03-01-2013 BPU RPT 03 - Laserfiche WebLink

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RIVERSIDE PUBLIC UTILITIES I. 3 Board Memorandum U 0 LIC_ t f T I L 1 T 7 _ S BOARD OF PUBLIC UTILITIES DATE: March 1, 2013 ITEM NO: 3 SUBJECT: ASSEMBLY BILL 2021 ENERGY EFFICIENCY TEN-YEAR GOAL ISSUE: The item for Board of Public Utilities consideration is approval of the updated Annual Energy Efficiency and Demand Reduction Goal as required by Assembly Bill (AB) 2021 (Public Utilities Cade Section 9815). RECOMMENDATION: That the Board of Public Utilities approve the Riverside Public Utilities (RPU) updated Annual Energy Efficiency and Demand Reduction Goal of 1%of annual projected retail energy sales for the period beginning 2014 through 2023. BACKGROUND: The California Legislature signed AB 2021 into law on September 29, 2005, requiring all California Publicly Owned Utilities (POUs) beginning in 2007, and every three years thereafter, to identify all potentially achievable cast-effective Energy Efficient (EE) savings and establish annual targets for EE savings and Demand Reduction (DR) over a ten-year period. In 2012, the California State Legislator signed AB 2227 adjusting AB 2021's three-year EE savings target setting cycle to a four-year cycle. AB 2021 further requires each POU to submit an annual report to the California Energy Commission(C EC) on its investment in EE and DR programs and the progress achieved in meeting the established goals. RPU reports these results annually to the CEC through a joint California Municipal Utility Association (CMUA) report due March 15th of each year. The California Municipal Utilities Association's(CMUA),the Northern California Power Agency(N CPA),and the Southern California Public Power Authority(SCPPA),joined together to collaborate on the development of individual utility EE and DR targets. A total of 39 POU's statewide participated in this joint project. Through this collaboration, Navigant Consulting Inc. was retained to assist the POU's in establishing these targets. Navigant is a utility industry consultant with recognized expertise in energy efficiency and demand reduction analysis. The consultant prepared a ten-year model of EE projections for each POU based upon several factors including technical potential,economic potential,cumulative market potential,and incremental market potential for the residential, commercial,industrial,and agricultural customer segments.This statewide model is referred to as the Energy Efficiency Resource Assessment Model (EERAM). Based upon the EE modeling provided by Navigant Consulting for RPU, staff recommends the Board of Public Utilities adopt the updated Annual Energy Efficiency and Demand Reduction Goal of 1% of annual projected energy retail sales for the period beginning 2014 through 2023.