Order 15561 - Pascoag Fire District: Demand Side Management Program

 

STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS

PUBLIC UTILITIES COMMISSION

REPORT AND ORDER

On January 27, 1998, the Pascoag Fire District ("PFD" or "District") filed with the Public Utilities Commission ("Commission") its Demand Side Management ("DSM") Program, in compliance with the Utility Restructuring Act of 1996 ("Act"), R.I.G.L. Section 39-2-1(b). The Act mandates an annual charge of $.0023 per kWh to fund demand-side management programs and renewable energy resources for a five-year period beginning on January 1, 1997. Although the Act provides for the funding of the programs, the Commission still has an important role to play in reviewing the design and implementation of DSM programs.

Following public notice, a hearing was conducted at the Commission's offices, 100 Orange Street, Providence, on February 25, 1998.  [1 The hearing was originally scheduled for February 12, 1998, and was opened on that date. Due to a death in the principal witness' family, however, the hearing was continued to February 25, 1998.] The following appearances were entered:

FOR THE COMPANY:          Ina Suuberg, Esq.

FOR THE DIVISION:             Elizabeth Kelleher, Esq., Special Assistant Attorney General

FOR THE COMMISSION:     Adrienne G. Southgate, General Counsel

Pascoag's DSM program was designed to reduce the system peak demand, and give PFD ratepayers an opportunity to reduce their kilowatt-hour consumption. It continues to have an emphasis on education, with newsletters and load management seminars planned. There are both residential  [2 Measures include compact fluorescent bulbs, hot water tank wraps, low flow shower heads, hot water pipe covers and attic access door insulation, and energy-crafted homes.] and commercial/industrial programs.  [3 Measures include compact fluorescent bulbs, hot water wraps (for domestic hot water use), HVAC and refrigeration variable frequency drives, energy efficient motors, T8 bulbs with electronic ballasts, fluorescent system dimmers and occupancy detectors, and renewables funding.]

The Division supported Pascoag's DSM filing, through a memorandum by Mary Kilmarx dated February 16, 1998. Ms. Kilmarx noted that Pascoag's programs were quite comprehensive, comprising both retrofit and new construction, and geared to all customer classes. She recommended that the Commission allow some flexibility in the amounts to be spent for each type of measure to enhance program results. She also suggested that the quarterly reporting be reduced to mid-year and final reports on DSM expenditures. The Division's major concern about the program was the administrative charges, which amount to roughly 25% of the total budget, in contrast to roughly 10% for the investor-owned utilities.

At the hearing, Pascoag called Theodore G. Garille, who explained the evolution of the DSM administration, as well as certain changes in funding over the past year. Mr. Garille testified that PFD will continue to spend roughly $7,000 per annum for verification of DSM savings through a software program designed by Eastern Utilities Associates. However, the remainder of the administrative budget is intended to cover approximately 25-30% of the wages and fringe benefits of the journeyman lineman who will perform DSM services.

After hearing the testimony, the Division's counsel acknowledged that the portion of costs allocated to personnel fell within the "comfort range" of $10,000 to $15,000. While not enthusiastic about devoting so much to administrative costs, counsel indicated the Division would not oppose the District's filing.

At an open meeting on March 9, the Commission found the proposed DSM factor of $.0023 to be in compliance with the Act, and the DSM Programs and budget to be reasonable, in the best interests of the rate payers, and supported by the evidence.

Accordingly, it is

(15561) ORDERED:

1. The Pascoag Fire District's Demand Side Management Program is hereby approved.

2. The District's proposed Demand Side Management adjustment factor of $.0023 per kilowatt-hour is hereby approved for application in the billing months of January through December, 1998.

3. The District shall have flexibility to move funds from one DSM program to another with the concurrence of the Division.

4. The District shall make mid-year and final reports on its DSM expenditures.

EFFECTIVE AT PROVIDENCE, RHODE ISLAND, ON JANUARY 1, 1998, PURSUANT TO AN OPEN MEETING DECISION ON MARCH 9, 1998. WRITTEN ORDER ISSUED MARCH 20, 1998.

PUBLIC UTILITIES COMMISSION