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PUBLIC UTILITY COMMISSION

 

DIVISION 30

RESIDENTIAL AND COMMERCIAL ENERGY CONSERVATION

860-030-0000

Exemptions

(1) Except as provided in section (2) of this rule, the rules contained in this Division do not apply to unincorporated associations and cooperative corporations or to investor-owned electric utilities that satisfy their public purpose obligations under ORS 757.612.

(2) These rules apply to investor-owned electric utilities to the extent required by ORS 469.860 through 469.900.

(3) Upon request or its own motion, the Commission may waive any of the Division 030 rules for good cause shown. A request for waiver must be made in writing, unless otherwise allowed by the Commission.

Stat. Auth.: ORS 183, 756, 757 & 759
Stats. Implemented: ORS 756.040 & 757.612
Hist.: PUC 3-1999, f. & cert. ef. 8-10-99; PUC 2-2001, f. & cert. ef. 1-5-01; PUC 6-2011, f. & cert. ef. 9-14-11

860-030-0005

Energy Information and Audit Services

(1) As used in division 030, the terms "cash payment," "commercial lending institution," "Commission," "cost-effective," "director," "dwelling," "dwelling owner," "energy audit," "energy conservation measure," "investor-owned utility," "residential customer," "space heating," and "tenant" shall have the meanings set forth in ORS 469.631.

(2) Investor-owned energy utilities shall notify their customers annually of the availability of energy audits without direct charge to the customers. Such notification shall be made:

(a) In a bill insert or other direct mailing; and

(b) Stating the types of assistance and technical advice available.

(3) Energy audits:

(a) Except as provided in section (5) of this rule, each energy utility shall provide energy audits to eligible customers upon request. The audit shall be performed in accordance with the provisions of ORS 469.631(8) and 469.633(2). The energy utility may set a schedule of reasonable charges for residential energy audits performed beyond the first energy audit for an individual customer in a particular residence;

(b) If an energy utility's records do not contain sufficient data to establish a normal consumption for the customer in the dwelling (for example, a newly-established residence or a residence using a supplemental fuel, maintained at approximately 70 degrees F.), the energy utility shall make a reasonable estimate of such consumption for the purpose of completing the audit; and

(c) If the dwelling requested to be audited is a rental unit, the audit shall include a heating cost estimate using average temperatures and typical lifestyles. A statement shall be included to the effect that a household's energy bill will contain charges for uses in addition to space heating. Such heating cost estimate and statement shall be displayed on the audit or a separate document suitable for conspicuous posting.

(4) An eligible customer is any customer of the energy utility receiving residential electric or natural gas service.

(5) Primary responsibility for furnishing an energy audit lies with the energy utility providing the primary source of home heating energy, and an energy utility, not a primary supplier, may discharge its energy audit obligation by arranging for the primary supplier of space heating to perform the energy audit.

(6) Any residential customer using a space-heating fuel other than electricity or natural gas who receives service from an electric company shall be eligible for an energy audit from that utility if no other audit is obtainable. The electric company may set a schedule of reasonable charges for these audits which shall be separate from the periodic utility bill.

Stat. Auth.: ORS 183, 469, 756 & 757
Stats. Implemented: ORS 756.040 & 469.631 - 469.645
Hist.: PUC 11-1981(Temp), f. & ef. 10-30-81 (Order No. 81-778); PUC 2-1982, f. & ef. 2-26-82 (Order No. 82-130); PUC 10-1985, f. & ef. 7-5-85 (Order No. 85-619); PUC 14-1985, f. & ef. 9-27-85 (Order No. 85-891); PUC 15-1985, f. & ef. 10-1-85 (Order No. 85-896); PUC 2-1993, f. & cert. ef. 1-8-93 (Order No. 92-1793 & 93-035); PUC 1-1998, f. & cert. ef. 1-12-98; PUC 7-2005, f. & cert. ef. 11-30-05

860-030-0007

Gas Utility Avoided Costs

(1) Investor-owned gas utilities shall file a proposed avoided-cost method and draft avoided costs with their least-cost plans pursuant to Order No. 89-507. Final avoided-cost information shall be filed within 30 days of Commission acknowledgment of the least-cost plan to become effective 30 days after filing. The avoided-cost method filed should be appropriate for determining the cost effectiveness of weatherization measures from the gas utility's perspective.

