Section 137.09. Large energy customer self-directed energy efficiency programs.

 

(1)   Funding programs for large energy customers. The maximum amount of utility funding available in any one year for a large energy customer self-directed program is the energy utility revenues that would have been collected from the large energy customer under s. 196.374 (5) (b) , Stats., less the funds set aside under s. PSC 137.05 (2) for statewide renewable resource programs. The commission shall determine the annual funding level for each large energy customer. Upon receipt of this information, each energy utility with one or more large energy customers shall notify these customers of the funds available for self-directed programs.

(2)   Program requirements.

(a) A large energy customer seeking approval of a self-administered and self-funded energy efficiency program under 196.374 (2) (c), Stats., 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 for a large energy customer self-directed energy efficiency program under this section shall include:

1. An explanation of the program, including descriptions of targeted buildings, equipment and operations; of eligible energy efficiency measures; and of expected energy savings, itemized by technology.

2. Performance targets that are consistent with commission goals, policies and priorities.

3. A program time frame that is consistent with the statewide program year.

4. A program level cost-effectiveness analysis, consistent with par. (c) 3.

5. An administrative and program delivery budget for each year of operation.

6. A tracking and reporting system, as specified by the commission.

7. A measurement and verification plan.

8. Any other information the commission requests.

(c) Large energy customer self-directed programs under this subsection shall:

1. Reduce the on-site use of electricity or natural gas. To determine whether the program reduces energy or gas use, the large energy customer shall compare the facility's energy use with standard replacement technology under standard operating conditions, before improvements to existing facility or expansion, against the proposed facility efficiency improvements. The large energy customer's measurement and verification process is subject to the commission's approval.

2. Include measures that are environmentally sound, as determined by the commission.

3. Pass a program level test of cost-effectiveness, as determined by the commission.

4. Use retained utility revenues that would otherwise be collected for statewide energy efficiency programs from the customer to pay some or all of the incremental cost difference between standard efficiency replacement equipment or processes and the premium efficiency replacement equipment or processes that the large energy customer proposes to install. The program may also use retained utility revenues to purchase energy efficiency-related education, training, and facilitation services from statewide or utility-administered programs.

5. 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 large energy customer to contract with an evaluator. In that case, the commission shall oversee the contracting process and approve the large energy customer's selection of the independent third-party evaluator. The large energy customer shall pay the evaluation costs out of energy utility revenues that the large energy customer retains and sets aside for that purpose.

(d) The large energy customer with a self-directed program shall:

1. Retain energy utility revenues, for at least one year, to finance projects the large energy customer initiates and completely installs within the period for which utility revenues are retained.

2. Establish performance goals, as approved by the commission. At a minimum, the large energy customer shall provide quarterly activity reports and annual performance results, using a reporting format approved by the commission. The large energy customer shall also provide all performance-related information and data to the commission that it requests.

(3)   Prior approval of requests for large energy customer self-directed programs.

(a) A large energy customer may only administer and fund a self-directed program under this section with the commission's prior approval. The commission shall issue its decision to approve, deny, or modify a large energy customer's proposal to administer and fund a self-directed program under this section in writing, within 40 working days after receiving the proposal.

(b) The commission shall consider each of the following standards when deciding whether to approve a large energy customer's self-directed program:

1. The standards specified in s. PSC 137.08 (4) (b) 1. to 4. , 6. , and 7.

2. The minimum requirements specified in sub. (2) (c) .

(c) If the commission denies or modifies a large energy customer's proposed self-directed program it shall explain its reasons in writing. The large energy customer may revise and resubmit a proposed program the commission has modified or denied.

(4)   Modifying or discontinuing a large energy customer self-directed program. A large energy customer may request the commission to authorize the modification or discontinuation of an energy efficiency program implemented under this section at any time. No large energy customer may modify or discontinue a self-directed program without the commission's prior approval.

(5)   Return of funds. The commission may require that the large energy customer deliver any unspent funds to the energy utilities, to fund the statewide programs.

History: CR 06-139 : cr. Register July 2007 No. 619 , eff. 8-1-07.