Watt proposal in Docket No.
      customer classes                              E-7, Sub 831 includes EE for all customer
                                                    classes. Currently, different electric utilities
                                                    offer a variety of EE programs for various
                                                    customer classes. NC enacted Senate Bill 3
                                                    (Session Law 2007-397) in 2007. SB 3
                                                    requires electric power suppliers in NC to
                                                    provide electric service to retail customers
                                                    with an increasing amount of renewable and
                                                    EE resources. Each utility must submit a
                                                    compliance plan to the NCUC that outlines
                                                    the programs the utility will implement to
                                                    achieve the required savings. On August
                                                    23, 2007, the NCUC initiated a rulemaking
                                                Y   proceeding to implement SB 3 (Docket No.
                                                    E-100, Sub 113). On February 29, 2008, the
                                                    NCUC issued an Order Adopting Final Rules
                                                    in Docket No. E-100, Sub 113. Section 4(c)
                                                    of SB 3 directed utilities to file their initial
                                                    compliance plans by September 1, 2008. In
                                                    anticipation of the filing of the required
                                                    compliance plans, the NCUC opened Docket
                                                    No. E100, Sub 116. On September 1, 2008,
                                                    the NCUC submitted a report to the
                                                    Governor and legislature on rate structures,
                                                    policies and measures to promote renewable
                                                    energy generation and demand reduction in
                                                    NC. This report summarized progress the
                                                    NCUC had made in Docket No. E-100, Sub
                                                         Duke's Save-A-Watt proposal.
                                                         http://ncuc.commerce.state.nc.us/cgi-
                                                         bin/webview/senddoc.pgm?dispfmt=&itype=
                                                         Q&authorization=&parm2=TAAAAA72170B&
                                                         parm3=000126792 Senate Bill 3 (Session
                                                         Law 2007-397).
                                                         http://www.ncleg.net/Sessions/2007/Bills/Se
                                                         nate/PDF/S3v6.pdf
                                                         NCUC Order Adopting REPS Rule and
                                                         Implementing SB 3.
                                                      SR http://www.ncuc.commerce.state.nc.us/selor
                                                         der/rules/SW022908.pdf
                                                         NCUC report on rate structures, policies and
                                                         measures to promote renewable energy
                                                         generation and demand reduction in NC,
                                                         September 1, 2008.
                                                         http://ncuc.commerce.state.nc.us/cgi-
                                                         bin/webview/senddoc.pgm?dispfmt=&itype=
                                                         Q&authorization=&parm2=QAAAAA74280B
                                                         &parm3=000128196

      Funding requirements for all long-term, cost-
      effective EE have been established
                                                      N
2.4

      2.5.1 Quantitative MW and MWh savings
      goals have been established and are             N
      producing incremental investment.
      2.5.2 Goals are established: (a) in                In August 2007, SB 3 established a
      connection with IRP or other planning              Renewable Energy and Energy Efficiency
      process; (b) as part of an EEPS or similar         Portfolio Standard in NC. SB 3 requires
      system; (c) as part of program approval and        electric power suppliers in NC to provide
      budget-setting process; (d) other                  electric service to retail customers with an
                                                         increasing amount of renewable and EE
                                                         resources. Each utility must submit a
                                                         compliance plan to the NCUC that outlines
                                                         the programs the utility will implement to
                                                         achieve the required savings. On August
                                                         23, 2007, the NCUC initiated a rulemaking
                                                         proceeding to implement SB 3 (Docket No.
                                                         E-100, Sub 113). On February 29, 2008, the
                                                         NCUC issued an Order Adopting Final Rules
                                                     Y
                                                         in Docket No. E-100, Sub 113. Section 4(c)
                                                         of SB 3 directed utilities to file their initial
                                                         compliance plans by September 1, 2008. In
                                                         anticipation of the filing of the required
                                                         compliance plans, the NCUC opened Docket
                                                         No. E100, Sub 116. On September 1, 2008,
                                                         the NCUC submitted a report to the
                                                         Governor and legislature on rate structures,
                                                         policies and measures to promote renewable
                                                         energy generation and demand reduction in
                                                         NC. This report summarized progress the
                                                         NCUC had made in Docket No. E-100, Sub
                                                         116.

                                                        Senate Bill 3 (Session Law 2007-397).
                                                        http://www.ncleg.net/Sessions/2007/Bills/Se
2.5
                                                        nate/PDF/S3v6.pdf
                                                        NCUC Order Adopting REPS Rule and
                                                        Implementing SB 3.
                                                        http://www.ncuc.commerce.state.nc.us/selor
                                                        der/rules/SW022908.pdf
                                                        NCUC report on rate structures, policies and
                                                    SRA
                                                        measures to promote renewable energy
                                                        generation and demand reduction in NC,
                                                        September 1, 2008.
                                                        http://ncuc.commerce.state.nc.us/cgi-
                                                        bin/webview/senddoc.pgm?dispfmt=&itype=
                                                        Q&authorization=&parm2=QAAAAA74280B
                                                        &parm3=000128196
      2.5.3 Energy Efficiency can be used to fulfill        Session Law 2007-397 (Senate Bill 3)
      requirements of an RPS or similar standard            established a Renewable Energy and Energy
                                                            Efficiency Portfolio Standard (REPS)
                                                            requiring investor-owned utilities in North
                                                            Carolina to meet up to 12.5% of their energy
                                                        Y
                                                            needs through renewable energy resources
                                                            or EE measures. Rural electric cooperatives
                                                            and municipal electric suppliers are subject
                                                            to a 10% REPS requirement. See 2.5.2
                                                            above.
                                                            Links to statute and rulemaking docket can
                                                            be seen at
                                                        S   http://www.ncuc.commerce.state.nc.us/reps/
                                                            reps.htm
      2.5.4 Expected Capacity Savings (Annual
      MW in 2006)

      2.5.5 Energy Savings (Annual MWh in                   See 2.5.2 above.
      2006)

      2.6.1 A robust M&V process has been                   Docket No. E-100, Sub 113 has been
      established                                           opened for rulemaking to address
                                                            comprehensive energy legislation passed in
                                                            2007 (SB 3). M&V procedures will be
                                                            considered in this docket. The M&V
                                                            requirement for energy and capacity savings
                                                        N   is established in NCUC Rule R8-68(c)(3(iii)
                                                            which directs electric utilities to conduct the
                                                            required M&V. The NCUC considered
                                                            changes to the M&V requirements in its SB 3
                                                            implementation proceeding (Docket No. E-
                                                            100, Sub 113. (pages 104-105, 120)


                                                           See page 4 in the Order initiating rulemaking
                                                           in Docket No. E-100, sub 113 at
                                                           http://www.ncuc.net/selorder/orders.htm.NC
                                                           UC rules.
                                                           http://www.ncuc.commerce.state.nc.us/ncrul
                                                           es/rulstoc.htm
                                                       SRA Senate Bill 3 (Session Law 2007-397).
                                                           http://www.ncleg.net/Sessions/2007/Bills/Se
                                                           nate/PDF/S3v6.pdf
                                                           NCUC Order Adopting REPS Rule and
                                                           Implementing SB 3.
                                                           http://www.ncuc.commerce.state.nc.us/selor
                                                           der/rules/SW022908.pdf



2.6
      2.6.1.1   M&V is adequately funded

2.6




      2.6.1.2 Energy savings are used to
      measure performance

      2.6.1.3 M&V is done according to a
      defined schedule

      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

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




      2.7.1 EE delivery structure has been         Duke has proposed utility delivery in its Save-
      established                                  a-Watt program. Recently Commission staff
                                                   recommended 3d party administration be
                                                   considered, in part, to address utility
                                                   disincentives. NC enacted Senate Bill 3
                                                   (Session Law 2007-397) in 2007. On
                                                   August 23, 2007, the NCUC initiated a
                                               Y   rulemaking proceeding to implement SB 3
                                                   (Docket No. E-100, Sub 113). On February
                                                   29, 2008, the NCUC issued an Order
                                                   Adopting Final Rules in Docket No. E-100,
                                                   Sub 113. As discussed in 2.5.2, SB 3
                                                   requires utilities to administer EE programs
                                                   in NC with oversight and approval by the
                                                   NCUC.




2.7
                                                            A summary of Staff recommendations
                                                            regarding consideration of 3d party
                                                            administration and party responses is
                                                            included in the October 2006 Order available
                                                            at http://ncuc.commerce.state.nc.us/cgi-
2.7                                                         bin/webview/senddoc.pgm?dispfmt=&itype=
                                                            Q&authorization=&parm2=BBAAAA29260B&
                                                            parm3=000125744                    Duke's
                                                            filing in E-7, Sub 831 can be seen at
                                                            http://ncuc.commerce.state.nc.us/cgi-
                                                            bin/webview/senddoc.pgm?dispfmt=&itype=
                                                        SRA
                                                            Q&authorization=&parm2=TAAAAA72170B&
                                                            parm3=000126792                  Senate Bill 3
                                                            (Session Law 2007-397).
                                                            http://www.ncleg.net/Sessions/2007/Bills/Se
                                                            nate/PDF/S3v6.pdf
                                                            NCUC Order Adopting REPS Rule and
                                                            Implementing SB 3.
                                                            http://www.ncuc.commerce.state.nc.us/selor
                                                            der/rules/SW022908.pdf




      2.7.2 Delivery is via: (a) utility
                                                         (a)
      administration; (b) third-party administration;
      Resource plans are regularly updated                     NC’s IRP process is discussed in 1.2.1.
                                                               Consistent with the requirements of SB 3
                                                               and NCUC Rule R8-60, electric utilities must
                                                               file a REPs compliance plan as part of its
                                                               IRP filing on or before September 1st of
                                                               each year. The NCUC is required to review
                                                               each REPS filing to determine actual
                                                         Y     compliance with the REPS requirements. A
                                                               utility’s IRP must include a comprehensive
                                                               analysis of all resource options. The plan
                                                               must also include an assessment of DSM
                                                               and EE in its IRP. IRPs must be approved
2.8                                                            by the NCUC.

