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 R14-2-2401 - Definitions

Current through Register Vol. 30, No. 28, July 12, 2024
In this Article, unless otherwise specified:
1. "Adjustment mechanism" means a Commission-approved
				  provision in an affected utility's rate schedule allowing the affected utility
				  to increase and decrease a certain rate or rates, in an established manner,
				  when increases and decreases in specific costs are incurred by the affected
				  utility.
2. "Affected utility" means a public service corporation that
				  provides electric service to retail customers in Arizona.
3. "Baseline" means the level of electricity demand,
				  electricity consumption, and associated expenses estimated to occur in the
				  absence of a specific DSM program, determined as provided in
				  R14-2-2413.
4. "CHP" means combined heat and power, which is using a
				  primary energy source to simultaneously produce electrical energy and useful
				  process heat.
5. "Commission" means the Arizona Corporation
				  Commission.
6. "Cost-effective" means that total incremental benefits
				  from a DSM measure or DSM program exceed total incremental costs over the life
				  of the DSM measure, as determined under
				  R14-2-2412.
7. "Customer" means the person or entity in whose name
				  service is rendered to a single contiguous field, location, or facility,
				  regardless of the number of meters at the field, location, or facility.
8. "Delivery system" means the infrastructure through which
				  an affected utility transmits and then distributes electrical energy to its
				  customers.
9. "Demand savings" means the load reduction, measured in kW,
				  occurring during a relevant peak period or periods as a direct result of energy
				  efficiency and demand response programs.
10. "Demand response" means modification of customers'
				  electricity consumption patterns, affecting the timing or quantity of customer
				  demand and usage, achieved through intentional actions taken by an affected
				  utility or customer because of changes in prices, market conditions, or threats
				  to system reliability.
11. "Distributed generation" means the production of
				  electricity on the customer's side of the meter, for use by the customer,
				  through a process such as CHP.
12. "DSM" means demand-side management, the implementation
				  and maintenance of one or more DSM programs.
13. "DSM measure" means any material, device, technology,
				  educational program, pricing option, practice, or facility alteration designed
				  to result in reduced peak demand, increased energy efficiency, or shifting of
				  electricity consumption to off-peak periods and includes CHP used to displace
				  space heating, water heating, or another load.
14. "DSM program" means one or more DSM measures provided as
				  part of a single offering to customers.
15. "DSM tariff" means a Commission-approved schedule of
				  rates designed to recover an affected utility's reasonable and prudent costs of
				  complying with this Article.
16. "Electric utility" means a public service corporation
				  providing electric service to the public.
17. "Energy efficiency" means the production or delivery of
				  an equivalent level and quality of end-use electric service using less energy,
				  or the conservation of energy by end-use customers.
18. "Energy efficiency standard" means the reduction in
				  retail energy sales, in percentage of kWh, required to be achieved through an
				  affected utility's approved DSM programs as prescribed in
				  R14-2-2404.
19. "Energy savings" means the reduction in a customer's
				  energy consumption directly resulting from a DSM program, expressed in
				  kWh.
20. "Energy service company" means a company that provides a
				  broad range of services related to energy efficiency, including energy audits,
				  the design and implementation of energy efficiency projects, and the
				  installation and maintenance of energy efficiency measures.
21. "Environmental benefits" means avoidance of costs for
				  compliance, or reduction in environmental impacts, for things such as, but not
				  limited to:
a. Water use and water contamination,
b. Monitoring storage and disposal of solid waste such as
				  coal ash (bottom and fly),
c. Health effects from burning fossil fuels, and
d. Emissions from transportation and production of fuels and
				  electricity.
22. "Fuel-neutral" means without promoting or otherwise
				  expressing bias regarding a customer's choice of one fuel over another.
23. "Incremental benefits" means amounts saved through
				  avoiding costs for fuel, purchased power, new capacity, transmission,
				  distribution, and other cost items necessary to provide electric utility
				  service, along with other improvements in societal welfare, such as through
				  avoided environmental impacts, including, but not limited to, water consumption
				  savings, air emission reduction, reduction in coal ash, and reduction of
				  nuclear waste.
24. "Incremental costs" means the additional expenses of DSM
				  measures, relative to baseline.
25. "Independent program administrator" means an impartial
				  third party employed to provide objective oversight of energy efficiency
				  programs.
26. "kW" means kilowatt.
27. "kWh" means kilowatt-hour.
28. "Leveraging" means combining resources to more
				  effectively achieve an energy efficiency goal, or to achieve greater energy
				  efficiency savings, than would be achieved without combining resources.
29. "Load management" means actions taken or sponsored by an
				  affected utility to reduce peak demands or improve system operating efficiency,
				  such as direct control of customer demands through affected-utility-initiated
				  interruption or cycling, thermal storage, or educational campaigns to encourage
				  customers to shift loads.
30. "Low-income customer" means a customer with a below
				  average level of household income, as defined in an affected utility's
				  Commission-approved DSM program description.
31. "Market transformation" means strategic efforts to induce
				  lasting structural or behavioral changes in the market that result in increased
				  energy efficiency.
32. "Net benefits" means the incremental benefits resulting
				  from DSM minus the incremental costs of DSM.
33. "Non-market benefits" means improvements in societal
				  welfare that are not bought or sold.
34. "Program costs" means the expenses incurred by an
				  affected utility as a result of developing, marketing, implementing,
				  administering, and evaluating Commission-approved DSM programs.
35. "Self-direction" means an option made available to
				  qualifying customers of sufficient size, in which the amount of money paid by
				  each qualifying customer toward DSM costs is tracked for the customer and made
				  available for use by the customer for approved DSM investments upon application
				  by the customer.
36. "Societal Test" means a cost-effectiveness test of the
				  net benefits of DSM programs that starts with the Total Resource Cost Test, but
				  includes non-market benefits and costs to society.
37. "Staff" means individuals working for the Commission's
				  Utilities Division, whether as employees or through contract.
38. "Thermal envelope" means the collection of building
				  surfaces, such as walls, windows, doors, floors, ceilings, and roofs, that
				  separate interior conditioned (heated or cooled) spaces from the exterior
				  environment.
39. "Total Resource Cost Test" means a cost-effectiveness
				  test that measures the net benefits of a DSM program as a resource option,
				  including incremental measure costs, incremental affected utility costs, and
				  carrying costs as a component of avoided capacity cost, but excluding
				  incentives paid by affected utilities and non-market benefits to
				  society.