Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 4240 - Public Service Commission › Chapter 20 - Electric Utilities › Section 20 CSR 4240-20.092 - Definitions for Demand-Side Programs and Demand-Side Programs Investment Mechanisms

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule incorporates definitions for all
				  terms used in 4 CSR 240-20.093 Demand-Side
				  Programs Investment Mechanisms (DSIM) and
				  4 CSR
				  240-20.094 Demand-Side Programs.
(1) As used in
				4 CSR
				240-20.093 and
				4 CSR
				240-20.094, the following terms mean:
(A) Annual report means a report of
				information concerning a utility's demand-side programs having the content
				described in 4 CSR
				240-20.093(9);
(B) Approved demand-side program means a
				demand-side program or program pilot which is approved by the commission in
				accordance with 4 CSR 240-20.094 Demand-Side
				Programs;
(C) Avoided costs or
				avoided utility costs means the cost savings obtained by substituting
				demand-side programs for existing and new supply-side resources. Avoided costs
				include avoided utility costs resulting from demand-side programs' energy
				savings and demand savings associated with generation, transmission, and
				distribution facilities including avoided probable environmental compliance
				costs. The utility shall use the integrated resource plan and risk analysis
				used in its most recently adopted preferred resource plan to calculate its
				avoided costs;
(D) Baseline demand
				forecast means a reference forecast of summer or winter peak demand at the
				customer class level and on the customer side of the meter, excluding the
				effects of any new demand-side programs but including the effects of
				naturally-occurring energy efficiency and any codes and standards that were in
				place and known to be enacted at the time the forecast is completed;
(E) Baseline energy forecast means a
				reference forecast of energy at the customer class level and on the customer
				side of the meter, excluding the effects of any new demand-side programs but
				including the effects of naturally-occurring energy efficiency and any codes
				and standards that were in place and known to be enacted at the time the
				forecast is completed;
(F) Cost
				recovery amount means the amount approved by the commission in a utility's
				filing for demand-side program approval or a DSIM rate adjustment case to
				provide the utility with cost recovery of demand-side program costs based on
				the approved cost recovery component of a DSIM;
(G) Cost recovery component of a DSIM means
				the methodology approved by the commission in a utility's filing for
				demand-side program approval to allow the utility to receive recovery of costs
				of approved demand-side programs with interest;
(H) Customer class means major customer rate
				groupings such as residential, small general service, large general service,
				and large power service;
(I) Deemed
				savings means the estimated measure-level annual energy savings and/or demand
				savings documented or calculated in the approved technical resource manual,
				technical reference manual (TRM), or statewide TRM, multiplied by the
				documented measure count. The demand-side program deemed savings is the sum of
				the deemed savings for all measures installed in a demand-side program. The
				demand-side portfolio deemed savings is the sum of all demand-side program
				deemed savings;
(J) Demand means
				the rate of electric power use over an hour measured in kilowatts
				(kW);
(K) Demand response means
				measures that decrease peak demand or shift demand to off-peak
				periods;
(L) Demand-side portfolio
				means all of a utility's demand-side programs at a defined point in
				time;
(M) Demand-side program means
				any program conducted by the utility to modify the net consumption of
				electricity on the retail customer's side of the electric meter, including, but
				not limited to, energy efficiency measures, load management, demand response,
				and interruptible or curtailable load, but not including deprivation of service
				or low-income weatherization;
(N)
				Demand-side programs investment mechanism, or DSIM, means a mechanism approved
				by the commission in a utility's filing for demand-side program approval to
				encourage investments in demand-side programs. The DSIM may include: a program
				cost recovery component of a DSIM, a throughput disincentive component of a
				DSIM, and an earnings opportunity component of a DSIM;
(O) Demand savings target means the demand
				savings level approved by the commission under
				4 CSR
				240-20.094(4)(I) or
				4 CSR
				240-20.094(5)(A) 5. Demand savings
				targets are the baseline for determining the utility's demand-side portfolio's
				demand savings performance levels for the earnings opportunity component of a
				DSIM;
(P) DSIM amount means the sum
				of the program cost recovery amount, throughput disincentive amount, and
				earnings opportunity amount;
(Q)
				DSIM rate means the rate used to determine the charge on customers' bills for
				the portion of the DSIM amount assigned by the commission to a rate
				class;
(R) Earnings opportunity
				amount means the amount approved by the commission in a utility's filing for
				demand-side program approval or a rate adjustment case to provide the utility
				with an earnings opportunity amount based on the approved earnings opportunity
				component of a DSIM;
(S) Earnings
