# Filing of DSM Strategic Issues Applications

- **operation:** document
- **citation:** 4 CCR 723-4 Rule 4761
- **title:** Filing of DSM Strategic Issues Applications
- **source type:** regulation
- **agency:** Colorado Public Utilities Commission
- **status:** current
- **official:** true
- **published on:** Not available
- **effective on:** Not available
- **summary:** (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 deman
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/co-ccr-4-723-4-4761.json
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- **app url:** https://regulus.evalyn.ai/document/co-ccr-4-723-4-4761
- **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) 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.
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