Self Direct and Opt-Out Programs
Some large customers seek to opt out of utility energy efficiency programs, asserting that they have already done all the energy efficiency that is cost effective; however, this is seldom the case. This situation arises from capital allocation decisions (e.g., very short-term payback requirements) that leave many cost-effective energy efficiency opportunities on the table. Failure to include large customer programs in an energy efficiency portfolio will increase the cost of the resource for all customers and reduce the benefits. In effect, allowing the large customers to opt out will force other consumers to subsidize them. While the ideal solution is for utilities to offer programs that are responsive to the needs of these large consumers, research suggests that this does not always happen. An alternative may be offering large customers the option of self-directing their energy efficiency program dollars. This option provides a path to include large customer energy efficiency in portfolio of savings at the same time as it encourages utilities to improve program offerings to become more responsive to all customers’ needs.Alabama does not have self-direct or opt-out provisions for large customers.
Last updated: July 2017
Alaska does not have self-direct or opt-out provisions for large customers.
Last updated: July 2017
All the major electric utilities offer a self-direct option for large customers. Arizona Public Service (APS) states that large customers using at least 40 million kWh per calendar year can elect to self-direct energy efficiency funds. Customers must notify APS each year if they wish to participate, after which 85% of the customer's demand-side management contribution will be reserved for future energy efficiency projects. Projects must be completed within two years. Self-direction funds are paid once per year once the project is completed and verified by APS. To be eligible for self-direction under Tucson Electric Power, a customer must use a minimum of 35 million kWh per calendar year. The Salt River Project makes self-direction available only to very large customers using more than 240 million kWh per year. For all utilities, a portion of the funds they would have otherwise contributed to energy efficiency is retained to cover the self-direction program administration, management, and evaluation costs.
Last Updated: July 2017
An Arkansas non-residential customer of an electric or natural gas public utility with a minimum peak electrical demand of greater than one megawatt (1 MW) at that location based upon the prior 12 months billing history at the time of the application, or have an annual natural gas consumption of greater than seventy thousand MMBtu or Mcf (70,000 MMBtu or Mcf) at that location may opt out. Customers that participate in a utility's EE program may not request a Certificate for five years following the customer's participation in that utility's EE program.
A Self-Direct customer must successfully demonstrate that it: (a) has implemented or invested in a measure(s) within ten years prior to the date the customer files its request for a Certificate with the Commission; (b) will implement or invest in a measure(s) within the duration of the applicable public utility’s energy efficiency (EE) plan approved by the Commission. A Certification of Exemption is granted for periods of three years. An Opt-out customer falling within sectors 31 through 33 of the North American Industry Classification System need only submit a one-time Act 253 Notice and Affidavit for Certificate of Exemption, which remains in effect until withdrawn by the customer.
Last Updated: June 2020
California does not have structures in place for large customers to self-direct energy efficiency efforts or to opt-out from funding energy efficiency programs.
Last reviewed: August 2020
Self-direct programs for large customers are offered by Xcel Energy and Black Hills.
Xcel's self-direct program is available to commercial and industrial electric customers who have an aggregated peak load of at least 2 MW in any single month, an aggregated annual energy consumption of at least 10 GWh, and who are not allowed to participate in other conservation products offered by the company. Rebates are paid based on actual savings from a project, up to $525 per customer kW or $0.10 per kWh; rebates are given for either peak demand or energy savings but not both and are limited to 50% of the incremental cost of the project. Xcel uses raw monitoring results and engineering calculations to demonstrate actual energy and demand savings based on monitoring results.
To participate in the C&I Self-Direct program offered by Black Hills, customers must have an aggregated peak load greater than 1 MW in any single month and aggregated annual energy usage of 5,000 MWh. Rebates and savings are calculated on a case-by-case basis; rebate values are calculated as either 50% of the incremental cost of the project or $0.30 per kWh savings, whichever is lower.
