3. Program Design Requirements and Eligibility Guidelines

Energy efficiency activities encompassed by this document are those that require permanent replacement of energy-using equipment with more efficient models. Only those activities that fall within this definition or support the ultimate goal (such as related information or education activities), will be considered for PGC funding.

The following types of activities are not eligible for energy efficiency program funding out of PGC funds:

· Cogeneration programs or projects

· Load-shifting programs that rely only on temporary or impermanent behavioral change (programs that install permanent equipment to manage load, such as energy management systems, are eligible)

· Distributed or self-generation

· Technology research and development

· Fuel switching

The above programs are excluded from funding to ensure maximum funding availability for energy efficiency programs, since other funding sources exist for the listed activities.

All programs selected for PGC funding will be considered on a program-by-program basis. Although a single entity may be conducting more than one program as part of a portfolio, each program will be chosen individually on a case-by-case basis. In the past, some programs have been referred to as "program elements" or other similar names by utilities. In general, each program will have a unique combination of objectives, target market or market segment, marketing approach, energy efficiency measures included, strategy for addressing a market failure, and plan for evaluation and savings measurement and verification.

All programs considered for selection by the Commission will be required to include the following elements:

· A defined market segment the proposed program serves (list and choose from among the market segments listed in Chapter 1)

· Rationale that includes program objectives and a summary of the barrier(s) the program is designed to address

· A delivery strategy (list and choose from among the strategies listed in Chapter 1)

· A defined set of eligible program participants

· A defined set of energy efficiency measures or technologies included in the program (if applicable)

· A marketing and outreach plan

· A budget (see example budget table in Appendix B)

· Cost-effectiveness calculations (projected, as well as updates on a periodic and ongoing basis)

· A set of indicators or benchmarks to be used to determine to what extent the program has been successful

· An evaluation and/or measurement and verification plan

All non-IOU program proposals should also assume a two-calendar-year implementation period, instead of the one-year cycle used in the past. Thus, for example, program proposals for 2003 will begin in January 2003 and continue through December 31, 2004. If programs begin sometime after January, they will still end on December 31^st of the following year. Only one year's worth of funding will be allocated at once, however. IOU programs will be authorized to run only for a period of one-year, and not longer than December 31^st of the calendar year for which programs are authorized.

Finally, programs should be designed to eliminate potential double-dipping by program participants into more than one ratepayer- or taxpayer-funded public purpose program. The risk of abuse can be minimized through careful participant tracking and coordination among programs. Customers accepting financial incentives through any program approved by the Commission should be required to acknowledge the source of funds by signing an affidavit or other paperwork declaring that they have received no funds for the same activity from another program or source.