The Public Utility Commission oversees the Energy Trust to ensure that it produces good results (in terms of conservation savings and renewable resource development) and that it does so efficiently.
To oversee the Energy Trust, the PUC:
- Established performance measures and sets annual targets for the Energy Trust. These benchmarks aim to ensure that the Energy Trust achieves high levels of conservation savings and renewable resource generation, keeps its administrative costs down, and provides a high level of customer satisfaction.
- Reviews and comments on the Energy Trust’s strategic plans, action plans, and annual budgets.
- Requires the Energy Trust to report quarterly at a PUC public meeting on program activity and finances.
- Requires a management audit of the Energy Trust at least every five years. The first one was completed in early 2005.
Summary of 2006 Energy Trust Performance Measures
Electric Efficiency Performance Targets:
The Commission expects the Trust to obtain electricity efficiency savings of at least 20 MWa, computed on a three-year rolling average.
The Commission expects the Trust to obtain electricity efficiency savings at an average levelized life-cycle Energy Trust cost of not more than two cents per kWh.
Natural Gas Efficiency Performance Targets:
The Commission expects the Trust to obtain natural gas efficiency savings of at least 700,000 therms, computed on a three-year rolling average.
The Commission expects the Trust to obtain natural gas efficiency savings at an average levelized life-cycle Energy Trust cost of not more than 30 cents per therm.
Renewable Resource Development Targets:
The Commission expects the Trust’s Utility-Scale Program to achieve 9 MWa of new renewable resource development annually, computed on a three-year rolling average, by funding projects consistent with each utility’s acknowledged Integrated Resource Plan.
Performance is expected to vary year by year due to tax policies, energy policies, utility acquisition activities and market prices. Therefore, the Commission expects the Trust to submit with its draft action plan and budget each year projected Utility-Scale Program achievements for the coming year for Commission and public comment.
The Commission expects the Trust to secure at least 3 MWa of new renewable resources per year, computed on a three-year rolling average, from a variety of small-scale projects.
Financial Integrity:
The Commission expects the Trust to demonstrate its financial integrity by obtaining an unqualified financial audit opinion annually.
Program Delivery Efficiency:
The Commission expects the Trust to demonstrate program delivery efficiency by keeping its administrative and program support costs below 11 percent of annual revenues.
Customer Satisfaction:
The Commission expects the Trust to demonstrate reasonable customer satisfaction rates by surveying its customers as part of its program evaluations. Preferably, the surveys will provide a scale showing the degree of satisfaction with Trust services and allow for open-ended responses. In addition, the Trust will report salient statistics regarding complaints it receives directly, or from utility customer services. Findings are to be reported to the Commission.
Benefit/Cost Ratios:
The Commission expects the Trust to report the benefit/cost ratio for its conservation acquisition programs in its annual report based on the utility system perspective and societal perspective. The Commission expects the Trust to report significant mid-year changes in benefit/cost performance as necessary in its quarterly reports.
Other Considerations:
In addition to considering the results of the above-mentioned performance measures, the Commission will also consider the performance of other conservation and renewable resource programs and public comments when making its annual decision to renew its Grant Agreement with the Trust. The Commission will seek comment from the public on such issues as the following:
- Is the Trust achieving good results in its conservation and renewable resource programs?
- Does the Trust conduct its business in an open and transparent way?
- Is the Trust receptive to public input?
- Does the Trust monitor program performance and make program adjustments effectively?
- Are the benefits of the Trust’s programs reasonably spread among customer classes and geographic areas?
- Are the Trust’s programs appropriately coordinated with related local, state, and regional programs?
- Is the Trust complying with the guidelines set forth in the Grant Agreement?
- Are there any significant issues that warrant the issuance of a Notice of Concern?
- Should the Grant Agreement be renewed for another year?
To view the entire report please click here: Order 05-920.
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