November 21, 2014, Volume 3, Issue 273

11/21/2014

Update:  On November 20, 2014, the Commission issued a Finding and Order approving FirstEnergy’s amended portfolio plan, with several modifications.  First, the Commission determined that FirstEnergy may not count savings from customers who have elected to opt out toward meeting the statutory benchmarks. Second, the Commission did not reduce FirstEnergy’s budget to reflect the narrowed program offerings under the amended program; however, it noted that FirstEnergy should ensure that the rider reflects a forecast of the costs to be incurred for the programs, as opposed to the maximum budget amounts permitted.  The Commission also noted that it expected that FirstEnergy’s next rider adjustment will reflect lower costs to customers resulting from the implementation of the Amended Portfolio. Third, the Commission determined that FirstEnergy can continue to collect shared savings for exceeding its annual statutory benchmarks.  Fourth, the Commission approved the newly-proposed Customer Action Plan (CAP); however, savings resulting from the CAP may not be counted until proper measurement and verification of those savings occurs.  Further, FirstEnergy must demonstrate that the CAP is cost effective using the Total Resource Cost test as a part of future audits.  Fifth, FirstEnergy must seek Commission approval prior to any reallocation of funds or adjustment of the program mix.  Finally, the Commission determined that, in order to account for potential further legislative modifications in the future, going forward, FirstEnergy may bid only installed energy efficiency resources into future PJM capacity auctions.

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