4 Colo. Code Regs. § 723-4-4753

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

Section 4 CCR 723-4-4753 - Periodic DSM Plan Filing

Each utility shall periodically file, in accordance with paragraph 4752(e), a prospective natural gas DSM plan that covers a DSM period of three years, unless otherwise ordered by the Commission. The plan shall include the following information:

(a) the utility's proposed expenditures by year for each DSM program, by budget category; the sum of these expenditures represents the utility's proposed expenditure target as required by § 40-3.2-103(2)(a), C.R.S.;

(b) the utility's estimated natural gas energy savings over the lifetimes of the measures implemented in a given annual DSM program period, expressed in dekatherms per dollar of expenditure, and presented for each DSM program proposed for Commission approval; this represents the utility's proposed savings target required by § 40-3.2-103(2)(b), C.R.S.;

(c) the anticipated units of energy to be saved annually by a given annual DSM program, which equals the product of the proposed expenditure target and proposed savings target; this product is referred to herein as the energy target;

(d) the estimated dollar per therm value that represents the utility's annual fixed costs that are recovered through commodity sales on a per therm basis;

(e) the utility shall include in its DSM plan application data and information sufficient to describe the design, implementation, oversight and cost effectiveness of the DSM programs. Such data and information shall include, at a minimum, program budgets delineated by year, estimated participation rates and program savings (in therms);

(f) in the information and data provided in a proposed DSM plan, the utility shall reflect consideration of the factors set forth in the Overview and Purpose, rule 4750. At a minimum the utility shall provide the following information detailing how it developed its proposed DSM program:

(I) descriptions of identifiable market segments, with respect to gas usage and unique characteristics;

(II) a comprehensive list of DSM measures that the utility is proposing for inclusion in its DSM plan;

(III) a detailed analysis of proposed DSM programs for a utility's service territory in terms of markets, customer classes, anticipated participation rates (as a number and a percent of the market), estimated energy savings and cost effectiveness;

(IV) a ranking of proposed DSM programs, from greatest value and potential to least, based upon the data required in subparagraph (f)(III);

(V) proposed marketing strategies to promote participation based on industry best practices;

(VI) calculation of cost effectiveness of the proposed DSM programs using a modified TRC test. Each proposed DSM program is to have a projected value greater than or equal to 1.0 using a modified TRC test, except as provided for in paragraph 4753 (g); and

(VII) an analysis of the impact of the proposed DSM program expenditures on utility rates, assuming a 12-month cost recovery period.

(g) In its DSM plan, the utility shall address how it proposes to target DSM services to income qualified customers. The utility shall also address whether it proposes to provide DSM services directly or indirectly through financial support of conservation programs for income qualified households administered by the State of Colorado, as authorized by § 40-3.2-103(3)(a), C.R.S. The utility may propose one or more DSM programs for income qualified customers or customers in disproportionately impacted communities that yield a modified TRC test value below 1.0.

(h) In proposing an expenditure target for Commission approval, pursuant to § 40-3.2-103 (2)(a), C.R.S., the utility shall comply with the following:

(I) the utility's annual expenditure target for DSM programs shall be, at a minimum, two percent of a natural gas utility's base rate revenues, (exclusive of commodity costs), from its sales customers in the 12-month calendar period prior to setting the targets, or one-half of one percent of total revenues from its sales customers in the 12-month calendar period prior to setting the targets, whichever is greater;

(II) the utility may propose an expenditure target in excess of two percent of base rate revenues; and

(III) funds spent for education programs, market transformation programs and impact and process evaluations and program planning related to natural gas DSM programs may be recovered without having to show that such expenditures, on an independent basis, are cost-effective; such costs shall be included in the overall benefit/cost ratio analysis.

(i) The utility shall propose a budget to achieve the expenditure target proposed in paragraph 4753 (a). The budget shall be detailed for the overall DSM plan and for each program for each year and shall be categorized into:

(I) planning and design costs;

(II) administrative and DSM program delivery costs;

(III) advertising and promotional costs, including DSM education;

(IV) customer incentive costs;

(V) equipment and installation costs;

(VI) measurement and verification costs; and

(VII) miscellaneous costs.

(j) The budget shall explain anticipated increases/decreases in financial resources and human resources from year to year.

(k) A utility may spend more than the annual expenditure target established by the Commissionup to 25 percent over the target, without being required to submit a proposed DSM plan amendment. A utility may submit a proposed DSM plan amendment for approval when expenditures are in excess of 25 percent over the expenditure target.

(l) As a part of its DSM plan, each utility shall propose a DSM plan with a benefit/cost value of unity (1) or greater, using a modified TRC test.

(m) For the purposes of calculating a modified TRC, the non-energy benefits of avoided emissions and societal impacts shall be incorporated as follows.

(I) The initial TRC ratio, which excludes consideration of avoided emissions and other societal benefits, shall be multiplied by 1.05 to reflect the value of the avoided emissions and other societal benefits. The result shall be the modified TRC. A utility may propose for approval a different factor for avoided emissions and societal impacts, but must submit documentation substantiating the proposed value.

(n) Measurement and verification (M & V) plan. The utility shall describe in complete detail how it proposes to monitor and evaluate the implementation of its proposed programs. The utility shall explain how it will accumulate and validate the information needed to measure the plan's performance against the standards, pursuant to rule 4755. The utility shall propose measurement and verification reporting sufficient to communicate results to the commission in a detailed, accurate and timely basis.

4 CCR 723-4-4753

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

47 CR 08, April 25, 2024, effective 5/15/2024