(1) DEFINITION. In
this section, "large commercial, industrial, institutional, or agricultural
customer" has the same meaning as "large energy customer" under s.
196.374(1)
(em), Stats., unless the commission specifies
a different definition by order.
(2) FUNDING ENERGY EFFICIENCY PROGRAMS FOR
LARGE COMMERCIAL, INDUSTRIAL, INSTITUTIONAL, OR AGRICULTURAL CUSTOMERS. The
funding available in any year for all the energy efficiency programs the
commission has authorized an energy utility to offer to its large commercial,
industrial, institutional, or agricultural customers under s.
196.374(2)
(b) 1, Stats., shall equal the revenues
collected from the energy utility's customers who are eligible for the
utility-administered programs, less the funds set aside under s.
PSC
137.05(2) for statewide renewable
resource programs. The commission shall determine the annual funding level
available for these programs and inform energy utilities in writing at least 9
months prior to the beginning of the statewide program year.
(3) ENERGY EFFICIENCY PROGRAMS FOR LARGE
COMMERCIAL, INDUSTRIAL, INSTITUTIONAL, OR AGRICULTURAL CUSTOMERS.
(a) An energy utility requesting to
administer or fund one or more energy efficiency programs for large commercial,
industrial, institutional, or agricultural customers in its service territory
under this section may file a request with the commission at any time. The
commission shall consider requests it receives at least 6 months before the
start of the statewide energy efficiency and renewable resource program year
for implementation in that program year.
(b) Each request to administer or fund an
energy efficiency program under this section shall include:
1. A description of the program that includes
the target market, eligible measures, delivery strategy, marketing and
communications strategy, incentive strategy and potential market
effects.
2. A plan prepared jointly
with the program administrator that describes how statewide and
utility-administered programs will be coordinated with large energy customer
self-directed programs, ordered programs, and voluntary utility programs
offered during the same period.
3.
A description of the program's consistency with the commission's most recent
study of available energy efficiency savings.
4. Annual and multi-year performance targets
that are consistent with commission goals, policies, and priorities.
5. A program time frame that is consistent
with the statewide program year.
6.
A portfolio and program level cost-effectiveness analysis that is consistent
with par. (c) 5.
7. An
administrative and program delivery budget for the first year of
operation.
8. Any other information
the commission requests.
(c) Each utility-administered program under
this section shall:
1. Be limited to offering
energy efficiency programs to large commercial, industrial, institutional, or
agricultural customers in the energy utility's service territory. If a customer
is participating in a self-directed program under s.
PSC
137.09, that customer's participation in any
utility-administered program under this section shall be limited to the amount
of revenues that the customer contributes to the utility-administered program
through s.
196.374(3)
(b) 2, Stats.
2. Provide an equivalent opportunity for all
eligible customers to participate. Utility-administered programs shall
coordinate with statewide programs and with large energy customer self-directed
programs to avoid duplication of effort and of program offerings in overlapping
territories.
3. Be evaluated by an
independent third party. The commission shall contract with the independent
third-party evaluator, unless it determines that it is reasonable to allow the
energy utility to contract with the evaluator. In that case the commission
shall oversee the contracting process and approve the energy utility's
selection of the independent third-party evaluator. The energy utility shall
pay for the evaluation of the program, as determined by the commission, from
retained utility revenues that the energy utility would otherwise have expended
on statewide energy efficiency programs.
4. Be designed in a manner that prevents the
energy utility or any of its affiliates from selling or installing energy
efficiency processes, equipment, or appliances.
5. Pass a portfolio level test of net
cost-effectiveness, as determined by the commission. The energy utility shall
screen for net cost-effectiveness at least once a year.
6. Result in environmental benefits, as
identified by the commission, either on site or at the generation
level.
(d) The energy
utility shall:
1. Assign priority status to
implementing programs that reduce growth in electric and natural gas demand and
usage, facilitate energy efficiency market development, assist market providers
in achieving higher levels of energy efficiency, promote energy reliability and
adequacy, avoid adverse environmental impacts from the use of energy, and
promote rural economic development.
2. Establish annual and multi-year
performance goals that are consistent with the program goals, priorities, and
measurable targets established under s.
196.374(3)
(b) 1, Stats. At a minimum, the energy
utility shall provide quarterly activity reports and semiannual performance
reports to the commission.
3. Using
the commission's database tracking and reporting system, collect and record for
each program, by customer class:
a. KW, kWH,
and therm savings.
b. Performance
metrics.
c. Non-energy
benefits.
d. All administrative and
program delivery costs.
e. Any
other information the commission requests.
4. Provide all information and data the
energy utility collects for its utility-administered programs to the commission
and the independent third-party evaluator upon request.
(e) The commission shall consider all of the
following when deciding whether to approve a program proposed under par. (a):
1. Whether the program is in the public
interest.
2. Whether the program
meets the minimum requirements of par. (c).
3. Whether the program includes appropriate
energy efficiency measures.
4.
Whether the proposed budget is within the level of funds available.
5. The likelihood the program will achieve
its goals.
6. The level of
coordination with statewide programs under s.
PSC
137.05, voluntary utility programs under s.
PSC
137.08, large energy customer self-directed programs
under s.
PSC
137.09, and ordered programs and the potential for
disrupting the overall ability of energy efficiency efforts in the state to
meet the goals, priorities, and measurable targets established under s.
196.374(3)
(b) 1, Stats.
(4) APPROVAL, DENIAL OR MODIFICATION OF
REQUESTS FOR UTILITY-ADMINISTERED PROGRAMS. An energy utility may only
administer or fund a program under this section with the commission's prior
approval. The commission shall issue its decision to approve, deny, or modify
an energy utility's proposal to administer or fund a program under this section
in writing, within 40 working days after receiving the proposal. If the
commission denies or modifies a proposed utility-administered program it shall
explain its reasons. The energy utility may revise and resubmit a proposed
program that the commission has denied.
(5) MODIFYING OR DISCONTINUING A
UTILITY-ADMINISTERED PROGRAM OR AN ORDERED PROGRAM.
(a) An energy utility may request the
commission to authorize the modification or discontinuation of a program it
administers or funds under this section at any time. No energy utility may
modify or discontinue such a program without the commission's prior
approval.
(b) Requests for
discontinuation of an ordered program shall be made as part of a proceeding the
commission conducts under 196.374(3) (b) 1., Stats.
(6) RETURN OF FUNDS. The commission may
require that the energy utility deliver any unspent funds of an energy
efficiency program approved under this section to the energy utilities, to fund
the statewide programs.
