7. Assignment of Proceeding
Dian M. Grueneich is the assigned Commissioner and Darwin E. Farrar is the assigned ALJ in this proceeding.
1. The objective for this EM&V review is to prepare for the 2013-2015 energy efficiency program cycle by updating our energy efficiency EM&V and ensuring effective EM&V for the purpose of resource procurement and measuring progress toward achieving the goals of the Strategic Plan.
2. The policy framework underlying energy efficiency has undergone significant transformation since its conception more than five years ago.
3. The current EM&V framework is not sufficient to effectively evaluate future energy efficiency programs in California's dynamic and evolving energy efficiency market.
4. Our current EM&V policy and methodological framework should be updated to reflect both the lessons learned from the 2006-2008 cycle and evolution in the regulatory and market landscapes.
5. Going forward the Commission must further balance the benefits of and need for more accurate attribution with the need for timely and cost-effective EM&V results.
6. Energy efficiency policies must rely on realistic expectations of what EM&V can achieve in terms of attribution and appropriately tailor defined objectives to balance cost, benefits, and uncertainty of results.
7. EM&V activities that enable the Commission and the IOUs to improve their assessment of energy efficiency impacts for use in demand forecasting (and ultimately procurement) should be undertaken by the Commission.
8. EM&V and related activities that accurately reflect impacts on demand ensure that efficiency will displace conventional generation and will be used as the first resource in California's "loading order."
9. Data collected by utilities via advanced meters could supplant data currently collected "by hand."
10. Developing new EM&V metrics, including Macro Consumption Metrics and Market Transformation Metrics, and being able to use Experimental Design, may help the Commission assess progress in achieving the carbon emission reductions required by AB 32 and the Strategic Plan.
11. Macro Consumption Metrics may allow us to accurately measure the impact of our energy efficiency efforts on overall energy consumption and provide a more direct account of aggregate reductions in GHG emissions.
12. Because Macro Consumption Metrics rely on existing energy usage data and relatively simple statistical analysis, it should be possible to develop them quickly and at a reasonable cost to ratepayers.
13. Experimental Design is a well documented quantitative research method which relies on the use of a control group to isolate the program impacts from other factors which influence energy use.
14. Effective Experimental Design may offer substantial benefits to energy efficiency program EM&V.
15. Adopting energy efficiency goals based on the Total Market Gross perspective and mandating that they be used in resource procurement and planning activities requires that EM&V activities expand to encompass a greater range of energy efficiency delivery mechanisms.
16. Preparing the Commission's energy efficiency EM&V for post-2012 energy efficiency programs requires a dedicated effort supported by independent facilitators and technical expertise.
1. Post-2012 EM&V objectives include GHG reductions consistent with CARB's AB 32 Scoping Memo and measuring the market transformation goals in the Strategic Plan.
2. Commission policies require that our EM&V attribute savings as effectively as possible.
3. The EM&V workshop series should be the vehicle through which stakeholders prepare the 2013-2015 Energy Efficiency EM&V Plan.
4. In D.10-04-029 we authorized the 2010-2012 Joint Energy Division/IOU EM&V Plan. That plan includes a total energy consumption pilot designed to assess the reduction in energy consumption resulting from the various energy efficiency programs and efforts in California.
5. In light of the Commission's new requirements with regard to Total Market Gross energy efficiency goals, the effects of energy efficiency programs must be understood in the context of overall demand, and the effects of other demand-side activities.
6. Comments and workshops in this proceeding may not have identified all relevant EM&V issues that need to be addressed in preparing the 2013-2015 Energy Efficiency EM&V plan.
7. Funding for consultant services provided under contract to the PPD to support the workshops ordered herein should be drawn from the 2010-2012 EM&V budget authorized in D.10-04-029.
8. It is reasonable for PPD to utilize the EM&V workshop series ordered herein to identify and address issues which require further stakeholder consideration.
IT IS ORDERED that:
1. There is no need for evidentiary hearings in this proceeding.
2. Consistent with Decision 09-09-047 and the discussion herein, the objectives in Appendix A are adopted.
3. The Commission's Energy Division shall contract with one or more consultants to expedite the Total Energy Consumption Pilot.
