{"operation":"document","citation":"4 CCR 723-4 Rule 4753","title":"DSM Plan","source_type":"regulation","agency":"Colorado Public Utilities Commission","status":"current","official":true,"published_on":null,"effective_on":null,"summary":"Each utility shall file, in accordance with paragraph 4752(e), a prospective gas DSM plan that covers a DSM period of two years, unless otherwise ordered by the Commission. The plan shall demonstrate how the utility will meet or exceed the energy savings goals established by the Commission pursuant ","machine_formats":{"json":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4753.json","markdown":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4753.md"},"app_url":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4753","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":"Each utility shall file, in accordance with paragraph 4752(e), a prospective gas DSM\nplan that covers a DSM period of two years, unless otherwise ordered by the\nCommission. The plan shall demonstrate how the utility will meet or exceed the energy\nsavings goals established by the Commission pursuant to these rules through the\nimplementation of DSM programs and should also be consistent with the utility’s most\nrecent clean heat plan approved by the Commission pursuant to rule 4732. The plan\nshall include the following information:\n(a) the utility’s proposed expenditures by year for each DSM program, by budget\ncategory, in accordance with the Commission’s order addressing the utility’s\nmost recent strategic issues proceeding application;\n(b) the utility’s estimated gas energy savings and avoided greenhouse gas\nemissions over the lifetimes of the measures implemented in a given annual\nDSM program period, expressed in dekatherms per dollar of expenditure, and\npresented for each DSM program proposed for Commission approval; this\nrepresents the utility’s proposed savings target required by § 40-3.2-103(2)(b),\nC.R.S.;\n(c) the anticipated units of energy to be saved annually by a given annual DSM\nprogram, which equals the product of the proposed expenditure target and\nproposed savings target; this product is referred to herein as the energy target;\n(d) anticipated design peak demand savings, as applicable to individual DSM\nprograms and to the portfolio as a whole;\n(e) the estimated dollar per therm value that represents the utility’s annual fixed\ncosts that are recovered through commodity sales on a per therm basis;\n(f) the utility shall include in its DSM plan application data and information sufficient\nto describe the design, implementation, oversight and cost effectiveness of the\nDSM programs. Such data and information shall include, at a minimum, program\nbudgets delineated by year, estimated participation rates and program savings\n(in therms), and the greenhouse gas emissions avoided from each program;\n(g) the utility’s plans to comply with the labor standards in § 40-3.2-105.5, C.R.S.;\nand\n\n(h) in the information and data provided in a proposed DSM plan, the utility shall\nreflect consideration of the factors set forth in the Overview and Purpose, rule\n4750. At a minimum the utility shall provide the following information detailing\nhow it developed its proposed DSM program:\n(I) descriptions of identifiable market segments, with respect to gas usage\nand unique characteristics;\n(II) a comprehensive list of DSM measures that the utility is proposing for\ninclusion in its DSM plan;\n(III) a detailed analysis of proposed DSM programs for a utility’s service\nterritory in terms of markets, customer classes, anticipated participation\nrates (as a number and a percent of the market), estimated energy\nsavings and cost effectiveness;\n(IV) a ranking of proposed DSM programs, from greatest value and potential to\nleast, based upon the data required in subparagraph (f)(III);\n(V) proposed marketing strategies to promote participation based on industry\nbest practices;\n(VI) calculation of cost effectiveness of the proposed DSM programs using a\nmodified TRC test. Each proposed DSM program is to have a projected\nvalue greater than or equal to 1.0 using a modified TRC test, except as\nprovided for in paragraph 4753(g);\n(VII) an analysis of the impact of the proposed DSM program expenditures on\nutility rates, assuming a 12-month cost recovery period;\n(VIII) the best available values for gas leakage during the extraction,\nprocessing, transportation, and delivery of gas by the utility, categorized\nby each stage, as well as leakage from piping or other equipment on\ncustomer premises, and any relevant data and emissions accounting\nmethodologies developed by the Air Pollution Control Division regarding\nmethane leakage rates and the appropriate global warming potential of\nmethane, for the purpose of calculating the cost of methane emissions;\nand\n(IX) a narrative discussion showing that the DSM measures and programs,\nparticularly in new construction, do not discourage otherwise economic\nbeneficial electrification.\n(i) In its DSM plan, the utility shall address how it proposes to prioritize DSM\nservices and programs for income-qualified customers and customers in\ndisproportionately impacted communities.\n\n(I) The utility may propose one or more DSM programs for income-qualified\ncustomers or customers in disproportionately impacted communities that\nyield a modified TRC test value below 1.0.\n(II) For a utility with 50,000 or more full-service customers, no less than 25\npercent of annual residential DSM expenditures shall be targeted on one\nor more DSM programs or measures for income-qualified residential\ncustomers.\n(III) For a utility with fewer than 50,000 full-service customers, no less than 15\npercent of annual residential DSM expenditures shall be targeted on one\nor more DSM programs or measures for income-qualified residential\ncustomers.