TITLE 17 PUBLIC UTILITIES AND UTILITY
SERVICES
CHAPTER 7 ENERGY CONSERVATION
PART 2 ENERGY EFFICIENCY
17.7.2.1 ISSUING AGENCY: The New Mexico Public Regulation Commission.
[17.7.2.1 NMAC - Rp.
17.7.2.1 NMAC, 9/26/2017]
17.7.2.2 SCOPE: This rule applies to all electric, gas and
distribution cooperative utilities subject to the commission's jurisdiction.
[17.7.2.2 NMAC - Rp.
17.7.2.2 NMAC, 9/26/2017]
17.7.2.3 STATUTORY AUTHORITY: Sections
8-8-16, 62-3-1, 62-8-6, 62-17-1 et. seq., NMSA 1978.
[17.7.2.3 NMAC - Rp. 17.7.2.3 NMAC, 9/26/2017; A,
10/26/2021]
17.7.2.4 DURATION: Permanent.
[17.7.2.4 NMAC - Rp. 17.7.2.4 NMAC, 9/26/2017]
17.7.2.5 EFFECTIVE DATE: September 26, 2017 unless a later date is cited at
the end of a section. Applications filed
prior to this effective date shall be governed by the specific orders related
to those applications.
[17.7.2.5 NMAC - Rp. 17.7.2.5 NMAC, 9/26/2017; A,
10/26/2021]
17.7.2.6 OBJECTIVE: The purpose
of this rule is to implement the Efficient Use of Energy Act and establish
criteria to evaluate and implement cost-effective measures or programs that
reduce energy demand and energy consumption.
The rule also specifies how annual program funding is to be determined;
how the public utility’s prior commission approved total portfolio of programs
will be cost-effective; how the public utility’s total new portfolio of
programs will be cost-effective; and establishes annual incentive criteria for
a public utility.
[17.7.2.6 NMAC - Rp. 17.7.2.6 NMAC, 9/26/2017]
17.7.2.7 DEFINITIONS: In addition
to the definitions used in Section 62-17-4 NMSA 1978, the following definitions
apply to this rule:
A. Definitions beginning with “A”: application means a utility application for commission approval of
proposed energy efficiency measures or programs and load management measures or
programs;
B. Definitions beginning with “B”: [RESERVED]
C. Definitions
beginning with “C”: [RESERVED]
D. Definitions beginning with “D”: [RESERVED]
E. Definitions beginning with “E”: estimate or estimated means a projection or
forecast utilizing well known, commercially available or standard engineering,
economic and financial calculations, ratings and simulations, or other
reasonable means;
F. Definitions beginning
with “F”: [RESERVED]
G. Definitions beginning with “G”: [RESERVED]
H. Definitions
beginning with “H”: [RESERVED]
I. Definitions beginning with “I”:
[RESERVED]
J. Definitions beginning with
“J”: [RESERVED]
K. Definitions beginning with “K”: [RESERVED]
L. Definitions beginning with “L”:
(1) life-cycle basis means utilizing the expected
useful life of the energy efficiency and load management measures or programs
and applying a net present value methodology that does not adjust a discount
rate for taxes in order to estimate the associated monetary costs and avoided
monetary costs of the measure or program being evaluated;
(2) low income customer means a customer with an annual
household income at or below two hundred percent of the federal poverty level,
as published annually by the United States department of health and human
services;
M. Definitions beginning with “M”:
(1) measure or program means an energy efficiency measure or program or a
load management measure or program;
(2) measurement and verification means an analysis
performed by an independent evaluator that estimates, consistent with
Subsection B of 17.7.2 NMAC, reductions of energy usage or peak demand and
determines any actual reduction of energy usage or peak demand that directly
results from the utility's implementation of particular energy efficiency
measures or programs or of particular load management measures or programs;
N. Definitions beginning with “N”: [RESERVED]
O. Definitions beginning with “O”: [RESERVED]
P. Definitions beginning with “P”:
(1) plan
year means the calendar year for which commission approval is being sought;
(2) plan year overage means the public utility’s actual
prior plan year expenditures that exceeded the same plan year’s actual collections;
(3) plan year underage means the public utility’s actual
prior plan year collections that exceeded the same plan year’s actual
expenditures.
