Reduce Energy Consumption Benchmark

  • Id
    6
  • State
    DC
  • Utility
    DC Sustainable Energy Utility (DCSEU)
  • Applicability
    Both
  • Emergent Topic
    CFE
  • Description
    The mechanism is intended to incentivize DCSEU to develop and implement energy efficiency programs that directly lead to annual reductions of total energy consumed by electricity, natural gas, or fuel oil users.
  • Metric
    Annual reductions of total energy consumed by electric, natural gas, or fuel oil users, measured in million British thermal units ("MMBtu")
  • Target
    Targets are cumulative over the 5-year performance period. The minimum and maximum target levels are as follows: Year 1: Minimum: 1,136,789 MMBtu; Maximum: 1,515,718 MMBtu Year 2: Minimum: 2,273,578 MMBtu; Maximum: 3,031,437 MMBtu Year 3: Minimum: 3,789,296 MMBtu; Maximum: 4,547,155 MMBtu Year 4: Minimum: 5,305,014 MMBtu; Maximum: 6,062,874 MMBtu Year 5: Minimum: 6,820,733 MMBtu; Maximum: 7,578,592 MMBtu
  • Incentive Type
    Symmetrical
  • Incentive Structure
    Fixed amount
  • Incentive Description
    If DCSEU achieves the minimum target level of savings, the company will receive pro-rated compensation per MMBtu up to the maximum amount of compensation available for the benchmark in a given year, minus any incentives earned in previous years. The minimum and maximum incentive levels are as follows: Year 1: Minimum: $200K; Maximum: $400K Year 2: Minimum: $600K; Maximum: $800K Year 3: Minimum: $1M; Maximum: $1.2M Year 4: Minimum: $1.4M; Maximum: $1.6M Year 5: Minimum: $1.8M; Maximum: $2M DCSEU can incur a maximum penalty of $2M for failing to meet the target at the end of the 5-year performance period. The penalty is pro-rated per MMBtu short of the target.
  • Start Date
    2021
  • End Date
    2026
  • Source: Original Docket
    N/A
  • Source: PUC Order
    DCSEU Multiyear Contract
  • Status
    Active
  • Additional Notes
    The Clean and Affordable Energy Act of 2008 (D.C. Code §8-1773.01 et seq.) establishes authority in the Mayor, by, and through the Department of Energy and Environment ("DOEE"), to contract with a private entity to be known as the District of Columbia Sustainable Energy Utility (“DCSEU”) to administer sustainable energy programs in the District, including the development, coordination, and provision of programs for the purpose of promoting the sustainable use of energy in the District. The DCSEU shall design and implement programs in the District to reduce energy consumption, increase renewable energy generating capacity, improve the energy efficiency and increase the renewable energy generating capacity of low-income housing, shelters, clinics, or other buildings serving low-income residents, and increase the number of green-collar jobs in the District. In calculating performance against this metric, DCSEU is directed to use modified gross source energy savings when converting natural gas and electricity savings to BTUs. Source energy represents the total amount of primary fuel required to generate and deliver energy and incorporates all transmission, distribution, and production losses. Modified gross source energy savings should include considerations for like-fuel interactive effects and exclude considerations for cross-fuel interactive effects, free ridership, and spillover.
  • Note on Verification
    The information in this entry represents RMI analysis. The details have not yet been verified by a local stakeholder.