4. Pacific Gas and Electric Company, Southern California Edison Company, San Diego Gas & Electric Company, and Southern California Gas Company shall cooperate fully with Energy Division's efforts to expedite the Total Energy Consumption Pilot and shall timely provide any energy usage data Energy Division deems necessary.
5. The 2013-2015 Energy Efficiency Evaluation, Measurement and Verification Plan must be developed in collaboration with program administrators.
6. The Commission's Policy and Planning Division shall lead Evaluation, Measurement, and Verification workshops in this proceeding dedicated to preparing the Commission's Energy Efficiency Evaluation, Measurement and Verification Plan for the 2013 - 2015 energy efficiency program cycle.
7. The Commission's Policy and Planning Division may contract with a qualified facilitator and/or technical experts, as necessary, with funding from the 2010-2012 Evaluation, Measurement, and Verification budget authorized in Decision 10-04-029.
8. Through the Evaluation, Measurement, and Verification Workshops, the Commission's Energy Division shall develop the 2013-2015 Energy Efficiency Evaluation, Measurement, and Verification Plan for submission in this proceeding, to be used to evaluate, measure, and effectively verify the 2013 - 2015 energy efficiency programs.
9. Energy Division shall develop the Total Energy Consumption Pilot metric in coordination with California Energy Commission staff so as to maximize the potential benefits to the California Energy Commission's demand forecasting efforts and shall include the metric shall in the 2013-2015 Energy Efficiency Evaluation, Measurement and Verification Plan.
10. The Commission's Energy Division shall present the results of the Advanced Metering Infrastructure-Evaluation, Measurement and Verification focused workshop in a report to the Director of the Energy Division no later than 120 days after the date of the workshop and incorporate these results into the 2013-2015 Energy Efficiency Evaluation, Measurement and Verification Plan.
11. Energy Division shall serve the 2013-2015 energy Efficiency Plan at the same time IOUs file their 2013-2015 portfolio application.
This order is effective today.
Dated October 28, 2010, at San Francisco, California.
MICHAEL R. PEEVEY
President
JOHN A. BOHN
TIMOTHY ALAN SIMON
NANCY E. RYAN
Commissioners
Commissioner Dian M. Grueneich, being necessarily absent, did not participate.
Appendix A
Core Objectives of Energy Efficiency Evaluation,
Measurement, and Verification (EM&V)
1. Savings Measurement and Verification - Measurement and verification of savings resulting from energy efficiency measures, programs, and portfolios serve the fundamental purpose of developing estimates of reliable load impacts delivered through ratepayer-funded efficiency efforts. Measurement and verification work should reflect a reasonable balance of accuracy and precision, cost, and certainty, and be designed for incorporation in procurement planning activities.
2. Program Evaluation - Evaluation of program-specific qualitative and quantitative measures, such as the program performance metrics and process evaluations, serves a key role in providing feedback for the purposes of improving performance and supporting forward-looking corrections to utility programs and portfolios. In order to maximize return on ratepayer dollars, program evaluations must be completed on a timeline which informs mid-course corrections and/or program planning for the following cycle.
3. Market Assessment - In a constantly evolving environment, market assessments are an essential EM&V product needed to set the baseline for strategic design and improvement of programs and portfolios, identify and track appropriate metrics of market change, and measure progress toward achieving the goals of the California Long-Term Energy Efficiency Strategic Plan. Saturation studies, surveys of emerging technologies, market transformation metrics, and other such analyses which inform estimates of remaining program potential, forward-looking goal-setting, and program planning are key aspects of market assessment.
4. Policy and planning support - Consistent with prior program cycles, it is essential to reserve funding to support overarching studies and advisory roles which support Commission policy goals. Over the last program cycle this has been inclusive of potential and goals studies, maintenance of the Database for Energy Efficiency Resources, developing databases of best practices for program design and delivery, program design mix, and other means which support the Commission's oversight role, but do not fall under the core EM&V categories described above.
4. Financial and Management audit - Supporting the Commission's oversight function of ensuring the efficient and effective expenditures of ratepayer funds within the utilities' energy efficiency portfolios is another objective of EM&V activities. Rigorous financial and management audits overseen by Commission staff will be critical in ensuring that the utilities' general and administrative costs, and other program expenditures are prudent and reasonable.
(END OF APPENDIX A)
