PUCO Mercantile Application

EE/PDR Rider Exemptions

EE/PDR Rider Exemption Process• Customer typically files a joint application with their Electric Distribution Utility.

– 4901:1-39-05 (G)

• Applicants are required to submit applications using the “Application to Commit Energy Efficiency/Peak Demand Reduction Programs (Mercantile Customers Only)” template.

EE/PDR Rider Exemption Process• Exemption from the EE/PDR Rider is determined using the benchmark comparison methodology and the customer’s electrical baseline.

– Benchmark Comparison Methodology requires the customer to mirror the annual statutory requirements of the EDU to remain exempt from the EE/PDR Rider (10-834-EL-EEC, September 15, 2010)– Baseline is determined by using the average total kilowatt-hours of distribution service sold to retail customers of the electric utility in the preceding three calendar years OAC 4901:1-39-01 (J)

Example:

• Approval of an Application is granted through a 60 day review process. Staff may recommend denial of the application or request that it be suspended for further review within the 60 day review process.

• Applications requesting an Exemption greater than 24 months require a biannual report filed with the Commission to verify continual savings equal to the EDU’s statutory requirements. (10-834-EL-EEC, September 20, 2011)

Determine 3 year baselineYear 1 (kWh) 1,000,000Year 2 (kWh) 1,100,000Year 3 (kWh) 1,200,000Total (kWh) 3,300,000

Baseline (A) (kWh) 1,100,000

Project Savings (B) per application (kWh) 150,000

Benchmark comparisonProject Savings (B) divided by

established Baseline (A) 0.136364Percentage of savings 13.64

EE BenchmarksYear Additional Reduction Cumulative Reduction

2009 0.30% 0.30%2010 0.50% 0.80%2011 0.70% 1.50%2012 0.80% 2.30%2013 0.90% 3.20%2014 1.00% 4.20%2015 1.00% 5.20%2016 1.00% 6.20%2017 1.00% 7.20%2018 1.00% 8.20%2019 2.00% 10.20%2020 2.00% 12.20%2021 2.00% 14.20%2022 2.00% 16.20%2023 2.00% 18.20%2024 2.00% 20.20%2025 2.00% 22.20%

Rider exemption estimated through August, 2021

Mercantile Application Volume• Applications Filed to Date: 1438• Exemption Approvals to Date: 103• Applications Pending to Date: 104• Pending apps requesting exemption : 5• Approx. 7% of mercantile applications have received exemptions

* As of 11/7/12

2009 2010 2011 20120

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Mercantile Applications - total

application filedexemptions