4 Colo. Code Regs. § 723-4-4757
Current through Register Vol. 47, No. 22, November 25, 2024
Section 4 CCR 723-4-4757 - Funding and Cost Recovery MechanismThe purpose of the G-DSMCA is to enable utilities to recover prudently incurred gas DSM program expenses without requiring a change in their base rates for gas sales. All such costs, plus any G-DSM bonus approved by the Commission, shall be recovered through the G-DSMCA that is set on an annual basis, and collected from July 1 through June 30. The G-DSMCA allows for prospective recovery of prudently incurred costs of DSM programs within the DSM program expenditure target approved by the Commission in order to provide for funding of the utility's DSM programs, as well as recovery of deferred G-DSMCA costs, without having to file a rate case.
(a) A utility may spend a disproportionate share of total expenditures on one or more classes of customers, provided, however, that cost recovery for programs directed at residential customers are to be collected from residential customers only and that cost recovery for programs directed at nonresidential customers are to be collected from nonresidential customers only, except as provided for in paragraph 4757 (f).(b) The utility may recover its DSM program expenditures either through expensing or by adding DSM program expenditures to base rates as a part of, or outside of, a rate case, with an amortization period as set forth in rule 4756.(c) There shall be no financial penalty assessed on a utility for failing to reach its approved DSM program expenditure target, nor shall there be a bonus simply for meeting its DSM program expenditure target. All prudently incurred expenditures for the utility's portfolio of DSM programs are recoverable. However, the portion of costs yielding a modified TRC test value below 1.0 loses its presumption of prudence and is subject to review.(d) Amounts not spent under the DSM program expenditure target shall not roll-over to the next DSM period.(e) A utility has the discretion and the responsibility of managing the portfolio of DSM programs to meet the benefit to cost ratio and the energy and savings targets. In implementing DSM programs, a utility shall use reasonable efforts to maximize energy savings consistent with the approved DSM plan.(f) A utility may continue DSM programs that were in existence on or before May 22, 2007, the effective date of § 40-3.2-103, C.R.S., concerning measures to promote energy efficiency, and shall not be required to obtain approval from the Commission for recovery of costs associated with such programs. Any new expenditure for such programs must be included in the annual DSM plan filing and G-DSMCA application. Existing low-income DSM programs that recover costs from all customer classes shall continue such recovery.(g) A utility shall file a request to adjust its G-DSMCA factor either through an application or an advice letter and tariffs, pursuant to the relevant provisions of title 40, articles 1 through 7 of the Colorado Public Utilities Law and of the Commission rules. The G-DSMCA shall be filed pursuant to the schedule provided in rule 4752.(h) The G-DSMCA filing shall include information and attachments as required in rule 4758. If the M & V evaluation required by rule 4755 yields benefit/costs test results that impact the allowable recovery of costs or currently approved bonus, then the utility shall include such adjustments in the G-DSMCA filing and tariffs.(i) If the projected DSM program costs have changed from those used to calculate the currently effective G-DSMCA cost or if a utility's deferred G-DSMCA cost balance increases or decreases sufficiently, the utility may file an application to revise its currently effective G-DSMCA factor to reflect such changes, provided that the resulting change to the G-DSMCA factor equates to a base rate change of at least one cent ($0.01) per Mcf or Dth. A utility has the burden of proof to justify any interim G-DSMCA filings and the Commission has the discretion to consolidate the interim G-DSMCA filing with the next regularly scheduled annual G-DSMCA filing.(j) Applicability of the G-DSMCA factor. The G-DSMCA factor shall be separately calculated and applied to the utility sales gas base rate schedules of residential and non-residential customers.(k) Return on DSM program expenditures to be amortized. For utilities that choose to amortize the DSM program expenditure, the balance of a utility's investments in cost-effective DSM programs shall earn a return equal to the utility's current after-tax weighted average cost of capital.(l) Interest on under- or over-recovery. The amount of net interest accrued on the average monthly balance in sub-accounts of Account No. 186 (whether positive or negative), is determined by multiplying the monthly balance by an interest rate equal to the Commission-authorized after-tax weighted average cost of capital.(m) Calculation of the G-DSMCA factor. The G-DSMCA factor shall be calculated separately for residential and non-residential customers to at least the accuracy of two significant places.38 CR 17, September 10, 2015, effective 9/30/201540 CR 01, January 10, 2017, effective 1/30/201741 CR 11, June 10, 2018, effective 6/30/201842 CR 07, April 10, 2019, effective 4/30/201943 CR 08, April 25, 2020, effective 5/15/202044 CR 04, February 25, 2021, effective 3/17/202144 CR 24, December 25, 2021, effective 1/14/202245 CR 18, September 25, 2022, effective 10/15/202246 CR 06, March 25, 2023, effective 1/25/202346 CR 08, April 25, 2023, effective 5/15/2023