                                                            Senate Bill 3 (Session Law 2007-397).
                                                            http://www.ncleg.net/Sessions/2007/Bills/Se
                                                            nate/PDF/S3v6.pdf                 NCUC
                                                            rules.
                                                            http://www.ncuc.commerce.state.nc.us/ncrul
                                                        SRA es/rulstoc.htm
                                                            NCUC Order Adopting REPS Rule and
                                                            Implementing SB 3.
                                                            http://www.ncuc.commerce.state.nc.us/selor
                                                            der/rules/SW022908.pdf
        2.9.1 Building Energy Codes for residential         2006 IECC is the basis for the state-
        buildings are in place and regularly updated        developed 2009 NC Energy Conservation
                                                            Code. Mandatory statewide; REScheck can
                                                            be used to show compliance. Builders are
                                                            allowed to use previous code (based on
                                                        Y/Y
                                                            2003IECC) until June 30, 2009. New codes
                                                            are developed on a 3-year cycle. The most
                                                            recent update was effective January 1, 2009.
                                                            The next update will be in 2012.

                                                             Building Energy Codes Program. http://bcap-
                                                             energy.org/node/82
  2.9
        2.9.2 Building Energy Codes for                     2006 IECC is the basis for the state-
        commercial buildings are in place and               developed code which references ASHRAE
        regularly updated                                   90.1-2004. Mandatory statewide;
                                                            COMcheck can be used to show
                                                            compliance. Builders are allowed to use
                                                        Y/Y
                                                            previous code (based on 2003IECC) until
                                                            June 30, 2009. New codes are developed
                                                            on a 3-year cycle. The most recent update
                                                            was effective January 1, 2009. The next
                                                            update will be in 2012.
                                                            Building Energy Codes Program. http://bcap-
                                                            energy.org/node/82
        Appliance and Equipment Efficiency
        Standards are in place and regularly            N
 2.10
        updated

        Energy efficiency is a high priority in state        The Utility Savings Initiative encompasses a
        buildings and state funded buildings as              variety of approaches to energy savings in
        evidenced in capital planning and enabling           state buildings. State agencies must develop
        performance contracts                                comprehensive energy plans. Savings tools
                                                             such as performance contracting are
                                                         Y   available. The North Carolina 2003 Energy
                                                             Plan includes a goal for state agencies to
 2.11
                                                             reduce energy consumption 20% by 2008.
                                                             See
                                                             http://www.energync.net/epc/docs/Energy%2
                                                             0Plan%202005.pdf
                                                             The Utility Savings Initiative is online at
                                                             http://www.energync.net/programs/usi.html

Recommendation 3: Miscellaneous Policies
      3.1.1 Public education programs on EE are          Consumer education efforts are part of the
      in place. (See Guide Tab for Y/N criteria.)        REPS compliance plans that must be filed
                                                         by utilities as part of their annual IRP filings.
                                                         As discussed in 2.3.2, initial compliance
                                                         plans were due on September 1, 2008.
                                                     N




      3.1.2 Process is in place, such as a state         In response to a complaint, the NCUC
      or regional collaborative, to pursue EE as a       opened an investigation in Docket No. E-
      high-priority resource. (See Guide Tab for         100, Sub 110 to determine the potential for
      Y/N criteria.)                                     EE in NC. On December 6, 2007, the NCUC
                                                         issued an Order Dismissing Issues and
                                                         Closing Docket. One of the issues
                                                         considered in Docket No. E-100, Sub 110
                                                         was whether DSM and EE programs should
                                                         be developed through collaborative or some
                                                         other way. (pages 8-10 and 15) In the
                                                         December 6th Order, the NCUC notes that
                                                         “the major points of contention revolve
3.1                                                      around how open and broad program
                                                         development should be and what leadership
                                                     N
                                                         role, if any, the Public Staff and/or the
                                                         Commission should be. Historically, the
                                                         Commission has not taken a leadership role
                                                         in the process of utility decisionmaking and
                                                         management activities given the statutory
                                                         limitations on its authority.” The NCUC then
                                                         noted that SB 3 has determined that each
                                                         utility should be responsible for the
                                                         development of its own programs “in the way
                                                         each individual utility feels it is most
                                                         appropriate at this time.” The NCUC added
                                                         that “this decision is subject to further review
                                                         once the Commission observes how the
                                                         utilities choose to proceed.” (page 15)
      Do not delete this row.                            NCUC Order Relating to potential study and
                                                         other EE issues, Docket No. E-100, Sub
                                                         110, December 6, 2007.
                                                     R   http://ncuc.commerce.state.nc.us/cgi-
                                                         bin/webview/senddoc.pgm?dispfmt=&itype=
                                                         Q&authorization=&parm2=8AAAAA93370B&
                                                         parm3=000125744
         Do not delete this row.
         Do not delete this row.

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

         75% of state access to ENERGY STAR New
                                                       Y
         Homes
  3.2    What proportion is due to regulated utility       Duke Energy, Progress Energy, Lumbee
         program? (who is sponsor)                         River EMC (Electric Membership
         75% of state access to Home Performance           Corporation), South River Electric
         with ENERGY STAR?                             N

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


Recommendation 4: Promote sufficient, timely, and stable program funding to deliver energy efficiency w
         4.1.1 Cost recovery process exists                Duke Energy proposed an Energy Efficiency
                                                           Rider in its filing in Docket No. E-7, Sub 831.
                                                           Session Law 2007-397 (Senate Bill 3)
                                                           provides for cost-recovery of DSM and EE
                                                           expenditures, but the process has not been
                                                           determined yet. Docket No. E-100, Sub 113
                                                           will address cost-recovery along with many
                                                           other issues. Docket No. E-100, Sub 113
                                                           has been opened for rulemaking to address
                                                           this comprehensive energy legislation. The
                                                       Y   REPS provisions resulting from SB 3 are
                                                           codified at 62-133.8. REPS cost recovery
                                                           and customer charge provisions are
                                                           addressed in 62-133.8(h). Cost recovery
                                                           provisions for DSM and EE measure are
                                                           codified at 62-133.9. The NCUC’s rule
                                                           regarding cost recovery for DSM and EE
                                                           measures is Rule R8-69. R8-69(b) provides
                                                           for an annual DSM/EE rider.




  4.1
                                                       Duke filing in Docket No. E-7, Sub 831.
                                                      http://ncuc.commerce.state.nc.us/cgi-
                                                      bin/webview/senddoc.pgm?dispfmt=&itype=
                                                      Q&authorization=&parm2=TAAAAA72170B&
                                                      parm3=000126792                       SB 3.
                                                      http://www.ncga.state.nc.us/Sessions/2007/
                                                      Bills/Senate/PDF/S3v6.pdf             Order
                                                      initiating REPS rulemaking in Docket No. E-
                                                      100, Sub 113.
                                                  SUA
                                                      http://www.ncuc.net/selorder/orders.htm
                                                      Chapter 62 of NC statutes.
                                                      http://www.ncleg.net/enactedlegislation/statu
                                                      tes/html/bychapter/chapter_62.html
                                                      NCUC rules.
                                                      http://www.ncuc.commerce.state.nc.us/ncrul
                                                      es/rulstoc.htm
4.1



      4.1.2 Recovery occurs via: (a) rider; (b)        The NCUC considered various forms of
      regular rate case; or (c) system benefits        funding in Docket No. E-100, Sub 110. See
      charge                                           Order Dismissing Issues and Closing
                                                       Docket, December 6, 2007 at pages 10-12
                                                       and 15. The passage of SB 3 superseded
                                                   (a) the NCUC’s consideration of alternative cost
                                                       recovery options. SB 3 included the
                                                       enactment of section 62-133.9(d), which
                                                       provides that cost recovery for EE programs
                                                       will be accomplished through an annual
                                                       rider.
                                                      See http://www.ncuc.net/selorder/orders for
                                                      Order initiating rulemaking in Docket No. E-
                                                      100, Sub 113. See also Order responding to
                                                      Workgroup Report in Docket No. E-100, Sub
                                                      111 at http://ncuc.commerce.state.nc.us/cgi-
                                                      bin/webview/senddoc.pgm?dispfmt=&itype=
                                                      Q&authorization=&parm2=BBAAAA29260B&
                                                      parm3=000125744                      NCUC
                                                      Order relating to various EE issues, Docket
                                                      No. E-100, Sub 110, December 6, 2007.
                                                  R,A
                                                      http://ncuc.commerce.state.nc.us/cgi-
                                                      bin/webview/senddoc.pgm?dispfmt=&itype=
                                                      Q&authorization=&parm2=8AAAAA93370B&
                                                      parm3=000125744
                                                      Chapter 62 of NC statutes.
                                                      http://www.ncleg.net/enactedlegislation/statu
                                                      tes/html/bychapter/chapter_62.html
         4.1.3 Funding is for multi-year periods            N

         A base energy efficiency spending level
  4.2    exists, with opportunity to justify higher level
         % of net (retail) utility revenue presently            Duke has been ordered by the Commission
         used for energy efficiency [no unit = %; m/k           in Cliffside CPN Case (Docket No. E-7, Sub
         = mils/kWh]                                            790) to spend 1% of annual NC revenues
                                                                revenues on demand-side resources
                                                                annually. Duke has proposed a portfolio of
                                                            N   programs to meet this requirement, and has
                                                                requested authority to exceed the 1%
                                                                without specific Commission approval. (See
                                                                pages 8, 17-24 of of Order granting CPCN
  4.3                                                           dated March 21, 2007.)


