Definitions

PURPOSE: This rule defines terms used in the rules comprising 4 CSR 240-22—Electric Utility Resource Planning. (1) Acknowledgment is an action the commission may take with respect to the officially adopted resource acquisition strategy or any element of the resource acquisition strategy including the preferred resource plan. Acknowledgement means that the commission finds the preferred resource plan, resource acquisition strategy, or the specified element of the resource acquisition strategy to be reasonable at a specific date, typically the date of the filing of the utility’s Chapter 22 compliance filing or the date that acknowledgment is given. Acknowledgment may be given in whole, in part, or not at all. Acknowledgment shall not be construed to mean or constitute a finding as to the prudence, pre-approval, or prior commission authorization of any specific project or group of projects. (2) Annual update filing means the annual update report prepared by the utility in advance of the annual update workshop and the summary report prepared by the utility following the workshop as referenced in 4 CSR 240-22.080(3). (3) Candidate resource options are the potential demand-side resource options pursuant to 4 CSR 240-22.050(6) and the potential supply-side resource options pursuant to 4 CSR 240-22.040(4) that advance to be included in one (1) or more alternative resource plans. (4) Capacity means the maximum capability to continuously produce and deliver electric power via supply-side resources or the avoidance of the need for this capability by demand-side resources. (5) Coincident demand means the hourly demand of a component of system load at the hour of system peak demand within a specified interval of time. (6) Concern means concerns with the electric utility’s compliance with the provisions of this chapter, any major concerns with the methodologies or analyses required to be performed by this chapter, and anything that, while not rising to the level of a deficiency, may prevent the electric utility’s resource acquisition strategy from effectively fulfilling the objectives of Chapter 22. (7) Contingency resource plan means an alternative resource plan designed to enhance the utility’s ability to respond quickly and appropriately to events or circumstances that would render the preferred resource plan obsolete. (8) Critical uncertain factor is any uncertain factor that is likely to materially affect the outcome of the resource planning decision. (9) Deficiency means deficiencies in the electric utility’s compliance with the provisions of this chapter, any major deficiencies in the methodologies or analyses required to be performed by this chapter, and anything that would cause the electric utility’s resource acquisition strategy to fail to meet the requirements identified in Chapter 22. (10) Demand means the rate of electric power use measured in kilowatts (kW). (11) Demand-side program means an organized process for packaging and delivering to a particular market segment a portfolio of end-use measures that is broad enough to include at least some measures that are appropriate for most members of the target market segment. (12) Demand-side rate means a rate structure for retail electric service designed to reduce the net consumption or modify the time of consumption of a customer rate class. (13) Demand-side resource is a demand-side program or a demand-side rate conducted by the utility to modify the net consumption of electricity on the retail customer’s side of the meter. A load-building program or rate is not a demand-side resource. (14) Describe and document refers to the demonstration of compliance with each provision of this chapter. Describe means the provision of information in the technical volume(s) of the triennial compliance filing, in sufficient detail to inform the stakeholders how the utility complied with each applicable requirement of Chapter 22, why that approach was chosen, and the results of its approach. The description in the technical volume(s), including narrative text, graphs, tables, and other pertinent information, shall be written in a manner that would allow a stakeholder to thoroughly assess the utility’s resource acquisition strategy and each of its components. Document means the provision of all of the supporting information relating to the filed resource acquisition strategy pursuant to 4 CSR 240-22.080(11). (15) Distributed generation means a gridconnected electric generation system that is sized based on local load requirements and distributed primarily to the local load. (16) Electric utility or utility means any electrical corporation as defined in section 386.020, RSMo, which is subject to the jurisdiction of the commission. (17) End-use energy service or energy service means the specific need that is served by the final use of energy, such as lighting, cooking, space heating, air conditioning, refrigeration, water heating, or motive power. (18) End-use measure means an energy-efficiency measure or an energy-management measure. (19) Energy means the total amount of electric power that is generated or used over a specified interval of time measured in kilowatt-hours (kWh). (20) Energy-efficiency measure means any device, technology, or operating procedure that makes it possible to deliver an adequate level and quality of end-use energy service while using less energy than would otherwise be required. (21) Energy-management measure means any device, technology, or operating procedure that makes it possible to alter the time pattern of electricity usage so as to require less generating capacity or to allow the electric power to be supplied from more fuel-efficient generating units. Energy-management measures are sometimes referred to as demandresponse measures. (22) Expected cost of an alternative resource plan is the statistical expectation of the cost of implementing that plan, contingent upon the uncertain factors and associated probabilities. The utility shall consider probable environmental costs as well as direct utility costs in its assessment of alternative resource plans. (23) Expected unserved hours means the statistical expectation of the number of hours per year that a utility will be unable to supply its native load without importing emergency