Basic Iou Loan Agreement

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					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.
                                                               ALASKA (as of 12/31/08)
                                                                              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,            There is no requirement that utilities
         portfolio management, or other planning               undertake IRP (the Commission declined to
         process                                               require IRPs in Dockets R-96-001 and U-97-
                                                               140). However, some utilities have
                                                               completed IRPs, including Chugach Electric
                                                               Association in 2004. And, a Regional IRP is
                                                          N
                                                               to be developed for the Railbelt Region in
                                                               2009. An AK Rural Energy Plan, which
                                                               examined EE for rural areas, was issued in
                                                               2004. And, a report titled Alaska Energy
                                                               Efficiency Program and Policy
  1.2                                                          Recommendations was completed for the
                                                               Information Insights, Alaska Energy
                                                               Efficiency Program and Policy
                                                               Recommendations, June 8, 2008:
                                                               http://www.cchrc.org/alaska+energy+efficien
                                                               cy+program+and+policy+recommendations.
                                                               aspx

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


         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
  1.5    EE set-asides

Recommendation 2: Make a strong, long-term commitment to implement cost-effective energy efficiency
         Efficiency commitment is in statute                 Alaska Statute states that in the
                                                             establishment of electric service rates "the
                                                             commission shall promote the conservation
                                                          Y-
                                                             of resources used in the generation of
  2.1                                                        electric energy." Alaska Administrative Code
                                                             encourages "conservation of energy
                                                             supplied by electric and gas utilities."
2.1

                                                              AK Statutes 42.05.141 (c):
                                                       S, A

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


      2.3.1 Potential for cost-effective EE has           Estimates for potential of some EE
      been established through a potential study          measures in rural parts of Alaska were
                                                       Y- undertaken in the Alaska Rural Energy Plan
                                                          released in 2004.

                                                              Alaska Rural Energy Plan:
                                                              http://www.aidea.org/AEA/publicationAREP.h
2.3                                                           tml
      2.3.2 Established EE programs reach all                 Golden Valley Electric Association has some
      customer classes                                        programs for residential and commercial
                                                        N     customers. Low-income customers receive
                                                              weatherization assistance through the AK
                                                              Housing and Finance Corporation.



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

      2.5.1 Quantitative MW and MWh savings                   Chugach Electric Association set a goal on
      goals have been established and are                     9/24/08 to reduce energy use among its
      producing incremental investment.                       residential members by 10% below the 2008
                                                        N
                                                              monthly average by the end of 2010; and to
                                                              set new goals every five years.

                                                              http://www.chugachelectric.com/news/pr200
                                                              8-10-07-2.html
      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         d
      part of program approval and budget-setting
2.5   process; (d) other

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


      2.5.4 Expected Capacity Savings 2006
      (Annual MW)

      2.5.5 Energy Savings Goals 2006 (Annual
      MWh or MTherms)
      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                   EE programs are done at the utilities'
      established                                            initiative. The AK Housing and Finance
                                                             Corporation undertakes programs to
                                                             address EE, and was appropriated $300
                                                             million from the Legislature in 2008 for the
                                                             following programs: a weatherization
                                                       N     program that provides free weatherization
                                                             assistance to households at 100% of median
                                                             income; a home energy rebate program,
2.7                                                          under which homeowners are rebated a
                                                             portion of EE improvements; and a second
                                                             mortgage program for EE improvements.
                                                             The Alaska Energy Efficiency Program and
                                                             AK Energy Authority and AK Center for
                                                             Energy and Power, Alaska Energy , January
      2.7.2 Delivery is via: (a) utility                     2009
      administration; (b) third-party administration; a, c
      or (c) government agency

      Resource plans are regularly updated
                                                       N
2.8
        2.9.1 Building Energy Codes for residential         The Building Energy Efficiency Standards
        buildings are in place and regularly updated        (BEES), a state-developed code based on
                                                            the 2006 IECC with state amendments, is
                                                            mandatory for all residential and community-
                                                            owned buildings financed with Alaska
                                                            Housing Finance Corporation underwriting.
                                                            There is no set schedule for code updates,
                                                        Y/N
                                                            and the most recent update was effective
                                                            4/1/07. The Alaska Energy Efficiency
                                                            Program and Policy Recommendations , a
                                                            report commissioned by the state and issued
                                                            6/08, recommended the Legislature adopt
                                                            BEES as the new state residential EE
                                                            building code.
                                                            dsireusa.org, and Information Insights,
  2.9                                                       Alaska Energy Efficiency Program and
                                                            Policy Recommendations, June 8, 2008:
                                                            http://www.cchrc.org/alaska+energy+efficien
        2.9.2 Building Energy Codes for                     cy+program+and+policy+recommendations.
                                                            No statewide commercial code in place.
        commercial buildings are in place and               The Alaska Energy Efficiency Program and
        regularly updated                                   Policy Recommendations , a report
                                                         N commissioned by the state and issued 6/08,
                                                            recommended that a commercial EE
                                                            building code should be developed.
                                                             Information Insights, Alaska Energy
                                                             Efficiency Program and Policy
                                                             Recommendations , June 8, 2008:
                                                             http://www.cchrc.org/alaska+energy+efficien
                                                             cy+program+and+policy+recommendations.
                                                             aspx
        Appliance and Equipment Efficiency
        Standards are in place and regularly             N
 2.10
        updated
        Energy efficiency is a high priority in state        The Alaska Energy Efficiency Program and
        buildings and state funded buildings as              Policy Recommendations, a report
        evidenced in capital planning and enabling           commissioned by the state and issued 6/08,
        performance contracts                            N   made a number of recommendations about
 2.11                                                        improved EE in state buildings.

                                                             Information Insights, Alaska Energy
                                                             Efficiency Program and Policy
Recommendation 3: Miscellaneous Policies                     Recommendations , June 8, 2008:
        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
  3.1    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
  3.2    Homes
         What proportion is due to regulated utility
         program? (who is sponsor) Performance
         75% of state access to Home
         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                     Chugach Electric Association announced a
                                                                policy on 9/24/08 to establish EE programs
                                                                and consider and implement a funding
                                                                mechanism, such as a system benefits
                                                                charge. The Alaska Energy Efficiency
                                                                Program and Policy Recommendations , a
                                                                report commissioned by the state and issued
                                                                6/08, recommended that the Commission
                                                                implement a system benefit charge to
                                                                support EE, or the state capitalize an EE
                                                                endowment to support EE with its budget
                                                                surplus.
  4.1
                                                                Information Insights, Alaska Energy
                                                                Efficiency Program and Policy
                                                                Recommendations, June 8, 2008:
                                                                http://www.cchrc.org/alaska+energy+efficien
                                                                cy+program+and+policy+recommendations.
                                                                aspx
         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
         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

         5.4.2 Usage sensitive rates in place

         5.4.3 AMI deployment planned                       The Commission decided not to adopt the
                                                            PURPA standard on time-based metering
                                                            and communications in a 8/07 order. The
                                                            Alaska Energy Efficiency Program and
                                                        N   Policy Recommendations , a report
                                                            commissioned by the state and issued 6/08,
  5.4
                                                            recommended the Legislature should fund a
                                                            pilot smart meter program.

                                                            Docket R-06-005, Order 8/8/07:
                                                            https://rca.alaska.gov/RCAWeb/ViewFile.asp
                                                        R
                                                            x?id=65760476-488E-4EF2-8288-
                                                            7FD2A2F78770
         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
         Investment Tax Credit for energy efficient
    -    investments

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


Distributed Generation Policies
         A statewide interconnection policy is in place        Alaska is considering statewide
                                                               interconnection standards, similar or
                                                               identical to those outlined in the Energy
                                                          N
                                                               Policy Act of 2005 (EPAct 2005). An order
                                                               inviting public comments on this subject was
                                                               issued on 6/8/2007.
   7.1
                                                               Docket R-06-005, which contains
                                                               information on the order inviting public
                                                               comment and public hearings related to this
                                                          R
                                                               topic can be accessed from here,
                                                               http://rca.alaska.gov/data/docketDetail.html?
                                                               docket=R-06-005.
                                                               Homer Electric Association Inc, Cooperative -
                                                          U-   does not have interconnection standards in
                                                               place.
                                                               Golden Valley Electric Association Inc,
                                                               Cooperative - has interconnection standards.
                                                               Power equipment must meet UL and IEEE
                                                               standards. There are several levels of
                                                               interconnection. Customers must bear any
                                                               costs associated with equipment upgrades
                                                               necessary for interconnection. A disconnect
                                                               device is required, but will be provided by
                                                               GVEA. Additionally, customers must have
                                                               liability insurance, but no specific amount is
                                                               given. GVEA interconnection specifications
                                                               can be accessed here,
                                                          U
                                                               http://www.gvea.com/memserv/connect_disc
                                                               onnect/producer_interconn_spec_2007.pdf.
                                                               There are also separate interconnection
                                                               requirements for those systems that qualify
                                                               under GVA's Sustainable Natural Alternative
                                                               Power Producer's program (SNAP). These
                                                               SNAP guidelines are found here,
                                                               http://www.gvea.com/alternative-
                                                               energy/snap/files/Interconnection_Requirem
                                                               ents.pdf.
      A statewide net metering policy is in place        Alaska does not have statewide net metering
                                                     N
                                                         standards.
                                                         Homer Electric Association does not have an
7.2                                                  U
                                                         established net metering policy
                                                         Golden Valley Electric Assn does not have a
                                                     U
                                                         net metering policy
      A statewide exit fee policy is in place
7.3
      A statewide standby rate policy is in place        Alaska does not have a statewide policy on
                                                     N
                                                         standby rates

                                                         Homer Electric Assn Inc - there is no
                                                         standard standby rate. Customers seeking
                                                         standby service would be charged under the
                                                         regular rate that would apply to their facility if
                                                     U
                                                         they were not generating power. Regular
                                                         rates have moderate to high demand and
                                                         energy charges. Rate available at:
                                                         http://www.homerelectric.com/nbsp/Rates/ta
                                                         bid/136/Default.aspx
7.4
                                                         Golden Valley Electric Assn Inc - there is a
                                                         standby rate applicable to sites that are
                                                         below 50 kW in the form of a capacity
                                                         payment per kVa. For sites that are above
                                                         50 kW there is no standby rate and they
                                                     U
                                                         would be charged under the regular rate for
                                                         their facility size. Regular rates have high
                                                         demand and energy charges, with demand
                                                         being based on the maximum 15 minute
                                                         demand of the month. Rate available at:
                                                         http://www.gvea.com/billing/rates.php
      As part of resource planning process, CHP          Alaska does have a formal Integrated
      is reviewed and incorporated where effective       Resource Planning (IRP) process. Currently,
                                                         a regional integrated resource plan (RIRP) is
                                                     N   being developed for the Railbelt Region of
                                                         Alaska (see link below). Alaska is expected
7.5
                                                         to release a state energy plan in early 2009.

                                                         http://www.aidea.org/aea/regionalintegratedr
                                                         esourceplan.html
31/08)
                                  Natural Gas
urce.




effective energy efficiency as a resource
                 Alaska Administrative Code encourages
                 "conservation of energy supplied by electric and gas
                 utilities."
             N
    AK Administrative Code 3.50.100:
A   http://touchngo.com/lglcntr/akstats/aac/title03/chapte
    r050/section100.htm
deliver energy efficiency where cost-effective.
cost-effective energy efficiency and modify ratemaking
           N
                                                                          ARIZONA
                                                                              Electric
Recommendation 1: Recognize energy efficiency as a high priority energy resource.
         EE is established as a high priority resource,      Currently, under the Arizona Administrative
         equivalent or superior to supply resources          Code, electric and gas utilities must file
                                                             energy conservation plans that include, as
                                                             minimum requirements: (1) customer
                                                             education and assistance programs to help
                                                             their customers reduce their energy
                                                             consumption and costs, and (2) participation
                                                             in energy conservation programs sponsored
                                                             by governmental agencies. June 2008 the
                                                             ACC opened a proceeding. Some of the
                                                          Y-
                                                             issues to be addressed in the investigation
  1.1                                                        are: how adjustment clauses affect utility
                                                             incentives, whether regulatory incentives
                                                             could be changed to align a utility’s financial
                                                             incentives with energy efficient investment,
                                                             and the incentives involved incompetitive
                                                             bidding and utilities’ buy-or-build decisions.



                                                              Docket # E-00000J-08-0314
                                                          R   www.cc.state.az.us/divisions/administration/
                                                              energyefficiency.asp
         1.2.1 EE is integrated into an active IRP,           Current rules require the submission of
         portfolio management, or other planning              conservation plans and the inclusion of DSM
                                                          N
         process                                              in resource plans, but do not require an
                                                              active, robust IRP process. See 1.1 above.
                                                              Docket # E-00000J-08-0314
                                                              www.cc.state.az.us/divisions/administration/
                                                          R
                                                              energyefficiency.asp

                                                              R14-2-213 requires Class A and B utilities to
                                                              submit annual conservation plans to the
                                                              Commission. Plans must include customer
                                                              education programs and cooperation with
                                                          A
                                                              state, municipal, county, and federal
  1.2                                                         efficiency programs.
                                                              http://www.azsos.gov/PUBLIC_SERVICES/T
                                                              itle_14/14-02.htm
                                                              R14-2-703(C)4-5 requires electric utilities to
                                                              submit descriptions of included and rejected
                                                              DSM programs when filing resource plans.
                                                          A
                                                              http://www.azsos.gov/PUBLIC_SERVICES/T
                                                              itle_14/14-02.htm
        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                   Any resource may bid in the procurement
                                                           process, but it is unclear whether any
                                                        Y-
                                                           demand side resources have done this
                                                           successfully.
  1.4
        1.4.2 Bids occur in the following markets:
        (a) energy, (b) capacity, or (c) other          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             N
  2.1
                                                            Staff recommend use of the TRC test in their
        The TRC or Societal Cost Test is used to        N   report on DSM policy, unclear when/if this
  2.2   evaluate EE programs                                will go into effect.
                                                        R
        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             Some utilities offer to all customer classes
        customer classes                                N   but it is not mandated by the state.




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

        2.5.1 Quantitative MW and MWh savings               Proposed DSM rules would require that the
        goals have been established and are             N   Commission establish savings goals. See
        producing incremental investment.                   p.4
        Right now there are just spending goals.            http://www.azcc.gov/divisions/util/electric/DS
                                                        R
                                                            M-Exhibit1.pdf
        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
      2.5.3 Energy Efficiency can be used to fulfill
      requirements of an RPS or similar standard


      2.5.4 Expected Capacity Savings 2006
      (Annual MW)

      2.5.5 Energy Savings Goals 2006 (Annual
      MWh or MTherms)

      2.6.1 A robust M&V process has been                   Proposed DSM rules would require utilities to
      established                                           conduct M&V activities. See p.9
                                                        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
      established                                           Currently, energy efficiency programs are
                                                            administered by investor-owned utilities. The
                                                            Arizona Corporation Commission (ACC)
                                                            retains approval authority for program
                                                        Y   funding and spending. Energy efficiency
                                                            programs in Arizona are funded through a
                                                            systems benefits charge, collected through a
2.7                                                         non-bypassable surcharge on electricity bills,
                                                            or through an adjustor mechanism,
                                                            described below, depending on the utility.


      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

        2.9.1 Building Energy Codes for residential
        buildings are in place and regularly updated    N/N 2000 IECC is voluntary; can use REScheck
                                                               to show compliance
                                                               http://bcap-energy.org/node/54


  2.9   2.9.2 Building Energy Codes for
        commercial buildings are in place and
        regularly updated                                      ASHRAE/IESNA 90.1-1999 mandatory for
                                                        Y-/N
                                                               state-owned and state funded buildings
                                                               only; can use COMcheck to show
                                                               compliance.
                                                               http://bcap-energy.org/node/54
        Appliance and Equipment Efficiency                     Arizona's Appliance Efficiency
        Standards are in place and regularly                   Regulations were established by ARS
        updated                                                §44-1375 in 2005. These regulations
                                                               were designed to reduce Arizona's
                                                               energy consumption and became
                                                               effective on January 1, 2008. The
                                                               Arizona law sets energy efficiency
                                                         Y     standards for 12 appliances and
 2.10                                                          establishes schedules for the Energy
                                                               Office to review these standards.
                                                               Appliance standards also exist in
                                                               eleven other states but in several
                                                               instances these standards have been
                                                               pre-empted by national standards.
                                                               http://www.azcommerce.com/Energy/Efficien
                                                               cy/AZ+Appliance+Efficiency+Program.htm

        Energy efficiency is a high priority in state
        buildings and state funded buildings as
                                                         Y
        evidenced in capital planning and enabling
        performance contracts
                                                               http://www.swenergy.org/legislative/2003/ariz
 2.11                                                          ona/HB2324_bill_text.pdf


                                                               http://www.commerce.state.az.us/Energy/

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




  3.1
         3.1.2 Process is in place, such as a state
         or regional collaborative, to pursue EE as a
                                                             Y
         high-priority resource. (See Guide Tab for
  3.1    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               Tucson Electric Power Company, Arizona
         program? (who is sponsor)                                 Public Servoce
         75% of state access to Home Performance
         with ENERGY STAR?                                   N

         What proportion is due 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                    Done on a case-by-case basis through DSM
                                                               system charges, tariff riders, ratecases, or
                                                            Y-
                                                               application to the ACC depending on the
                                                               utility.
                                                               Proposed rules would allow cost recovery via
                                                               base rates, tariffs, or an SBC. Mechanisms
                                                               would be determined at each utility's next
                                                            R
                                                               rate case. The Commission would have
  4.1                                                          authority to adopt an interim deferral
                                                               account.
                                                            R
         4.1.2 Recovery occurs via: (a) rider; (b)
                                                            a,b,
         regular rate case; or (c) system benefits
                                                             c
         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           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             Currently, only an APS shareholder incentive
      addressed and disincentives are removed           is in place, set at 10% of DSM program net
                                                        economic benefits and capped at 10% of
                                                        total DSM expenditures. APS proposed
                                                        modifying this incentive mechanism in a new
                                                        rate case filed in 2008, requesting recovery
                                                        of net lost revenues as well as removal of
                                                    N   the cap on the incentive. In Decision 58643,
                                                        the Commission states that lost revenues
                                                        should be considered. Proposed DSM rules
5.1                                                     would allow the Commission to decide if lost
                                                        revenues should be recovered. See p.7.
                                                        Unclear when/if these rules will go into
                                                        effect.

                                                        http://www.azcc.gov/divisions/utilities/electric
                                                        /DSM-Exhibit1.pdf
      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       Arizona Corporation Commission Decision
      provided                                          No. 67744, April 2005, states that utilities will
                                                        be given performance incentives. Currently,
                                                        only an APS shareholder incentive is in
                                                    N
                                                        place, set at 10% of DSM program net
                                                        economic benefits and capped at 10% of
5.2                                                     total DSM expenditures.

                                                    U
      5.2.2 Incentives exceed amount of lost
      revenues

      5.3.1 Impact on EE is a consideration when        ACC Docket E-01345A-03-0437, Order of
      designing retail rates                            April 7, 2005, pp21-22. See
                                                    Y
                                                        http://www.cc.state.az.us/utility/electric/APS-
                                                        FinalOrder.pdf
5.3
      5.3.2 Declining block rates and fixed            Varies among utilities and seasons source:
      variable rate designs have been eliminated    Y- Energy & Environment Economics


      5.4.1 Time sensitive rates in place

      5.4.2 Usage sensitive rates in place

      5.4.3 AMI deployment planned                      Over 1 million smart meters have been
5.4                                                 Y
                                                        deployed according to EEI

      5.4.4 Other mechanisms exist (e.g., on-bill
      financing, benefit sharing)
State Fiscal Policy
         Sales Tax reduction or exemption for energy
                                                          N
    -    efficient products

         Investment Tax Credit for energy efficient           Personal income tax deductions are
         investments                                      Y   available for the sale of homes meeting
                                                              certain energy efficiency requirements.
    -                                                         http://www.dsireusa.org/incentives/incentive.
                                                              cfm?Incentive_Code=AZ17F&re=0&ee=1

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


Distributed Generation Policies
         A statewide interconnection policy is in place       The Arizona Corporation Commission
                                                              started a proceeding to establish statewide
                                                              interconnection standards in 2005 for DG,
                                                              and initiated a rulemaking process in 2007.
                                                              The proceeding has not been completed yet,
                                                              but until then the ACC recommends using
                                                          N
                                                              the interconnection document, which applies
                                                              to systems up to 10MW, and can be found
                                                              here:
                                                              http://images.edocket.azcc.gov/docketpdf/00
                                                              00074361.pdf
   7.1
                                                             Salt River Project (SRP), Public Utility - has
                                                             interconnection standards. There are four
                                                             different levels of interconnection based on
                                                             system size. Systems up to 5 MW are
                                                             allowed to interconnect. A manual
                                                          U+ disconnect is required. There is a set
                                                             procedure and timelines for system
                                                             approval. SRP's interconnection standards
                                                             can be accessed here,
                                                             http://www.srpnet.com/electric/pdfx/gen_guid
                                                             elines.pdf

         A statewide net metering policy is in place          Arizona does not have a statewide net
                                                          N
                                                              metering policy in place.
                                                        Arizona Public Service Co, IOU - APS has
                                                        net metering rules. Renewable energy
                                                        systems up to 100 kW in capacity are
                                                        eligible for net metering - solar, landfill gas,
                                                        wind, and biomass generators. A new net
                                                        metering rate plan, EPR-5 has been
                                                        approved and is being offered starting July 1,
                                                    U   2007. However this rate plan is an
                                                        experimental program that will only be
                                                        offered for 3 years. Net excess generation is
                                                        carried forward month to month until the end
                                                        of a 12-month billing cycle when it is credited
                                                        to the utility. More information on the new net
                                                        metering program can be found here,
                                                        http://www.aps.com/main/account/orders/EP
7.2
                                                        R/FAQ.html?id=.
                                                        Salt River Project (SRP), Public Utility -
                                                        established a net metering policy for
                                                        residential customers in 2004. The program
                                                        is available for customers who generate
                                                        electricity using PV systems up to 10 KW in
                                                        AC peak capacity. The kW delivered to SRP
                                                        are subtracted from the kWh delivered from
                                                        SRP for each billing cycle. If the customer
                                                    U   provides more power than it receives, then
                                                        SRP will credit the net kWh from the
                                                        customer at the average market price minus
                                                        $0.00017/kWh. Information on SRP's net
                                                        metering standards for PV can be found
                                                        here,
                                                        http://www.srpnet.com/environment/earthwis
                                                        e/solar/default.aspx.

      A statewide exit fee policy is in place
                                                       There are no exit fees for DG in Arizona.
                                                       The Arizona Corporation Commission Rule
                                                    Y+ 14-2-1607 governs exit fees and states that
                                                       Competitive Transition Charges are not
7.3                                                    imposed on self generation facilities when
                                                       the loads were formerly served by the utility.
                                                       Rule 14-2-1607 can be accessed from here,
                                                       http://www.azsos.gov/public_services/Title_1
                                                    A
                                                       4/14-02.pdf

      A statewide standby rate policy is in place       Arizona does not have a statewide policy on
                                                    N
                                                        standby rates




7.4
                                                         Arizona Public Service Co - Rate E-56 -
                                                         standby service is provided to customers
                                                         that contract with the utility for a specific
                                                         amount of standby capacity. A relatively
                                                         high demand based reservation charge and
                                                     U
                                                         a customer charge is assessed every month,
                                                         with actual usage being billed through high
                                                         demand charges and moderate energy
7.4                                                      charges. Rate available at:
                                                         http://www.aps.com/main/services/business/
                                                         rates/BusRatePlans_9.html
                                                         Salt River Project - Standby Electric Service
                                                         Rider - standby service is provided to
                                                         customers that have loads of over 3,000 kW.
                                                         Standby service is based on demand and
                                                     U   energy charges that are based on daily
                                                         electricity prices traded at Palo Verde. Rate
                                                         available at:
                                                         http://www.srpnet.com/menu/paybillprice.asp
                                                         x
      As part of resource planning process, CHP          Arizona is currently working on substantial
      is reviewed and incorporated where effective       revisions to their IRP process. Existing IRP
                                                         rules have been suspended, and utilities
                                                         have only been required to file recently their
                                                         historical data. New IRP regulations are
                                                     N
                                                         being considered under docket no. E-
                                                         00000E-05-0431 and also under RE-00000A-
                                                         09-0249. These rules are expected to be
                                                         completed sometime in 2009.

7.5                                                      http://www.cc.state.az.us/divisions/utilities/el
                                                         ectric/rp.asp
                                                         Arizona Public Service Company has the
                                                         following Alternative Resource Plan, which
                                                         highlights the benefits and need for energy
                                                         efficiency programs, but does not call out
                                                     U
                                                         CHP specifically,
                                                         http://www.aps.com/_files/various/Resource
                                                         Alt/APS_Resource_Alternative_Report_0107
                                                         08.pdf
                                                     U   Salt River Project does not have a IRP
                             Natural Gas
urce.
            Currently, under the Arizona Administrative Code,
            electric and gas utilities must file energy
            conservation plans that include, as minimum
            requirements: (1) customer education and
            assistance programs to help their customers
            reduce their energy consumption and costs, and
            (2) participation in energy conservation programs
            sponsored by governmental agencies.




            Utilities participate in conservation planning, as
            required by R14-2-313. The question of IRP
        N
            requirements for natural gas utilities will be taken
            up in the resource planning docket.
            R14-2-313 requires Class A and B utilities to
            submit annual conservation plans to the
        A
            Commission. Plans must include customer
            education programs and cooperation with state,
            municipal, county, and federal efficiency
effective energy efficiency as a resource




             N




                 Proposed DSM rules would require that the
             N   Commission establish savings goals. See p.4

             R
                 http://www.azcc.gov/divisions/util/electric/DSM-Exhibit1.pdf
N
deliver energy efficiency where cost-effective.
                  SW Gas and UNS Gas have adjustor mechanisms
                  for DSM costs.
             Y-


                  The UNS gas proposal is under consideration in
                  its rate case in Docket g-04204A-06-0463. The
                  docket can be accessed via search mechanism at
             R
                  http://edocket.azcc.gov/.


                  https://edocket.azcc.gov/




 cost-effective energy efficiency and modify ratemaking
Currently, only an APS shareholder incentive is in
place, set at 10% of DSM program net economic
benefits and capped at 10% of total DSM
expenditures. APS proposed modifying this
incentive mechanism in a new rate case filed in
2008, requesting recovery of net lost revenues as
well as removal of the cap on the incentive.
                                                                           CALIFORNIA
                                                                                 Electric
                                                                                                                             Natural Gas
Recommendation 1: Recognize energy efficiency as a high priority energy resource.
         EE is established as a high priority                     CPUC and CEC Energy Action Plan 2008 Update
         resource, equivalent or superior to supply               issued in Feb 2008 reaffirmed the commitment to
         resources                                                EE and demand response as first priority in
                                                                  energy resources. Separately, the CPUC's EE
                                                                  proceeding adopted the EE "Strategic Plan" and
                                                                  EM&V policies and protocols. Separately, EE
                                                                  risk/reward incentive program adopted policy--
                                                            Y+                                                         Y+
                                                                  filed and earned payments for (2006-09).
                                                                  Elaborate EMV framework and ED audits the
                                                                  performance-- currently relooking at risk/reward
                                                                  mechanism. EE Strategic Plan in 2008
                                                                  identified what stakeholders need to be involved
  1.1                                                             and key areas/goals.

                                                                  CA ranked #1 in ACEEE's 2008 EE scorecard
                                                                  exercise:
                                                                  http://aceee.org/pubs/e086.pdf?CFID=3737816&
                                                                  CFTOKEN=70562179          CA Energy Action Plan
                                                                  2008 Update:
                                                            R                                                          R
                                                                  www.energy.ca.gov/2008publications/CEC-100-
                                                                  2008-001/CEC-100-2008-001.PDF The CPUC
                                                                  adopted Strategic Plan:
                                                                  http://docs.cpuc.ca.gov/published/FINAL_DECISI
                                                                  ON/91068.htm
         1.2.1 EE is integrated into an active IRP,               D.04-01-050 required CA utilities to prepare Long-
         portfolio management, or other planning                  Term Procurement Plans that incorporate EE
         process                                                  plans and targets. For PY2009-2020 utilities
                                                                  must include a single coordinated Strategic Plan
                                                                  that includes comprehensive EE and Demand
                                                            Y+    Response targets. D.07-10-032. LT                    Y+
                                                                  procurement plans are submitted by the IOUs
                                                                  every 2 years that look out over a 10 year period.
                                                                  The next submittals are scheduled to occur in
                                                                  2010, so IOUs should present drafts in Oct 2009.

                                                                  http://www.cpuc.ca.gov/Published/Final_decision/
                                                            R                                                          R
                                                                  33625.htm
         1.2.2 Efficiency is procured as a resource               Efficiency is a priority resource in the EAP (see
  1.2
         for default service/standard offer customers             Section 1.1). Decision 04-09-060 translated the
                                                                  EAP goals into specific annual MWh and therm
                                                                  savings goals for each major IOU, through 2013
                                                            Y                                                          Y
                                                                  as part of the Strategic Plan. Goals updated last
                                                                  year updated goals through 2020, see D.08-07-
                                                                  047. Current EE program cycle is 2009-2011.

                                                                  http://www.cpuc.ca.gov/PUBLISHED/FINAL_DEC R
                                                                  ISION/40212.htm#TopOfPage D.08-07-047:
                                                                  http://docs.cpuc.ca.gov/cyberdocs/Libraries/WEB
                                                            R     PUB/Common/searchResultsdsp.asp?pagenumb
                                                                  er=1&FT=false&fromQSearch=yes&desc=Detaile
                                                                  d+Search

         EE is an alternative to transmission based               EE is included as a resource for procurement
         on a long-term transparent IRP or                        and transmission needs as part of the LT
  1.3
         transmission system plan                                 planning process as described in Section 1.2.1
                                                        R                                                              R
         1.4.1 EE is a biddable commodity                   N                                                          N

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


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

Recommendation 2: Make a strong, long-term commitment to implement cost-effective energy efficiency as a resource
        Efficiency commitment is in statute                   PUC Code 701 states that utilities should seek to
                                                              exploit all practical and cost-effective efficiency.
                                                        Y     Sections 454.5 (for IOUs) and 9615 (for                Y
                                                              POUs)require unmet resource needs to be first
                                                              met through all cost-effective EE
                                                              701: http://www.leginfo.ca.gov/cgi-
                                                              bin/displaycode?section=puc&group=00001-
  2.1
                                                              01000&file=701-709.7 454.5:
                                                              http://www.leginfo.ca.gov/cgi-
                                                        S     bin/waisgate?WAISdocID=5144802949+0+0+0&               S
                                                              WAISaction=retrieve 9615:
                                                              http://www.leginfo.ca.gov/cgi-
                                                              bin/waisgate?WAISdocID=5146004343+0+0+0&
                                                              WAISaction=retrieve
                                                              TRC and PAC are used in CA for both electric
                                                              and NG, and TRC is the primary test. This is
                                                              most recently reiterated in the CPUC EE Policy
                                                              Manual v.4.0 adopted in Aug 2008; “This
                                                              Commission relies on the Total Resource Cost
                                                              Test (TRC) as the primary indicator of energy
                                                              efficiency program cost effectiveness, consistent
                                                        Y     with our view that ratepayer-funded energy             Y
  2.2                                                         efficiency should focus on programs that serve
                                                              as resource alternatives to supply-side options.”
                                                              CPUC Decision 05-04-051 requires EE portfolios
                                                              have to pass the “dual test,” in which the entire
                                                              EE portfolios of each utility has to pass both the
        The TRC or Societal Cost Test is used to              TRC and PAC cost-effectiveness tests.
        evaluate EE programs
                                                              http://www.cpuc.ca.gov/PUBLISHED/FINAL_DEC
                                                        R                                                            R
                                                              ISION/45783-03.htm#TopOfPage
        2.3.1 Potential for cost-effective EE has             On Sept. 18, 2008, the CPUC adopted
        been established through a potential study            California’s first Long Term Energy Efficiency
                                                              Strategic Plan, presenting a single roadmap to
                                                              achieve maximum energy savings across all
                                                              major groups and sectors in California. This
                                                              comprehensive Plan for 2009 to 2020 is the
                                                              state’s first integrated framework of goals and
                                                        Y     strategies for saving energy, covering                 Y
                                                              government, utility, and private sector actions,
                                                              and holds energy efficiency to its role as the
                                                              highest priority resource in meeting California’s
  2.3                                                         energy needs. EE potential studies have been
                                                              performed in 2002, 2006, and 2008. The
                                                              CPUC’s long-term EE goal-setting has been
                                                              based on potential found in these studies.
                                                              www.californiaenergyefficiency.com/docs/EEStrat
                                                              egicPlan.pdf
                                                        R                                                            R


        2.3.2 Established EE programs reach all               PGC-funded programs must be available to all
        customer classes                                Y     classes of ratepayers. Procurement-funded              Y
                                                              programs may be designed to capture the gratest
                                                              amount of potential efficiency.
                                                        S,R                                                          S,R
        Funding requirements for all long-term, cost-         The CPUC set energy savings goals for IOUs for
        effective EE have been established                    2004-2013 (D.04-09-060), which are expected to
                                                              save approx 1% of total electricity forecast sales
                                                              per year. In 2013, total savings goals are 23183
                                                              GWh and 4885 MW peak. In setting these
                                                              goals, the IOUs are directed to meet these goals
                                                        Y                                                            Y
                                                              through their procurement plans. Also see
  2.4                                                         comments on section 1.2.2. The state’s PGC
                                                              helps provide funding, and utilities are required to
                                                              draw from procurement funds to supplement
                                                              PGC funding to caption all cost-effective EE; see
                                                              comments on 2.1.
2.4




                                                              http://www.cpuc.ca.gov/PUBLISHED/FINAL_DEC
                                                      S,R                                                      S,R
                                                              ISION/40214.htm
      2.5.1 Quantitative MW and MWh savings                   The EAP goal of procuring 90% of maximum
      goals have been established and are                     achievable energy efficiency potential has been
      producing incremental investment.                       quantified into annual MW and MWh savings
                                                        Y                                                       Y
                                                              goals for each IOU through 2013. The EE
                                                              Strategic Plan has updated goals from 2009-
                                                              2020. See 1.2.2 for add'l detail.
                                                              through 2013:                                   R
                                                              http://docs.cpuc.ca.gov/PUBLISHED/FINAL_DE
                                                              CISION/85995.htm. An updated decision in July
                                                       R
                                                              2008 includes goals for 2012-2020:
                                                              http://docs.cpuc.ca.gov/PUBLISHED/FINAL_DE
                                                              CISION/85995.htm
      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      a,b                                                        a,b
      budget-setting process; (d) other
2.5                                                            EE savings goals are required to be included in
                                                              the IOU LT procurement plans.
                                                              http://docs.cpuc.ca.gov/PUBLISHED/FINAL_DE
                                                       R                                                           R
                                                              CISION/85995.htm
      2.5.3 Energy Efficiency can be used to
      fulfill requirements of an RPS or similar        N                                                           N
      standard

      2.5.4 Expected Capacity Savings 2008                    Savings goals for 2006-2013 were established in
                                                      535                                                         N/A
      (Annual MW)                                             D. 04-09-060.
                                                       R                                                         R
      2.5.5 Energy Savings Goals 2008 (Annual                 Expected savings for 2006. Savings are based
      MWh or MTherms)                                         on programs approved in IOU's 2006-2008
                                                    2,504,000 efficiency plans in Decision 05-09-043. Tables   44400
                                                              can be found in Attachment 4 to the decision, p.
                                                              39 of the PDF file.
                                                              http://www.cpuc.ca.gov/PUBLISHED/Graphics/49
                                                        R                                                        R
                                                              863.PDF
      2.6.1 A robust M&V process has been                     Protocols developed by the CPUC and
      established                                             stakeholders were published in 2006 and will be
                                                        Y     updated as necessary.                              Y