(2) A gas utility may propose or the Commission may require a gas utility to file the data described in OAR 860-030-0007(1) during the two-year period between filing least-cost plans pursuant to Order No. 89-507 to reflect significant changes in circumstances, such as acquisition of a major block of resources. Such a revision will become effective 90 days after filing.

(3) At least every two years, the gas utility must file with the Commission the data described in section (1) of this rule.

Stat. Auth.: ORS 183 469, ORS 756 & ORS 757
Stats. Implemented: ORS 756.040 & ORS 469.631 - ORS 469.645
Hist.: PUC 2-1993, f. & cert. ef. 1-8-93 (Order No. 92-1793 & 93-035); PUC 1-1998, f. & cert. ef. 1-12-98

860-030-0010

Cost Effectiveness

(1) "Cost-effective," as defined in ORS 469.631(4), relates an energy conservation measure's cost, life cycle, and the cost of alternative energy facilities. An energy utility's cost-effectiveness calculations should be consistent with the utility's most recently acknowledged least-cost plan pursuant to Order No. 89-507.

(2) Unless otherwise demonstrated in an acknowledged energy utility least-cost plan, the following energy conservation measures are deemed to be in all installations:

(a) Caulking;

(b) Weather stripping;

(c) Timed (set-back) thermostats (except when used with heat pumps); and

(d) Water heater, steam pipe, and hot and cold water pipe wraps.

(3) Unless otherwise demonstrated in an acknowledged energy utility least-cost plan, the following energy conservation measures are deemed to be cost-effective when installed along with certain other energy conservation measures, as indicated:

(a) Ground cover, when installed in conjunction with under-floor insulation;

(b) Vapor barrier materials, when installed in conjunction with wall, ceiling, or under-floor insulation;

(c) Dehumidifiers, when installed in conjunction with storm windows and doors, and caulking and weather stripping of all openings allowing infiltration; and

(d) Attic ventilation, excluding power ventilators, when installed in conjunction with ceiling or attic insulation.

(4) The following energy conservation measures shall be deemed to have the indicated life cycles:

(a) Attic, ceiling, wall and under-floor insulation -- 30 years.

(b) Insulation of walls in heated basements -- 30 years.

(c) Insulation of heating system supply and return air ducts -- 30 years.

(d) Thermal doors -- 30 years.

(e) Storm windows -- 15 years.

(f) Windows meeting the requirements of Chapter 53 of the Oregon Residential Energy Code, and window replacements -- 25 years.

(g) Storm doors -- 7 years.

(h) Electronic furnace ignition (gas) -- 10 years.

(5) Within 30 days after approval of an energy utility's avoided-cost filing submitted in compliance with OAR 860-029-0040 or 860-030-0007, such utility shall submit for the Commission's approval the computations used to determine the cost effectiveness of weatherization measures. The computations shall include present worth of energy and capacity saved per unit for different life cycles, recognizing, where appropriate, line losses, administrative costs of conservation programs, and revenues from additional wholesale sales made possible by the conservation activity. At the same time, such utility shall file tariffs relating to payments for weatherization measures using the new cost-effectiveness computations, to become effective 30 days after submission.

(6) Energy and capacity savings due to conservation shall be considered firm for purposes of the calculations in OAR 860-030-0010(5). The calculated costs as specified in section (5) of this rule shall be multiplied by 1.1 to determine the cost effectiveness of the conservation alternative.

[Publications: Publications referenced are available from the agency.]

Stat. Auth.: ORS 183, 469, 756 & 757
Stats. Implemented: ORS 756.040 & 469.631 - 469.645
Hist.: PUC 11-1981(Temp), f. & ef. 10-30-81 (Order No. 81-778); PUC 2-1982, f. & ef. 2-26-82 (Order No. 82-130); PUC 10-1985, f. & ef. 7-5-85 (Order No. 85-619); PUC 11A-1985(Temp), f. & ef. 7-16-85 (Order No. 85-639); PUC 14-1985, f. & ef. 9-27-85 (Order No. 85-891); PUC 15-1985, f. & ef. 10-1-85 (Order No. 85-896); PUC 2-1993, f. & cert. ef. 1-8-93 (Order No. 93-035); PUC 3-1993, f. & cert. ef. 1-8-93 (Order No. 92-1792); PUC 1-1998, f. & cert. ef. 1-12-98; PUC 7-2005, f. & cert. ef. 11-30-05

860-030-0015

Residential Energy Conservation Financing

(1) An eligible dwelling owner may obtain a loan or a cash payment from or through the energy utility for energy conservation measures.

