February 25, 2021
UPDATE | Xcel Energy DSM Plan
KC Cunilio, Dietze & Davis. P.C.

Good news, on Friday afternoon the Administrative Law Judge (ALJ) approved the settlement agreement in the Xcel Energy ( PsCo) DSM Plan without modification and issued the attached written Order, Recommended Decision No. R21-0081.

In Public Utility Commission (PUC) cases, when an ALJ issues a Recommended Decision, parties are permitted to file what are called “Exceptions” to the Decision where they can argue that parts of the Decision were incorrectly decided and should be reconsidered. However, since the settlement agreement for this case was unopposed, we do not anticipate that any exceptions will be filed. Therefore, this Recommended Decision should become a final Commission Order on Thursday, March 4th.
Overall, a lot of greats wins for EEBC's Policy Action Committee!
Highlights from the ALJ’s Decision:
  • 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.”

The next Xcel Energy DSM Strategic Issues filing is due
by March 31, 2022 - only a year away!
FEBRUARY, 25, 2021 @ 3 PM

Commercial Building Benchmarking
and Performance Standards
Beneficial Electrification in Buildings
Natural Gas DSM

EEBC Policy Action Committee Asks For Your Participation To Support
Legislative Outreach Effort That Drive & Impact Your Business

RSVP Contact, Patricia@eebco.org.
Colorado Energy Efficiency and Electrification Legislation

Commercial Building Benchmarking and Performance Standards
This bill requires most commercial, multifamily, and public buildings greater than 50,000 sq ft to measure and report their energy use annually through ENERGY STAR Portfolio Manager, and then makes that data public in an online resource similar to www.energizedenver.org so that the market can recognize, reward, and drive efficient, high-performing properties. Then, it requires lower-performing buildings to demonstrate performance upgrades every five years. Options for meeting the initial performance standards include reaching an ENERGY STAR score of 75 or higher, improving their ENERGY STAR score by 15 points, reaching a sector-specific target EUI, reducing EUI by 15%, or others. There are exemptions, waivers, or time extensions for buildings that have special circumstances including affordable housing, historical buildings, condos, or financial hardship situations (including COVID-related losses). After the first round of performance standards that are specified in the bill, the state’s Air Quality Control Commission will establish future performance standards.

Beneficial Electrification in Buildings (BEB)
This bill facilitates Xcel Energy and Black Hills Energy helping their customers acquire high-efficiency heat pumps, heat pump water heaters, and other electrification measures. The bill directs the PUC to set electrification targets for utility BEB programs, followed by the utilities developing plans to meet the electrification targets. The PUC will approve a utility’s BEB plan as long as it reduces net greenhouse gas emissions and is cost-effective including valuation of avoided carbon dioxide and other greenhouse gas emissions. A utility’s BEB plan must include one or more programs targeted to low-income households. Utility BEB programs are expected to include incentives, education and training, and other activities to increase the adoption of high-efficiency heat pumps and other electrification measures. Utilities will report annually on the impacts of their BEB programs. The bill also encourages but does not require, non-regulated electric utilities to implement BEB programs for their customers.

Natural Gas DSM
This bill revises some of the basic policies guiding gas utility energy efficiency programs in Colorado. It directs the PUC to set energy savings targets for the gas utility program based on the maximum cost-effective and achievable energy savings potential. It reforms the cost-effectiveness analysis of gas energy efficiency programs by requiring valuation of avoided carbon dioxide and other greenhouse gas emissions. And it calls for use of a relatively low social discount rate for determining lifecycle costs and benefits of energy efficiency investments made by consumers. The objective of these policies is to expand energy efficiency programs implemented by gas utilities.
Black Hills Colorado Electric DSM Plan Review
MARCH 24, 2021 @ 3 pm — 4 pm

Meeting ID | 987 0565 7418

The upcoming Black Hills Energy meeting is to review the new Colorado Electric DSM 2022-2024 Plan draft. If you have a specific topic for discussion to add to the agenda, please let me know so we can accommodate your request. RSVP TO Patti Olenick | patti.olenick@blackhillscorp.com
1607 Cole Blvd., Building #16, Suite 187-2 • Lakewood, CO 80401 720.274.9764