                                                                Order granting CPCN in Docket No. E-7,
                                                                Sub 790.
                                                                http://ncuc.commerce.state.nc.us/cgi-
                                                            R   bin/webview/senddoc.pgm?dispfmt=&itype=
                                                                Q&authorization=&parm2=ZAAAAA08070B&
                                                                parm3=000123542

         Funds from carbon trading program support
                                                            N
  4.4    EE

Recommendation 5: Modify policies to align utility incentives with the delivery of cost-effective energy effi
      5.1.1 Utility throughput incentive is         In 2006 Staff recommended that the
      addressed and disincentives are removed       Commission consider mechanisms to
                                                    remove utility disincentives including a PBF
                                                    for statewide programs administered by a
                                                    third party implementor. A summary of Staff
                                                    recommendations and party responses to a
                                                    variety of issues is included in the October
                                                    2006 Order that can be viewed at the link
                                                    below. Session Law 2007-397 (Senate Bill
                                                    3) includes language about incentives that
                                                    may allow the PUC to address disincentives
                                                    and adopt decoupling. Docket No. E-100,
                                                    Sub 113 has been opened for rulemaking to
                                                    address this comprehensive energy
                                                N
                                                    legislation. This issue is likely to be
                                                    addressed in the comprehensive energy
                                                    docket No. E-100, Sub 113. This issue is
                                                    also likely to come up in Docket No. E-7, sub
                                                    831 regarding Duke's EE filing. Previously,
                                                    a Workgroup including Commission staff
                                                    and utilities considered mechanisms to
                                                    address disincentives. See details below.
                                                    The NCUC considered various issues
                                                    regarding EE in Docket No. E-100, Sub 110.
                                                    Among the issues considered was the
                                                    throughput incentive. See Order Dismissing
                                                    Issues and Closing Docket, December 6,
                                                    2007 at pages 13-16. The passage of SB 3




5.1
                                                      October 2006 Order.
                                                      http://ncuc.commerce.state.nc.us/cgi-
                                                      bin/webview/senddoc.pgm?dispfmt=&itype=
                                                      Q&authorization=&parm2=BBAAAA29260B&
5.1                                                   parm3=000125744.                      Senate
                                                      Bill 3 (Session Law 2007-397).
                                                      http://www.ncleg.net/Sessions/2007/Bills/Se
                                                      nate/PDF/S3v6.pdf
                                                      The Order initiating rulemaking in Docket
                                                      No. E-100, Sub 113.
                                                      http://www.ncuc.net/selorder/orders.htm.
                                                      The Duke filing in Docket No. E-7, sub 831.
                                                      http://ncuc.commerce.state.nc.us/cgi-
                                                      bin/webview/senddoc.pgm?dispfmt=&itype=
                                                      Q&authorization=&parm2=TAAAAA72170B&
                                                  S,R
                                                      parm3=000126792                     NCUC
                                                      Order relating to various EE issues, Docket
                                                      No. E-100, Sub 110, December 6, 2007.
                                                      http://ncuc.commerce.state.nc.us/cgi-
                                                      bin/webview/senddoc.pgm?dispfmt=&itype=
                                                      Q&authorization=&parm2=8AAAAA93370B&
                                                      parm3=000125744
                                                      Decoupling report.
                                                      http://ncuc.commerce.state.nc.us/cgi-
                                                      bin/webview/senddoc.pgm?dispfmt=&itype=
                                                      Q&authorization=&parm2=QAAAAA74280B
                                                      &parm3=000128196




      5.1.2 Method used is: (a) decoupling; (b)        See 5.1.1 above
      lost revenue recovery; or (c) non-utility
      implementaion of EE
      5.2.1 Utility/shareholder EE incentives are       SUMMARY:Session Law 2007-397 (Senate
      provided                                          Bill 3) allows the NCUC to approve utility
                                                        incentives for new EE and DSM programs.
                                                        This issue is likely to be addressed in the
                                                        comprehensive energy docket No. E-100,
                                                        Sub 113. Also, a bonus rate of return
                                                        mechanism has been proposed by Duke in
                                                        its 2007 EE filing. This issue will be
                                                        addressed in Docket No. E-7, sub 831.
                                                        Duke Energy has proposed an Energy
                                                        Efficiency Rider in its filing in Docket No. E-
                                                        7, Sub 831. The rider would allow Duke to
                                                        amortize and receive a return on 90% of the
                                                     Y- avoided cost due to the DSM programs. The
                                                        NCUC holds evidentiary hearings on avoided
                                                        costs every 2 years. Avoided costs in the
                                                        context of the Duke filing will be dealt with in
                                                        the regular avoided cost proceeding.
                                                        Section 62-2(3a) authorizes the NCUC to
                                                        “require energy planning and fixing of rates
                                                        in a manner to result in the least cost mix of
                                                        generation and demand-reduction measures
                                                        which are achievable, including considering
                                                        appropriate rewards to utilities for efficiency
5.2                                                     and conservation which decrease utility
                                                        bills.” Under section 62-133.9(d), a utility
                                                        may receive an additional incentive based on
                                                        SB 3.
                                                        http://www.ncga.state.nc.us/Sessions/2007/
                                                        Bills/Senate/PDF/S3v6.pdf                  Order
                                                        initiating Docket No. E-100, Sub 113
                                                        http://www.ncuc.net/selorder/orders.htm
                                                        Duke's proposal in Docket No. E-7, Sub 831.
                                                        http://ncuc.commerce.state.nc.us/cgi-
                                                        bin/webview/senddoc.pgm?dispfmt=&itype=
                                                        Q&authorization=&parm2=TAAAAA72170B&
                                                    SRA parm3=000126792                 Chapter 62 of NC
                                                        statutes.
                                                        http://www.ncleg.net/enactedlegislation/statu
                                                        tes/html/bychapter/chapter_62.html
                                                        NCUC rules.
                                                        http://www.ncuc.commerce.state.nc.us/ncrul
                                                        es/rulstoc.htm




      5.2.2 Incentives exceed amount of lost
      revenues
      5.3.1 Impact on EE is a consideration when       NCUC has recently considered this issue in
      designing retail rates                           a report prepared in response to SB 3. On
                                                       September 1, 2008, the NCUC submitted a
                                                       report to the Governor and Legislature on
                                                       rate structures, policies and measures to
                                                   N   promote renewable energy generation and
                                                       demand reduction in NC. The September 1
                                                       report discussed a variety of rate design
                                                       issues including rates that increase demand.
                                                       (See pages 22-26.)

                                                       September 1, 2008 report of NCUC to the
                                                       Governor and Legislature on rate structures,
                                                       policies and measures to promote renewable
                                                       energy generation and demand reduction in
                                                       NC. http://ncuc.commerce.state.nc.us/cgi-
                                                       bin/webview/senddoc.pgm?dispfmt=&itype=
                                                       Q&authorization=&parm2=QAAAAA74280B
                                                       &parm3=000128196
5.3
      5.3.2 Declining block rates and fixed            On September 1, 2008, the NCUC submitted
      variable rate designs have been eliminated       a report to the Governor and Legislature on
                                                       rate structures, policies and measures to
                                                       promote renewable energy generation and
                                                   N   demand reduction in NC. The September 1
                                                       report discussed a variety of rate design
                                                       issues including rates that increase demand.
                                                       (See pages 22-26, 47.)

                                                       September 1, 2008 report of NCUC to the
                                                       Governor and Legislature on rate structures,
                                                       policies and measures to promote renewable
                                                       energy generation and demand reduction in
                                                       NC. http://ncuc.commerce.state.nc.us/cgi-
                                                       bin/webview/senddoc.pgm?dispfmt=&itype=
                                                       Q&authorization=&parm2=QAAAAA74280B
                                                       &parm3=000128196
      5.4.1 Time sensitive rates in place        The NCUC’s authority to approve TOU rates
                                                 is codified in section 62-155. TOU rates
                                                 have been in place in NC since the mid-
                                                 1970s. NC’s IOUs offer TOU rates to
                                                 residential, commercial and industrial
                                                 customer classes. The NCUC recently
                                                 reviewed time-based rates in Docket No. E-
                                                 100, Sub 108. In that proceeding, the
                                                 NCUC found that while TOU rates were
                                                 available for residential customers, few
                                                 elected for the TOU option. Due to a variety
                                                 of reasons, including the cost of TOU
                                              Y- meters, the NCUC declined to make TOU
                                                 rates mandatory. Some participants urged
                                                 the NCUC to expand TOU options as AMI
                                                 and other consumer technologies are
                                                 deployed. (See Final Order Declining to
                                                 Adopt Standards, pages 15-21) On
                                                 September 1, 2008, the NCUC submitted a
                                                 report to the Governor and Legislature on
                                                 rate structures, policies and measures to
                                                 promote renewable energy generation and
                                                 demand reduction in NC. The September 1
                                                 report discusses TOU rates at pages 18-20
                                                 and 46-47.
                                                 Chapter 62 of NC statutes.
                                                 http://www.ncleg.net/enactedlegislation/statu
                                                 tes/html/bychapter/chapter_62.html
                                                 Final Order Declining to Adopt Standards in
                                                 Docket No. E-100, Sub 108.
                                                 http://ncuc.commerce.state.nc.us/cgi-
                                                 bin/webview/senddoc.pgm?dispfmt=&itype=
                                                 Q&authorization=&parm2=OAAAAA02270B
                                                 &parm3=000125603
                                             S,R
                                                 NCUC report on rate structures, policies and
                                                 measures to promote renewable energy
                                                 generation and demand reduction in NC,
                                                 September 1, 2008.
                                                 http://ncuc.commerce.state.nc.us/cgi-
                                                 bin/webview/senddoc.pgm?dispfmt=&itype=
                                                 Q&authorization=&parm2=QAAAAA74280B
                                                 &parm3=000128196
5.4
      5.4.2 Usage sensitive rates in place
  5.4


         5.4.3 AMI deployment planned                       In 2007, the NCUC considered a proposed
                                                            federal standard regarding time-based
                                                            metering and communications pursuant to
                                                            EPAct in Docket No. E-100, Sub 108. In that
                                                            proceeding, the NCUC determined that it
                                                            was not necessary for NC to adopt the
                                                            standard because utilities in NC were
                                                            already complying with the standard by
                                                            offering a range of TOU rates. On
                                                            September 1, 2008, the NCUC submitted a
                                                       Y-/P
                                                            report to the Governor and Legislature on
                                                            rate structures, policies and measures to
                                                            promote renewable energy generation and
                                                            demand reduction in NC. The September 1
                                                            report discusses AMI, demand response
                                                            rates and smart grid technology at pages 35-
                                                            39, 41-44 and 48. As discussed at pages 43-
                                                            44, some electric utilities in NC have AMI
                                                            pilot programs in place.