Q. Definitions beginning with
“Q.”: [RESERVED]
R. Definitions beginning with “R”: [RESERVED]
S. Definitions beginning with
“S”: [RESERVED]
T. Definitions beginning
with “T”: [RESERVED]
U. Definitions beginning with “U”: [RESERVED]
V. Definitions beginning with “V”: [RESERVED]
W. Definitions beginning with “W”: [RESERVED]
X. Definitions beginning with “X”: [RESERVED]
Y. Definitions beginning with “Y”: [RESERVED]
Z. Definitions beginning with “Z”: [RESERVED]
[17.7.2.7 NMAC - Rp. 17.7.2.7 NMAC, 9/26/2017; A,
10/26/2021]
17.7.2.8 PUBLIC
UTILITY FILING REQUIREMENTS FOR APPLICATIONS AND ANNUAL REPORTS:
A. Timing.
Beginning in the year specified below, each public utility shall file an
application every three years
|
2021 |
2022 |
2023 |
|
El Paso Electric Company
(and its successors) |
Southwest Public Service
Company (and its successors) |
Public Service Company of
New Mexico (and its successors) |
|
Zia Natural Gas Company
(and its successors) |
New Mexico Gas Company (and
its successors) |
Raton Natural Gas Company
(and its successors) |
|
|
|
Any other public utility |
|
|
|
|
Each of the three years
covered by an application shall, for the purposes of 17.7.2.7 NMAC, be treated
as a plan year. Each public utility may,
but is not required to, file an application prior to the year specified in this
subsection. If a utility does not elect
to file an application prior to the year specified in this subsection, the
measures, programs and incentive approved in the utility’s last energy
efficiency case shall continue in effect until modified or terminated. If a utility does elect to file an
application prior to the year specified in this subsection, the measures,
programs and incentive approved in that case shall continue in effect as
provided by the commission. All
utilities shall file their annual reports each year and in the same docket as
the application that covered the period of the annual report. Public Service Company of New Mexico (and its
successors) shall file its application and its annual reports on April 15 of
the applicable year. Southwestern Public
Service Company (and its successors) shall file its application and its annual
reports on May 15 of the applicable year.
El Paso Electric Company (and its successors) shall file its application
and its annual reports on June 1 of the applicable year. A natural gas company shall file its annual
report on or before July 1 of each year, and shall file its application on or
before August 31 of the applicable year in which it is required to file an
application. If a specified filing date
falls on a weekend or legal holiday, the public utility shall file on the next
business day.
B. Compliance with pre-filing requirements. Applications shall
describe how the public utility has met the pre-filing requirements of
Subsection E of Section 62-17-5 NMSA 1978, including descriptions of the
process used to solicit non-binding recommendations, and any competitive bids
required by the commission for good cause.
The public utility shall identify by name, association, and contact
information, each interested party that participated in the process, including
commission staff, the attorney general, and the energy, minerals and natural
resources department. The public utility
shall summarize each participant's non-binding recommendation on the design,
implementation, and use of third-party energy service contractors through
competitive bidding for programs and measures.
C. The public utility shall identify within its application, its estimated
plan year funding for energy efficiency and load management program costs for
each year during the plan period.
(1) Estimated plan year funding for
electric public utilities energy efficiency and load management program costs
shall be expressed in dollars and shall be no less than three percent and no
more than five percent of billing revenues from all of its customers’ bills
that the public utility estimates to be billed during the plan year to customer
classes with the opportunity to participate, excluding:
(a) gross receipts
taxes and franchise and right-of-way access fees;
(b) revenues that
the public utility estimates to bill during the plan year to any single
customer that exceed $75,000.00;
(c) any customer’s
plan year self-directed program credits approved by the public utility or by a
commission approved self-direct administrator; and
(d) any customer’s
plan year self-directed program exemptions approved by the public utility or by
a commission approved self-direct administrator.
(2) Estimated plan year funding for gas
public utilities’ energy efficiency and load management program costs shall be
expressed in dollars and shall not exceed five percent of customers’ bills that
the public utility estimates to be billed during the plan year, excluding:
(a) gross receipts
taxes and franchise and right-of-way access fees;
(b) revenues that
the public utility estimates to bill during the plan year to any single
customer that exceed seventy five thousand ($75,000);
(c) any customer’s
plan year self-directed program credits approved by the public utility or by a
commission-approved self-direct administrator; and
(d) any customer’s
plan year self-directed program exemptions approved by the public utility or by
a commission-approved self-direct administrator.
