• Under the terms of the Settlement Agreement, PSCo will “maintain a filed electric energy efficiency (“EE”) budget of approximately $90 million each year of the 2021-22 DSM Plan.

• The Settlement Agreement also proposes an electric energy efficiency portfolio exceeding the Commission’s goals of 500 GWh of electric energy savings and 75 MW of demand reduction established in Proceeding No. 17A-0462EG.

• While the budgets contained in the Settlement Agreement are less than the energy efficiency budgets in PSCo’s 2019- 2020 DSM Plan approved in Proceeding No. 18A0606EG, they are forecasted to result in greater electric energy savings (GWh) and electric demand reduction (MW), indicating greater energy savings per dollar spent compared to the 2019-2020 DSM Plan.

• The budget proposed in the Settlement Agreement increases the budgets for the Income-Qualified (IQ) energy efficiency programs in 2021 and 2022 by $172,443.

• The natural gas energy efficiency goals in the Settlement Agreement are slightly lower than those presented in the originally proposed DSM Plan. Nevertheless, they are still greater than the current goals approved in the 2019-2020 DSM Plan proceeding. Specifically, while the natural gas energy efficiency goal for 2019-2020 was 1,382,881 dekatherms (Dth), the goal for 2021-2022 is 1,580,580 Dth, which is 14.3 percent increase.

• The budget for natural gas energy efficiency in the Settlement Agreement slightly increased compared to the originally proposed 2021-2022 DSM Plan.

• In the Settlement Agreement, the parties agreed to PSCo’s proposed beneficial electrification program proposed in the Application, as well as to several new provisions addressing beneficial electrification, including (a) Increasing the amount dedicated to beneficial electrification offerings from the $500,000 included in the Application to $1 million; (b) Evaluating tiered incentives based on heating efficiency; (c) Evaluating the expansion of current commercial heat pump offerings; (d) Offering cold climate heat pumps with tiered incentives; (e) Offering Trade Partner or Distributor incentives; and (f) Offering substantial market transformation and workforce training activities and an associated budget. While these offerings focus in large part on increasing the deployment of heat pumps, PSCo “will continue to provide support for efficient air conditioning products and natural gas appliances, [which] represent[s] a compromise position for some parties” who wanted to shift such incentives to beneficial electrification.”