Reduce GHG Emissions Benchmark

  • Id
    7
  • State
    DC
  • Utility
    DC Sustainable Energy Utility (DCSEU)
  • Applicability
    Both
  • Emergent Topic
    CFE; GHG
  • Description
    The mechanism is intended to incentivize DCSEU to develop and implement energy efficiency and sustainability programs for electricity, fuel oil users and natural gas users that directly lead to annual reductions of the District’s GHG emissions, measured in metric tons of carbon dioxide equivalent ("MtCO2e").
  • Metric
    Annual reductions of the District's greenhouse gas ("GHG") emissions, measured in metric tons of carbon dioxide equivalent ("MtCO2e")
  • Target
    Targets are cumulative over the 5-year performance period. The minimum and maximum target levels are as follows: Year 1: Minimum: 78,650 MtCO2e; Maximum: 104,867 MtCO2e Year 2: Minimum: 157,300 MtCO2e; Maximum: 209,734 MtCO2e Year 3: Minimum: 262,167 MtCO2e; Maximum: 314,601 MtCO2e Year 4: Minimum: 367,034 MtCO2e; Maximum: 419,467 MtCO2e Year 5: Minimum: 471,901 MtCO2e; Maximum: 524,334 MtCO2e
  • Incentive Type
    Symmetrical
  • Incentive Structure
    Fixed amount
  • Incentive Description
    If DCSEU achieves savings above the minimum target level, the company will receive pro-rated compensation per MtCO2e 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: $100K; Maximum: $200K Year 2: Minimum: $300K; Maximum: $400K Year 3: Minimum: $500K; Maximum: $600K Year 4: Minimum: $700K; Maximum: $800K Year 5: Minimum: $900K; Maximum: $1M The total penalty for failure to achieve the required reductions in GHG emissions is capped at $1M. The penalties shall be pro-rated per MtCO2e short of the target, depending on the DCSEU's cumulative achievement by the end of the performance period.
  • Start Date
    2021
  • End Date
    2026
  • Source: Original Docket
    N/A
  • Source: PUC Order
    DCSEU Multiyear Contract
  • Status
    Active
  • Additional Notes
    In calculating performance against this metric, DCSEU is directed to convert annual modified gross source energy savings for electricity (megawatt-hours ("MWh")), natural gas (British thermal units ("therms")), and other “nonenergy” carbon savings into MtCO2e and add them together to derive the total annual reduction in MtCO2e achieved. DCSEU must utilize a DOEE-approved GHG emissions calculator to calculate the avoided annual and cumulative GHG reductions based on marginal emission rates. DCSEU must then estimate an annual weighted average marginal emissions rate based on the savings accumulated during each of the four seasonal costing periods.
  • Note on Verification
    The information in this entry represents RMI analysis. The details have not yet been verified by a local stakeholder.