Presentation to WIEG Act 141 Carol Stemrich Assistant Administrator Gas and Energy Division

Today’s Discussion Act 9 versus Act 141 Key Changes Structure Large Customer Self-Directed Programs Funding Program Requirements Program Approval Other Status Update Rules Required Large Customer Contributions Staffing Future Activities

Act 9 Versus Act 141 Key Changes  Requires IOU electric and gas public utilities to collectively create and fund statewide energy efficiency and renewable energy programs  Funds collected are deposited into a private sector account and not a state fund  Energy utilities contract, on the basis of competitive bids, with one or more persons to administer the programs  Oversight of the statewide energy efficiency and renewable resource programs was transferred from the DOA to the PSC  Temporary cap on large customer contribution  Allows for large customer self-directed programs

Structure PSC Business Programs WECC Residential Programs WECC Renewable Program WECC Environmental & Economic ECW SEERA Fiscal Agent Compliance Agent Evaluation PA Consulting

Large Customer Self-Directed Programs Program Funding  Maximum amount available for a given year is the dollars the customer would have contributed to the statewide programs less the funds set aside for renewable resource programs  Commission has determined the required contribution of each large energy customer  Based on 2005 contribution  Will remain the same until legislation is enacted to change the allocation of dollars, or July 1, 2009, whichever comes first  Notification of funds available by the energy utilities

Large Customer Self-Directed Programs Program Requirements  Explanation of the program  Targeted buildings, equipment and operations  Eligible measures  Expected energy savings  Performance targets  Program timeframe  Cost-effectiveness analysis  Tracking and reporting system  Measurement and verification plan  Evaluation by an independent third party

Large Customer Self-Directed Programs Program Approval  Program requests for a large customer self- directed program must be approved by the PSC  Requests received at least 6 months before the start of the statewide program year will be considered for implementation in that program year  PSC has 40 days to act on a request  Program proposal that has been denied or modified may be revised and resubmitted

Status Update PSC Chapter 137 went into effect August 1, 2007 Large energy customers have been identified and 2005 contributions to energy efficiency and renewable resource programs determined Filling three positions, including the Business Program manager Still to do Cost recovery in rate cases Cost allocation proceeding Quadrennial review process

Contact Carol Stemrich Assistant Administrator Gas and Energy Division (608)