BPA EnergySmart Grocery Program
Streamlined Utility Participation Process

Summary
As part of a continuing effort to improve the functionality and value of the BPA EnergySmart Grocer (ESG) program to participants and the region, BPA is streamlining the program administrative procedures. Utilities need to make a decision to continue participation in the program and whether they want to preserve the option of funding deliveries in their territory using Conservation Rate Credit (CRC).

Background
When utilities initially opted to participate in the BPA ESG program, they were required to dedicate an amount of funding to set aside for the incentives to be paid under the program. While this requirement ensured that program activity was conducted at the appropriate scale in a given service territory, the earmarking of CRC funds for the program posed challenges in some cases:

• Utilities anticipating BPA ESG projects were required to earmark funds that might not be needed, potentially depriving other programs of those funds which could result in unspent CRC.
• Utilities with more BPA ESG projects than anticipated could run out of budget for the program, resulting in no funding for some commercial customers.

This resulted in the need for constant monitoring of program funds, and resulted in a Goldilocks dilemma where it was difficult to set aside a budget that was sized "just right."

In response to this challenge, BPA developed a new participation protocol which assures that there will be sufficient funds for all efficiency projects pursued under the BPA ESG program and utilities will be able to use CRC to fund BPA ESG projects if they wish. This solution uses a Direct Acquisition (DA) approach where BPA, through its program-delivery partner PECI, pays directly for all project incentives. Utilities then have the option of repaying BPA for project incentives spent using either their CRC funds or their own utility funds (self funding).

Participation under this new contract mechanism streamlines the utility reporting process because PECI will now track activity in the Planning Reporting and Tracking (PTR) system and cut checks, relieving utilities of this task. Participating utilities will still receive 75 percent credit toward the adjustment of their Conservation High Water Mark (CHWM) calculation, unless they fund incentives with their own utility funds. In cases of utility self funding, utilities will receive 100 percent credit toward the adjustment of their CHWM. In addition, BPA has made a determination not to apply the decrement policy for participation in this program under DA. Implementation and coordination between PECI and participating utilities will not change under this modified delivery approach.

What Participating Utilities Need to Do

For utilities participating under a current DA Consent Agreement:

• Under the consent agreement, BPA already directly pays for program incentives and no action is required.
• Utilities wishing to use the CRC repayment option to repay BPA for project incentives paid in their territory using their CRC funds must notify their COTR via email of their interest in the CRC repayment option. Please copy your Energy Efficiency Representative (EER) on this communication.
• Utilities wishing to use the self-funding repayment option to repay BPA for project incentives paid in their territory using their own utility funds must notify their COTR via email of their interest in the self-funding repayment option. Please copy your Energy Efficiency Representative (EER) on this communication.

For utilities not currently participating in the BPA EnergySmart Grocer program:

• Utilities wishing to participate in the BPA ESG program must send a written request to their COTR to sign up for the new program protocol. This written communication can be provided by email, please copy your EER. Utilities are not required to sign a formal contract.
• Utilities wishing to use the CRC repayment option to repay BPA for project incentives paid in their territory using their CRC funds must sign up for the repayment option by mentioning it to their COTR in the email mentioned above.
• Utilities wishing to use the self-funding repayment option to repay BPA for project incentives paid in their territory using their own utility funds must sign up for the self-funding repayment option by mentioning it to their COTR in the email mentioned above.

What to Expect
Under either approach BPA Energy Efficiency program staff will continue to notify PECI when a utility joins the program and/or elects either the CRC or self-funding repayment option. This notice will trigger PECI to prepare an Amended Service Agreement for utility signature. Once signed, and after a 20-day setup period, PECI will beginning cutting incentive checks to commercial customers (the grocery stores).

Each year BPA program staff will notify utilities of their total DA costs and total energy savings. If a utility wishes to repay BPA costs it must send written email confirmation back to BPA indicating the dollar amount it wishes to repay. Upon receipt of this confirmation, BPA shall send an invoice for that amount, along with the associated energy savings. Utilities pay BPA upon receipt of invoice, and can then claim the dollar amount and savings toward their CRC.

For more information, please contact your Energy Efficiency Representative.

Utility incentives for efficiency measures such as refrigeration upgrades, available to grocery stores, food marts, restaurants, schools and others