                                                              The protocols and other documents are available
                                                              at
                                                       R                                                           R
                                                              http://www.cpuc.ca.gov/static/energy/electric/ene
                                                              rgy+efficiency/em+and+v/index.htm
      2.6.1.1   M&V is adequately funded                      most recent EM&V funding decision for 2006-08
                                                        Y     cycle was D.05-11-011; this is to be done for        Y
                                                              each three-year program cycle.
                                                              http://docs.cpuc.ca.gov/PUBLISHED/FINAL_DE
                                                       R                                                           R
                                                              CISION/51420.htm
      2.6.1.2 Energy savings are used to
                                                        Y                                                          Y
      measure performance
2.6
                                                       R                                                           R
      2.6.1.3 M&V is done according to a
                                                        Y                                                          Y
      defined schedule
                                                       R                                                           R
      2.6.1.4 M&V is conducted by an
                                                        Y                                                          Y
      independent party
                                                       R                                                           R
      2.6.1.5 Review of M&V is done in a
                                                        Y                                                          Y
      transparent process
                                                       R                                                           R
      2.6.2 M&V is done using: (a) deemed                     Annual assessments are done on a deemed
      savings; (b) actual savings; (c) other                  savings basis. Final evaluations (typically done
                                                       a,b                                                        a, b
                                                              every 3 years) are done on actual savings for the
                                                              highest grossing savings programs.
                                                       R                                                           R
        2.7.1 EE delivery structure has been                  Historically utilities have administered efficiency
        established                                           programs. Decision 05-01-055, issued in 2005,
                                                        Y     affirmed that IOUs would continue to administer       Y
                                                              EE portfolios in the post-restructuring energy
                                                              sector.
  2.7                                                         http://www.cpuc.ca.gov/PUBLISHED/FINAL_DEC
                                                        R                                                           R
                                                              ISION/43628.htm#TopOfPage
        2.7.2 Delivery is via: (a) utility
        administration; (b) third-party                 a                                                            a
        administration; or (c) government agency
                                                        R                                                           R
        Resource plans are regularly updated                  Long Term Procurement plans are submitted
                                                              every two years that look out over a 10 year
                                                        Y     period.                                               Y
  2.8

                                                        R                                                           R
        2.9.1 Building Energy Codes for                       Statewide mandatory standards exceed 2003
        residential buildings are in place and          Y/Y   IECC.                                                 Y/Y
        regularly updated
                                                              http://bcap-energy.org/node/56
                                                        R                                                           R

  2.9   2.9.2 Building Energy Codes for                       Statewide mandatory standards exceed 2006
        commercial buildings are in place and                 ASHRAE.
        regularly updated
                                                        Y/Y                                                         Y/Y



                                                        R     http://bcap-energy.org/node/56                        R
        Appliance and Equipment Efficiency                    Standards are in place for a wide range of
        Standards are in place and regularly            Y+    products.                                             Y+
 2.10   updated
                                                              http://www.energy.ca.gov/appliances/index.html
                                                        R                                                           R
        Energy efficiency is a high priority in state         CA Executive Order S-20-04, issued in Dec.
        buildings and state funded buildings as               2004, requires state agencies and departments
                                                        Y                                                           Y
        evidenced in capital planning and enabling            to reduce their energy consumption by 20% from
 2.11   performance contracts                                 2003 levels by 2015. The order also directs the
                                                              Division of the State Architect to develop new
                                                              http://www.energy.ca.gov/greenbuilding/
                                                        EO                                                          EO
                                                              documents/executive_order_s-20-04.html
Recommendation 3: Miscellaneous Policies
        3.1.1 Public education programs on EE are
        in place. (See Guide Tab for Y/N criteria.)     Y                                                           Y


                                                        R                                                           R

        3.1.2 Process is in place, such as a state
        or regional collaborative, to pursue EE as a
                                                        Y                                                           Y
        high-priority resource. (See Guide Tab for
  3.1   Y/N criteria.)
                                                        R                                                           R
        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
        New Homes
  3.2   What proportion is due to regulated utility           PG&E, SDG&E, SCE, Southern California Gas
        program? (who is sponsor)                             Company
        75% of state access to Home Performance
        with ENERGY STAR?                               N

        What proportion is due 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                        A public goods charge (PGC) provides baseline
                                                                   funding. Additional funding needed to meet
                                                                   savings goals comes from utility procurement
                                                             Y                                                           Y
                                                                   budgets. The amount of procurement funding is
                                                                   due to increase incrementally through 2013 to
                                                                   meet aggressive savings goals.
                                                                   Assembly Bill 1890 (1996 Legislative Session)
                                                                   established the initial PGC. See p. 43.
                                                            S,R    http://www.leginfo.ca.gov/pub/95-                    S,R
                                                                   96/bill/asm/ab_1851-
                                                                   1900/ab_1890_bill_960924_chaptered.pdf
  4.1
                                                                   Decision 0312060, issued December 18, 2003,
                                                                   authorizes the use of procurement funds for
                                                                   energy efficiency programs.
                                                                   http://www.cpuc.ca.gov/PUBLISHED/FINAL_DEC
                                                                   ISION/32828.htm
         4.1.2 Recovery occurs via: (a) rider; (b)
         regular rate case; or (c) system benefits          b, c                                                        b, c
         charge
                                                            S,R                                                         S,R
         4.1.3 Funding is for multi-year periods             Y                                                           Y
                                                             R                                                           R
         A base energy efficiency spending level                   PGC budget is established in statute, IOU LT
         exists, with opportunity to justify higher level          utility procurement plans must meet adopted EE
                                                                   savings goals, and utilities may request
                                                             Y                                                           Y
  4.2                                                              additional funding for EE or demand response
                                                                   programs in order to meet unanticipated demand
                                                                   for approved programs.
                                                            S,R                                                         S,R
         % of net (retail) utility revenue presently
         used for energy efficiency [no unit = %; m/k
  4.3    = mils/kWh]



         Funds from carbon trading program support                 Unknown. The CA Air Resources Board is
         EE                                                        currently considering options for a carbon trading
                                                                   program as part of implementation of AB32's
                                                                   GHG emission reduction goals. In addition, CA
                                                                   is part of the Western Climate Initiative which is
                                                                   also developing a recommendation for the
                                                                   region. These efforts are being closely
                                                                   coordinated. The CPUC recommended that • "All
                                                                   auction revenues should be used for purposes
                                                             N     related to AB 32, and all revenue from the            N
  4.4                                                              auction of allowances allocated to the electricity
                                                                   sector should be used for the benefit of the
                                                                   electricity sector, including the support of
                                                                   investments in renewables, energy efficiency,
                                                                   new energy technology, infrastructure, customer
                                                                   bill relief (possibly through rebates), and other
                                                                   similar programs." as part of their final decision
                                                                   of recommendations for a cap program.

                                                                   http://www.cpuc.ca.gov/PUBLISHED/FINAL_DEC
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             All major investor-owned utilities are decoupled.
      addressed and disincentives are removed           A 2001 statute provided the basis for decoupling.
                                                        Mechanisms for individual utilities have been
                                                        approved on a case by case basis between 2002
                                                        and 2006. For all utilities, initial test year revenue
                                                        requirements were determined during a rate
                                                        case, and balancing accounts were established
                                                        to true-up revenue requirements annually.
                                                    Y   Between rate cases, revenue requirements are             Y
                                                        adjusted annually for inflation, using utility-
                                                        specific mechanisms. Mechanisms may include
                                                        factors to account for customer growth, or factors
                                                        to limit escalation of the revenue requirement.
                                                        Separate balancing accounts may be used for
                                                        tracking and reconciling generation and
                                                        distribution revenues.

                                                        Public Utilities Code 739.10 states “The
                                                        commission shall ensure that errors in estimates
                                                        of demand elasticity or sales do not result in
                                                        material over or undercollections of the electrical
                                                    S                                                            S
                                                        corporations.” See http://leginfo.ca.gov/cgi-
                                                        bin/displaycode?section=puc&group=00001-
                                                        01000&file=727-755

                                                        SCE: Distribution revenue was decoupled in
                                                        Decision 04-07-022. See
                                                        http://www.cpuc.ca.gov/Published/Final_decision/
5.1
                                                        38235.htm#P2659_467920. A description of
                                                        SCE's Base Revenue Requirement Balancing
                                                        Account is at
                                                        http://www.sce.com/NR/sc3/tm2/pdf/ce266.pdf.

                                                        SDGE: Distribution revenue was decoupled in
                                                        Decision 05-03-023. See
                                                        http://www.cpuc.ca.gov/PUBLISHED/FINAL_DEC
                                                        ISION/44820-05.htm#P186_26137. For the
                                                        indexing tariff, see:
                                                        http://www.sdge.com/tm2/pdf/EPBR.pdf.
                                                        PGE: Distribution and generation revenues were
                                                        decoupled in Decision 04-05-055. See
                                                        http://www.cpuc.ca.gov/PUBLISHED/FINAL_DEC
                                                        ISION/37086-06.htm#P300_37806. PG&E uses
                                                        separate balancing accounts for distribution and
                                                        generation revenues; for a description of the
                                                        Distribution Revenue Adjustment Mechanism,
                                                        see http://www.pge.com/tariffs/pdf/EPSCZ.pdf;
                                                        for a description of the Utility Generation
                                                        Balancing Account, see
                                                        http://www.pge.com/tariffs/pdf/EPSCG.pdf.


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

      5.2.1 Utility/shareholder EE incentives are       The Energy Action Plan states that investments
      provided                                          in efficiency should be as profitable to utilities as
                                                        investments in supply. The Commission has
                                                        stated its intention to adopt incentives numerous
                                                        times. This issue will be examined in proceeding
                                                        06-04-010; Decision 07-09-043 was issued in this
                                                    Y   proceeding in September 2007; see decision for           Y
                                                        details. Implementation of the existing incentive
                                                        mechanism has proven controversial and
                                                        problemmative. In Jan 2009, a new proceeding
                                                        R.09-01-019 to review and potentially propose
                                                        new policies.
5.2
  5.2
                                                              Documents related to Proceeding 06-04-010 are
                                                              available at
                                                              http://www.cpuc.ca.gov/proceedings/R0604010.h
                                                              tm#documents. Decision 07-09-043:
                                                        R     http://docs.cpuc.ca.gov/word_pdf/FINAL_DECISI       R
                                                              ON/73172.pdf The new rulemaking is posted at:
                                                              http://docs.cpuc.ca.gov/Published/proceedings/R
                                                              0901019.htm

         5.2.2 Incentives exceed amount of lost
         revenues

         5.3.1 Impact on EE is a consideration                SB1388, passed in 2000, required the CPUC to
         when designing retail rates                    Y     investigate various approaches to rate design       Y

                                                              California Public Utilities Code Section 393. See
                                                              http://www.leginfo.ca.gov/cgi-
                                                        S                                                         S
                                                              bin/displaycode?section=puc&group=00001-
   5.3
                                                              01000&file=391-393
         5.3.2 Declining block rates and fixed
         variable rate designs have been eliminated     Y                                                         Y

                                                              Info on tariffs and rates can be found at:
                                                        R                                                         R
                                                              www.cpuc.ca.gov/PUC/energy/Electric+Rates/
         5.4.1 Time sensitive rates in place                  PG&E received approval in July 2008 to explore
                                                              dynamic pricing rates as part of their GRC.
                                                        Y-
                                                              Previously, voluntary pilot programs for all IOUs
                                                              as part of R.02-06-001.
                                                              www.oe.energy.gov/DocumentsandMedia/NCEP
                                                              _Demand_Response_1208.pdf. For earlier
                                                        R     CPUC proceeding documents see:
                                                              http://docs.cpuc.ca.gov/proceedings/R0206001.h
                                                              tm
                                                              PG&E rate case:
                                                              http://docs.cpuc.ca.gov/published/proceedings/A
                                                              0603005.htm
         5.4.2 Usage sensitive rates in place                 Baseline set and increasing block rates in place
                                                        Y                                                         Y
                                                              Info on tariffs and rates can be found at:
                                                        R                                                         R
                                                              www.cpuc.ca.gov/PUC/energy/Electric+Rates/
         5.4.3 AMI deployment planned                         All IOUs have advanced meters in place. AMI
  5.4                                                         and other strategic demand response policies
                                                              were further addressed in the CPUC EE
                                                              "strategic plan" proceeding R.08-70-011. The
                                                        Y+
                                                              IOUs are now responsible for filing plans
                                                              annually and coordinating across demand
                                                              response programs. See Section 1.2.1 for more
                                                              information about the strategic plan.
                                                              For 2008 and 2009 approved AMI deployment
                                                              info as part of the IOU rate cases , see:
                                                        R
                                                              www.cpuc.ca.gov/PUC/energy/Demand+Respon
                                                              se/R0206001.htm
         5.4.4 Other mechanisms exist (e.g., on-bill          SCE offers some customers an on-bill finance
                                                        Y
         financing, benefit sharing)                          program.
                                                              http://www.cpuc.ca.gov/PUBLISHED/FINAL_DEC
                                                              ISION/49859-03.htm#P281_36343 and
                                                        R,U   www.dsireusa.org/incentives/index.cfm?state=CA
                                                              &searchtype=Loan&implementingsector=U&EE=
                                                              1&RE=0
State Fiscal Policy
         Sales Tax reduction or exemption for
                                                        N
    -    energy efficient products

         Investment Tax Credit for energy efficient
                                                        N
    -    investments

         State supported low cost financing for               Several municipal utilities and one IOU
         energy efficient investments: buildings (x),   Y     (SDG&E/SoCalGas) offer financing for EE:
         equipment (y)



    -
                                                       R,U        www.dsireusa.org/incentives/index.cfm?state=CA
                                                                  &searchtype=Loan&implementingsector=U&EE=
                                                                  1&RE=0
    -
                                                                  Low-interest loans are available for efficiency
                                                                  improvements in state-owned buildings and
                                                                  schools.
                                                                  http://www.energy.ca.gov/efficiency/financing/ind
                                                                  ex.html

Distributed Generation Policies
         A statewide interconnection policy is in                 California has statewide interconnection
         place                                                    standards, Rule 21, that apply to DG systems up
                                                                  to 10 MW in capacity. There are simplified rules
                                                                  for systems under 10 kW and Rule 21 includes
                                                                  model tariff language. If a customer applies for
                                                                  interconnection an Initial Review Process (IRP) is
                                                                  required. If the proposed project passes all
                                                                  requirements in the IRP then it is eligible for a
                                                                  simplified interconnection procedure. If a system
                                                                  does not pass the IRP then it must undergo a
                                                             Y+   Supplemental Review Process (SRP). DG
                                                                  systems have to follow technical requirements in
   7.1                                                            IEEE 1547. There is a standard interconnection
                                                                  agreement, no additional insurance
                                                                  requirements, and an external disconnect is
                                                                  required for systems greater than 1 kW. Net-
                                                                  metered systems up to 1 MW are exempt from
                                                                  paying costs associated with the interconnection
                                                                  studies, distribution system modifications or
                                                                  application review fees

                                                                  Rule 21 and other interconnection information
                                                                  can be accessed from here,
                                                             R
                                                                  http://www.energy.ca.gov/distgen/interconnection
                                                                  /california_requirements.html
         A statewide net metering policy is in place              California has a net metering law created by Cal
                                                                  Pub Util Code § 2827, which has been revised
                                                                  numerous times. CA's law requires all utilities to
                                                                  offer net metering to all customers that have
                                                                  solar and wind systems up to 1 MW. IOUs must
                                                                  also offer net metering to biogas-electric systems
                                                                  and fuel cells. Also, three large biogas digesters
                                                                  more than 1 MW but no more than 10 MW are
                                                         Y+       allowed to net meter. There are a couple of
                                                                  different limits on overall enrollment of net-
   7.2                                                            metered systems - there is a limit of 2.5% of a
                                                                  utility's peak demand; and a statewide limit of 50
                                                                  MW for biogas digesters. Net excess generation
                                                                  (NEG) is carried forward to a customer's next bill
                                                                  for up to 12 months. Any NEG remaining at the
                                                                  end of a 12-months is granted to the utility.

                                                                  Cal Pub Util Code § 2827 is located here,
                                                                  http://www.energy.ca.gov/distgen/notices/2002-
                                                             S
                                                                  11-18_forum/PUC_CODE_SECTION_2827.PDF
                                                         There are three different kinds of exit fees often
      A statewide exit fee policy is in place            called "cost responsibility surcharges" (CRCs) in
                                                         California that apply to DG and were
                                                         implemented with R.02-01-011. These CRCs are
                                                         as follows - "tail" competition transition charges
                                                         pursuant to Public Utilities Code Section 367 (a);
                                                         costs associated with the historic procurement
                                                         charge "HPC" applicable to SCE service territory
                                                         only; and costs associated with the procurement
                                                         of power by the CA Water Resources (DWR),
                                                         which are divided into two charges - historic
                                                         shortfalls financed through a bond charge and
                                                         forward costs associated with ongoing power
                                                    Y-   charges. Systems that meet certain criteria are
                                                         exempt from exit fees. DG systems that are
7.3                                                      eligible for net metering are exempt from exit
                                                         fees. Ultra clean and low emission systems 1
                                                         MW or greater that meet SB 1038 requirements
                                                         to comply with CARB 2007 emisison standards
                                                         will have to pay 100% of the bond charge, but no
                                                         future DWR charges or utility undercollection
                                                         surcharges. All other customers will have to pay
                                                         all parts of the CRC except the DWR ongoing
                                                         power charges. When the combined total of
                                                         installed generation reaches 3000 MW (1500
                                                         designated for renewables), any additional
                                                         Information on California exit fees can be found
                                                         here,
                                                    R
                                                         http://www.energy.ca.gov/distgen/policy/regulator
                                                         y_activity.html.
      A statewide standby rate policy is in place        There is a statewide policy concerning standby
                                                         rates in California. According to Decision 01-07-
                                                         027
                                                         (http://www.cpuc.ca.gov/word_pdf/FINAL_DECISI
                                                         ON%5C/8823.doc) standby rates must 1) provide
                                                         for fair cost allocation among customers; 2) allow
                                                    Y    the utility adequate cost recovery while
                                                         minimizing costs to customers; 3) facilitate
                                                         customer-side distributed generation
                                                         deployment; and 4) send proper price signals to
                                                         prospective purchasers of distributed generation.


                                                         Southern California Edison Co - Schedule S -
                                                         standby service is provided to customers that
                                                         contract with the utility for a specific amount of
7.4                                                      standby capacity. A moderate demand based
                                                         reservation charge is assessed every month.
                                                    U    Actual usage is billed through a high demand
                                                         charge and a moderate energy charge. Billing
                                                         demand is based on the maximum 15 minute
                                                         demand of the month. Rate available at:
                                                         http://www.sce.com/AboutSCE/Regulatory/tariffb
                                                         ooks/ratespricing/
                                                         Pacific Gas & Electric Co - Schedule S - standby
                                                         service is provided to customers that contract
                                                         with the utility for a specific amount of standby
                                                         capacity. A moderate demand based reservation
                                                    U    charge and a customer charge is assessed every
                                                         month. Actual usage is billed through a high
                                                         energy charge. Rate available at:
                                                         http://www.pge.com/tariffs/ERS.SHTML#ERS
      As part of resource planning process, CHP                 California utilities must prepare Long-Term
      is reviewed and incorporated where                        Procurement Plans (LTPPs) with a specific
      effective                                                 Distributed Generation (DG) forecast that is
                                                                based on the a forecast of DG operating on the
                                                        Y+
                                                                customer-side of the meter. IOUs must also
                                                                evaluate DG as an alternative to distribution
                                                                system upgrades. See information on D.04-01-
7.5
                                                                050, below.
                                                    http://docs.cpuc.ca.gov/published/Comment_decision/41385-
                                                        U+      Southern California Edison Co
                                                    http://docs.cpuc.ca.gov/published/FINAL_DECISION/76979.
                                                        U+      Pacific Gas & Electric Co
                                                  http://docs.cpuc.ca.gov/published/FINAL_DECISION/76979.htm
               Natural Gas

CPUC and CEC Energy Action Plan 2008 Update
issued in Feb 2008 reaffirmed the commitment to
EE and demand response as first priority in
energy resources. Separately, the CPUC's EE
proceeding adopted an EE "Strategic Plan" and
EM&V policies and protocols. Separately, EE
risk/reward incentive program adopted policy--
filed and earned payments for (2006-09).
Elaborate EMV framework and ED audits the
performance-- currently relooking at risk/reward
mechanism. EE Strategic Plan in 2008 identified
what stakeholders need to be involved and key
areas/goals.

CA ranked #1 in ACEEE's 2008 EE scorecard
exercise:
http://aceee.org/pubs/e086.pdf?CFID=3737816&
CFTOKEN=70562179          CA Energy Action Plan
2008 Update:
www.energy.ca.gov/2008publications/CEC-100-
2008-001/CEC-100-2008-001.PDF The CPUC
adopted Strategic Plan:
http://docs.cpuc.ca.gov/published/FINAL_DECISI
ON/91068.htm




Efficiency is a priority resource in the EAP (see
Section 1.1). Decision 04-09-060 translated the
EAP goals into specific annual MWh and therm
savings goals for each major IOU, through 2013
as part of the Strategic Plan. Goals updated last
year updated goals through 2020, see D.08-07-
047. Current EE program cycle is 2009-2011.

http://www.cpuc.ca.gov/PUBLISHED/FINAL_DEC
ISION/40212.htm#TopOfPage D.08-07-047:
http://docs.cpuc.ca.gov/cyberdocs/Libraries/WEB
PUB/Common/searchResultsdsp.asp?pagenumb
er=1&FT=false&fromQSearch=yes&desc=Detaile
d+Search

EE is included as a resource for procurement and
transmission needs as part of the LT planning
process as described in Section 1.2.1
rgy efficiency as a resource
              PUC Code 701 states that utilities should seek to
              exploit all practical and cost-effective efficiency.
              Section 454.56 require unmet resource needs to
              be first met through all cost-effective EE

              701: http://www.leginfo.ca.gov/cgi-
              bin/displaycode?section=puc&group=00001-
              01000&file=701-709.7 454.56:
              http://www.leginfo.ca.gov/cgi-
              bin/waisgate?WAISdocID=5144802949+0+0+0&
              WAISaction=retrieve



              TRC and PAC are used in CA for both electric
              and NG, and TRC is the primary test. This is
              most recently reiterated in the CPUC EE Policy
              Manual v.4.0 adopted in Aug 2008; “This
              Commission relies on the Total Resource Cost
              Test (TRC) as the primary indicator of energy
              efficiency program cost effectiveness, consistent
              with our view that ratepayer-funded energy
              efficiency should focus on programs that serve as
              resource alternatives to supply-side options.”
              CPUC Decision 05-04-051 requires EE portfolios
              have to pass the “dual test,” in which the entire
              EE portfolios of each utility has to pass both the
              TRC and PAC cost-effectiveness tests.

              http://www.cpuc.ca.gov/PUBLISHED/FINAL_DEC
              ISION/45783-03.htm#TopOfPage
              On Sept. 18, 2008, the CPUC adopted
              California’s first Long Term Energy Efficiency
              Strategic Plan, presenting a single roadmap to
              achieve maximum energy savings across all
              major groups and sectors in California. This
              comprehensive Plan for 2009 to 2020 is the
              state’s first integrated framework of goals and
              strategies for saving energy, covering
              government, utility, and private sector actions,
              and holds energy efficiency to its role as the
              highest priority resource in meeting California’s
              energy needs. EE potential studies have been
              performed in 2002, 2006, and 2008. The CPUC’s
              long-term EE goal-setting has been based on
              potential found in these studies.
              www.californiaenergyefficiency.com/docs/EEStrat
              egicPlan.pdf


              PGC-funded programs must be available to all
              classes of ratepayers. Procurement-funded
              programs may be designed to capture the gratest
              amount of potential efficiency.

              The CPUC set energy savings goals for IOUs for
              2004-2013 (D.04-09-060), which are expected to
              save approx 1% of total electricity forecast sales
              per year. In 2013, total savings goals are 23183
              GWh and 4885 MW peak. In setting these goals,
              the IOUs are directed to meet these goals
              through their procurement plans. Also see
              comments on section 1.2.2. The state’s PGC
              helps provide funding, and utilities are required to
              draw from procurement funds to supplement PGC
              funding to caption all cost-effective EE; see
              comments on 2.1.
http://www.cpuc.ca.gov/PUBLISHED/FINAL_DEC
ISION/40214.htm
The EAP goal of procuring 90% of maximum
achievable energy efficiency potential has been
quantified into annual MW and MWh savings
goals for each IOU through 2013. The EE
Strategic Plan has updated goals from 2009-
2020. See 1.2.2 for add'l detail.
through 2013:
http://docs.cpuc.ca.gov/PUBLISHED/FINAL_DEC
ISION/85995.htm. An updated decision in July
2008 includes goals for 2012-2020:
http://docs.cpuc.ca.gov/PUBLISHED/FINAL_DEC
ISION/85995.htm




 EE savings goals are required to be included in
the IOU LT procurement plans.
http://docs.cpuc.ca.gov/PUBLISHED/FINAL_DEC
ISION/85995.htm




Savings goals for 2006-2013 were established in
D. 04-09-060.

Expected savings for 2006. Savings are based on
programs approved in IOU's 2006-2008 efficiency
plans in Decision 05-06-043. Tables can be found
in Attachment 4 to the decision, p. 39 of the PDF
file.
http://www.cpuc.ca.gov/PUBLISHED/Graphics/49
863.PDF
Protocols developed by the CPUC and
stakeholders were published in 2006 and will be
updated as necessary.

The protocols and other documents are available
at
http://www.cpuc.ca.gov/static/energy/electric/ener
gy+efficiency/em+and+v/index.htm
most recent EM&V funding decision for 2006-08
cycle was D.05-11-011; this is to be done for
each three-year program cycle.
http://docs.cpuc.ca.gov/PUBLISHED/FINAL_DEC
ISION/51420.htm




Annual assessments are done on a deemed
savings basis. Final evaluations (typically done
every 3 years) are done on actual savings for the
highest grossing savings programs.
Historically utilities have administered efficiency
programs. Decision 05-01-055, issued in 2005,
affirmed that IOUs would continue to administer
EE portfolios in the post-restructuring energy
sector.
http://www.cpuc.ca.gov/PUBLISHED/FINAL_DEC
ISION/43628.htm#TopOfPage




Long Term Procurement plans are submitted
every two years that look out over a 10 year
period. Next utility applications are planned to be
adopted in 2010, with IOU filings anticipated by
end of 2009.

Statewide mandatory standards exceed 2003
IECC.

http://bcap-energy.org/node/56


Statewide mandatory standards exceed 2006
ASHRAE.




http://bcap-energy.org/node/56
Standards are in place for a wide range of
products.

http://www.energy.ca.gov/appliances/index.html

CA Executive Order S-20-04, issued in Dec.
2004, requires state agencies and departments to
reduce their energy consumption by 20% from
2003 levels by 2015. The order also directs the
Division of the State Architect to develop new
http://www.energy.ca.gov/greenbuilding/
documents/executive_order_s-20-04.html
gy efficiency where cost-effective.
               A public goods charge (PGC) provides baseline
               funding. Additional funding needed to meet
               savings goals comes from utility procurement
               budgets. The amount of procurement funding is
               due to increase incrementally through 2013 to
               meet aggressive savings goals.
               Assembly Bill 1890 (1996 Legislative Session)
               established the initial PGC. See p. 43.
               http://www.leginfo.ca.gov/pub/95-
               96/bill/asm/ab_1851-
               1900/ab_1890_bill_960924_chaptered.pdf
               Decision 0312060, issued December 18, 2003,
               authorizes the use of procurement funds for
               energy efficiency programs.
               http://www.cpuc.ca.gov/PUBLISHED/FINAL_DEC
               ISION/32828.htm




               PGC budget is established in statute, IOU LT
               utility procurement plans must meet adopted EE
               savings goals, and utilities may request additional
               funding for EE or demand response programs in
               order to meet unanticipated demand for approved
               programs.




               Unknown. The CA Air Resources Board is
               currently considering options for a carbon trading
               program as part of implementation of AB32's
               GHG emission reduction goals. In addition, CA is
               part of the Western Climate Initiative which is
               also developing a recommendation for the region.
               These efforts are being closely coordinated. The
               CPUC recommended that • "All auction revenues
               should be used for purposes related to AB 32,
               and all revenue from the auction of allowances
               allocated to the electricity sector should be used
               for the benefit of the electricity sector, including
               the support of investments in renewables, energy
               efficiency, new energy technology, infrastructure,
               customer bill relief (possibly through rebates),
               and other similar programs." as part of



               http://www.cpuc.ca.gov/PUBLISHED/FINAL_DEC
 ve energy efficiency and modify ratemaking practices to
All major investor-owned utilities are decoupled.
A 2001 statute provided the basis for decoupling.
Mechanisms for individual utilities have been
approved on a case by case basis between 2002
and 2006. For all utilities, initial test year revenue
requirements were determined during a rate
case, and balancing accounts were established to
true-up revenue requirements annually. Between
rate cases, revenue requirements are adjusted
annually for inflation, using utility-specific
mechanisms. Mechanisms may include factors to
account for customer growth, or factors to limit
escalation of the revenue requirement. Separate
balancing accounts may be used for tracking and
reconciling generation and distribution revenues.


Public Utilities Code 739.10 states “The
commission shall ensure that errors in estimates
of demand elasticity or sales do not result in
material over or undercollections of the electrical
corporations.” See http://leginfo.ca.gov/cgi-
bin/displaycode?section=puc&group=00001-
01000&file=727-755

Southern California Gas and SDGE:
Distribution revenue was decoupled in Decision
05-03-023. See
http://docs.cpuc.ca.gov/published/FINAL_DECISI
ON/44820.htm.



PGE: Has been decoupled since 1978. An
annual atrition mechanism adjusts for customer
growth, inflation, and replacement of aging
infrastructure facilities.


Soutwest Gas: Has had some form of
decoupling since the 1970s. Decoupling was
expanded to all customer classes in 2004 through
the use of a revenue cap and balancing account.




The Energy Action Plan states that investments
in efficiency should be as profitable to utilities as
investments in supply. The Commission has
stated its intention to adopt incentives numerous
times. This issue will be examined in proceeding
06-04-010; Decision 07-09-043 was issued in this
proceeding in September 2007; see decision for
details. Implementation of the existing incentive
mechanism has proven controversial and
problemmative. In Jan 2009, a new proceeding
R.09-01-019 to review and potentially propose
new policies.
Documents related to Proceeding 06-04-010 are
available at
http://www.cpuc.ca.gov/proceedings/R0604010.ht
m#documents. Decision 07-09-043:
http://docs.cpuc.ca.gov/word_pdf/FINAL_DECISI
ON/73172.pdf The new rulemaking is posted at:
http://docs.cpuc.ca.gov/Published/proceedings/R
0901019.htm




SB1388, passed in 2000, required the CPUC to
investigate various approaches to rate design

California Public Utilities Code Section 393. See
http://www.leginfo.ca.gov/cgi-
bin/displaycode?section=puc&group=00001-
01000&file=391-393



Info on tariffs and rates can be found at:
www.cpuc.ca.gov/PUC/energy/Electric+Rates/




Baseline set and increasing block rates in place

Info on tariffs and rates can be found at:
www.cpuc.ca.gov/PUC/energy/Electric+Rates/
                                                                        COLORADO
                                                                              Electric
Recommendation 1: Recognize energy efficiency as a high priority energy resource.
         EE is established as a high priority resource,       HB 1037, passed in 2007, requires utilities to
         equivalent or superior to supply resources           establish electric and gas savings goals that
                                                              support the minimization of revenue
                                                              requirements. As a result, in a 2008 PUC
                                                              decision, Xcel Energy/PSCo’s goals were
                                                              set, which call for the utility to help its
                                                          Y   customers reduce their electricity use in
                                                              2020 by about 11.5%, saving 3,669 GWh,
                                                              from energy efficiency programs
                                                              implemented during 2009-2020. Same goals
                                                              in percentage terms were also adopted for
  1.1                                                         Black Hills Energy, the other IOU in
                                                              Colorado
                                                              HB 1037 is available at
                                                              http://www.leg.state.co.us/clics/clics2007a/cs
                                                          S   l.nsf/fsbillcont3/5EA2048E8A50B212872572
                                                              51007B8474?open&file=1037_enr.pdf

                                                              The Decision approving the resource plan
                                                              can be found at
                                                          R   http://www.dora.state.co.us/puc/DocketsDeci
                                                              sions/decisions/2008/C08-0929_07A-
                                                              447E.pdf
         1.2.1 EE is integrated into an active IRP,           Current least cost planning rules require
         portfolio management, or other planning              minimal consideration of efficiency. HB 1037
         process                                              creates statute 40-2.2-104, which states that
                                                          Y
                                                              the goal of resource planning is to minimize
                                                              the present value of revenue requirements.
                                                              See 1.1 above.
                                                              HB 1037 is available at
                                                              http://www.leg.state.co.us/clics/clics2007a/cs
                                                          S
                                                              l.nsf/fsbillcont3/5EA2048E8A50B212872572
                                                              51007B8474?open&file=1037_enr.pdf
                                                              Current least cost planning rules are
                                                              available at
                                                              http://www.sos.state.co.us/CCR/Rule.do?de
                                                              ptID=18&deptName=700%20Department%2
                                                              0of%20Regulatory%20Agencies&agencyID=
                                                              96&agencyName=723%20Public%20Utilities
                                                          S
  1.2                                                         %20Commission&ccrDocID=2259&ccrDocN
                                                              ame=4%20CCR%20723-
                                                              3%20RULES%20REGULATING%20ELECT
                                                              RIC%20UTILITIES&subDocID=31404&subD
                                                              ocName=LEAST-
                                                              COST%20PLANNING&version=2
  1.2




                                                           Consideration of Public Service Co.'s DSM
                                                           and IRP activities will be done in DOCKET
                                                           NO. 07A-447E Link to summary of Sept
                                                           2008 IRP Decision and Decision document:
                                                       R
                                                           www.dora.state.co.us/PUC/publications/New
                                                           sReleases/09-19-08NR_DecisionPSCoERP-
                                                           PhaseI.htm

        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               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                HB 1037, passed in 2007, requires utilities to
                                                           establish savings goals that support the
                                                       Y   minimization of revenue requirements.
  2.1


                                                           The RIM test had been the primary cost-
                                                           benefit test, prior to 2004. The 2004 Excel
                                                           settlement required the TRC test. HB 1037,
                                                       Y   passed in 2007, amends statute 40-1-102 to
                                                           require the use of a cost-benefit test that
        The TRC or Societal Cost Test is used to           included avoided costs and non-energy
  2.2   evaluate EE programs                               benefits.
                                                           The 2004 Xcel DSM settlement is available
                                                           at
                                                       U
                                                           http://www.swenergy.org/news/XCEL_Energ
                                                           y_Settlement_DSM_Language.pdf
                                                       S   HB 1037 is available at
                                                           http://www.leg.state.co.us/clics/clics2007a/cs
        2.3.1 Potential for cost-effective EE has          A 2004 Xcel DSM settlement required Xcel
        been established through a potential study     Y   to conduct a potential study.
                                                           The 2004 Xcel DSM settlement is available
                                                           at
                                                       R
  2.3                                                      http://www.swenergy.org/news/XCEL_Energ
                                                           y_Settlement_DSM_Language.pdf
2.3

      2.3.2 Established EE programs reach all              HB 1037 requires utilities to offer programs
      customer classes                                 Y   to all customer classes.


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

      2.5.1 Quantitative MW and MWh savings                HB 1037 directs the Commission to
      goals have been established and are                  establish savings goals based on potential,
      producing incremental investment.                    demand, and other factors. Goals are to
                                                           increase to 5% of 2006 sales and 5% of
                                                       Y   2006 peak demand by 2018. Interim goals
                                                           are to be established at the Commission's
                                                           discretion. The PUC established higher
                                                           goals for Xcel Energy in Docket 07A-420E.

                                                           HB 1037 is available at
                                                           http://www.leg.state.co.us/clics/clics2007a/cs
                                                       S   l.nsf/fsbillcont3/5EA2048E8A50B212872572
                                                           51007B8474?open&file=1037_enr.pdf

                                                           The Aug 2008 Decision Calls for energy
                                                           savings of at least 1,744 GWh (energy) and
                                                           421 MW (demand) by 2015, via demand-
                                                           side management (DSM) programs, the
                                                       R   equivalent of two medium sized power
2.5                                                        plants. Docket 07A-420E:
                                                           http://www.dora.state.co.us/PUC/DocketsDe
                                                           cisions/HighprofileDockets/07A-420E.htm

      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        a
      part of program approval and budget-setting
      process; (d) other

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


      2.5.4 Expected Capacity Savings 2006
      (Annual MW)

      2.5.5 Energy Savings Goals 2006 (Annual
      MWh or MTherms)

      2.6.1 A robust M&V process has been                  A 2004 Xcel DSM settlement required Xcel
                                                       Y
      established                                          to conduct M&V activities.
                                                            The 2004 Xcel DSM settlement is available
                                                            at
                                                        R
                                                            http://www.swenergy.org/news/XCEL_Energ
                                                            y_Settlement_DSM_Language.pdf
      2.6.1.1   M&V is adequately funded


      2.6.1.2 Energy savings are used to
      measure performance                                   The PUC implemented a performance-
                                                            based incentive, enabling PSCo to earn a
                                                            profit on its DSM expenditures as long as it
                                                            achieves at least 80% of its energy savings
                                                            goal in any one year, in addition to
                                                        Y
                                                            recovering the costs for its DSM programs.
                                                            The incentive is tied to energy savings
                                                            achieved and the net economic benefits of
2.6                                                         the programs, and is capped at 20% of the
                                                            utility’s DSM expenditures. Same incentives
                                                            also adopted for Black Hills Energy.
                                                        R
      2.6.1.3 M&V is done according to a                    Xcel does M&V on an ongoing basis.
      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                  PSCo’s programs are administered by the
      established                                       Y   company after approval from the Colorado
                                                            PUC.
                                                        R
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
        2.9.1 Building Energy Codes for residential        Legislation passed in 2007 (HB 1146)
        buildings are in place and regularly updated       requires all cities and counties with building
                                                           codes to adopt and enforce a relatively up-to-
                                                           date building energy code, according to
                                                           SWEEP. Cities and counties without
                                                        Y- building codes are not affected. 2003 IECC
                                                           or any successor edition is the minimum
                                                           energy code for any jurisdiction that has
                                                           adopted a building code; can use REScheck
                                                           to show compliance.