                                                            Order in Docket No. E-100, Sub 108
                                                            declining to adopt standards, August 8,
                                                            2007. http://ncuc.commerce.state.nc.us/cgi-
                                                            bin/webview/senddoc.pgm?dispfmt=&itype=
                                                            Q&authorization=&parm2=OAAAAA02270B
                                                            &parm3=000125603
                                                            NCUC report on rate structures, policies and
                                                            measures to promote renewable energy
                                                        R
                                                            generation and demand reduction in NC,
                                                            September 1, 2008.
                                                            http://ncuc.commerce.state.nc.us/cgi-
                                                            bin/webview/senddoc.pgm?dispfmt=&itype=
                                                            Q&authorization=&parm2=QAAAAA74280B
                                                            &parm3=000128196


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

State Fiscal Policy
         Sales Tax reduction or exemption for energy        In July, 2008, NC established (through the
         efficient products                                 enactment of HB 2436) a “sales tax holiday”
                                                            for certain Energy Star-certified products
                                                            between the first Friday of November and
                                                            the following Sunday. A summary of the
                                                            sales tax holiday can be found at the DSIRE
                                                            URL listed below.
  6.1
  6.1
                                                             HB 2436.
                                                             http://www.ncga.state.nc.us/Sessions/2007/
                                                             Bills/House/PDF/H2436v9.pdf
                                                             DSIRE Summary of Sales Tax Holiday.
                                                             http://www.dsireusa.org/incentives/incentive.
                                                             cfm?Incentive_Code=NC50F&re=1&ee=1

        Investment Tax Credit for energy efficient
  6.2   investments

        State supported low cost financing for               State-supported low interest loans are
        energy efficient investments: buildings (x),         available to nonresidential customers for a
        equipment (y)                                    x,y wide range of efficiency improvements. A
                                                             summary of the state loan program can be
  6.3                                                        found at the DSIRE URL listed below.
                                                             DESIRE summary of state loan program.
                                                             http://www.dsireusa.org/incentives/incentive.
                                                             cfm?Incentive_Code=NC01F&re=1&ee=1

Distributed Generation Policies
        A statewide interconnection policy is in place      The N.C. Utilities Commission (NCUC)
                                                            adopted interconnection standards in June
                                                            2008 similar to FERC standards that apply to
                                                            NC IOUs. There is a standard
                                                            interconnection agreement and three
                                                            interconnection levels: certified inverter-
                                                            based systems up to 10 kilowatts (kW) may
                                                            follow the 10 kW "inverter process" of
                                                            simplified interconnection; systems up to two
                                                            megawatts (MW) may follow the "fast-track
                                                            process;" and systems greater than 2 MW
                                                            must follow the "study process." External
                                                            disconnect switches are not required for
                                                            certified inverter-based systems up to
                                                         Y+
                                                            10 kW, although the utility may require that
                                                            one be installed at a reasonable expense to
                                                            be reimbursed by the utility. Utilities are
  7.1
                                                            authorized to require customers with other
                                                            systems to install an external disconnect
                                                            switch at the customer's expense. The
                                                            following application fees apply: $100 for a
                                                            generating system up to 20 kW; $250 for a
                                                            system larger than 20 kW up to 100 kW; and
                                                            $500 for a system larger than 100 kW up to
                                                            2 MW. An applicant with a generating
                                                            system larger than 2 MW must pay a $1000
                                                            deposit toward the actual cost of the
                                                            feasibility and subsequent studies. The
                                                        Docket No. E-100, Sub 101 can be found
                                                        here, http://ncuc.commerce.state.nc.us/cgi-
                                                        bin/webview/senddoc.pgm?dispfmt=&itype=
                                                        Q&authorization=&parm2=9BAAAA16180B&
                                                    R   parm3=000122299
                                                        SB 3 can be accessed from here,
                                                        http://www.ncga.state.nc.us/Sessions/2007/
                                                    S   Bills/Senate/HTML/S3v6.html
                                                        NCUC Order, Docket No. E-100, Sub 101,
                                                        amending the requirement of external
                                                        disconnects can be found here,
                                                    R   http://ncuc.commerce.state.nc.us/cgi-
                                                        bin/webview/senddoc.pgm?dispfmt=&itype=
                                                        Q&authorization=&parm2=3AAAAA15380B&
                                                        parm3=000122299

      A statewide net metering policy is in place       NC has a statewide net metering policy
                                                        established by NCUC Order, Docket No. E-
                                                        100, Sub 83. The states three IOUs -
                                                        Progress Energy, Duke Energy and
                                                        Dominion North Carolina Power must offer
                                                        net metering to customers that generate
                                                        electricity using PV, wind, biomass
                                                        resources or micro-hydro systems. Systems
                                                        must be interconnected with the utility's
                                                        distribution system first. Residential systems
                                                    Y   up to 20 kW and nonresidential systems up
                                                        to 100 kW are allowed to net meter.
                                                        Customers must switch to a time-of-use tariff
7.2
                                                        to participate in net metering. On-peak
                                                        generation may be used to offset off-peak
                                                        generation. NEG is credited to the
                                                        customer's next bill at the utility's retail rate
                                                        and then granted to the utility annually. The
                                                        limit on overall enrollment is 0.2% of each
                                                        utility's NC retail peak load for the previous
                                                        year.
                                                        The most recent version of NCUC Order,
                                                        Docket No. E-100, Sub 83 can be accessed
                                                    R   here,
                                                        http://www.dsireusa.org/documents/Incentive
                                                        s/NC05Rc.pdf
      A statewide exit fee policy is in place
7.3
      A statewide standby rate policy is in place       North Carolina does not have a statewide
                                                    N
                                                        policy on standby rates
                                                         Progress Energy Carolinas Inc - Standby
                                                         Service Rider SS-33 - standby service is
                                                         provided to customers that contract for a
                                                         specified amount of demand capacity with
                                                         the utility. A demand based reservation
                                                         charge is assessed each month on the
                                                         contract demand. Actual usage is billed
                                                     U
                                                         through energy charges and the higher of
                                                         the reservation charge or the daily demand
                                                         charge. The daily demand charge is
                                                         assessed on the maximum on-peak demand
                                                         multiplied by the number of days of standby
                                                         service use in the month. Rate available at:
7.4                                                      http://www.progress-
                                                         energy.com/aboutenergy/rates/nctariffs.asp
                                                         Duke Energy Corporation - Schedule PG -
                                                         standby service is provided to customers
                                                         with parallel generation equipment at a very
                                                         high demand based rate. A moderate
                                                         reservation fee based on contract demand
                                                         must be paid every month with actual usage
                                                         being charged under the high demand rate
                                                     U - for parallel generation. Billing demand is
                                                         based on the higher of the maximum 15
                                                         minute demand of the month or 75% of the
                                                         contract demand. Rate available at:
                                                         http://www.duke-energy.com/north-carolina-
                                                         large-business/understand-your-
                                                         bill/rates.asp
      As part of resource planning process, CHP          SUMMARY: New IRP rules were approved
      is reviewed and incorporated where effective       in July 2007, requiring ongoing assessment
                                                         of existing and potential demand side
                                                         resources along with energy efficiency. The
                                                         NCUC rule, R8-60, last updated on March
                                                         13, 2008, outlines the resource planning
                                                     N   process. Utilities must file a new IRP by Sept
                                                         1, 2008, and a new IRP every two years,
                                                         thereafter. Updates/revisions to the IRP
                                                         must be filed annually. Concerning data for
                                                         existing and planned electric generating
                                                         facilities, CHP assessment is not directly
                                                         addressed.



7.5
                                                      The newly revised rules can be found as an
                                                      attachment to the Order in Docket E-100,
                                                      Sub 111 at
7.5
                                                      http://ncuc.commerce.state.nc.us/cgi-
                                                      bin/webview/senddoc.pgm?dispfmt=&itype=
                                                 R
                                                      Q&authorization=&parm2=FAAAAA29170B&
                                                      parm3=000125858 and R8-60 can be
                                                      accessed at:
                                                      http://www.ncuc.commerce.state.nc.us/ncrul
                                                      es/Chapter08.pdf.

                                                         Progress Energy Carolinas Inc's IRP reviews
                                                 U+
                                                         and incorporates CHP. The company's IRP
                                                         was filed on September 2, 2008
      http://ncuc.commerce.state.nc.us/cgi-bin/webview/senddoc.pgm?dispfmt=&itype=Q&authorization=&parm2=XAAAAA
                                                         Duke Energy Corporation's IRP assesses
                                                     U+ CHP. The latest IRP was filed on November
                                                         3, 2008.
      http://ncuc.commerce.state.nc.us/cgi-bin/webview/senddoc.pgm?dispfmt=&itype=Q&authorization=&parm2=EAAAAA
NA
        Natural Gas
urce.
effective energy efficiency as a resource




                 NC’s gas utilities are at various stages in
                 implementing EE programs. The applicable cost-
                 benefit analysis for gas EE programs is undefined
                 and evolving. For example, the NCUC required a
                 conservation program filing by Piedmont Natural Gas
                 Company (Piedmont) by Order issued in Docket No.
                 G-9, Sub 550 on October 24, 2008. In the October
                 24th Order, the NCUC directed Piedmont to file
                 annual reports beginning June 15, 2009 that include,
                 among other things “detailed information for each
                 program that will be beneficial in analyzing the
                 effectiveness of having such programs in place, i.e.
                 are such programs worthwhile; are the total costs of
                 each program reasonable in light of the benefits from
             N   the perspective of societal benefits and benefit-cost
                 ratio analyses; and should such programs be
                 continued.” (page 18) The NCUC issued a similar
                 directive to Public Service Company of NC (PSNC)
                 in Docket No. G-5, Sub 495 on October 24, 2008. In
                 the PSNC October 24th Order, the NCUC directed
                 PSNC to file a conservation program proposal and
                 discussed cost-benefit issues that should be
                 included in the proposal (see pages 17-18).
    Order Approving Partial Rate Increase and Requiring
    Conservation Program Filing and Reporting
    Piedmont Gas, Docket No. G-9, Sub 550, November
R   11, 2008. http://ncuc.commerce.state.nc.us/cgi-
    bin/webview/senddoc.pgm?dispfmt=&itype=Q&autho
    rization=&parm2=SAAAAA89280B&parm3=0001282
    68
    Order Approving Partial Rate Increase and Requiring
    Conservation Program Filing and Reporting PSNC
    Gas, G-5, Sub 495, October 24, 2008.
    http://ncuc.commerce.state.nc.us/cgi-
    bin/webview/senddoc.pgm?dispfmt=&itype=Q&autho
    rization=&parm2=RAAAAA89280B&parm3=0001282
    60
    Some gas utilities in NC offer conservation programs
    to residential and commercial customers. As
    discussed under 5.1.1 below, G.S. 62-133.7
    authorizes the NCUC to authorize a customer usage
    tracking (CUT) rate adjustment for conservation
    programs. Section 62-133.7 explicitly excludes
    industrial rate schedules from the CUT mechanism.




N
Chapter 62 of NC statutes.
http://www.ncleg.net/enactedlegislation/statutes/html/
bychapter/chapter_62.html
NOTE for 2009. A detailed description of Piedmont’s
conservation programs can be found in the
Conservation Effectiveness Report it filed on March
31, 2009. Piedmont’s Conservation Effectiveness
Report, March 31, 2009.
http://ncuc.commerce.state.nc.us/cgi-
bin/webview/senddoc.pgm?dispfmt=&itype=Q&autho
rization=&parm2=5AAAAA19090B&parm3=0001232
83
      The delivery structure for gas utility conservation
      programs in NC is evolving. Some gas utilities, like
      Piedmont, have been running conservation
      programs since 2005. Others are just now
      developing conservation programs.