D. The public utility's application
shall calculate and provide the difference between its actual prior plan year
expenditures for measures and programs and the same plan year’s applicable
funding required by statute. At the end
of each plan year, the public utility shall calculate the following applicable
values:
(1) any plan year overage; or
(2) any plan year underage.
E. In each plan year, a public utility
shall make its best efforts to expend its applicable plan funding as calculated
in Subsection C of 17.7.2.8 NMAC above subtracting any applicable prior plan
year overage or adding any applicable prior plan year underage; provided,
however, that a public utility may periodically adjust its plan year
expenditures by an amount not greater than ten percent of the approved funding
level if the adjustment will result in aligning plan year expenditures more
closely with projected plan year collections.
By motion in the docket of its most recent energy efficiency case a
utility may seek approval to adjust its plan year expenditures by more than ten
percent of the approved funding level.
F. The application shall include an
executive summary to facilitate commission review.
G. The utility shall utilize well
known, commercially available or standard engineering, economic and financial
calculations, ratings, and simulations, or other reasonable methods, to determine
monetary costs and avoided monetary costs of measures and programs.
H. For each proposed measure or
program, including previously approved measures and programs submitted for
reauthorization, the application shall provide:
(1) the public utility's statement that
the measure or program is estimated to be cost-effective and meets the utility
cost test;
(2) a detailed description of the
proposed measure or program;
(3) the expected useful life of the
measure or program;
(4) any participation requirements and
restrictions of the measure or program;
(5) the time period during which the
measure or program will be offered;
(6) a description of any competitive bid
process for utility measures or programs;
(7) the estimated number of measure or
program participants, supported by written testimony and exhibits;
(8) the estimated economic benefit to the
participants attributable to the measure or program, supported by written
testimony and exhibits;
(9) the estimated annual energy savings
and the estimated energy savings over the useful life for the measure or
program (expressed in kilowatt hours and dollars for electric utilities or in
therms and dollars for gas utilities), supported by written testimony and
exhibits;
(10) the estimated annual demand savings and
the estimated demand savings over the useful life for the measure or program
(expressed in kilowatts and dollars), supported by written testimony and
exhibits;
(11) the proposed program costs to be
incurred by the utility to support more than one measure or program, along with
the associated allocation of this cost to each measure or program, and the
method used to determine each allocation, supported by written testimony and
exhibits;
(12) a detailed separate measure or program
budget that identifies the estimated monetary program costs to be incurred by
the public utility in acquiring, developing, and operating each measure and
program on a life cycle basis, for each year of the expected useful life of the
measure or program;
(13) the estimated monetary program costs to
be incurred by the public utility in acquiring, developing, and operating each
measure or program on a life cycle basis, supported by written testimony and
workpapers that:
(a) demonstrate and
justify how the estimated monetary program costs will be equal to or greater
than the actual monetary program costs; and
(b) explain
the public utility's rationale and methodology used to determine the estimated
monetary program costs.
(14) the estimated avoided monetary cost
associated with developing, acquiring and operating associated supply side
resources, supported by written testimony and exhibits that:
(a) demonstrate
and justify how the estimated avoided monetary cost will be equal to or greater
than the actual avoided monetary cost; and
(b) explain
the public utility's rationale and methodology used to estimate the avoided
monetary cost associated with acquiring, developing, and operating the
associated supply side resource.
(15) supporting documentation, underlying
data, calculations, estimates and other items shall be presented in a manner
that facilitates the preparation of a measurement and verification report by an
independent program evaluator, along with compilation and preparation of the
public utility's reporting requirements, and that facilitates a simple
comparison of measure or program estimated results to actual results, including
the public utility's cost of capital and discount rate; and
(16) if the utility cost test is not met,
justify why the utility is proposing to implement the program within its
portfolio of proposed programs.
I. The public utility shall
demonstrate, and has the burden to demonstrate, that it has evaluated and
determined that the proposed measure or program is cost-effective and will
reduce energy usage or energy demand or both, if approved by the commission and
implemented by the utility.
J. The public utility shall
demonstrate that its portfolio of proposed measures and programs are
cost-effective, meets the utility cost test as defined by Subsection C of
Section 62-17-4 NMSA 1978 and are designed to provide every affected customer
class with the opportunity to participate and benefit economically.
K. The public utility shall demonstrate
that no less than five percent of the funding for measure and program costs
shall be specifically directed to measures or programs for low-income
customers.