                                                            http://bcap-energy.org/node/57
                                                        S

  2.9   2.9.2 Building Energy Codes for                    Legislation passed in 2007 (HB 1146)
        commercial buildings are in place and              requires all cities and counties with building
        regularly updated                                  codes to adopt and enforce a relatively up-to-
                                                           date building energy code, according to
                                                           SWEEP. Cities and counties without
                                                           building codes are not affected. 2003 IECC
                                                           or any successor edition is the minimum
                                                        Y-
                                                           energy code for any jurisdiction that has
                                                           adopted a building code; can use COMcheck
                                                           to show compliance. In any area that does
                                                           not adopt or enforce local codes, the 1993
                                                           MEC is mandatory for hotels, motels, and
                                                           multifamily dwellings.

                                                        S   http://bcap-energy.org/node/57
        Appliance and Equipment Efficiency
        Standards are in place and regularly            N
 2.10
        updated
        Energy efficiency is a high priority in state      Executive Order D 014 03 established
        buildings and state funded buildings as            energy performance contracting for state
                                                         Y
        evidenced in capital planning and enabling         facilities. Executive Order D 005 05 requires
        performance contracts                              managers of state facilities to develop
                                                           http://www.state.co.us/gov_dir/govnr_dir/exe
                                                        EO
 2.11                                                      c_orders/d01403.pdf
                                                           http://www.dsireusa.org/incentives/incentive.
                                                           cfm?Incentive_Code=CO35R&re=0&ee=1

                                                            http://www.colorado.gov/energy/index.php?/g
                                                            reening/energy
Recommendation 3: Miscellaneous Policies
        3.1.1 Public education programs on EE are
        in place. (See Guide Tab for Y/N criteria.)




  3.1
         3.1.2 Process is in place, such as a state
         or regional collaborative, to pursue EE as a
                                                            Y
  3.1    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            Colorado Springs Utilities, Governor's
         program? (who is sponsor)                              Energy Office, Xcel Energy
         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                     Cost recovery has historically been done
                                                                through tariff riders. HB 1037, passed in
                                                                2007, does not change the cost recovery
                                                            Y
                                                                mechanism, but establishes that cost-
                                                                recovery mechanisms for DSM are in the
                                                                public interest.
                                                                HB 1037 is available at
                                                                http://www.leg.state.co.us/clics/clics2007a/cs
                                                            S   l.nsf/fsbillcont3/5EA2048E8A50B212872572
  4.1
                                                                51007B8474?open&file=1037_enr.pdf


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

         4.1.3 Funding is for multi-year periods

         A base energy efficiency spending level                HB 1037 states "The Commission shall
         exists, with opportunity to justify higher level       permit electric utilities to implement cost-
                                                                effective electricity DSM programs to reduce
                                                            Y
                                                                the need for additional resource that would
                                                                otherwise be met through a competitive
  4.2                                                           acquisition process."
                                                                Aug 2008 Phase I Decision sets targets
                                                                beyond HB 1037. Phase II anticipated in
                                                            R   May 2009 will adopt final procurement
                                                                targets for all resources. See 1.2.1 above.
         % of net (retail) utility revenue presently
         used for energy efficiency [no unit = %; m/k
  4.3    = mils/kWh]



         Funds from carbon trading program support       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               HB 1037 directs the Commission to offer
         addressed and disincentives are removed             utilities an opportunity to make DSM
                                                         Y investments more profitable than other
                                                             investments through measures it deems
                                                             appropriate.
                                                             Currently being addressed in Docket 07A-
  5.1                                                   R, U
                                                             447E
                                                             http://www.dora.state.co.us/puc/electricmain.
                                                             htm
         5.1.2 Method used is: (a) decoupling; (b)
         lost revenue recovery; or (c) non-utility       b
         implementaion of EE

         5.2.1 Utility/shareholder EE incentives are         Incentives may be developed by the
         provided                                            Commission, as directed by HB 1037 (see
                                                         N   above).


  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               according to energy&environment
         variable rate designs have been eliminated      N   economics document


         5.4.1 Time sensitive rates in place

         5.4.2 Usage sensitive rates in place            N




  5.4
         5.4.3 AMI deployment planned                      In March 2008, the Colorado Public Utilities
                                                           Commission decided not to adopt PURPA
                                                           Standard 14 (“Time-Based Metering and
                                                           Communications”) as enacted in EPACT
                                                           2005. The Commission stated that its
                                                           decision is based in part on the fact that the
  5.4                                                   Y-
                                                           Public Service Company of Colorado is
                                                           building (with Xcel Energy) the Smart Grid
                                                           City in Boulder, CO, and that Aquila
                                                           Networks intends to deploy AMI in the City of
                                                           Pueblo.


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

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

         Investment Tax Credit for energy efficient
                                                        N
    -    investments

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


Distributed Generation Policies
      A statewide interconnection policy is in place      Colorado has statewide standards for net-
                                                          metering and interconnection, established by
                                                          Amendment 37. Systems up to 10 MW are
                                                          allowed to interconnect and there is a
                                                          standard interconnection agreement.
                                                          External disconnects are not addressed.
                                                          There are three levels of interconnection.
                                                          Systems up to 2 MW have to comply with
                                                          IEEE 1547 and UL 1741 standards. Liability
                                                          insurance of $300,000 is required for
                                                          systems up to 10 kW and $2 million in
                                                          insurance is required for systems up to 2
                                                          MW. For larger systems those < 2MW up to
                                                       Y-
                                                          10 MW insurance requirements will be
7.1                                                       determined on a case-by-case basis. The
                                                          PUC standards generally apply to utilities
                                                          with 40,000 or more customers and all
                                                          cooperative utilities. H.B. 1160, enacted in
                                                          2008, requires municipal utilities with 5,000
                                                          customers or more to adopt interconnection
                                                          rules that are functionally similar to the
                                                          PUC's rules. Systems up to two megawatts
                                                          (MW) in capacity that generate electricity
                                                          using qualifying renewable-energy resources
                                                          are eligible for net metering.

                                                          Amendment 37 can be accessed here:
                                                       S  http://www.dora.state.co.us/puc/rules/723-
                                                          3.pdf
      A statewide net metering policy is in place         CO adopted net metering standards along
                                                          with interconnection standards in
                                                          Amendment 37. The standards apply to
                                                          electric utilities that serve 40,000 or more
                                                          customers. Systems up to 2 MW in capacity
                                                          that generate electricity using qualifying
                                                          renewable energy resources (anaerobic
                                                          digestion, small hydroelectric, fuel cells
                                                          using renewable fuels) are eligible to net
                                                       Y+
                                                          meter. Net excess generation (NEG) is
                                                          applied as a credit towards the next month. If
7.2                                                       a generation exceeds consumption then the
                                                          utility must reimburse the customers for the
                                                          excess generation at the utility's average
                                                          hourly incremental cost for the prior 12-
                                                          month period. There is no limit on overall
                                                          enrollment of net metered systems.

                                                           Amendment 37 can be accessed from here,
                                                           http://www.dsireusa.org/library/includes/ince
                                                       S   ntive2.cfm?Incentive_Code=CA21R&state=
                                                           CA&CurrentPageID=1&RE=1&EE=1.
      A statewide exit fee policy is in place
                                                          Colorado does not have a statewide policy
                                                      N
7.3                                                       on exit fees, DG system owners/operators
                                                          will not be charged such fees.

      A statewide standby rate policy is in place         Colorado does not have a statewide policy
                                                      N
                                                          on standby rates

                                                          Public Service Co of Colorado (Xcel Energy) -
                                                          Schedule PST - standby service is provided
                                                          to customers that contract with the utility for
                                                          a specific amount of standby capacity. A
                                                          moderate demand based reservation charge
                                                          and a customer charge is assessed every
7.4
                                                      U   month. Actual usage is charged through
                                                          high demand and moderate energy charges.
                                                          Billing demand is based on the maximum
                                                          demand of the month. Rate available at:
                                                          http://www.xcelenergy.com/Company/About_
                                                          Energy_and_Rates/Energy%20Prices%20(R
                                                          ates%20and%20Tariffs)/Pages/COEnergy_
                                                          Rates.aspx

      As part of resource planning process, CHP
      is reviewed and incorporated where effective          CO recently revised their resource planning
                                                            regulations, making permanent the
                                                            emergency rules adopted in Decision No.
                                                            C07-8029 with the later Decision No. C07-
                                                            1101 in December 2007. More specifically,
                                                            least cost planning provisions were changed
                                                            so that the benefits of "new clean energy"
                                                      N and "energy efficient technologies" are
                                                            considered in addition to their costs.
                                                            Additionally new clean energy and energy
                                                            efficient technologies must be addressed in
                                                            the resource planning process, this resource
                                                            category is now referred to as "Section 123
                                                            Resources," which are identified in §40-2-
7.5
                                                            123(1). CHP is not specifically mentioned in
                                                            resource planning requirements.
                                                            http://www.dora.state.co.us/puc/rules/723-
                                                      A
                                                            3.pdf
                                                     http://www.dora.state.co.us/PUC/DocketsDecision

                                                            Public Service Co of Colorado (Xcel Energy)
                                                            filed a 2007 electric resource plan with the
                                                      U+ PSC, which has a section on CO2 reduction
                                                            options and lists CHP technologies such as
                                                            gas-fired combined cycle systems. This plan
                                                            was approved in 2008.
                                                     http://www.dora.state.co.us/PUC/DocketsDecision
                            Natural Gas
urce.
            HB 1037, passed in 2007, requires utilities to
            establish electric and gas savings goals that
            support the minimization of revenue requirements.
            All investor-owned gas utilities in the state now
            have gas savings goals and programs.

        Y




            HB 1037 is available at
            http://www.leg.state.co.us/clics/clics2007a/csl.nsf/f
        S   sbillcont3/5EA2048E8A50B21287257251007B847
            4?open&file=1037_enr.pdf

            The Decision approving the resource plan can be
            found at
        R   http://www.dora.state.co.us/puc/DocketsDecisions/
            decisions/2008/C08-0929_07A-447E.pdf

            Current least cost planning rules require minimal
            consideration of efficiency. HB 1037 creates
            statute 40-2.2-104, which states that the goal of
            resource planning is to minimize the present value
            of revenue requirements. See 1.1 above.

            HB 1037 is available at
            http://www.leg.state.co.us/clics/clics2007a/csl.nsf/f
            sbillcont3/5EA2048E8A50B21287257251007B847
            4?open&file=1037_enr.pdf




        S
              R




effective energy efficiency as a resource
                  40-3.2-101, created in 2007 by HB 1037, requires
                  gas utilities to develop and implement
              Y   conservation programs. The statute also provides
                  guidance on savings goals, cost recovery, and
                  incentives; see sections below.

                  HB 1037, passed in 2007, amends statute 40-1-
                  102 to require the use of a cost-benefit test that
                  included avoided costs and non-energy benefits.
              Y



                  HB 1037 is available at
                  http://www.leg.state.co.us/clics/clics2007a/csl.nsf/f
              S
                  sbillcont3/5EA2048E8A50B21287257251007B847
                  4?open&file=1037_enr.pdf
    HB 1037 requires utilities to offer programs to all
Y   customer classes.


S
N


    HB 1037 directs the Commission to establish
    natural gas savings goals commensurate with
    conservation budgets and plans.Savings goals
    now in place for all gas utilities.
Y




    HB 1037 is available at
    http://www.leg.state.co.us/clics/clics2007a/csl.nsf/f
S   sbillcont3/5EA2048E8A50B21287257251007B847
    4?open&file=1037_enr.pdf




R




c




N
a
deliver energy efficiency where cost-effective.
                   HB 1037 directs the Commission to establish a
                   cost recovery mechanism for gas utilities. Utilities
                   are to have the option to expense or amortize
              N
                   DSM expenditures. Cost recovery mechanism was
                   in place as of 2009.

                   HB 1037, passed in 2007 and creating statute 40-
                   3.2-103, is available at
              S    http://www.leg.state.co.us/clics/clics2007a/csl.nsf/f
                   sbillcont3/5EA2048E8A50B21287257251007B847
                   4?open&file=1037_enr.pdf.
                HB 1037 directs the Commission to open a
                proceeding that will establish expenditure targets
          0.50% equal to at least 0.5% of utility revenues.


            S    HB 1037, passed in 2007 and creating statute 40-


cost-effective energy efficiency and modify ratemaking




                 HB 1037 directs the Commission to establish
                 incentives, based on utility performance in meeting
            N    savings goals, up to 25% of expenditures or 20%
                 of net economic benefits, whicher is lower.

                 HB 1037, passed in 2007 and creating statute 40-
                 3.2-103, is available at
                 http://www.leg.state.co.us/clics/clics2007a/csl.nsf/f
                                                                            HAWAII
                                                                               Electric

Recommendation 1: Recognize energy efficiency as a high priority energy resource.
         EE is established as a high priority resource,       SUMMARY: HECO completed its 4th IRP
         equivalent or superior to supply resources           process in September 2008. In November
                                                              and December 2008, the Commission
                                                              closed the IRP dockets for HECO, HELCO &
                                                              MECO to allow companies to divert
                                                              resources to the development of a Clean
                                                              Energy Scenario Planning framework, which
                                                              will lead to a new amended IRP Framework
                                                              as part of Hawaii's Clean Energy Initiative.
                                                              As of the end of 2008, CESP Framework
                                                              was not yet completed and the new IRP
                                                              amendments has not yet been proposed. All
                                                              activities pursuant to the IRP Framework
                                                              had been suspended. The former IRP
                                                          Y   Framework had prioritized energy efficiency.
                                                              It stated in its governing principles (principle
                                                              #7): "existing disincentives should be
  1.1                                                         removed and, as appropriate, incentives
                                                              should be established to encourage and
                                                              reward aggressive utility pursuit of demand-
                                                              side management programs. Incentive
                                                              mechanisms should be structured so that
                                                              investments in suitable and effective
                                                              demand-side management programs are at
                                                              least as attractive to the utility as
                                                              investments in supply-side options."



                                                              IRP Framework (PUC Decision and Order
                                                              No. 11630, Docket No. 6617) May 1992,
                                                              available at:
                                                              http://www.renewablehawaii.com/vcmcontent
                                                              /FileScan/PDFConvert/HECO_IRP3_App_C
                                                              _Final.pdf
      1.2.1 EE is integrated into an active IRP,         SUMMARY: HECO completed its 4th IRP
      portfolio management, or other planning            process in September 2008. In November
      process                                            and December 2008, the Commission
                                                         closed the IRP dockets for HECO, HELCO &
                                                         MECO to allow companies to dedicate
                                                         resources to the development of a new
                                                         Clean Energy Scenario Planning framework,
                                                         which will lead to a new revised IRP
                                                         Framework. The IRP Framework used
                                                         previously, including for 2008 planning, was
                                                         developed in 1992 in Order 11630. Under
                                                         the IRP Framework, costs and benefits must
                                                         be analyzed for all available and feasible
                                                     Y
                                                         supply and demand side options. The
                                                         Framework states in its governing principles
                                                         (principle #7): "existing disincentives should
                                                         be removed and, as appropriate, incentives
                                                         should be established to encourage and
                                                         reward aggressive utility pursuit of demand-
1.2                                                      side management programs. Incentive
                                                         mechanisms should be structured so that
                                                         investments in suitable and effective
                                                         demand-side management programs are at
                                                         least as attractive to the utility as
                                                         investments in supply-side options."

                                                         IRP Framework available at
                                                         http://www.renewablehawaii.com/vcmcontent
                                                         /FileScan/PDFConvert/HECO_IRP3_App_C
                                                         _Final.pdf; HECO IRP, Sept 2008, available
                                                         at
                                                         http://www.heco.com/vcmcontent/Integrated
                                                         Resource/IRP/PDF/HECO_IRP4_Plan2009_
                                                         2028_Final_Report.pdf
      1.2.2 Efficiency is procured as a resource
      for default service/standard offer customers


      EE is an alternative to transmission based         HECO's 2005 IRP 3 Appendix Q on
      on a long-term transparent IRP or                  Transmission Planning Consideration
      transmission system plan                           recognizes the least cost, best performance
                                                         transmission scenarios occur under plans for
                                                     Y
                                                         enhanced DSM and CHP. HECO's 2008
                                                         IRP considers distributed generation as an
                                                         alternative to transmission/distribution, but
                                                         not EE.
1.3
  1.3                                                     HECO IRP 3, 2005 available at
                                                          http://www.renewablehawaii.com/vcmcontent
                                                          /FileScan/PDFConvert/HECO_IRP3_App_Q
                                                          _Final.pdf; Sept 2008 IRP 4, p. 5-16,
                                                          available at
                                                          http://www.heco.com/vcmcontent/Integrated
                                                          Resource/IRP/PDF/HECO_IRP4_Plan2009_
                                                          2028_Final_Report.pdf
        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             The RPS law (sections 269-91 to 269-95) as
                                                        amended by Act 162 (2006) sets 10% RPS
                                                        for utilities by 2010; 15% by 2015; 20% by
                                                        2020. Energy savings through energy
                                                     Y- efficiency qualify as renewable electrical
  2.1                                                   energy. Under the October 2008 Agreement,
                                                        energy efficiency will not count toward the
                                                        RPS after 2014.
                                                          2008 Agreement available at
                                                          http://www.heco.com/vcmcontent/StaticFiles/
                                                          pdf/HCEI.pdf
        The TRC or Societal Cost Test is used to          All five tests are used.
                                                     Y-
  2.2   evaluate EE programs


        2.3.1 Potential for cost-effective EE has         EE potential study was undertaken for
        been established through a potential study        HECO 2008 IRP by Global Energy Partners
                                                          in September 2008. Energy Efficiency
                                                     Y
                                                          potential study was done for the Kauai Island
                                                          Utility Cooperative in April 26, 2005.

                                                          HECO available at
                                                          http://www.heco.com/vcmcontent/Integrated
                                                          Resource/IRP/PDF/AppendixN_HECO_IRP4
                                                          _Final_GEP_DSM.pdf; Energy Efficiency
                                                          Potential Study, Prepared for the Kauai
                                                          Island Utility Cooperative, April 26, 2005
                                                          available at
                                                          http://www.kiuc.coop/pdf/Kauai%20EE%20R
                                                          eport%20Final.pdf.



  2.3
      2.3.2 Established EE programs reach all             HECO utility programs target commercial,
      customer classes                                    industrial, residential and low-income
                                                          residential customers. HECO first introduced
2.3                                                       an EE program targeting low-income users
                                                      Y   in its 2005 IRP. October 2008 agreement
                                                          states that stakeholders will design and
                                                          deliver program specifically targeted to
                                                          benefit low income electric and gas users.

                                                          See July 7, 2008 Order Regarding Demand-
                                                          Side Management Programs' Goals and
                                                          Budgets, Public Utilities Commission,
                                                          Docket No. 2007-0341 available at
                                                          http://hawaii.gov/dcca/areas/dca/dno/dno200
                                                          8/; 2008 Agreement available at
                                                          http://www.heco.com/vcmcontent/StaticFiles/
                                                          pdf/HCEI.pdf; HECO 2005 IRP available at
                                                          http://www.heco.com/vcmcontent/FileScan/P
                                                          DFConvert/HECO_IRP3_Final_ExecSumma
                                                          ry.pdf.




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

      2.5.1 Quantitative MW and MWh savings               Docket No. 05-0069, Order 23258, issued
      goals have been established and are                 February 13, 2007 established ee goals for
      producing incremental investment.                   HECO utilities according to the estimated
                                                      Y   savings of the utility programs. The 2008
                                                          requested approval for programs additions
                                                          and expansions.
                                                        See p. 30 of Docket No. 05-0069, Order
                                                        23258, issued February 13, 2007 is available
                                                        at
                                                        http://hawaii.gov/dcca/areas/dca/dno/dno200
                                                        7/.
      2.5.2 Goals are established: (a) connection       (a) Docket No. 05-0069, Order 23258,
      with IRP or other planning process; (b) as        issued February 13, 2007 established ee
      part of an EEPS or similar system; (c) as         goals and requires the goals be revised
      part of program approval and budget-setting       through the IRP process. (b) As part of the
      process; (d) other                                Hawaii Clean Energy Initiative, an October
                                                  a, b, 2008 compact between the state and the
                                                        electric utilities stated all parties would
                                                        support the development of an energy
                                                        efficiency portfolio standard in state statute
                                                        through 2009 session of the legislature.




2.5
                                                           (a)Docket No. 05-0069 Order 23258, issued
                                                           February 13, 2007 is available at
                                                           http://hawaii.gov/dcca/areas/dca/dno/dno200
                                                           7/; (b) October 2008 agreement available at:
                                                           http://www.heco.com/vcmcontent/StaticFiles/
2.5                                                        pdf/HCEI.pdf

      2.5.3 Energy Efficiency can be used to fulfill       The RPS law (sections 269-91 to 269-95) as
      requirements of an RPS or similar standard           amended by Act 162 (2006) allows energy
                                                           efficiency to qualify as renewable electrical
                                                           energy. It sets a 10% RPS for utilities by
                                                           2010; 15% by 2015; 20% by 2020. An
                                                           October 2008 agreement between the state
                                                           and utilities articulates a commitment to
                                                           enacting an EEPS through the legislature.
                                                           As of the end of 2008 it was not in place.
                                                       Y
                                                           Under the 2008 Agreement, energy
                                                           efficiency will not count toward utilities' RPS
                                                           goals after 2014. However, energy
                                                           efficiency is incorporated into the Hawaii
                                                           Clean Energy Initiative goal under which
                                                           HECO has agreed to meet 70% of electricity
                                                           and transportation needs with clean sources
                                                           by 2030.

                                                           October 2008 Agreement:
                                                           http://www.heco.com/vcmcontent/StaticFiles/
                                                           pdf/HCEI.pdf
      2.5.4 Expected Capacity Savings 2006
      (Annual MW)

      2.5.5 Energy Savings Goals 2006 (Annual
      MWh or MTherms)

      2.6.1 A robust M&V process has been                  November 30, 2007 PUC Docket No. 2007-
      established                                          0341, 23861, requires periodic DSM
                                                           evaluation reports, as well as requests for
                                                           program modification, to be filed by HECO
                                                           under this docket. HECO produces Annual
                                                           Program Accomplishments and Surcharge
                                                           Report (“A&S Report”).

                                                           11/30/2007 Public Utilities Commission,
                                                           Docket No. 2007-0341, Order 23861
                                                           available at
                                                           http://hawaii.gov/dcca/areas/dca/dno/dno200
                                                           7/.
      2.6.1.1   M&V is adequately funded



2.6
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                A 2007 Order approved an independent
      established                                         energy efficiency administrator, to be funded
                                                          by a statewide PBF. See Order 23258,
                                                      Y   issued 2/13/2007. The third-party
                                                          administrator is charged with assuming
                                                          responsibility of utility program by mid-2009.

                                                           http://hawaii.gov/budget/puc/dockets/05-
                                                      S
                                                           0069_dno23258_2007-02-13.pdf;
2.7   2.7.2 Delivery is via: (a) utility                   http://www.hawaii.gov/budget/puc/pr/NR-
                                                           July 2008 Order, Docket No. 2007-0323,
      administration; (b) third-party administration;      established a 6 month transition period from
      or (c) government agency                        a, b January to June 2009 for EE programs to
                                                           shift from utilities to the third-party
                                                           administrator.
                                                       July 2, 2008 Docket No. 2007-0323 available
                                                       at
                                                       http://hawaii.gov/dcca/areas/dca/dno/dno200
                                                       8/
      Resource plans are regularly updated             IRPs undergo major review every three
                                                    Y
                                                       years.
                                                       IRP Framework (PUC Decision and Order
                                                       No. 11630, Docket No. 6617) May 1992,
2.8
                                                       available at:
                                                       http://www.renewablehawaii.com/vcmcontent
                                                       /FileScan/PDFConvert/HECO_IRP3_App_C
                                                       _Final.pdf
      2.9.1 Building Energy Codes for residential      State code based on 1995 MEC is voluntary
      buildings are in place and regularly updated N/N statewide and mandatory for counties of
                                                       Honolulu and Maui.
                                                       http://bcap-
                                                       energy.org/state_status.php?state_ab=HI
2.9
  2.9
         2.9.2 Building Energy Codes for                     No statewide standards. Some counties
         commercial buildings are in place and           N/N have established their own codes, based on
         regularly updated                                   pre-2000 ASHRAE.
                                                             http://bcap-
                                                             energy.org/state_status.php?state_ab=HI
         Appliance and Equipment Efficiency
         Standards are in place and regularly             N
  2.10   updated

         Energy efficiency is a high priority in state        Hawaii's "Lead by Example" program
         buildings and state funded buildings as              includes a wide range of programs and
                                                          Y
         evidenced in capital planning and enabling           standards for state facilities.
  2.11   performance contracts
                                                              http://www.hawaii.gov/dbedt/info/energy/effici
                                                              ency/state/
Recommendation 3: Miscellaneous Policies
         3.1.1 Public education programs on EE are
                                                         Y-
         in place. (See Guide Tab for Y/N criteria.)



         3.1.2 Process is in place, such as a state           Third Party Administrator will work with
         or regional collaborative, to pursue EE as a         utilities and stakeholders.
                                                          Y
         high-priority resource. (See Guide Tab for
  3.1    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          Hawaii Electric Light Co., Maui Electric
         program? (who is sponsor)                            Company, Hawaiian Electric Company
         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                       July 2008 PUC Order Docket No. 2007-0323
                                                                  initiated the collection of the PBF for the third-
                                                                  party administrator to begin July 2008,
                                                                  initially to finance startup costs. Previously,
                                                                  in 2007, the PUC created a statewide PBF to
                                                                  fund a third-party PBF administrator. HRS
                                                                  269-121 allows the PUC to establish a
                                                                  "public benefits fund", funded by all or a
                                                                  portion of current DSM fees, to be used to
                                                                  support PUC-reviewed DSM and EE
                                                            Y
                                                                  programs. Previously, utilities collected
                                                                  "DSM fees" and used the funds to administer
                                                                  their own programs. The IRP framework
                                                                  states that costs of implementing the IRP
                                                                  are recoverable through a number of
                                                                  possible methods. The transfer of energy
                                                                  efficiency programs from the utilities to the
                                                                  PBF was scheduled to occur between
                                                                  January-July 2009.
  4.1
                                                                  Docket No. 2007-0323 available at
                                                                  http://hawaii.gov/dcca/areas/dca/dno/dno200
                                                                  8/. Information about the 2007 PBF approval
                                                            R     is available at
                                                                  http://puc.hawaii.gov/PressReleases/2007/N
                                                                  R-
                                                                  Energy_Efficiency_Public_Benefits_Fund.PD

                                                                  Statutory cost recovery provisions are
                                                            S     available at
                                                                  http://capitol.hawaii.gov/hrscurrent/Vol05_Ch
                                                                  0261-0319/HRS0269/HRS_0269-0121.HTM
         4.1.2 Recovery occurs via: (a) rider; (b)                PBF to fund the third-party administrator was
         regular rate case; or (c) system benefits          c     initiated on July 1, 2008.
         charge
                                                                  http://puc.hawaii.gov/PressReleases/2007/N
         4.1.3 Funding is for multi-year periods                  R-

         A base energy efficiency spending level
         exists, with opportunity to justify higher level
  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
         EE                                                 n/a
  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 IRP Framework addresses disincentives
      addressed and disincentives are removed          by authorizing the Commission to establish
                                                       lost revenue recovery. The legislature has
                                                   Y
                                                       also granted the PUC authority to establish a
                                                       third party administrator.

                                                       Hawaii 2006 Legislature, Senate Bill 3185
                                                       amends Chapter 269 of the Hawaii Code to
                                                       allow the Commission to authorize an
                                                       Energy Efficiency Utility.
                                                       http://capitol.hawaii.gov/hrscurrent/Vol05_Ch
                                                       0261-0319/HRS0269/HRS_0269-0122.HTM

                                                       The IRP Framework states that disincentives
                                                       should be removed and incentives
                                                       developed to make demand side options at
                                                       least as attractive to utilities as supply side
                                                       options. The Framework further authorizes
                                                       the Commission to establish lost revenue
                                                       recovery and/or incentive mechanisms as
                                                       necessary.

      5.1.2 Method used is: (a) decoupling; (b)        (a) October 24, 2008, the PUC opened
      lost revenue recovery; or (c) non-utility        Docket No. 2008-0274 to initiate proceeding
      implementation of EE                             on decoupling for Hawaiian utilities. This
5.1                                                    was driven by the October 2008 agreement
                                                       between the state and the utilities which
                                                       announced the intention of the parties to
                                                       adopt decoupling, to be initiated with the
                                                  a,b,
                                                       2009 HEC rate case. (b) The 1992 IRP
                                                   c
                                                       Framework allows use of cost recovery
                                                       mechanisms for DSM programs. (c) A third
                                                       party administrator will assume responsibility
                                                       for all utility energy efficiency programs
                                                       starting in the first half of 2009.


                                                       October 24, 2008 Docket No. 2008-0274 on
                                                       decoupling available at
                                                       http://hawaii.gov/budget/puc/PUC%20Annou
                                                       ncements/PUC%20opens%20proceeding%2
                                                       0relating%20to%20Decoupling.PDF/view;
                                                       IRP Framework (see item F) available at
                                                       http://www.renewablehawaii.com/vcmcontent
                                                       /FileScan/PDFConvert/HECO_IRP3_App_C
                                                       _Final.pdf; October 2008 agreement
                                                       available at:
                                                       http://www.heco.com/vcmcontent/StaticFiles/
                                                       pdf/HCEI.pdf
         5.2.1 Utility/shareholder EE incentives are       A shared savings, positive-only incentive
         provided                                          mechanism is in place, based on a
                                                           percentage of net benefits attributable to
                                                           demand side management programs. The
                                                           incentive is structured such that if 100% of
                                                       Y
                                                           energy efficiency goals are met, the utility
                                                           will receive 1% of net system benefits; it
                                                           increases incrementally to a maximum of 5%
                                                           of the net system benefits if goals are
  5.2                                                      exceeded by 10%.
                                                           Feb 13, 2007, PUC Docket No. 05-0069,
                                                           Order 23258, "DSM Utility Incentive
                                                           Schedule", p. 104, available at
                                                           http://hawaii.gov/dcca/areas/dca/dno/dno200
                                                           7/.
         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               The October 2008 Agreement stated that
                                                           Hawaiian Electric would request expedited
                                                           approval to fully implement interim time-of-
                                                           use rates for those customers.


         5.4.2 Usage sensitive rates in place

         5.4.3 AMI deployment planned                      HECO applied to the commission for
                                                           approval for advance metering project on
                                                           December 1, 2008; commission opened
  5.4                                                      document number 2008-0303 to investigate.
                                                       N   The October 2008 Agreement stated that
                                                           Hawaiian Electric would apply to the
                                                           Commission for immediate approval to begin
                                                           installing advanced meters for all customers
                                                           who request them; by December 31, 2008,
                                                           Docket No. 2008-0303 available at
                                                           http://dms.puc.hawaii.gov/dms/OpenDocSer
                                                           vlet?RT=&document_id=91+3+ICM4+LSDB
         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
         Investment Tax Credit for energy efficient
    -    investments

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


Distributed Generation Policies
         A statewide interconnection policy is in place       Hawaii has simplified interconnection rules
                                                              for renewables, and all other DG. There are
                                                              some differences between the rules for
                                                              Kauai (which has an electric cooperative)
                                                              and all other islands. For systems up to 10
                                                              kilowatts (kW) with an inverter (and inverter-
                                                              based DG under 250 kW on islands other
                                                              than Kauai), there is a simple application
                                                              process for interconnection. For other
                                                              smaller systems, there are simplified
                                                              interconnection procedures for net metering
                                                              for solar, wind, biomass and hydroelectric
                                                              systems up to 50 kW in capacity on Kauai
                                                          Y   and 100 kW in capacity on the other islands.
                                                              Two dockets were opened in 2006 to
                                                              streamline interconnection procedures: (1)
                                                              PUC Docket No. 2006-0497 (Hawaiian
   7.1                                                        Electric Co., Inc. (HECO); Hawaii Electric
                                                              Light Co., Inc.; and Maui Electric Co., Ltd.);
                                                              and (2) PUC Docket No. 2006-0498 (KIUC).
                                                              The PUC issued a decision and order in
                                                              April and May 2008 that created a more
                                                              streamlined procedure for interconnection to
                                                              HECO, Hawaii Electric Light Co., and Maui
                                                              Electric Co. KIUC provides small generating
                                                              facilities under two megawatts (MW) a fast-
                                                              track process, while larger systems must
                                                              PUC Order No. 19773 can be accessed
                                                              from here,
                                                          R
                                                              http://www.dsireusa.org/documents/Incentive
                                                              s/HI01Rc.pdf
                                                              Decisions and dockets 2006-0497 and 2006-
                                                              0498 can be found here:
                                                          R
                                                              http://hawaii.gov/dcca/areas/dca/dno/dno200
                                                              8/
      A statewide net metering policy is in place      Hawaii has net metering rules in place
                                                       established with HRS § 269-101 et seq. All
                                                       utilities must offer net metering to residential
                                                       and "small commercial" customers with
                                                       solar, wind, biomass or hydroelectric
                                                       systems up to 50 kW in size (an increase is
                                                       possible). Utilities offer net metering until
                                                       total net-metered capacity equals 0.5% of
                                                       each utility's peak demand. Net excess
                                                       generation is carried forward in the form of a
                                                       kWh credit that is applied to the next
                                                       month's bill. At the end of a 12-month period
                                                       NEG will be granted to the utility without any
                                                       compensation to the customer unless the
                                                    Y+
                                                       customer enters into a purchase agreement.
                                                       In December 2008, the Commission
7.2
                                                       approved in part and denied in part,
                                                       stipulations filed by HELCO & MECO on
                                                       12/3/08. In particular, the Commission
                                                       approved the system cap from 1.0% to 3.0%
                                                       of system peak demand for HELCO and
                                                       MECO. 40% of the 3.0% system peak
                                                       demand would be reserved for small
                                                       systems (10kw or less). HELCO and MECO
                                                       will increase system cap from 3.0% to 4.0%
                                                       of system peak demand when NEM
                                                       applications equal or exceed 75% of then
                                                       existing 3.0% system peak demand cap for
                                                       HRS § 269-101 et seq can be accessed
                                                       from here,
                                                    S
                                                       http://www.dsireusa.org/documents/Incentive
                                                       s/HI04R.htm
      A statewide exit fee policy is in place          Hawaii does not have a statewide policy on
                                                    N exit fees. DG units do not have to pay exit
7.3
                                                       fees.

