860-030-0010 Cost Effectiveness (1) "Cost-effective," as defined in ORS 469.631(4), relates an energy conservation measure's cost, life cycle, and the cost of alternative energy facilities. An energy utility's cost-effectiveness calculations should be consistent with the utility's most recently acknowledged least-cost plan pursuant to Order No. 89-507. (2) Unless otherwise demonstrated in an acknowledged energy utility least-cost plan, the following energy conservation measures are deemed to be in all installations: (a) Caulking; (b) Weather stripping; (c) Timed (set-back) thermostats (except when used with heat pumps); and (d) Water heater, steam pipe, and hot and cold water pipe wraps. (3) Unless otherwise demonstrated in an acknowledged energy utility least-cost plan, the following energy conservation measures are deemed to be cost-effective when installed along with certain other energy conservation measures, as indicated: (a) Ground cover, when installed in conjunction with under-floor insulation; (b) Vapor barrier materials, when installed in conjunction with wall, ceiling, or under-floor insulation; (c) Dehumidifiers, when installed in conjunction with storm windows and doors, and caulking and weather stripping of all openings allowing infiltration; and (d) Attic ventilation, excluding power ventilators, when installed in conjunction with ceiling or attic insulation. (4) The following energy conservation measures shall be deemed to have the indicated life cycles: (a) Attic, ceiling, wall and under-floor insulation — 30 years. (b) Insulation of walls in heated basements — 30 years. (c) Insulation of heating system supply and return air ducts — 30 years. (d) Thermal doors — 30 years. (e) Storm windows — 15 years. (f) Windows meeting the requirements of Chapter 53 of the Oregon Residential Energy Code, and window replacements — 25 years. (g) Storm doors — 7 years. (h) Electronic furnace ignition (gas) — 10 years. (5) Within 30 days after approval of an energy utility's avoided-cost filing submitted in compliance with OAR 860-029-0040 or 860-030-0007, such utility shall submit for the Commission's approval the computations used to determine the cost effectiveness of weatherization measures. The computations shall include present worth of energy and capacity saved per unit for different life cycles, recognizing, where appropriate, line losses, administrative costs of conservation programs, and revenues from additional wholesale sales made possible by the conservation activity. At the same time, such utility shall file tariffs relating to payments for weatherization measures using the new cost-effectiveness computations, to become effective 30 days after submission. (6) Energy and capacity savings due to conservation shall be considered firm for purposes of the calculations in OAR 860-030-0010(5). The calculated costs as specified in section (5) of this rule shall be multiplied by 1.1 to determine the cost effectiveness of the conservation alternative. [Publications: Publications referenced are available from the Agency.] Statutory/Other Authority: ORS 183, 469, 756 & 757 Statutes/Other Implemented: ORS 756.040 & 469.631 - 469.645 History: PUC 7-2005, f. & cert. ef. 11-30-05 PUC 1-1998, f. & cert. ef. 1-12-98 PUC 3-1993, f. & cert. ef. 1-8-93 (Order No. 92-1792) PUC 2-1993, f. & cert. ef. 1-8-93 (Order No. 93-035) PUC 15-1985, f. & ef. 10-1-85 (Order No. 85-896) PUC 14-1985, f. & ef. 9-27-85 (Order No. 85-891) PUC 11A-1985(Temp), f. & ef. 7-16-85 (Order No. 85-639) PUC 10-1985, f. & ef. 7-5-85 (Order No. 85-619) PUC 2-1982, f. & ef. 2-26-82 (Order No. 82-130) PUC 11-1981(Temp), f. & ef. 10-30-81 (Order No. 81-778)