L. Any application that includes a
proposed annual incentive award shall:
(1) be based on the utility’s costs;
(2) be based on satisfactory performance
of measures and programs;
(3) be supported by written testimony and
exhibits; and
(4) shall not exceed the product
(expressed in dollars) of:
(a) its weighted
cost of capital (expressed as a percent), and
(b) its approved
annual program costs.
M. For each approved large customer
self-directed program, the utility's application shall describe, in an annual
report, the process that enabled the utility to determine that a large customer
self-directed program met the cost-effective definition set forth in Subsection
B of Section 62-17-9 NMSA 1978 and merited the credit or exemption.
N. The commission shall act
expeditiously on the public utility's request for approval of its energy
efficiency and load management measures and programs.
[17.7.2.8 NMAC - Rp. 17.7.2.8
NMAC, 9/26/2017; A, 10/26/2021]
17.7.2.9 RESIDENTIAL
PROGRAMS:
A. The programs should enable
residential customers or households to conserve energy, reduce demand, or
reduce residential energy bills.
B. Provided that the public utility's
total portfolio of programs remains cost-effective, no less than five percent
of the amount received by the public utility for program costs shall be
specifically directed to energy efficiency programs for low-income customers.
(1) A public utility may coordinate with
existing community resources, including affordable housing programs, and
low-income weatherization programs managed by other utilities and federal,
state, county, or local governments.
This section does not preclude the public utility from designing and
proposing other low-income programs.
(2) Whenever possible, providers of
low-income energy efficiency measures or programs should have demonstrated
experience and effectiveness in the design, administration and provision of
low-income measures and programs, along with experience in identifying and
conducting outreach to low-income households.
In the absence of qualified independent agencies, a public utility that
does not provide measures or programs directly, may solicit qualified
competitive bids for these services.
(3) In developing the utility cost test
for energy efficiency and load management measures and programs directed to
low-income customers, unless otherwise quantified in a commission proceeding,
the public utility shall assume that twenty percent of the calculated energy
savings is the reasonable value of reductions in working capital, reduced
collection costs, lower bad-debt expense, improved customer service,
effectiveness, and other appropriate factors qualifying as utility system
economic benefits.
[17.7.2.9 NMAC - Rp. 17.7.2.9
NMAC, 9/26/2017; A, 10/26/2021]
17.7.2.10 SELF-DIRECTED
PROGRAM CREDITS FOR LARGE CUSTOMERS: The following criteria apply to large
customer utility credits for self-directed programs.
A. The expenditures made by the large
customer at its facilities shall be cost-effective according to the utility
cost test.
B. Projects that have received rebates,
financial or other program support from a utility are not eligible for a
credit.
C. Eligible expenditures must have a
simple payback period of more than one year but less than seven years.
D. Large customers shall seek and
receive approval for credits from the utility or a commission-approved
self-direct administrator.
E. Large customers applying for an
investor-owned electric utility bill credit must meet the electricity
consumption size criteria set forth in Subsection G of Section 62-17-4 NMSA
1978 and the utility cost test.
F. Large customers applying for gas
utility bill credit must meet the gas consumption criteria as set forth in
Subsection G of Section 62-17-4 NMSA 1978 and the utility cost test.
G. Large customers seeking a credit
shall provide, to the public utility or the commission-approved self-direct
program administrator, access to all relevant engineering studies and
documentation needed to verify energy savings of the project, and allow access
to its site for reasonable inspections, at reasonable times. All records relevant to a self-direct program
shall be maintained by the large customer for the duration of that program,
which shall be evaluated in accordance with 17.7.2.15 NMAC, subject to
appropriate protections for confidentiality.
H. The utility shall designate a
qualified representative to review, approve, or disapprove large customer
requests for credits.
I. The commission may appoint a
"commission-approved" self-direct program administrator to review,
approve, or disapprove large customer requests for credits.
J. Approvals or disapprovals by the
utility representative or administrator shall be subject to commission
review. Within 30 business days of the
action, the utility representative or administrator shall file and serve notice
of each self-direct program review, approval, or disapproval with the
commission, and on all interested parties.
Notice of an appeal of a utility or administrator approval or
disapproval of a large customer credit request shall be filed with the
commission within 30 calendar days of the approval or disapproval action by
Staff, the large customer or any interested party.