(2) Financing:

(a) The loan shall be made in accordance with the following terms, conditions, and limitations:

(A) A principal amount of up to $5,000;

(B) On a loan from or through an electric company, an interest rate that does not exceed 6.5 percent annually;

(C) On a loan from or through a gas utility, an annual interest rate 10 percentage points lower than the rate published by the Federal Housing Administration for Title I property improvement loans (24 Code of Federal Regulations (CFR), subsection 201.4(a)) on the date of the loan application, but not lower than 6.5 percent or higher than 12 percent;

(D) A repayment period of not more than ten years;

(E) Unless waived by the energy utility, a minimum monthly payment of not less than $15; and

(F) To eligible dwelling owners with approved credit.

(b) The cash payment shall be in the amount of:

(A) Twenty-five percent of the cost-effective portion of the energy conservation measures recommended under subsection (2)(c) of this rule, including installation (but not including the dwelling owner's own labor), not to exceed the cost of the measure; or

(B) $350, whichever is less.

(c) Any dwelling owner is eligible for financing under this rule, provided:

(A) A valid energy audit preceded the work and established the cost-effective portion of the recommended measures;

(B) The measures installed are those recommended by the energy utility; and

(C) The dwelling has a space-heating system, installed and operational, which is designed to heat the living space of the customer's dwelling, and which draws its energy for operation from the energy utility from which financing is sought.

(d) A dwelling owner who acquires a dwelling for which a previous loan was obtained under this rule may obtain a loan or a cash payment for energy conservation measures for the newly acquired dwelling under circumstances including, but not necessarily limited to, when there remain cost-effective energy conservation measures to be undertaken with regard to the dwelling.

(3) An energy utility shall not make a loan or a cash payment for the installation of urea-formaldehyde wall insulation.

[Publications: Publications referenced are available from the agency.]

Stat. Auth.: ORS 183, 469, 756 & 757
Stats. Implemented: ORS 756.040 & 469.631 - 469.645
Hist.: PUC 11-1981(Temp), f. & ef. 10-30-81 (Order No. 81-778); PUC 2-1982, f. & ef. 2-26-82 (Order No. 82-130); PUC 10-1985, f. & ef. 7-5-85 (Order No. 85-619); PUC 11A-1985(Temp), f. & ef. 7-16-85 (Order No. 85-639); PUC 11B-1985(Temp), f. 7-16-85, ef. 9-20-85 (Order No. 85-639); PUC 28-1985, f. & ef. 12-20-85 (Order No. 85-1212); PUC 15-1989, f. & cert. ef. 11-3-89 (Order No. 89-1465); PUC 11-1992(Temp), f. & cert. ef. 6-15-92 (Order No. 92-856); PUC 2-1993, f. & cert. ef. 1-8-93 (Order No. 92-1793 & 93-035); PUC 3-1993, f. & cert. ef. 1-8-93 (Order No. 92-1792); PUC 1-1998, f. & cert. ef. 1-12-98; PUC 7-2005, f. & cert. ef. 11-30-05

860-030-0018

Rental Unit Additional Financing

(1) After December 31, 1985, energy utilities, upon request of final certification from the Department of Energy, under ORS chapter 469, shall offer additional financing as described in section (3) of this rule for energy conservation measures installed by a dwelling owner who rents the dwelling to a tenant whose dwelling unit receives energy for space heating from an energy utility.

(2) Upon being notified by the Department of Energy that it has committed all available tax credits for rental unit additional financing for a given calendar year, an energy utility shall stop offering additional financing until it is notified that tax credits are available.

(3) The dwelling owner may select one of the following types of financing:

(a) The dwelling owner may select a low-interest loan pursuant to OAR 860-030-0015(2)(a). In such case, the dwelling owner shall be liable to repay to the energy utility the loan minus the present value to the utility of the tax credit received, as established pursuant to ORS 469.185 to 469.225;

(b) The dwelling owner may select a cash payment pursuant to OAR 860-030-0015(2)(b). In such case, the cash payment shall be supplemented by an amount equal to the present value to the energy utility of the tax credit received, as established pursuant to ORS 469.185 to 469.225.