				opportunity component of a DSIM means the methodology approved by the
				commission in a utility's filing for demand-side program approval to allow the
				utility to receive an earnings opportunity. Any earnings opportunity component
				of a DSIM shall be implemented on a retrospective basis, and all energy and
				demand savings used to determine a DSIM earnings opportunity amount shall be
				verified and documented through EM&V reports;
(T) Economic potential means energy savings
				and demand savings relative to a utility's baseline energy forecast and
				baseline demand forecast, respectively, resulting from customer adoption of all
				cost-effective measures, regardless of customer preferences;
(U) Electric utility or utility means any
				electric corporation as defined in section
				386.020,
				RSMo;
(V) Energy means the total
				amount of electric power that is used over a specified interval of time
				measured in kilowatt-hours (kWh);
(W) Energy efficiency means measures that
				reduce the amount of electricity required to achieve a given end-use;
(X) Energy savings target means the energy
				savings level approved by the commission under
				4 CSR
				240-20.094(4)(I) or
				4 CSR
				240-20.094(5)(A) 6. Energy savings
				targets are the baseline for determining the utility's demand-side portfolio's
				energy savings performance levels for the earnings opportunity component of a
				DSIM;
(Y) Evaluation, measurement,
				and verification, or EM&V, means the performance of studies and activities
				intended to evaluate the process of the utility's program delivery and
				oversight and to estimate and/or verify the estimated annual energy and demand
				savings, and to report on the benefits, cost effectiveness, and other effects
				from demand-side programs, based on those estimated and/or verified energy and
				demand savings;
(Z) Filing for
				demand-side programs approval means a utility's filing for establishment,
				modification, or discontinuance of demand-side program(s) which may also
				include a simultaneous request for the establishment, modification, or
				discontinuance of a DSIM;
(AA)
				General rate proceeding means a general rate increase proceeding or complaint
				proceeding before the commission in which all relevant factors that may affect
				the costs or rates and charges of the electric utility are considered by the
				commission;
(BB) Interruptible or
				curtailable rate means a tariffed rate under which a customer receives a
				reduced charge in exchange for agreeing to allow the utility to withdraw the
				supply of electricity under certain specified conditions;
(CC) Market potential study means a
				quantitative analysis of the amount of energy and demand savings that may
				exist, is cost-effective, and could be realized through the implementation of
				demand-side programs, policies, and rate design;
(DD) Market transformation means the
				strategic process of intervening in a market to create lasting change in market
				behavior by removing identified barriers or exploiting opportunities to
				accelerate the adoption of all cost-effective demand-side savings as a matter
				of standard practice;
(EE) Maximum
				achievable potential means energy savings and demand savings relative to a
				utility's baseline energy forecast and baseline demand forecast, respectively,
				resulting from expected program participation and ideal implementation
				conditions. Maximum achievable potential establishes a maximum target for
				demand-side savings that a utility can expect to achieve through its
				demand-side programs and involves incentives that represent a very high portion
				of total programs costs and very short customer payback periods. Maximum
				achievable potential is considered the hypothetical upper-boundary of
				achievable demand-side savings potential, because it presumes conditions that
				are ideal and not typically observed;
(FF) Measure means any device, technology,
				behavioral response mechanism, or operating procedure that makes it possible to
				deliver the same or better levels of energy service while-
1. Using less electricity than would
				otherwise be required to achieve a given end-use; or
2. Altering the time pattern of end-use
				electricity so as to decrease peak demand or shift demand to off-peak
				periods;
(GG) MEEIA
				means the Missouri Energy Efficiency Investment Act, section
				393.1075,
				RSMo;
(HH) Net benefits means the
				program benefits measured and documented through EM&V reports, TRMs and
				statewide TRM, less the sum of the program costs including the design,
				administration, delivery, end-use measures, incentive payments to customers,
				EM&V, utility market potential studies, and statewide TRM or TRM and
				statewide TRM;
(II) Non-Energy
				Benefits means-
1. Direct benefits to
				participants in utility demand side programs, including, but not limited to,
				increased property values, increased productivity, decreased water and sewer
				bills, reduced operations and maintenance costs, improved tenant satisfaction,
				and increases to the comfort, health, and safety of participants and their
				families;
2. Direct benefits to
				utilities, including, but not limited to, reduced arrearage carrying costs,
				reduced customer collection calls/notices, reduced termination/reconnection
				costs, and reduced bad debt write-offs; or
3. Indirect benefits to society at large,
				including, but not limited to, job creation, economic development, energy