(a)
    On October 24, 2008, Public Service Company of
    NC (PSNC) filed an Application for Approval of
    Conservation Programs. One of the programs
    included in the proposal is a Conservation Education
    program, a summary of which is included as the first
N   attachment to the proposal.




    PSNC proposed conservation programs, October 24,
    2008. http://ncuc.commerce.state.nc.us/cgi-
    bin/webview/senddoc.pgm?dispfmt=&itype=Q&autho
    rization=&parm2=IAAAAA03380B&parm3=00012991
    4
deliver energy efficiency where cost-effective.
                 A customer usage tracking (CUT) rate adjustment
                 mechanism for gas utilities was created as part of
                 SB 3. The CUT is codified at G.S. 62-133.7.
 Senate Bill 3 (Session Law 2007-397).
http://www.ncleg.net/Sessions/2007/Bills/Senate/PD
F/S3v6.pdf
Chapter 62 of NC statutes.
http://www.ncleg.net/enactedlegislation/statutes/html/
bychapter/chapter_62.html




See 4.1.1 above.
           N




cost-effective energy efficiency and modify ratemaking
     All gas companies use a "customer utilization
     tracker" that decouples profits from sales. Gas
     conservation programs are also funded. See Nov. 3,
     2005 Order of the North Carolina Utilities
     Commission, p. 20-24. The NCUC approved in
     November 2005 a 3-year pilot program that
     establishes a set margin per customer per month.
     Differences between authorized and actual revenues
     are trued-up twice annually. Piedmont Natural Gas
     also agreed to contribute $500,000 annually for
     conservation programs. A customer usage tracking
     (CUT) rate adjustment mechanism for gas utilities
     was created as part of SB 3. The CUT is codified at
     G.S. 62-133.7. The CUT mechanism has been
Y-
     approved for Piedmont in Docket No. G-9, Sub 550
     (Order Approving Partial Rate Increase and
     Requiring Conservation Program Filing and
     Reporting, October 24, 2008, pages 19-25) and
     PSNC in Docket No. G-5, Sub 495 (Order Approving
     Partial Rate Increase and Requiring Conservation
     Program Filing and Reporting, October 24, 2008,
     pages 15-23). See links to corresponding Orders
     below. Section 4(c) of Senate Bill 3 directed the
     NCUC to conduct an analysis of rate structures,
     policies and measures in other states, including
     decoupling, should be adopted in North Carolina and
     report its findings by September 1, 2008. The NCUC
     submitted the required report. In the report, the
    Dockets No. G-9, sub 499; G-21, sub 461, G-44, sub
    15; http://ncuc.commerce.state.nc.us/cgi-
    bin/webview/senddoc.pgm?dispfmt=&itype=Q&autho
    rization=&parm2=JAAAAA70350B&parm3=0001232
    85                                    Chapter 62 of
    NC statutes.
    http://www.ncleg.net/enactedlegislation/statutes/html/
    bychapter/chapter_62.html
    Order Approving Partial Rate Increase and Requiring
    Conservation Program Filing and Reporting
    Piedmont Gas, Docket No. G-9, Sub 550, November
    11, 2008. http://ncuc.commerce.state.nc.us/cgi-
    bin/webview/senddoc.pgm?dispfmt=&itype=Q&autho
    rization=&parm2=SAAAAA89280B&parm3=0001282
    68
SRA
    Order Approving Partial Rate Increase and Requiring
    Conservation Program Filing and Reporting PSNC
    Gas, G-5, Sub 495, October 24, 2008.
    http://ncuc.commerce.state.nc.us/cgi-
    bin/webview/senddoc.pgm?dispfmt=&itype=Q&autho
    rization=&parm2=RAAAAA89280B&parm3=0001282
    60
    Senate Bill 3 (Session Law 2007-397).
    http://www.ncleg.net/Sessions/2007/Bills/Senate/PD
    F/S3v6.pdf
    NCUC report on rate structures, policies and
    measures to promote renewable energy generation
    and demand reduction in NC, September 1, 2008.
    http://ncuc.commerce.state.nc.us/cgi-
    bin/webview/senddoc.pgm?dispfmt=&itype=Q&autho



     See 5.1.1 above
 a
                                                              SOUTH CAROLINA
                                                                  Electric
Recommendation 1: Recognize energy efficiency as a high priority energy resource.
         EE is established as a high priority resource,
         equivalent or superior to supply resources




                                                          N


  1.1




                                                          S



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

                                                          N


  1.2



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


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

         1.4.1 EE is a biddable commodity                 N

         1.4.2 Bids occur in the following markets:
  1.4    (a) energy, (b) capacity, or (c) other
        State Implementation Plans (SIPs) include
                                                     N
  1.5   EE set-asides

Recommendation 2: Make a strong, long-term commitment to implement cost-effective energy efficiency
        Efficiency commitment is in statute


                                                     Y-

  2.1


                                                     S




                                                     N
        The TRC or Societal Cost Test is used to
  2.2
        evaluate EE programs

                                                     S

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



        2.3.2 Established EE programs reach all
        customer classes




  2.3


                                                     N
                                                       S




      Funding requirements for all long-term, cost-
      effective EE have been established
                                                       N
2.4

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

      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
2.5   2.5.3 Energy Efficiency can be used to fulfill
      requirements of an RPS or similar standard


      2.5.4 Expected Capacity Savings (Annual
      MW in 2006)

      2.5.5 Energy Savings (Annual MWh in
      2006)

      2.6.1 A robust M&V process has been
      established


                                                       N




      2.6.1.1   M&V is adequately funded


      2.6.1.2 Energy savings are used to
      measure performance
2.6
      2.6.1.3 M&V is done according to a
      defined schedule
2.6


       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

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




       2.7.1 EE delivery structure has been
       established
                                                         N


2.7

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

       Resource plans are regularly updated

                                                         Y
2.8

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


                                                         Y/N




2.9

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




       Appliance and Equipment Efficiency
       Standards are in place and regularly              N
2.10
       updated
        Energy efficiency is a high priority in state
        buildings and state funded buildings as
        evidenced in capital planning and enabling
        performance contracts




                                                        Y


 2.11




                                                        S


Recommendation 3: Miscellaneous Policies
        3.1.1 Public education programs on EE are
        in place. (See Guide Tab for Y/N criteria.)
                                                        N




  3.1
        3.1.2 Process is in place, such as a state
        or regional collaborative, to pursue EE as a
                                                        N
        high-priority resource. (See Guide Tab for
        Y/N criteria.)
        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.

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


Recommendation 4: Promote sufficient, timely, and stable program funding to deliver energy efficiency w
         4.1.1 Cost recovery process exists




                                                            Y




  4.1




                                                            S


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

         4.1.3 Funding is for multi-year periods

         A base energy efficiency spending level
  4.2    exists, with opportunity to justify higher level
         % of net (retail) utility revenue presently
         used for energy efficiency [no unit = %; m/k
  4.3    = mils/kWh]



         Funds from carbon trading program support
         EE
                                                            N

  4.4



Recommendation 5: Modify policies to align utility incentives with the delivery of cost-effective energy effi
         5.1.1 Utility throughput incentive is
         addressed and disincentives are removed


                                                       N


  5.1

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

         5.2.1 Utility/shareholder EE incentives are
                                                       N
         provided
  5.2    5.2.2 Incentives exceed amount of lost
         revenues

         5.3.1 Impact on EE is a consideration when
         designing retail rates

   5.3   5.3.2 Declining block rates and fixed
         variable rate designs have been eliminated


         5.4.1 Time sensitive rates in place           Y-

         5.4.2 Usage sensitive rates in place

         5.4.3 AMI deployment planned
  5.4


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

State Fiscal Policy
         Sales Tax reduction or exemption for energy
         efficient products




  6.1
  6.1                                                     S




         Investment Tax Credit for energy efficient
  6.2    investments

         State supported low cost financing for
         energy efficient investments: buildings (x),
         equipment (y)
  6.3
         New or reorganized energy policy agency

Distributed Generation Policies
         A statewide interconnection policy is in place




                                                          Y+
   7.1




                                                          R

         A statewide net metering policy is in place
                                                          N




   7.2
                                                          U+




                                                          U-
         A statewide exit fee policy is in place
   7.3
         A statewide standby rate policy is in place
                                                          N
                                                     U-




7.4




                                                     U-




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



                                                     A


7.5
                                                     U



                                     http://dms.psc.state.sc.us/dockets/dockets.cfc?Method=DocketDetail&DocketID=96


                                                     U


                                     http://dms.psc.state.sc.us/dockets/dockets.cfc?Method=DocketDetail&DocketID=95
                     SOUTH CAROLINA
                                 Electric                                   Natural Gas
fficiency as a high priority energy resource.
           State policy regarding EE is codified at SC Code
           section 48-52-10 et seq. Subsection 48-52-210 (A)
           provides in part that "[i]t is the policy of this State to
           have a comprehensive state energy plan that
           maximizes to the extent practical environmental
           quality and energy conservation and efficiency, and
           minimizes the cost of energy throughout the State."
           Subsection 48-52-210 (B) (3) provides that the               N
           purpose of the plan is to "'[e]nsure that demand-side
           options are pursued whenever economically and
           environmentally practical."




           Info about workshops.
           http://dms.psc.sc.gov/NDIs/NDIs.cfc?Method=NDIDet
           ail&NDIID=9                                      Section     S
           48-52-10 et seq.
           http://www.scstatehouse.gov/CODE/t48c052.htm
           "IRP" is defined at SC Code, subsection 58-37-10 (2).
           SC Code section 58-37-40 requires electric utilities to
           prepare IRPs, which are submitted to the State
           Energy Office. The State Energy Office has no
           regulatory control over the IRP process, and the PSC         N
           reviews the IRPs only. DSM is included in the IRPs,
           but minimally. Each jurisdictional electric utility must
           submit an IRP every three years and plans must be
           updated annually.

           SC Code, section 58-37-10 et seq.
           http://www.scstatehouse.gov/code/t58c037.htm
           South Carolina is working to include an EE/RE set
           aside under its CAIR regulations.

