Arizona Administrative Code › Title 14 - PUBLIC SERVICE CORPORATIONS; CORPORATIONS AND ASSOCIATIONS; SECURITIES REGULATION › Chapter 2 - CORPORATION COMMISSION - FIXED UTILITIES › Article 24 - ELECTRIC ENERGY EFFICIENCY STANDARDS › Section R14-2-2404 - Energy Efficiency Standards

Current through Register Vol. 30, No. 28, July 12, 2024
A. Except as provided in
				R14-2-2418,
				in order to ensure reliable electric service at reasonable ratepayer rates and
				costs, by December 31, 2020, an affected utility shall, through cost-effective
				DSM energy efficiency programs, achieve cumulative annual energy savings,
				measured in kWh, equivalent to at least 22% of the affected utility's retail
				electric energy sales for calendar year 2019.
B. An affected utility shall, by the end of
				each calendar year, meet at least the cumulative annual energy efficiency
				standard listed in Table 1 for that calendar year. An illustrative example of
				how the required energy savings would be calculated is shown in Table 2. An
				illustrative example of how the standard could be met in 2020 is shown in Table
				4.
Table 1. Energy Efficiency Standard
CALENDAR YEAR
ENERGY EFFICIENCY STANDARD
(Cumulative Annual Energy Savings by the End of Each
							 Calendar Year as a Percentage of the Retail Energy Sales in the Prior Calendar
							 Year)
2011
1.25%
2012
3.00%
2013
5.00%
2014
7.25%
2015
9.50%
2016
12.00%
2017
14.50%
2018
17.00%
2019
19.50%
2020
22.00%
Table 2. Illustrative Example of Calculating Required
				  Energy Savings
CALENDAR YEAR
A
RETAIL SALES
(kWh)
B
ENERGY EFFICIENCY STANDARD
C
REQUIRED CUMULATIVE ENERGY SAVINGS
(B of current year × A of prior year)
2010
100,000,000
0
2011
100,750,000
1.25%
1,250,000
2012
101,017,500
3.00%
3,022,500
2013
101,069,925
5.00%
5,050,875
2014
100,915,646
7.25%
7,327,570
2015
100,821,094
9.50%
9,586,986
2016
100,517,711
12.00%
12,098,531
2017
100,293,499
14.50%
14,575,068
2018
100,116,043
17.00%
17,049,895
2019
99,986,628
19.50%
19,522,628
2020
99,902,384
22.00%
21,997,058
C.
				An affected utility's measured reductions in peak demand resulting from
				cost-effective demand response and load management programs may comprise up to
				two percentage points of the 22% energy efficiency standard, with peak demand
				reduction capability from demand response converted to an annual energy savings
				equivalent based on an assumed 50% annual load factor. The credit for demand
				response and load management peak demand reductions shall not exceed 10% of the
				energy efficiency standard set forth in subsection (B) for any year. The
				measured reductions in peak demand occurring during a calendar year after the
				effective date of this Article may be counted for that calendar year even if
				the demand response or load management program resulting in the reductions was
				implemented prior to the effective date of this Article.
D. An affected utility's energy savings
				resulting from DSM energy efficiency programs implemented before the effective
				date of this Article, but after 2004, may be credited toward meeting the energy
				efficiency standard set forth in subsection (B). The total energy savings
				credit for these pre-rules energy efficiency programs shall not exceed 4% of
				the affected utility's retail energy sales in calendar year 2005. A portion of
				the total energy savings credit for these pre-rules energy efficiency programs
				may be applied each year, from 2016 through 2020, as listed in Table 3, Column
				A.
Table 3. Credit for Pre-Rules Energy
				  Savings
CALENDAR YEAR
A
CREDIT FOR THE PRE-RULES ENERGY SAVINGS APPLIED IN
							 EACH YEAR
(Percentage of the Total Eligible Pre-Rules
							 Cumulative Annual Energy Savings That Shall Be Applied in the Year)
B
CUMULATIVE APPLICATION OF THE CREDIT FOR THE
							 PRE-RULES ENERGY SAVINGS IN 2016-2020
(Percentage of the Total Eligible Pre-Rules
							 Cumulative Annual Energy Savings That Are Credited by the End of Each
							 Year)
2016
7.5%
7.5%
2017
15.0%
22.5%
2018
20.0%
42.5%
2019
25.0%
67.5%
2020
32.5%
100.0%
E.
				An affected utility may count toward meeting the standard up to one third of
				the energy savings, resulting from energy efficiency building codes, that are
				quantified and reported through a measurement and evaluation study undertaken
				by the affected utility.
F. An
				affected utility may count the energy savings from combined heat and power
				(CHP) installations that do not qualify under the Renewable Energy Standard
				toward meeting the energy efficiency standard.
G. An affected utility may count a customer's
				energy savings resulting from self-direction toward meeting the
				standard.
H. An affected utility's
				energy savings resulting from efficiency improvements to its delivery system
				may not be counted toward meeting the standard.
I. An affected utility's energy savings used
				to meet the energy efficiency standard will be assumed to continue through the
				year 2020 or, if expiring before the year 2020, to be replaced with a DSM
				energy efficiency program having at least the same level of efficiency.
Table 4. Illustrative Example of How the Energy
				  Standard Could Be Met in 2020
2020 Energy Efficiency Standard
2019 Retail Sales (kWh)
Required Cumulative Annual Energy Savings
							 (kWh)
Total
22.00%
99,986,628
21,997,058
Breakdown of Savings and Credits Used To Meet 2020
							 Standard:
Cumulative Annual Energy Savings or Credit
							 (kWh)
Demand Response Credit
R14-2-2404(C)
Up to 2.00%
1,999,733
Pre-rules Savings Credit
R14-2-2404(D)
1,100,000*
Building Code
R14-2-2404(E)
1,000,000
CHP
R14-2-2404(F)
500,000
Self-direction
R14-2-2404(G)
100,000
Energy Efficiency
R14-2-2404(A)
17,297,325
Total
21,997,058
* The total pre-rules savings credit is capped at 4%
							 of 2005 retail energy sales, and the total credit is allocated over five years
							 from 2016 to 2020. The credit shown above represents an estimate of the portion
							 of the total credit that can be taken in 2020, or 32.5% of the total credit
							 allowed.