6.2a ERMUSR 09-14-2021 - Laserfiche WebLink

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saw their goal increased to 1.75%.) The first 0.95% must be from conservation efforts, but the remaining 0.55% can come from a variety of sources, including efficient fuel switching improvements. However, until July 1, 2026, a COU may not spend more than 0.55% per year, averaged over a three-year period, of the utility’s gross annual retail energy sales, on efficient fuel switching improvements. o Article 2, section 4, subd. 3 - provides for the transition to ECO plans, the first of which must be filed by June 1, 2022. The plan can be up to three years in duration. A COU opting to file a two or three-year plan does not have to ensure that each year of the plan will see at least a 0.95% savings, but over the life of the plan must average savings of at least 0.95%. Annual updates must be given on the status of each plan beginning June 1, 2023. This portion of ECO also authorizes a COU to seek a reduction in their savings goal, but the Commerce Commissioner may not approve a reduction below 0.95% on the conservation side of the goal. o Article 2, section 4, subd. 4 imposes a penalty if a utility fails to meet its savings goal for three consecutive years and has not spent an average of at least 1.5% of its gross operating revenue during that time for an electric utility and 0.05 percent gross operating revenue for a gas utility. The penalty remains in effect until the utility’s savings goal has been met for three consecutive years. The Commerce Commissioner has some discretion to lower the penalty. This provision replaces the minimum spending requirement that applied to all utilities regardless of what it cost to meet their respective savings goal. o Article 2, section 4, subd. 5 - maintains a COU’s obligation to fund a low-income program, but now allows some money to be spent on “pre-winterization” efforts. IOUs will see a steady increase in low- income spending, but this mandate does not apply to COUs. The Commerce Commissioner was required to have by August 1, 2021, convened a stakeholder group to establish updated guidelines for determining eligibility of multifamily buildings to participate in conservation programs offered to low-income households. Such a group must meet at least once every five years. o Article 2, section 4, subd. 8 – establishes criteria for measuring efficient fuel switching improvements, including requirements that it: results in a net reduction of source energy; results in a net reduction of statewide greenhouse gas emissions; and is cost effective. o Article 2, section 7 – establishes a stakeholders’ group, including municipal utilities, to develop technical guidelines for efficient fuel- 5 111