PUCO Mercantile Application EE/PDR Rider Exemptions

EE/PDR Rider Exemption Process Customer typically files a joint application with their Electric Distribution Utility. – 4901: (G) Applicants are required to submit applications using the “Application to Commit Energy Efficiency/Peak Demand Reduction Programs (Mercantile Customers Only)” template.

EE/PDR Rider Exemption Process Exemption from the EE/PDR Rider is determined using the benchmark comparison methodology and the customer’s electrical baseline. – Benchmark Comparison Methodology requires the customer to mirror the annual statutory requirements of the EDU to remain exempt from the EE/PDR Rider ( EL-EEC, September 15, 2010) – Baseline is determined by using the average total kilowatt-hours of distribution service sold to retail customers of the electric utility in the preceding three calendar years OAC 4901: (J) Example: Approval of an Application is granted through a 60 day review process. Staff may recommend denial of the application or request that it be suspended for further review within the 60 day review process. Applications requesting an Exemption greater than 24 months require a biannual report filed with the Commission to verify continual savings equal to the EDU’s statutory requirements. ( EL-EEC, September 20, 2011) Determine 3 year baseline Year 1 (kWh)1,000,000 Year 2 (kWh)1,100,000 Year 3 (kWh)1,200,000 Total (kWh)3,300,000 Baseline (A) (kWh) 1,100,000 Project Savings (B) per application (kWh) 150,000 Benchmark comparison Project Savings (B) divided by established Baseline (A) Percentage of savings13.64 EE Benchmarks YearAdditional ReductionCumulative Reduction % %0.80% %1.50% %2.30% %3.20% %4.20% %5.20% %6.20% %7.20% %8.20% %10.20% %12.20% %14.20% %16.20% %18.20% %20.20% %22.20% Rider exemption estimated through August, 2021

Mercantile Application Volume Applications Filed to Date: 1438 Exemption Approvals to Date: 103 Applications Pending to Date: 104 Pending apps requesting exemption : 5 Approx. 7% of mercantile applications have received exemptions * As of 11/7/12