Gas DSM Bonus (G-DSM Bonus)

(a)The Commission shall determine a financial bonus structure for gas DSM. The bonus amount shall be a percentage net economic benefits resulting from a DSM plan over the period under review, with the specific structure and calculation mechanism of the bonus determined by the Commission in the utility's strategic issues proceeding.#

(b)The Commission shall review each G-DSM bonus calculation and shall determine the level of bonus, if any, for which the utility is eligible consistent with the bonus framework established in the utility's most recent strategic issues proceeding. The collection on any G-DSM bonus awarded will be apportioned between residential and nonresidential customers based on the proportion of residential and nonresidential net economic benefits used to calculate the G- DSM bonus.#

(c)The G-DSM bonus, as modified and approved by the Commission, shall not count against a gas utility's authorized rate of return or be considered as net operating earnings in rate proceedings.#

(d)In the G-DSM bonus filing, the utility shall submit to the Commission the following, at a minimum:#

(I)documented expenditures on DSM programs for the current G-DSMCA period;#

(II)energy savings and peak demand reductions for the calendar year for which the bonus is to be awarded estimated following and the techniques approved in the DSM plan. The utility shall explain whether the actual gas savings are validated through the measurement and verification process as approved in the utility's DSM plan;#

(III)estimated cost-effectiveness of program expenditures for the current G- DSMCA period in terms of the amount of gas saved per unit of program expenditures;#

(IV)actual gas savings and the techniques used to calculate these gas savings for the prior G-DSMCA period. The utility shall explain whether the actual gas savings are validated through the measurement and verification process, pursuant to rule 4755;#

(V)actual cost-effectiveness of program expenditures for the prior G-DSMCA period in terms of the amount of gas saved per unit of program expenditures. The utility shall explain whether the actual cost effectiveness of program expenditures is validated through the measurement and verification process, pursuant to rule 4755;#

(VI)proposed tariffs containing rates to collect the bonus over 12 months; and#

(VII)any additional information required by the Commission in the utility's most recent strategic issues proceeding.#

(e)For the purposes of calculating the bonus, the costs and benefits associated with an income-qualified DSM program may be excluded from the calculation of the net economic benefits for the entire DSM portfolio if the modified TRC value for the income-qualified program is below 1.0. If the modified TRC value for the income-qualified program is above 1.0, the Commission may exclude the net economic benefits attributable to income-qualified programs from the bonus if the utility has met its targets for income-qualified programs.#

(f)For the purpose of calculating the bonus, the modified TRC shall be calculated in accordance with paragraph 4753(o), unless otherwise specified in paragraph 4760(e).#

(g)The maximum bonus is 20 percent of net economic benefits or 25 percent of expenditures, whichever is less, or any other incentive cap set by the Commission in the utility's strategic issues proceeding.#

(h)Any awarded bonus shall be authorized as a supplement to a utility and not count against its authorized rate of return or be considered in rate proceedings. The awarded bonus shall be recovered through the G-DSMCA over a 12-month period after approval of the bonus.#

(i)Any combined electric and gas utility seeking a G-DSM bonus for new residential or commercial construction shall provide a narrative discussion that explains why that gas DSM program does not incent additional gas usage as compared to a beneficial electrification alternative.#

(j)Accounting for G-DSM bonus shall follow what has been prescribed for G- DSMCA costs, specifically in regard to interest on over- and under- recovery. A separate sub-account in Account No. 186 shall be created for any deferred G- DSM bonus amount.#

(k)If the Commission finds that the actual performance varies from performance values used to calculate the G-DSM bonus in rule 4754, then an adjustment shall be made to the amount of G-DSM bonus award. Any true-up in G-DSM bonus will be implemented on a prospective basis.#