Section 8-1-8.5-9 - Energy efficiency programs; opt out by industrial customers; prohibition against extending or renewing energy efficiency programs established under DSM order(a) For purposes of this section, "DSM order" refers to an order of the commission that establishes or approves:(1) energy efficiency targets or goals for electricity suppliers; or(2) an energy efficiency program sponsored by an electricity supplier. The term includes the December 9, 2009, order of the commission concerning demand side management programs.
(b) For purposes of this section, "electricity supplier" has the meaning set forth in IC 8-1-2.3-2(b).(c) For purposes of this section, "energy efficiency program" means a program that is: (1) sponsored by an electricity supplier or a third party administrator; and(2) designed to implement energy efficiency improvements (as defined in 170 IAC 4-8-1(j)) for customers. The term does not include a program designed primarily to reduce demand.
(d) For purposes of this section, "energy efficiency program costs" include:(3) incentives approved by the commission.(e) For purposes of this section, "industrial customer" means a person that receives services at a single site constituting more than one (1) megawatt of electric capacity from an electricity supplier.(f) An industrial customer may opt out of participating in an energy efficiency program that is established by an electricity supplier by providing notice to the electricity supplier. Except as provided in subsection (g), an electricity supplier may not charge an industrial customer that opts out rates that include energy efficiency program costs that accrue or are incurred after the date on which the industrial customer opts out. However, an industrial customer remains liable for rates that include energy efficiency program costs that accrued or were incurred, or related to investments made, before the date on which the industrial customer opts out, regardless of the date on which the rates are actually assessed against the industrial customer.(g) An industrial customer that opts out of participating in an energy efficiency program may subsequently opt to participate in the same or a different energy efficiency program. The industrial customer must participate in the subsequent energy efficiency program for at least three (3) years after the date on which the industrial customer opts in. If the industrial customer terminates participation in the subsequent energy efficiency program during the three (3) year period described in this subsection, the industrial customer shall continue paying energy efficiency program rates, including costs described in subsection (f), for the remainder of the three (3) year period.(h) Energy efficiency targets or goals that are approved or mandated by the commission in a DSM order must be calculated to exclude all load from an industrial customer that opts out under subsection (f).(i) The commission may adopt: (1) rules under IC 4-22-2; or(2) guidelines; to assist electricity suppliers and industrial customers in complying with this section.
(j) The commission may not: (1) extend, renew, or require the establishment of an energy efficiency program under; or(2) after December 31, 2014, require an electricity supplier to meet a goal or target established in; the DSM order issued by the commission on December 9, 2009. An electricity supplier may not renew or extend an existing contract or enter into a new contract with a statewide third party administrator for an energy efficiency program established or approved by the DSM order issued by the commission on December 9, 2009.
(k) After December 31, 2014, an electricity supplier may continue to timely recover energy efficiency program costs that: (1) accrued or were incurred under or relate to an energy efficiency program implemented under the DSM order issued by the commission on December 9, 2009; and(2) are approved by the commission for recovery.(l) After December 31, 2014, an electricity supplier may offer a cost effective portfolio of energy efficiency programs to customers. An electricity supplier may submit a proposed energy efficiency program to the commission for review. If an electricity supplier submits a proposed energy efficiency program for review and the commission determines that the portfolio included in the proposed energy efficiency program is reasonable and cost effective, the electricity supplier may recover energy efficiency program costs in the same manner as energy efficiency program costs were recoverable under the DSM order issued by the commission on December 9, 2009. The commission may not: (1) require an energy efficiency program to be implemented by a third party administrator; or(2) in making its determination, consider whether a third party administrator implements the energy efficiency program.(m) This section does not affect:(1) an energy efficiency program offered by an energy utility (as defined in IC 8-1-2.5-2) that is not an electricity supplier; or(2) the manner in or means by which an energy utility described in subdivision (1) may recover costs associated with an energy efficiency program described in subdivision (1).Amended by P.L. 149-2016, SEC. 35, eff. 3/23/2016.Amended by P.L. 246-2015, SEC. 3, eff. 5/6/2015.Added by P.L. 223-2014, SEC. 1, eff. 3/28/2014.