More information on large customer self-direct programs can be found in the ACEEE report, Follow the Leaders: Improving Large Customer Self-Direct Programs.
Last reviewed: July 2019
Connecticut does not allow for large C&I customers to self-direct the funds they would have paid for energy efficiency, or to opt-out entirely.
Since 2011, Connecticut has managed a Behavioral-Based Strategies program for residential customers. The program’s objective is to make customers aware of how much energy they consume and to empower them to adopt energy-efficient technologies and behaviors. The program’s primary information channel to residential customers is a behavioral-based communication, printed or electronic, that details how much energy an individual customer consumes, how they compare to other customers, and what steps they can take to become more energy efficient. Since its inception, the program has had an opt-out option for customers who do not wish to participate.
Last reviewed: June 2020
Delaware does not allow for large customers to self-direct the funds they would have paid for energy efficiency, nor to opt-out entirely from participating in energy efficiency programs.
Last reviewed: July 2019
DC does not allow for large customers to self-direct the funds they would have paid for energy efficiency, nor to opt-out entirely from participating in energy efficiency programs.
Last reviewed: July 2019
Florida does not allow for large customers to self-direct the funds they would have paid for energy efficiency, nor to opt-out entirely from participating in energy efficiency programs.
Last updated: June 2020
Georgia does not allow for large customers to self-direct the funds they would have paid for energy efficiency, nor to opt-out entirely from participating in energy efficiency programs.
Last updated: July 2018
Hawaii does not allow for large customers to self-direct the funds they would have paid for energy efficiency, nor to opt-out entirely from participating in energy efficiency programs.
Last updated: August 2018
Idaho Power offers its largest customers an option to self-direct the energy efficiency funds that are collected through a customer bill rider. Customers have three years to complete projects and have all the funds available to fund up to 100% of project costs. Self-direct projects are subject to the same criteria as projects in other efficiency programs. Self-direct options are only available to Rate Schedule 19 and special contract customers. Neither Avista nor PacifiCorp operate self-direct programs in Idaho.
In the past, Avista has not employed opt-out or self-direct programs. PacifiCorp does not have opt-out provisions for customers but has negotiated special contracts, which are approved by the Commission on a case-by-case basis.
PacifiCorp does not conduct evaluations for savings on special contracts. Idaho Power has all its energy efficiency programs evaluated on a periodic basis of around 2-3 years, including both process and impact evaluations. Customers participating in the self-directed funds option are subject to the same evaluation process as participants in the cost-share option, which may be assessed internally or by third-party contractors (Idaho Power’s Demand Side Management Report: Supplement 2; Evaluation, page 1).
More information on large customer self-direct programs can be found in the ACEEE report, Follow the Leaders: Improving Large Customer Self-Direct Programs.
Last reviewed: July 2019
Electric customers with greater than 10 MW of demand in any 30-minute period are exempt from programs.
A self-direct option is available statewide for natural gas customers who meet the following criteria: annual natural gas usage in the aggregate of 4 million therms or more within the service territory of the affected gas utility, or with aggregate usage of 8 million therms or more in this state and using natural gas as feedstock to the extent such annual feedstock usage is greater than 60% of the customer's total annual usage of natural gas. Qualified natural gas customers put money into an account of their own that amounts to the lesser of 2% of the customer's cost of natural gas or $150,000. The funds are required to be used for energy efficiency projects. No evaluation is required.
Last reviewed: July 2019
The opt-out applies to the five investor-owned electric utilities. Eligible customers are those that operate a single site with at least one meter constituting more than 1 MW demand for any one billing period within the previous 12 months to opt out of programs. Documentation is not required. No evaluation is conducted. About 70%-80% of eligible load has opted out.