-term commitment to implement cost-effective energy efficiency as a resource
           As discussed in 1.1, state policy regarding EE is
           codified at SC Code section 48-52-10 et seq. SC
           Code section 58-37-20 allows the Commission to
           establish policies encouraging utilities to invest in      Y-
           conservation programs. Certain conditions must be
           met. See section 5.1 below for additional discussion
           about EE in SC statute.
           SC Code section 48-52-10 et seq.
           http://www.scstatehouse.gov/CODE/t48c052.htm SC
                                                                      S
           Code, section 58-37-10 et seq.
           http://www.scstatehouse.gov/code/t58c037.htm
           The definition of IRP includes requires that the plan
           include "a brief description and description cost-
           benefit analysis, if available, of each option." (See SC
           Code subsection 58-37-10 (2)). The PSC does not
           currently require any particular test.
           SC Code, section 58-37-10 et seq.
           http://www.scstatehouse.gov/code/t58c037.htm

           Progress Energy Carolinas is in the process of
           developing a portfolio of EE programs. As part of that
           activity, Progress has commissioned a DSM and EE
           portntial study,


           SC Code section 58-37-20 provides that the SC PSC
           "may adopt procedures that encourage electric utilities
           and public utilities providing gas services subject to
           the jurisdiction of the commission to invest in cost-
           effective energy efficient technologies and energy
           conservation programs." SC's three IOU electric
           utilities have long offered a variety of existing DSM
           and EE programs and proposed additional programs
           in their recent IRP filings. The SC Energy Office
           issues an annual DSM report. The 2007 report
           provides a summary of the programs offered by all
           electric utrilities in SC. On September 28, 2007, Duke     N
           Energy Carolina's applied to the SC PSC for approval
           of an EE plan (called "Save-A-Watt") that includes an
           EE efficiency rider and a portfolio of EE programs.
           Duke's filing was assigned Docket No. 2007-358-E.
           Hearings were held in Docket No. 2007-358-E in
           February 2008. In November 2008, Duke requested
           that the PSC expedite the processing of the case. By
           Order issued on December 23, 2008, the PSC
           directed the parties to file briefs in the proceeding by
           January 15, 2009.
SC Code, section 58-37-10 et seq.
http://www.scstatehouse.gov/code/t58c037.htm SC
Energy Office issues an annual DSM report for 2007.
http://www.energy.sc.gov/publications/2007%20DSM
%20Report%20Final%207-31-08.pdf                         S
December 23, 2008 Order in Docket No. 2007-358-E.
http://dms.psc.sc.gov/pdf/orders/8DFA07D2-B00D-
137E-3CDB0119050A1C84.pdf




As discussed in 2.3.2 above, Duke Energy Carolina's
applied to the SC PSC for approval of an EE plan
(called "Save-A-Watt") that includes an EE efficiency
rider and a portfolio of EE programs. Duke's filing
                                                        N
was assigned Docket No. 2007-358-E. M&V issues
are being considered in that docket and the PSC is
still processing Duke's filing.
As discussed in 1.2.1, SC's three jurisdictional electric
utilities are required to file IRPs and some of those
plans include DSM and EE programs. In addition, the
                                                            N
PSC is currently considering Duke's "Save-A-Watt"
plan in Docket No. 2007-358-E (See 2.3.2 above)




Pursuant to SC Code section 58-37-40, IRPs must be
submitted to the State Energy Office every 3 years
and updated annually.

SC Code, section 58-37-10 et seq.
http://www.scstatehouse.gov/code/t58c037.htm
The current edition of Appendix J (Code of Energy
Cnservation in new building construction) to the
Standard Building Code of the Southern Building
Code Congress International only approves
prescriptive R-values and is most comparable to the
1992 MEC in stringency. There is no set schedule for
the code change cycle. See BCAP summary for
additional details.
BCAP summary. http://bcap-energy.org/node/93


The 2006 IECC is mandatory in all jurisdictions across
thre state. COMcheck can be used to show
compliance. There is no set schedule for the code
change cycle. See BCAP summary for additional
details.

BCAP summary. http://bcap-energy.org/node/93
     The South Carolina Energy Efficiency Act addresses
     state government energy conservation. The statute
     (SC Code section 48.52.6) directs the State Energy
     Office to develop energy efficient codes/standards for
     state-owned and leased buildings, including public
     school buildings, and requires state agencies and
     school districts to adhere to these codes. In 2008,
     the SC Legislature enaced HB 4766 which requires all
     state agencies and public school districts to file
     energy conservation plans with the State Energy
     Office. The goal of the plans should be to reduce
     energy use 1% annually for 5 years beginning July 1,
     2008 and with an ultimate goal of reducing energy use
     by 20% by 2020 relative to 2000 levels.

     SC Code section 48.52.6.
     http://www.scstatehouse.net/code/t48c052.htm H.B.
     4766. http://www.scstatehouse.gov/sess117_2007-
     2008/bills/4766.htm
es
     The SC Energy Office has a link that describes to
     Office's EE education activities. (see below) The
     Energy Office's EE educatinal activities are also
                                                              N
     summarized in the Office's Strategic Energy Action
     Plan for FY 2006-2007.

     SC Eneregy Office EE education.
     http://www.energy.sc.gov/index.aspx?m=4       Energy
     Office's Strategic Energy Action Plan for FY 2006-
     2007. http://www.energy.sc.gov/publications/06-
     07%20Strategic%20Plan.pdf



                                                              N
imely, and stable program funding to deliver energy efficiency where cost-effective.
           SC Code section 58-37-20 requires that any
           procedures adopted by the Commission to encourage
           utility investment in conservation also include cost-
           recovery provisions, allow a return on investment at
           least as high as supply side measures, and ensure
           that utility net income is at least as high as it would
           have been without the demand-side measures. As a
           practical matter, cost recovery is done on a case-by-
                                                                     N
           case basis during regular rate cases. As discussed in
           2.3.2 above, on September 28, 2007, Duke Energy
           Carolina's applied to the SC PSC for approval of an
           EE plan (called "Save-A-Watt") that includes an EE
           efficiency rider and a portfolio of EE programs.
           Duke's request is still pending before the SC PSC in
           Docket No. 2007-358-E.

           SC Code, section 58-37-10 et seq.
           http://www.scstatehouse.gov/code/t58c037.htm
           Docket No. 2007-358-E.
           http://dms.psc.sc.gov/dockets/dockets.cfc?Method=D
           ocketDetail&DocketID=102156
           See 4.1.1 above.




           The South Carolina Climate, Energy, and Commerce
           Committee issued a final report in July 2008. The
           report provides a summary of climate control activities
           within SC.
           South Carolina Climate, Energy, and Commerce
           Committee final report July 2008.
           http://www.scclimatechange.us/ewebeditpro/items/O6
           0F19029.PDF
gn utility incentives with the delivery of cost-effective energy efficiency and modify ratemaking practices
SC Code section 58-37-20 requires that any
procedures adopted by the Commission to encourage
utility investment in conservation also include cost-
recovery provisions, allow a return on investment at
least as high as supply side measures, and ensure
that utility net income is at least as high as it would
have been without the demand-side measures.

SC Code, section 58-37-10 et seq.
http://www.scstatehouse.gov/code/t58c037.htm




TOU rates are available for some customers in SC.



Duke Power has proposed to insatll 800,000 smart
meters in SC on an unidentified implementation
timeframe. Duke's proposal is pending.




SC has adopted a sales tax cap on energy efficient
manufactured homes. The applicable section in the
SC Code is 12-36-2110. See DSIRE summary for
details The SC Energy Office has additional
information about the sales tax cap on its web site.
DSIRE summary.
http://www.dsireusa.org/incentives/incentive.cfm?Ince
ntive_Code=SC27F&re=1&ee=1                      SC
Code section 12-36-2110.
http://www.scstatehouse.gov/code/t12c036.htm
SC Energy Office web page on sales tax exemption.
http://www.energy.sc.gov/index.aspx?m=3&t=24




The SC PSC has simplified interconnection standards
for small DG, PSC Order 2006-772-E. Renewable-
energy systems and other DG up to 20 kW in capacity
for residential systems and 100 kW in capacity for non-
residential systems are allowed to interconnect. There
is a $100 or $250 application fee. Residential systems
must carry $100,000 in insurance and non-residential
systems must carry $300,000. An external disconnect
is required.

PSC Order, Docket No. 2005-387-E,
http://www.dsireusa.org/documents/Incentives/SC05R
.pdf
South Carolina does not have a statewide net
metering policy. However, the SC PSC does have a
docket open - docket #2005-385E to establish net
metering standards.
South Carolina Public Service Authority (Santee
Cooper), Public Utility - Santee Cooper's net billing
program will begin October 1, 2007. See the following
for more information,
https://www.santeecooper.com/portal/page/portal/Sant
eeCooper/AboutUs/Newsroom/2007%20PDFs/08270
8_Net%20Billing%20Pilot%20Program.pdf
Duke Energy Corporation, IOU - does not have a net
metering policy in South Carolina.


South Carolina does not have a statewide policy on
standby rates
            South Carolina Pub Serv Auth - Rider L-96-SB -
            standby service is provided to customers that contract
            for a specified amount of demand capacity with the
            utility. A demand based reservation charge is
            assessed each month. A high standby demand
            charge is assesed on usage above the contract
            demand. Actual usage is billed through a regular tariff
            with a high demand and moderate energy charge.
            Billing demand is based on the higher of the
            maximum demand of the month or 80% of the
            contract demand. Rate available at:
            https://www.santeecooper.com/portal/page/portal/Sant
            eeCooper/MyBusiness/IndustrialRates

            Duke Energy Corporation - Schedule PG - standby
            service is provided to customers with parallel
            generation equipment at a very high demand based
            rate. A moderate reservation fee based on contract
            demand must be paid every month with actual usage
            being charged under a high demand rate for parallel
            generation. Billing demand is based on the higher of
            the maximum 30 minute demand of the month or 75%
            of the contract demand. Demand charges do not
            apply in the billing months of October, November,
            April, or May. Rate available at: http://www.duke-
            energy.com/rates/south-carolina.asp
            South Carolina Code SECTION 58-37-40 requires
            electric utilities to prepare IRPs, which are submitted
            to the State Energy Office. Assessment of CHP is not
            specified in the IRP process. New plans must be filed
            every three years and updated annually.

            http://www.scstatehouse.gov/CODE/t58c037.docx
            South Carolina Public Service Authority (Santee
            Cooper), Public Utility does not address CHP in its
            IRP. IRP's must be filed every three years, and
            updated annually. SCE&G's IRP for 2008 and other
            years can be found under Docket 2006-103-E.

dms.psc.state.sc.us/dockets/dockets.cfc?Method=DocketDetail&DocketID=96134
             Duke Energy Corporation's SC IRP-related
             documents for the years 2005-2008 can be found
             under Docket 2005-356-E. Duke's 2008 IRP was filed
             as confidential.
dms.psc.state.sc.us/dockets/dockets.cfc?Method=DocketDetail&DocketID=95914
                   Natural Gas