(4) Investor-owned energy utilities shall notify their customers annually of the availability of the financing options with regard to the tax credit established pursuant to ORS 469.185 to 469.225 and of the option to apply directly to the State of Oregon for a tax credit.

Stat. Auth.: ORS 183, 469, 756 & 757
Stats. Implemented: ORS 756.040 & 469.631 - 469.645
Hist.: PUC 28-1985, f. & ef. 12-20-85 (Order No. 85-1212); PUC 1-1998, f. & cert. ef. 1-12-98; PUC 7-2005, f. & cert. ef. 11-30-05

860-030-0020

Certain Energy Conservation Measures Excluded from Financing

Energy conservation measures for any of the following building and improvement activities shall not be financed under an energy utility's residential energy conservation program adopted pursuant to ORS 469.631 through 469.645:

(1) Construction of a new dwelling; or

(2) Construction which increases or changes the living space in a dwelling being remodeled, added to, or otherwise substantially altered.

(3) When a dwelling or property owner proposes to build a new dwelling, remodel, or otherwise alter an existing dwelling, the Uniform Building Code (UBC) or local equivalent code must be complied with. Because weatherization programs are designed to be an incentive encouraging people to voluntarily weatherize, it would not be in the public interest to spend this money on loans or grants for measures which otherwise are required by state or local law.

Stat. Auth.: ORS 183, ORS 469, ORS 756 & ORS 757
Stats. Implemented: ORS 756.040 & ORS 469.631 - ORS 469.645
Hist.: PUC 11-1981(Temp), f. & ef. 10-30-81 (Order No. 81-778); PUC 2-1982, f. & ef. 2-26-82 (Order No. 82-130); PUC 10-1985, f. & ef. 7-5-85 (Order No. 85-619); PUC 15-1985, f. & ef. 10-1-85 (Order No. 85-896); PUC 1-1998, f. & cert. ef. 1-12-98

860-030-0025

Assurance of Work Quality

(1) The energy utility shall, at a minimum, inspect:

(a) Each installation for which the customer requests inspection;

(b) For each contractor with whom the energy utility has no current experience of work performance or whose past performance has shown inadequate performance, the first ten installations by that contractor and at least two of every ten installations thereafter.

(2) The purposes of the inspections required under subsections (1)(a) and (1)(b) of this rule are to verify that the financed measures were installed and the standards of materials and workmanship set by the energy utility, which shall meet or exceed those of the Oregon State Building Code, are met.

(3) When subsection (1)(a) or (1)(b) of this rule requires inspections, utility funds used for principal payment under this program shall not be dispersed until the standards referenced in section (2) of this rule are met.

Stat. Auth.: ORS 183, ORS 469, ORS 756 & ORS 757
Stats. Implemented: ORS 756.040 & ORS 469.631 - ORS 469.645
Hist.: PUC 11-1981(Temp), f. & ef. 10-30-81 (Order No. 81-778); PUC 2-1982, f. & ef. 2-26-82 (Order No. 82-130); PUC 10-1985, f. & ef. 7-5-85 (Order No. 85-619); PUC 1-1998, f. & cert. ef. 1-12-98

860-030-0035

Accounting Rules

(1) "Indirect costs" shall mean:

(a) Reasonable expenses which the energy utility incurs in providing to its residential customers information about weatherization programs and other means of saving energy;

(b) Reasonable expenses which the energy utility incurs in providing to its residential customers technical advice concerning advantages and disadvantages of various methods of saving energy in the customer's dwelling unit;

(c) Reasonable expenses which the energy utility incurs in providing pre-installation inspection services, cost estimates, and post-installation inspections for its residential customers;

(d) Cash payments made to dwelling owners pursuant to ORS 469.633;

(e) The interest or other carrying charges resulting from the difference between the interest charges authorized by the Commission, pursuant to ORS 469.633, and the cost of the energy utility's own funds used to finance weatherization services, or, if the energy utility arranges financing with a commercial lending institution, the difference between the interest charges allowed by the Commission, pursuant to ORS 469.633, and the interest charged by the commercial lending institution;

(f) Reasonable carrying charges on the unamortized balance included in the deferred debit account until the unamortized balance is included in the rate base;

(g) Any reasonable level of bad debts, including a reasonable level of casualty losses attributable to the services performed under ORS 469.633;

(h) Fees charged an energy utility pursuant to ORS 469.185 to 469.225;

(i) Tax credits authorized under ORS 469.185 to 469.225; and

(j) Reasonable administrative costs of residential energy conservation programs.