Last Updated: October 2018
Iowa Code § 476.6(15)(a)(1)(b) allows customers to request an exemption if the electric utility's RIM test is less than one. The exemption applies only to electric energy efficiency, not demand response or natural gas efficiency. "The board shall allow a customer of an electric utility that is required to be rate-regulated to request an exemption from participation in any five-year energy efficiency plan offered by an electric utility if the energy efficiency plan and demand response plan, at the time of approval by the board have a cumulative rate-payer impact test result of less than one. "
Last reviewed: November 2020
There are no self-direct or opt-out programs in Kansas.
Duke Energy offers a self-direct program option only to customers that take transmission service on rate TT, thus are described as having “energy intensive processes” and are therefore eligible under statute for such a program. Customers in a self-direct program do not pay any of the cost of the Duke Energy efficiency programs and are not eligible to join them. Duke does not measure or verify the savings of a self-direct program.
Industrial rate class customer statewide are eligible to opt out. About 80% of eligible load has opted out, with the remaining 20% made up primarily of TVA customers. Documentation is not required.
Last Updated: December 2017
There are no self-direct or opt-out programs in Louisiana.
Pursuant to Title 35-A MRSA §10110 (6), large electricity customers receiving service at transmission and subtransmission (T&ST) voltage levels are not required to pay in rates any amount associated with any procurement of energy efficiency resources by transmission and distribution utilities. Consequently, these customers are not eligible for incentives that leverage the Electric Efficiency Procurement funds through the Efficiency Maine Trust. Instead, electric efficiency incentives for these customers are funded with Forward Capacity Market (FCM) revenues, Maine Power Reliability Program (MPRP) Settlement, or RGGI funds.
Until recently, Maine’s largest natural gas customers, whose usage exceeded 1 million centum cubic feet (CCF) of natural gas annually, were exempt from contributing to the Natural Gas Efficiency Procurement; as such, they were not eligible for the Trust’s natural gas efficiency programs. However, in the spring of 2017, the Legislature amended the law once again, codifying the inclusion of large, non-generator, users. It maintained a limited exclusion for large manufacturers, agricultural, and aquaculture businesses; from FY2018 forward, these customers pay the natural gas assessment on their first 1 million CCF of usage and are eligible for the Trust’s natural gas efficiency programs. (See 35-A MRSA §10111(2)).
More information on large customer self-direct programs can be found in the ACEEE report, Follow the Leaders: Improving Large Customer Self-Direct Programs.
Last reviewed: May 2022
There are no self-direct or opt-out provisions available to utilities in Maryland.
Last updated: July 2018
Massachusetts does not have self-direct or opt-out provisions for large customers.
Last reviewed: August 2020
Self-direct is available statewide. Customers must have had an annual peak demand in the preceding year of at least 1 megawatt in the aggregate at all sites. The customer may use the amount of funds that would otherwise have been paid to the utility provider for energy efficiency programs. They must, however, submit the portion of the EE funds that would have been collected and used for low-income programs to their utility provider. They then calculate the energy savings achieved and provide it to their utility provider. In 2018, there were 15 customers self-directing.
Last reviewed: August 2020
Minnesota offers a self-direct option, with a full exemption from assigned CRM fees, to customers with 20 MW average electric demand or 500,000 MCF of gas consumption. Customers must also show that they are making "reasonable" efforts to identify or implement energy efficiency and that they are subject to competitive pressures that make it helpful for them to be exempted from the CRM fees. Participating customers must submit new reports every five years to maintain exempt status. The utility is not involved in self-direct program administration; the state Department of Commerce functions as the manager of self-direct accounts and is the arbiter of whether a company qualifies for self-direct and is satisfying its obligations.
Commercial gas customers served by a gas utility with less than 600,000 gas customers in Minnesota that do not meet either threshold may opt-out if they can demonstrate that they have acquired or can reasonably acquire the ability to bypass use of the utility's gas distribution system. They must file a report every five years for up to ten years demonstrating that they are continuing to make reasonable efforts towards energy efficiency improvements. If the majority ownership of the facility changes, that period can be extended another ten years. Minnesota Department of Commerce staff will evaluate their spending and savings claims. As of July 2019, 56 customers currently self direct energy efficiency fund, accounting for 13% of eligible electric load and 22% of natural gas volume.
