summary
Introduced
In Committee
Crossed Over
Passed
Dead
Signed/Enacted/Adopted
04/18/2012
04/18/2012
Introduced Session
2012 Regular Session
Bill Summary
Utility energy efficiency programs. Provides that an energy efficiency program proposed by an electric utility is in the public interest if among other factors, the net present value of the benefits exceeds the net present value of the costs as determined by the Commission upon consideration of the following four tests: (i) the Total Resource Cost Test; (ii) the Utility Cost Test (also referred to as the Program Administrator Test); (iii) the Participant Test; and (iv) the Ratepayer Impact Measure Test. The Commission's determination shall include an analysis of all four tests, and a program or portfolio of programs shall not be rejected based solely on the results of a single test. An electric utility's energy efficiency program may be deemed to be in the public interest if it provides measurable and verifiable energy savings to low-income customers or elderly customers. The current standard for what constitutes a cost-effective conservation and energy efficiency program conducted by a natural gas utility is revised to conform to these new provisions for electric utilities. Finally, the measure expands the definition of "energy efficiency program" with regard to electric utilities to include customer engagement programs that result in measurable and verifiable energy savings that lead to efficient use patterns and practices. The bill contains an emergency clause and shall not apply to any case or proceeding filed with the Commission prior to March 10, 2012.
AI Summary
This bill modifies how energy efficiency programs proposed by electric and natural gas utilities are evaluated to ensure they are in the public interest, meaning the benefits outweigh the costs. For electric utilities, a program is considered in the public interest if it passes four specific tests: the Total Resource Cost Test, the Utility Cost Test (also called the Program Administrator Test), the Participant Test, and the Ratepayer Impact Measure Test, and the Commission (State Corporation Commission) must consider all four, not rejecting a program based on just one. Additionally, electric utility programs that provide measurable and verifiable energy savings to low-income or elderly customers can be deemed in the public interest, and the definition of an energy efficiency program is expanded to include customer engagement initiatives that lead to energy savings. For natural gas utilities, the criteria for cost-effective conservation and energy efficiency programs are updated to align with these new provisions for electric utilities, also requiring consideration of the four tests and allowing programs benefiting low-income or elderly customers to be deemed cost-effective. The bill contains an emergency clause and will not apply to cases filed before March 10, 2012.
Sponsors (2)
Last Action
Governor: Acts of Assembly Chapter text (CHAP0821) (on 04/18/2012)
Official Document
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