K. Once approved, the credit may be
used to offset up to seventy percent of the tariff rider authorized by the
Efficient Use of Energy Act, until said credit is exhausted.
L. Any credit not fully utilized in the
year it is received shall carry over to subsequent years.
M. Implementation of credits shall be
designed to minimize utility administrative costs.
N. Self-direct program participants, or
large customers seeking exemption, shall submit qualified in-house or
contracted engineering studies, and such other information as may be reasonably
required by the utility or program administrator, to demonstrate qualification
for self-direct program credits.
O. Large customers must respond to
reasonable utility or administrator information requests and allow the utility
or an administrator to perform necessary site visits.
P. The utility or administrator shall
act in a timely manner on requests for self-direct program approval.
Q. For investor-owned electric
utilities, the equivalent amount of energy savings associated with a large
customer's self-directed program will be accounted for in calculating its
compliance with minimum required energy savings.
R. Large customer expenditures incurred
to produce electric energy savings or electric demand savings are only eligible
for an electric utility bill credit.
Large customer expenditures incurred to produce natural gas energy
savings or natural gas demand savings are only eligible for a gas utility bill
credit. Large customer expenditures
incurred to produce both electric and natural gas energy savings, both electric
and natural gas demand savings, or any combination of energy savings and demand
savings for both electric and natural gas are eligible for both an electricity
bill credit and a gas utility bill credit, provided that the same energy
efficiency expenditures or load management expenditures cannot be accounted for
twice.
S. Upon written request by the large
customer, the information provided by that customer to the utility or program
administrator, program evaluator, or others, shall remain confidential, except
as otherwise ordered by the commission.
[17.7.2.10 NMAC - Rp.
17.7.2.10 NMAC, 9/26/2017]
17.7.2.11 SELF-DIRECTED
PROGRAM EXEMPTIONS FOR LARGE CUSTOMERS: The following criteria apply to utility
exemptions to large customers for self-directed programs.
A. To receive approval for an exemption
to paying seventy percent of the tariff rider, a large customer must
demonstrate to the reasonable satisfaction of the utility or self-direct
program administrator that it has exhausted all cost-effective energy
efficiency measures at its facility.
B. Projects that have received rebates,
financial or other program support from a utility are not eligible for an
exemption.
C. Eligible expenditures must have a
simple payback period of more than one year but less than seven years.
D. Large customers shall seek and
receive approval for exemptions from the utility or a commission-approved
self-direct administrator.
E. Large customers applying for an
investor-owned electric utility bill exemption must meet the electricity
consumption size criterion set forth in Subsection G of Section 62-17-4 NMSA
1978.
F. Large customers applying for a gas
utility bill exemption must meet the gas consumption criterion set forth in
Subsection G of Section 62-17-4 NMSA 1978.
G. The utility shall designate a
qualified representative to review and approve, or disapprove, large customer
requests for exemptions.
H. The commission may appoint a
"commission-approved" self-direct program administrator to review and
approve, or disapprove, large customer requests for exemptions.
I. Approvals or disapprovals by the
utility representative or administrator shall be subject to commission
review. Within 30 business days of the
action, the utility representative or administrator shall file and serve notice
of each self-direct program approval or disapproval with the commission, and on
all interested parties. Notice of an
appeal of a utility or administrator approval or disapproval of a large
customer exemption request shall be filed with the commission within 30
calendar days of the approval or disapproval action by staff, the large
customer or any interested party.
J. Self-direct program participants,
or large customers seeking an exemption shall provide, to the public utility or
the commission approved self-direct program administrator, access to all
relevant engineering studies and documentation needed to verify energy saving
of the project, and allow access to its site for reasonable inspections, at
reasonable times. All records relevant
to a self-direct program shall be maintained by the large customer for the
duration of that program, which shall be evaluated in accordance with 17.7.2.15
NMAC, subject to appropriate protections for confidentiality.
K. Self-direct program participants, or
large customers seeking exemption, shall submit qualified in-house or
contracted engineering studies, and such other information as may be reasonably
required by the utility or program administrator, to demonstrate qualification
for self-direct program exemptions.
L. Large customers must respond to
reasonable utility or administrator information requests and allow the utility
or an administrator to perform necessary site visits.
M. The utility or administrator shall
act in a timely manner on requests for self-direct program approval.
N. For investor-owned electric
utilities, the equivalent amount of energy savings associated with a large
customer's self-directed program will be accounted for in calculating its
compliance with minimum required energy savings.
