278.285 Demand-side management plans -- Review and approval of proposed plans
511 words·~2 min read·
/ky/278-285A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
and mechanisms -- Assignment of costs -- Home energy assistance programs.
(1)The commission may determine the reasonableness of demand-side management
plans proposed by any utility under its jurisdiction. Factors to be considered in this
determination include, but are not limited to, the following:
(a)The specific changes in customers' consumption patterns which a utility is
attempting to influence;
(b)The cost and benefit analysis and other justification for specific demand-side
management programs and measures included in a utility's proposed plan;
(c)A utility's proposal to recover in rates the full costs of demand-side
management programs, any net revenues lost due to reduced sales resulting
from demand-side management programs, and incentives designed to provide
positive financial rewards to a utility to encourage implementation of cost-
effective demand-side management programs;
(d)Whether a utility's proposed demand-side management programs are
consistent with its most recent long-range integrated resource plan;
(e)Whether the plan results in any unreasonable prejudice or disadvantage to any
class of customers;
(f)The extent to which customer representatives and the Office of the Attorney
General have been involved in developing the plan, including program design,
cost recovery mechanisms, and financial incentives, and if involved, the
amount of support for the plan by each participant, provided however, that
unanimity among the participants developing the plan shall not be required for
the commission to approve the plan;
(g)The extent to which the plan provides programs which are available,
affordable, and useful to all customers; and
(h)Next-generation residential utility meters that can provide residents with
amount of current utility usage, its cost, and can be capable of being read by
the utility either remotely or from the exterior of the home.
(2)A proposed demand-side management mechanism including:
(a)Recover the full costs of commission-approved demand-side management
programs and revenues lost by implementing these programs;
(b)Obtain incentives designed to provide financial rewards to the utility for
implementing cost-effective demand-side management programs; or
(c)Both of the actions specified
may be reviewed and approved by the commission as part of a proceeding for
approval of new rate schedules initiated pursuant to KRS 278.190 or in a separate
proceeding initiated pursuant to this section which shall be limited to a review of
demand-side management issues and related rate-recovery issues as set forth in
subsection
(1)of this section and in this subsection.
(3)The commission shall assign the cost of demand-side management programs only to
the class or classes of customers which benefit from the programs. The commission
shall allow individual industrial customers with energy intensive processes to
implement cost-effective energy efficiency measures in lieu of measures approved
as part of the utility's demand-side management programs if the alternative
measures by these customers are not subsidized by other customer classes. Such
individual industrial customers shall not be assigned the cost of demand-side
management programs.
(4)Home energy assistance programs may be part of a demand-side management
program. In considering a home energy assistance program, the commission shall
only utilize the criteria set forth in subsections (1)(f) and
(3)of this section.