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Energy efficiency and peak demand order/rules highlights

(Ohio Administrative Code 4901:1-39)

  • Commission establishes the expectation that electric distribution utilities will implement all cost-effective energy efficiency and peak demand reduction - recognizing that S.B. 221 benchmarks establish a floor not a ceiling for what can be accomplished; i.e. when it is more cost-effective to save energy than to provide power, electric distribution utilities must offer energy savings. O.A.C. 4901:1-39-04(A).
  • Commission adopts the Total Resource Cost Test.  O.A.C. 4901:1-39-01(G) and (W).
  • All surplus energy savings may be banked and used to meet future energy efficiency or advanced energy benchmarks.  There is no banking for demand reduction.  O.A.C. 4901:1-39-05(E)
  • Collaboratives/stakeholder engagement are encouraged but not mandated. O.A.C. 4901:1-39-03(D) and 4901:1-39-04(C)(2).
  • Mercantile customers and EDUs may agree to include energy efficiency savings or peak demand reductions accomplished by the mercantile customer within the EDU’s portfolio plan.  This agreement may include an exemption from the EDU’s cost recovery for its portfolio plan.  O.A.C. 4901:1-39-08.

Timing and key requirements

  • Within 60 days of the rules becoming final, each EDU must file a report identifying its 2009 baselines and benchmarks.  (O.A.C. 4901:1-39-05(A).)  Any person may file comments within 30 days of this report.  (O.A.C. 4901:1-39-06(A).) 
  • Prior to January 1, 2010, each EDU must file a program portfolio plan for energy efficiency and peak reduction programs.  (O.A.C. 4901:1-39-04(A).)  In order to prepare the program portfolio plan, the EDU must undertake a methodical review (called an “assessment of potential”) of possible programs that might be successful within its territory.  (O.A.C. 4901:1-39-03(A).)  This assessment of potential must be included in its portfolio plan.   (O.A.C. 4901:1-39-04(C)(1).)  Any person may file objections to the program portfolio plan within 60 days. (O.A.C. 4901:1-39-04(D.)  The commission will hold a hearing to approve, reject, or modify and approve the program portfolio plan.  (O.A.C. 4901:1-39-04(E.)  The EDU must repeat this process every three years.    (O.A.C. 4901:1-39-04(A.)     
  • Upon approval of its program portfolio plan, an EDU may seek recovery of its costs.   (O.A.C. 4901:1-39-07(A).)  Any person may object within 30 days.  The commission may set the matter for hearing.    (O.A.C. 4901:1-39-07(B).)  Recovery will be subject to an annual true-up.  (O.A.C. 4901:1-39-07(A).)
  • Each year on April 15th, the EDU must file a portfolio status report that demonstrates its compliance status with its benchmarks and provides a meaningful assessment of its approved portfolio plan’s performance.  (O.A.C. 4901:1-39- 5(C).)  This report must include a measurement and verification report from an independent program evaluator whose work is directed by the PUCO staff.  (O.A.C. 4901:1-39-05(C)(2)(b).)  Any person may file comments within 30 days of the EDU’s report.  (O.A.C. 4901:1-39-06(A).)  The commission may set the matter for hearing; however, if a forfeiture for noncompliance is recommended, the commission will set the matter for hearing.  (O.A.C. 4901:1-39-06(C).)  The commission will issue an annual verification report for the EDU’s achieved energy savings and peak demand reduction and potentially adopt modifications to the EDU’s approved portfolio plan.  (O.A.C. 4901:1-39-06(D).)