      A statewide standby rate policy is in place       The Hawaii PUC issued an order in 2008
                                                        making standby rates optional for 10 years
                                                        for consumers who install CHP or other
                                                        forms of power generation on their own
                                                        properties (applies to customers of the
                                                        following utilities: Hawaiian Electric
                                                        Company, Maui Electric Company, and
                                                    Y   Hawaii Electric Light Company). DG
                                                        customers have the option to take standby
                                                        service or remain on the otherwise
                                                        applicable rate schedule. See Order No.
                                                        2006-0497, issued on May 15, 2008, for
                                                        more information.
                                                        http://hawaii.gov/dcca/areas/dca/dno/dno200
                                                        8
                                                         Hawaiian Electric Company (HECO) -
                                                         Schedule SS - Customers may choose to
                                                         receive standby service under the provisions
                                                         of their current commercial rate, or the
                                                         standby rate. A specific value of standby
                                                         capacity is contracted for with the utility.
7.4                                                   U- Standby service is provided for fairly high
                                                         demand and energy charges. The billing
                                                         demand is based on the maximum demand
                                                         of the month with a partial ratchet covering
                                                         the previous 11 months. Rate available at:
                                                         http://www.heco.com/vcmcontent/FileScan/P
                                                         DF/EnergyServices/Tarrifs/HECO/HECORat
                                                         esSchSS.pdf

                                                         Hawaii Electric Light Company (HELCO) -
                                                         Schedule SS - Customers may choose to
                                                         receive standby service under the provisions
                                                         of their current commercial rate, or the
                                                         standby rate. A specific value of standby
                                                         capacity is contracted for with the utility.
                                                      U- Standby service is provided for fairly high
                                                         demand and energy charges. The billing
                                                         demand is based on the maximum demand
                                                         of the month with a partial ratchet covering
                                                         the previous 11 months. Rate available at:
                                                         http://www.heco.com/vcmcontent/FileScan/P
                                                         DF/EnergyServices/Tarrifs/HELCO/HELCOR
                                                         atesSchSS.pdf
      As part of resource planning process, CHP
      is reviewed and incorporated where effective        As part of the Hawaii Clean Energy Initiative
                                                          (HCEI), the state has decided to replace its
                                                          current IRP process with a new Clean
                                                      N
                                                          Energy Scenario Planning (CESP) Process.
                                                          The PUC closed existing IRP dockets in late
                                                          2008, and is working on developing the new
                                                          CESP approach.
                                                          http://www.renewablehawaii.org/portal/site/h
                                                          eco/menuitem.508576f78baa14340b4c0610
7.5                                                       c510b1ca/?vgnextoid=63ada76154960210V
                                                          gnVCM1000005c011bacRCRD&vgnextfmt=
                                                          default&cpsextcurrchannel=1

                                                            Hawaiian Electric Company released their
                                                      U+ most recent IRP in 2007. This IRP lists DG
                                                            and CHP as future supply side resource
                                                            options and sets a CHP MW targets.
                                                     http://www.heco.com/vcmcontent/HELCO/Renewa
        Natural Gas
urce.
effective energy efficiency as a resource
October 2008 agreement states that stakeholders
will design and deliver program specifically
targeted to benefit low income electric and gas
users.
             N




deliver energy efficiency where cost-effective.
cost-effective energy efficiency and modify ratemaking
                                                                              IDAHO
                                                                                Electric
Recommendation 1: Recognize energy efficiency as a high priority energy resource.
         EE is established as a high priority resource,         Order 22299 from Case # U-1500-165,
         equivalent or superior to supply resources             issued in 1989, establishes that conservation
                                                                resources should be given consideration
                                                                equivalent to generation resources, and that
                                                                utilities should procure all cost-effective
                                                          Y     efficiency. The 2007 Idaho Energy Plan,
                                                                prepared by the Idaho Legislative Council
  1.1                                                           Interim Committee on Energy, Environment
                                                                and Technology, recommended that when
                                                                acquiring resources, Idaho should give
                                                                priority to conservation, EE, and DR first.
                                                                Order 22299 can be looked up from
                                                                http://www.puc.state.id.us/search/orders/dts
                                                          R     earch.html; Idaho Energy Plan:
                                                                http://www.puc.state.id.us/hot/2007%20Ener
                                                                gy%20Plan.pdf
         1.2.1 EE is integrated into an active IRP,             IRP was established in Order 25260 from
         portfolio management, or other planning          Y     Case #GNR-E-93-3, issued in 1993.
         process
                                                                Order 25260 can be looked up from
                                                          R     http://www.puc.state.id.us/search/orders/dts
  1.2                                                           earch.html
         1.2.2 Efficiency is procured as a resource
         for default service/standard offer customers     N/A


         EE is an alternative to transmission based
         on a long-term transparent IRP or
  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             No specific cost effectiveness test is
      evaluate EE programs                                 required, although in practice utilities may
                                                           use a variety of tests. Order 22299, issued in
                                                           1989, rejected exclusive use of the "no
                                                           losers" test. The 2007 Idaho Energy Plan,
                                                       N   prepared by the Idaho Legislative Council
                                                           Interim Committee on Energy, Environment
2.2
                                                           and Technology, recommendeds that the
                                                           TRC test is the appropriate test of the cost-
                                                           effectiveness of DSM measures.
                                                           Order 22299 can be looked up from
                                                       R   http://www.puc.state.id.us/search/orders/dts
                                                           earch.html; Idaho Energy Plan:
      2.3.1 Potential for cost-effective EE has            http://www.puc.state.id.us/hot/2007%20Ener
                                                           Order 22299 from Case # U-1500-165,
      been established through a potential study           issued in 1989, required utilities to submit
                                                       Y   annual Conservation Analysis Plans, which
2.3                                                        would assess potential within each utility's
                                                           own jurisdiction.

      2.3.2 Established EE programs reach all              Each utility has a program for all classes.
                                                       Y
      customer classes

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

      2.5.1 Quantitative MW and MWh savings                Specific numeric goals are not established,
      goals have been established and are                  but the Commission expects utilities to
      producing incremental investment.                    procure all cost-effective efficiency. The
                                                           2007 Idaho Energy Plan, prepared by the
                                                           Idaho Legislative Council Interim Committee
                                                       N
                                                           on Energy, Environment and Technology,
                                                           recommends the PUC establish targets for
                                                           conservation achievement for IOUs based
                                                           on estimates of available cost-effective EE.

                                                           Idaho Energy Plan:
                                                           http://www.puc.state.id.us/hot/2007%20Ener
                                                           gy%20Plan.pdf
      2.5.2 Goals are established: (a) connection
2.5   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

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


      2.5.4 Expected Capacity Savings 2006
      (Annual MW)
      2.5.5 Energy Savings Goals 2006 (Annual
      MWh or MTherms)

      2.6.1 A robust M&V process has been                    Programs are reviewed periodically by
      established                                            Commission staff, but there is no formal
                                                        N    M&V process. Specific M&V criteria are
                                                             expected to be developed in Case No. IPC-
                                                             E-09-09.

      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                   The ID PUC requires utilities to file and
      established                                            implement DSM plans. Programs are
                                                        Y    funded by utilities, who recover costs
                                                             through riders, rate cases, rate design, etc.

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                   Order 25260 from Case #GNR-E-93-3,
                                                             issued in 1993, establishes that IRPs should
                                                        Y
2.8                                                          be updated at least every 2 years.


      2.9.1 Building Energy Codes for residential           2006 IECC standards mandatory statewide.
      buildings are in place and regularly updated      Y/Y Codes are reviewed every three years, and
                                                            the last code change was in 2007.
                                                             http://bcap-
                                                             energy.org/state_status.php?state_ab=ID
2.9
  2.9
        2.9.2 Building Energy Codes for                     2006 IECC standards mandatory statewide.
        commercial buildings are in place and           Y/Y Codes are reviewed every three years, and
        regularly updated                                   the last code change was in 2007.
                                                             http://bcap-
                                                             energy.org/state_status.php?state_ab=ID
        Appliance and Equipment Efficiency
        Standards are in place and regularly             N
 2.10   updated

        Energy efficiency is a high priority in state        Executive Order 2005-12, signed July 2005,
        buildings and state funded buildings as              requires state agencies to implement a
        evidenced in capital planning and enabling           series of energy conservation measures,
        performance contracts                                where feasible. The measures include
                                                             adjusting settings for thermostats, shutting
                                                             off lights and computers, and evaluating
                                                             HVAC machinery for efficiency. The 2007
                                                             xxxxxx had a number of recommendations
                                                             related to EE in state govt. In 2008,
                                                             legislation passed that requires major state
                                                             facility projects (to the extent feasible,
                                                         Y   practical, and fiscally prudent) to be
 2.11                                                        designed, constructed, and certified to meet
                                                             a target of at least 10% to 30% better
                                                             efficiency than a comparable building on the
                                                             same site built to the requirements of the
                                                             then current building codes. Major facility
                                                             projects are defined as new construction
                                                             larger than 5,000 square feet, and
                                                             renovations greater than 5,000 square feet
                                                             with a project cost greater than 50% of the
                                                             assessed value of the existing building.

                                                        EO, Executive Order:
                                                         S http://gov.idaho.gov/mediacenter/execorders
Recommendation 3: Miscellaneous Policies                    /eo05/eo_2005-12.htm; HB 422, Idaho Code
        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
                                                         Y
  3.1   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              Idaho Power Company, Intermountain Gas,
         program? (who is sponsor)                                Kootenai Electric Co-Op
         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                       The three major utilities have tariff riders.
                                                                  Additional funding may come from rate
                                                            Y     cases or other sources such as BPA.


  4.1    4.1.2 Recovery occurs via: (a) rider; (b)
         regular rate case; or (c) system benefits          a,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              Idaho Power: 2.5% (Case IPC-E-08-03;
         used for energy efficiency [no unit = %; m/k             Decision on 5/30/08). Rocky Mountain
         = mils/kWh]                                              Power: 3.72% (Case PAC-E-08-01; Decision
  4.3                                                             on 4/29/08). Avista: 1.9%. Amounts are
                                                                  subject to change



         Funds from carbon trading program support
  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               SUMMARY: Idaho Power was granted a
      addressed and disincentives are removed             three-year pilot fixed-cost adjustment
                                                          decoupling mechanism on 3/12/07 for
                                                          residential and small business customers.
                                                          The fixed-cost adjustment allows annual true-
                                                          up, concurrent with existing power cost
                                                    Y     adjustment, of collected fixed costs and
                                                          amount authorized in most recent rate case.
                                                          The Decision requires the utility to expand
                                                          DSM programs and support more EE
                                                          building energy codes. Lost revenue
                                                          recovery may also be available on a case-by-
                                                          case basis.
                                                          Idaho Power, Order No. 30267, Case No.
                                                          IPC-E-04- l5, pp. 13-14:
5.1                                                 R     http://www.puc.idaho.gov/internet/cases/elec
                                                          /IPC/IPCE0415/ordnotc/20070312FINAL_O
                                                          RDER_NO_30267.PDF.
                                                          Order 25261 in Case No. GNR-E-93-4
                                                          establishes that expenditures on
                                                          conservation and efficiency should be
                                                          treated at least as profitably as investments
                                                          in supply side resources, and allows lost
                                                    R
                                                          revenue recovery on a case-by-case basis.
                                                          Order 25261 may be looked up from
                                                          http://www.puc.state.id.us/search/orders/dts
                                                          earch.html

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

      5.2.1 Utility/shareholder EE incentives are      As of the end of 2008, Idaho Power had a
      provided                                         three-year pilot incentive for its Energy Star
                                                       New homes program. The utility earns an
                                                       incentive based on the penetration of Energy
                                                       Star new homes in the marketplace. The
                                                       2007 Idaho Energy Plan, prepared by the
                                                    Y-
                                                       Idaho Legislative Council Interim Committee
                                                       on Energy, Environment and Technology,
                                                       recommends the PUC should establish
                                                       incentives for IOUs that achieve
5.2                                                    conservation targets established by the
                                                       PUC.
                                                       http://www.puc.idaho.gov/internet/cases/elec
                                                       /IPC/IPCE0632/ordnotc/20070312FINAL_O
                                                       RDER_NO_30268.PDF; Idaho Energy Plan:
                                                    R
                                                       http://www.puc.state.id.us/hot/2007%20Ener
                                                       gy%20Plan.pdf

      5.2.2 Incentives exceed amount of lost
      revenues
         5.3.1 Impact on EE is a consideration when           The 2007 Idaho Energy Plan, prepared by
         designing retail rates                               the Idaho Legislative Council Interim
                                                              Committee on Energy, Environment and
                                                         N
                                                              Technology, recommends the PUC and
                                                              utilities adopt rate designs that encourage
                                                              more effeicient use of energy.
   5.3                                                        Idaho Energy Plan:
                                                              http://www.puc.state.id.us/hot/2007%20Ener
                                                              gy%20Plan.pdf
         5.3.2 Declining block rates and fixed
         variable rate designs have been eliminated      Y


         5.4.1 Time sensitive rates in place                  Pacificorp has had TOU rates in place since
                                                         Y
                                                              the 1980s for all customer classes.

         5.4.2 Usage sensitive rates in place

         5.4.3 AMI deployment planned                       Smart metering programs are implemented
                                                            for all three utilities. In July 2007, the
                                                            Commission approved a two-year pilot
                                                         Y/
                                                            program for Avista. In 2008, The
  5.4                                                    C
                                                            Commission approved for an Idaho Power
                                                            proposal to install smart meters for every
                                                            customer over three years.
                                                            Idaho Power Case IPC-E-08-16:
                                                         R http://www.puc.state.id.us/search/orders/dts
                                                            earch.html
         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

         Investment Tax Credit for energy efficient
    -    investments

         State supported low cost financing for         x,y   Low-interest loans are available to all sectors
         energy efficient investments: buildings (x),         for a wide range of conservation
    -    equipment (y)                                        improvement projects.
                                                              http://www.idwr.idaho.gov/energy/loans/default.htm
Distributed Generation Policies
      A statewide interconnection policy is in place        Idaho does not have statewide
                                                            interconnection standards for DG. An order
                                                            issued in January 2007 by the ID PUC ruled
                                                            that the National Association of Regulatory
                                                            Utility Commissioners (NARUC)
                                                            interconnection model should be used as a
                                                            guideline for interconnection agreements.
                                                       N
                                                            However, later the Idaho Public Utilities
                                                            Commission (PUC) rejected the federal
                                                            interconnection and net metering standards
                                                            in early 2007, pursuant to EPAct 2005,
                                                            stating that the utility tariffs are adequate
                                                            (case # GNR-E-06-02).

                                                          Avista Corp, IOU - has interconnection
                                                          standards for systems that either are net-
                                                          metered or are not. For net-metered
                                                          systems the capacity limit is 25 kW and the
                                                          limit is 10 MW for PURPA qualifying facilities
                                                          that are not net-metered. Avista's
                                                          interconnection guidelines for net-metered
                                                          systems up to 25 kW require an external
                                                          disconnect and all equipment must meet
                                                          IEEE, UL, NESC, and NEC requirements.
7.1                                                    U-
                                                          Avista has separate interconnection rules for
                                                          DG systems up to 300 kW in capacity. There
                                                          is a $100 application fee for these systems
                                                          and they have to follow the same general
                                                          guidelines as smaller net metered systems,
                                                          such as having an external disconnect and
                                                          applicable national standards. The Utility
                                                          allows for DG systems up to 10 MW with QF
                                                          status to connect.

                                                            Idaho Power Co, IOU - has an established
                                                            interconnection procedure and two levels of
                                                            interconnection - one for systems smaller
                                                            than 20 MW and the other for systems larger
                                                            than this threshold. There are standard
                                                            interconnection application and agreement
                                                            forms. For systems larger than 20 MW
                                                       U-
                                                            $10,000 must be deposited with the utility
                                                            and may be used for interconnection studies.
                                                            There are set interconnection timeframes,
                                                            but the entire procedure is quite lengthy.
                                                            Insurance and technical requirements are
                                                            not discussed in detail.
      A statewide net metering policy is in place      Idaho does not have a statewide net
                                                       metering policy, however each of the state's
                                                    N three IOUs - Avista Utilities, Idaho Power,
                                                       and Rocky Mountain Power - has developed
                                                       a net-metering tariff.
                                                       Avista Corp offers net metering to customers
                                                       that generate electricity using solar, wind,
                                                       hydropower, biomass or fuel cells.
                                                       Commercial, residential, and agricultural
                                                       systems are eligible, but residential systems
                                                       are limited to 25 kW in capacity. Aggregate
                                                       net-metered capacity is limited to 0.1% of
                                                       the utility's retail peak generation in 2000.
                                                       Also, any single customer cannot generate
                                                    U- more than 20% of the aggregate capacity of
                                                       all net-metered systems. Net excess
                                                       generation is credited to the customer's next
                                                       bill at the utility's retail rate and at the end of
                                                       each calendar year any remaining NEG is
                                                       granted to the utility. Avista's net metering
                                                       tariff can be found here,
                                                       http://www.avistautilities.com/
7.2
                                                       assets/tariffs/id/ID_063.pdf.

                                                       Idaho Power Co, IOU - has the same
                                                       general net metering requirements as Avista
                                                       Utilities with a couple of exceptions related to
                                                       capacity limits and treatment of NEG. Idaho
                                                       Power limits large commercial and
                                                       agricultural customers to 100 kW in capacity.
                                                       Residential and small commercial customers
                                                       are limited to 25 kW. NEG for residential and
                                                       small commercial customers is credited at
                                                       the utility's retail rate and carried forward to
                                                    U-
                                                       the next month. For large commercial and
                                                       agricultural customers, NEG is credited at
                                                       85% of the utility's avoided cost-rate and
                                                       carried forward to the next month.
                                                       Information on Idaho Power's net metering
                                                       standards can be found here,
                                                       http://www.idahopower.com/
                                                       aboutus/regulatoryinfo/tariffPdf.asp?id=198&
                                                       .pdf.

      A statewide exit fee policy is in place
                                                    N   Idaho has no statewide policy on exit fees.
7.3
                                                        DG units would not be charged such a fee.

      A statewide standby rate policy is in place       Idaho does not have a statewide policy on
                                                    N
                                                        standby rates
                                                          Avista Corp - there is no standard standby
                                                          rate. Customers seeking standby service
                                                          would need to contract with the utility to be
                                                          charged under a regular tariff. Typical rates
                                                      U   have moderate demand and energy
                                                          charges. Demand charges are based on the
                                                          maximum 15 minute demand of the month.
                                                          Rates available at:
                                                          http://www.avistautilities.com/services/energ
                                                          ypricing/tariffs/id/elect/Pages/default.aspx
7.4
                                                          Idaho Power Co - Schedule 45 - standby
                                                          service is provided to customers that
                                                          contract with the utility for a specific amount
                                                          of standby capacity. A moderate demand
                                                          based reservation charge is assessed every
                                                          month. Actual usage is charged through
                                                    U
                                                          Schedule 19 along with a standby demand
                                                          charge based on the maximum 15 minute
                                                          demand of the month. There is a high
                                                          penalty for exceeding the contract demand.
                                                          Rate available at:
                                                          http://www.idahopower.com/aboutus/regulat
                                                          oryinfo/tariffs.asp?state=id
      As part of resource planning process, CHP           IRP was established in Order 25260 from
      is reviewed and incorporated where effective        Case #GNR-E-93-3, issued in 1993. The ID
                                                    N rules do not mention CHP. The Idaho PUC
                                                          prepares a statewide energy plan. Biennial
                                                          filing of IRPs is required.
                                                   http://www.puc.state.id.us/search/orders/dtsearch.

7.5                                                        Avista Corp filed its most recent IRP in ID
                                                     U+ and WA on 8/31/2007. Avista modeled the
                                                           costs of implementing small CHP projects
                                                           and list CHP as a viable resource option.
                                                     http://www.avistautilities.com/inside/resources/irp/
                                                           Idaho Power Co's most recent IRP update
                                                     U+
                                                           was issued in 2008, CHP is considered.
                                       http://www.idahopower.com/AboutUs/PlanningForFuture/irp/2006/default.cfm
                                  Natural Gas
urce.




                 Gas utilities participate in resource planning, but it
             N   does not always result in the pursuit of meaningful
                 DSM.




effective energy efficiency as a resource
N
Y
deliver energy efficiency where cost-effective.
                  Avista has a gas EE cost recovery rider.
                  Intermountain Gas, the other natural gas utility in
             Y-   Idaho, does not.




             a




                  Avista gas 0.5%




 cost-effective energy efficiency and modify ratemaking
y/loans/default.htm
                                                                                   MONTANA
                                                                                Electric
Recommendation 1: Recognize energy efficiency as a high priority energy resource.
         EE is established as a high priority resource,        Montana's IRP rules state an objective of
         equivalent or superior to supply resources            acquiring all cost-effective energy efficiency.
                                                               The commission considers EE equivalent to
                                                           Y   supply side resources in assembling the
                                                               least cost, least risk portfolio. Also see 2.1.
  1.1
                                                               Administrative Rules of Montana 38.5.2001
                                                               et seq. See
                                                           A
                                                               http://www.mtrules.org/gateway/ruleno.asp?
                                                               RN=38%2E5%2E2001
         1.2.1 EE is integrated into an active IRP,            SUMMARY: Montana's two IOUs are
         portfolio management, or other planning               regulated differently. A traditionally regulated
         process                                           Y   IOU performs IRP. A restructured IOU
                                                               conducts portfolio management.
                                                               IRP PROCESS: § 69-3-1201-1206, Montana
                                                               Code Annotated requires IRP. See
                                                               http://data.opi.state.mt.us/bills/mca_toc/69_3
                                                               _12.htm. IRP rules require the integration of
                                                          S, R supply and demand side resources into a
                                                               least cost plan. Rules are available in
                                                               Montana Administrative Code 38.5.2001 et
  1.2                                                          seq. See http://arm.sos.state.mt.us/38/38-
                                                               698.htm
                                                               PORTFOLIO MANAGEMENT FOR
                                                               DEFAULT SUPPLY: See entry in Section
                                                               1.2.2.
         1.2.2 Efficiency is procured as a resource            MCA 69-8-419 requires the restructured
         for default service/standard offer customers          utility to conduct portfolio management for
                                                           Y default supply, including the consideration of
                                                               a full range of demand-side options.
                                                               See
                                                           S   http://data.opi.state.mt.us/bills/mca/69/8/69-8-
                                                               419.htm

                                                               Administrative rules regarding the treatment
                                                           R   of efficiency in portfolio management is
                                                               available at MAC 38.5.8218. See
                                                               http://161.7.8.61/38/38-6175.htm
         EE is an alternative to transmission based            Transmission constraints are handled in the
         on a long-term transparent IRP or                     context of the IRP. Targeted DSM has been
                                                           Y
  1.3    transmission system plan                              considered as an alternative to transmission
                                                               lines in the past.

         1.4.1 EE is a biddable commodity                     All-source RFPs are issued, but as a
                                                           Y- practical matter, utilities have not received
                                                              DSM bids in these solicitations.
  1.4
  1.4   1.4.2 Bids occur in the following markets:
        (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                  Montana's IRP rules state an objective of
                                                             acquiring all cost-effective energy efficiency.
                                                             The commission considers EE equivalent to
                                                             supply side resources in assembling the
                                                             least cost, least risk portfolio. Statute
                                                             requires a Universal System Benefit
                                                             Program to ensure funding for energy
                                                         Y conservation, renewables, and low-income
                                                             energy assistance. Utilities are required to
                                                             contribute 2.4% of their annual retail sales
  2.1                                                        revenue from 1995. The Montana Climate
                                                             Change Action Plan, released in 11/07,
                                                             recommended that utilities implement a plan
                                                             to obtain 100% of the achievable cost-
                                                             effective EE by 2025.
                                                             MT Code Annotated 69-8-402:
                                                             http://data.opi.state.mt.us/bills/mca/69/8/69-8-
                                                             402.htm; Climate Change Action Plan:
                                                        S, A
                                                             http://www.mtclimatechange.us/ewebeditpro/
                                                             items/O127F14041.pdf

        The TRC or Societal Cost Test is used to            The Societal Cost Test and the TRC test are
        evaluate EE programs                                used for the IRP utility. Neither test is
                                                            required for the "portfolio management"
                                                         Y-
  2.2                                                       utility. MAC 38.5.8218 specifies that the RIM
                                                            [non-participant] test should not be used in
                                                            portfolio management.
                                                            See http://161.7.8.61/38/38-6175.htm

        2.3.1 Potential for cost-effective EE has           The "portfolio management" utility did a
        been established through a potential study          potential study in 2003 as part of its default
                                                         Y- supply plan. An update of the potential study
                                                            is expected in Sprint 2009.
  2.3                                                        Information about the 2003 study is available
                                                             at
                                                             http://www.montanaenergyforum.com/pdf/20
                                                             05_Plan/2005_v2_CH2.pdf
        2.3.2 Established EE programs reach all              Electric EE programs reach all customer
                                                         Y
        customer classes                                     classes, including low-income customers.

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

      2.5.1 Quantitative MW and MWh savings               The "portfolio management utility" has
      goals have been established and are              Y- established a goal of 5 aMWH/year in its
      producing incremental investment.                   2005 Default Supply Plan.

                                                           http://www.montanaenergyforum.com/pdf/20
                                                           05_Plan/2005_v2_CH2.pdf
      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        a
      part of program approval and budget-setting
      process; (d) other

2.5   2.5.3 Energy Efficiency can be used to fulfill       EE cannot be used to fulfill Montana's
      requirements of an RPS or similar standard           current RPS requirements. The Montana
                                                           Climate Change Action Plan, released in
                                                       N
                                                           11/07, recommended that utilities implement
                                                           a plan to obtain 100% of the achievable cost-
                                                           effective EE by 2025.

      2.5.4 Expected Capacity Savings 2006
      (Annual MW)

      2.5.5 Energy Savings Goals 2006 (Annual
      MWh or MTherms)

      2.6.1 A robust M&V process has been                 NorthWestern Energy, the "portfolio
      established                                         management" utility, submitted a
                                                          comprehensive evaluation of its programs to
                                                       Y- the Commission on 8/16/07 as part of the
                                                          Commission approval of its lost revenue
                                                          recovery mechanism.

                                                           http://www.psc.state.mt.us/eDocs/eDocume
                                                           nts/pdfFiles/D2004-6-90_6574e.pdf; Docket
                                                           D2007.5.46 (evaluation):
                                                           http://www.psc.mt.gov/eDocs/eDocuments/g
                                                           etDocumentsInfo.asp?docketId=8516&do=fa
                                                           lse
      2.6.1.1   M&V is adequately funded


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
      defined schedule

      2.6.1.4 M&V is conducted by an
                                                       Y
      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                    The Universal System Benefits Program
      established                                             requires all electric utilities, including coops,
                                                              to contribute annually 2.4% of their 1995
                                                              revenues to the program, which supports
                                                              cost-effective energy conservation,
                                                              weatherization renewable projects, R&D
                                                              related to EE and renewables, market
                                                              transformation, and low-income energy
                                                        Y     assistance. Utilities may spend the funds on
                                                              internal programs or contract to fund
                                                              programs externally or turn the funds over to
2.7                                                           state agencies to administer. Large
                                                              electricity users may fund their own
                                                              programs instead of contributing to the
                                                              program. The Commission declined to
                                                              require NorthWestern Energy to use a third-
                                                              party administrator to conduct its DSM
                                                              MT Code in 2008.
                                                              programs Annotated 69-8-402:
                                                        S
                                                              http://data.opi.state.mt.us/bills/mca/69/8/69-8-
      2.7.2 Delivery is via: (a) utility                      Both options are D2007.5.46:
                                                              402.htm; Docket used in practice.
      administration; (b) third-party administration;   a,c
      or (c) government agency

      Resource plans are regularly updated                    IRPs are required to be submitted every two
                                                        Y     years. See 1.2.1

2.8                                                         Administrative Rules of Montana 38.5.2001
                                                            et seq. See
                                                         A
                                                            http://www.mtrules.org/gateway/ruleno.asp?
                                                            RN=38%2E5%2E2001
      2.9.1 Building Energy Codes for residential           2003 IECC mandatory statewide. Code is
      buildings are in place and regularly updated          reviewed every three years and was last
                                                            updated in 2004. The Montana Climate
                                                            Change Action Plan, released in 2007,
                                                        Y/Y recommends Montana increase building
                                                            codes so that they are at least 15% higher
                                                            by 2010 than current codes, and 30% higher
                                                            by 2020. "Beyond code" building design
                                                            incentives are also recommended.

                                                              http://bcap-
                                                              energy.org/state_status.php?state_ab=MT;
                                                              Climate Change Action Plan:
2.9
        2.9.2 Building Energy Codes for                     2003 IECC mandatory statewide. Code is
  2.9
        commercial buildings are in place and               reviewed every three years and was last
        regularly updated                                   updated in 2004. The Montana Climate
                                                            Change Action Plan, released in 2007,
                                                        Y/Y recommends Montana increase building
                                                            codes so that they are at least 15% higher
                                                            by 2010 than current codes, and 30% higher
                                                            by 2020. "Beyond code" building design
                                                            incentives are also recommended.
                                                            http://bcap-
                                                            energy.org/state_status.php?state_ab=MT;
                                                            Climate Change Action Plan:
                                                            http://www.mtclimatechange.us/ewebeditpro/
                                                            items/O127F14041.pdf
        Appliance and Equipment Efficiency                  The Montana Climate Change Action Plan,
        Standards are in place and regularly                resleased in 2007, recommends Montana
                                                        N
        updated                                             set higher-than-federal EE appliance
 2.10                                                       standards where technological advances
                                                            allow. Change Action Plan:
                                                            Climate
                                                            http://www.mtclimatechange.us/ewebeditpro/
                                                            items/O127F14041.pdf
        Energy efficiency is a high priority in state
        buildings and state funded buildings as
                                                        N
        evidenced in capital planning and enabling
 2.11   performance contracts


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          NorthWestern Energy has an on-going
        or regional collaborative, to pursue EE as a        advisory committee related to all aspects of
  3.1                                                   Y
        high-priority resource. (See Guide Tab for          resource planning and acquisition, including
        Y/N criteria.)                                      EE.
        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         Montana-Dakota Utilities 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                       Statute requires that the Commission "shall
                                                                  estalish an electricity cost recovery
                                                                  mechanism that allows a public utility to fully
                                                                  recover prudently incurred elctricity supply
                                                                  costs." Montana's PBF was established in
                                                                  1998 and has been extended twice by the
                                                            Y     Legislature. Electric utilities, including
                                                                  coops, are required to contribute annually
                                                                  2.4% of their 1995 revenues to the program.
                                                                  Currently, the program runs through 2009.
                                                                  Some additional DSM costs are recovered in
                                                                  base rates.
  4.1
                                                                  MCA 69-8-210 (cost recovery):
                                                                  http://data.opi.state.mt.us/bills/mca/69/8/69-8-
                                                                  210.htm; Montana Code Annotated 69.8.402
                                                            S
                                                                  (PBF):
                                                                  http://data.opi.state.mt.us/bills/mca/69/8/69-8-
                                                                  402.htm
         4.1.2 Recovery occurs via: (a) rider; (b)
         regular rate case; or (c) system benefits          b,c
         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                 The "portfolio management" utility,
         addressed and disincentives are removed               NorthWestern Energy, was granted lost
                                                               revenue recovery mechanisms in 2004 and
                                                               in 2008. In the 2008 Order, the Commission
                                                               found that it had inadequate information on
                                                               the merits of decoupling, and thus should
                                                            Y- continue its lost revenue recovery practice,
                                                               but required the utility to continue
                                                               considering the throughput incentive with its
                                                               advisors. A 2008 Commission Order
                                                               required Montana-Dakota Utilities to
  5.1                                                          consider decoupling in its 2009 cost-of-
                                                               service / rate design filing.
5.1

                                                        Docket D2004.6.90 (2004):
                                                        http://www.psc.state.mt.us/eDocs/eDocume
                                                        nts/pdfFiles/D2004-6-90_6574e.pdf; Docket
                                                        D2007.5.46 (2008):
                                                        http://www.psc.mt.gov/eDocs/eDocuments/p
                                                        dfFiles/D2007-5-46_6836c.pdf
      5.1.2 Method used is: (a) decoupling; (b)
      lost revenue recovery; or (c) non-utility     b
      implementaion of EE

      5.2.1 Utility/shareholder EE incentives are       Statute allows for a bonus 2% return on
      provided                                          DSM investments, but this hasn't been used.
                                                        DSM expenses are generally expenses
                                                        rather than capitalized. Montana rules allow
                                                    N
                                                        the Commission to reward the default
                                                        supplier for superior performance, which can
5.2                                                     include demand and supply side
                                                        procurement.
                                                        Montana Administrative Rules 38.5.8227.
      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             The two largest utilities have flat rates for
      variable rate designs have been eliminated        residential customers.


      5.4.1 Time sensitive rates in place               In 2006, the Commission deferred a decision
                                                        to adopt the PURPA Standard 14, saying it
                                                        would consider whether to adopt the
                                                        standard for each utility in the next rate
                                                        cases. A 2008 Commission Order required
                                                    N
                                                        Montana-Dakota Utilities to study time-
                                                        differentiated rates, and consider smart
                                                        metering, inverted block rates in its 2009
                                                        cost-of-service / rate design filing.

                                                        http://www.psc.mt.gov/eDocs/eDocuments/p
                                                        dfFiles/D2007-7-79_6846f.pdf
5.4   5.4.2 Usage sensitive rates in place

      5.4.3 AMI deployment planned                      A 2008 Commission Order required
                                                        Montana-Dakota Utilities to study time-
                                                    N   differentiated rates, and consider smart
                                                        metering, inverted block rates in its 2009
                                                        cost-of-service / rate design filing.
                                                        http://www.psc.mt.gov/eDocs/eDocuments/p
                                                        dfFiles/D2007-7-79_6846f.pdf
      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

         Investment Tax Credit for energy efficient           Tax incentives are available to customers in
         investments                                      Y   certain sectors for energy efficiency
                                                              improvements.
    -                                                         http://mt.gov/revenue/forindividuals/individual
                                                              income/incentivesiit.asp#conservation
                                                              http://mt.gov/revenue/forbusinesses/corporat
                                                              ion/corptaxincentives.asp
         State supported low cost financing for
         energy efficient investments: buildings (x),
    -    equipment (y)

Distributed Generation Policies
         A statewide interconnection policy is in place      Montana has interconnection standards only
                                                             for net metered systems, and only for
                                                             systems generating electricity from solar
                                                             photovoltaics, wind, or hydroelectric. System
                                                             capacity is limited to 50 kW; there is not limit
                                                             on overall enrollment. External disconnects
                                                             are not specified, however Northwestern
                                                             Energy requires it. All systems must comply
                                                          Y- w/ with all national safety, equipment and
                                                             power-quality standards as set by the
                                                             National Electrical Code (NEC), Institute of
                                                             Electrical and Electronic Engineers (IEEE),
                                                             National Electrical Safety Code (NESC) and
                                                             Underwriters Laboratories (UL). Additional
                                                             insurance is not addressed.

   7.1

                                                             Northwestern Energy LLC has
                                                             interconnection standards and an
                                                             interconnection agreement for net metered
                                                             systems.Customers must follow all national
                                                             safety standards and must have a manual,
                                                             lockable, external disconnect. Customers
                                                             are not required to purchase additional
                                                          U- liability insurance, but customers are
                                                             encouraged to verify that they have enough
                                                             coverage. The standard interconnection
                                                             agreement can be accessed from here,
                                                             http://www.northwesternenergy.com/docume
                                                             nts/E+Programs/E+NetMeteringAgreement.p
                                                             df
      A statewide net metering policy is in place      Montana has a net metering law, established
                                                       with Mont. Code § 69-8-604. Customers of
                                                       IOUs are allowed to net meter systems that
                                                       generate electricity from the following
                                                       renewables - solar, wind, or hydropower
                                                       systems up to 50 kW. All customer classes
                                                       are eligible and there is no limit on overall
                                                    Y-
                                                       enrollment or statewide installed capacity.
                                                       Systems must comply with national
7.2
                                                       standards - IEEE, UL, and NEC standards.
                                                       NEG is credited to the customers next
                                                       monthly bill. At the beginning of each
                                                       calendar year any NEG is granted to the
                                                       utility.
                                                       Mont. Code § 69-8-604 can be accessed
                                                       from here,
                                                    S
                                                       http://www.dsireusa.org/documents/Incentive
                                                       s/MT07R.htm
      A statewide exit fee policy is in place          Montana does not have a statewide exit fee
                                                    N policy. DG unit owners/operators are not
7.3
                                                       charged exit fees.

      A statewide standby rate policy is in place       Montana does not have a statewide policy
                                                    N
                                                        on standby rates

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

                                                        NorthWestern Energy LLC - there is no
                                                        standard standby rate. Customers seeking
                                                        standby service would need to contract with
                                                        the utility to be charged under a regular tariff.
                                                        Typical rates have moderate demand and
                                                    U
                                                        energy charges. Demand charges are
                                                        based on the maximum 15 minute demand
                                                        of the month. Rate available at:
                                                        http://www.northwesternenergy.com/display.
                                                        aspx?Page=Montana_Rate_Schedules&Ite
                                                        m=117
      As part of resource planning process, CHP          Montana’s IRP process is outlined in the
      is reviewed and incorporated where effective       Montana Administrative Rules 38.5.2001-
                                                         2012. However, during the restructuring
                                                         period Montana’s main electric utility
                                                         divested itself of its generation resources
                                                         and the PSC adopted another set of
                                                     N
                                                         Administrative rules to govern the
                                                         restructured utility. Those rules were
                                                         modeled after the PSC’s IRP rules and are
                                                         outlined in the Administrative Rules
                                                         38.5.8201-8226.
7.5
                                                         http://www.mtrules.org/gateway/ruleno.asp?
                                                         RN=38.5.2002 and
                                                         http://www.mtrules.org/gateway/RuleNo.asp
                                                         ?RN=38%2E5%2E8226
                                                         MDU Resources Group Inc considers
                                                   U+
                                                         resources such as CHP in their IRP.
                                                  http://www.mduenergycenter.com/forms/2007Main
                                                         Northwestern Energy LLC considers CHP
                                                   U+
                                                         technologies in its IRP.
                               http://www.northwesternenergy.com/display.aspx?Page=Default_Supply_Electric&Item=1
NA
                                     Natural Gas
urce.
            Montana's IRP rules state an objective of acquiring all cost-
            effective energy efficiency.