State policy regarding EE is codified at SC Code
section 48-52-10 et seq. Subsection 48-52-210 (A)
provides in part that "[i]t is the policy of this State to
have a comprehensive state energy plan that
maximizes to the extent practical environmental
quality and energy conservation and efficiency, and
minimizes the cost of energy throughout the State."
Subsection 48-52-210 (B) (3) provides that the
purpose of the plan is to "'[e]nsure that demand-side
options are pursued whenever economically and
environmentally practical."




http://dms.psc.sc.gov/NDIs/NDIs.cfc?Method=NDIDe
tail&NDIID=9                           Section 48-
52-10 et seq.
http://www.scstatehouse.gov/CODE/t48c052.htm
IRP is electric only.
gy efficiency as a resource
           As discussed in 1.1, state policy regarding EE is
           codified at SC Code section 48-52-10 et seq. SC
           Code section 58-37-20 allows the Commission to
           establish policies encouraging utilities to invest in
           conservation programs. Certain conditions must be
           met. See section 5.1 below for additional discussion
           about EE in SC statute.
           SC Code section 48-52-10 et seq.
           http://www.scstatehouse.gov/CODE/t48c052.htm
           SC Code, section 58-37-10 et seq.
           http://www.scstatehouse.gov/code/t58c037.htm




           SC Code section 58-37-20 provides that the SC PSC
           "may adopt procedures that encourage electric
           utilities and public utilities providing gas services
           subject to the jurisdiction of the commission to invest
           in cost-effective energy efficient technologies and
           energy conservation programs." The SC Energy
           Office issues an annual DSM report. The 2007
           report provides a summary of the programs offered
           by all gas utrilities in SC. The 2007 reports notes that
           "[n]one of the natural gas providers in the state
           reported programs that are intended to reduce
           demand. This is no different than recent years'
           reporting." (See report at 32.)
SC Code, section 58-37-10 et seq.
http://www.scstatehouse.gov/code/t58c037.htm SC
Energy Office issues an annual DSM report for 2007.
http://www.energy.sc.gov/publications/2007%20DSM
%20Report%20Final%207-31-08.pdf
y efficiency where cost-effective.




e energy efficiency and modify ratemaking practices
                                                                                    TENNESSEE
                                                                         Electric
Recommendation 1: Recognize energy efficiency as a high priority energy resource.
         EE is established as a high priority          TVA's Strategic Plan 2007 calls for an increased
         resource, equivalent or superior to           emphasis on energy efficiency. TVA's 2007 Strategic
         supply resources                              Plan calls for an improvement in energy efficiency
                                                       efforts over the next five years. In June 2007, the
                                                       Tennessee Legislature adopted House Joint
                                                       Resolution No. 472. Among other things, the Joint
                                                       Resolution noted that "Tennessee has the highest
                                                       rate of residential per capita energy usage in the
                                                       United Sates" and that "energy conservation can
                                                       easily meet and exceed the growing demand for
                                                 N     electricity in Tennessee." The Joint Resolution urged
                                                       the TVA "to make large-scale efforts to pursue
                                                       energy efficient means of reducing power and to
                                                       consider such energy efficient means when
                                                       addressing the growing demand for elestricity in the
                                                       Tennessee River Valley." On March 19, 2008, the
                                                       Governor issued Executive Order Number 54 that
  1.1                                                  established a Task Force on Energy Policy. The Task
                                                       Force was charged with developing and delivering a
                                                       state energy plan by December 1, 2008 for
                                                       consideration by the Legislature in 2009.
         NOTE: The Tennessee Valley                    TVA's 2007 Strategic Plan.
         Authority (TVA) is the largest                http://www.tva.gov/stratplan/
         provider of electricity in the state
         and it is not regulated by the
         Tennessee Regulatory Authority
         (TRA). Other electric utilities are
         generally either coops or munis
         and therefore unregulated by the
         TRA.
                                                       House Joint Resolution No. 472.
                                                       http://state.tn.us/sos/acts/105/resolutions/HJR0472.p
                                                S,EO   df                       Executive Order No. 54.
                                                       http://www.tnecd.gov/pdf/energy/ExecutiveOrder_54.
                                                       pdf
         1.2.1 EE is integrated into an                On May 19, 2008, the TVA announced that the TVA
         active IRP, portfolio management,             Board had approved core recommendations by the
         or other planning process                     Leadership Group of the National Action Plan for
                                                       Energy Efficiency as the guiding principles for further
                                                 N     developing TVA's Draft Energy Efficiency and
                                                       Demand Response Plan. The plan proposes
                                                       reducing the growth in peak demand by up to 1,400
                                                       MW by the end of 2012.
  1.2
                                                       Summary of TVA Efficiency and Demand Response
                                                       Plan.
                                                       http://www.tva.gov/news/releases/aprjun08/baord_ap
                                                       proves.htm
         1.2.2 Efficiency is procured as a
         resource for default                    N
         service/standard offer customers
         EE is an alternative to transmission
         based on a long-term transparent       N
  1.3    IRP or transmission system plan


         1.4.1 EE is a biddable commodity           PJM conducts a regional planning process for 13
                                                    states and DC, including a very small portion of TN.
                                                    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
                                                N   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,
  1.4                                               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.
                                                    PJM Report filed 12 12 08
                                                    http://elibrary.ferc.gov/idmws/File_list.asp?document_
                                                R   id=13672172                               PJM tariff
                                                    filing to implement proposed changes to RPM filed 12
                                                    12 08
         1.4.2 Bids occur in the following
         markets: (a) energy, (b) capacity,
         or (c) other

         State Implementation Plans (SIPs)
         include EE set-asides                  N
  1.5

Recommendation 2: Make a strong, long-term commitment to implement cost-effective energy efficiency a
         Efficiency commitment is in statute        As discussed in 1.1 above, the Tennessee
                                                    Legislature adopted House Joint Resolution No. 472
                                                    in June 2007. Among other things, the Joint
                                                    Resolution urged the TVA "to make large-scale
                                                N   efforts to pursue energy efficient means of reducing
  2.1                                               power and to consider such energy efficient means
                                                    when addressing the growing demand for electricity in
                                                    the Tennessee River Valley."
                                                    House Joint Resolution No. 472.
                                                S   http://state.tn.us/sos/acts/105/resolutions/HJR0472.p
                                                    df
         The TRC or Societal Cost Test is           TRC is one of the tests used by TVA to evaluate EE
                                                Y   programs.
         used to evaluate EE programs
  2.2                                               According to comments on TN grid from Michelle
                                                    Rodriguez Martin of TVA.
      2.3.1 Potential for cost-effective
      EE has been established through a     N
      potential study

      2.3.2 Established EE programs             The portfolio of EE programs offered by TVA is
      reach all customer classes                expanding. TVA currently offers some EE programs
                                                to TN customers and maintians an "energy right" web
                                                site that summarizes its offerings. As discussed in
                                                1.1 above, TVA adopted a Strategic Plan in 2007.
                                                That plan calls for TVA, working in conjunction with
                                            N   local power distributorrs and various stakeholders, to
                                                become a leader in EE improvements and peak
2.3
                                                reduction. On May 19, 2008, the TVA announced
                                                that the TVA Board had approved an Energy
                                                Efficiency and Demand Response Plan. That plan
                                                proposes reducing the growth in peak demand by up
                                                to 1,400 MW by the end of 2012.

                                                TVA energy right web site.
                                                http://www.energyright.com/              TVA's 2007
                                                Strategic Plan. http://www.tva.gov/stratplan/
                                                Summary of TVA Efficiency and Demand Response
                                                Plan.
                                                http://www.tva.gov/news/releases/aprjun08/baord_ap
                                                proves.htm

      Funding requirements for all long-
      term, cost-effective EE have been     N
2.4
      established

      2.5.1 Quantitative MW and MWh             TVA has set a goal of reducing the growth in power
      savings goals have been                   demand in the Tennessee Valley by the end of 2012
      established and are producing             by 1,400 MW.
      incremental investment.
                                                TVA June 16, 2008 press release.
                                                http://www.tva.gov/news/releases/aprjun08/ee_home
                                                s.htm
      2.5.2 Goals are established: (a)          See 1.2.1 above.
      connection with IRP or other
      planning process; (b) as part of an
      EEPS or similar system; (c) as part
      of program approval and budget-
2.5   setting process; (d) other

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

      2.5.4 Expected Capacity Savings
      (Annual MW in 2006)


      2.5.5 Energy Savings (Annual
      MWh in 2006)
      2.6.1 A robust M&V process has
      been established                        N


      2.6.1.1 M&V is adequately
      funded
      2.6.1.2 Energy savings are used
      to measure performance


      2.6.1.3 M&V is done according to
      a defined schedule
2.6
      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


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


      2.7.1 EE delivery structure has                 See 1.2.1 above. TVA delivers its suite of residential,
      been established                                commercial and major industrial energy efficiency
                                                      programs through its partnership with local
                                                      distributors of TVA power. In addition, TVA has
                                                      created a distributor delivery organization to assist
                                              N       local power companies in the implementation of
                                                      energy efficiency programs. TVA also created a
                                                      Preferred Partners Network for commercial and
                                                      industrial trade allies and has expanded its Quality
2.7                                                   Contractor Network for HVAC contractors to include
                                                      weatherization contractors.
                                                      According to comments on TN grid from Michelle
                                                      Rodriguez Martin of TVA.
      2.7.2 Delivery is via: (a) utility
      administration; (b) third-party
      administration; or (c) government    (a), (c)
      agency

      Resource plans are regularly                    According to comments on TN grid from Michelle
      updated                                         Rodriguez Martin of TVA, TVA reviews its resource
                                              N       plans annually. The comments don't indicate whether
2.8                                                   the annual reviews include actual updates to the
                                                      resource plans.
        2.9.1 Building Energy Codes for               2003 IECC mandatory statewide; can use REScheck
        residential buildings are in place            to show compliance. Jurisdictions can adopt more
        and regularly updated                         stringent code. There is no set code change cycle.
                                                Y/N   The most recent update was effective July 2003. The
                                                      next update to the 2003 IECC will be effective
                                                      January 1, 2009. See BCAP summary for more
                                                      details.summary for TN. http://bcap-
                                                      BCAP
                                                      energy.org/node/95
  2.9   2.9.2 Building Energy Codes for               ASHRAE 90-A-1980 and 90-B-1975 statewide,
        commercial buildings are in place             voluntary. Jurinsdictions can adopt more stringent
        and regularly updated                         code; IECC 2000 and 2001 amendments are an
                                                N/N   option. There is no set code change cycle. The most
                                                      recent update was effective July 2003. The next
                                                      update to the 2003 IECC will be effective January 1,
                                                      2009. See BCAP summary for more details.
                                                      BCAP summary for TN. http://bcap-
                                                      energy.org/node/95
        Appliance and Equipment
        Efficiency Standards are in place       N
 2.10   and regularly updated

        Energy efficiency is a high priority          On March 19, 2008, the Governor signed Execuitive
        in state buildings and state funded           Order 54, which aims to reduce energy consumption
        buildings as evidenced in capital             by state agencies. EO 54 also established the
        planning and enabling                         Governor's Task Force on Energy Policy. In
        performance contracts                         December 2009, the Governor signed Executive
                                                      Executive Order 54.
                                                      http://www.tnecd.gov/pdf/energy/ExecutiveOrder_54.
                                                      pdf
 2.11                                                 Executive Order 59.
                                                      http://www.tennesseeanytime.org/governor/AdminCM
                                                EO    SServlet?action=viewFile&id=1313
                                                      Governor’s energy PR web site.
                                                      http://www.tennesseeanytime.org/energy/ TN Energy
                                                      Office’s performance contracting site.
                                                      http://www.energyservicescoalition.org/resources/arc
                                                      hive/states/TN.htm
Recommendation 3: Miscellaneous Policies
        3.1.1 Public education programs
        on EE are in place. (See Guide          N
        Tab for Y/N criteria.)

