V. Program Implementation Requirements

The Commission's request for proposals for the Summer Initiative is similar to the mechanism used by the utilities when soliciting proposals for their Third Party Initiatives (TPIs). The simplest and most direct procedure for funding and implementing the Summer Initiative programs to be implemented by non-utility entities is to require the utilities to enter into contracts with proposers that are similar to the contracts they use for funding TPI programs. We direct the utilities to do so.

In addition, in a number of cases, we approve program concepts to be implemented in all utility service territories, with funding contributions from multiple utilities. To keep the contract management burden associated with the Summer Initiative programs to a minimum, we have specified in each case that one utility be responsible for contractual arrangements with the program implementer. The other utilities should make arrangements to transfer funding to the lead utility for payment purposes. We have divided up the contracting responsibility to ensure that undue management burden does not fall on any one utility. Appendix A contains more details on administrative and management requirements by program.

D.00-07-017 specifies that Summer Initiative programs should begin implementation on September 1, 2000. (Id., at p. 203.) In recognition of the many requirements we have placed on the utilities related to other energy efficiency program planning and earnings assessments in this same short timeframe, we extend this deadline to September 11, 2000. We direct the utilities to complete contract signatures and to ensure that program implementation begins by that date. We also direct the program proposers and the utilities, for their own programs, to begin offering the programs by September 11, 2000.

In addition, we adopt the following requirements for all programs implemented as part of the Summer Initiative.

· All programs should be cost-effective, which we define as achieving a 1.0 minimum ratio using the total resource cost test. Non-utility implementers should work with the utilities to ensure that their programs meet this requirement and that cost-effectiveness can be demonstrated. At a minimum, this demonstration must be made on an ex ante basis. We recognize that some of the programs may be designed to verify cost effectiveness on an ex post basis, e.g., certain TPIs, and we encourage that approach as much as possible. We expect that all programs chosen for funding will meet the minimum requirements stated herein and require the utilities to ensure that they have all data in hand to demonstrate compliance.

· All non-utility entities implementing Summer Initiative programs should submit to the managing utility their estimates of program impact. This will most likely take the form of a final report submitted to the managing utility at the end of the program period. At a minimum, the final report should include information about all activities undertaken as part of the program, number of units installed, removed, or otherwise affected by the program, and demonstration of energy and demand savings achieved. Program implementers should also commit to making all data used in the preparation of program impact estimates to the managing utility for auditing or other verification purposes.

· The utilities should provide estimates of program impact for the programs they administer and implement at the conclusion of the program.