(2) All other terms shall have the meanings provided in ORS 469.631.

(3) The energy utility shall pass on to all its customers the indirect cost incurred pursuant to ORS 469.631 through 469.645, by accounting for the costs as an allowable revenue deduction and by including when applicable the unamortized balance of the accumulated deferred debits associated with indirect costs in the rate base for rate-making purposes.

(4) The energy utility shall keep books and accounts to permit the Commission to readily identify all direct and indirect costs incurred in connection with the weatherization program and any other insulation or energy-saving programs.

(5) Except for a reasonable level of bad debts, including casualty losses and cash payments to dwelling owners pursuant to ORS 469.333, no direct costs of weatherization services provided to individual space-heating residential customers shall be allowable expenses for rate-making purposes. Direct costs shall be a personal obligation of the owner of the dwelling unit requesting weatherization services. Direct costs include the cost of all materials and labor directly associated with the services.

(6) All indirect costs incurred by an energy utility, pursuant to ORS 469.631 through 469.645, shall be placed in a deferred debit account until the Commission issues an order including an appropriate amount of indirect costs in rates.

(7) Tax credits authorized under ORS 469.185 to 469.225 and OAR 860-030-0018 shall be accounted for under section (6) of this rule as deferred debits, until each year's credit is recovered.

(8) After an appropriate amount of indirect costs is included in rates, deferred debit accounting shall not be used to recover additional indirect costs unless the energy utility demonstrates that the present level of recovery of indirect costs is inadequate.

(9) The amounts of indirect costs accumulated in the deferred debit account may be disposed of by being included in rates by a tracking procedure or by being included in rates upon the issuance of a Commission order.

(10) Carrying charges associated with the energy utility's own funds as defined as subsection (1)(e) of this rule shall be recorded in Account 421, Miscellaneous Nonoperating Income, concurrently with the recording of those costs in the deferred debit account. Carrying charges associated with the balance in the deferred debit account not amortized to operating expenses as defined in subsection (1)(f) of this rule shall be recorded in Account 421, concurrently with their being recorded in the deferred debit account.

(11) Income tax normalization procedures shall be used when appropriate for amounts included in the deferred debit account.

Stat. Auth.: ORS 183, ORS 469, ORS 756 & ORS 757
Stats. Implemented: ORS 756.040 & ORS 469.631 - ORS 469.645
Hist.: PUC 11-1981(Temp), f. & ef. 10-30-81 (Order No. 81-778); PUC 2-1982, f. & ef. 2-26-82 (Order No. 82-130); PUC 15-1985, f. & ef. 10-1-85 (Order No. 85-896); PUC 28-1985, f. & ef. 12-20-85 (Order No. 85-1212); PUC 1-1998, f. & cert. ef. 1-12-98

860-030-0040

Commercial Energy Conservation

Purpose, Statutory Authorization, and Policy. The purpose of these rules is to provide procedures, standards, and criteria for electric and gas utilities to present energy audit programs for commercial buildings as required by Oregon Laws 1981, Chapter 708, Sections (1) through (11) (ORS 469.865 et seq.).

Stat. Auth.: ORS 183, ORS 469, ORS 756 & ORS 757
Stats. Implemented: ORS 756.040 & ORS 469.631 - ORS 469.645
Hist.: PUC 10-1982, f. & ef. 9-30-82 (Order No. 82-685); PUC 1-1998, f. & cert. ef. 1-12-98

860-030-0045

Definitions for Energy Conservation

For the purpose of these rules, the following terms shall have the following definitions, unless the context clearly indicates otherwise:

(1) "Automatic control system" means devices, including but not limited to: wide dead band thermostats, which regulate lighting, heating, ventilating, air conditioning, or other energy loads automatically based on time, temperature, humidity, pressure, or load limiting measures. Equipment associated with automatic control systems includes, but is not limited to: automatic dampers, wiring, electronic circuitry, relays, valves, and other equipment which produces a reduction in energy consumption or demand.

(2) "BTU" means a British Thermal Unit, the amount of energy required to raise the temperature of a one-pound mass of water one degree Fahrenheit.

(3) "Commercial building" means a public building as defined in ORS 456.746 and other commercial structures as defined by energy utility tariff.