        3.1.2 Process is in place, such as            This is the primary goal of the Southeast Energy
        a state or regional collaborative, to         Efficiency Alliance (SEEA), of which TVA is a
        pursue EE as a high-priority            N     founding - and active - member.
  3.1   resource. (See Guide Tab for Y/N
        criteria.)
        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.
         75% of state access to ENERGY
         STAR New Homes                         Y
  3.2    What proportion is due to                  Middle Tennessee Electric, Tennessee Valley
         regulated utility program? (who is         Authority (TVA), Caney Fork Electric Cooperative,
         sponsor)                                   Inc., Fort Loudoun Electric Cooperative
         75% of state access to Home
         Performance with ENERGY                N
         STAR?
         What proportion is ue to regulated
         utility program? (who is sponsor)
Recommendation 4: Promote sufficient, timely, and stable program funding to deliver energy efficiency wh
         4.1.1 Cost recovery process                TVA can adjust rates as often as monthly to assure
         exists                                     (a) revenues to TVA are adequate to meet the
                                                    requirements of the TVA Act and the tests and
                                                N   provisions of TVA's bond resolutions and (b)
                                                    revenues to TVA's distributors are adequate to
                                                    compensate for any corresponding changes in the
                                                    distributor wholesale power costs.
  4.1
         4.1.2 Recovery occurs via: (a)             See 4.1.1 above.
         rider; (b) regular rate case; or (c)
         system benefits charge


         4.1.3 Funding is for multi-year
         periods                                N


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


         % of net (retail) utility revenue
         presently used for energy              N
  4.3    efficiency [no unit = %; m/k =
         mils/kWh]
         Funds from carbon trading
         program support EE                     N
  4.4

Recommendation 5: Modify policies to align utility incentives with the delivery of cost-effective energy effic
         5.1.1 Utility throughput incentive
         is addressed and disincentives are     N
         removed




  5.1

         5.1.2 Method used is: (a)
         decoupling; (b) lost revenue
         recovery; or (c) non-utility
         implementaion of EE
         5.2.1 Utility/shareholder EE
         incentives are provided               N

  5.2    5.2.2 Incentives exceed amount
         of lost revenues


         5.3.1 Impact on EE is a
         consideration when designing retail
         rates

   5.3
         5.3.2 Declining block rates and
         fixed variable rate designs have
         been eliminated

         5.4.1 Time sensitive rates in             TVA delivers power through contractual
         place                                     arrangements with the 158 local distributors of TVA
                                                   power across its seven-state service territory, of
                                                   which Tennessee is the largest area served. All
                                               N   distributors of TVA have TOU rates for customers
                                                   with electric power demands in excess of 5,000 kW.
                                                   Twenty-two distributors currently offer TOU rates to
                                                   customers with power demands of less that 5,000
                                                   kW. TVA is considering a variety of new prrograms
                                                   for 2009.
         5.4.2 Usage sensitive rates in
         place
  5.4
         5.4.3 AMI deployment planned              Several of TVA's distributors have implenmented
                                                   various AMR and AMI solutions. A new TVA
                                                   organization, called "Energy Efficiency and Demand
                                               N   Response," was created in July 2008. The
                                                   organization is intended to provide leadership in the
                                                   TVA's smart grid activities. TVA is planning to
                                                   impement several smart grid pilots in 2009.
                                                   http://www.tva.gov/purpa/smart_metering.htm
         5.4.4 Other mechanisms exist
         (e.g., on-bill financing, benefit
         sharing)

State Fiscal Policy
         Sales Tax reduction or exemption
  6.1    for energy efficient products

         Investment Tax Credit for energy
  6.2    efficient investments

         State supported low cost financing        Low interest loans are available for efficiency
         for energy efficient investments:     y   improvements in schools and local governments.
         buildings (x), equipment (y)
  6.3                                              http://www.state.tn.us/ecd/energy_lgelp.htm
  6.3
         New or reorganized energy policy
         agency

Distributed Generation Policies
         A statewide interconnection policy        Tennessee does not have statewide interconnection
                                              N
         is in place                               standards.
                                                   The Tennessee Valley Authority (TVA) adopted
                                                   interconnection standards outlined in the Energy
                                                   Policy Act of 2005 (EPAct 2005). The standards can
                                                   be found here:
                                                   http://www.oatioasis.com/tva/tva_docs.htm. TVA,
                                                   through the Generation Partners program, has
                                                   interconnection guidelines for renewable energy
                                                   (solar, wind, low impact hydropower, and biomass)
                                                   Distributed Generation (DG) systems between 500W -
                                                   1 MW. These guidelines are based on IEEE, UL, and
                                                   NEC codes and standards. Each customer must
                                              U    submit an interconnection application to their local
   7.1                                             power company. The local power company will
                                                   determine whether the project can be fast-tracked or
                                                   if the project must undergo a feasibility study process
                                                   to determine the impacts on the distribution system.
                                                   Individual local power companies may alter or revise
                                                   the proposed Interconnection Procedures and
                                                   Interconnection Agreement guidelines drafted by
                                                   TVA, in order to better specify the local guidelines or
                                                   process. More information is available here:
                                                   http://www.tva.gov/greenpowerswitch/partners/index.
                                                   htm
                                                   Nashville Electric Service, Public Utility, generally
                                                   follows the TVA inerconnection standards. The utility
                                              U    participates in the TVA Generation Partners program.
                                                   More information can be found here:
                                                   http://www.nespower.com/generation_partners.aspx
                                                   City of Memphis, Public Utility, generally follows the
                                                   TVA inerconnection standards. The utility participates
                                                   in the TVA Generation Partners program. More
                                              U
                                                   information can be found here:
                                                   http://www.mlgw.com/frameset.php?head=comm&co
                                                   ntent=greenpower
         A statewide net metering policy is        Tennessee does not have statewide net metering
         in place                                  standards.
                                                   TVA, through the Generation Partners program, has
   7.2
                                                   implemented a "dual" metering arrangement in which
                                              N    TVA will pay the end use customer for 100% of their
                                                   renewable energy generation via a separate
                                                   generation meter installed at the site. The
                                                   Generation Partners program is currently being
                                                   applied by more than half of the TVA power
                                                   distributors.
                                                   Nashville Electric Service, Public Utility participates in
                                              U-   the TVA Generation Partners program for renewable
                                                   energy generation.
                                                City of Memphis, Public Utility participates in the TVA
                                           U-   Generation Partners program for renewable energy
7.3                                             generation.
      A statewide exit fee policy is in
      place

      A statewide standby rate policy is        Tennessee does not have a statewide policy on
                                           N
      in place                                  standby rates
                                                Nashville Electric Service - there is no standard
                                                standby rate, customers seeking standby service
                                                would be charged under a regular tariff or have an
7.4                                             individual contract with the utility if they are deemed
                                                to be large enough. General service schedule has
                                           U
                                                high demand and moderate energy rates. Billing
                                                demand is typically based on the higher of the
                                                maximum 30 minute demand of the month or 30% of
                                                the contract demand. Rate available at:
                                                http://www.nespower.com/comm_power_rates.aspx
                                                Memphis Light, Gas and Water - standby energy
                                                service is delivered through Memphis Light however
                                                the energy supply must be contracted for through
                                                TVA. TVA charges a moderate reseravation fee
                                           U-   based on contract demand, however Memphis Light
                                                charges a fairly high demand charge for delivery.
                                                Energy charges are relatively high as well. Rate
                                                available at:
                                                http://www.mlgw.com/SubView.php?key=comm_genr
7.5                                             ateinfo
      As part of resource planning              TN does not have a formal IRP process. However,
      process, CHP is reviewed and         N    TVA has recently initiated an IRP process (see link
      incorporated where effective              below for details).



                                                http://www.tva.gov/environment/reports/irp/index.htm
SEE
                                     Natural Gas

          The Tennessee Regulatory Authority Chairman, Eddie Robertson,
          initiated a task force in 2006 to examine issues related to natural gas
          energy efficiency. (Virtually all electricity is provided by TVA, limiting
          the Authority's jurisdiction over electric utilities.)




      N




          http://www.state.tn.us/tra/pressr/2006/Home%20Energy%20Conservati
          on.pdf




      N
ve energy efficiency as a resource



            N




            N
N
N
N




N
r energy efficiency where cost-effective.



             N




-effective energy efficiency and modify ratemaking practices to promote
                  The TRA has considered decoupling for gas utilities in several dockets.
             N    For instance, the Cascade Natural Gas Corporation submitted a white
                  paper on decoupling in Docket No. 05-00258. The TRA also
                  considered decoupling in a 2007 rate case of Atmos Energy Corp in
                  White paper on decoupling submitted by Cascade Natural Gas
                  Corporation in Docket No. 05-00258.
                  http://www.state.tn.us/tra/orders/2005/0500258ec.pdf
                  Testimony Steve Brown on decoupling in Docket No. 07-00105.
                  http://www.state.tn.us/tra/orders/2007/0700105cc.pdf
N

				
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