Last reviewed: September 2020
There are no self-direct or opt-out programs in Mississippi.
Last updated: July 2020
4 CSR 240-20.094(7)(A) states that, any customer meeting one or more of the following criteria shall be eligible to opt-out of participation in utility-offered demand-side programs: (1.) The customer has one or more accounts within the service territory of the electric utility that has a demand of 5,000 kW or more; (2.) The customer operates an interstate pipeline pumping station; or (3), The customer has accounts within the service territory of the electric utility that have, in aggregate across its accounts, a coincident demand of 2,500 kW or more in the previous 12 months, and the customer has a comprehensive demand-side or energy efficiency program and can demonstrate an achievement of savings at least equal to those expected from utility-provided demand-side programs.
Customers opting out under the 2,500 kW/comprehensive demand-side management plan category must submit their plan to the Missouri Public Service Commission for review. Customers wishing to opt out under either of the other categories simply provide notification to their utilities that they wish to opt out. Staff of the Missouri Public Service Commission perform a desk audit of all claimed savings and may perform a field audit.
Last reviewed: July 2019
Self-direct is available statewide in regulated utility service territory. About 90% of the population is served by NorthWestern Energy. NorthWestern Energy allows customers with demand larger than 1 MW to channel their cost-recovery mechanism (CRM) funds to an escrow account that repays them on a quarterly basis for completed self-direct projects. The annual maximum contribution is $500,000, and companies have two years to use their funds before they are returned to the larger pool of CRM revenues. NorthWestern administers the funds but provides no measurement or verification. Self-direct customers file annual reports with the Montana Department of Revenue. The department publishes these reports, and a public "challenge" process is provided for as the only scrutiny or review. About 60 customers use self-direct, approximately 89% of eligible large customers.
More information on large customer self-direct programs can be found in the ACEEE report, Follow the Leaders: Improving Large Customer Self-Direct Programs.
Last Updated: July 2018
There are no self-direct or opt-out programs in Nebraska.
Last updated: July 2017
There are no self-direct or opt-out provisions in Nevada.
Last updated: July 2018
New Hampshire does not have self-direct or opt-out programs.
Last reviewed: July 2022
There are no opt-out programs in New Jersey.
A Societal Benefits Credit (SBC) program, with elements of a self-direct program, allows commercial and industrial (C&I) ratepayers to establish a credit against their SBC contributions. No company has implemented an SBC program to date. The credit would be equal to one-half of the costs incurred for the purchase and installation of Clean Energy Program-supported energy efficiency products and services in the preceding calendar year, and up to 50% of the SBC contributions for a given year, per utility account.
The Large Energy Users Program is designed to promote self-investment in energy efficiency and combined heat and power projects with incentives up to $4 million for eligible projects in the states' largest commercial and industrial facilities.
Last reviewed: June 2020
A self-direct option is offered statewide in the territories of three investor-owned utilities. Eligible customers must have electricity consumption greater than 7,000 MWh per year. Participants can receive credit for up to 70% of the annual energy efficiency rider. Self-direct customers provide their own engineering analysis and must meet the same total resource cost test as all the other industrial and commercial offerings. The customer must demonstrate to the reasonable satisfaction of the utility that its expenditures are cost-effective. Eligible expenditures must have a simple payback period of more than one year but less than seven years.
There is no provision for large customers to opt out entirely from paying for energy efficiency programs.
Last reviewed: November 2024
In an order issued February 26, 2015 (REV Order), the Commission required Staff to work with the utilities and large industrial customers to develop Self-Direct Program Guidelines to be filed by August 3, 2015. The order also required electric utilities to implement a self-direct program in accordance with the Self-Direct Program Guidelines no later than January 1, 2017.
