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Section 4. Energy Efficiency Plan. (A) An energy efficiency plan shall do all of the following: (1) Propose a set of energy efficiency programs, including peak demand reduction programs, that include offerings for each customer class, including low-income residential. The Commission shall allow providers flexibility to tailor the relative amount of effort devoted to each customer class based on the specific characteristics of their service territory. (2) Specify necessary funding levels for proposed energy efficiency programs. (3) Describe how energy efficiency costs will be recovered, as provided in Section 7. (4) Seek, to the extent feasible and reasonable, that charges collected from a particular customer rate class are spent on energy efficiency programs for that rate class. (5) Demonstrate that the proposed energy efficiency programs and funding are sufficient to ensure the achievement of applicable energy efficiency performance standards under Section 2. (6) Demonstrate that the utility’s energy efficiency programs will collectively be cost- effective, using the Total Resource Cost Test provided in Section 1. (7) Provide for the practical and effective administration of the proposed energy efficiency programs. The Commission shall allow utilities flexibility in designing their energy efficiency programs and administrative approach. A utility’s energy efficiency programs or any part thereof, may be administered, at the utility’s option, by the utility, alone or jointly with other utilities, by a state agency, or by an appropriate, experienced organization selected after a competitive bid process. (8) Include a process for measurement and verification of incremental energy savings from each energy efficiency program pursuant to Section 5. All such evaluations shall be subject to public review and Commission oversight. (9) Allow for the coordination of energy efficiency programs with the energy efficiency programs of other utilities under the direction of the Commission pursuant to subsection (E). (B) An energy efficiency plan may provide for the utility to facilitate third-party loans to customers to finance energy efficiency measures. (C) Within 90 days after the effective date of this act and biennially thereafter, a retail electric distribution or natural gas utility shall file an energy efficiency plan with the Commission. (D) Within 90 days of receiving an energy efficiency plan from a utility and after an opportunity for public comment, the Commission shall approve, approve with changes consented to by the utility, or reject the plan. (1) If the Commission rejects the plan the Commission shall state the reasons for its action. (2) Within 30 days after the Commission rejects a plan, the utility shall submit a revised plan that addresses the reasons for rejection cited by the Commission. (3) Within 30 days after receiving a revised plan and after an opportunity for public comment, the Commission shall approve, approve with changes consented to by the utility, or reject the revised plan. If the Commission rejects the revised plan, the Commission shall state the reasons for the rejection. (4) Any delay caused by the failure of a utility to file an acceptable revised plan under sub-paragraph (2) shall not be used as a reason to avoid penalties under Section 10. (5) The procedure for rejected plans shall be repeated until a revised plan is approved or approved with changes consented to by the utility. The Commission’s action under this subsection does not affect the applicability of the requirements of Section 2 or Section 10. (E) The Commission may coordinate energy efficiency programs among consenting utilities where feasible, if doing so would help to maximize energy savings on a statewide basis. However, money spent by a utility to comply with this act shall only be used to fund energy efficiency programs that provide services in that utility’s service territory. 12PDF Image | Energy Efficiency Resource Standards
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