Ariz. Admin. Code § 14-2-2510

Current through Register Vol. 30, No. 50, December 13, 2024

Section R14-2-2510 - Cost Recovery

A. An affected utility may recover the costs that it incurs in planning, designing, implementing, and evaluating a DSM program or measure or RET program or RET if the DSM program or measure or RET program or RET is all of the following:

1. Approved by the Commission before it is implemented;

2. Implemented in accordance with a Commission-approved program proposal or implementation plan; and

3. Monitored and evaluated, pursuant to R14-2-2515.

B. An affected utility shall monitor and evaluate each DSM program or measure and each RET program or RET, as provided in R14-2-2515.

C. If an affected utility determines that a DSM program or measure is not cost-effective or that a DSM program or measure or RET program or RET does not meet expectations, the affected utility shall include in its annual DSM progress report filed under R14-2-2509 a proposal to modify or terminate the DSM program or measure or RET program or RET.

D. An affected utility shall recover its DSM and RET costs concurrently, on an annual basis, with the spending for DSM and RET programs, unless the Commission orders otherwise.

E. An affected utility may recover costs from DSM funds for any of the following items, if the expenditures will enhance DSM or RET programs:

1. Incremental labor attributable to DSM and RET development,

2. A market study,

3. A research and development project such as applied technology assessment,

4. Consortium membership, or

5. Other items that are difficult to allocate to an individual DSM or RET program.

F. The Commission may impose a limit on the amount of DSM funds that may be used for the items in subsection (E).

G. If goods and services used by an affected utility for DSM or RET have value for other affected utility functions, programs, or services, the affected utility shall divide the costs for the goods and services and allocate funding proportionately.

H. An affected utility shall allocate DSM and RET costs in accordance with generally accepted accounting principles.

I. An affected utility, at its own initiative, may submit to the Commission twice-annual reports on the financial impacts of its Commission-approved DSM and RET programs, including any unrecovered fixed costs and net lost income/revenue resulting from its Commission-approved DSM and RET programs.

Ariz. Admin. Code § R14-2-2510

New Section made by final rulemaking at 17 A.A.R. 72, effective March 4, 2011 (Supp. 11-1).