\n(IV) On or after January 1, 2026, the Commission may commence\nproceedings to adjust the percentages set forth in subparagraphs\n4753(i)(II) and (III) so long as the resulting percentages represent a\nsignificant portion of DSM program expenditures and continue to make\nprogress toward achievement of the State of Colorado's energy efficiency\nand greenhouse gas emission reduction goals.\n(j) In proposing an expenditure target for Commission approval, the utility shall\ncomply with the following:\n(I) the utility’s annual expenditure target for DSM programs shall be\nconsistent with the estimated budget for DSM program expenditures\nestablished by the Commission in the utility’s most recent strategic issues\nproceeding; and\n(II) funds spent for education programs, market transformation programs and\nimpact and process evaluations and program planning related to gas DSM\nprograms may be recovered without having to show that such\nexpenditures, on an independent basis, are cost-effective; such costs shall\nbe included in the overall benefit/cost ratio analysis.\n(k) The utility shall propose a budget to achieve the expenditure target proposed in\nparagraph 4753 (a). The budget shall be detailed for the overall DSM plan and\nfor each program for each year and shall be categorized into:\n(I) planning and design costs;\n(II) administrative and DSM program delivery costs, including labor costs\nreflecting compliance with all applicable labor standards set forth in § 40-\n3.2-105.5, C.R.S.;\n(III) advertising and promotional costs, including DSM education;\n(IV) customer incentive costs;\n\n(V) equipment and installation costs;\n(VI) measurement and verification (M & V) costs; and\n(VII) miscellaneous costs.\n(l) The budget shall explain anticipated increases/decreases in financial resources\nand human resources from year to year.\n(m) A utility may spend more than the annual expenditure target established by the\nCommission up to 25 percent over the target, without being required to submit a\nproposed DSM plan amendment. A utility may submit a proposed DSM plan\namendment for approval when expenditures are in excess of 25 percent over the\nexpenditure target.\n(n) As a part of its DSM plan, each utility shall propose a DSM plan with a\nbenefit/cost value of unity (1.0) or greater, using a modified TRC test.\n(o) For the purposes of calculating and reviewing a modified TRC, the following\ncomponents shall be included. Forecasted DSM costs and benefits are used to\nestimate the cost-effectiveness of DSM measures to develop a cost-effective\nDSM portfolio.\n(I) Benefits shall include, but are not limited to, as applicable: the utility’s\navoided transmission and distribution capital cost savings associated with\nreductions or limited growth in design peak demand; energy costs; the\nparticipant’s avoided operating and maintenance costs; the valuation of\navoided greenhouse gas emissions; and non-energy benefits, as set forth\nin this rule 4753. The valuation of avoided greenhouse gas emissions\nshall include the social cost of carbon dioxide and the social cost of\nmethane, consistent with rule 4528.\n\n(II) Costs shall include utility and participant costs. The utility costs shall\ninclude the net present value of costs incurred in accordance with the\nbudget set forth in rule 4753. For comparative purposes, in addition to this\nbase case calculation of cost-effectiveness, the utility may also provide a\ncase that does not include the social costs of carbon dioxide and\nmethane. Forecasted DSM costs and benefits are used to estimate the\ncost effectiveness of DSM measures to develop a cost-effective DSM\nportfolio.\n(III) The initial TRC ratio, which excludes consideration of societal benefits,\nshall be multiplied by a factor established by the Commission in the\nutility’s strategic issues proceeding to reflect the value of the societal and\nnon-energy benefits. The result shall be the modified TRC. A utility may\npropose for approval a different factor for societal impacts, but must\nsubmit documentation substantiating the proposed value.\n(IV) A determination of cost-effectiveness using the modified TRC test by the\nCommission will ultimately be measured at the DSM portfolio level.\n(V) For purposes of evaluating a gas DSM program or measure that\nincorporates innovative technologies with the potential for significant\nimpact, such as energy-saving technologies that go beyond what is\nachievable using energy efficiency measures alone, the Commission may\nfind the program or measure cost-effective, even if its initial benefit-cost\nratio is not greater than 1.0 when calculated using currently available data\nand assumptions.\n(p) Measurement and verification (M & V) plan. The utility shall describe in complete\ndetail how it proposes to monitor and evaluate the implementation of its proposed\nprograms. The utility shall explain how it will accumulate and validate the\ninformation needed to measure the plan’s performance against the standards,\npursuant to rule 4755. The utility shall propose measurement and verification\nreporting sufficient to communicate results to the Commission in a detailed,\naccurate and timely basis.\n(q) If a utility files an application to open a DSM strategic issues proceeding pursuant\nto rule 4761, its subsequent DSM plan application shall include programs and\nmeasures to, at a minimum, meet the energy savings targets and policy goals\nestablished by the Commission in the strategic issues proceeding.\n\n(r) As a part of its DSM plan, each utility shall describe its consideration of\nincentives for customers to utilize behind-the-meter thermal renewable resources\nas defined in § 40-1-102(1.1), C.R.S. If the utility proposes to include such\nincentives in its DSM plan, the cost of such incentives shall be reflected in the\nbudget proposed under subparagraph (j)(IV) above.","truncated":false,"body_characters":10808}