        Y



            Administrative Rules of Montana 38.5.2001. See
            http://arm.sos.state.mt.us/38/38-697.htm
        A


            Natural gas utilities are required to prepare conservation plans.
            See MAC 38.6.201. NorthWestern Energy completed its natural
        Y   gas biennial procurement plan in 12/08.


            http://arm.sos.mt.gov/38/38-7021.htm; NorthWestern plan:
            http://www.northwesternenergy.com/display.aspx?Page=Default_S
            upply_Gas

        S
effective energy efficiency as a resource
                 Montana's IRP rules state an objective of acquiring all cost-
                 effective energy efficiency. The Commission considers EE
                 equivalent to supply side resources in assembling the least cost,
                 least risk portfolio. Statute requires the Commission to establish a
                 natural gas Universal System Benefit Program, and starting 1/1/07,
                 there is a minimum annual funding requirement for low-income
                 weatherization and low-income energy bill assistance at 0.42% of a
             Y   natural gas utility's annual revenue. The Montana Climate Change
                 Action Plan, released in 11/07, recommended that utilities
                 implement a plan to obtain 100% of the achievable cost-effective
                 EE by 2025.




                 MT Code Annotated 69-3-1408:
                 http://data.opi.mt.gov/bills/mca/69/3/69-3-1408.htm




                 Natural gas EE programs reach all customer classes, including low-
             Y
                 income customers.
    Statute requires the Commission to establish a natural gas
    Universal System Benefit Program, and starting 1/1/07, there is a
    minimum annual funding requirement for low-income
    weatherization and low-income energy bill assistance at 0.42% of a
    natural gas utility's annual revenue.




Y




    MT Code Annotated 69-3-1408:
S
    http://data.opi.mt.gov/bills/mca/69/3/69-3-1408.htm




    Natural gas conservation plans are required to be submitted every
Y   two years.
Y




    NorthWestern Energy has an on-going advisory committee related
    to all aspects of resource planning and acquisition, including EE.
Y
deliver energy efficiency where cost-effective.
                   MAC 38.6.201 states that gas utilities shall be authorized to
                   recover reasonable costs incurred to implement conservation
                   programs. A gas PBF was established in 1997. Additional DSM
                   costs are recovered in base rates.


             Y




                   http://arm.sos.mt.gov/38/38-7021.htm; MT Code Annontated (PBF)
                   69-3-1408: http://data.opi.mt.gov/bills/mca/69/3/69-3-1408.htm




             b,c




 cost-effective energy efficiency and modify ratemaking practices to
                   Lost revenue recovery was approved for MDU's natural gas
                   efficiency programs in 2005 in Docket 2005-10-156.




             Y-
    http://www.psc.state.mt.us/eDocs/eDocuments/pdfFiles/D2005-10-
    156_6697c.pdf




b
                                                                      NEW MEXICO
                                                                              Electric
Recommendation 1: Recognize energy efficiency as a high priority energy resource.
         EE is established as a high priority resource,       The New Mexico Efficient Use of Energy Act
         equivalent or superior to supply resources           requires demand and supply side resources
                                                              to be evaluated consistently in the IRP
                                                              process. The Act also requires the
                                                              Commission to ensure that supply and
                                                              demand options are financially neutral to
                                                              utilities. The 2008 amendments (HB 305) to
                                                              the Efficient Use of Energy Act of 2005 to
                                                              provide for energy efficiency and load
                                                          Y   management for public utility customers. HB
                                                              305 directs electric and gas utilities to
                                                              acquire all cost-effective and achievable
  1.1                                                         energy efficiency resources. The 2008
                                                              amendments also direct the PRC to provide
                                                              utilities an opportunity to earn a profit on
                                                              investments in cost-effective energy
                                                              efficiency and load management resources.


                                                              http://www.nmcpr.state.nm.us/NMAC/_title17
                                                          R
                                                              /T17C007.htm
                                                              HB 305:
                                                          S   http://ssl.csg.org/dockets/2010cycle/30B/30B
                                                              bills/1230b01nmloadmanagement.pdf
         1.2.1 EE is integrated into an active IRP,           New Mexico Statutes, Chapter 62-17-10
         portfolio management, or other planning              requires utilities to conduct IRP and evaulate
         process                                          Y   supply and demand side resources on a
                                                              consistent and comparable basis.

                                                              IRP statute may be looked up from
                                                          S   http://www.conwaygreene.com/nmsu/lpext.dl
                                                              l?f=templates&fn=main-hit-h.htm&2.0
  1.2                                                         The PUC promulgated IRP rules in April
                                                              2007. The rules are available at
                                                          R
                                                              http://www.nmcpr.state.nm.us/NMAC/_title17
                                                              /T17C007.htm
         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                 N


  1.4
        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              New Mexico Statutes, Chapter 62-17-2
                                                         establishes efficiency as an essential
                                                         component of utility resource portfolios.
                                                         Utility stakeholders followed up overall
                                                         energy use reduction goals established by
                                                         Governor Bill Richardson in 2007 with
                                                     Y   specific requirements for electric utilities.
  2.1                                                    Negotiated consensus amendments to the
                                                         2005 Efficient Use of Energy Act require
                                                         investor-owned utilities to reduce electricity
                                                         use by 5% by 2014 and 10% by 2020 as a
                                                         result of DSM programs implemented
                                                         starting in 2007.
                                                         http://www.conwaygreene.com/nmsu/lpext.dl
                                                     S
                                                         l?f=templates&fn=main-hit-h.htm&2.0
                                                         New Mexico Statutes, Chapter 62-17-5
        The TRC or Societal Cost Test is used to     Y   requires use of the TRC test.
  2.2   evaluate EE programs
                                                     S   see 2.1 above

        2.3.1 Potential for cost-effective EE has        PNM completed a study in 2006.
        been established through a potential study   Y

                                                         http://www.swenergy.org/news/PNM_Electric
                                                         _Potential_Study.pdf
  2.3   2.3.2 Established EE programs reach all          PNM and Xcel's DSM programs include
        customer classes                                 programs for residential and commercial
                                                     Y   customers. Filings for 2009 programs took
                                                         place 2008 and were approved by the PRC.

                                                         2008 Leg activity (HB 246) attempted to
                                                         direct funds to low-income programs. Bill
                                                         stalled in committee.
                                                         PNM:
                                                         http://www.swenergy.org/news/2008/2008-09-
                                                         PNM_2008_Electricity_DSM_Plan_and_Filin
                                                     U   g.pdf Xcel:
                                                         http://www.swenergy.org/news/2008/2008-11-
                                                         SPS_2009_DSM_Plan.pdf
      Funding requirements for all long-term, cost-        The PNM study, conducted by ITRON,
      effective EE have been established                   included a 10-year analysis of costs and
                                                           benefits of a "maximum achievable" EE
                                                           program. See p. 10 of the report at the link
                                                       Y   below. HB 305 clarifies that PRC-approved
2.4                                                        energy efficiency programs must be cost
                                                           effective, that is,
                                                           less expensive than pursuing new sources of
                                                           supply;

      2.5.1 Quantitative MW and MWh savings                The 2008 amendments (HB 305) to the
      goals have been established and are                  Efficient Use of Energy Act of 2005 to
      producing incremental investment.                    provide for energy efficiency and load
                                                           management for public utility customers. HB
                                                           305 directs electric and gas utilities to
                                                           acquire all
                                                           cost-effective and achievable energy
                                                           efficiency resources. Electric utilities must
                                                       N   achieve a five
                                                           percent energy efficiency savings from 2005
                                                           electricity sales by 2014, and 10 percent by
                                                           2020.
                                                           The Public Regulation Commission (PRC)
                                                           can set alternative energy efficiency
                                                           requirements if
                                                           the electric utility demonstrates it cannot
                                                           meet the minimum requirements.
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

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


      2.5.4 Expected Capacity Savings 2006
      (Annual MW)

      2.5.5 Energy Savings Goals 2006 (Annual
      MWh or MTherms)
      2.6.1 A robust M&V process has been                   New Mexico Statutes 62-17-8 requires
      established                                           utilities to submit an annual M&V report
                                                            prepared by an independent third party and
                                                            conforming to any specifications that the
                                                            Commission should establish. Additional
                                                            guidance is provided in NMAC 17.7.2.12. HB
                                                        Y   305 adopted in 2008 strengthens the energy
                                                            efficiency
                                                            measurement and verification requirement;
                                                            and requires a detailed assessment of the
                                                            utility’s energy efficiency programs every
                                                            three years by an independent program
                                                            evaluator.
                                                            http://www.nmcpr.state.nm.us/NMAC/parts/ti
                                                        S
                                                            tle17/17.007.0002.htm
      2.6.1.1   M&V is adequately funded                Y

      2.6.1.2 Energy savings are used to
                                                        Y
2.6   measure performance

      2.6.1.3 M&V is done according to a                    HB 305 strengthens the energy
      defined schedule                                      efficiencymeasurement and verification
                                                            requirement; and requires a detailed
                                                        Y
                                                            assessment of the utility’s energy efficiency
                                                            programs every three years by an
                                                            independent program evaluator.

      2.6.1.4 M&V is conducted by an
                                                        Y
      independent party

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

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



      2.7.1 EE delivery structure has been                  Currently being addressed through utility
      established                                           applications. Appears to be primarily utility
                                                            administered and implemented. 2008
                                                            amendments to the Efficient Use of Energy
                                                        Y
                                                            Act allows the PRC to require utilities to
                                                            solicit
                                                            competitive bids from third party contractors
2.7                                                         for energy efficiency services.
                                                        U
      2.7.2 Delivery is via: (a) utility
      administration; (b) third-party administration;
      or (c) government agency
        Resource plans are regularly updated
                                                         Y  NMAC 17.7.3.9 requires utilities to file IRPs
  2.8                                                       every 3 years.
                                                         R http://www.nmcpr.state.nm.us/NMAC/parts/ti
        2.9.1 Building Energy Codes for residential         2006 IECC mandatory statewide. REScheck
        buildings are in place and regularly updated        can be used to show compliance. Typically
                                                        Y/Y
                                                            updated every 3 years. Last updated as of
                                                            7/1/08.
                                                            http://bcap-energy.org/node/85


  2.9   2.9.2 Building Energy Codes for                     ASHRAE 90.1-2004 mandatory statewide.
        commercial buildings are in place and               COMcheck can be used to show
        regularly updated                                   compliance. Typically updated every 3 years.
                                                        Y/Y
                                                            Last updated as of 7/1/08.


                                                             http://bcap-energy.org/node/85
        Appliance and Equipment Efficiency
        Standards are in place and regularly            N
 2.10   updated

        Energy efficiency is a high priority in state        However, unclear how many buildings have
        buildings and state funded buildings as              complied with the EO.
                                                         Y
        evidenced in capital planning and enabling
 2.11   performance contracts
                                                             http://www.governor.state.nm.us/orders/200
                                                        EO
                                                             6/EO_2006_001.pdf
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
                                                         Y
  3.1   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
  3.2   Homes
        What proportion is due to regulated utility          Public Service Company of New Mexico
        program? (who is sponsor)                            (PNM), Texas New Mexico Power Company
         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                     New Mexico Statutes, Chapter 62-17-6.
                                                                establishes that expenses for cost-effective
                                                                efficiency programs should be recovered via
                                                                a rider. The initial rider was capped at 1.5%
                                                                unless certain conditions were met. 2007
                                                                amendment have removed the 1.5% cap
                                                            Y
                                                                and now allow the Commission to establish
                                                                the rider. The actual amount of efficiency
                                                                spending is determined via annual DSM
                                                                plans submitted by the utilities and approved
                                                                by the PRC.

                                                                http://www.conwaygreene.com/nmsu/lpext.dl
                                                                l?f=templates&fn=main-hit-h.htm&2.0
                                                                NMAC 17.7.2.12 requires utilities to propose
  4.1                                                           tariff riders to fund efficiency activities
                                                                requires by the Efficient Use of Energy Act
                                                                http://www.nmcpr.state.nm.us/NMAC/_title17
                                                                /T17C007.htm

                                                                The amendment to the Act (SB 418 of the
                                                                2007 session) is available at
                                                                http://legis.state.nm.us/Sessions/07%20Reg
                                                                ular/final/SB0418.pdf
         4.1.2 Recovery occurs via: (a) rider; (b)
         regular rate case; or (c) system benefits          a
         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            See 4.1.1 above
         used for energy efficiency [no unit = %; m/k
  4.3    = mils/kWh]

         Funds from carbon trading program support          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             New Mexico Statutes, Chapter 62-17-5
      addressed and disincentives are removed           requires the Commission to identify and
                                                        remove any finanical barriers to energy
                                                        efficiency procurement by utilities.
                                                        Rulemaking in Case No 08-24-UT will
                                                        consider the changes required by passage
                                                        of HB305 in 2007. HB305 adopted in 2008
                                                    N   requires the commission to “provide public
                                                        utilities an opportunity to earn a profit on cost-
                                                        effective energy efficiency and load
                                                        management resource development that,
                                                        with satisfactory program performance, is
                                                        financially more attractive to the utility than
                                                        supply-side resources."

                                                        NMAC 17.7.2.9 requires utilities to identify
5.1
                                                        any barriers or disincentives and propose
                                                        mechanisms to eliminate any
                                                        disincentives.http://www.nmcpr.state.nm.us/
                                                        NMAC/parts/title17/17.007.0002.htm
                                                        New Mexico Statutes 62-17-7 allow the use
                                                        of an alternative efficiency provider. NMAC
                                                        17.7.2.15 allows the use of a third party
                                                        administrator to assume a utility or utilities'
                                                        obligation to provide efficiency. Such an
                                                        arrangement would be done with the
                                                        consent of all involved utilities and by
                                                        Commission approval.
      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       Amendments to the 2005 Efficient Use of
      provided                                          Energy Act allows the Commission to to
                                                    N   provide financial incentives to make utility
                                                        procurement of energy efficiency profitable
                                                        for utilities.
5.2                                                     http://legis.state.nm.us/Sessions/07%20Reg
                                                        ular/final/SB0418.pdf
      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             One utility has inclining rates, the others
      variable rate designs have been eliminated    N   have flat rates

                                                    U  according to EEI
      5.4.1 Time sensitive rates in place              Some IOUs have TOU rates in place but the
                                                    Y-
                                                       program varies based upon utility
                                                    U according to EEI


5.4
         5.4.2 Usage sensitive rates in place               One utility has inclining rates, the others
                                                       Y-
                                                            have flat rates
  5.4                                                  U    according to EEI
         5.4.3 AMI deployment planned                  N
                                                            according to FERC filings
         5.4.4 Other mechanisms exist (e.g., on-bill
         financing, benefit sharing)

State Fiscal Policy
         Sales Tax reduction or exemption for energy        SB 35 would have provided an income tax
         efficient products                                 credit for the purchase of certain energy-
                                                       N
    -                                                       efficient appliances and HVAC systems.
                                                            The bill stalled in committee.

         Investment Tax Credit for energy efficient
         investments                                        SB 463, enacted in April 2007, established a
                                                            personal tax credit and a corporate tax credit
                                                            for sustainable buildings in New Mexico. The
                                                            tax credits apply to both commercial and
                                                            residential buildings. Commercial buildings
                                                            which have been registered and certified by
                                                            the US Green Building Council at LEED*
                                                       Y
                                                            Silver or higher for new construction (NC),
                                                            existing buildings (EB), core and shell (CS),
                                                            or commercial interiors (CI) are eligible for a
    -                                                       tax credit. The amount of the credit varies
                                                            according to the square footage of the
                                                            building and the level of certification
                                                            achieved, as indicated on the following chart:

                                                            See statute 7-2A-21
                                                            http://www.conwaygreene.com/nmsu/lpext.dl
                                                       S
                                                            l/nmsa1978/9a3/493d/501a/5119?fn=docum
                                                            ent-frame.htm&f=templates&2.0
                                                            http://www.dsireusa.org/incentives/incentive.
                                                            cfm?Incentive_Code=NM16F&re=0&ee=1
         State supported low cost financing for
         energy efficient investments: buildings (x),       New Mexico's Energy Efficiency and
         equipment (y)                                      Renewable Energy Bonding Act, which
                                                            became law in April 2005, authorizes up to
                                                            $20 million in bonds to finance energy
                                                            efficiency and renewable energy
                                                            improvements in state government and
                                                            school district buildings. At the request of a
                                                            state agency or school district, the New
                                                            Mexico Energy, Minerals and Natural
                                                            Resources Department will conduct an
                                                            energy assessment of a building to
                                                            determine specific efficiency measures
                                                         Y which will result in energy and cost savings.
                                                        x,y A state agency or school district may install
                                                            or enter into contracts for the installation of
                                                            energy efficiency measures on the building
                                                            identified in the assessment. An installation
   -                                                        contract may be entered into for a term of up
                                                            to 10 years. The bonds are exempt from
                                                            taxation by the state, and any type of
                                                            renewable energy system and most energy
                                                            efficiency measures, including energy
                                                            recovery and combined heat and power
                                                            (CHP) systems, are eligible for funding.
                                                            Projects financed with the bonds will be paid
                                                            back to the bonding authority using the
                                                            savings on energy bills.
                                                            See Article 21D
                                                            http://www.conwaygreene.com/nmsu/lpext.dl
                                                         S
                                                            l/nmsa1978/9a3/3c10/44f7?fn=document-
                                                            frame.htm&f=templates&2.0

                                                            http://www.dsireusa.org/incentives/incentive.
                                                            cfm?Incentive_Code=NM07F&re=0&ee=1
         New or reorganized energy policy agency

Distributed Generation Policies
      A statewide interconnection policy is in place      In July 2008 the New Mexico Public
                                                          Regulation Commission adopted Rule 568
                                                          and Rule 569 which govern interconnection.
                                                          Rule 569 applies to all qualifying facilities
                                                          (QFs) under PURPA, which generally
                                                          includes all renewable-energy systems and
                                                          combined-heat-and-power (CHP) systems
                                                          from 10 megawatts (MW) up to 80 MW in
                                                          capacity. Rule 568 applies to renewable-
                                                          energy systems and CHP systems up to 10
                                                          MW in capacity. There are four levels of
                                                          review. Systems up to 10 kilowatts (kW) in
                                                          capacity are eligible for the "Simplified
                                                          Interconnection Process," which includes
                                                       Y+
                                                          simplified applications. Systems greater than
                                                          10 kW and up to 2 MW are eligible for the
                                                          "Fast Track Process," which might include
7.1
                                                          supplemental review. Systems greater than
                                                          2 MW and up to 10 MW must follow the "Full
                                                          Interconnection Study Process." Systems
                                                          greater than 10 MW must follow the "Case
                                                          Specific Study Process." The application
                                                          fees vary according to size. Systems up to
                                                          10 kW must pay $50; systems greater than
                                                          10 kW and up to 100 kW must pay $100;
                                                          and systems greater 100 kW must pay $100
                                                          plus $1 per kW. In addition to these fees, a
                                                          small utility with fewer than 50,000
                                                          Rule 568 can be accessed here:
                                                          http://www.dsireusa.org/documents/Incentive
                                                          s/NM16Ra.htm and Rule 569 is located
                                                       A
                                                          here:
                                                          http://www.dsireusa.org/documents/Incentive
                                                          s/NM16Rb.htm
      A statewide net metering policy is in place         New Mexico has a statewide net metering
                                                          policy available to systems up to 80 MW in
                                                          capacity. All utilities regulated by the PRC
                                                          must offer net metering. Net metering is
                                                          available to all PURPA QF, which includes
                                                          renewables and CHP systems. NEG is
                                                          credited or paid to customers at the utility's
                                                          avoided cost rate. There is no limit on overall
                                                       Y
                                                          enrollment of net metered systems. If a
                                                          customer has NEG worth less than $50
7.2                                                       during a monthly billing period, then the
                                                          excess will be carried forward to the next
                                                          month, otherwise if NEG exceeds $50 then
                                                          the utility will pay the customer during the
                                                          next billing month.
7.2




                                                          The most recent rules related to net
                                                          metering, 17.9.570 NMAC, can be accessed
                                                     A    from here,
                                                          http://www.nmcpr.state.nm.us/NMAC/parts/ti
                                                          tle17/17.009.0570.htm.
      A statewide exit fee policy is in place
7.3
      A statewide standby rate policy is in place         New Mexico does not have a statewide
                                                     N
                                                          policy on standby rates

                                                          Public Service Co of NM - Rate 12 - standby
                                                          service is available to QFs that contract for a
                                                          specified amount of standby capacity. There
                                                          is a high customer charge assessed every
                                                          month. Actual usage is charged through a
                                                     U-   high demand charge and moderate energy
                                                          charges. Billing demand is based on the
                                                          higher of the maximum on-peak demand of
                                                          the month or 50% of the maximum from the
                                                          previous 11 months. Rate available at:
                                                          http://www.pnm.com/regulatory/electricity_le
                                                          gacy.htm
7.4
                                                          Southwestern Public Service Co (Xcel
                                                          Energy) - standby service is available to QFs
                                                          that contract for a specified amount of
                                                          standby capacity. There is a high customer
                                                          charge and a moderate demand based
                                                          reservation fee that are assessed every
                                                          month. Actual usage is charged through a
                                                     U-   moderate demand and energy rate. Billing
                                                          demand is based on the higher of the
                                                          maximum 30 minute demand of the month
                                                          or 60% of the maximum from the previous
                                                          11 months. Rate available at:
                                                          http://www.xcelenergy.com/Company/About_
                                                          Energy_and_Rates/Energy%20Prices%20(R
                                                          ates%20and%20Tariffs)/Pages/NMEnergy_
                                                          Rates.aspx
      As part of resource planning process, CHP           New Mexico's IRP rules are outlined in
      is reviewed and incorporated where effective        Chapter 62-17-10 of the state statutes.
                                                     Y
                                                          Utilities must assess distributed generation.

                                                          Chapter 62-17-10 can be looked up at
                                                          http://www.conwaygreene.com/nmsu/lpext.dl
                                                          l?f=templates&fn=main-hit-h.htm&2.0
                                                          Public Service Co of NM issued an IRP in
                                                          September 2008 for the 2008-2017 period.
7.5                                                  U+ CHP technologies are not specifically
                                                          identified as a resource option in the IRP,
                                                          but may be assessed in future IRPs.
                                                      http://www.pnm.com/regulatory/irp_electric.htm
        7.5




                                                             Southwestern Public Service Co (Xcel
                                                             Energy) considers CHP technologies in its
                                                         U+ IRP. The next IRP will be submitted to the
                                                             New Mexico Public Regulation Commission
                                                             by Mid-July 2009.
http://www.xcelenergy.com/Company/About_Energy_and_Rates/Resource%20and%20Renewable%20Energy%20Plans/Pages/New_
                            Natural Gas
urce.
            The New Mexico Efficient Use of Energy Act
            requires demand and supply side resources to be
            evaluated consistently in the IRP process. The Act
            also requires the Commission to ensure that
            supply and demand options are financially neutral
            to utilities. The 2008 amendments also direct the
            PRC to provide utilities an opportunity to earn a
            profit on investments in cost-effective energy
            efficiency and load management resources.
        Y




        R


        S

            New Mexico Statutes, Chapter 62-17-10 requires
            utilities to conduct IRP and evaulate supply and
        Y   demand side resources on a consistent and
            comparable basis.

            IRP statute may be looked up from
        S   http://www.conwaygreene.com/nmsu/lpext.dll?f=te
            mplates&fn=main-hit-h.htm&2.0
            The PUC promulgated IRP rules in April 2007. The
            rules are available at
        R
            http://www.nmcpr.state.nm.us/NMAC/_title17/T17
            C007.htm
effective energy efficiency as a resource
                 New Mexico Statutes, Chapter 62-17-2
                 establishes efficiency as an essential component
                 of utility resource portfolios.



             Y




                 http://www.conwaygreene.com/nmsu/lpext.dll?f=te
             S
                 mplates&fn=main-hit-h.htm&2.0
                 New Mexico Statutes, Chapter 62-17-5 requires
             Y   use of the TRC test.


             S   see 2.1 above

             Y
    New Mexico Statutes 62-17-8 requires utilities to
    submit an annual M&V report prepared by an
    independent third party and conforming to any
    specifications that the Commission should
    establish.

Y




    http://www.nmcpr.state.nm.us/NMAC/parts/title17/
S
    17.007.0002.htm
Y    NMAC 17.7.4.9 requires gas utilities to file IRPs
     every 4 years.
R    http://www.nmcpr.state.nm.us/NMAC/parts/title17/




Y-
deliver energy efficiency where cost-effective.
                 New Mexico Statutes, Chapter 62-17-6.
                 establishes that expenses for cost-effective
                 efficiency programs should be recovered via a
                 rider. The initial rider was capped at 1.5% unless
                 certain conditions were met. 2007 amendment
                 have removed the 1.5% cap and now allow the
             Y
                 Commission to establish the rider. The actual
                 amount of efficiency spending is likely to depend
                 on the results of the IRP analysis and approval
                 process.


                 http://www.conwaygreene.com/nmsu/lpext.dll?f=te
                 mplates&fn=main-hit-h.htm&2.0
                 http://www.nmcpr.state.nm.us/NMAC/_title17/T17
                 C007.htm




 cost-effective energy efficiency and modify ratemaking
    PNM filed for a gas decoupling mechanism in
    Case 06-00210-UT. The Commission rejected the
    decoupling mechanism in June 2007 but stated
    that PNM would be encouraged to request a better-
    designed decoupling proposal in the future. New
    Mexico Statutes, Chapter 62-17-5 applies to gas
    as well as electric utilities; Rulemaking in Case
N   No. 08-24-UT also applies to gas; see entries
    under electric.




    http://www.pnmresources.com/press/docs/2007/0
    702_prc_order_pnm_gas.pdf




    Amendments to the 2005 Efficienct Use of Energy
    Act allows the Commission to use incentives to
N   make utility procurement of energy efficiency
    financially neutral.

    http://legis.state.nm.us/Sessions/07%20Regular/fi
    nal/SB0418.pdf
                                                                          NEVADA
                                                                               Electric
Recommendation 1: Recognize energy efficiency as a high priority energy resource.
         EE is established as a high priority resource,       EE is included in IRP planning but is not
         equivalent or superior to supply resources       N   equivalent or superior to supply resources.
  1.1


         1.2.1 EE is integrated into an active IRP,          Nevada Revised Statutes 704.741 require an
         portfolio management, or other planning             IRP process. Rules regarding DSM are
                                                          Y-
         process                                             detailed in Nevada's administrative code.
                                                             See http://www.leg.state.nv.us/NRS/NRS-
                                                             704.html#NRS704Sec741at
                                                             NRS 704.741 is available
                                                          S http://www.leg.state.nv.us/NRS/NRS-
                                                             704.html#NRS704Sec741

  1.2                                                         Nevada Administrative Code 704.934
                                                              contains specific requirements for DSM
                                                          R
                                                              analysis in the IRP. See
                                                              http://www.leg.state.nv.us/NAC/NAC-
                                                              704.html#NAC704Sec9523
         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                                        see 2009 notes

Recommendation 2: Make a strong, long-term commitment to implement cost-effective energy efficiency
         Efficiency commitment is in statute                  NRS 702 codified the universal service
                                                          Y   charge which calls for some portion to be
                                                              spent towards EE.
  2.1                                                         http://www.leg.state.nv.us/71st/bills/AB/AB66
                                                          S   1_EN.html or http://leg.state.nv.us/NRS/NRS-
                                                              702.html
                                                           Supply and demand resource analyses for
                                                           utility resource plans must include present
                                                           worth of societal costs and future revenue
                                                       Y   requirements (utility cost) as well as net
      The TRC or Societal Cost Test is used to             economic benefits and envirnomental costs
2.2   evaluate EE programs                                 to the State.
                                                           Nevada Administrative Code 704.934
                                                           through 704.937 contains specific
                                                       R   requirements for DSM analysis in the IRP.
                                                           See http://www.leg.state.nv.us/NAC/NAC-
                                                           704.html#NAC704Sec934 et seq.
      2.3.1 Potential for cost-effective EE has
      been established through a potential study       N


      2.3.2 Established EE programs reach all              NAC 704.800 specifies that utilities are
2.3   customer classes                                     required to annually inform customers (via
                                                       Y   announcements in bills) about available
                                                           energy savings programs and the costs and
                                                           procedures involved.
                                                           http://www.leg.state.nv.us/NAC/NAC-
                                                       R
                                                           704.html#NAC704Sec800

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

      2.5.3 Energy Efficiency can be used to fulfill
      requirements of an RPS or similar standard           Nevada Revised Statutes, 704.7803-
                                                           704.78215 allows efficiency to supply up to
                                                           25% of the re-named clean energy portfolio
2.5                                                        standard. The clean energy portfolio
                                                       Y
                                                           standard is equal to 9% of electricity supply
                                                           in 2007-08, increasing to 20% in 2015. At
                                                           least half of the energy savings credits must
                                                           come from electricity savings in the
                                                           residential sector.
                                                           http://www.leg.state.nv.us/NRS/NRS-
                                                       S
                                                           704.html#NRS704Sec701
      2.5.4 Expected Capacity Savings 2006
      (Annual MW)
      2.5.5 Energy Savings Goals 2006 (Annual
      MWh or MTherms)

      2.6.1 A robust M&V process has been               Electric IRPs are filed every 3 years.
      established                                       Further, the utility required to file an annual
                                                        DSM status report every August. Further, if
                                                        participating in energy efficiency programs
                                                 Y      natural gas energy efficiency and
                                                        conservation plan are required to be filed
                                                        every three years with a annual update.
                                                        (LCB File Number R095-08)

                                                        Sierra Pacific Docket no. 06-04018, and
                                                        Nevada Power docket no. 06-03038. NOTE:
                                                 U
                                                        nothing filed in 2008 for either utility

                                                        http://leg.state.nv.us/register/2008Register/R
                                                 R
                                                        095-08I.pdf
      2.6.1.1   M&V is adequately funded         Y      Funded as part of the IRP process

      2.6.1.2 Energy savings are used to                one of the measures
                                                 Y
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
                                                 Y
      independent party

      2.6.1.5 Review of M&V is done in a                NAC 704.9522 requires the electric utility to
      transparent process                               comply with the recent M&V protocol
                                                 Y
                                                        approved by the Commission at the time the
                                                        EE measure is implemented.
                                                        http://leg.state.nv.us/NAC/NAC-
                                                 S
                                                        704.html#NAC704Sec9522
      2.6.2 M&V is done using: (a) deemed               unique protocol for each measure
      savings; (b) actual savings; (c) other
                                                a,b,c



      2.7.1 EE delivery structure has been
      established                                       The utility companies collect a EE system
                                                        benefits charge and administer the programs
                                                        with oversight by the PUCN. The companies
                                                        propose a budget and program plan to the
                                                 Y
                                                        PUCN as part of energy efficiency and
                                                        conservation plan requirements. The utilities
                                                        must have their program plans and budgets
2.7                                                     approved by the PUCN prior to
                                                        implementation. (LCB File Number R095-08)
                                                        http://leg.state.nv.us/register/2008Register/R
                                                 S
                                                        095-08I.pdf
  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                   See 1.2.1 above
                                                           Y
  2.8

        2.9.1 Building Energy Codes for residential           2003 IECC code mandatory where local
        buildings are in place and regularly updated          code does not exist. Jurisdictions in
                                                              Southern Nevada have adopted the 2006
                                                          Y/Y Southern Nevada Energy Code, which is
                                                              based on the 2006 IECC with amendments.
                                                              Jurisdictions in Northern Nevada have
                                                              adopted the 2006 IECC.
                                                              http://bcap-energy.org/node/81
                                                           U
  2.9   2.9.2 Building Energy Codes for
        commercial buildings are in place and                 2003 IECC mandatory for all jurisdictions
        regularly updated                                     that have not adopted an energy code; can
                                                              use COMcheck to show compliance.
                                                          Y/Y Jurisdictions in southern Nevada have
                                                              adopted the 2006 Southern Nevada Energy
                                                              Code, which is based on the 2006 IECC with
                                                              amendments. Jurisdictions in Northern
                                                              Nevada have adopted the 2006 IECC.
                                                           U http://bcap-energy.org/node/81
        Appliance and Equipment Efficiency                    Legislation passed in 2007 (Assembly bill
        Standards are in place and regularly               Y 178) effectively bans incandescent lights,
 2.10   updated                                               starting in 2012. No regulations in effect.

        Energy efficiency is a high priority in state
        buildings and state funded buildings as              NRS Title 58, Chapter 701 directs the
        evidenced in capital planning and enabling           Director of the Office of Energy to develop a
        performance contracts                                state energy reduction plan requiring state
                                                             agencies to reduce grid-based energy
                                                             purchases for state-owned buildings by 20%
                                                             by 2015. It also requires the Director to
                                                          Y-
                                                             adopt guidelines establishing a Green
 2.11                                                        Building Standards for all occupied public
                                                             buildings whose construction will be
                                                             sponsored or financed by the State or a local
                                                             government. Note that a Bill to require
                                                             green bldg standards for some state bldgs
                                                             was repealed in 2007.
                                                             http://leg.state.nv.us/nrs/NRS-
                                                          S
                                                             701.html#NRS701Sec200
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
                                                                see utility resource plans 2.6.1


         3.1.2 Process is in place, such as a state             DSM statewide collaborative process in
         or regional collaborative, to pursue EE as a           place for regulated utilities
                                                            Y
         high-priority resource. (See Guide Tab for
  3.1    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
  3.2    Homes
         What proportion is due to regulated utility            State of Nevada, Housing Division
         program? (who is sponsor) Performance
         75% of state access to Home
         with ENERGY STAR?                                  Y

         What proportion is due 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

                                                                NRS 704.751 states that all reasonable and
                                                            Y
                                                                prudent expenditures in carrying out a
                                                                utility's IRP shall be recovered from
                                                                ratepayers.


                                                            S
                                                                http://www.leg.state.nv.us/NRS/NRS-
                                                                704.html#NRS704Sec741
  4.1                                                           Utility can capitalize DSM expenses???
                                                            R
         4.1.2 Recovery occurs via: (a) rider; (b)              EE costs are recovered through regular rate
         regular rate case; or (c) system benefits          b   case
         charge

         4.1.3 Funding is for multi-year periods                Programs are approved with estimated
                                                                budget but utilities must justify all costs in
                                                            N
                                                                rate cases in order to receive approval for
                                                                funds previously spent.

         A base energy efficiency spending level
         exists, with opportunity to justify higher level   Y
  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               Currently, NAC 704.9523 allows the utility to
         addressed and disincentives are removed             earn a 5% equity adder on EE investment.




                                                        Y



  5.1


                                                             NAC 704.9523 3(e)(4):
                                                        R
                                                             http://www.leg.state.nv.us/register/2007Regi
                                                             ster/R162-07RP1.pdf
         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         Nevada allows a bonus rate of return for
         provided                                            DSM investments 5% higher than authorized
                                                             rates of return on equity for supply
                                                        Y
                                                             investments, designed to make up for lost
                                                             revenues. Decoupling NOT in place or
                                                             under consideration.
                                                             Nevada Administrative Code 704.9523. See
  5.2                                                   S    http://www.leg.state.nv.us/NAC/NAC-
                                                             704.html#NAC704Sec9523
                                                             NAC 704.9484, available at
                                                        S    http://www.leg.state.nv.us/NAC/NAC-
                                                             704.html#NAC704Sec9484
         5.2.2 Incentives exceed amount of lost              Incentives amount independent of lost
         revenues                                            revenue amount.

