25-17.0021. Goals for Electric Utilities

(1) The Commission will initiate a proceeding at least once every five years to establish goals for each affected electric utility, as defined by Section 366.82(1)(a), F.S. The Commission will set annual Residential kilowatt (KW) and kilowatt-hour (KWH) goals and annual Commercial/Industrial KW and KWH goals over a ten-year period. The goals will be based on:

(a) An assessment of the technical potential of available measures; and

(b) An estimate of the total cost-effective KW and KWH savings reasonably achievable through demand-side management programs in each utility’s service area over a ten-year period.

(2) Pursuant to the schedule in an order establishing procedure in the proceeding to establish demand-side management goals, each utility must file a technical potential study. The technical potential study must be used to develop the proposed demand-side management goals, and it must assess the full technical potential of all available demand-side conservation and efficiency measures, including demand-side renewable energy systems, associated with each of the following market segments and major end-use categories.

Residential Market Segment:

(Existing Homes and New Construction should be separately evaluated) Major End-Use Category

(a) Building Envelope Efficiencies.

(b) Cooling and Heating Efficiencies.

(c) Water Heating Systems.

(d) Lighting Efficiencies.

(e) Appliance Efficiencies.

(f) Peak Load Shaving.

(g) Solar Energy and Renewable Energy Sources.

Commercial/Industrial Market Segment:

(Existing Facilities and New Construction should be separately evaluated) Major End-Use Category

(h) Building Envelope Efficiencies.

(i) Cooling and Heating Efficiencies.

(j) Lighting Efficiencies.

(k) Appliance Efficiencies.

(l) Power Equipment/Motor Efficiency.

(m) Peak Load Shaving.

(n) Water Heating Systems.

(o) Refrigeration/Freezing Equipment.

(p) Solar Energy and Renewable Energy Sources.

(q) High Thermal Efficient Self Service Cogeneration.

Each utility’s filing must describe how the technical potential study was used to develop the goals filed pursuant to subsection (3) below, including identification of measures that were analyzed but excluded from consideration.

(3) Pursuant to the schedule in an order establishing procedure in the proceeding to establish demand-side management goals, each utility must file its proposed demand-side management goals. Each utility must also file demand-side management goals developed under two scenarios: one scenario that includes potential demand-side management programs that pass the Participant and Rate Impact Measure Tests, and one scenario that includes potential demand-side management programs that pass the Participant and Total Resource Cost Tests, as these terms are used in Rule 25-17.008, F.A.C. Each utility’s goal projections must be based on the utility’s most recent planning process and must reflect the annual KW and KWH savings, over a ten-year period, from potential demand-side management programs with consideration of overlapping measures, rebound effects, free riders, interactions with building codes and appliance efficiency standards, and the utility’s latest monitoring and evaluation of conservation programs and measures. In addition, for each potential demand-side management program identified in the proposed goals and in each scenario described above, each utility must provide overall estimated annual program costs over a ten-year period.

(4) Within 90 days of a final order establishing or modifying goals, each utility must file its demand-side management plan that includes the programs to meet the approved goals, along with program administrative standards that include a statement of the policies and procedures detailing the operation and administration of each program. The following information must be filed for each demand-side management program included in the utility’s demand-side management plan for a ten-year projected horizon period:

(a) The program name;

(b) The program start date;

(c) The total number of customers, or other appropriate unit of measure, in each class of customer (i.e. residential, commercial, industrial, etc.) for each calendar year in the planning horizon;

(d) The total number of eligible customers, or other appropriate unit of measure, in each class of customers (i.e., residential, commercial, industrial, etc.) for each calendar year in the planning horizon;

(e) An estimate of the annual number of customers, or other appropriate unit of measure, in each class of customers projected to participate in the program for each calendar year of the planning horizon, including a description of how the estimate was derived;

(f) The cumulative penetration levels of the program by calendar year calculated as the percentage of projected cumulative participating customers or appropriate unit of measure, by year to the total customers eligible to participate in the program;

(g) Estimates on an appropriate unit of measure basis of the per customer and program total annual KWH reduction, winter KW reduction, and summer KW reduction, both at the customer meter and the generation level, attributable to the program. A summary of all assumptions used in the estimates and a list of measures within the program must be included;

(h) A methodology for measuring actual KW and KWH savings achieved from each program, including a description of research design, instrumentation, use of control groups, and other details sufficient to ensure that results are valid;

(i) An estimate of the cost-effectiveness of the program using the cost-effectiveness tests required pursuant to Rule 25-17.008, F.A.C.

(j) An estimate of the annual amount to be recovered through the energy conservation cost recovery clause for each calendar year in the planning horizon.

(5) The Commission may, on its own motion or on a petition by a substantially affected person or a utility, initiate a proceeding to review and, if appropriate, modify the goals. All modifications of the approved goals, plans, and programs will be on a prospective basis.

(6) Each utility must submit an annual report no later than March 1 summarizing its demand-side management plan and the total actual achieved results for its approved demand-side management plan in the preceding calendar year. The report must contain a comparison of the achieved KW and KWH reductions with the established Residential and Commercial/Industrial goals, and the following information for each approved program:

(a) The name of the utility;

(b) The name of the program and program start date;

(c) The calendar year the report covers;

(d) The total number of customers, or other appropriate unit of measure, by customer class for each calendar year of the planning horizon;

(e) The total number of customers, or other appropriate unit of measure, eligible to participate in the program for each calendar year of the planning horizon;

(f) The total number of customers, or other appropriate unit of measure projected to participate in the program for each calendar year of the planning horizon;

(g) The potential cumulative penetration level of the program to date calculated as the percentage of projected participating customers to date to the total eligible customers in the class;

(h) The actual number of program participants and the current cumulative number of program participants;

(i) The actual cumulative penetration level of the program calculated as the percentage of actual cumulative participating customers to the number of eligible customers in the class;

(j) A comparison of the actual cumulative penetration level of the program to the potential cumulative penetration level of the program;

(k) A justification for any variance greater than 15% from the annual goals established by the Commission;

(l) Using on-going measurement and evaluation results the annual KWH reduction, the winter KW reduction, and the summer KW reduction, both at the meter and the generation level, per installation and program total, based on the utility’s approved measurement/evaluation plan;

(m) The per installation cost and the total program cost of the utility;

(n) The net benefits for measures installed during the reporting period, annualized over the life of the program, as calculated by the following formula:

annual benefits = Bnpv × d/[1 - (1+d)-n ]

where

 

Bnpv	=	cumulative present value of the net benefits over the life of the program for measures installed during the reporting period.
d	=	discount rate (utility’s after tax cost of capital).
n	=	life of the program.

Rulemaking Authority 350.127(2), 366.05(1) FS. Law Implemented 366.82 FS. History–New 4-30-93, Amended 6-6-23.