O. Large customer expenditures incurred
to produce electric energy savings or electric demand savings are only eligible
for an electric utility bill credit.
Large customer expenditures incurred to produce natural gas energy
savings or natural gas demand savings are only eligible for a gas utility bill
credit. Large customer expenditures
incurred to produce both electric and natural gas energy savings, both electric
and natural gas demand savings or any combination of energy savings and demand
savings for both electric and natural gas are eligible for both an electricity
bill credit and a gas utility bill credit, provided that the same energy efficiency
expenditures or load management expenditures cannot be accounted for twice.
P. Upon written request by the large
customer, the information provided by large customers to the utility or program
administrator, program evaluator or others shall remain confidential, except as
otherwise ordered by the commission.
[17.7.2.11 NMAC - Rp.
17.7.2.11 NMAC, 9/26/2017]
17.7.2.12 MODIFICATION
OR TERMINATION OF PROGRAMS:
A. Within each plan year, the utility,
commission staff, attorney general, energy, minerals and natural resources
department, or any other interested party, may petition the commission to
modify or terminate a measure or program, or to approve a new program, for good
cause by filing a motion in the same docket in which the public utility filed
its most recent application. Program
modification or termination shall not nullify any preexisting obligations of
the utility, alternative energy efficiency provider, or contractor, for
performance or failure to perform.
Termination of a program or programs shall be accomplished in a manner
that allows the utility to fully recover its prudent and reasonable program
costs.
B. Within each plan year, a utility may
add or subtract measures within a program, modify customer incentive levels, or
make other adjustments to an approved program if necessary for the overall
success of the program and so long as the portfolio of programs remains cost
effective under the utility cost test.
[17.7.2.12 NMAC - Rp.
17.7.2.12 NMAC, 1/1/2015, A, 9/26/2017, 9/26/2017; A, 10/26/2021]
17.7.2.13 FILING
REQUIREMENTS FOR COST RECOVERY:
A. Electric utility recovery of program
costs shall only be from customer classes with an opportunity to participate in
approved measures and programs, and shall be three percent to five percent of
customers' bills or seventy-five thousand dollars ($75,000) per customer per
plan year, whichever is less. For gas
utilities, recovery of program costs shall be no more than five percent of
total annual revenues adjusted to maximize the impact on any single customer to
$75,000.00 per plan year.
B. The public utility, at its option,
may recover its prudent and reasonable program costs and approved incentives,
either through an approved tariff rider, in base rates or by combining recovery
through a tariff rider and base rates.
C. If a public utility seeks recovery
of costs through a tariff rider, a utility shall present the proposed
ratemaking treatment to the commission for approval. The proposal shall reconcile recovery of any
costs currently being recovered through a tariff rider or in base rates, or by
a combination of the two, as well as any new costs proposed to be recovered
through a tariff rider or in base rates, or by a combination of the two.
(1) The tariff rider shall be applied on
a monthly basis, unless otherwise allowed by the commission.
(2) Unless otherwise ordered by the commission, a tariff rider
approved by the commission shall require language on customer bills explaining
program benefits.
(3) A public utility seeking approval of
a tariff rider shall file an advice notice containing the information required
by 17.1.2.210.11 NMAC and served upon the individuals and entities set forth in
that rule. The proposed tariff rider
shall go into effect 30 days after filing, unless suspended by the commission
for a period not to exceed 180 days. If
the commission has not acted to approve or disapprove the tariff rider by the
end of an ordered suspension period, or within 30 days of filing, it shall be
deemed approved as a matter of law.
D. If base rate recovery of costs is
sought, a utility shall present the proposed ratemaking treatment to the
commission for approval. The proposal
shall reconcile recovery of any costs currently being recovered through a
tariff rider or in base rates, or by a combination of the two, as well as any
new costs proposed to be recovered through a tariff rider or in base rates, or
by a combination of the two.
E. Program costs and incentives may be
deferred for future recovery through creation of a regulatory asset. Prior commission approval is required for the
public utility to create a regulatory asset and to establish any associated
carrying charge.
[17.7.2.13 NMAC - Rp.
17.7.2.13 NMAC, 9/26/2017; A, 10/26/2021]
17.7.2.14 ANNUAL REPORT:
A. Annual reports shall provide
information relating to the public utility's actions to comply with the
Efficient Use of Energy Act.
