TXU Electric TEEM C&I Standard Offer Pilot Program: Lessons Learned through Design and Implementation

Michael Conchilla and Dakers Gowans, Nexant, Inc.
John Hanel and Garrey Prcin, Oncor Group

Keywords

Abstract

In late 1999 / early 2000, TXU Electric launched its TEEM (Texas Energy Efficiency Markets) initiative that included two pilot programs: the Large Commercial and Industrial (C&I) Retrofit Standard Offer Program, and the Air Conditioner Distributor Program. These programs were launched in response to recently enacted state deregulation legislation (Senate Bill 7), and in preparation for the impending Public Utilities Commission of Texas Energy Efficiency Rule (§25.181) requiring investor-owned utilities to achieve a 10% reduction in system load growth through energy efficiency programs by January 1, 2004.

This paper focuses on the Large C&I Standard Offer Pilot Program. The program was intended to serve two key purposes: enable TXU Electric to learn about implementing a standard offer program in their service territory; and build market momentum before launching a full-scale program in 2002. The program, designed to minimize barriers to participation and simplify administration, was well received, with dozens of applications requesting more incentive funds than budgeted. TXU Electric refined the program to address the lessons learned during the pilot. The program eventually became the model for a Commission-approved program template, which today is the basis for a number of Texas investor-owned utility standard offer programs.

The paper discusses program design objectives and features; overall program results; the lessons learned through program implementation; the integration of those lessons into the design of TXU Electric’s full-scale 2002 program; and the program’s impact on statewide regulatory rulemaking, program design and implementation.