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

   5.3   5.3.2 Declining block rates and fixed               fixed rate regardless of amount of
         variable rate designs have been eliminated     N    consumption


         5.4.1 Time sensitive rates in place            Y-




  5.4
                                                               residential:
                                                               www.nvenergy.com/home/paymentbilling/tim
                                                          R    eofuse.cfm business:
                                                               www.nvenergy.com/business/paymentbilling/
                                                               timeofuse.cfm
  5.4    5.4.2 Usage sensitive rates in place             N

         5.4.3 AMI deployment planned                     Y+
                                                          R
         5.4.4 Other mechanisms exist (e.g., on-bill
         financing, benefit sharing)

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

         Investment Tax Credit for energy efficient            AB 621 requires a property tax abatement
         investments                                      Y    for bldgs that are LEED silver certified or
                                                               better.
    -
                                                          S    http://www.dsireusa.org/incentives/incentive.
                                                               cfm?Incentive_Code=NV10F&re=0&ee=1
         State supported low cost financing for
         energy efficient investments: buildings (x),     N
         equipment (y)
    -
         New or reorganized energy policy agency          N

Distributed Generation Policies
         A statewide interconnection policy is in place      The NV PUC adopted interconnection
                                                             standards for customers of Nevada Power
                                                             and Sierra Power in 2003. On-site
                                                             generators using solar thermal electric,
                                                             photovoltaics, wind, biomass, and
                                                             geothermal energy, generating up to 20 MW
                                                             in capacity are eligible to interconnect. NV's
                                                          Y+
   7.1                                                       standards are similar to IEEE 1547
                                                             standards, CA's interconnection Rule 21 and
                                                             the model interconnection rule established
                                                             by NARUC. Additional insurance
                                                             requirements are not specified and an
                                                             external disconnect is not required.
      A statewide net metering policy is in place       Nevada has a net metering law enacted in
                                                        1997 and amended in 2001, 2003, 2005 and
                                                        2007. Systems up to 1 MW in capacity that
                                                        generate electricity using solar, wind,
                                                        geothermal, biomass and certain types of
                                                        hydropower are generally eligible. However,
                                                        systems greater than 100 kW may be
                                                        subject to extra costs. Each IOU must offer
                                                        net metering until the aggregate capacity of
                                                    Y   all net-metered systems in its service
                                                        territory equals 1% of the utility's peak
7.2                                                     capacity. NWG is carried forward to over to
                                                        the next month as a kWh credit, without any
                                                        expiration date. Legislation passed in 2007,
                                                        A.B. 178, requires the Nevada Public Utilities
                                                        Commission (PUC) to adopt regulations that
                                                        outline a standard contract for net metering
                                                        along with a net-metering tariff.

                                                       NAC 704.8901 et seq. can be accessed
                                                       from here,
                                                    A
                                                       http://www.leg.state.nv.us/nac/NAC-
                                                       704.html#NAC704Sec8901
      A statewide exit fee policy is in place          The NV PUC does allow for DG systems to
7.3                                                 Y-
                                                       be charged an exit fee.
      A statewide standby rate policy is in place      Nevada does not have a statewide policy on
                                                    N
                                                       standby rates
                                                       Sierra Pacific Power Co - standby service is
                                                       provided to customers that contract for a
                                                       specified amount of standby capacity. A
                                                       moderate customer charge and high
                                                     - demand based reservation charge is
                                                    U assessed every month. Actual usage is
                                                       charged through high energy charges. Rate
                                                       available at:
                                                       http://www.sierrapacific.com/rates/nv/electric
                                                       /schedules/
7.4                                                    Nevada Power Company - Schedule LSR -
                                                       standby service is provided to customers
                                                       that contract for a specified amount of
                                                       standby capacity. A moderate customer
                                                       charge and moderate demand based
                                                       reservation charge are assessed every
                                                    U month. Actual usage is charged through a
                                                       moderate demand charge and moderate
                                                       energy charges. Billing demand is based on
                                                       the maximum demand of the month. Rate
                                                       avaialable at:
                                                       http://www.nevadapower.com/rates/tariffs/sc
                                                       hedules/
      As part of resource planning process, CHP          Details regarding resource plan
      is reviewed and incorporated where effective       requirements can be found in the NV
                                                         administrative code, 704.925. Utilities must
                                                         forecast energy consumption and peak
                                                         demand. The regulations state that "The
                                                         utility shall consider the impact of distributed
                                                         generation and customers who acquire
                                                         energy" from either - 1) those that sell
                                                         electricity who are not subject to the
                                                     Y
                                                         jurisdiction of the Public Utilities Commission
                                                         of Nevada, tariff for distribution service (i.e.,
                                                         Colorado River Commission of Nevada)(see
                                                         NRS 704.787); or 2) who are considered to
                                                         be new providers of electric services (see
                                                         chapter 704B). Currently docket # 08-02037
                                                         is open to consider revisions to the resource
7.5                                                      planning process.

                                                         http://www.leg.state.nv.us/NAC/NAC-
                                                     S
                                                         704.html#NAC704Sec925
                                                         Sierra Pacific Power Co uses the same
                                                         general IRP requirements as Nevada Power
                                                     U   (see below). Nevada Power and Sierra
                                                         Pacific Power are owned by Sierra Pacific
                                                         Resource Company.

                                                         Nevada Power Co is a Sierra Pacific
                                                         Resources Company. Nevada Power
                                                         addresses energy efficiency (EE) in its IRP
                                                     U
                                                         and has numerous EE incentive programs,
                                                         but does not specifically address CHP.

                                         http://www.swenergy.org/news/2008-03-NPC_DSM_Amendments.pdf
                                 Natural Gas
urce.
                 No IRP planning required
             N




                 NRS 704.991 requires an informal resource
                 planning process, but the statute does not specify
             N
                 any consideration of DSM.

                 http://www.leg.state.nv.us/NRS/NRS-
                 704.html#NRS704Sec991

                 NAC 704.9655 addresses the role of DSM in gas
                 utility resource plans. Effects of DSM must be
                 included in demand forecasts, and potential
             R
                 programs analyzed.
                 http://www.leg.state.nv.us/NAC/NAC-
                 704.html#NAC704Sec9655




effective energy efficiency as a resource
                 NRS 702 codified the universal service charge
             Y   which calls for some portion to be spent towards
                 EE.
                 http://www.leg.state.nv.us/71st/bills/AB/AB661_EN
                 .html or http://leg.state.nv.us/NRS/NRS-702.html
    Supply and demand resource analyses for utility
    resource plans must include present worth of
    societal costs and future revenue requirements
Y   (utility cost) as well as net economic benefits and
    envirnomental costs to the State.




R

    same as decoupling reg???

N


    NAC 704.800 specifies that utilities are required to
    annually inform customers (via announcements in
Y   bills) about available energy savings programs and
    the costs and procedures involved.

    http://www.leg.state.nv.us/NAC/NAC-
R
    704.html#NAC704Sec800


N



N
deliver energy efficiency where cost-effective.
                 LCB File Nos. R095-08 and T004-08 allow the
                 natural gas utility to recover all reasonable and
                 prudent costs in carrying our a energy efficiency
             Y
                 and conservation plan. Decoupling is an option to
                 remove financial disincentives for encouraging
                 conservation.
                 http://leg.state.nv.us/register/2008Register/R095-
                 08I.pdf and
             S
                 http://leg.state.nv.us/register/2008TempRegister/T
                 004-08RP.pdf

                 EE costs are recovered through a regular rate
             b   case. If decoupling is authorized, revenue
                 reductions are recovered as a rider.




                 LCB File No. R095-08 allows the gas utility to
                 propose an amendment to its tri-annual plan in the
                 annual report process.
cost-effective energy efficiency and modify ratemaking
               LCB File Nos. R095-08 allows a natural gas utility
               to earn a 5% equity adder on its EE investment
               and T004-08 allow the natural gas to request
               decoupling rather than the 5% incentive.4. In
               2007, the legislature passed SB437 requiring the
               PUCN to decouple profits from sales for natural
           Y
               gas utilities, codified as NRS 704.992. The PUCN
               subsequently adopted regulations in 2008
               implementing that law. The regulations require
               that a DSM plan must be submitted and approved
               before decoupling can be authorized in a rate
               case.
               http://leg.state.nv.us/register/2008Register/R095-
               08I.pdf and
               http://leg.state.nv.us/register/2008TempRegister/T
               004-08RP.pdf
               see 5.1.1 above



               Legislation passed in 2007 (SB 437) requires the
               PUC to adopt regulations removing the financial
               disincentives to EE for natural gas utilities.



               see 5.1.1 above




               If utilities choose decoupling it includes lost
               revenues.




           N
                                                                         OREGON
                                                                         Electric
Recommendation 1: Recognize energy efficiency as a high priority energy resource.
         EE is established as a high priority         Federal Northwest Power Act requires conservation
         resource, equivalent or superior to     Y+   first (10% cost-effectiveness adder). In 1989, the
  1.1    supply resources                             Oregon Commission required regulated utilities to
                                                      evaluate supply and demand side resources in
                                                      IRPs first required under PUC Order 89-507.
         1.2.1 EE is integrated into an active        IRP has been required since 1989. Updated IRP
         IRP, portfolio management, or other          guidelines were issued in 2007. Utilities must
                                                 Y+
         planning process                             evaluate all known demand-side resources as part
                                                      of the planning process.
                                                      http://apps.puc.state.or.us/orders/2007ords/07-
                                                      002.pdf (corrected by Order 07-047:
                                                      http://apps.puc.state.or.us/orders/2007ords/07-
                                                      047.pdf)
  1.2
         1.2.2 Efficiency is procured as a            Updated IRP guidelines state the utility should not
         resource for default service/standard        plan for loads "effectively committed to service" by
         offer customers                              an alternative electricity supplier. However, the
                                                 N    customer is considered to be effectively committed
                                                      to such service only during the term of the option
                                                      (e.g., one year or three years).


         EE is an alternative to transmission         The Commission has identified transmission as a
         based on a long-term transparent IRP         priority issue and has previously expressed interest
         or transmission system plan             N    in developing rules guiding the use of non-wires
  1.3                                                 solutions to address distribution and transmission
                                                      system constraints.

         1.4.1 EE is a biddable commodity             Utilities may issue all-source or resource (including
                                                      DSM)-specific RFPs, although in practice DSM
                                                      resources are identified in the IRP process and by
                                                 Y-
                                                      the Energy Trust of Oregon and are procured
                                                      separately from supply. The Energy Trust issues
  1.4                                                 RFPs for its programs.

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

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

Recommendation 2: Make a strong, long-term commitment to implement cost-effective energy efficiency
         Efficiency commitment is in statute          ORS 757.056: All public utilities . . . shall establish
                                                      energy conservation services.
  2.1                                            Y
                                                      http://www.leg.state.or.us/ors/757.html
                                                       The Energy Trust uses the Utility System Test and
      The TRC or Societal Cost Test is                 the Societal Cost Test to evaluate programs.
2.2   used to evaluate EE programs              Y+
                                                       http://www.energytrust.org/meetings/board/2008/08
                                                       0213/06b_CostEff.pdf (Quick links to all Energy
      2.3.1 Potential for cost-effective EE            Updated IRP guidelines (2007) require utilities to
      has been established through a            Y      ensure a potential study is conducted periodically.
      potential study                                  (Utility or Energy Trust may conduct it.)
                                                       http://apps.puc.state.or.us/orders/2007ords/07-
2.3                                                    002.pdf
      2.3.2 Established EE programs                    Large customers can opt out of Energy Trust
      reach all customer classes                Y-     programs and self-direct a portion of the
                                                       conservation funds to on-site efficiency projects, if
                                                       the project is approved by the Oregon Department

      Funding requirements for all long-               Oregon statute established a public purpose
      term, cost-effective EE have been                charge and allows, but does not require, funding for
      established                                      all incremental cost-effective conservation.
                                                       Customers over 1 MWa are exempt from paying
                                                       incremental EE charges and from receiving
                                                Y      benefits from incremental funding. Commission
2.4                                                    IRP policy requires utilities to include in their IRP
                                                       action plans all best cost/risk portfolio conservation
                                                       resources for meeting
                                                       projected resource needs, specifying annual
                                                       savings targets.

      2.5.1 Quantitative MW and MWh                    The Energy Trust proposes annual performance
      savings goals have been established              benchmarks for the Commission's approval and
      and are producing incremental                    sets long-term energy-savings goals. Under SB
      investment.                                      838 (RPS bill passed in 2007), PGE and Pacific
                                                Y+
                                                       Power can file (and have filed) tariffs to include in
                                                       rates funding for cost-effective efficiency
                                                       incremental to what can be achieved through the
                                                       public purpose charge.
                                                       http://apps.puc.state.or.us/orders/2008ords/08-
                                                       529.pdf
      2.5.2 Goals are established: (a)                 The utility IRP process, Energy Trust planning and
      connection with IRP or other planning            budget-setting processes, and utility tariff filings for
      process; (b) as part of an EEPS or               incremental efficiency funding (beyond the public
                                               a,c,d
      similar system; (c) as part of program           purpose charge) set energy savings goals
      approval and budget-setting process;
      (d) other
2.5   2.5.3 Energy Efficiency can be used              Alternative Compliance Payments (ACP) by utilities
      to fulfill requirements of an RPS or             can go to end-use efficiency, power plant efficiency
      similar standard                                 upgrades or eligible renewable energy resources;
                                                Y
                                                       ACP payments by alternative electricity service
                                                       suppliers fund conservation for their direct access
                                                       customers.
      2.5.4 Expected Capacity Savings                The Energy Trust of Oregon does not estimate
      (Annual MW)                                    capacity savings. However, the utilities do in their
                                                     IRPs.

      2.5.5 Energy Savings Goals (Annual             2006 = 25.5 average MW, or about 223,380 MWh;
      MWh or MTherms)                                2008 = 32.12 average megawatts, or about
                                             281,371
                                                     281,371 MWh (Energy Trust goals for PacifiCorp
                                                     and PGE)
                                                     http://www.energytrust.org/library/reports/2006_Ann
                                                     ual_Report.pdf;
      2.6.1 A robust M&V process has                 http://www.energytrust.org/library/reports/2008_Ann
                                                     Statute requires independent review of the PPC to
      been established                               develop recommendations for the legislature. A
                                                     report was released in 2006 that recommended
                                                Y    developing more consistent M&V procedures for
                                                     PPC funds. M&V is done by the ETO. The ETO has
                                                     http://www.puc.state.or.us/PUC/electric_restruc/pur
                                                     pose/013007PPCModificationsFinal.pdf
      2.6.1.1   M&V is adequately funded        Y    Energy Trust conducts numerous M&V studies

                                                     http://www.energytrust.org/library/reports/db/report_
      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
2.6   independent party                              Most evaluations are conducted by third party
                                                     contractors. The Trust does some assembly and
                                                     cleaning of data sets in-house; contracting that out
                                                Y    has not been effective. The Trust evaluates some
                                                     pilot programs in-house because small-scale work
                                                     is too expensive to contract out. The Trust also
                                                     does some simple analysis in-house as a check on
                                                     consultant work.

      2.6.1.5 Review of M&V is done in a             The Trust's board evaluation committee reviews
                                                Y
      transparent process                            draft evaluations. The committee includes outside

      2.6.2 M&V is done using: (a)                   Prescriptive measures have “deemed” estimates
      deemed savings; (b) actual savings;            and quality control and assurance to make sure the
                                               a,b
      (c) other                                      correct equipment was installed properly. Large
                                                     complex mechanical projects have a
                                                     commissioning option, where the ETO pays part of
      2.7.1 EE delivery structure has been           1999 restructuring act (SB 1149) established the
      established                                    Energy Trust of Oregon, a third party non-profit
                                                     entity to deliver energy efficiency programs. The
                                                Y    ETO delivers programs on behalf of most of
                                                     Oregon's electric utilities. Idaho Power administers
2.7
  2.7
        2.7.2 Delivery is via: (a) utility              Energy Trust delivers programs for PGE and
        administration; (b) third-party           a,b   Pacific Power customers; Idaho Power delivers
        administration; or (c) government               programs for its customers.
        agency
        Resource plans are regularly updated            New IRPs must be filed within 2 years of
  2.8                                                   Commission acknowledgment of an IRP unless
                                                  Y
                                                        Commission grants waiver
        2.9.1 Building Energy Codes for                 Residential code is mandatory and updated every 3
        residential buildings are in place and    Y     years. Efficiency requirements in 2008 update are
        regularly updated                               as stringent as 2006 IECC and 15% more efficient


                                                        http://bcap-energy.org/node/90
  2.9   2.9.2 Building Energy Codes for                 Non-residential code is mandatory and reviewed
        commercial buildings are in place and           every three years. 2007 code exceeds ASHRAE
        regularly updated                               2004.
                                                  Y



                                                        http://bcap-energy.org/node/90
        Appliance and Equipment Efficiency              Many of the appliance standards adopted in 2005
        Standards are in place and regularly            exceed federal standards. Standards phased in
                                                  Y
 2.10   updated                                         from Jan. 1, 2007, to Jan. 1, 2009. See ORS
                                                        http://www.dsireusa.org/library/includes/incentive2.
                                                        cfm?Incentive_Code=OR19R&state=OR&CurrentP
                                                        ageID=1&RE=1&EE=1
        Energy efficiency is a high priority in         HB 2620 (2007 Session) requires at least 1.5% of
        state buildings and state funded                contract price for public building construction or
        buildings as evidenced in capital               major renovation to go toward solar water heating,
 2.11   planning and enabling performance         Y     passive solar or PV. Executive Order No. 06-02
                                                        http://egov.oregon.gov/ENERGY/CONS/SEED/SEE
                                                        Dhome.shtml
Recommendation 3: Miscellaneous Policies
        3.1.1 Public education programs on        Y-
        EE are in place. (See Guide Tab for



        3.1.2 Process is in place, such as a            A Conservation Advisory Council advises the
        state or regional collaborative, to             Energy Trust of Oregon on electric and natural gas
        pursue EE as a high-priority resource.          programs. Oregon ratepayers also fund the
        (See Guide Tab for Y/N criteria.)               Northwest Energy Efficiency Alliance, a regional
                                                        group funding electric market transformation.
                                                        NEEA also has a broad advisory group. A
                                                  Y     Northwest Energy Efficiency Taskforce was
                                                        recently formed to recommend actions to advance
  3.1
                                                        energy efficiency in the region. The group
                                                        completed its draft report in December 2008. See
                                                        http://www.nwcouncil.org/energy/neet/Default.asp
  3.1




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         75% of state access to ENERGY
                                               Y
  3.2    STAR New Homes
         What proportion is due to regulated       Energy Trust of Oregon, Pacific Power
         utilityof state access to Home
         75% program? (who is sponsor)
         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        SB 1149 (restructuring bill, 1999 Session) instituted
                                                   a 3% public purpose charge on utility revenues,
                                                   with about half the funds used for EE. However, the
                                                   bill also served as a cap on efficiency expenditures.
                                                   SB 838 (RPS bill, 2007 Session) allowed utilities to
                                                   file tariffs for funding additional cost-effective EE in
                                                   base rates. The Commission approved tariffs for
                                               Y   both Pacific Power (Advice No. 07-022, Schedule
                                                   297) and PGE (Advice No. 07-25, Schedule 109) in
                                                   2008. See
                                                   http://apps.puc.state.or.us/edockets/docket.asp?Do
                                                   cketID=14416 and
                                                   http://apps.puc.state.or.us/edockets/docket.asp?Do
                                                   cketID=14402

                                                   SB 838 is available at
                                                   http://www.leg.state.or.us/07reg/measpdf/sb0800.di
                                                   r/sb0838.en.pdf, with EE provisions beginning at p.
                                                   13.
                                                   SB 1149 is available at
                                                   http://www.energytrust.org/library/policies/sb1149.p
  4.1                                              df
  4.1

                                                                Statute requires the independent review of the PPC
                                                                to develop recommendations for the Legislature. A
                                                                report was released in 2006, recommending the
                                                                PPC be increased from 3% to 5%, recognizing that
                                                                there are cost-effective EE opportunities available
                                                                beyond what the PPC can fund. The report also
                                                                recommended that the PPC be reviewed every 5
                                                                years and adjusted as necessary -- timed to
                                                                coincide with utility IRP and cost-effective potential
                                                                assessments. See p. 5 at
                                                                http://www.puc.state.or.us/PUC/electric_restruc/pur
                                                                pose/013007PPCModificationsFinal.pdf
         4.1.2 Recovery occurs via: (a) rider;                  Rider for incremental funding; system benefit
         (b) regular rate case; or (c) system          a,c      charge for base funding
         benefits charge

         4.1.3 Funding is for multi-year
                                                        Y
         periods

         A base energy efficiency spending              Y
  4.2    level exists, with opportunity to justify
         % of net (retail) utility revenue                      Public purpose charge is 3% of revenues for PGE
         presently used for energy efficiency        Changed    and PacifiCorp. About 57% of the charge is used
         [no unit = %; m/k = mils/kWh]                in 2008   for efficiency, or 1.7% of the bill. Tariffs for
  4.3                                                           incremental EE funding approved in 2008 for both
                                                                utilities amount to an additional 1% of revenues file
                                                                SB 838 said no increasing PPC. But utilities can
                                                                tariffs to include more funding in base rates.

         Funds from carbon trading program            N/A
  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                  SUMMARY: 1999 statute established a 3% public
         addressed and disincentives are                        purpose charge and authorized the creation of a
         removed                                                third party to administer efficiency programs. The
                                                                PUC helped establish the Energy Trust of Oregon
                                                                and executed a grant agreement in 2001 for
                                                                program administration. Lost revenue recovery is
                                                        Y
                                                                allowed for Idaho Power.




                                                                1999 Oregon Legislative Session SB 1149
                                                                authorized the creation of a third party entity to
                                                                administer efficiency programs. See
                                                                http://www.energytrust.org/library/policies/sb1149.p
                                                                df
  5.1
5.1

                                                     ORS 757.262: the Commission may establish
                                                     policies to protect utilities from short-term earnings
                                                     reductions due to DSM.
                                                     http://www.leg.state.or.us/ors/757.html

                                                     OAR 860-027-0310: Acquisition of least-cost
                                                     resources should be the energy utility's most
                                                     profitable course of action.
                                                     http://arcweb.sos.state.or.us/rules/OARS_800/OAR
                                                     _860/860_027.html
      5.1.2 Method used is: (a)
      decoupling; (b) lost revenue recovery;
                                               b,c
      or (c) non-utility implementaion of EE



      5.2.1 Utility/shareholder EE                   OAR 860-027-0310 allows utilities to request
      incentives are provided                        approval of incentive programs. Enactment of a
                                                     public purpose charge in 1999 (effective March
                                                     2002) muted this issue. However, the 2007 RPS
                                                     law (SB 838) allows utilities to file tariffs to include
                                                     in rates funding for incremental energy efficiency.
                                                     The Commission opened a proceeding in 2002 to
                                                     address utilities' bias toward owning generating
                                                     facilities rather than buying power (Docket UM
                                               N
                                                     1276). In Jan. 2008, staff filed a proposal for a pilot
                                                     incentive program for power purchase agreements.
5.2                                                  The case does not address energy efficiency
                                                     incentives but if the Commission approves the pilot
                                                     proposal, it could inform such a mechanism. Case
                                                     documents at:
                                                     http://apps.puc.state.or.us/edockets/docket.asp?Do
                                                     cketID=13600

                                                     http://arcweb.sos.state.or.us/rules/OARS_800/OAR
                                                     _860/860_027.html
      5.2.2 Incentives exceed amount of
      lost revenues

      5.3.1 Impact on EE is a                        Inclining block rates are in place for the major
      consideration when designing retail            electric utilities in the state.
      rates                                    Y
5.3
      5.3.2 Declining block rates and fixed
      variable rate designs have been          Y
      eliminated
         5.4.1 Time sensitive rates in place              All customers of PGE and Pacific Power have a
                                                          time-varying rate option. Residential and small
                                                          nonresidential customers have a conventional time
                                                          of use rate option; all nonresidential customers
                                                    Y     have a daily market pricing option. See ORS
                                                          757.601 and 757.603
                                                          (http://www.leg.state.or.us/ors/757.html). PGE
                                                          offers its largest customers a two-part real-time
                                                          pricing option.

         5.4.2 Usage sensitive rates in place             Inclining block rates are in place for the major
                                                    Y     electric utilities in the state.

         5.4.3 AMI deployment planned                     The Commission approved full roll-out of Advanced
                                                          Metering Infrastructure (AMI) for Portland General
                                                          Electric. Includes customer access to hourly usage
                                                          information (on a daily basis), a proposed critical
  5.4                                                     peak pricing pilot for residential customers, and
                                                    Y     proposed new demand response programs for
                                                          large customers. The Commission also approved
                                                          Idaho Power's request for accelerated writeoff of
                                                          equipment to be replaced pursuant to its AMI
                                                          project.

                                                          Order for PGE in Docket UE 189 (No. 08-245):
                                                          http://apps.puc.state.or.us/orders/2008ords/08-
                                                          245.pdf. Order for Idaho Power in UE 202 (008-
                                                          614):
                                                          http://apps.puc.state.or.us/orders/2008ords/08-
                                                          614.pdf.
         5.4.4 Other mechanisms exist (e.g.,
         on-bill financing, benefit sharing)    N
                                                                                    Y

State Fiscal Policy
         Sales Tax reduction or exemption for       N/A
    -    energy efficient products                        Oregon does not have a sales tax.

         Investment Tax Credit for energy                 Tax credits are available to residents and
         efficient investments                            businesses for installing eligible efficiency
                                                    Y     measures and renewable energy systems.
                                                          http://www.dsireusa.org/library/includes/incentive2.
                                                          cfm?Incentive_Code=OR17F&state=OR&CurrentP
    -                                                     ageID=1&RE=1&EE=1
                                                          Residential tax credits:
                                                          http://www.oregon.gov/ENERGY/CONS/RES/RET
                                                          C.shtml; business tax credits:
                                                          http://www.oregon.gov/ENERGY/CONS/BUS/BETC
                                                          .shtml
         State supported low cost financing for    x, y   The State Energy Loan Program was enacted by
         energy efficient investments: buildings          voters (in the Constitution) in 1980. It provides fixed-
         (x), equipment (y)                               rate, long-term loans for efficiency measures,
                                                          renewable energy systems, using alternative fuels
    -                                                     and using recycled materials to make new
                                                          products. The loans are available to any individual
                                                          or entity in the state.
                                                          http://www.oregon.gov/ENERGY/LOANS/selphm.s
                                                          html
Distributed Generation Policies
         A statewide interconnection policy is            The state’s net metering law, ORS 757.300,
         in place                                         requires all utilities in the state to interconnect
                                                          eligible net-metered systems up to 25 kW for all
                                                          types of customers. (This excludes Idaho Power,
                                                          which is required to offer net metering under
                                                          requirements promulgated in Idaho.) Eligible
                                                          system types are solar, wind, hydropower, fuel cells
                                                          and certain types of biomass resources. A utility
                                                          may not limit the cumulative capacity of net-
                                                          metered systems until they have reached 0.5% of
                                                   Y+     the utility’s historic single-hour peak load. The
                                                          Oregon Public Utility Commission can increase the
                                                          size limits and establish other rules for its primary
   7.1                                                    IOUs (PGE and PacifiCorp). In July 2007, the
                                                          Oregon PUC adopted interconnection standards as
                                                          part of a broader net metering rulemaking, OR
                                                          Admin. R. 860-039. Nonresidential customers of
                                                          the IOUs may interconnect net-metered systems
                                                          up to 2 MW. The rules did not revise the statutory
                                                          size limit on interconnection of net-metered
                                                          systems by residential customers (25 kW). The

                                                    S     ORS 757.300 is available here:
                                                          http://landru.leg.state.or.us/ors/757.html
                                                          Or. Admin. R. 860-039 can be accessed here:
                                                    A     http://arcweb.sos.state.or.us/rules/OARS_800/OAR
                                                          _860/860_039.html.
      A statewide net metering policy is in          Oregon's net metering law (ORS 757.300) applies
      place                                          to all electric utilities in the state. Residential
                                                     customers up to 25 kW and non-residential
                                                     customers up to 2 MW may net meter. The OPUC
                                                     can increase size limits for the two largest IOUs --
                                                     PGE and Pacific Power. Eligible resources are
                                                     wind, solar, hydro, biomass and fuel cell systems.
                                                     The utility can credit net excess generation (NEG)
                                                     in a billing month at its avoided cost rate or carry
                                                     forward the kWh credit to the customer's
                                                     subsequent bills in the annual billing cycle. Any
                                                     remaining NEG at the end of the annual billing
                                                Y+
                                                     cycle may be treated in the following manner, as
                                                     determined by the Commission (for IOUs) or board
                                                     (for COUs): 1) credit the customer at the utility's
7.2
                                                     avoided cost rate; 2) grant the credit to the utility's
                                                     low-income assistance program; or 3) dedicate the
                                                     credit for another use as determined by the
                                                     Commission or board. For PGE and Pacific Power,
                                                     the Commission grants any remaining NEG at the
                                                     end of the annual billing cycle to low-income
                                                     assistance. A utility may limit aggregated capacity
                                                     of all net metered systems to 0.5% of its historic
                                                     single-hour peak load. However, PGE and Pacific
                                                     OR's net metering law (ORS 757.300) is at:
                                                     http://landru.leg.state.or.us/ors/757.html. OR's net
                                                     metering rules (OAR 860-039) are located here:
                                                A
                                                     http://arcweb.sos.state.or.us/rules/OARS_800/OAR
                                                     _860/860_039.html

      A statewide exit fee policy is in place        Oregon has no statewide policy on exit fees.
                                                N    Utilities are not charging such fees to DG
7.3
                                                     owners/operators.

      A statewide standby rate policy is in          Oregon does not have a statewide policy on
                                                N
      place                                          standby rates.
           PacifiCorp - Customers with self-generation under
           1 MW receive standby service under standard rate
           schedules. Customers whose generator has a
           nameplate capacity of 1 MW or greater receive
           basic partial requirements service under Schedules
           47 (delivery) and 247 (supply). The monthly basic
           charge and energy charges are the same as for full
           requirements customers. The customer contract
           sets baseline demand and other terms and
           conditions. Distribution and reserves charges (to
           serve the customer's load when the generator is
           not operating) are based on the average of the two
      U
           greatest demands of the previous 12 months, but
           not less than the baseline demand. The customer
           can self-supply reserves to avoid reserve charges
           or demonstrate instantaneous load reduction
           capability to reduce reserved capacity needs. Thirty-
           day advance notice is required for scheduled
           maintenance energy, priced at the applicable
           standard rate schedule. Unscheduled energy is
           priced at an hourly firm market rate index (plus a
           small risk adder). The customer also can sign up
           for Schedule 276R to buy energy from PacifiCorp
7.4        to replace some or all of the customer’s on-site
           Portland General Electric - Customers with self-
           generation under 2 MW receive service under
           standard rate schedules. Customers whose
           generator has a nameplate capacity of 2 MW or
           greater receive basic partial requirements service
           under Schedule 75. The monthly basic charge and
           energy charges are the same as for full
           requirements customers. The customer contract
           sets baseline demand as well as reserved capacity
           to serve the customer's load when the generator is
           not operating. Reserved capacity is the lesser of
           the nameplate rating of the generator or maximum
      U+   kW of customer load supplied by the generator.
           The customer can self-supply reserves to avoid
           reserve charges or demonstrate instantaneous
           load reduction capability to reduce reserved
           capacity needs. Distribution charges are based on
           the average of the two greatest demands of the
           previous 12 months, but not less than the baseline
           demand. The customer can choose fixed or daily
           pricing for scheduled maintenance. Unscheduled
           energy is priced at an hourly firm market rate index
           (plus a small risk adder). The customer also can
           sign up for Schedule 76R to buy energy from PGE
           to replace some or all of the customer’s on-site
      As part of resource planning process,            Updated IRP requirements were released in 2007.
      CHP is reviewed and incorporated                 OR's current IRP guidelines require the evaluation
      where effective                                  of distributed generation technologies "on par with
                                                 Y+    other supply-side resources," and should consider
                                                       the benefits of DG. IRPs must be filed at least
                                                       every two years from the date of acknowledgment
                                                       of the prior IRP.
                                                       http://apps.puc.state.or.us/orders/2007ords/07-
7.5                                                    PacifiCorp addresses CHP in its 2007 IRP,
                                                  U    including in portfolio studies. CHP is included in
                                                       PacifiCorp's 2007 IRP Preferred Portfolio.
                                              http://www.pacificorp.com/Navigation/Navigation23807.html

                                                     Portland General Electric addresses CHP in its
                                                U+
                                                     2007 IRP, assessing the market potential for CHP
                                                     and ways to improve policies related to CHP.
                              http://www.portlandgeneral.com/about_pge/current_issues/energy_strategy/2007_irp.aspx
                                Natural Gas
e.
                  Utility IRPs must evaluate supply and demand side
             Y+   resources on a consistent and comparable basis.
                  Guidelines updated in 2007 require utilities to
                  include in IRP action plans all best cost/risk
                  IRP has been required since 1989. Updated IRP
                  guidelines were released in 2007. Utilities must
             Y+
                  evaluate all known demand-side resources as part
                  of the planning process.




ctive energy efficiency as a resource
      The Utility System Test and the Societal Cost Test
      are used by the ETO to evaluate programs.
Y+
      http://www.energytrust.org/meetings/board/2008/0
      80213/06b_CostEff.pdf
      Updated IRP guidelines (2007) require utilities to
Y     ensure a potential study is conducted periodically.
      (Utility or Energy Trust may conduct it.)
      http://apps.puc.state.or.us/orders/2007ords/07-
      002.pdf
      Efficiency programs exclude distribution-only
Y-    customers.



      Gas utilities agreed to a Commission-approved
      public purpose charge. Commission IRP policy
      requires utilities to include in their IRP action
      plans all best cost/risk portfolio conservation
      resources for meeting
Y     projected resource needs, specifying annual
      savings targets.




      The Energy Trust proposes annual performance
      benchmarks for the Commission's approval and
      sets long-term energy-savings goals.
Y+




      http://apps.puc.state.or.us/orders/2008ords/08-
      529.pdf
      The utility IRP process and Energy Trust planning
      and budget-setting processes set energy savings
      goals
a,c
        2006 = 2.3 million therms; 2008 = 2.6 million
 2.6
        therms (Energy Trust goals for NW Natural and
million
        Cascade)
       http://www.energytrust.org/library/reports/2006_An
       nual_Report.pdf;
       http://www.energytrust.org/library/reports/2008_An
       Statute requires independent review of the PPC to
       develop recommendations for the legislature. A
       report was released in 2006 that recommended
  Y    developing more consistent M&V procedures for
       PPC funds. M&V is done by the ETO. The ETO
       http://www.puc.state.or.us/PUC/electric_restruc/pu
       rpose/013007PPCModificationsFinal.pdf
  Y    Energy Trust conducts numerous M&V studies

       http://www.energytrust.org/library/reports/db/report_list.php
  Y


  Y



       Most evaluations are conducted by third party
       contractors. The Trust does some assembly and
       cleaning of data sets in-house; contracting that out
  Y    has not been effective. The Trust evaluates some
       pilot programs in-house because small-scale work
       is too expensive to contract out. The Trust also
       does some simple analysis in-house as a check
       on consultant work.

       The Trust's board evaluation committee reviews
  Y
       draft evaluations. The committee includes outside

       Prescriptive measures have “deemed” estimates
       and quality control and assurance to make sure
 a,b
       the correct equipment was installed properly.
       Large complex mechanical projects have a
       commissioning option, where the ETO pays part of
       1999 restructuring act (SB 1149) established the
       Energy Trust of Oregon, a third party non-profit
       entity to deliver energy efficiency programs. The
  Y    ETO delivers programs on behalf of most of
       Oregon's electric utilities. Idaho Power administers
     Energy Trust delivers programs for NW Natural
b    and Cascade Natural Gas. Avista delivers
     programs for its natural gas customers in Oregon.

     New IRPs must be filed within 2 years of
     Commission acknowledgment of an IRP unless
Y
     Commission grants waiver


Y




Y




Y-




     A Conservation Advisory Council advises the
     Energy Trust of Oregon on electric and natural gas
     programs.



Y
ver energy efficiency where cost-effective.
                  Decoupling orders for natural gas utilities included
                  funding of EE programs administered by the
                  Energy Trust of Oregon.




              Y
                 For the largest gas utility, NW Natural, Schedule
             a   301. For Cascade Natural Gas, Schedule No. 31.



