{"operation":"document","citation":"4 CCR 723-4 Rule 4757","title":"Funding and Cost Recovery Mechanism","source_type":"regulation","agency":"Colorado Public Utilities Commission","status":"current","official":true,"published_on":null,"effective_on":null,"summary":"The 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 basi","machine_formats":{"json":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4757.json","markdown":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4757.md"},"app_url":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4757","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":"The purpose of the G-DSMCA is to enable utilities to recover prudently incurred gas\nDSM program expenses without requiring a change in their base rates for gas sales. All\nsuch costs, plus any G-DSM bonus approved by the Commission, shall be recovered\nthrough the G-DSMCA that is set on an annual basis, and collected from July 1 through\nJune 30. The G-DSMCA allows for prospective recovery of prudently incurred costs of\nDSM programs within the DSM program expenditure target approved by the\nCommission in order to provide for funding of the utility’s DSM programs, as well as\nrecovery of deferred G-DSMCA costs, without having to file a rate case.\n(a) A utility may spend a disproportionate share of total expenditures on one or more\nclasses of customers, provided, however, that cost recovery for programs\ndirected at residential customers are to be collected from residential customers\nonly and that cost recovery for programs directed at nonresidential customers are\nto be collected from nonresidential customers only, except as provided for in\nparagraph 4757(f).\n(b) The utility may recover its DSM program expenditures either through expensing\nor by adding DSM program expenditures to base rates as a part of, or outside of,\na rate case, with an amortization period as set forth in rule 4756.\n(c) There shall be no financial penalty assessed on a utility for failing to reach its\napproved DSM program expenditure target, nor shall there be a bonus simply for\nmeeting its DSM program expenditure target. All prudently incurred expenditures\nfor the utility’s portfolio of DSM programs are recoverable. However, the portion\nof costs yielding a modified TRC test value below 1.0 loses its presumption of\nprudence and is subject to review.\n(d) Amounts not spent under the DSM program expenditure target shall not roll-over\nto the next DSM period.\n(e) A utility has the discretion and the responsibility of managing the portfolio of DSM\nprograms to meet the benefit to cost ratio and the energy and savings targets. In\nimplementing DSM programs, a utility shall use reasonable efforts to maximize\nenergy savings consistent with the approved DSM plan.\n\n(f) A utility may continue DSM programs that were in existence on or before May 22,\n2007, the effective date of § 40-3.2-103, C.R.S., concerning measures to\npromote energy efficiency, and shall not be required to obtain approval from the\nCommission for recovery of costs associated with such programs. Any new\nexpenditure for such programs must be included in the annual DSM plan filing\nand G-DSMCA application. Existing low-income DSM programs that recover\ncosts from all customer classes shall continue such recovery.\n(g) A utility shall file a request to adjust its G-DSMCA factor either through an\napplication or an advice letter and tariffs, pursuant to the relevant provisions of\ntitle 40, articles 1 through 7 of the Colorado Public Utilities Law and of the\nCommission rules. The G-DSMCA shall be filed pursuant to the schedule\nprovided in rule 4752.\n(h) The G-DSMCA filing shall include information and attachments as required in\nrule 4758. If the M & V evaluation required by rule 4755 yields benefit/costs test\nresults that impact the allowable recovery of costs or currently approved bonus,\nthen the utility shall include such adjustments in the G-DSMCA filing and tariffs.\n(i) If the projected DSM program costs have changed from those used to calculate\nthe currently effective G-DSMCA cost or if a utility’s deferred G-DSMCA cost\nbalance increases or decreases sufficiently, the utility may file an application to\nrevise its currently effective G-DSMCA factor to reflect such changes, provided\nthat the resulting change to the G-DSMCA factor equates to a base rate change\nof at least one cent ($0.01) per Mcf or Dth. A utility has the burden of proof to\njustify any interim G-DSMCA filings and the Commission has the discretion to\nconsolidate the interim G-DSMCA filing with the next regularly scheduled annual\nG-DSMCA filing.\n(j) Applicability of the G-DSMCA factor. The G-DSMCA factor shall be separately\ncalculated and applied to the utility sales gas base rate schedules of residential\nand non-residential customers.\n(k) Return on DSM program expenditures to be amortized. For utilities that choose\nto amortize the DSM program expenditure, the balance of a utility’s investments\nin cost-effective DSM programs shall earn a return equal to the utility’s current\nafter-tax weighted average cost of capital.\n(l) Interest on under- or over-recovery. The amount of net interest accrued on the\naverage monthly balance in sub-accounts of Account No. 186 (whether positive\nor negative), is determined by multiplying the monthly balance by an interest rate\nequal to the Commission-authorized after-tax weighted average cost of capital.\n(m) Calculation of the G-DSMCA factor. The G-DSMCA factor shall be calculated\nseparately for residential and non-residential customers to at least the accuracy\nof two significant places.","truncated":false,"body_characters":4982}