(4) "Commercial building customer" means the owner or tenant of a commercial building who is responsible for paying fuel costs to an energy utility which provides electricity or gas energy to the building.

(5) "Commercial energy audit" means the service provided to a commercial building customer which includes on-site data gathering, energy use analysis, and a report to the customer recommending energy conservation measures, and an estimate of the cost/benefit of those measures.

(6) "Commercial energy auditor" (or "Level I Auditor") means a person who is qualified through general training and experience and who has demonstrated a general knowledge of heat transfer principles, construction terms and components, energy efficient operations and maintenance procedures, boiler and furnace efficiency improvements, infiltration controls, envelope weatherization, heating, ventilating, and air conditioning (HVAC) systems, electric control systems, lighting systems, solar insulation, and applicable energy conservation measures.

(7) "Commercial energy specialist" (or "Level II Auditor") means a person who is qualified through specialized training and experience, who has demonstrated knowledge and abilities of a qualified commercial energy auditor, and who can in addition:

(a) Perform calculations of energy use analysis;

(b) Perform calculations of energy efficiencies of HVAC, lighting, plumbing, water, steam, control, or electrical systems; and

(c) Can prepare technical reports of net energy savings for energy conservation measures.

(8) "Conservation services" means those services specified in ORS 469.865 and 469.885.

(9) "Commission" means the Public Utility Commission of Oregon.

(10) "Energy use analysis" means estimates of energy consumed by various systems and components of a building including, but not limited to: envelope, lighting, HVAC, and hot water.

(11) "Energy conservation measure" has the meaning specified in ORS 469.860(1)(e).

(12) "Envelope weatherization" includes, but is not limited to: insulation of ceiling, walls, floors, ducts, or pipes, and installation of storm or thermal windows and doors.

(13) "Furnace and boiler efficiency improvements" means replacement burners, furnaces, or boilers of the same energy type which, due to their design, reduce energy use due to an increase in combustion efficiency, improved heat generation or reduced heat losses, automatic vent dampers, automatic ignition devices, replacement filters, and cleaning and combustion efficiency adjustments.

(14) "Heat recovery devices" means those devices or equipment which recover heat from commercial use by capturing, storing, transferring, and using heat content of liquid or gaseous streams to reduce the need for additional energy resources. Devices include, but are not limited to: recuperators, heat wheels, regenerators, heat exchangers, and economizers.

(15) "Heating, ventilating, and air conditioning (HVAC) system modifications" includes, but is not limited to: improving control and use of outside air, adjusting temperature and humidity of supply air, reducing energy use of reheat systems and exhaust hoods, and replacement air conditioning systems of the same energy type which reduce the amount of energy use due to an increase in efficiency.

(16) "Infiltration controls" means caulking, weather stripping, dampers, sealants, air locks, revolving doors, and gaskets used to reduce air leaks in a building shell.

(17) "Improved operations and maintenance measures" means any energy conservation measure which is presumed cost-effective because there is little or no cost associated with the measure, so the simple payback period is generally less than one year. Operations and maintenance measures include, but are not limited to: temperature setbacks, water flow reductions, reduced use of ancillary systems or reduced energy use when a building is unoccupied, repairing air duct leaks, and steam system and furnace or boiler maintenance.

(18) "Lighting system improvements" means devices and actions which reduce overall indoor or outdoor lighting energy consumption while maintaining satisfactory lighting levels. Devices and actions include, but are not limited to: reducing light levels to acceptable minimum levels; installation of task lighting, local switching, time control, and sensing devices; and installation of more efficient lamps.

(19) "Net energy savings" means the BTU savings from a conservation measure, taking into account interactions of other known consumption measures being implemented and impacts on all energy sources and systems in the building.

(20) "Simple payback period" means the estimated total installed costs of an energy conservation measure divided by the estimated first year dollar savings to the customer resulting from the measure.

(21) "Solar water heaters" means water heating devices, either active or passive, designed to heat water with radiant energy from the sun.

(22) "Utility" or "energy utility" shall have the meaning given to an "investor-owned utility" in ORS 469.631 or to a "public utility" under ORS 757.005, which provides natural gas or electric service for heat, light, or power and is regulated by the Commission under ORS Chapter 757.

(23) "Water heating heat pumps" means water heating devices designed to heat water by extracting energy from the surrounding ambient environment, including air, earth, and ground water.

