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National Fuel Gas Distribution Corporation's Conservation Incentive Program Update

Strategic Insights

— 2 min read

The New York State Public Service Commission (Commission) has issued an update to the National Fuel Gas Distribution Corporation's (Distribution) Conservation Incentive Program (CIP) in response to the Commission's Track 1 Order of February 26, 2015. The update includes a new Energy Efficiency Transition Implementation Plan (ETIP) for the 2020-2025 program years, which was filed by Distribution on September 15, 2020. The updated plan reflects the Commission's accelerated energy efficiency targets and budgets for investor-owned utilities, including Distribution, for the 2019 and 2020 program years.

Key Takeaways:

  • Distribution filed its ETIP for the 2016-2018 program years on July 15, 2015, in response to the Commission's Track 1 Order.
  • The Commission issued an Order Authorizing Utility-Administered Energy Efficiency Portfolio Budgets and Targets for 2019-2020 on March 15, 2018, which reaffirmed Distribution's annual budget and dekatherm (Dth) target for 2018 and authorized its targets for 2019 and 2020.
  • The Commission directed utilities to augment their ETIP filings to include System Energy Efficiency Plan (SEEP) information, which was updated by Staff in December 2018.
  • The 2020 Energy Efficiency Order established base annual budget and target amounts for 2021 through 2025 equal to the annual budgets and targets in the 2018 Energy Efficiency Order.
  • The Order also allocated 20% of the incremental budgets for all utilities to low- to moderate-income (LMI) programs.
  • Distribution filed its updated ETIP for the 2020-2025 program years on September 15, 2020, which included a new SEEP filing date of October 1 for subsequent submissions.

Statistics:

  • Distribution's annual budget for 2019 was $14.4 million, with a Dth target of 640,000 dekatherms.
  • The Commission's accelerated energy efficiency targets for investor-owned utilities for 2019 and 2020 resulted in a 10% increase in Dth targets for Distribution.
  • The updated ETIP for the 2020-2025 program years includes a new target of 800,000 Dth for 2025.
  • The updated plan also includes a 20% allocation of incremental budgets for LMI programs, with a total budget of $2.8 million allocated for 2021.

Sources:

  • Case 14-M-0101 - Order Adopting Regulatory Policy Framework and Implementation Plan, issued and effective February 26, 2015 ("Track 1 Order")
  • Case 15-M-0252 - Order Authorizing Utility-Administered Gas Energy Efficiency Portfolios for Implementation Beginning January 1, 2016, issued and effective June 19, 2015
  • Case 15-M-0252 - Guidance Document CE-02, ETIP Guidance, filed on May 1, 2015
  • Case 18-M-0084 - Order Adopting Accelerated Energy Efficiency Targets, issued and effective December 13, 2018
  • Case 18-M-0084 - Order Authorizing Utility Energy Efficiency and Building Electrification Portfolios through 2025, issued and effective January 16, 2020
  • Case 15-M-0252 - National Fuel Gas Distribution Corporation's Updated ETIP for the 2020-2025 program years, filed on September 15, 2020.

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