B. Each public utility shall post its
annual report on a publicly accessible website.
C. Annual reports shall include the
following for each measure and program:
(1) documentation of program expenditures
and estimates of the program expenditures expected in the next year, including
documentation of any adjustments to expenditures in the plan year and expected
adjustments to the next plan year;
(2) estimated and actual customer
participation levels;
(3) estimated and actual energy savings;
(4) estimated and actual demand savings;
(5) estimated and actual monetary costs
of the public utility;
(6) estimated and actual avoided monetary
costs of the public utility;
(7) an evaluation of its
cost-effectiveness; and
(8) an evaluation of the
cost-effectiveness and pay-back periods of self-directed programs.
D. Annual reports also shall include
the following:
(1) the most recent measurement and
verification report of the independent program evaluator, which includes
documentation, at both the portfolio and individual program levels of
expenditures, savings, and cost-effectiveness of all energy efficiency measures
and programs and load management measures and programs, expenditures, savings,
and cost-effectiveness of all self-direct programs, and all assumptions used by
the evaluator;
(2) a listing of each measure or program
expenditure not covered by the independent measurement and verification report
and related justification as to why the evaluation was not performed;
(3) a comparison of estimated energy
savings, demand savings, monetary costs and avoided monetary costs to actual
energy savings, demand savings, actual monetary costs, and avoided monetary
costs for each of the utility's approved measures or programs by year;
(4) a listing of the number of program
participants served for each of the utility's approved measures or programs by
year;
(5) a listing of the calculated economic
benefits for each of the utility's approved measures or programs by year;
(6) information on the number of
customers applying for and participating in self-direct programs, the number of
customers applying for and receiving exemptions, measurement and verification
of self-direct program targets, payback periods and achievements, customer
expenditures on qualifying projects, oversight expenses incurred by the utility
representative or administrator; and
(7) any other information required by the
commission.
[17.7.2.14 NMAC - Rp.
17.7.2.14 NMAC, 9/26/2017]
17.7.2.15 MEASUREMENT AND VERIFICATION:
A. Every energy efficiency and load management program shall be
independently evaluated at least every three years. Every year, a public utility shall submit to
the commission a comprehensive measurement, verification and program evaluation
report prepared by an independent program evaluator.
(1) The independent program evaluator
shall, at a minimum determine and verify energy and demand savings;
(a) determine
and verify energy and demand savings;
(b) determine
program cost effectiveness by applying the monetary values contained in the
utility’s approved plan year application;
(c) assess the
public utility's performance in implementing energy efficiency and load
management programs;
(d) assess whether
the utility has failed to meet its requirements under the Efficient Use of
Energy Act or has not operated in good faith;
(e) provide
recommended improvements on program performance for commission directed
modification;
(f) confirm that
commission approved measures and programs were installed or implemented, meet
reasonable quality standards, and are operating fully and correctly;
(g) utilize
applicable international performance measurement and verification protocols,
describe any deviation from those protocols, and explain the reason for that
deviation; and
(h) fulfill any
other measurement and verification statutory requirements not specifically
delineated herein.
(2) The public utility shall cooperate
with the independent program evaluator and commission staff in making
information and personnel available to facilitate the independent program
evaluator's proper evaluation of each public utility and completion of a
comprehensive measurement, verification and program evaluation report.
B. The commission, through its staff,
will select and direct an independent program evaluator to prepare and submit a
comprehensive measurement, verification and program evaluation report to the
commission. Staff, to fulfill its
obligation under Subsection B of this Section, may consult with public
utilities and other interested parties.
C. Staff shall:
(1) undertake a competitive bid process
and abide by state purchasing rules and commission policies in selecting a sole
independent program evaluator to evaluate public utility compliance with the
Efficient Use of Energy Act;
(2) develop a request for proposals
("RFP"), including the scope, terms of work, and evaluation process
to score the RFP responses;
(3) receive, review, score and rank the
RFP responses;
(4) subsequently rank and recommend
competitive qualified bidders to the commission;
(5) negotiate a contract with the
competitive bidder awarded the contract; and
(6) administer the contract,
including: confirming that contract
deliverables are met, reviewing invoices and related contract performance, and
approving utility invoices after staff's review and approval.
D. Funding for services of the
independent program evaluator's completion of a comprehensive measurement and
verification report will be paid initially by the public utility and treated as
a regulatory asset; to be recovered through rates established in the public
utility's next general rate proceeding.