power. (24) Historical period shall be the ten (10) most recent years or the period of time used as the basis of the utility’s forecast, whichever is longer. (25) Implementation period means the time interval between the triennial compliance filings required of each utility pursuant to 4 CSR 240-22.080. (26) Implementation plan means descriptions and schedules for the major tasks necessary to implement the preferred resource plan over the implementation period. (27) Information means any fact, relationship, insight, estimate, or expert judgment that narrows the range of uncertainty surrounding key decision variables or has the potential to substantially influence or alter resource-planning decisions. (28) Legal mandates include applicable state and federal executive orders, legislation, court decisions, and applicable state and federal administrative agency orders, rules, and regulations affecting electric utility cost recovery mechanisms, loads, resources, or resource plans. (29) Levelized cost means the dollar amount of a fixed annual payment for which a stream of those payments over a specified period of time is equal to a specified present value based on a specified rate of interest. (30) Life-cycle cost means the present worth of costs over the lifetime of any device or means for delivering end-use energy service. (31) Load-building program means an organized promotional effort by the utility to persuade energy-related decision-makers to choose electricity instead of other forms of energy for the provision of energy service or to persuade existing customers to increase their use of electricity, either by substituting electricity for other forms of energy or by increasing the level or variety of energy services used. This term is not intended to include the provision of technical or engineering assistance, information about filed rates and tariffs, or other forms of routine customer service. (32) Load impact means the change in energy usage and the change in diversified demand during a specified interval of time due to the implementation of a demand-side resource. (33) Load profile means a plot of hourly demand versus chronological hour of the day from the hour ending 1:00 a.m. to the hour ending 12:00 midnight. (34) Load-research data means major class level average hourly demands (kWhs per hour) derived from the metered instantaneous demand for each customer in the loadresearch sample. (35) Long run means an analytical framework within which all factors of production are variable. (36) Lost revenues means the reduction between rate cases in billed demand (kW) and energy (kWh) due to installed end-use measures, multiplied by the fixed-cost margin of the appropriate rate component. (37) Major class is a cost-of-service class of the utility. (38) Market imperfection means any factor or situation that contributes to inefficient energy-related choices by decision-makers, including at least: (A) Inadequate information about costs, performance, and benefits of end-use measures; (B) Inadequate marketing infrastructure or delivery channels for end-use measures; (C) Inadequate financing options for enduse measures; (D) Mismatched economic incentives resulting from situations where the person who pays the initial cost of an efficiency investment is different from the person who pays the operating costs associated with the chosen efficiency level; (E) Ineffective economic incentives when decision-makers give low priority to energyrelated choices because they have a shortterm ownership perspective or because energy costs are a relatively small share of the total cost structure (for businesses) or of the total budget (for households); or (F) Inefficient pricing of energy supplies. (39) Market segment means any subgroup of utility customers (or other energy-related decision-makers) which has some or all of the following characteristics in common: they have a similar mix of end-use energy service needs, they are subject to a similar array of market imperfections that tend to inhibit efficient energy-related choices, they have similar values and priorities concerning energyrelated choices, or the utility has access to them through similar channels or modes of communication. (40) Maximum achievable potential means energy savings and demand savings relative to a utility’s baseline energy forecast and baseline demand forecast, respectively, resulting from expected program participation and ideal implementation conditions. Maximum achievable potential establishes a maximum target for demand-side savings that a utility can expect to achieve through its demand-side programs and involves incentives that represent a very high portion of total program costs and very short customer payback periods. Maximum achievable potential is considered the hypothetical upper-boundary of achievable demand-side savings potential, because it presumes conditions that are ideal and are not typically observed. (41) Nominal dollars means future or thencurrent dollar values that are not adjusted to remove the effects of anticipated inflation. (42) Participant means an energy-related decision-maker who implements one (1) or more end-use measures as a direct result of a demand-side program. (43) Planning horizon means a future time period of at least twenty (20) years’ duration over which the costs and benefits of alternative resource plans are evaluated. (44) Plot means a graphical representation to present data. Each plot shall be labeled as a stand-alone figure, whose axes shall be labeled with units. The data presented in each plot also shall be provided in tabular form in the technical volumes and in workpapers. Data tables will be labeled, including the identification of the corresponding plot. The plots and data tables shall be numbered, referenced, and explained in the text of the technical volumes and in workpapers. (45) Potential resource options are all of the resources in the comprehensive set of demand-side resources that shall be considered pursuant to 4 CSR 240-22.050(1) and in the comprehensive set of supply-side resources that shall be considered pursuant to 4 CSR 240-22.040(1). (46) Preferred resource plan means the resource plan that is contained in the resource acquisition strategy that has most recently been adopted