Texas Register, Volume 32, Number 44, Pages 7777-8060, November 2, 2007 Page: 7,835
7777-8060 p. ; 28 cm.View a full description of this periodical.
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(6) Demand savings--A quantifiable reduction in demand.
(7) Eligible customers--Residential and commercial cus-
tomers. In addition, to the extent that they meet the criteria for par-
ticipation in load management standard offer programs developed for
industrial customers and implemented prior to May 1, 2007, industrial
customers are eligible customers solely for the purpose of participating
in such programs.
(8) Energy efficiency--Improvements in the use of electric-
ity that are achieved through facility or equipment improvements, de-
vices, or processes that produce reductions in demand or energy con-
sumption with the same or higher level of end-use service and that
do not materially degrade existing levels of comfort, convenience, and
productivity.
(9) Energy efficiency measures--Equipment, materials, and
practices at a customer's site that result in a reduction in electric en-
ergy consumption, measured in kilowatt-hours (kWh), or peak demand,
measured in kilowatts (kWs), or both. These measures may include
thermal energy storage and removal of an inefficient appliance so long
as the customer need satisfied by the appliance is still met.
(10) Energy efficiency program--The aggregate of the en-
ergy efficiency activities carried out by an electric utility under this
section or a set of energy efficiency projects carried out by an electric
utility under the same name and operating rules.
(11) Energy efficiency project--An energy efficiency mea-
sure or combination of measures undertaken in accordance with a stan-
dard offer or market transformation program.
(12) Energy efficiency service provider--A person who in-
stalls energy efficiency measures or performs other energy efficiency
services under this section. An energy efficiency service provider may
be a retail electric provider or commercial customer.
(13) Energy savings--A quantifiable reduction in a cus-
tomer's consumption of energy.
(14) Growth in demand--The annual increase in demand in
the Texas portion of an electric utility's service area at time of peak
demand, as measured in accordance with this section.
(15) Hard-to-reach customers--Residential customers with
an annual household income at or below 200% of the federal poverty
guidelines.
(16) Incentive payment--Payment made by a utility to an
energy efficiency service provider under an energy-efficiency program.
(17) Inspection--Examination of a project to verify that an
energy efficiency measure has been installed, is capable of performing
its intended function, and is producing an energy saving or demand
reduction.
(18) Load control--Activities that place the operation of
electricity-consuming equipment under the control or dispatch of an
energy efficiency service provider, an independent system operator or
other transmission organization or that are controlled by the customer,
with the objective of producing energy or demand savings.
(19) Load management--Load control activities that result
in a reduction in peak demand on an electric utility system or a shifting
of energy usage from a peak to an off-peak period or from high-price
periods to lower price periods.
(20) Market transformation program--Strategic efforts to
induce lasting structural or behavioral changes in the market that re-
sult in increased adoption of energy efficient technologies, services,
and practices, as described in this section.(21) Measurement and verification--Activities intended to
determine the actual energy and demand savings resulting from energy
efficiency projects as described in this section.
(22) Off-peak period--Period during which the demand on
an electric utility system is not at or near its maximum. For the purpose
of this section, the off-peak period includes all hours that are not in the
peak period.
(23) Peak demand--Electrical demand at the times of high-
est annual demand on the utility's system.
(24) Peak demand reduction--Reduction in demand on the
utility system during the utility system's peak period.
(25) Peak period--For the purpose of this section, the peak
period consists of the hours from one p.m. to seven p.m., during the
months of May, June, July, August, and September, excluding week-
ends and Federal holidays.
(26) Renewable demand side management (DSM) tech-
nologies--Equipment that uses a renewable energy resource (renewable
resource), as defined in 25.173(c) of this title (relating to Goal for
Renewable Energy) that, when installed at a customer site, reduces the
customer's net purchases of energy, demand, or both.
(27) Standard offer contract--A contract between an energy
efficiency service provider and a participating utility specifying stan-
dard payments based upon the amount of energy and peak demand sav-
ings achieved through the installation of energy efficiency measures at
electric customer sites, the measurement and verification protocols, and
other terms and conditions, consistent with this section.
(28) Standard offer program--A program under which a
utility administers standard offer contracts between the utility and
energy efficiency service providers.
(d) Cost-effectiveness standard. An energy efficiency pro-
gram is deemed to be cost-effective if the cost of the program to the
utility is less than or equal to the benefits of the program.
(1) The cost of a program includes the cost of incentives,
measurement and verification, and actual or allocated research and de-
velopment and administrative costs. The benefits of the program con-
sist of the value of the demand reductions and energy savings, measured
in accordance with the avoided costs prescribed in this subsection. The
present value of the program benefits shall be calculated over the pro-
jected life of the measures installed under the program.
(2) The avoided capacity cost shall be based on the esti-
mated capital cost of a new gas turbine, and the avoided energy costs
shall be based on wholesale energy costs.
(A) The initial avoided cost of capacity is $80/kW per
year. The avoided cost of capacity shall be adjusted every two years
based on the annual capacity costs of a new simple-cycle gas turbine,
using a recognized industry source of information, adjusted for line
losses.
(B) The initial avoided cost of energy is $0.055
cents/kWh. The avoided cost of energy shall be adjusted annually
to the simple average of the market clearing price in ERCOT for
balancing energy for the previous calendar year. For areas outside
of ERCOT with a regional transmission organization that has been
approved by the Federal Energy Commission and operates a balancing
market and publicly reports prices in the market, the avoided energy
cost may be adjusted to the simple average of the market clearing price
in the region for balancing service. For areas that do not have such a
regional transmission organization, the ERCOT avoided energy costPROPOSED RULES November 2, 2007 32 TexReg 7835
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Texas. Secretary of State. Texas Register, Volume 32, Number 44, Pages 7777-8060, November 2, 2007, periodical, November 2, 2007; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth97421/m1/57/: accessed July 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.