4 Colo. Code Regs. § 723-4-4751

Current through Register Vol. 47, No. 22, November 25, 2024

Section 4 CCR 723-4-4751 - Definitions

The following definitions apply to rules 4750 through 4760, unless § 40-1-102 provides otherwise.

(a) "Amortization" means the systematic spreading of expenditures or capital costs incurred for DSM programs, through regular accounting entries over a specified period of time.

(b) "Benefit/cost ratio" means the ratio of the net present value of benefits to the net present value of costs, as calculated using the modified TRC test.

(c) "Cost effective" means a benefit/cost ratio of greater than one.

(d) "Demand side management" (DSM) means the implementation of programs or measures which serve to shift or reduce the consumption of, or demand for, natural gas.

(e) "Discount rate" means the interest rate used in determining the present value of future cash flows of DSM costs and benefits, for both forecasted and actual cash flows. The forecasted DSM costs and benefits are used to estimate the cost effectiveness of DSM measures to develop a cost effective DSM portfolio. The actual DSM costs and benefits, which are the actual costs of the program and the documented energy savings, are used to determine net economic benefits for the purpose of calculating the bonus. Discount rate shall be the utility's after-tax weighted average cost of capital (WACC).

(f) "DSM education" means a program, including but not limited to an energy audit, that contributes indirectly to a cost-effective DSM program by promoting customer awareness and participation.

(g) "DSM measure" means an individual component or technology, such as attic insulation or replacement of equipment.

(h) "DSM period" means the effective period of an approved DSM plan.

(i) "DSM plan" means the DSM programs, goals, and budgets over a specified DSM period, generally considered in one year increments, as may be proposed by the utility.

(j) "DSM program" means any combination of DSM measures, information and services offered to customers to reduce natural gas usage.

(k) "Energy efficiency program" see DSM program.

(l) "Gas Demand-Side Management Cost Adjustment" (G-DSMCA) means a rate adjustment mechanism designed to compensate a utility for its DSM program costs.

(m) "Gas Demand-Side Management bonus" (G-DSM bonus) means a bonus awarded to a utility in accordance with § 40-3.2-103(2)(d), C.R.S.

(n) "Market transformation" means a strategy for influencing the adoption by consumers of new techniques or technologies. The objective is to overcome barriers within a market through coordinating tactics such as education, training, product demonstration and marketing, often conducted in concert with rebates or other financial incentives.

(o) "Modified Total Resource Cost test" or "modified TRC test" means an economic cost-effectiveness test used to compare the net present value of the benefits of a DSM program or measure over its useful life, to the net present value of costs of a DSM measure or program for the participant and the utility, consistent with § 40-1-102(5), C.R.S. In performing the modified TRC test, the benefits shall include, but are not limited to, as applicable: the utility's avoided production, distribution and energy costs; the participant's avoided operating and maintenance costs; the valuation of avoided emissions; and non-energy benefits as set forth in rule 4753. Costs shall include utility and participant costs. The utility costs shall include the net present value of costs incurred in accordance with the budget set forth in rule 4753.

(p) "Net economic benefits" means the net present value of all benefits in the modified TRC test, as applied to the utility's portfolio of DSM programs, less the net present value of the costs in the modified TRC test associated with that same portfolio.

(q) "Sales customer" or "full service customer" means a residential or commercial customer that purchases a bundled natural gas supply and delivery service from a utility but does not include customers served under a utility's gas transportation service rate schedules.

4 CCR 723-4-4751

38 CR 17, September 10, 2015, effective 9/30/2015

40 CR 01, January 10, 2017, effective 1/30/2017

41 CR 11, June 10, 2018, effective 6/30/2018

42 CR 07, April 10, 2019, effective 4/30/2019

43 CR 08, April 25, 2020, effective 5/15/2020

44 CR 04, February 25, 2021, effective 3/17/2021

44 CR 24, December 25, 2021, effective 1/14/2022

45 CR 18, September 25, 2022, effective 10/15/2022

46 CR 06, March 25, 2023, effective 1/25/2023

46 CR 08, April 25, 2023, effective 5/15/2023