The Self-Direct Program is available to all individual customers with a 36-month average demand of 2 MW or greater. It is also available to customers with an aggregated 36-month average demand of 4 MW or greater, as long as one or more of the accounts being aggregated by the customer has at least a 36-month average demand of 1 MW. To be eligible to participate in the upcoming three-year cycle, current participants in the Self-Direct Program must have accessed 100% of any funds rolled over from the previous cycle, at least 45% of the funds from their ESA by September 30th of the third year of the current cycle, and have achieved savings at or below the dollar per MWh to which the participant committed at the time of enrollment.
The initial 3-year cycle for the Self-Direct programs ran from 2017 through 2019. Enrollment in the Self-Direct programs was generally minimal and, therefore, in a March 2018 order, the Commission allowed each utility to determine whether to continue to offer its large energy-user customers a Self-Direct Program.
Last reviewed: August 2020
In North Carolina, all industrial class electric customers are eligible for opt-out. By Commission Rule R8-69 (d), all large commercial class customers are eligible for opt-out provided they use more than 1 million kWhs and if, at their own expense, they have implemented in the past or plant to implement in the future alternative measures in accordance with stated, quantifiable goals. Approximately 8,000 electric customers and 50% of the electric load is opted out.
Last reviewed: July 2019
There are no self-direct or opt-out programs in North Dakota.
Self-direct options are available for large customers in Ohio. Under SB 221, a mercantile customer, which is a commercial or industrial customer that consumes more than 700,000 kWh per year, may enter into a special arrangement with an electric utility to integrate the customer’s demand reduction, demand-response, or energy efficiency programs with those of the electric utility. If the specified reduction levels are met, the customer can request exemption from the cost recovery mechanism.
One of the state’s utilities, AEP, has a self-direct program that offers customers an incentive for previously implemented energy efficiency measures. The one-time incentive is 75% of what the measure would cost under AEP programs and has a maximum limit of $225,000. Projects must have been implemented after Jan. 1, 2008, and must produce 100% of stated energy savings and/or peak demand reductions over a five-year period. Customers taking the incentive are still eligible to participate in the utility's other energy efficiency programs because they are still paying the cost-recovery mechanism (CRM) fee.
Last Updated: September 2016
All transportation-only gas customers are eligible to opt-out, however for program years 2020-2022 commercial customers are allowed to participate (Cause PUD 201900021 and PUD 201900060) . For electric utilities, any customer with consumption greater than 15 million kWhs annually may opt out. Combined meters may meet the threshold. Approximately 90% of eligible customers opt-out, representing about 30% of total load.
Last Updated: September 2020
Senate Bill 1149 directed Oregon's two largest utilities, Portland General Electric and Pacific Power, to collect a public purpose charge from their customers to fund energy conservation and renewable projects in the state. However, large electric consumer sites that used over 8,760,000 kWh in the prior year may be eligible for the Large Electric Consumer Public Purpose Program, also known as the Self-Direct Program, which allows them to self-direct the conservation and renewable portions of their public purpose charge rather than pay the utility directly.
The Oregon Department of Energy reviews applications and approves sites that meet eligibility criteria to become Self-Direct consumers. Certified sites can submit conservation and renewable project applications to ODOE through the interactive LECPPP website. ODOE staff review applications and pre-certify eligible conservation or renewable project applications. Sites then spend their own funds to build pre-certified projects. Once the project is complete, they submit an application for credit to ODOE. ODOE reviews and approves the eligible project costs, which include a small fee paid to ODOE for program administration. Certified project costs are then added to the conservation or renewable credit balance, and the credits do not expire.
Each month when a site has a conservation and renewable credit balance, they can offset the monthly conservation and renewable portion of the Public Purpose Charge, meaning they do not pay the utility that portion of the PPC. The available credit balance is reduced by the monthly conservation and renewable offset amount. Certified conservation projects and Green Tags, also known as Renewable Energy Certificates, increase the site credit while monthly offsets reduce them.
