Part 2.
PUBLIC UTILITY COMMISSION OF TEXAS
Chapter 25.
SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
Subchapter H. ELECTRICAL PLANNING
2.
ENERGY EFFICIENCY AND CUSTOMER-OWNED RESOURCES
16 TAC §25.181, §25.184
(Editor's Note: In accordance with Government Code, §2002.014,
which permits the omission of material which is "cumbersome, expensive, or
otherwise inexpedient," the figures in 16 TAC §25.184 are not included
in the print version of the Texas Register. The figures are available in the
on-line issue of the June 10, 2005, issue of the Texas Register.)
The Public Utility Commission of Texas (commission)
proposes amendments to §25.181 and §25.184. Sections 25.181(e),
(h), and (i) will expand the Load Management Standard Offer Program; §25.184(c)
will add a Solar Water Heater Market Transformation Program to the Energy
Efficiency Implementation Project; §25.184(d)(2) will update the stipulated
values and measurement and verification procedures; and §25.184(d)(3)
will update deemed savings lighting tables.
Theresa Gross, Retail Market Analyst, Electric Division, has determined
that for each year of the first five-year period the proposed sections are
in effect there will be no fiscal implications for state or local government
as a result of enforcing or administering the section.
Ms. Gross has determined that for each year of the first five years the
proposed sections are in effect the public benefit anticipated as a result
of enforcing these sections will be the following: the addition of a market
transformation program for solar water heaters will allow utilities to operate
programs to make this technology available to customers; expansion of the
Load Management Program will reduce demand for electricity during peak consumption
periods, resulting in improved reliability and lower costs for electricity;
the deemed savings updates for the lighting tables will more accurately reflect
current technology and the resulting energy savings; the inclusion of the
measurement and verification procedures and stipulated values will facilitate
measurement and verification of commercial and industrial energy efficiency
programs.
There will be no adverse economic effect on small businesses or micro-businesses
as a result of enforcing these sections. There is no anticipated economic
cost to persons who are required to comply with these sections as proposed.
Ms. Gross has also determined that for each year of the first five years
the proposed sections are in effect there should be no effect on a local economy,
and therefore no local employment impact statement is required under Administrative
Procedure Act (APA), Texas Government Code §2001.022.
The commission staff will conduct a public hearing on this rulemaking,
if requested pursuant to the Administrative Procedure Act, Texas Government
Code §2001.029, at the commission's offices located in the William B.
Travis Building, 1701 North Congress Avenue, Austin, Texas 78701 on July 29,
2005. The request for a public hearing must be received within 30 days after
publication.
Comments on the proposed amendments may be submitted to the Filing Clerk,
Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 13326,
Austin, Texas 78711- 3326, within 30 days after publication. Sixteen copies
of comments to the proposed amendments are required to be filed pursuant to §22.71(c)
of this title. Reply comments may be submitted within 45 days after publication.
Comments should be organized in a manner consistent with the organization
of the proposed rule(s). The commission invites specific comments regarding
the costs associated with, and benefits that will be gained by, implementation
of the proposed sections. The commission will consider the costs and benefits
in deciding whether to adopt the sections. All comments should refer to Project
Number 30331.
These amendments are proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 (Vernon 1998, Supplement
2005) (PURA), which provides the Public Utility Commission with the authority
to make and enforce rules reasonably required in the exercise of its powers
and jurisdiction; and specifically, PURA §39.905 which require(s) the
commission to provide oversight and adopt rules and procedures, as necessary,
to ensure that the goal for energy efficiency is achieved.
Cross Reference to Statutes: Public Utility Regulatory Act §39.905.
§25.181.Energy Efficiency Goal.
(a) - (d)
(No change.)
(e)
Cost-effectiveness standard.
(1)
(No change.)
(2)
Avoided cost. Incentives shall be set as a percentage
of the avoided cost. The avoided cost shall be the estimated cost of a new
gas turbine.
(A) - (B)
(No change.)
[
(3)
Incentive Levels
(A)
The incentive levels for each customer class shall be
a percentage of the avoided cost set forth in subsection (e) of this section.
The incentive levels for individual programs shall be set by each utility
subject to the incentive ceilings outlined below and other provisions of this
section. Utilities may adjust incentive levels for individual programs during
the program year, but such adjustments must be clearly publicized in the program
application guidelines. Except as provided in subparagraphs (B) through (D)
of this paragraph, incentive levels for standard offer programs may not exceed:
(i)
100% for hard-to-reach customers.
(ii)
50% for other residential and small commercial customers.
(iii)
35% for large commercial and industrial customers, except
for load management programs which may not exceed 25%.
(B)
The utility may apply an environmental adder of up to
20% above the cost effectiveness standard prescribed in subparagraph (A) of
this paragraph for targeted projects conducted in an area that is not in attainment
for air emission that is subject to the regulations of the Texas Commission
on Environmental Quality (TCEQ). The environmental adder is available only
for targeted energy efficiency projects that would not be implemented without
the adder. Projects receiving incentives under subparagraphs (C) or (D) of
this paragraph are not eligible to receive the environmental adder.
(C)
For load management projects implemented in areas of transmission
or distribution system constraints outside of the ERCOT power region, the
utility may identify areas where transmission or distribution system enhancements
could potentially be avoided or deferred or where congestion management costs
could be reduced as a result of load management. The utility may increase
the incentive for targeted load management projects in such areas. The increased
incentive is available only for targeted load management projects that would
not be implemented without the higher incentive. The incentive for load management
programs targeted to transmission or distribution constrained areas shall
not exceed:
(i)
Large Commercial and Industrial projects: 35%.