Stat. Auth.: ORS 183, ORS 469, ORS 756 & ORS 757
Stats. Implemented: ORS 756.040 & ORS 469.631 - ORS 469.645
Hist.: PUC 10-1982, f. & ef. 9-30-82 (Order No. 82-685); PUC 15-1985, f. & ef. 10-1-85 (Order No. 85-896); PUC 1-1998, f. & cert. ef. 1-12-98; PUC 18-1998, f. & cert. ef. 10-12-98; PUC 9-2001, f. & cert. ef. 3-21-01

860-030-0050

Commercial Energy Audit Programs

(1) Each energy utility shall be responsible, to the extent possible, for ensuring that the services required by these rules are offered to all commercial building customers within its service territory and the services are provided to the standards required herein.

(2) Each energy utility shall have available on request information about energy saving operations and maintenance measures for commercial buildings. The information may be tailored to special classes of commercial building customers.

(3) Each energy utility shall notify its commercial building customers about its energy conservation and energy audit services annually.

(4) Each energy utility shall actively promote the availability of energy audit services whenever it enters into any phase of a contingency or curtailment plan for dealing with an energy supply shortfall.

(5) Each energy utility shall be responsible for having available trained commercial energy auditors, specialists, or other engineering or architectural professionals either employed directly, or as independent consultants, so sufficient persons with appropriate education and experience are available to provide energy audits of simple and complex commercial building systems and components which may exist in its service area.

(6) When an energy utility receives a request from a commercial building customer who uses less than 4,000 kWh of electricity or 200 therms of gas per month on the average annually for a commercial energy audit, a qualified energy auditor shall perform an on-site audit to collect data and evaluate energy conservation measures including, but not limited to: operations and maintenance measures, simple automatic control systems, envelope weatherization, infiltration controls, and lighting systems improvements.

(7) When an energy utility receives a request from a commercial building customer who uses more than 4,000 kWh of electricity per month or 200 therms of natural gas per month on the average annually for a commercial energy audit, the energy utility shall use a qualified energy specialist, engineer, or architect to perform the energy audit and evaluate more complex energy conservation measures, such as sophisticated automatic control systems, furnace and boiler efficiency improvements, heat recovery devices, HVAC system modifications, lighting system improvements, and solar water heaters or water heating heat pumps, unless the energy utility can substantiate that analysis of the systems in use does not require that level of expertise.

(8) Each energy utility shall be responsible for: designing or obtaining data recording forms for an energy audit, developing procedures for analyzing energy use in a commercial building, and for calculating potential energy savings, and designing report forms for recommendations to customers. The system so designed shall have the capability of reporting simple payback periods of at least ten years.

(9) Reports to a commercial building customer shall include as a minimum: a brief description of the building's energy using systems and overall condition; an energy use analysis; recommended operations and maintenance measures; energy conservation measures which have a simple payback period of up to three years or up to ten years upon the customer's request, including a description of each measure, its estimated cost, and estimated net energy and dollar savings for the first year. Information about the availability of state tax credits and any low-cost financing options or other incentives available through the utility for the commercial building customer shall also be included.

(10) The Commission may review any federal or regional commercial energy audit programs to determine if they meet or exceed the requirements of these rules. Any energy utility whose commercial energy audit program meets the guidelines of the federal or regional programs, and which has executed a contract to implement the program, shall be considered to have met the requirements of this rule for training and level of audit service. Use of associated federal or regional model commercial audit formats will be considered satisfactory for data collection, analysis procedures, and reports to commercial building customers.

(11) If a commercial building customer qualifies for equal or better audit services under another subsidized program of the federal, state, or local government or utility, the energy utility may refer the commercial building customer to that program. Use of such services shall be at the customer's option.

(12) During the course of an audit, an energy utility shall not recommend fuel switching from one source of energy to another. If it appears a change of energy sources might benefit the customer, the customer shall be advised to seek independent consulting advice. However, if in the case of a joint audit both utilities agree to recommend fuel switching, such a recommendation may be made.

Stat. Auth.: ORS 183, 469, 756 & 757
Stats. Implemented: ORS 469.631 - 469.645 & 756.040
Hist.: PUC 10-1982, f. & ef. 9-30-82 (Order No. 82-685); PUC 1-1998, f. & cert. ef. 1-12-98; PUC 18-1998, f. & cert. ef. 10-12-98; PUC 18-1998, f. & cert. ef. 10-12-98

860-030-0055

Coordination of Utilities

(1) When more than one utility serves the same building, the utilities shall, whenever possible, conduct a joint analysis of the energy consuming systems and present combined recommendations to the commercial building customer. When disputes arise among utilities in the coordination of analysis and recommendations, such disputes will be resolved by the utility with the highest average monthly billing for that customer.

