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EPESaver™ Industrial Customer "Self-Direct" Program

EPE's Industrial Customer "Self-Direct" Energy Efficiency Program

Industrial customers who are willing to forgo incentives for undertaking cost-effective energy efficiency measures at their own facilities in exchange for not being charged a share of EPE's EPESaver program costs may apply to opt out of the program. The Public Regulation Commission of New Mexco has established rules governing the Self-Direct Program procedures.

In order to participate in the Self-Direct Program, eligible industrial customers are required to contact EPE's Self-Direct Program Administrator, who will review the customer's submittal and make a determination whether the application for an electricity credit is warranted.

EPE's Self-Directed Program Administrator:

Governing Rules

The New Mexico Public Regulation Commission has promulgated the following rules governing EPE's self-direct program. The "self-direct" provision of the rules are available to customers meeting the "large customer" definition:

"Large customer means a utility customer at a single, contiguous field, location or facility, regardless of the number of meters at that field, location or facility, with electricity consumption greater than seven thousand megawatt-hours per year or natural gas use greater than three hundred sixty thousand decatherms per year"

17.7.2.10              LARGE CUSTOMER SELF-DIRECT PROGRAM AND EXEMPTIONS:

A. General. A large customer shall receive approval for a credit for and equal to the incremental expenditures that customer has made at its facilities on and after January 1, 2005 toward cost-effective energy efficiency and load management, upon demonstration to the reasonable satisfaction of the utility or self-direct program administrator that its expenditures are cost-effective. The utility shall assign a person to evaluate and approve or disapprove large customer requests for credits or exemptions. The commission may appoint a self-direct program administrator, in lieu of the utility's designated person, for good cause shown.

B. Eligibility. Large customers applying for an electricity credit or exemption must meet the electricity consumption size criterion and those applying for a gas credit or exemption must meet the gas consumption criterion. Projects by qualified customers that save electricity are eligible for an electricity credit only. Projects that save natural gas are eligible for a gas credit only. Projects that save electricity and gas are eligible for both credits although the same energy efficiency expenditures cannot be used twice. Customers become eligible for self-direct program credits only after expenditures for a qualifying energy efficiency project(s) is made. Expenditures must be documented and approved by the utility or administrator prior to the credit being awarded If expenditures are ongoing, the customer should present and receive approval for its expenditures to the utility or program administrator annually.

C. Requirements for approval of self-direct projects or exemptions. Self-direct program participants, or large customers seeking exemption, shall submit qualified in-house or contracted engineering studies, and such other information as may be reasonably required by the utility or program administrator, to demonstrate qualification for self-direct program credits or exemptions. Large customers must respond to reasonable utility or administrator information requests and allow the utility or administrator to perform site visits if necessary Eligible expenditures shall have a simple payback period of more than one year but less than seven years. Projects that have received rebates, financial support or other substantial program support from a utility are not eligible for a credit. The utility or administrator shall act in a timely manner on requests for self-direct program approval.

D. Requirements for exemptions from the tariff rider. A large customer shall receive an exemption to paying 70% of the tariff rider if that customer demonstrates to the reasonable satisfaction of the utility or self-direct program administrator that it has exhausted all cost-effective energy efficiency measures in its facility (or group of facilities if facilities are aggregated in order to qualify). A determination of exemption is valid for 24 months. After the expiration of 24 months, a customer may request approval for exemption again by demonstrating that it has exhausted all cost effective energy efficiency in its facility or facilities.

H. Review procedure. Approvals or disapprovals of credits or exemptions by the utility or administrator shall be subject to commission review. The utility or administrator shall file notice of each self-direct program approval or disapproval with the commission, and serve that notice on interested persons, within 5 business days of the action. Notice of an appeal of an approval or disapproval shall be filed with the Commission within 30 days of the approval or disapproval action.

F. Credits for self-direct programs Credits for approved self-direct programs maybe used to offset up to seventy percent of the tariff rider authorized by the Efficient Use of Energy Act until the credit is exhausted. Any credit not fully utilized in the year it is received shall carry over to subsequent years. The process of reviewing self-direct programs and awarding credits shall be designed to minimize utility administrative costs!

G. Measurement and verification of self-direct programs: Self-direct projects, expenditures and exemptions under this section shall be evaluated by the independent program evaluator. Large customers with approved self-direct programs or exemptions shall permit the evaluator access to all relevant engineering studies and documentation needed to verify energy savings of the project, and allow access to its site for reasonable inspections, at reasonable times. All records relevant to a self direct program shall be maintained by the large customer for the duration of that program. The evaluator shall use measurement and verification standards described in 17.7 2.12 Subsection H(S) of NMAC, subject to appropriate protections for confidentiality, and the evaluator's findings shall be reported in the annual report to the commission pursuant to the Efficient Use of Energy Act. Following a determination by the independent program evaluator that a project is not achieving the cost-effectiveness requirements of this section, the customer's credit for that project shall be suspended, unless otherwise ordered by the commission.,

H. Confidentiality. Upon request by the large customer, the information provided pursuant to this section by large customers to .the utility or program administrator, program evaluator and others shall remain confidential except as otherwise ordered by the Commission.