				security, public safety, reduced emissions and emission related health care
				costs, and other environmental benefits;
4. Non-Energy Benefits may be included in the
				total resource cost test (TRC) only if they result in avoided utility costs
				that may be calculated with a reasonable degree of confidence. Non-energy
				benefits may always be considered in the societal cost test.;
(JJ) Participant costs test (PCT)
				means a test of the cost-effectiveness of demand-side programs that measures
				the economics of a demand-side program from the perspective of the customers
				participating in the program;
(KK)
				Preferred resource plan means the utility's resource plan that is contained in
				the resource acquisition strategy most recently adopted by the utility's
				decision-makers in accordance with 4 CSR 240-22;
(LL) Probable environmental compliance costs
				means the costs to the utility of complying with new or additional
				environmental legal mandates, taxes, or other requirements that, in the
				judgment of the utility's decision-makers, may be reasonably expected to be
				incurred by the utility and are included in the integrated resource plan and
				risk analysis used in its most recently-adopted preferred resource
				plan;
(MM) Program pilot means a
				demand-side program designed to operate on a limited basis for evaluation
				purposes before full implementation;
(NN) Ratepayer impact measure (RIM) test is a
				measure of the difference between the change in total revenues paid to a
				utility and the change in total cost incurred by the utility as a result of the
				implementation of demand-side programs. The benefits are the avoided costs as a
				result of implementation. The costs consist of incentives paid to participants,
				other costs incurred by the utility, and the loss in revenue as a result of
				diminished consumption, and the utility's earnings opportunity as a result of
				implementation of demand-side programs. Utility costs include the costs to
				administer, deliver, and evaluate each demand-side program and the costs of
				statewide TRM or TRM and statewide TRM;
(OO) Realistic achievable potential means
				energy savings and demand savings relative to a utility's baseline energy
				forecast and baseline demand forecast, respectively, resulting from expected
				program participation and realistic implementation conditions. Realistic
				achievable potential establishes a realistic target for demand-side savings
				that a utility can expect to achieve through its demand-side programs and
				involves incentives that represent a moderate portion of total program costs
				and longer customer payback periods when compared to those associated with
				maximum achievable potential;
(PP)
				Societal cost test means the total resource cost test with the addition of
				non-energy benefits;
(QQ) Staff
				means all personnel employed by the commission, whether on a permanent or
				contract basis, except: commissioners; commissioner support staff, including
				technical advisory staff; personnel in the secretary's office; and personnel in
				the general counsel's office, including personnel in the adjudication
				department. Employees in the staff counsel's office are members of the
				commission's staff;
(RR) Technical
				potential means energy savings and demand savings relative to a utility's
				baseline energy forecast and baseline demand forecast, respectively, resulting
				from a theoretical construct that assumes all feasible measures are adopted by
				customers of the utility regardless of cost or customer preference;
(SS) Technical resource manual, technical
				reference manual or TRM means a document used to quantify energy savings and
				demand savings attributable to energy efficiency and demand response programs
				within an electric utility's service territory. The TRM may be a statewide or
				utility-specific document that is approved by the commission;
(TT) Throughput disincentive means the
				electric utility's lost margin revenues that result from decreased retail sales
				volumes due to its demand-side programs;
(UU) Throughput disincentive amount means the
				amount approved by the commission in a utility's filing for demand-side program
				approval or a DSIM rate adjustment case to provide the utility with recovery of
				throughput disincentive based on the approved throughput disincentive component
				of a DSIM;
(VV) Throughput
				disincentive component of a DSIM means the methodology approved by the
				commission in a utility's filing for a demand-side program approval to allow
				the utility to receive recovery of throughput disincentive with interest;
(WW) Total resource cost test or
				TRC means a test that compares the sum of avoided utility costs, including
				avoided probable environmental costs to the sum of all incremental costs of
				end-use measures that are implemented due to the program (including both
				utility and participant contributions), plus utility costs to administer,
				deliver, and evaluate each demand side program and costs of statewide TRM or
				TRM and statewide TRM; and
(XX)
				Utility cost test (UCT) means a test that compares the sum of avoided utility
				costs, including avoided probable environmental costs, to the sum of all
				incremental costs of end use measures that are implemented due to the program,
				excluding participant contributions, plus utility costs to administer, deliver,
				and evaluate each demand-side program and costs of statewide TRM or TRM and
				statewide TRM.