Two former Pacific Power sites in Emerald People's Utility District (EPUD), a COU utility, territory participate in a self direction program. But no COUs including EPUD are subject to Public Purpose Charge requirements. Portland General Electric and Pacific Power cover approximately 80% of the electric customers in Oregon.
Participants in the three participating programs have the proposed projects technically reviewed by the Oregon Department of Energy. In Portland General Electric and Pacific Power programs, the expenditures toward qualified projects are used as credit to offset future Public Purpose Charges. The credit is applied on-bill. These funds are provided by check and/or on-bill. A technical review of claimed savings is conducted by the Oregon Department of Energy prior to construction of a project. A sampling of projects are reviewed for actual performance.
Eighty sites, or roughly one-third of eligible sites currently self-direct energy efficiency funds, accounting for about one-third of eligible load. Total savings for 2019 was 1,634,309 kWh
Last reviewed: June 2020
There are no self-direct or opt-out provisions in place.
Last reviewed: November 2024
There are no self-direct or opt-out programs in Rhode Island.
Industrial, manufacturing or retail commercial customers with 1,000,000 kWh annual usage or greater are eligible to opt-out. Self-certification only is required. Roughly 50% of eligible load is opted-out.
Last Updated: July 2016
There are no self-direct or opt-out programs in South Dakota.
There are no self-direct or opt-out programs in Tennessee.
In Texas, for-profit customers that take electric service at the transmission level are not allowed to participate in utilities' energy efficiency programming and therefore do not pay for it. Instead, industrial customers develop their own energy efficiency plans if desired and work with third-party providers to implement and finance energy efficiency investments. There is no measurement or monitoring of the investments. Please see Energy Efficiency Rule, section W.
More information on large customer self-direct programs can be found in the ACEEE report, Follow the Leaders: Improving Large Customer Self-Direct Programs.
Last Updated: July 2017
Rocky Mountain Power's self-direct program is a project-based rate credit program that offers up to an 80% credit of eligible project costs back to customers as a rate credit against the 3.7% cost-recovery mechanism (CRM) charge all customers pay. Customers earn a credit up to 100% of their CRM charge but pay a flat $500/project administrative fee for each self-directed project. Customers can choose to engage in self-direct and more traditional energy efficiency programs simultaneously, provided the different programs are used to deploy different projects. Rocky Mountain Power may qualify participants, at its discretion, based on criteria the company considers necessary to ensure the effective operation of the measures and utility system. Criteria may include but will not be limited to cost effectiveness.
Dominion does not offer a self-direct program, but a custom rebate program exists.
More information on large customer self-direct programs can be found in the ACEEE report, Follow the Leaders: Improving Large Customer Self-Direct Programs.
Last reviewed: November 2024
For electric energy efficiency, there are three self-direct options available statewide: SMEEP (Self-Managed Energy Efficiency Program), CCP (Customer Credit Program) and ESA (Energy Savings Accounts). SMEEP is also available for the one eligible gas customer.
The SMEEP options require prospective participants or their successors to have contributed $1.5 million to the Energy Efficiency Fund in 2008 or 2017 through the Efficiency Charge added on their electric costs to meet the requirements. Currently there are two customers in the program. Additionally, an eligible customer must commit to investing a minimum of $3 million over a three-year program cycle. For SMEEP electric, an eligible customer must demonstrate that it has a comprehensive energy management program with annual objectives or demonstrate that it has achieved certification of ISO standard 14001. They then provide a report to the PUC detailing the measures undertaken, estimated savings and related costs. These reports are then reviewed and approved by the PSB.
In addition, the Vermont PUC has established an option for eligible Vermont business customers to self-administer energy efficiency through the use of an Energy Savings Account (ESA) or the Customer Credit Program. These funds are still paid into the VEEUF and disbursed to the participants upon completion of an eligible energy efficiency measure. The ESA option allows Vermont businesses that pay an Energy Efficiency Charge (EEC) in excess of $5,000 total per year (or an average $5,000 total per year over three years) to use a portion of their EEC to support energy efficiency projects in their facilities. The ESA is run through the Efficiency Vermont program and related savings are reported and verified through the Savings Verification mechanism.
