Definitions

The following definitions apply to rules 4750 through 4761, unless § 40-1-102, C.R.S., 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, 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 of the following programs or combination of programs: energy efficiency, including weatherization and insulation; conservation; load management; beneficial electrification, as defined in § 40-1- 102(1.2), C.R.S.; demand response; DSM education targeted at market transformation; and services offered to customers to reduce 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.#

(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)"Savings goal(s)" refers to the energy and demand savings levels approved in a strategic issues proceeding.#

(r)"Savings target(s)" refers to the energy and demand savings levels approved in a DSM plan proceeding and are designed to meet or exceed the savings goals set by the Commission in a strategic issues proceeding.#

(s)"Strategic issues proceeding" means a proceeding in which the Commission examines, addresses, and establishes high-level DSM policy findings for a utility. In a strategic issues proceeding, the utility's application shall include proposed savings goals, peak demand reduction resulting from energy efficiency and demand response and commensurate budgets. The outcome of a strategic issues proceeding results in a DSM policy framework from which the utility then develops and files its DSM plan for Commission approval.#