4 Colo. Code Regs. § 723-3-3533
Current through Register Vol. 47, No. 11, June 10, 2024
Section 4 CCR 723-3-3533 - Grid Innovation(a) The DSP shall address DSP pilots and programs that are either in progress, planned, or have been suggested by other parties and found to have merit by the utility. The DSP shall identify any barriers to deployment of DERs and NWA. Such barriers may include but not be limited to integration or interconnection of DERs and NWAs, barriers that limit the ability of a DER and NWA to provide benefits, and barriers related to distribution system operation and infrastructure capability. This section shall include, but not be limited to: (I) Within each DSP, the utility may propose new pilots and programs designed to gain experience integrating DER, NWA or other new distribution technologies in a way that improves system performance, minimizes system costs, increases system resiliency and/or reliability, and/or reduces greenhouse gas emissions including from reduced curtailment of renewable energy. Such pilots and programs may be proposed as solutions to help solve identified grid needs identified under rule 3532.(II) New proposed pilots. Within each DSP, the utility may propose new pilots. Pilots shall not be required to pass a cost-benefit test; however, the Commission shall determine that the pilot can be implemented at a reasonable cost and rate impact. Each of the proposed pilots shall, at a minimum, include: (A) a description of what the utility seeks to learn through the pilot with specific goals and metrics;(B) an explanation of how the pilot can be scaled to enable the utility to achieve objectives described in the plan pursuant to rule 3529;(C) the specific DER and NWA technology or technologies eligible for the pilot, including any operational requirements;(D) a description of any geographic or locational focus of the pilot;(E) the customer classes that may participate in the pilot;(F) a description of the potential benefits the utility expects the pilot technology to demonstrate;(G) a description of the costs of the pilot, including a cap on costs for each pilot;(H) criteria for evaluation of the pilot and an evaluation plan that includes a calculation of pilot costs, schedule, and a summary of pilot benefits, including quantified benefits, as available;(I) a description of the use of any targeted incentive payments, or other incentives, provided to participants; (J) a description of the mechanism to acquire equipment, technologies, vendors, and participants in the pilot; and(K) a description of how the pilot will provide health, safety, environmental, or financial benefits to disproportionately impacted communities.(III) New proposed programs. Within its DSP, the utility may seek approval for a new program to better integrate DER and NWA or other distribution technologies into its business practices in a way that improves system performance, minimizes costs, increases system resiliency and reliability, or reduces emissions. Proposed programs may be successors of completed pilots; however, a utility does not need to have conducted a pilot in order to seek approval for a new program.(IV) The utility may propose pilots or programs developed internally and shall also accept third-party proposals for pilots and programs at any time. For a third-party pilot or program to be considered in a DSP, it must be received by the utility at least six months prior to the DSP filing deadline. When seeking approval for such pilots or programs, the utility shall provide an overview of all pilots and program proposals considered and an explanation for its proposed selections and rejections. For any proposal not considered, the utility shall explain why it was not considered.(V) Updates on existing pilots and programs. Within its DSP, the utility shall provide a narrative status update on all active pilots and programs approved in prior DSPs. The utility may also seek reauthorization of existing programs within a DSP. As part of its first DSP, the utility is encouraged to evaluate whether any existing reporting obligations outside the DSP related to distribution system pilots, programs, or projects should be centralized within the DSP process. Upon Commission approval, and notice filed within the original proceeding, such reporting obligations shall be transferred to DSP proceedings.(b) NWAs and pilots may include the use of targeted incentive payments to encourage DER adoption or optimize the use of existing DERs by customers in specific locations, to provide locational value to the system. Such incentives shall be accounted for in the cost benefit analysis as described in rule 3535 and shall be recovered in a manner similar to other distribution-grid related expenditures.38 CR 17, September 10, 2015, effective 9/30/201539 CR 06, March 25, 2016, effective 4/14/201639 CR 08, April 25, 2016, effective 5/15/201640 CR 22, November 25, 2017, effective 12/15/201742 CR 03, February 10, 2019, effective 3/2/201942 CR 07, April 10, 2019, effective 4/30/201942 CR 09, May 10, 2019, effective 5/30/201943 CR 08, April 25, 2020, effective 5/15/202043 CR 12, June 25, 2020, effective 7/15/202043 CR 20, October 25, 2020, effective 11/14/202044 CR 13, July 10, 2021, effective 7/30/202144 CR 24, December 25, 2021, effective 1/14/202245 CR 18, September 25, 2022, effective 10/15/202246 CR 02, January 25, 2023, effective 2/14/2023