(2) If the commercial building customer uses oil, wood, or a renewable resource in the building, the energy utility shall make reasonable efforts to determine or estimate previous energy use records for that energy system and shall evaluate the system, particularly the operations and maintenance aspects of the system. When the practices and systems seem to warrant attention beyond the capability of the auditor or specialist, the customer shall be referred to the oil or wood supplier, qualified contractor, engineer, or architect.

Stat. Auth.: ORS 183, 469, 756 & 757
Stats. Implemented: ORS 756.040 & 469.631 - 469.645
Hist.: PUC 10-1982, f. & ef. 9-30-82 (Order No. 82-685); PUC 1-1998, f. & cert. ef. 1-12-98

860-030-0060

Fees

All utilities shall develop and present a fee schedule to the Commission for approval. A fee schedule may provide incentives to encourage audit and implementation of audit results. Fee schedules may be defined in terms of the level of complexity of the audit and may identify: per-hour cost of the on-site visit, basic per-hour analysis and report preparation costs, and cost of private consulting engineer's or auditor's fees, if any. Fees may be charged in proportion to work performed if two utilities cooperate on performing the audit for a single building or complex.

Stat. Auth.: ORS 183, 469, 756 & 757
Stats. Implemented: ORS 756.040 & 469.631 - 469.645
Hist.: PUC 10-1982, f. & ef. 9-30-82 (Order No. 82-685); PUC 1-1998, f. & cert. ef. 1-12-98

860-030-0070

Reporting Requirements

(1) Each energy utility shall perform on an annual basis a cost-effectiveness analysis of its commercial energy audit program which shall include, but not be limited to:

(a) The number and cost of audits performed;

(b) Number of measures recommended, by type;

(c) Number of measures installed, by type;

(d) Predicted energy and capacity savings, by type of measure installed and by the program as a whole;

(e) The total program cost to customers;

(f) The energy utility's conclusions as to the cost effectiveness of the program; and

(g) The energy utility's recommendations for changes in the program. If the energy utility's service is offered through an association, the association may provide the above information on an individual basis for each utility served.

(2) Each energy utility may be required to report data aggregated by commercial category. The energy utility shall obtain the customer's consent before making details of an audit available to any other person or entity.

Stat. Auth.: ORS 183, 469, 756 & 757
Stats. Implemented: ORS 469.631 - 469.645 & 756.040
Hist.: PUC 10-1982, f. & ef. 9-30-82 (Order No. 82-685); PUC 1-1998, f. & cert. ef. 1-12-98; PUC 18-1998, f. & cert. ef. 10-12-98

860-030-0075

Accounting

(1) The energy utility shall pass on to all of its customers the commercial energy audit program costs reasonably incurred pursuant to ORS 469.860 to 469.900, by accounting for the costs not recovered from the commercial building customer as an allowable revenue deduction and by including where applicable the unamortized balance of the accumulated deferred debits associated with commercial energy audit program costs in the rate base for rate-making purposes.

(2) The energy utility shall keep books and accounts to permit the Commission to readily identify all costs incurred in connection with the commercial energy audit program.

(3) All costs incurred by an energy utility pursuant to Oregon Laws 1981, Chapter 708, shall be placed in a deferred debit account until such time as the Commission issues an order including an appropriate amount of costs in rates.

(4) After the authorized amount of costs is included in rates, deferred debit accounting shall not be used to recover additional costs unless the energy utility demonstrates the present level of recovery of costs is inadequate.

(5) The costs accumulated in the deferred debit account may be disposed of by being included in rates by a tracking procedure or by being included in rates upon the issuance of an order by the Commission.

Stat. Auth.: ORS 183, 469, 756 & 757 \
Stats. Implemented: ORS 756.040 & 469.631 - 469.645
Hist.: PUC 10-1982, f. & ef. 9-30-82 (Order No. 82-685); PUC 15-1985, f. & ef. 10-1-85 (Order No. 85-896); PUC 1-1998, f. & cert. ef. 1-12-98

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