summary
Introduced
In Committee
Crossed Over
Passed
Dead
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.
AI Summary
This bill updates the standards for evaluating energy efficiency programs offered by electric and natural gas utilities to ensure they are in the public interest. For electric utilities, an energy efficiency program is considered in the public interest if its benefits outweigh its costs, as determined by the Commission (State Corporation Commission) using four specific tests: the Total Resource Cost Test, the Utility Cost Test (also known as the Program Administrator Test), the Participant Test, and the Ratepayer Impact Measure Test. The bill clarifies that a program or group of programs cannot be rejected based on the results of just one test, and that programs providing measurable energy savings to low-income or elderly customers can also be deemed in the public interest. The definition of an "energy efficiency program" for electric utilities is expanded to include customer engagement initiatives that lead to verifiable energy savings and promote efficient usage patterns. For natural gas utilities, the existing criteria for cost-effective conservation and energy efficiency programs are revised to align with these new provisions for electric utilities. The bill also includes an emergency clause, meaning it will take effect immediately upon its passage.
Sponsors (14)
Jenn McClellan (D)*,
Lee Ware (R)*,
Kenneth Alexander (D),
John Cosgrove (R),
David Englin (D),
Johnny Joannou (D),
Mark Keam (D),
Kaye Kory (D),
Lynwood Lewis (D),
Alfonso Lopez (D),
Kenneth Plum (D),
Harry Purkey (R),
Roslyn Tyler (D),
Jeion Ward (D),
Last Action
Governor: Acts of Assembly Chapter text (CHAP0210) (on 03/09/2012)
Official Document
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