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Workgroup 1: Energy Efficiency Incentive



The Energy Efficiency Incentive (EEI), as envisioned in April 2010 draft proposal, will provide incentive funding to utilities to acquire energy efficiency savings. The amount of funding initially available to an individual utility will be based on its Tier One Cost Allocation (TOCA). However, to ensure that a utility's allocated funds are used to achieve energy savings in a 'timely' manner, spending will be reviewed at a predetermined interval. If funds are not being spent in a 'timely' manner, they will be transferred into a common pool available for access by other customers. Thus, this workgroup will focus on the structure and functioning of the EEI.

Co-Chairs: Margaret Lewis (BPA) and Megan Stratman (Northwest Requirements Utilities).

Participants and stakeholders may submit documents, discussion comments, questions, etc., to the workgroup email address: workgroupone@bpa.gov.


Workgroup 1 Materials



CALENDAR
AGENDAS
MEETING NOTES

Workgroup 1 Issues



The following questions help lay the groundwork for the workgroup:
  • How can BPA and its customers reach an agreement on which projects in the queue are acceptable to reserve EEI funding?
  • How, if at all, can EEI budgets be managed over time and across rate periods? What flexibility can be provided within the confines of BPA’s financial restrictions?
  • When do funds get removed from a customer’s ‘account’ and put into a common pool?
  • How should it be determined which customers have access to available dollars in the common pool?
  • How can customers be notified of a redistribution of unspent energy efficiency funding in order to facilitate the maximum number of proposals to achieve cost-effective conservation with such redirected funding?
  • Can a group of customers that want to pool their EEI funding be allowed or encouraged to do so?
  • How can direct acquisition programs be integrated within the framework of the EEI? This would require some level of forecasting spending. Can/should BPA provide capital funding, to be repaid by an individual customer, above and beyond the EEI allocated amount? How would it be determined when this is needed and how BPA would be reimbursed for the funding? How does this affect/interact with the 25% self-funding component?
  • Is there a structure that could be established to give customers more of an incentive to self-fund under the 75/25 split, while recognizing that not every customer will fund conservation 75% BPA/EEI and 25% self- fund (i.e., some customers may self-fund far more than 25% while others may self-fund far less; the 75/25 split is intended to be an average across all BPA customers)? Some structures to consider include:
    • Pay for only ¾ of the savings reported
    • Require customers to report 25% to BPA before incentives are paid
    • Don’t allow early-start


    Phase 2 Overview


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