Reporting and Evaluating DSM Performance

1. Reporting and Evaluating DSM Performance Staff Workshop – April 28, 2011

2. Purpose of Goals and Programs • Economically defer power plant construction • Conserve expensive resources (fuel savings) • Encourage development of demand-side renewables (solar pv, solar thermal)

3. Potential Consequences of Not Meeting Goals (to Ratepayers) • Increased costs – plant and fuel • Increased environmental emissions • Local economic impacts (jobs)

4. Historic Reporting Methods • FEECA Statutes (Sections 366.80 – 85 and Section 403.519, F.S.) • PSC to provide report to Legislature and Governor by March 1 • Rule 25-17.0021(5), F.A.C. • Utilities report DSM achievements for prior calendar year to PSC by March 1 • Order PSC-09-0855-FOF-EG • Separate Residential and C/I categories • Annual Numeric Goals • Solar Pilot Programs Required

5. Current Situation – 2010 Filings

6. Current Situation – 2010 Filings

7. Current Situation

8. 2012 FEECA Report Draft to Internal Affairs early 2012 - will include: • MW, MWh Savings compared to goals Residential, C/I, and combined Annual and Cumulative • Utility justification for goal variances • Solar Pilot Programs (MW, MWh, number of installations, etc.) • Ratepayer impact of utility performance (goal achievement or failure)

9. 2012 FEECA Report Draft Report will also contain recommendations for next steps. Options include: • Accept filings and justifications – no further action • Program revisions or additions – docketed proceeding for affected utility • Reward/penalty – docketed proceeding for affected utility • Other?

10. Options Going Forward How should 2010 DSM achievements be reported and evaluated for purposes of the 2012 FEECA Report? • Is it more appropriate to measure 2010 DSM achievements against the goals established in 2004 or 2009? • What is the appropriate date range to use for judging utility performance: annual, or a band of 3 to 6 years? • How should achievements be measured: against annual goals, cumulative goals or both? • How should savings for Residential and C/I customer classes be evaluated: separately, combined, or both? • What type of information should be provided for solar pilot projects? (i.e., number of installations, savings per installation, amount of expenditures, problems encountered and lessons learned.) • What additional information should be provided to assist staff in evaluating utilities’ 2010 performance?

11. Next Steps • Post Workshop Comments – within a week. • Staff intends to issue data requests within the next few weeks.

12. Options Going Forward How should 2010 DSM achievements be reported and evaluated for purposes of the 2012 FEECA Report? Is it more appropriate to measure 2010 DSM achievements against the goals established in 2004 or 2009?

13. Options Going Forward How should 2010 DSM achievements be reported and evaluated for purposes of the 2012 FEECA Report? 2. What is the appropriate date range to use for judging utility performance: annual, or a band of 3 to 6 years?

14. Options Going Forward How should 2010 DSM achievements be reported and evaluated for purposes of the 2012 FEECA Report? 3. How should achievements be measured: against annual goals, cumulative goals or both?

15. Options Going Forward How should 2010 DSM achievements be reported and evaluated for purposes of the 2012 FEECA Report? • . How should savings for Residential and C/I customer classes be evaluated: separately, combined, or both?

16. Options Going Forward How should 2010 DSM achievements be reported and evaluated for purposes of the 2012 FEECA Report? 5. What type of information should be provided for solar pilot projects? (i.e., number of installations, savings per installation, amount of expenditures, problems encountered and lessons learned.)

17. Options Going Forward How should 2010 DSM achievements be reported and evaluated for purposes of the 2012 FEECA Report? 6. What additional information should be provided to assist staff in evaluating utilities’ 2010 performance?