Arkansas Administrative Code › Agency 126 - PUBLIC SERVICE COMMISSION › Division 03 - Utilities Section › Rule 126.03.07-005 - Rules for Conservation and Energy Efficiency Programs

Current through Register Vol. 49, No. 6, June, 2024
Section 1
: Purpose
In the Energy Conservation Endorsement Act of 1977, Ark. Code
				Ann. §§
									23-3-401 to 405
				(2003), ("the Act"), the Arkansas General Assembly recognized that "enormous
				amounts of energy are wasted by consumers of all classes and economic levels
				due to inadequate insulation of buildings and other inefficiencies in the use
				of energy."1 The Act broadly defines "energy
				conservation programs and measures,"2 and states
				that "energy conservation programs and measures" are broadly defined and that
				"[i]t shall be considered a proper and essential function of public utilities
				regulated by the Arkansas Public Service Commission to engage in energy
				conservation programs, projects, and practices which conserve, as well as
				distribute, electrical energy and supplies of natural gas, oil, and other
				fuels."
Furthermore, the Act provides the Commission with the authority
				to "propose, develop, solicit, approve, require, implement, and monitor" energy
				efficiency programs "by utility companies" if the Commission finds that such
				programs and measures "will be beneficial to the ratepayers of such public
				utilities and to the utilities themselves."4 "At the
				time any such programs or measures are approved and ordered into effect" by the
				Commission, the Act requires that the affected utility also "be allowed to
				increase its rates or charges as necessary to recover any costs incurred by the
				public utility company as a result of its engaging in any such program or
				measure."5
Due to the current level and expected increases in energy
				prices for both infrastructure investment and commodity purchases, along with
				the minimal level of energy efficiency programs in Arkansas, Commission action
				regarding energy efficiency is necessary. Consequently, the Commission has
				developed these rules. These rules apply to the provision of both electricity
				and natural gas service subject to the jurisdiction of the Arkansas Public
				Service Commission.
Section
			 2
: Benefits and Objectives of Energy Efficiency
			 Programs
A. An overriding focus for
			 any energy efficiency initiative should be the benefits and objectives of the
			 initiative. The overall objectives of the initiative are to encourage and
			 enable utility customers to make the most efficient use of utility capacity and
			 energy and to discourage inefficient and wasteful use of energy. Objectives can
			 take the form of standards, codes, or programs. When proposing any one or a
			 combination of energy efficiency programs, standards, or codes, a utility shall
			 describe, in qualitative and quantitative terms, how its proposal furthers or
			 accomplishes any or all of the following objectives or ancillary benefits in
			 support of energy efficiency that are reasonably applicable to the utility's
			 proposal. Should the utility determine that its proposal does not accomplish or
			 meet one or more of the listed objectives or benefits, the utility shall
			 briefly explain why its proposal does not do so.
* Energy savings directly attributable to program
				activities;
* Long-term and permanent changes in behavior, attitudes,
				awareness, and knowledge about energy savings and use of energy efficient
				technologies in order to achieve energy savings;
* Permanent peak electric demand reduction;
* Energy cost savings and cost-effectiveness;
* Reliability enhancements;
* Energy security benefits;
* Environmental benefits;
* Economic development/competitiveness benefits;
* Increases in system-wide capacity;
* Accelerating the commercialization of advanced or emerging
				technologies;
* Improving affordability of energy for all customers;
				and
* Implementing programs in an efficient manner;
B. When providing information on
			 these objectives, utilities are directed to describe, in quantitative terms,
			 the benefits and costs of these different aspects of the program, standard, or
			 code, and to comment on the barriers that impede accomplishment of these energy
			 efficiency objectives and how to overcome these barriers. Utilities are also
			 encouraged to provide estimates of the energy efficiency potential (including
			 demand savings) in Arkansas associated with these options.