             Y


             Y

                 NW Natural - 1.25%; Cascade - 0.75%




st-effective energy efficiency and modify ratemaking
                 NW Natural Gas: The Oregon Public Utility
                 Commission decoupled NW Natural Gas’
                 revenues from sales in 2002 (Order 02-634). At
                 the same time, a public purpose funding
                 mechanism was created that set aside 0.9% of
                 revenues for EE programs (administered by the
            Y+
                 Energy Trust of Oregon) and low-income
                 weatherization, plus a $0.25 per month charge for
                 low-income bill payment assistance. In 2005, the
                 mechanism was modified slightly and extended,
                 along with the public purpose charge, for four
                 more years (Order 05-934).
                 Docket UG-143, Order 02-634, p. 3:
                 http://apps.puc.state.or.us/orders/2002ords/02-
                 634.pdf. Extended in Docket UG-163, Order No.
                 05-934. An evaluation of the mechanism is at:
                 http://www.raponline.org/showpdf.asp?PDF_URL=
                 %22Pubs/General/OregonPaper.pdf%22.
      Cascade Natural Gas: In 2006, the PUC
      decoupled Cascade Natural Gas and established
      a set-aside fund for EE programs to be
      administered by the Energy Trust of Oregon and
      community groups.
      Docket UG-167, Order No. 06-191;
      http://apps.puc.state.or.us/orders/2006ords/06-
      191.pdf.




a,c




N
N
Energy Trust offers incentives for renewable and fossil CHP for Oregon electric IOUs
CHP for Oregon electric IOUs
                                                                            TEXAS
                                                                              Electric
Recommendation 1: Recognize energy efficiency as a high priority energy resource.
         EE is established as a high priority resource,       Legislation passed in 2007 increased Texas'
         equivalent or superior to supply resources           EEPS to 15% of annual growth in demand
                                                          Y   from residential and commercial customers
  1.1                                                         by 2008, and 20% by 2009.
                                                               HB 3693:
                                                          S   http://www.capitol.state.tx.us/tlodocs/80R/bill
                                                              text/html/HB03693F.HTM
         1.2.1 EE is integrated into an active IRP,           Electric utilities must submit annual energy
         portfolio management, or other planning              efficiency plans that show how savings goals
                                                          N
         process                                              will be met.

                                                              See p. 8-9 at
                                                          A   http://www.puc.state.tx.us/rules/subrules/ele
                                                              ctric/25.181/25.181.pdf
  1.2
         1.2.2 Efficiency is procured as a resource           Under Texas Administrative Rules, standard
         for default service/standard offer customers         offer programs must be implemented
                                                          Y
                                                              consistent with the Rules governing EE and
                                                              the EEPS.
                                                              Texas Administrative Rules §25.181:
                                                          A   http://www.puc.state.tx.us/rules/subrules/ele
                                                              ctric/25.181/25.181.pdf
         EE is an alternative to transmission based
         on a long-term transparent IRP or
  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                  Texas utilities code 39.905 establishes
                                                              savings goals and requires utilities to offer
                                                          Y   efficiency incentive programs to meet those
  2.1                                                         goals. Goals were last updated in 2007.

                                                              http://www.capitol.state.tx.us/tlodocs/80R/bill
                                                              text/html/HB03693F.HTM
      The TRC or Societal Cost Test is used to            Rules on the TX Energy Efficiency Goal
      evaluate EE programs                                state that an EE program is deemed to be
                                                          cost-effective if the costs (including
                                                          incentives, M&V, R&D, and administrative
                                                          costs) to the utility are lower than the
                                                      N
                                                          benefits (including the value of the demand
2.2                                                       reductions and energy savings, measured in
                                                          accordance with the avoided costs given in
                                                          the Rules). Thus, the PACT test, not the
                                                          TRC test, is followed.
                                                          Texas Administrative Rules §25.181:
                                                      A   http://www.puc.state.tx.us/rules/subrules/ele
                                                          ctric/25.181/25.181.pdf
      2.3.1 Potential for cost-effective EE has           2007 legislation required the Commission to
      been established through a potential study          fund a potential study by 2009. The PUC
                                                      Y   commissioned a potential study for the
                                                          largest 9 IOUs, which was completed on
                                                          12/23/08.
                                                          HB 3693:
                                                          http://www.capitol.state.tx.us/tlodocs/80R/bill
                                                          text/html/HB03693F.HTM; Potential study:
                                                      S   http://www.puc.state.tx.us/electric/reports/mi
                                                          sc/Electricity_Saving_2009-
                                                          2018_122308.pdf

2.3   2.3.2 Established EE programs reach all             TX Rules require that all customers in
      customer classes                                    residential and commercial classes have
                                                          access to efficiency programs, including low-
                                                          income customers. Industrial customers
                                                          must have access to programs that were
                                                      Y   developed and implemented prior to 5/1/07,
                                                          to the extent that such customers meet the
                                                          criteria for participation in load management
                                                          standard offer programs; in addition, such
                                                          programs must be completed by 12/31/08.
                                                          Texas administrative rules §25.181:
                                                      A   http://www.puc.state.tx.us/rules/subrules/ele
                                                          ctric/25.181/25.181.pdf

      Funding requirements for all long-term, cost-
      effective EE have been established
                                                      N
2.4
      2.5.1 Quantitative MW and MWh savings                2007 legislation required utilities to meet
      goals have been established and are                  10% of their annual load growth in demand
      producing incremental investment.                    of residential and commercial customers
                                                           through EE by 2007; 15% by 2008; and 20%
                                                           by 2009. The Commission set rules related
                                                           to this standard on 4/14/08. The legislation
                                                           also required the Commission to examine
                                                           the potential to increase the goal to 50% of
                                                       Y
                                                           annual load growth. The potential study
                                                           described in 2.3.1 examined whether each
                                                           utility could feasibly achieve 30% of annual
                                                           growth through EE by 2010 and 50% by
                                                           2015. The study concluded that the 50%
                                                           goal may be achievable for some of the
                                                           utilities, but not others.

                                                           HB 3693 (2007):
                                                           http://www.capitol.state.tx.us/tlodocs/80R/bill
                                                       S   text/html/HB03693F.HTM; Commission rules
                                                           (Project 33487), Order 4/14/08

      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        b
      part of program approval and budget-setting
      process; (d) other

2.5
      2.5.3 Energy Efficiency can be used to fulfill       2007 legislation required utilities to meet
      requirements of an RPS or similar standard           10% of their annual load growth in demand
                                                           of residential and commercial customers
                                                           through EE by 2007; 15% by 2008; and 20%
                                                           by 2009. The Commission set rules related
                                                           to this standard on 4/14/08. The legislation
                                                           also required the Commission to examine
                                                           the potential to increase the goal to 50% of
                                                       Y
                                                           annual load growth. The potential study
                                                           described in 2.3.1 examined whether each
                                                           utility could feasibly achieve 30% of annual
                                                           growth through EE by 2010 and 50% by
                                                           2015. The study concluded that the 50%
                                                           goal may be achievable for some of the
                                                           utilities, but not others.

                                                           HB 3693 (2007):
                                                           http://www.capitol.state.tx.us/tlodocs/80R/bill
                                                           text/html/HB03693F.HTM; Commission rules
                                                           (Project 33487), Order 4/14/08

      2.5.4 Expected Capacity Savings 2006
      (Annual MW)
      2.5.5 Energy Savings Goals 2006 (Annual
      MWh or MTherms)

      2.6.1 A robust M&V process has been                   M&V procedures are guided by Texas
      established                                           Administrative Rules. Utilities are
                                                        Y   responsible for conducting M&V according to
                                                            Commission-established methods.

                                                            Texas Administrative Rules §25.181 (o):
                                                        A   http://www.puc.state.tx.us/rules/subrules/ele
                                                            ctric/25.181/25.181.pdf
      2.6.1.1   M&V is adequately funded


      2.6.1.2 Energy savings are used to
                                                        Y
      measure performance

      2.6.1.3 M&V is done according to a                   EE service providers shall not receive final
      defined schedule                                  Y- compensation until the M&V processes are
2.6                                                        complete, according to the Rules.
                                                           Texas Administrative Rules §25.181 (o):
                                                        A http://www.puc.state.tx.us/rules/subrules/ele
                                                           ctric/25.181/25.181.pdf
      2.6.1.4 M&V is conducted by an                       A third party may be used, according to the
      independent party                                    Rules.
                                                        A Texas Administrative Rules §25.181 (o):
      2.6.1.5 Review of M&V is done in a                   http://www.puc.state.tx.us/rules/subrules/ele
      transparent process

      2.6.2 M&V is done using: (a) deemed                   Deemed savings and statistically significant
      savings; (b) actual savings; (c) other                samples may be used, according to the
                                                        a,c
                                                            Rules.

                                                            Texas Administrative Rules §25.181 (o):
                                                        A   http://www.puc.state.tx.us/rules/subrules/ele
                                                            ctric/25.181/25.181.pdf
      2.7.1 EE delivery structure has been                  Texas administrative rules §25.181 establish
      established                                           that utilities will administer efficiency
                                                        Y   programs.

                                                            http://www.puc.state.tx.us/rules/subrules/ele
2.7                                                         ctric/25.181/25.181.pdf
      2.7.2 Delivery is via: (a) utility
      administration; (b) third-party administration;   a
      or (c) government agency

      Resource plans are regularly updated                  Resource plans are not required. The plans
                                                        N   described under 1.2.1 must be updated
                                                            annually.
2.8
  2.8
                                                            Texas Administrative Rules §25.181:
                                                         A  http://www.puc.state.tx.us/rules/subrules/ele
                                                            ctric/25.181/25.181.pdf
        2.9.1 Building Energy Codes for residential         2000 IECC with 2001 supplement is
        buildings are in place and regularly updated        mandatory statewide; many local
                                                        Y/N jurisdictions have adopted a more stringent
                                                            code. The state is authorized to adopt the
                                                            most recent IECC standards, and the most
                                                            recent update was effective in 2005.
                                                            http://bcap-energy.org/node/96


  2.9   2.9.2 Building Energy Codes for                     2000 IECC with 2001 supplement, with
        commercial buildings are in place and               reference to ASHRAE 90.1-2001 is
        regularly updated                                   mandatory statewide; many local
                                                            jurisdictions have adopted a more stringent
                                                        Y/N code. ASHRAE 90.1-2007 is mandatory for
                                                            state-funded buildings. The state is
                                                            authorized to adopt the most recent IECC
                                                            standards, and the most recent update was
                                                            effective in 2005.
                                                            dsireusa.org
        Appliance and Equipment Efficiency
        Standards are in place and regularly             N
 2.10
        updated
        Energy efficiency is a high priority in state        Legislation passed in 2007 that renewed
        buildings and state funded buildings as              2001 legislation, and directed political
        evidenced in capital planning and enabling           subdivisions (including state agencies) to
        performance contracts                                reduce their energy use by 5% annually for
                                                             six years beginning 9/1/07. The legislation
                                                             also requires that state-owned or leased
                                                             buildings must purchase Energy Star
                                                             appliances and equipment, and specified
                                                             other standards for certain equipment. In
                                                         Y
                                                             addition, statute requires government bodies
 2.11                                                        responsible for new and reconstructed state
                                                             buildings (and repair or construction of
                                                             certain systems and equipment) to conduct
                                                             an economic analysis of EE and renewable
                                                             energy options, and if these options are cost-
                                                             effective over the life of the building, they
                                                             must be undertaken.

                                                             SB 12:
                                                             http://www.legis.state.tx.us/tlodocs/80R/billte
Recommendation 3: Miscellaneous Policies                     xt/pdf/SB00012F.pdf; HB 3693:
        3.1.1 Public education programs on EE are
        in place. (See Guide Tab for Y/N criteria.)      Y




  3.1
         3.1.2 Process is in place, such as a state
         or regional collaborative, to pursue EE as a
  3.1    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            CenterPoint Energy, Entergy Texas, Oncor
         program? (who is sponsor)                              Electric Delivery, TXU Energy, Texas New
         75% of state access to Home Performance                Mexico Power Company, AEP Texas,
         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                     TX Rules states that an Energy Efficiency
                                                                Cost Recovery Factor will be included in
                                                            Y   utilities' rates to recover costs of EE, and will
                                                                be tracked annually.

                                                                Texas administrative rules §25.181:
                                                                http://www.puc.state.tx.us/rules/subrules/ele
  4.1                                                           ctric/25.181/25.181.pdf

         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
  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   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        Legislation passed in 2007 required the
      provided                                           Commission to establish incentives to
                                                         reward utilities for exceeding the EEPS
                                                         goals. TX Rules were revised in 2008,
                                                         providing for EE performance bonuses, as
                                                         follows. A utility that exceeds its demand
                                                         reduction goal at a cost that does not exceed
                                                         the cost limits established in the rules, will
                                                         receive a performance bonus based on the
                                                         utility's EE achievements during the previous
                                                         year. The bonus entitles the utility to receive
                                                     Y   a share of the net benefits; a utility that
                                                         exceeds 100% of its demand reduction goal,
                                                         will receive 1% of the net benefits for every
                                                         2% that the demand reduction goal has been
                                                         exceeded, with a maximum of 20% of the
5.2
                                                         utility's program costs. A utility that meets at
                                                         least 120% of its demand reduction goal with
                                                         at least 10% of its savings achieved through
                                                         Hard-to-Reach programs will receive an
                                                         additional bonus of 10% of the bonus
                                                         calculated above.

                                                         HB 3693:
                                                         http://www.capitol.state.tx.us/tlodocs/80R/bill
                                                         text/html/HB03693F.HTM; Texas
                                                    S, A
                                                         administrative rules §25.181:
                                                         http://www.puc.state.tx.us/rules/subrules/ele
                                                         ctric/25.181/25.181.pdf
      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              Residential rates of the largest two utilities
      variable rate designs have been eliminated         are flat rates.


      5.4.1 Time sensitive rates in place

      5.4.2 Usage sensitive rates in place




5.4
         5.4.3 AMI deployment planned                       A number of utilities have AMI pilots or full
                                                            deployment underway. Legislation passed in
                                                            2006 allows the Commission to establish a
                                                            nonbypassable surcharge to cover the cost
                                                        Y+/
                                                            of advanced meter deployment. The cost
                                                         C
                                                            recovery mechanism and guidelines
                                                            regarding meter deployment were approved
  5.4                                                       and established on 5/10/07.

                                                            HB 2129:
                                                            http://www.puc.state.tx.us/rules/rulemake/31
                                                            418/HB02129F.pdf; AMI Rules, Project No.
                                                            31418:
                                                            http://www.puc.state.tx.us/rules/rulemake/31
                                                            418/31418adt.pdf
         5.4.4 Other mechanisms exist (e.g., on-bill
         financing, benefit sharing)

State Fiscal Policy
         Sales Tax reduction or exemption for energy        There was a sales tax holiday on Energy
         efficient products
                                                        Y Star appliances in May 2008 and 2009.
                                                            http://www.ens-
    -                                                       newswire.com/ens/mar2008/2008-03-26-
                                                            095.asp;
                                                            http://www.window.state.tx.us/taxinfo/taxpub
                                                            s/tx96_1331/
         Investment Tax Credit for energy efficient
    -    investments

         State supported low cost financing for             There is a revolving loan fund for EE
         energy efficient investments: buildings (x),       improvements to public buildings called
         equipment (y)                                  Y   LoanStar. As of 11/07, the program had
    -                                                       funded loans totaling more than $240 million
                                                            dollars.
                                                            http://www.seco.cpa.state.tx.us/ls/

Distributed Generation Policies
      A statewide interconnection policy is in place
                                                          The Public Utility Commission of Texas
                                                          (PUCT) first adopted statewide
                                                          interconnection standards with Substantive
                                                          Rules §25.211 and §25.212. The rules apply
                                                          to electrical generating systems up to 10
                                                          MW and connected at a voltage less than 60
                                                          kV. Systems must meet all applicable
                                                          national, state, and local construction and
                                                          safety codes. No pre-interconnection study
7.1                                                    Y+ fees are required for units up to 500 kW and
                                                          study fees are limited for larger systems.
                                                          There are set timeframes for approval or
                                                          rejection (4-6 weeks). There are pre-
                                                          certification provisions allowing for a fast-
                                                          track procedure. An external disconnect is
                                                          required for all systems. There are brief
                                                          standard forms and agreements. No
                                                          additional insurance is required and liability
                                                          insurance is limited. An external disconnect
                                                          is required.
                                                          HB 3693 can be accessed here,
                                                          http://www.capitol.state.tx.us/tlodocs/80R/bill
                                                       S text/pdf/HB03693F.pdf.
      A statewide net metering policy is in place         Texas has limited net metering rules. Under
                                                          PUCT Substantive Rule § 25.242(h), net
                                                          metering only applies to integrated IOUs that
                                                          have not unbundled in accordance to
                                                          PURPA § 39.05 that have QF of 100 kW or
                                                          less that use non-renewable resources and
                                                       Y QF 50 kW or less that use renewable energy
                                                          resources. For eligible facilities, there is no
7.2                                                       limit on overall enrollment of net-metered
                                                          systems. Net excess generation is
                                                          purchased by the utility for a given billing
                                                          period at the avoided-cost rate.

                                                          16 TAC § 25.242(h)(4) can be found here,
                                                          http://info.sos.state.tx.us/pls/pub/readtac$ext
                                                       R
                                                          .ViewTAC?tac_view=5&ti=16&pt=2&ch=25&
                                                          sch=J&div=1&rl=Y
      A statewide exit fee policy is in place             There is a statewide exit fee policy in place
                                                          that does not allow utilities to collect fees
                                                          from DG applications smaller than 10 MW.
                                                          The state's Restructuring Act did allow for
                                                       Y+ utilities to recoup stranded costs from DG
7.3
                                                          systems greater than 10 MW. However, in
                                                          2003, the PUCT decided that utilities have
                                                          already recovered their stranded costs.
      A statewide standby rate policy is in place        Texas does not have a statewide policy on
                                                     N
                                                         standby rates
                                                         TXU Energy Retail Co LP - there is no
                                                         standard standby rate. Customers seeking
                                                         standby service would need to contract with
                                                         the utility to be charged under a regular tariff.
                                                     U
                                                         Typical rates are based on both demand and
                                                         energy charges. There may be a demand
                                                         ratchet depending on the contract with the
7.4
                                                         utility.

                                                         Reliant Energy Retail Services - there is no
                                                         standard standby rate. Customers seeking
                                                         standby service would need to contract with
                                                     U
                                                         the utility to be charged under a regular tariff.
                                                         Typical rates are based on both demand and
                                                         energy charges. There would be no demand
                                                         ratchet.
      As part of resource planning process, CHP
      is reviewed and incorporated where effective        TX does not have an IRP planning process,
                                                          this was deleted with the passage of SB 7 in
                                                          1999. The state does have energy efficiency
                                                          goal requirements. Utilities must submit
                                                          energy efficiency plans outlining how savings
                                                     N
                                                          goals will be met. For standard offer and
                                                          market transformation program
                                                          requirements, regulations state that utilities
7.5                                                       "may permit the use of renewable DSM and
                                                          combined heat and power technologies,
                                                          involving installations of 10 MW or less."
                                                   http://www.puc.state.tx.us/rules/subrules/electric/2
                                                          TXU Energy Retail Co LP's 2006 annual
                                                     U
                                                          report does not mention CHP.
                                                        http://www.txucorp.com/pdf/txu2006ar.pdf
                                                          Reliant Energy Retail Service's Energy &
                                                     U
                                                          Environment policy does not list CHP.
                http://www.reliant.com/PublicLinkAction.do?i_chronicle_id=09017522801502c5&language_code=en_US&
                              Natural Gas
urce.




effective energy efficiency as a resource
deliver energy efficiency where cost-effective.




 cost-effective energy efficiency and modify ratemaking
                                                               UTAH (as of 12/31/08)
                                                                             Electric
Recommendation 1: Recognize energy efficiency as a high priority energy resource.
         EE is established as a high priority resource,       IRP rules require the comparison of supply
         equivalent or superior to supply resources           and demand side resources on a consistent
                                                              and comparable basis. See Feb. 1992 Order
                                                              in Docket 90-235-01.
                                                          Y
  1.1


                                                              http://www.psc.state.ut.us/elec/02orders/Feb
                                                              /98203505ro.htm

         1.2.1 EE is integrated into an active IRP,           Pacificorp (Rocky Mtn Power) must prepare
         portfolio management, or other planning              an IRP that compares supply and demand
         process                                              side resources on a consistent and
                                                              comparable basis. See Feb. 1992 Order in
                                                          Y   Docket 90-235-01.




  1.2
                                                              http://www.psc.state.ut.us/elec/02orders/Feb
                                                              /98203505ro.htm



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


         EE is an alternative to transmission based           The IRP compares all resources across time
         on a long-term transparent IRP or                Y   and accounts for transmission costs/bottle
  1.3    transmission system plan                             necks.

         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                  The Governor issued an Executive Order in
                                                           2006 that called for increasing energy
                                                      Y    efficiency statewide 20% by 2015, for all
2.1                                                        forms of energy use in the state. IRP Rules
                                                           also exist, as described under 1.1 and 1.2.

                                                      EO
      The TRC or Societal Cost Test is used to           DSM programs must meet the TRC and the
      evaluate EE programs                               utility cost tests. Other tests may be
                                                         considered. (from RAP IRP survey). The
                                                      Y+ 1992 rules state that the TRC be used as the
                                                         primary test for determining if DSM
2.2                                                      programs are cost-effective, according to
                                                         SWEEP.
                                                         http://www.raponline.org/showpdf.asp?PDF_
                                                         URL=%22Pubs/IRPsurvey/IRPUT2.pdf%22

      2.3.1 Potential for cost-effective EE has            Pacificorp (Rocky Mountain Power)
      been established through a potential study           commissioned a DSM potential study in
                                                      Y    2007, and the study was the subject of an on-
                                                           going proceeding as of the end of 2008.

                                                           Pacificorp 2007 study:
                                                           http://www.le.utah.gov/UtahCode/getCodeSe
                                                           ction?code=54-7-12.8; also see Docket 08-
2.3
                                                           035-56:
                                                           http://www.psc.utah.gov/utilities/electric/eleci
                                                           ndx/0803556indx.html
      2.3.2 Established EE programs reach all              Pacificorp has programs that reach all
      customer classes                                Y    customer classes.




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

      2.5.1 Quantitative MW and MWh savings                IRPs establish savings goals. The Utah
      goals have been established and are                  Energy Efficiency Strategy, written in 10/07
      producing incremental investment.                    in response to the Governor's 2006 goal of
                                                           increasing EE 20% by 2015, recommends
                                                      Y    Utah adopt energy savings standards or
                                                           targets for electric DSM programs.



                                                           Utah Energy Efficiency Strategy:
                                                           http://energy.utah.gov/energy/utah_energy_e
                                                           fficiency_strategy.html




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         a
      part of program approval and budget-setting
      process; (d) other
2.5
      2.5.3 Energy Efficiency can be used to fulfill          The Utah Energy Efficiency Strategy, written
      requirements of an RPS or similar standard              in 10/07 in response to the Governor's 2006
                                                              goal of increasing EE 20% by 2015,
                                                        N     recommends Utah adopt energy savings
                                                              standards or targets for electric DSM
                                                              programs.

                                                              Utah Energy Efficiency Strategy:
                                                              http://energy.utah.gov/energy/utah_energy_e
                                                              fficiency_strategy.html
      2.5.4 Expected Capacity Savings 2006                    About 100 MW peak reduction in 2008 or
      (Annual MW)                                             2009.

      2.5.5 Energy Savings Goals 2006 (Annual                 Rocky Mountain Power: 120 GWh per year
      MWh or MTherms)                                         from measures installed in 2006

      2.6.1 A robust M&V process has been
      established




      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
                                                        N
      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, b
       2.7.1 EE delivery structure has been                   Utilities are required to file IRPs and
       established                                            undertake DSM programs.
                                                          Y


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                   Utilities file biennial IRPs.

                                                          Y
2.8


       2.9.1 Building Energy Codes for residential           2006 IECC mandatory statewide; code
       buildings are in place and regularly updated          changes ongoing. The most recent update
                                                             was in 2007. The Utah Energy Efficiency
                                                             Strategy, written in 10/07 in response to the
                                                         Y/Y Governor's 2006 goal of increasing EE 20%
                                                             by 2015, recommends Utah upgrade
                                                             building energy codes every three years, and
                                                             provide funding for training and enforcement.

                                                             http://bcap-
                                                             energy.org/state_status.php?state_ab=UT;
                                                             Utah Energy Efficiency Strategy:
       2.9.2 Building Energy Codes for                       2006 IECC mandatory statewide; code
2.9    commercial buildings are in place and                 changes ongoing. The most recent update
       regularly updated                                     was in 2007. The Utah Energy Efficiency
                                                             Strategy, written in 10/07 in response to the
                                                         Y/Y Governor's 2006 goal of increasing EE 20%
                                                             by 2015, recommends Utah upgrade
                                                             building energy codes every three years, and
                                                             provide funding for training and enforcement.

                                                              http://bcap-
                                                              energy.org/state_status.php?state_ab=UT;
                                                              Utah Energy Efficiency Strategy:
                                                              http://energy.utah.gov/energy/utah_energy_e
                                                              fficiency_strategy.html
       Appliance and Equipment Efficiency                     The Utah Energy Efficiency Strategy, written
       Standards are in place and regularly                   in 10/07 in response to the Governor's 2006
       updated                                                goal of increasing EE 20% by 2015,
                                                         N    recommends Utah adopt appliance
2.10                                                          efficiency standards for products not covered
                                                              by federal standards.
                                                              Utah Energy Efficiency Strategy:
                                                              http://energy.utah.gov/energy/utah_energy_e
                                                              fficiency_strategy.html
         Energy efficiency is a high priority in state       A 2006 statute established the State Building
         buildings and state funded buildings as             Energy Efficiency Program, which requires
         evidenced in capital planning and enabling          the Division of Facilities Construction and
         performance contracts                               Management to develop guidelines,
                                                             incentives, and procedures for EE and
                                                             reduction of energy costs in state buildings,
                                                             and to assist state entities in implementing
                                                             the procedures. A subsequent statute in
                                                             2008 establishes a revolving loan fund for
                                                             state agencies to finance EE measures. Salt
                                                             Lake City has established a requirement that
                                                         Y
                                                             all city-owned building projects greater than
  2.11                                                       10,000 square feet, as well as major
                                                             renovations of city buildings and private
                                                             buildings that receive city funds, must be
                                                             LEED certified at the Silver Level. The Utah
                                                             Energy Efficiency Strategy, written in 10/07
                                                             in response to the Governor's 2006 goal of
                                                             increasing EE 20% by 2015, recommends
                                                             Utah adopt energy savings requirements for
                                                             state agencies, in order to reduce energy
                                                             use per unit of floor area by 20% by 2015.
                                                             HB 80 (2006):
                                                         S
                                                             http://www.le.state.ut.us/~2006/bills/hbillenr/
Recommendation 3: Miscellaneous Policies                     hb0080.pdf; also see HB 198 (2008) and
         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
                                                         Y
         high-priority resource. (See Guide Tab for
  3.1    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
  3.2    Homes
         What proportion is due to regulated utility         Rocky Mountain Power, Questar Gas
         program? (who is sponsor) Performance
         75% of state access to Home
         with ENERGY STAR?
         What proportion is ue to regulated utility
                                                         N
         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                      Funding for EE programs is provided by a
                                                                 tariff rider on customer bills. Legislation
                                                                 passed in 2002 allowed for a tariff rider. An
                                                             Y   Order and settlement agreement in 2003
                                                                 established the details of the tariff rider for
                                                                 Rocky Mountain Power.

                                                                 Utah Code 54-7-12.8:
                                                                 http://www.le.utah.gov/UtahCode/getCodeSe
  4.1                                                            ction?code=54-7-12.8; Docket 02-035-T12,
                                                            S, R
                                                                 Order 10/3/03:
                                                                 http://www.psc.state.ut.us/utilities/electric/03
                                                                 orders/Oct/02035T12roc.htm
         4.1.2 Recovery occurs via: (a) rider; (b)
         regular rate case; or (c) system benefits           a
         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                   The Utah Energy Efficiency Strategy, written
         addressed and disincentives are removed                 in 10/07 in response to the Governor's 2006
                                                                 goal of increasing EE 20% by 2015,
                                                                 recommends Utah adopt decoupling or
                                                             N   shareholder incentives.




  5.1
                                                                 Utah Energy Efficiency Strategy:
                                                                 http://energy.utah.gov/energy/utah_energy_e
                                                                 fficiency_strategy.html

         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       The Utah Energy Efficiency Strategy, written
         provided                                          in 10/07 in response to the Governor's 2006
                                                           goal of increasing EE 20% by 2015,
                                                       N
                                                           recommends Utah adopt decoupling or
                                                           shareholder incentives.
  5.2                                                      Utah Energy Efficiency Strategy:
                                                           http://energy.utah.gov/energy/utah_energy_e
                                                           fficiency_strategy.html
         5.2.2 Incentives exceed amount of lost
         revenues

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

   5.3   5.3.2 Declining block rates and fixed             The residential tariffs of the two largest
         variable rate designs have been eliminated    Y   utilities do not have declining block rates.


         5.4.1 Time sensitive rates in place               In 2/07, the Commission decided not to
                                                           adopt PURPA standard 14 regarding time-
                                                           based metering and communications.
                                                           However, Rocky Mountain Power offers
                                                           TOU rates, seasonal rates, and a peak-load
                                                           reduction program. The Utah Energy
                                                       Y
                                                           Efficiency Strategy, written in 10/07 in
                                                           response to the Governor's 2006 goal of
                                                           increasing EE 20% by 2015, recommends
                                                           Utah adopt real-time pricing or critical peak
                                                           pricing for certain residential customers.
  5.4                                                      Utah Energy Efficiency Strategy:
                                                           http://energy.utah.gov/energy/utah_energy_e
                                                           fficiency_strategy.html
         5.4.2 Usage sensitive rates in place          Y

         5.4.3 AMI deployment planned                      In 2/07, the Commission decided not to
                                                       N   adopt PURPA standard 14 regarding time-
                                                           based metering and communications.

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

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

         Investment Tax Credit for energy efficient
    -    investments
         State supported low cost financing for
         energy efficient investments: buildings (x),
         equipment (y)
    -
         New or reorganized energy policy agency          Y


Distributed Generation Policies
         A statewide interconnection policy is in place      Utah has interconnection guidelines outlined
                                                             in their net metering law -Utah Code § 54-15-
                                                             1-1 et seq. Utah requires the state's only
                                                             investor-owned utility, Rocky Mountain
                                                             Power (RMP), and most electric
                                                             cooperatives to offer net metering to
                                                             customers who generate electricity using
                                                             solar energy, wind energy, hydropower,
                                                             hydrogen, biomass, landfill gas or
                                                             geothermal energy. Net metering is available
                                                             for residential systems up to 25 kilowatts
                                                          Y- (kW) in capacity and non-residential systems
                                                             up to two megawatts (MW) in capacity. Net-
   7.1                                                       metered customers must comply with local
                                                             and national standards established by the
                                                             National Electrical Code (NEC), National
                                                             Electrical Safety Code (NESC), Institute of
                                                             Electrical and Electronic Engineers (IEEE),
                                                             and Underwriters Laboratories (UL). Utilities
                                                             may enforce additional requirements -- if
                                                             approved by the Utah Public Service
                                                             Commission (PSC) or an electric
                                                             cooperative's board of directors. An external
                                                             Utah Code § 54-15-1-1 et seq can be
                                                          A accessed here:
                                                             http://le.utah.gov/~code/TITLE54/54_15.htm

         A statewide net metering policy is in place         Utah has a net metering policy -Utah Code §
                                                             54-15-1-1 et seq. that applies to all IOUs and
                                                             cooperative utilities. Eligible systems are
                                                             fuel cells, solar, wind and hydropower
                                                             systems up to 25 kW. Net metering is also
                                                             limited to 0.1% of the cumulative generating
                                                          Y- capacity of each utility's peak demand in
                                                             2001. NEG must be credited at a rate equal
   7.2                                                       to the utility's avoided cost or higher. NEG is
                                                             carried over to the customer's next bill and is
                                                             granted to the utility at the end of a calendar
                                                             year.

                                                              Utah Code § 54-15-1-1 et seq. can be
                                                              accessed here,
                                                          A
                                                              http://le.utah.gov/~code/TITLE54/54_11.htm
      A statewide exit fee policy is in place         N
7.3
      A statewide standby rate policy is in place         Utah does not have a statewide policy on
                                                      N
                                                          standby rates
                                                          PacifiCorp - Schedule 31 - standby power is
                                                          provided through a contract with the utility
                                                          that is not to exceed 10 MW. A moderate
                                                          customer charge and demand based
                                                          reservation charge is assessed every month.
                                                          Actual usage is billed through moderate
7.4
                                                     U-   energy and high demand charges based on
                                                          the maximum 15 minute demand of the
                                                          month. There is a very high penalty for
                                                          exceeding the contract demand. Rate
                                                          available at:
                                                          http://www.rockymtnpower.net/Article/Article
                                                          2599.html

      As part of resource planning process, CHP           Utah Docket 90-2035-01 established IRP
      is reviewed and incorporated where effective        requirements in 1992 (only Pacificorp is
                                                          required to binennially file an IRP), stating
                                                          that supply and demand side resources must
                                                          be considered on a consistent basis. The
                                                          IRP does not mention CHP.

                                                      N

7.5




                                                           http://www.airquality.utah.gov/Public-

                                                     U+ Pacificorp: Rocky Mountain Power's 2008
                                                           IRP assesses CHP in its planning process.
                                                     http://www.pacificorp.com/Navigation/Navigation2
 08)
                                 Natural Gas
urce.
                 A 1994 Order on Standards and Guidelines
                 established IRP guidelines for natural gas that
                 required an evaluation of supply-side and demand-
                 side resources on a consistent and comparable
             Y
                 basis. In 2008, a new proceeding was initiated to
                 consider revisions to these guidelines; the Docket
                 was still in process as of the end of 2008.

                 Docket No. 08-057-02 (2008):
             R   http://www.psc.utah.gov/utilities/gas/gasindx/docu
                 ments/0805702ROosagfqgc.pdf
                 A 1994 Order on Standards and Guidelines
                 established IRP guidelines for natural gas that
                 required an evaluation of supply-side and demand-
                 side resources on a consistent and comparable
             Y   basis. In 2008, a new proceeding was initiated to
                 consider revisions to these guidelines; the Docket
                 was still in process as of the end of 2008.


                 Docket 91-057-09, Order 9/26/94; Docket No. 08-
                 057-02 (2008):
             R
                 http://www.psc.utah.gov/utilities/gas/gasindx/docu
                 ments/0805702ROosagfqgc.pdf




effective energy efficiency as a resource
     The Governor issued an Executive Order in 2006
     that called for increasing energy efficiency
Y    statewide 20% by 2015, for all forms of energy use
     in the state. IRP Rules also exist, as described
     under 1.1 and 1.2.

EO
     A 1994 Order on Standards and Guidelines that
     established IRP guidelines for natural gas states
     that supply-side and demand-side resources
Y    should be compared on a total resource cost
     basis.


     Docket 91-057-09, Order 9/26/94




     Established EE programs are only available to
N    residential and small commercial GS rate classes.




N



     Questar's IRP incorporates savings goals. The
     Utah Energy Efficiency Strategy, written in 10/07 in
     response to the Governor's 2006 goal of
     increasing EE 20% by 2015, recommends Utah
Y    expand natural gas DSM programs and establish
     energy savings targets for these programs in order
     to cut gas sales 5% by 2015 and almost 9% by
     2020.
     Utah Energy Efficiency Strategy:
     http://energy.utah.gov/energy/utah_energy_efficien
     cy_strategy.html
a



    The Utah Energy Efficiency Strategy, written in
    10/07 in response to the Governor's 2006 goal of
    increasing EE 20% by 2015, recommends Utah
N   expand natural gas DSM programs and establish
    energy savings targets for these programs in order
    to cut gas sales 5% by 2015 and almost 9% by
    2020.
    Utah Energy Efficiency Strategy:
    http://energy.utah.gov/energy/utah_energy_efficien
    cy_strategy.html




    A DSM Evaluation Plan was approved for the
    three-year Questar Gas DSM pilot program in
Y   11/07.

    Docket 07-057-05, Order on 11/20/07:
    http://www.psc.utah.gov/utilities/gas/gasindx/0705
    705indx.html
    DSM balancing account will cover these costs.


    Once the impact evaluation is completed this will
N
    be the case.


Y


Y




    This will change in the future.
a
    Utilities are required to file IRPs and undertake
    DSM programs.
Y




a


    Utilities are required to file biennial IRPs in the
    1994 Order on Standards and Guidelines that
Y   established IRP guidelines for natural gas.


    Docket 91-057-09, Order 9/26/94
             Y




deliver energy efficiency where cost-effective.
                Cost recovery occurs in rate cases.


           Y




           b




cost-effective energy efficiency and modify ratemaking
                A 2006 Utah PSC decision approved a stipulated
                settlement with Questar, creating a three-year pilot
                DSM program accompanied by a rate mechanism
                that separates recovery of fixed costs from sales
           Y-   (Conservation Enabling Tariff or CET).The
                decoupling mechanism will be reviewed and
                subject to change during the three year-long Pilot
                Program. Questar Gas committed to implement
                DSM programs as part of the settlement.

