In December of 2010, the Arkansas Public Service Commission announced a [http://www.apscservices.info/pdf/08/08-144-U_153_1.pdf Sustainable Energy Resource Action Plan] for Arkansas. Along with this comprehensive plan, the Commission issued 10 Orders directing the state’s four electric and three natural gas investor-owned utilities to implement the energy efficiency measures described in the Action Plan. These orders were passed on December 10, 2010.
Order 17 in Docket 08-144-U sets sales reductions targets for both electric and gas utilities. The PSC directed these utilities to file comprehensive energy efficiency plans for 2011, 2012, and 2013 with incremental energy savings.
'''Incremental energy savings for electric utilities:'''
*0.25% in 2011 compared to a 2010 energy sales (in MWh and therms) baseline
*0.5% in 2012 compared to a 2010 energy sales (in MWh and therms) baseline
*0.75% in 2013 compared to a 2010 energy sales (in MWh and therms) baseline
'''Incremental energy savings for natural gas utilities:'''
*0.2% in 2011 compared to a 2010 energy sales (in MWh and therms) baseline
*0.3% in 2012 compared to a 2010 energy sales (in MWh and therms) baseline
*0.4% in 2013 compared to a 2010 energy sales (in MWh and therms) baseline
At the end of 2013, the cumulative energy savings compared to the 2010 baseline, would be 1.5% for the electric utilities and 0.9% for the gas utilities. The utilities filed their 3-year plans with the PSC in March of 2011. All plans were approved for implementation beginning on July 1, 2011, including the recovery of energy efficiency costs through an Energy Efficiency Cost Recovery Rider (EECR) for each company.
Separate orders in Docket No. 08-137-U approved in December of 2010 adopted policies allowing electric and gas utilities to collect Lost Contribution to Fixed Costs (“LCFC”, often called lost revenues or lost margins) and to earn performance-based shareholder Incentives of up to 7% of their spending on energy efficiency portfolios (with a cap).
In 2011, the PSC adopted Docket No. 06-004-R amendments to its Rules for Conservation and Energy Efficiency Programs (C&EE Rules) providing the details of the LCFC and Utility Incentives policies. On June 30, 2011, the Commission approved for each utility EECR recovery of energy efficiency program costs and LCFC, contemporaneous with the 2011 program year, and ordered that Utility Incentives sought by companies for performance would be decided in 2012 for 2011 performance, based on “robust Evaluation, Measurement, and Verification (EM&V)” that was being implemented in a separate rulemaking.
PSC Order No. 11 of Docket 10-100-R adopted on September 29, 2011 included a set of EM&V Protocols and on October 14, 2011 by Order No. 12 a Technical Reference Manual for EM&V was adopted.
More information on Arkansas' energy-efficiency targets is available on the PSC's [http://www.apscservices.info/ online services] web site.