by the utility decision-maker(s) for implementation by the electric utility. (47) Probable environmental cost means the expected cost to the utility of complying with new or additional environmental legal mandates, taxes, or other requirements that, in the judgment of the utility decision-makers, may be imposed at some point within the planning horizon which would result in compliance costs that could have a significant impact on utility rates. (48) Public counsel means the public counsel of the state of Missouri or their designated representative. (49) Realistic achievable potential means energy savings and demand savings relative to a utility’s baseline energy forecast and baseline demand forecast, respectively, resulting from expected program participation and realistic implementation conditions. Realistic achievable potential establishes a realistic target for demand-side savings that a utility can expect to achieve through its demand-side programs and involves incentives that represent a moderate portion of total program costs and longer customer payback periods when compared to those associated with maximum achievable potential. (50) Renewable energy means electricity generated from a source that is classified as a renewable energy source under a state or federal renewable energy standard to which the utility is subject. (51) Resource acquisition strategy means a preferred resource plan, an implementation plan, a set of contingency resource plans, and the events or circumstances that would result in the utility moving to each contingency resource plan. It includes the type, estimated size, and timing of resources that the utility plans to achieve in its preferred resource plan. (52) Resource plan means a particular combination of demand-side and supply-side resources to be acquired according to a specified schedule over the planning horizon. (53) Resource planning means the process by which an electric utility evaluates and chooses the appropriate mix and schedule of supply-side, demand-side, and distribution and transmission resource additions and retirements to provide the public with an adequate level, quality, and variety of end-use energy services. (54) RTO/ISO means Regional Transmission Organization or independent transmission system operator as defined in the Federal Energy Regulatory Commission (FERC) Order 200 and subsequent FERC orders. (55) Special contemporary issues means a written list of issues contained in a commission order with input from staff, public counsel, and intervenors that are evolving new issues, which may not otherwise have been addressed by the utility or are continuations of unresolved issues from the preceding triennial compliance filing or annual update filing. Each utility shall evaluate and incorporate special contemporary issues in its next triennial compliance filing or annual update filing. (56) Stakeholder group means— (A) Staff, public counsel, and any person or entity granted intervention in a prior Chapter 22 proceeding of the electric utility. Such persons or entities shall be a party to any subsequent related Chapter 22 proceeding of the electric utility without the necessity of applying to the commission for intervention; and (B) Any person or entity granted intervention in a current Chapter 22 proceeding of the electric utility. (57) Subjective probability means the judgmental likelihood that the outcome will actually occur. (58) Supply-side resource or supply resource means any device or method by which the electric utility can provide to its customers an adequate level and quality of electric power supply. (59) Technical potential means energy savings and demand savings relative to a utility’s baseline energy forecast and baseline demand forecast, respectively, resulting from a theoretical construct that assumes all feasible measures are adopted by customers of the utility regardless of cost or customer preference. (60) Total resource cost test is a test of the cost-effectiveness of demand-side programs or demand-side rates that compares the sum of avoided utility costs plus avoided probable environmental costs to the sum of all incremental costs related to the end-use measures that are implemented due to the program or related to the rates (including both utility and participant contributions), plus utility costs to administer, deliver, and evaluate each demand-side program or demand-side rate to quantify the net savings obtained by substituting the demand-side program or demand-side rate for supply-side resources. (61) Uncertain factor means any event, circumstance, situation, relationship, causal linkage, price, cost, value, response, or other relevant quantity which can materially affect the outcome of resource planning decisions, about which utility planners and decisionmakers have incomplete or inadequate information at the time a decision must be made. (62) Utility costs are the costs of operating the utility system and developing and implementing a resource plan that are incurred and paid by the utility. On an annual basis, utility cost is synonymous with utility revenue requirement. (63) The utility cost test is a test of the costeffectiveness of demand-side programs or demand-side rates that compares the avoided utility costs to the sum of all utility incentive payments, plus utility costs to administer, deliver, and evaluate each demand-side program or demand-side rate to quantify the net savings obtained by substituting the demandside program or demand-side rate for supplyside resources. (64) Utility discount rate means the post-tax rate of return on net investment used to calculate the utility’s annual revenue requirements. (65) Weather measure means a function of daily temperature data that reflects the observed relationship between electric load and temperature. AUTHORITY: sections 386.040, 386.250, 386.610, and 393.140, RSMo 2000.* This rule originally filed as 4 CSR 240-22.020. Original rule filed June 12, 1992, effective May 6, 1993. Amended: Filed Oct. 25, 2010, effective June 30, 2011. Moved to 20 CSR 4240-22.020, effective Aug. 28, 2019. *Original authority: 386.040, RSMo 1939; 386.250, RSMo 1939, amended 1963, 1967, 1977, 1980, 1987, 1988, 1991, 1993, 1995, 1996; 386.610, RSMo 1939; and 393.140, RSMo 1939, amended 1949, 1967.