{"operation":"document","citation":"4 CCR 723-4 Rule 4760","title":"Gas DSM Bonus (G-DSM Bonus)","source_type":"regulation","agency":"Colorado Public Utilities Commission","status":"current","official":true,"published_on":null,"effective_on":null,"summary":"(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 util","machine_formats":{"json":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4760.json","markdown":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4760.md"},"app_url":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4760","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":"(a) The Commission shall determine a financial bonus structure for gas DSM. The\nbonus amount shall be a percentage net economic benefits resulting from a DSM\nplan over the period under review, with the specific structure and calculation\nmechanism of the bonus determined by the Commission in the utility’s strategic\nissues proceeding.\n(b) The Commission shall review each G-DSM bonus calculation and shall\ndetermine the level of bonus, if any, for which the utility is eligible consistent with\nthe bonus framework established in the utility’s most recent strategic issues\nproceeding. The collection on any G-DSM bonus awarded will be apportioned\nbetween residential and nonresidential customers based on the proportion of\nresidential and nonresidential net economic benefits used to calculate the G-\nDSM bonus.\n(c) The G-DSM bonus, as modified and approved by the Commission, shall not\ncount against a gas utility’s authorized rate of return or be considered as net\noperating earnings in rate proceedings.\n(d) In the G-DSM bonus filing, the utility shall submit to the Commission the\nfollowing, at a minimum:\n(I) documented expenditures on DSM programs for the current G-DSMCA\nperiod;\n(II) energy savings and peak demand reductions for the calendar year for\nwhich the bonus is to be awarded estimated following and the techniques\napproved in the DSM plan. The utility shall explain whether the actual gas\nsavings are validated through the measurement and verification process\nas approved in the utility’s DSM plan;\n\n(III) estimated cost-effectiveness of program expenditures for the current G-\nDSMCA period in terms of the amount of gas saved per unit of program\nexpenditures;\n(IV) actual gas savings and the techniques used to calculate these gas\nsavings for the prior G-DSMCA period. The utility shall explain whether the\nactual gas savings are validated through the measurement and verification\nprocess, pursuant to rule 4755;\n(V) actual cost-effectiveness of program expenditures for the prior G-DSMCA\nperiod in terms of the amount of gas saved per unit of program\nexpenditures. The utility shall explain whether the actual cost\neffectiveness of program expenditures is validated through the\nmeasurement and verification process, pursuant to rule 4755;\n(VI) proposed tariffs containing rates to collect the bonus over 12 months; and\n(VII) any additional information required by the Commission in the utility’s most\nrecent strategic issues proceeding.\n(e) For the purposes of calculating the bonus, the costs and benefits associated with\nan income-qualified DSM program may be excluded from the calculation of the\nnet economic benefits for the entire DSM portfolio if the modified TRC value for\nthe income-qualified program is below 1.0. If the modified TRC value for the\nincome-qualified program is above 1.0, the Commission may exclude the net\neconomic benefits attributable to income-qualified programs from the bonus if the\nutility has met its targets for income-qualified programs.\n(f) For the purpose of calculating the bonus, the modified TRC shall be calculated in\naccordance with paragraph 4753(o), unless otherwise specified in paragraph\n4760(e).\n(g) The maximum bonus is 20 percent of net economic benefits or 25 percent of\nexpenditures, whichever is less, or any other incentive cap set by the\nCommission in the utility’s strategic issues proceeding.\n(h) Any awarded bonus shall be authorized as a supplement to a utility and not count\nagainst its authorized rate of return or be considered in rate proceedings. The\nawarded bonus shall be recovered through the G-DSMCA over a 12-month\nperiod after approval of the bonus.\n(i) Any combined electric and gas utility seeking a G-DSM bonus for new residential\nor commercial construction shall provide a narrative discussion that explains why\nthat gas DSM program does not incent additional gas usage as compared to a\nbeneficial electrification alternative.\n(j) Accounting for G-DSM bonus shall follow what has been prescribed for G-\nDSMCA costs, specifically in regard to interest on over- and under- recovery. A\n\nseparate sub-account in Account No. 186 shall be created for any deferred G-\nDSM bonus amount.\n(k) If the Commission finds that the actual performance varies from performance\nvalues used to calculate the G-DSM bonus in rule 4754, then an adjustment shall\nbe made to the amount of G-DSM bonus award. Any true-up in G-DSM bonus\nwill be implemented on a prospective basis.","truncated":false,"body_characters":4443}