(ii)
Residential and Small Commercial projects: 55%.
(D)
The ERCOT independent system operator on an annual basis
shall identify areas where transmission system enhancements could potentially
be avoided or deferred or where congestion management costs could be reduced
as a result of load management. Such information shall be provided by ERCOT
to the utility and to the commission by July 1 of each year for the following
year. In addition, the utility may identify areas where distribution system
enhancements could potentially be avoided or deferred as a result of load
management. The utility may increase the incentive for targeted load management
projects in such areas. The increased incentive is available only for targeted
load management projects that would not be implemented without the higher
incentive. The incentive for load management programs targeted to transmission
or distribution constrained areas shall not exceed:
(i)
Large Commercial and Industrial projects: 35%.
(ii)
Residential and Small Commercial projects: 55%.
(f) - (g)
(No change.)
(h)
Energy efficiency plans.
(1)
(No change.)
(2)
Energy efficiency plan. Each electric utility's energy
efficiency plan shall describe how the utility intends to achieve the legislative
mandate and the requirements of this section. Beginning January 1, 2002, the
plan shall be on a calendar year cycle and shall project at least a four-year
period. The plan shall propose an annual budget sufficient to reach the 10%
legislative goal by January 1, 2004, and annually thereafter. Each electric
utility's energy efficiency plan shall include:
(A) - (E)
(No change.)
[(F)
The incentive levels for each customer
class shall be a percentage of the avoided cost set forth in subsection (e)
of this section. The incentive levels for individual programs shall be set
by each utility subject to the incentive ceilings outlined below and other
provisions of this section. Utilities may adjust incentive levels for individual
programs during the program year, but such adjustments must be clearly publicized
in the program application guidelines. Until the commission adopts different
ceilings for incentive levels, incentive levels for standard offer programs
may not exceed:]
[(i)
100% for hard-to-reach customers.]
[(ii)
50% for other residential and small commercial customers.]
[(iii)
35% for large commercial and industrial customers.]
[(iv)
15% for load management programs. ]
(F)
[
(G)
[
(H)
[
(I)
[
(3) - (4)
(No change.)
(i)
Utility administration. Utilities shall administer standard
offer programs, market transformation programs, or both, to meet the requirements
of the energy efficiency goal in PURA §39.905. The cost of administration
may not exceed 10% of the total program costs.
(1) - (2)
(No change.)
(3)
The utility shall compensate energy efficiency service
providers for energy efficiency projects in accordance with the contract and
the requirements of this section. An individual energy efficiency service
provider and its affiliates may not receive more than 20% of the total incentive
payments available for a particular standard offer program, unless the program
is not fully subscribed after 180 days, and the utility has demonstrated that
it has performed adequate outreach.
This requirement is not applicable
to a load management program.
(4) - (8)
(No change.)
(j) - (p)
(No change.)
§25.184.Energy Efficiency Implementation Project.
(a) - (b)
(No change.)
(c) Templates. This section includes the following program templates:
(1) - (12) (No change.)
(13) Solar Water Heater Market Transformation Program.
Figure: 16 TAC §25.184(c)(13) (.pdf)
(d) Deemed Savings Estimates. This section includes the following
Deemed Savings Estimates:
(1) (No change.)
(2) Measurement and Verification Guidelines and Stipulated Values.
Figure: 16 TAC §25.184(d)(2) (.pdf)
[(2)
Deemed Savings, Installation & Efficiency
Standards: Commercial Cooling Equipment.]
[Figure: 16 TAC §25.184(d)(2)]
(3)
Standard Fixture Wattages.
Figure: 16 TAC §25.184(d)(3) (.pdf)
[(3)
Commercial Lighting Tables.]
[
(e)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on May 25, 2005.
TRD-200502121
Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: July 10, 2005
For further information, please call: (512) 936-7223
Chapter 65.
BOILER DIVISION
(C)
The commission may adjust the cost effectiveness
standard prescribed in subparagraphs (A) and (B) of this paragraph by using
an environmental adder up to 20% for targeted projects conducted in an area
that is not in attainment for air emission that is subject to the regulations
of the Texas Commission on Environmental Quality (TCEQ). The environmental
adder is available only for targeted energy efficiency projects that would
not be implemented without the adder.
]
(G)
] The proposed annual budget
required to implement the utility's standard offer program, market transformation
program, or both, broken out by program for each customer class, including
hard-to-reach customers, and the amount for the small contractor set-aside
pursuant to subsection (i)(4) of this section. The proposed budget should
detail incentive payments, utility administrative costs, including the independent
M&V expert, and the other administrative functions pursuant to subsection
(i)(1) of this section, and the rationale and methodology used to estimate
the proposed expenditures.
(H)
] Savings achieved through programs
for hard-to-reach customers shall be no less than 5.0% of the utility's total
demand reduction goal.
(I)
] Savings achieved through load
management programs, including interruptible rates, may not exceed
30%
[
15%
] of the utility's total demand reduction goal.
(J)
] A discussion of the types of
informational activities the utility plans to use to encourage participation
in standard offer programs or market transformation programs, including the
manner in which utilities will use to post notice of standard offer programs,
market transformation programs, and any other facts that may be considered
when evaluating a project.
Figure: 16 TAC §25.184(d)(3)
]
Part 4.
TEXAS DEPARTMENT OF LICENSING AND REGULATION