E. Self-direct measures, programs,
expenditures, credits and exemptions shall be evaluated and reported in the
utility's annual report by the independent program evaluator using the same
measurement and verification standards applied to utility measures and programs
by the utility or commission-approved self-direct program administrator.
F. Upon written request by the large
customer, the information provided by large customers to the utility or program
administrator, program evaluator, or others, shall remain confidential except
as otherwise ordered by the commission.
G. The
commission may require other information.
[17.7.2.15 NMAC - Rp.
17.7.2.15 NMAC, 9/26/2017]
17.7.2.16 RURAL ELECTRIC COOPERATIVES:
A. Distribution cooperative utilities
shall, within 24 months after the effective date of this rule, and every 24
months thereafter, examine potential customer assistance in reducing energy
consumption or peak electricity demand in a cost-effective manner. Based on these studies, distribution
cooperative utilities shall establish and implement energy efficiency and load
management targets and programs that are economically feasible and practical
for their members and customers.
Approval for such programs shall reside with the governing body of each
distribution cooperative utility rather than the commission.
B. Each distribution cooperative
utility shall simultaneously file with the commission its annual report by May
1st, along with a report describing the cooperative's examination of efficiency
potential set forth in Subsection A of Section 17.7.2.18 NMSA 1978. The distribution cooperative utility's report
will also address all of its programs or measures that promote energy
efficiency, conservation or load management.
The report shall set forth the costs of each of the programs or measures
for the previous calendar year and the resulting effect on electricity
consumption. In offering or implementing
energy efficiency, conservation or load management programs, a distribution cooperative
utility shall attempt to minimize any cross-subsidies between customer classes.
C. Each distribution cooperative
utility shall include in the report required by Subsection B of Section
17.7.2.18 NMSA 1978, a description of all planned programs or measures to
promote energy efficiency, conservation or load management and the anticipated
implementation date.
D. Costs resulting from programs or
measures to promote energy efficiency, conservation or load management may be
recovered by the distribution cooperative utility through its general
rates. In requesting approval to recover
such costs in general rates, the distribution cooperative utility may elect to
use the procedure set forth in Subsection G of Section 62-8-7 NMSA 1978.
E. The commission may develop necessary
compliance forms.
[17.7.2.16 NMAC - Rp.
17.7.2.16 NMAC, 9/26/2017]
17.7.2.17 [RESERVED]
[17.7.2.17 NMAC - Rp.
17.7.2.17 NMAC, 9/26/2017; Repeal, 10/26/2021]
17.7.2.18 AUDIT: The commission
may order a public utility to submit to an audit that examines whether the
public utility's energy efficiency and load management program costs are
prudent, reasonable and being properly assigned to programs in accordance with
this rule, commission orders, and other applicable requirements and
standards. The cost of such audit shall
be considered recoverable program costs, unless it results in a commission
order containing findings of the public utility's malfeasance, in which case,
audit costs shall not be recoverable from the public utility's customers.
[17.7.2.18 NMAC - Rp.
17.7.2.18 NMAC, 9/26/2017]
17.7.2.19 VARIANCES: Written
applications for a variance from any of the provisions of this guideline shall:
A. state the reason(s) for the variance
request;
B. identify each of the sections of
this guideline for which a variance is requested;
C. describe the effect the variance
will have, if granted, on compliance with this guideline;
D. describe how granting the variance
will not compromise, or will further, the purposes of this guideline; and
E. indicate why the proposed variance
is a reasonable alternative to the requirements of this guideline.
[17.7.2.19 NMAC - N,
9/26/2017]
HISTORY OF 17.7.2 NMAC:
Pre NMAC History:
none.
History of Repealed
Material:
17.7.2
NMAC, Energy Efficiency (filed 2/2/2007), repealed 5/3/2010.
17.7.2
NMAC, Energy Efficiency (filed 4/16/2010), repealed 1/1/2015.
17.7.2
NMAC, Energy Efficiency, filed
(04/16/2010) - Repealed effective 9/26/2017.
NMAC History:
17.7.2
NMAC, Energy Efficiency (filed 2/2/2007) was replaced by 17.7.2 NMAC, Energy
Efficiency, effective 5/3/2010.
17.7.2
NMAC, Energy Efficiency, (filed
04/16/2010) was replaced by 17.7.2
NMAC, Energy Efficiency, effective 9/26/2017.