                Utah Public Service Commission DOCKET NO. 05-
                057-T01, Order of 10/5/06. See
                http://www.psc.utah.gov/utilities/gas/06orders/Oct/
                05057t01oass.pdf

           b
Y



Y




Y
                                                                      WASHINGTON
                                                                               Electric
Recommendation 1: Recognize energy efficiency as a high priority energy resource.
         EE is established as a high priority resource,        Initiative 937, passed by voters in 2006,
         equivalent or superior to supply resources            amends Title 19 RCW to require utilities to
                                                               pursue all cost-effective conservation.
                                                          Y+
  1.1

                                                             http://apps.leg.wa.gov/RCW/default.aspx?cit
                                                          S
                                                             e=19.285
         1.2.1 EE is integrated into an active IRP,          Washington Administrative Code 480-100-
         portfolio management, or other planning             238 requires electric utilities to file IRPs and
         process                                             establishes IRP requirements. IRPs must
                                                             include an assessment of commercially
                                                          Y+ available DSM.




                                                          S    http://apps.leg.wa.gov/RCW/default.aspx?cit
  1.2                                                          IRP rules are available at WAC 480-100-
                                                               238. See
                                                          A
                                                               http://apps.leg.wa.gov/WAC/default.aspx?cit
                                                               e=480-100-238
                                                               http://www.wutc.wa.gov/rms2.nsf/208e3d50f
                                                               ad2b39d88256a77006f9105/e091202136c2
                                                               9a8b88256feb0061419c!OpenDocument

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


         EE is an alternative to transmission based            Cost of transmission must be considered
         on a long-term transparent IRP or                Y    when evaluating EE.
  1.3    transmission system plan
                                                               WAC 480-100-238(3)(d)
         1.4.1 EE is a biddable commodity                      WAC 480-107-015 establishes the RFP
                                                               process utilities must use and states that any
                                                               provider of energy savings may submit bids
                                                          N
                                                               in this process (effective 4/28/06). But no
                                                               bidding occurs for a forward capacity
  1.4                                                          market.
                                                               http://apps.leg.wa.gov/WAC/default.aspx?cit
         1.4.2 Bids occur in the following markets:
         (a) energy, (b) capacity, or (c) other


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

Recommendation 2: Make a strong, long-term commitment to implement cost-effective energy efficiency
        Efficiency commitment is in statute                RCW 19.285.040: Each qualifying utility shall
                                                           pursue all available conservation that is cost-
                                                        Y+ effective, reliable, and feasible (approved
  2.1                                                      November 2006).
                                                             http://apps.leg.wa.gov/RCW/default.aspx?cit
                                                             e=19.285.040
                                                             Avista Corp. staff memo UG-090052
        The TRC or Societal Cost Test is used to        Y
  2.2   evaluate EE programs
                                                             http://www.wutc.wa.gov/rms2.nsf/177d98baa
                                                             5918c7388256a550064a61e/f3bda44463ed
        2.3.1 Potential for cost-effective EE has            Initiative 937 requires each utility to conduct
        been established through a potential study           an assessment of cost-effective energy
                                                             efficiency potential through 2019, beginning
                                                             in 2010 and updated every 2 years
                                                        Y
                                                             thereafter. Assessments are based on the
                                                             methodologies established by the Northwest
                                                             Power and Conservation Planning Council.


                                                             RCW 19.285.040 "Energy Conservation and
                                                             Renewable Energy Targets" is available at
                                                             http://apps.leg.wa.gov/RCW/default.aspx?cit
                                                             e=19.285.040.
  2.3
        2.3.2 Established EE programs reach all              UE-082180 PacifiCorp Low Income DSM
        customer classes                                     Program increases


                                                        Y




                                                             http://www.wutc.wa.gov/rms2.nsf/177d98baa
                                                             5918c7388256a550064a61e/45814298f39f9
                                                             390882575190060833a!OpenDocument


        Funding requirements for all long-term, cost-        Funding requirements are developed on a
        effective EE have been established                   utility-by-utility basis.
                                                        N
  2.4
      2.5.1 Quantitative MW and MWh savings                 IRP and utility requests for energy efficiency
      goals have been established and are                   tariff riders include targets. Beginning in
      producing incremental investment.                     2010, utilities will be required to establish
                                                            biennial acquisition targets, based on each
                                                            utility's cost-effective potential. "At a
                                                            minimum, each biennial target must be no
                                                            lower than the qualifying utility's pro rata
                                                        Y   share for that two-year period of its cost-
                                                            effective conservation potential for the
                                                            subsequent ten-year period," according to
                                                            RCW 19.285.040. See also WAC 480-109




                                                            http://www.secstate.wa.gov/elections/initiativ
                                                            es/text/I937.pdf;
                                                            http://apps.leg.wa.gov/RCW/default.aspx?cit
                                                            e=19.285.040; Seattle City Light 2008 IRP
                                                            see Table 7-1, available at
                                                            http://www.seattle.gov/light/news/issues/irp/d
                                                            ocs/2008IRPfinal.pdf.
2.5




      2.5.2 Goals are established: (a) connection           RCW 19.285.040 gives the commission
      with IRP or other planning process; (b) as            permission to review and approve investor-
      part of an EEPS or similar system; (c) as        a, c owned utility conservation targets through its
      part of program approval and budget-setting           standard processes.
      process; (d) other
                                                            http://apps.leg.wa.gov/RCW/default.aspx?cit
      2.5.3 Energy Efficiency can be used to fulfill        RCW 19.285.040 requires utilities to pursue
      requirements of an RPS or similar standard            all cost effective energy efficiency and
                                                        N   establishes an RPS of 15% renewables by
                                                            2020. Energy efficiency is not eligible in the
                                                            RPS.
                                                            http://apps.leg.wa.gov/RCW/default.aspx?cit
      2.5.4 Expected Capacity Savings 2006
      (Annual MW)

      2.5.5 Energy Savings Goals 2006 (Annual
      MWh or MTherms)

      2.6.1 A robust M&V process has been                   Utility-by-utility.
      established
                                                        N
      2.6.1.1   M&V is adequately funded                N     Utility-by-utility.


      2.6.1.2 Energy savings are used to                      UE-060266 Puget Conservation Incentive
      measure performance                                     Program. UE-060266 (2006) initiated a 3
                                                        Y     year pilot performance incentive program by
                                                              which financial incentives are set to MW
                                                              savings targets.
                                                              http://wutc.wa.gov/rms2.nsf/vw2005OpenDo
2.6   2.6.1.3 M&V is done according to a
                                                        N
      defined schedule

      2.6.1.4 M&V is conducted by an                          Utility-by-utility.
                                                        N
      independent party

      2.6.1.5 Review of M&V is done in a                      Puget Sound Energy required by settlement
                                                        N
      transparent process                                     to share EE processes including M&V

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



      2.7.1 EE delivery structure has been                    Customers are served by a variety of utilities
      established                                             and programs through public and private
                                                        Y     utilities and advanced by strong regional
                                                              organizations.

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                    Least-cost plans are filed every two years.
                                                        Y
2.8

      2.9.1 Building Energy Codes for residential           Mandatory state code exceeds 2006 IECC.
      buildings are in place and regularly updated      Y/Y Code is reviewed every three years.

                                                              http://bcap-
                                                              energy.org/state_status.php?state_ab=WA

      2.9.2 Building Energy Codes for                         State-adopted code exceeds 2004 ASHRAE.
2.9   commercial buildings are in place and                   Code is reviewed every three years.
      regularly updated
                                                        Y/Y



                                                              http://bcap-
                                                              energy.org/state_status.php?state_ab=WA
        Appliance and Equipment Efficiency                  Washington adopted appliance efficiency
        Standards are in place and regularly            Y   standards through legislation in 2005.
        updated
 2.10                                                       See RCW § 19.260.010, et seq., available at
                                                            http://apps.leg.wa.gov/RCW/default.aspx?cit
                                                            e=19.260

        Energy efficiency is a high priority in state       Executive order 05-01 (1/5/05) requires a
        buildings and state funded buildings as             reduction in state agency energy use by 10%
        evidenced in capital planning and enabling          by Sept. 1, 2009 using FY 2003 baseline,
        performance contracts                               and also major state construction projects
                                                            (over 25,000 sq ft) to be designed and built
                                                            according to LEED Silver standards. WA
                                                            Statute (RCW 39.35D) requires that all
                                                        Y   major facility projects of public agencies
                                                            receiving any funding in a state capital
 2.11                                                       budget must be designed, constructed, and
                                                            certified to at least the LEED-Silver standard
                                                            and must include building commissioning as
                                                            a component of the design process.

                                                            http://www.governor.wa.gov/actions/orders/e
                                                            oarchive/eo05-01.htm
                                                            http://apps.leg.wa.gov/RCW/default.aspx?cit
                                                            e=39.35D.030
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
         3.1.2 Process is in place, such as a state         Washington is a member of the regional
         or regional collaborative, to pursue EE as a       energy planning organization, the Northwest
         high-priority resource. (See Guide Tab for         Power and Conservation Council, which
         Y/N criteria.)                                     actively supports energy efficiency as the
                                                            least cost, most readily available energy
                                                            resource for meeting load growth.
                                                            Washington customers are also reached by
                                                            the energy efficiency programs of the
                                                            Northwest Energy Efficiency Alliance and the
                                                            Bonneville Power Authority. In April 2008,
                                                            Pacific Power, the Northwest Power and
                                                            Conservation Council and the Bonneville
                                                            Power Administration announced a regional
  3.1                                                   Y   effort to improve ee. The effort will be lead
                                                            by a volunteer organization of regional
                                                            leaders of electric utilities, businesses,
                                                            government, NGOs and energy efficiency
                                                            organizations. Information about the task
                                                            force is available at:
                                                            http://eastsidebusinessjournal.com/Wine/ind
                                                            ex.php?option=com_content&task=view&id=
                                                            1571&Itemid=2; see the current Fifth
                                                            Northwest Power Plan (2004), available at
                                                            http://www.nwcouncil.org/energy/default.htm.



         Do not delete this row.

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

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         Do not delete this row.

         75% of state access to ENERGY STAR New
                                                        Y
         Homes
  3.2    What proportion is due to regulated utility        Puget Sound Energy; Avista; PacifiCorp
         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                 RCW 80.28.303 allows the Commission to
                                                            approve tariffs to recover utility conservation
                                                            expenses. Initiative Measure No. 937
                                                        Y
                                                            authorizes utilities to recover from its
                                                            customers all costs prudently incurred to
                                                            comply with the measure.
                                                                 RCW 80.28.303 is available at
                                                                 http://apps.leg.wa.gov/RCW/default.aspx?cit
                                                                 e=80.28.303; see commission website at
                                                                 http://www.wutc.wa.gov/webimage.nsf/8d712
                                                                 cfdd4796c8888256aaa007e94b4/0b2e39343
                                                                 c0be04a88256a3b007449fe!OpenDocument
                                                                 .
         4.1.2 Recovery occurs via: (a) rider; (b)               Investor owned utilities regulated by the
         regular rate case; or (c) system benefits               commission recover costs through tariff
  4.1    charge                                                  riders. Since 2000, Pacific Power has used a
                                                                 System Benefits Charge (SBC) to fund their
                                                            a, c conservation programs in Washington; Since
                                                                 1997, Puget Sound Energy has included a
                                                                 surcharge for energy efficiency on customer
                                                                 bills.
                                                                 RCW 80.28.303 is available at
                                                                 http://apps.leg.wa.gov/RCW/default.aspx?cit
                                                                 e=80.28.303; see commission website at
                                                                 http://www.wutc.wa.gov/webimage.nsf/8d712
                                                                 cfdd4796c8888256aaa007e94b4/0b2e39343
                                                                 c0be04a88256a3b007449fe!OpenDocument
                                                                 .
         4.1.3 Funding is for multi-year periods             N

         A base energy efficiency spending level             N
  4.2    exists, with opportunity to justify higher level
         % of net (retail) utility revenue presently             Energy efficiency program spending in 2006
         used for energy efficiency [no unit = %; m/k            was $113.3 million, 2.2% of total utility
         = mils/kWh]                                        2.2% revenues statewide, according to ACEEE.
  4.3
                                                                 EE IOU Program Spending in 2008 was $69
                                                                 million, 2.6% of IOU electric revenue.
         Funds from carbon trading program support           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

         5.1.2 Method used is: (a) decoupling; (b)               Note that on July 14, 2006 the commission
         lost revenue recovery; or (c) non-utility               rejected a proposal by Pacific Power & Light
         implementation of EE                                    for cost adjustment/decoupling on the basis
                                                                 that the proposal was weak, but the
                                                                 commission came out in support of cost
                                                                 adjustment mechanisms generally.
  5.1
  5.1
                                                                See Docket #050684 Order #4 available at
                                                                http://www.wutc.wa.gov/rms2.nsf/vw2005Op
                                                                enDocket/482BB934770E106F88257153005
                                                                84C2B




         5.2.1 Utility/shareholder EE incentives are       UE-060266 Puget Conservation Incentive
         provided                                          Program. Docket 060266 (2006) established
                                                           a 3 year pilot for a performance incentive
                                                           program, to run Jan 2007 - Dec 2009. The
                                                        Y+ mechanism provides an incentive for all
                                                           MWh saved if the target is achieved and
  5.2                                                      incentives for higher levels of performance
                                                           based on the incremental savings above the
                                                           target.
                                                           http://wutc.wa.gov/rms2.nsf/vw2005OpenDo
         5.2.2 Incentives exceed amount of lost
         revenues

         5.3.1 Impact on EE is a consideration when             It is a consideration on a case by case basis
                                                            Y
         designing retail rates                                 through the cost recovery process.

   5.3   5.3.2 Declining block rates and fixed                  Of Washington's two largest utilities, one has
         variable rate designs have been eliminated             inclining rates, one has flat rates.


         5.4.1 Time sensitive rates in place                N   Some utilities offer time-of-use rates,

         5.4.2 Usage sensitive rates in place               Y

  5.4    5.4.3 AMI deployment planned                       N

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

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

         Investment Tax Credit for energy efficient     Y
    -    investments

         State supported low cost financing for         Y
         energy efficient investments: buildings (x),
         equipment (y)
    -
         New or reorganized energy policy agency
Distributed Generation Policies
         A statewide interconnection policy is in place      WA adopted new interconnection standards
                                                             in September 2007, which apply to all DG
                                                             systems up to 20 MW. There are two levels
                                                             of interconnection, one for systems up to
                                                             300 kW in size, and the other for systems
                                                             greater than 300 kW but not greater than 20
                                                             MW (FERC interconnection stds were
                                                             adopted for larger systems) . There is no
                                                          Y+
                                                             standard interconnection agreement, but
                                                             each utility is required to have one. An
   7.1
                                                             external disconnect is required, but this may
                                                             be waived at the utility's discretion. Utilities
                                                             may only require additional insurance for
                                                             systems eligible for net metering. There are
                                                             set interconnection application fees.

                                                              Amended Chapter 480-108 WAC can be
                                                             accessed from here,
                                                          A
                                                             http://www.wutc.wa.gov/webimage.nsf/0/511
                                                             22508732C88F08825718D007AB322
         A statewide net metering policy is in place         WA net metering law applies to systems up
                                                             to 100 kW in capacity that generate
                                                             electricity using solar, wind, hydro, biogas
                                                             from animal waste, or CHP technologies.
                                                             The law was first enacted with Rev. Code
                                                             Wash. § 80.60 and then recently revised
                                                             with Substitute HB 2352 of 2006. All
                                                             customer classes are eligible and all utilities
                                                             must offer net metering. Net metering is
                                                          Y+
                                                             available until the cumulative generating
                                                             capacity of net metered systems equals
                                                             0.25% of a utility's peak demand during
   7.2                                                       1996. The limit will increase to 0.5% on
                                                             January 1, 2014. NEG is credited to the
                                                             customer's next bill at the utility's retail rate.
                                                             However, on April 30 of each calendar year
                                                             any NEG remaining is granted to the utility.

                                                               Rev. Code Wash. § 80.60 can be accessed
                                                               here,
                                                               http://www.dsireusa.org/documents/Incentive
                                                          S    s/WA01R.htm and HB 2352 can be found
                                                               here,
                                                               http://www.dsireusa.org/documents/Incentive
                                                               s/WA01Rb.pdf
      A statewide exit fee policy is in place
                                                        WA does not have a statewide policy on exit
                                                        fees, but. DG unit owners are typically not
                                                        charged an exit fee. However, many of the
                                                    N
7.3                                                     large industrial DG owners have their own
                                                        special contracts with the utility and in the
                                                        contract terms the DG owner may be
                                                        charged some sort of fee.

      A statewide standby rate policy is in place       Washington does not have a statewide
                                                    N
                                                        policy on standby rates

                                                           PacifiCorp - Schedule 47 T - standby service
                                                           is provided through a contract with the utility.
                                                           A high customer charge and moderate
                                                           reservation charge is assessed every month
                                                           based on contract demand. Actual usage is
                                                       -
                                                     U based on moderate energy charges and a
                                                           high demand charge based on the maximum
                                                           15 minute demand of the month. There is a
                                                           high penalty for exceeding the contract
                                                           demand. Rate available at:
7.4                                                        http://www.rockymtnpower.net/New_Auto_In
                                                           dex/New_Auto_Index2564.html
                                                           Puget Sound Energy Inc - Schedule 458 -
                                                           standby delivery service is provided through
                                                           a contract with the utility. A customer charge
                                                           and a moderate demand based charge is
                                                           assessed every month. The demand charge
                                                           is based on the maximum demand of the
                                                      U
                                                           month. Actual usage would consist of
                                                           energy charges that must be contracted for
                                                           through a separate provider. Rate available
                                                           at:
                                                           http://www.pse.com/InsidePSE/RatesElecTa
                                                           riffsRules.aspx
      As part of resource planning process, CHP            Chapter 48-100-238 WAC establishes basic
      is reviewed and incorporated where effective         IRP requirements for IOUs. The
                                                           requirements state that utilities must "assess
                                                      N commercially available conservation" and "a
                                                           wide range of conventional and
                                                           commercially available unconventional
                                                           generating technologies."
7.5
                                                   http://apps.leg.wa.gov/WAC/default.aspx?cite=480-
                                                           PacifiCorp's IRP assesses the potential for
                                                     U+
                                                           CHP where effective
                                                    http://wutc.wa.gov/webimage.nsf/00000000000000
                                                           Puget Sound Energy Inc's IRP addresses
                                                     U+
                                                           CHP
                                    http://www.pse.com/energyEnvironment/energysupply/Pages/pse2007irpView.aspx
                              Natural Gas
urce.
             Washington Administrative Code 480-100-238
             requires electric utilities to file IRPs and
             establishes IRP requirements. IRPs must include
             an assessment of commercially available DSM.




             WAC 480-90-238 requires integrated resource
             planning for gas utilities to determine the least-
             cost mix of supply and demand side resources.

        Y+




             IRP rules for gas utilities are here.
             http://apps.leg.wa.gov/WAC/default.aspx?cite=480-
        A
             90-238
ffective energy efficiency as a resource

            N




                 Avista Corp. staff memo UG-090052
             Y

                 http://www.wutc.wa.gov/rms2.nsf/177d98baa5918
                 c7388256a550064a61e/f3bda44463ed617a88257
                 WAC 480-90-238 (3)(b) requires integrated
                 resource planning for gas utilities to assess
                 conservation potential.
             Y




                 Cascade Natural Gas 2008-2010 Conservation
                 and Low-income Weatherization Plan includes
                 detailed description of low-income programs and
                 goals, available at
             Y   http://wutc.wa.gov/rms2.nsf/177d98baa5918c7388
                 256a550064a61e/6c09629d4be2f5ce882572d500
                 60bae5!OpenDocument




                 Funding requirements are developed on a utility-by-
                 utility basis.
            N
     As required by Docket No. UG-060256, Cascade
     Natural Gas 2008-2010 Conservation and Low-
     income Weatherization Plan includes description
     of low-income programs and goals: 2008 Targeted
     Annual therm savings range between 285,500 to
     385,750.

 Y




      Cascade's conservation plan including goals is
      available at
      http://wutc.wa.gov/rms2.nsf/177d98baa5918c7388
      256a550064a61e/6c09629d4be2f5ce882572d500
      60bae5!OpenDocument; 19.285 RCW "Energy
      Independence Act" is available at
      http://apps.leg.wa.gov/RCW/default.aspx?cite=19.
      285; Docket No. UG-060256, available at available
      at
      http://www.wutc.wa.gov/rms2.nsf/035319dd75df58
      ee8825706c0082540d/c7d3541678a5fa5d882571
      150082fa7a!OpenDocument-
      Decoupling pilot project authorized in 2007 for
      Cascade requires conservation targets and sets
a, c,
      penalties based on performance.
 d


     Cascade Natural Gas 2008-2010 goals, available




     Cascade 2008 Targeted Annual therm savings
     range between 285,500 to 385,750
     Cascade Natural Gas 2008-2010 goals, available
     Utility-by-utility.
 N
 N     Utility-by-utility.


       UG-060256 Cascade and UG-060518 Avista

 Y




 N


       Utility-by-utility.
 N


 N




 a




 Y




a, b
Y
                 Northwest Energy Efficiency Taskforce and
                 Northwest Energy Efficiency Alliance




             Y




             Y
                 Cascade; Avista; Puget Sound Energy; Northwest
                 Natural Gas

             N




eliver energy efficiency where cost-effective.
                 RCW 80.28.303 allows electrical, gas, or water
                 company to file a conservation service tariff with
                 the commission to recoup costs.
             Y
                  RCW 80.28.303 is available at
                  http://apps.leg.wa.gov/RCW/default.aspx?cite=80.
                  28.303; see commission website at
                  http://www.wutc.wa.gov/webimage.nsf/8d712cfdd4
                  796c8888256aaa007e94b4/0b2e39343c0be04a88
                  256a3b007449fe!OpenDocument.

                  Avista uses a tariff rider. For Cascade Natural Gas and
                  Northwest Natural Gas, recovery occurs through annual
                  Purchase Gas Adjustment filings.

           a, b




                  RCW 80.28.303 is available at
                  http://apps.leg.wa.gov/RCW/default.aspx?cite=80.
                  28.303; see commission website at
                  http://www.wutc.wa.gov/webimage.nsf/8d712cfdd4
                  796c8888256aaa007e94b4/0b2e39343c0be04a88
                  256a3b007449fe!OpenDocument.

            N

            N

                  EE program spending in 2008 was $18.9 million,
                  0.9% of IOU natural gas revenue.
           1%



            N

cost-effective energy efficiency and modify ratemaking
                  Avista (Docket No. UG-060518) and Cascade
            Y
                  (Docket No. UG-060256)

                  In 2007, the Commission authorized Cascade
                  Natural Gas and Avista to implement partial
                  decoupling through designated pilot programs.
            a     Docket No. UG-060518 refers to Avista case;
                  Docket No. UG-060256 refers to Cascade Natural
                  Gas' rate case.
    Avista, Docket No. UG-060518, available at
    http://www.wutc.wa.gov/rms2.nsf/frm2005VwFiling
    Web?OpenForm&vw2005L4FilingID=060518&NA
    V=0204060000CatL206CatL30605CatL4CatL5Cat
    L6CatL7; Cascade, Docket UG-060256, available
    at
    http://www.wutc.wa.gov/rms2.nsf/035319dd75df58
    ee8825706c0082540d/c7d3541678a5fa5d882571
    150082fa7a!OpenDocument-
    Avista (Docket UG-060518) and Cascade (Docket
    UG-051651) decoupling pilots


Y




    Avista Docket UG-060518:




Y




Y

N


N
                                                                         WYOMING
                                                                              Electric
Recommendation 1: Recognize energy efficiency as a high priority energy resource.
         EE is established as a high priority resource,       Utilities offer some EE programs, but EE is
         equivalent or superior to supply resources       N   not required in statute or order.
  1.1

         1.2.1 EE is integrated into an active IRP,          Many utilities do IRP, but there is no formal
         portfolio management, or other planning             requirement. Degrees of EE integration into
         process                                             IRPs vary by utility. The WY PSC will
                                                          Y- consider a rule requiring electric and gas
                                                             utilities to undertake IRP in 2009.
  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              N
  2.1
                                                             The Commission has previously accepted all
                                                             of the standard tests, including TRC. No
                                                          Y- specific test is required. The TRC test was
  2.2    The TRC or Societal Cost Test is used to            used in the DSM programs approved for
         evaluate EE programs                                Rocky Mountain Power on 10/2/08.
                                                             Docket 20000-264-EA-06, Final Order,
                                                             10/2/08:
         2.3.1 Potential for cost-effective EE has           http://psc.state.wy.us/htdocs/orders/20000-
                                                             Utilities are required to provide the expected
         been established through a potential study           program benefits and the evidence and
                                                              reasons for the expectations when they
                                                          N   submit proposed DSM programs to the
                                                              Commission. However, a statewide
                                                              potential study of all cost-effective EE has
  2.3                                                         not been done.
2.3

      2.3.2 Established EE programs reach all              Several utilities offer programs for
      customer classes                                     residential, commercial, and industrial
                                                       N   customers. Rocky Mountain Power's DSM
                                                           programs approved on 10/2/08 will reach
                                                           those customer classes, as well as low-
                                                           income customers.
      Funding requirements for all long-term, cost-
      effective EE have been established
                                                       N
2.4

      2.5.1 Quantitative MW and MWh savings                The DSM plans approved for Rocky
      goals have been established and are                  Mountain Power on 10/2/08 state that the
      producing incremental investment.                    utility will seek to meet or exceed the energy
                                                       N   savings forecasted in the application, but
                                                           that the programs will continue regardless of
                                                           the energy savings achieved, as long as they
                                                           continue to be cost-effective.
                                                           Docket 20000-264-EA-06, Final Order, and
                                                           Stipulation, 10/2/08:
                                                           http://psc.state.wy.us/htdocs/orders/20000-
                                                       R
                                                           264-18102.htm;
                                                           http://psc.state.wy.us/htdocs/orders/20000-
                                                           264-18102.pdf
      2.5.2 Goals are established: (a) connection
2.5   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

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


      2.5.4 Expected Capacity Savings 2006
      (Annual MW)

      2.5.5 Energy Savings Goals 2006 (Annual
      MWh or MTherms)

      2.6.1 A robust M&V process has been                  M&V is dealt with on a case-by-case basis
      established                                          during each utilities' DSM filings. Rocky
                                                           Mountain Power's approved DSM plan
                                                           requires yearly evaluations conducted by an
                                                       N   independent third party; the evaluations must
                                                           include the kWh saved, the kW saved, the
                                                           participation rate, the take rates, all with
                                                           sufficient detail to show each program's cost-
                                                           effectiveness.
                                                             Docket 20000-264-EA-06, Final Order, and
                                                             Stipulation, 10/2/08:
                                                             http://psc.state.wy.us/htdocs/orders/20000-
                                                             264-18102.htm;
                                                             http://psc.state.wy.us/htdocs/orders/20000-
                                                             264-18102.pdf
      2.6.1.1   M&V is adequately funded

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
                                                       Y
      independent party

      2.6.1.5 Review of M&V is done in a
                                                       Y
      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                   Delivery structure has not been established
      established                                      N     by statute or order, but some utilities
                                                             undertake DSM programs.

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

      Resource plans are regularly updated                   There is no requirement for all utilities to
                                                             produce resource plans or regularly update
                                                       N
2.8                                                          them. However, the PSC will consider a rule
                                                             regarding IRPs in 2009.

      2.9.1 Building Energy Codes for residential      1989 MEC may be adopted and enforced by
      buildings are in place and regularly updated N/N local jurisdictions.

                                                             http://bcap-
                                                             energy.org/state_status.php?state_ab=WY
2.9
      2.9.2 Building Energy Codes for                     1989 MEC may be adopted and enforced by
      commercial buildings are in place and           N/N local jurisdictions.
      regularly updated
                                                             http://bcap-
                                                             energy.org/state_status.php?state_ab=WY
         Appliance and Equipment Efficiency
         Standards are in place and regularly            N
  2.10
         updated
         Energy efficiency is a high priority in state       There are communities in Wyoming that
         buildings and state funded buildings as             have adopted energy efficiency action plans
                                                         N
         evidenced in capital planning and enabling          where goals have been established to
  2.11   performance contracts                               improve energy efficiency in buildings and


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
                                                         N
  3.1    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
  3.2    Homes
         What proportion is due to regulated utility
         program? (who is sponsor) Performance
         75% of state access to Home
         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                    Cost recovery is done on a case-by-case
                                                               basis. Montana-Dakota Utilities has a
                                                               conservation tracking adjustment approved
                                                               in 2006. DSM programs were approved for
                                                               Rocky Mountain Power on 10/2/08; the costs
                                                               will be recovered through a rate surcharge
                                                               that will be set separately for residential,
                                                               small commercial, and large industrial
                                                            Y-
                                                               groups. No customer may opt out. Each
                                                               year, the programs' cost-effectiveness will
                                                               be reassessed, changes to the programs
                                                               may take place, and the surcharge may be
                                                               adjusted for the future year's programs, as
                                                               well as to account for over- or under-
                                                               collected amounts.


                                                                Rocky Mountain Power: Docket 20000-264-
                                                                EA-06, Final Order, and Stipulation, 10/2/08:
                                                                http://psc.state.wy.us/htdocs/orders/20000-
  4.1                                                       R   264-18102.htm;
                                                                http://psc.state.wy.us/htdocs/orders/20000-
                                                                264-18102.pdf

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

         4.1.3 Funding is for multi-year periods                Rocky Mountain Power's DSM programs,
                                                                approved on 10/2/08, provide for funding of
                                                            Y   about $25 million from 10/1/08 to 7/1/2012,
                                                                as long as the programs remain cost-
                                                                effective.
                                                                Rocky Mountain Power: Docket 20000-264-
                                                                EA-06, Final Order, and Stipulation, 10/2/08:
                                                                http://psc.state.wy.us/htdocs/orders/20000-
                                                                264-18102.htm;
                                                                http://psc.state.wy.us/htdocs/orders/20000-
                                                                264-18102.pdf

         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             The Commission has generally allowed
         addressed and disincentives are removed           provisions for recovery of lost revenues as
                                                           part of the cost recovery process. Actual
                                                        Y- mechanisms vary by utility. See Section 4.1.


  5.1

         5.1.2 Method used is: (a) decoupling; (b)
         lost revenue recovery; or (c) non-utility      b
         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              Declining block rate structures have been
         variable rate designs have been eliminated     N   addressed in some, but not all electric
                                                            utilities.

         5.4.1 Time sensitive rates in place                Some utilities have TOU rates in place for
                                                        Y
                                                            some customers.

         5.4.2 Usage sensitive rates in place           Y
  5.4    5.4.3 AMI deployment planned                   N

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

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

         Investment Tax Credit for energy efficient
                                                        N
    -    investments

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


Distributed Generation Policies
      A statewide interconnection policy is in place      WY has interconnection requirements in
                                                          their net metering law - Wyo. Stat. § 37-16-
                                                          101 et seq. Systems up to 25 kW that
                                                          generate electricity using solar, wind
                                                          hydropower or biomass resources are
                                                          eligible to interconnect. Systems must
                                                          comply with NEC, IEEE, and UL standards.
                                                       Y-
                                                          Customers must install an external
                                                          disconnect switch. Additional liability
                                                          insurance is not required. All utilities in the
                                                          state have their own interconnection
7.1                                                       agreement forms modeled after the one
                                                          developed by Rocky Mountain Power.

                                                           Wyo. Stat. § 37-16-101 et seq. can be
                                                           accessed here,
                                                           http://legisweb.state.wy.us/statutes/statutes.
                                                           aspx?file=titles/Title37/T37CH16.htm and
                                                       S   Rocky Mountain Power's interconnection
                                                           agreement can be found here,
                                                           http://www.rockymountainpower.net/File/File
                                                           78687.pdf

      A statewide net metering policy is in place          WY's net metering law - Wyo. Stat. § 37-16-
                                                           101 et seq, applies to IOUs and electric
                                                           cooperatives. Eligible technologies under the
                                                           legislation are solar, wind, hydropower and
                                                           biomass systems up to 25 kW. There is no
                                                       Y   limit on overall enrollment of net metered
                                                           systems. NEG is credited to the next month.
7.2                                                        At the end of an annual period, a utility will
                                                           purchase unused credits at the utility's
                                                           avoided cost rate.

                                                           Wyo. Stat. § 37-16-101 et seq. can be
                                                           accessed here,
                                                       S
                                                           http://www.dsireusa.org/documents/Incentive
                                                           s/WY02R1.htm
      A statewide exit fee policy is in place
7.3
      A statewide standby rate policy is in place          Wyoming does not have a statewide policy
                                                       N
                                                           on standby rates




7.4
                                                           PacifiCorp - Schedule 33 - standby service is
                                                           provided through a contract with the utility. A
                                                           high customer charge and a relatively high
                                                           reservation charge is assessed every month
                                                           based on the contract demand. Actual
7.4                                                        usage is based on very low energy charges
                                                      U-   and a moderate demand charge that is
                                                           based on the two maximum demand of the
                                                           month with a 12 month ratchet. There is a
                                                           very high penalty for exceeding the contract
                                                           demand. Rate available at:
                                                           http://www.rockymtnpower.net/Article/Article
                                                           1997.html

      As part of resource planning process, CHP            WY does not currently have a formal IRP
      is reviewed and incorporated where effective    N    process.


                                                            Pacificorp's IRP for WA state was also filed
7.5
                                                      U+ with the WY PSC, it does assess CHP and
                                                            incorporates it where effective.
                                                     http://psc.state.wy.us/htdocs/dwnload/irp/2007Paci
                                  Natural Gas
urce.
                  Utilities offer some EE programs, but EE is not
             N    required in statute or order.


                  Questar Gas Company files an IRP in WY. The
                  WY PSC will consider a rule requiring electric and
                  gas utilities to undertake IRP in 2009.
             Y-




             N



             N


             N




             N


effective energy efficiency as a resource
             N

                  The Commission has previously accepted all of
                  the standard tests, including TRC. No specific test
             Y-   is required. The TRC test was used in the DSM
                  programs approved for Questar Gas Company,
                  effective July 1, 2009.
                  Docket No. 30010-94-GR-08, Final Order June 17,
             R    2009. http://psc.state.wy.us/htdocs/orders/30010-
                  94-18687.htm
                  Utilities are required to provide the expected
                  program benefits and the evidence and reasons
                  for the expectations when they submit proposed
             N    DSM programs to the Commission. However, a
                  statewide potential study of all cost-effective EE
                  has not been done.
    Some utilities offer programs for residential,
    commercial, and industrial customers, but not low-
N   income customers (Questar Gas Company's DSM
    programs effective July 1, 2009; Montana Dakota
    Utilities' programs effective August 28, 2006).



N




N




    M&V is dealt with on a case-by-case basis during
    each utilities' DSM filings. Questar Gas
    Company's approved DSM plan requires the
    company to report semi-annually. Montana
N   Dakota Utilities is required to report annually. The
    reports must include the Dth savings, the take
    rates, etc, all with sufficient detail to show each
    program's cost-effectiveness.
       Docket No. 30010-94-GR-08
       http://psc.state.wy.us/htdocs/orders/30010-94-
       18687.htm                                  Docket
       No. 30013-166-GT-05
          http://psc.state.wy.us/htdocs/orders/30013-166-
       16278.htm




 Y


 Y


 Y


 Y




       Delivery structure has not been established by
 N     statute or order, but some utilities undertake DSM
       programs.


a, b


       There is no requirement for all utilities to produce
       resource plans or regularly update them.
 N
       However, the PSC will consider a rule regarding
       IRPs in 2009.
                  There are communities in Wyoming that have
                  adopted energy efficiency action plans where
             N
                  goals have been established to improve energy
                  efficiency in buildings and facilities in the




             Y-




             N




deliver energy efficiency where cost-effective.
                A 2006 Order in Docket No. 30013-166-GT-05
                approved cost recovery for Montana Dakota
                Utilities gas conservation programs via a tariff
                rider. http://psc.state.wy.us/htdocs/orders/30013-
                166-16278.htm. Questar Gas will begin DSM
                programs on 7/1/09.


           Y-




           a


                Questar Gas Company's DSM programs have an
                annual budget.
           N


                No. 30010-94-GR-08 Questar Gas Company.
                http://psc.state.wy.us/htdocs/orders/30010-94-
                18687.htm




cost-effective energy efficiency and modify ratemaking
    In Docket No. 30013-166-GT-05, MDU had
    requested lost revenue recovery for natural gas
    distribution sales lost to conservation programs.
N   The request was later revised and the lost revenue
    request was dropped.




N




N



N



N




N


N



N

				
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