Programs

In this section, we define various types of programs that may be undertaken to achieve a public purpose objective. Not all of the program types described below are the subject of this manual. See Chapter 2 for more detail on the program types covered in this manual. Following program types, we also define some terms associated with program design and implementation, as well as some strategies associated with program delivery.

Program Types

Cogeneration: A process in which a facility uses its waste energy to produce heat or electricity.

Cross-Cutting Program: A program that involves any or all of the following: multiple customer types (residential and/or nonresidential), and/or multiple building types (retrofit, remodeling, and/or new construction).

Demand Responsiveness: See also, Load Management. Also sometimes referred to as load shifting. Activities or equipment that induce consumers to use energy at different (lower cost) times of day or to interrupt energy use for certain equipment temporarily, usually in direct response to a price signal. Examples: interruptible rates, doing laundry after 7 p.m., air conditioner cycling programs.

Demand Side or Demand Side Management (DSM): Programs that reduce the use of energy by the use of energy efficiency products, services, and practices, or that change the timing of energy use.

Distributed Generation: Small-scale electric generating technologies installed at or near an end-user's location. May also be referred to as "distributed energy resources" or "distributed resources."

Energy Efficiency: The use of high-efficiency products, services, and practices or an energy-using appliance or piece of equipment, to reduce energy usage while maintaining a comparable level of service when installed or applied on the Customer side of the meter. Energy efficiency activities typically require permanent replacement of energy-using equipment with more efficient models. Examples: refrigerator replacement, light fixture replacement, cooling equipment upgrades.

Load Management: Sometimes referred to as load shifting. Activities or equipment that induce consumers to use energy at different (lower cost) times of day or to interrupt energy use for certain equipment temporarily. Examples: interruptible rates, doing laundry after 7 p.m., air conditioner cycling programs.

Local Program: A program that provides services to customers in only one jurisdiction of the state (e.g., one county, city, or region). Local programs may be experimental and are designed to serve the needs of a particular geographic area.

Self-Generation: Distributed generation installed on the customer's side of the utility meter, providing electricity for that customer's on-site electric load without exporting electricity for sale.

Statewide Program: A program available in the service territories of all four large IOUs, with identical implementation characteristics in all areas, including incentives and application procedures.

Program Implementation Terms

Energy Efficiency Measure: Any product, service, or practice or an energy-using appliance or piece of equipment that will result in reduced energy usage at a comparable level of service when installed on the Customer side of the meter.

Market Barrier: Any characteristic of the market for an energy-related product, service, or practice that helps to explain the gap between the actual level of investment in, or practice of, energy efficiency and an increased level that would appear to be cost-beneficial to the consumer.

Program: An activity, strategy, or course of action undertaken by an implementer or administrator using PGC funds. Each program is defined by a unique combination of program strategy, market segment, marketing approach, and energy efficiency measure(s) included.

Program Design: The method or approach for making, doing, or accomplishing an objective by means of a program.

Program Development: The process by which ideas for new or revised energy efficiency programs are converted into a design to achieve a specific objective.

Program Management: The responsibility and ability to oversee and guide the performance of a program to achieve its objective.

Project: An activity or course of action undertaken by an implementer involving one or multiple energy efficiency measures, usually at a single site.

Program Strategies

Energy Management Services: Programs intended to provide customer assistance in the form of information on the relative costs and benefits to the customer of installing measures or adopting practices which can reduce the customer's utility bills. The information is solicited by the customer and recommendations are based on the customer's recent billing history and/or customer-specific information regarding appliance and building characteristics.

Incentives: Financial support (e.g., rebates, low-interest loans) to install energy efficiency measures. The incentives are solicited by the customer and based on the customer's billing history and/or customer-specific information. See also rebates, SPC programs, and upstream programs.

Information Programs: Programs intended to provide customers with information regarding generic (not customer-specific) conservation and energy efficiency opportunities. For these programs, the information may be unsolicited by the customer. Programs that provide incentives in the form of unsolicited coupons for discount on low cost measures are also included.

Rebates: Energy efficiency programs consisting of an agreement between the administrator or implementer and a number of customers to install one or more identified energy efficiency products at the customer facility for an identified and pre-specified amount of money. There are two types of rebates:

Prescriptive Rebate: A prescribed financial incentive per unit for a prescribed list of individual products.

Customized Rebate: A program where the financial incentive is determined using an analysis of the customer's existing equipment and an agreement on the specific products to be installed.

Standard Performance Contract (SPC) Programs: Programs consisting of a set of agreements between the administrator or implementer and a number of project sponsors (either Implementers or Customers) to deliver energy savings from the installation of energy efficiency measures and technologies at a facility or set of facilities. These agreements are for a pre-specified price per unit of energy savings, measured using a pre-specified set of Measurement and Verification (M&V) protocols. An SPC program is an open-ended offer with a pre-specified price and set of terms.

Upstream Programs: Programs that provide information and/or financial assistance to entities in the delivery chain of high-efficiency products at the retail, wholesale, or manufacturing level.