# Overview and Purpose

- **operation:** document
- **citation:** 4 CCR 723-4 Rule 4750
- **title:** Overview and Purpose
- **source type:** regulation
- **agency:** Colorado Public Utilities Commission
- **status:** current
- **official:** true
- **published on:** Not available
- **effective on:** Not available
- **summary:** These rules implement §§ 40-1-102, 40-3.2-101, 40-3.2-103, 40-3.2-105, 40-3.2-106, and 40-3.2-107, C.R.S. for LDCs required by statute to be rate-regulated. Consistent with statutory requirements, the purpose of these Demand Side Management (DSM) rules is to reduce end-use gas consumption in a cost 
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- **markdown:** https://regulus.evalyn.ai/document/co-ccr-4-723-4-4750.md
- **app url:** https://regulus.evalyn.ai/document/co-ccr-4-723-4-4750
- **source url:** https://www.sos.state.co.us/CCR/DisplayRule.do?action=ruleinfo&ruleId=2260&deptID=18&agencyID=96&deptName=Department%20of%20Regulatory%20Agencies&agencyName=Public%20Utilities%20Commission&seriesNum=4%20CCR%20723-4
**body:**

These rules implement §§ 40-1-102, 40-3.2-101, 40-3.2-103, 40-3.2-105, 40-3.2-106,
and 40-3.2-107, C.R.S. for LDCs required by statute to be rate-regulated. Consistent
with statutory requirements, the purpose of these Demand Side Management (DSM)
rules is to reduce end-use gas consumption in a cost effective manner, in order to save
money for consumers and utilities, and protect the environment by encouraging the
reduction of emissions and air pollutants. These rules direct LDCs in the design and
implementation of programs that will enable sales customers to participate in DSM. The
LDC shall design DSM programs for its full-service customers to achieve cost-effective
energy savings, considering factors such as: achievable energy savings, customer
benefits, cost effectiveness ratios, the effects on disproportionately impacted
communities, adoption potential, market transformation capability and ability to replicate
in the utility service territory.
(a) Each utility shall file an application to open a DSM strategic issues proceeding in
accordance with rule 4761.
(b) Each utility shall file an application for approval of a DSM plan within the
parameters set forth in these rules. In the application, the utility shall include a
proposed expenditure target, ensuring that a significant portion of the program
expenditures are targeted to improve energy efficiency in income-qualified
households in accordance with the percentage specified in subparagraphs
4753(i)(II) and (III), as applicable, as well as a savings target, funding
mechanism, and cost-recovery mechanism.
(c) Each utility shall annually file an advice letter or application for cost recovery, as
permitted herein.
(d) Each utility shall annually file a DSM report. The DSM report shall include the
results of any measurement and verification (M & V) evaluation conducted during
the DSM report period.
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