For CCP, eligible customers must be ISO 14001-certified and meet several conditions similar to Energy Star for industrial facilities. For natural gas energy efficiency, eligible only for transmission and industrial electric and natural gas ratepayers. A pilot program has been developed to allow customers selected through a competitive process to be able to self-direct a large portion of the funds collected through the electric EEC paid by that customer to both electric and thermal energy efficiency projects. This pilot is capped at $2 million annually.
Last reviewed: November 2024
The Virginia Clean Economy Act (2020) replaces a previous automatic opt-out for industrial customers above 500 kW with a process enabling industrial customers using more than 1 MW to opt out after demonstrating that they are achieving energy savings through their own energy efficiency measures. The VCEA directs the commission, no later than June 30, 2021, “to adopt rules or regulations (a) establishing the process for large general service customers to apply for such an exemption, (b) establishing the administrative procedures by which eligible customers will notify the utility, and (c) defining the standard criteria that shall be satisfied by an applicant in order to notify the utility, including means of evaluation measurement and verification and confidentiality requirements.”
Last Updated: December 2020
Washington State allows utilities to develop self-direct options for industrial and commercial customers, but of the investor-owned utilities, only Puget Sound Energy has developed a program. Puget Sound Energy's self-direct program is only available to industrial or commercial customers on electric rate specific rate schedules. The self-direct program operates on a 4-year cycle comprised of two phases: non-competitive and competitive. During the non-competitive phase, customers have exclusive access to their energy efficiency funds, which are the funds collected over the 4-year period. When this phase closes, any unused funds are pooled together and competitively bid on by the members of the self-directed program. Customers receive payment in the form of a check once the project is complete and verified. Participating customers do not receive any rate relief when they complete energy efficiency investments. 100% of projects are pre- and post-verified by the utility. This includes review and revision of savings calculations by the utility to determine incentive levels. The program is included in the third party evaluation cycle like all other utility conservation programs. As of July 2019, 29 of 37 self-direct customers were receiving incentives. These customers represented 84.6% of the qualifying load.
More information on large customer self-direct programs can be found in the ACEEE report, Follow the Leaders: Improving Large Customer Self-Direct Programs.
Last reviewed: July 2019
Opt out is developed individually by utilities. Customers with demand of 1 MW or greater may opt out. Participants must document that they have achieved similar/equivalent savings on their own in order to retain opt-out status. Claims of energy and/or demand reduction are certified to utilities with future evaluation by the Commission to take place in a later proceeding. The method has not been specified. Approximately 20 large customers have opted out.
Last Updated: October 2018
While self-direct is available, no customer has taken this option—all participate in Focus on Energy instead. For self-direct, the customer must meet statutory definition of a large energy customer: has a monthly demand of at least 1 MW or 10,000 decatherms and a monthly utility bill of at least $60,000. Statute says that a customer may deduct the amount of program funding from the amount they must contribute to Focus through their utility, if/when they receive Commission approval for that program. By administrative code, any proposals for a customer to run such a program require an M&V plan, must pass a cost-effectiveness screening, and set and measure performance goals.
More information on large customer self-direct programs can be found in the ACEEE report, Follow the Leaders: Improving Large Customer Self-Direct Programs.
Last reviewed: November 2024
Rocky Mountain Power offers a self-direct option for customers. The self-direct program is a project-based rate credit program that offers up to an 80% credit of eligible project costs back to customers as a rate credit against the 3.7% cost-recovery mechanism (CRM) charge all customers pay. Customers earn a credit up to 100% of their CRM charge but do pay a flat $500/project administrative fee for each self-directed project. Customers can choose to engage in self-direct and more traditional CRM programs simultaneously, provided the different programs are used to deploy different projects.
Last Updated: July 2016