Arizona Administrative Code › Title 14 - PUBLIC SERVICE CORPORATIONS; CORPORATIONS AND ASSOCIATIONS; SECURITIES REGULATION › Chapter 2 - CORPORATION COMMISSION - FIXED UTILITIES › Article 25 - GAS UTILITY ENERGY EFFICIENCY STANDARDS › Section R14-2-2504 - Energy Efficiency Standards

Current through Register Vol. 30, No. 28, July 12, 2024
A. Except as provided in
				R14-2-2518
				and R14-2-2519, in order to ensure reliable gas service at reasonable ratepayer
				rates and costs, by December 31, 2020, an affected utility shall, through DSM
				and RET programs, achieve cumulative annual energy savings, expressed as therms
				or therm equivalents, equal to at least 6% of the affected utility's retail gas
				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 can 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
0.50%
2012
1.20%
2013
1.80%
2014
2.40%
2015
3.00%
2016
3.60%
2017
4.20%
2018
4.80%
2019
5.40%
2020
6.00%
Table 2. Illustrative Example of Calculating Required
				  Energy Savings
CALENDAR YEAR
A
RETAIL SALES
(therms)
B
ENERGY EFFICIENCY STANDARD
C
REQUIRED CUMULATIVE ENERGY SAVINGS
(therms or therm equivalents)
(B of current year × A of prior year)
2010
100,000,000
0
2011
97,500,000
0.50%
500,000
2012
94,870,000
1.20%
1,170,000
2013
92,411,540
1.80%
1,707,660
2014
90,018,939
2.40%
2,217,877
2015
87,691,512
3.00%
2,700,568
2016
85,427,344
3.60%
3,156,894
2017
83,224,605
4.20%
3,587,948
2018
81,081,521
4.80%
3,994,781
2019
78,996,374
5.40%
4,378,402
2020
76,967,498
6.00%
4,739,782
C.
				An affected utility may count energy savings resulting from DSM and RET
				programs to meet the energy efficiency standard. At least 75% of the energy
				efficiency standard for each year listed in Table 1 shall be achieved through
				DSM energy efficiency programs.
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 DSM
				programs shall not exceed 1% of the affected utility's retail energy sales in
				calendar year 2005. A portion of the total energy savings credit for these
				pre-rules 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 energy efficiency standard up
				to one-third of the energy savings resulting from energy efficiency building
				codes and up to one-third of the energy savings resulting from energy
				efficiency appliance standards, if the energy savings are quantified and
				reported through a measurement and evaluation study undertaken by the affected
				utility, and the affected utility demonstrates and documents its efforts in
				support of the adoption or implementation of the energy efficiency building
				codes and appliance standards.
F.
				An affected utility may count a customer's energy savings resulting from
				self-direction toward meeting the energy efficiency standard.
G. An affected utility may count toward
				meeting the energy efficiency standard all energy savings resulting from the
				affected utility's sponsorship of RET projects that displace gas. An affected
				utility may also count toward meeting the energy efficiency standard all energy
				savings resulting from other RET projects that are not sponsored by the
				affected utility, if the affected utility can demonstrate that its efforts
				facilitated the placement and completion of the RET project.
H. An affected utility's energy savings
				resulting from efficiency improvements to its delivery system may not be
				counted toward meeting the energy efficiency 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
				measure or RET 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 (therms)
Required Cumulative Annual Energy Savings (therms or
							 therm equivalents)
Total
6.00%
78,996,374
4,739,782
Breakdown of Savings and Credits Used To Meet 2020
							 Standard:
Cumulative Annual Energy Savings Or Credit
							 (therms)
Pre-rules Savings Credit
R14-2-2504(D)
359,545*
Building Codes and Appliance Standards
R14-2-2504(E)
425,000
Self-direction
R14-2-2504(F)
27,000
RET
R14-2-2504(G)
25,000
CHP
R14-2-2501(10) and
R14-2-2504(C)
135,000
Energy Efficiency
R14-2-2504(C)
At least 75%
3,768,237
Total
4,739,782
* The total pre-rules savings credit shall be capped at 1% 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.