Filing of DSM Strategic Issues Applications

(a)Commencing in 2022, and no less frequently than every four years thereafter unless otherwise directed by the Commission, each utility shall file an application to open a DSM strategic issues proceeding. Strategic issues proceedings shall result in the development of energy savings and peak demand reduction goals to be achieved by the utility, taking into account its potential for cost-effective DSM as well as the State of Colorado's greenhouse gas reduction goals in accordance with § 25-7-102(2)(g), C.R.S.#

(b)In its application to open a DSM strategic issues proceeding, the utility shall provide:#

(I)an estimated budget, corresponding energy savings and peak capacity reduction goals for all DSM programs;#

(II)funding and cost-recovery mechanisms;#

(III)a proposed methodology for estimating peak demand savings and the resulting cost savings;#

(IV)an analysis of the comparative economics of DSM measures and programs, distinguished by the following:#

(A)new construction;#

(B)existing homes and businesses; and#

(C)all building types;#

(V)an analysis of the comparative economics of DSM measures and programs, particularly targeted at the weatherization of existing homes, and beneficial electrification;#

(VI)a proposed financial bonus structure for DSM programs implemented by the utility, including any methodologies or formulas used to determine the bonus under that structure;#

(VII)for only combined electric and gas utilities, and only for new construction, a narrative analysis of the impact of the proposed gas DSM measures on the comparative economics of beneficial electrification versus the gas alternative; and#

(VIII)a cost effectiveness methodology and assumptions that will be in effect during the time period of the goals and budgets set in the strategic issues proceeding.#

(c)If the filing of an application to open a strategic issues proceeding overlaps with the filing of a DSM plan application pursuant to paragraph 4752(e), a utility with 250,000 or more full-service customers may request Commission approval for an extension of its currently effective DSM plan until the strategic issues proceeding is concluded. The utility will then file a new DSM plan application with proposed programs and measures to meet the energy savings goals and policy goals established by the Commission in the strategic issues proceeding.#

(d)Notwithstanding the requirements in paragraph 4761(a), for gas utilities with fewer than 250,000 full-service customers, the energy savings targets, a budget for gas DSM program expenditures, funding and cost-recovery mechanisms, and a financial bonus structure may be established in the same proceeding in which the utility's DSM plan is submitted for approval.#

(e)In its decision addressing the utility's application, the Commission will establish:#

(I)savings goals for the utility to be addressed by DSM plan filings in accordance with rule 4753;#

(II)an estimated budget for DSM program expenditures commensurate with the savings goals;#

(III)a modifying factor to include in the TRC test to account for non-energy societal benefits (excluding the benefits incorporated in the social cost of carbon, the social cost of methane, and other provisions in these rules; and#

(IV)a structure for any gas DSM bonus awarded to the utility in accordance with rule 4760. The bonus structure shall reward the utility's investment in cost-effective DSM programs and shall result in an annual bonus amount that reflects the extent to which the utility has achieved the targets established in subparagraphs (I) and (II) above.#