Section R14-2-2510. Cost Recovery

A.      An affected utility may recover the costs that it incurs in plan- ning, designing, implementing, and evaluating a DSM pro- gram or measure or RET program or RET if the DSM program or measure or RET program or RET is all of the following:

1.        Approved by the Commission before it is implemented;

2.        Implemented in accordance with a Commission-approved program proposal or implementation plan; and

3.        Monitored and evaluated, pursuant to R14-2-2515.

B.       An affected utility shall monitor and evaluate each DSM pro- gram or measure and each RET program or RET, as provided in R14-2-2515.

C.      If an affected utility determines that a DSM program or mea- sure is not cost-effective or that a DSM program or measure or RET program or RET does not meet expectations, the affected utility shall include in its annual DSM progress report filed under R14-2-2509 a proposal to modify or terminate the DSM program or measure or RET program or RET.

D.      An affected utility shall recover its DSM and RET costs con- currently, on an annual basis, with the spending for DSM and RET programs, unless the Commission orders otherwise.

E.       An affected utility may recover costs from DSM funds for any of the following items, if the expenditures will enhance DSM or RET programs:

1.        Incremental labor attributable to DSM and RET develop- ment,

2.        A market study,

3.        A research and development project such as applied tech- nology assessment,

4.        Consortium membership, or

5.        Other items that are difficult to allocate to an individual DSM or RET program.

F.       The Commission may impose a limit on the amount of DSM funds that may be used for the items in subsection (E).

G.      If goods and services used by an affected utility for DSM or RET have value for other affected utility functions, programs, or services, the affected utility shall divide the costs for the goods and services and allocate funding proportionately.

H.      An affected utility shall allocate DSM and RET costs in accor- dance with generally accepted accounting principles.

I.        An affected utility, at its own initiative, may submit to the Commission twice-annual reports on the financial impacts of

its Commission-approved DSM and RET programs, including any unrecovered fixed costs and net lost income/revenue resulting from its Commission-approved DSM and RET pro- grams.

Historical Note

New Section made by final rulemaking at 17 A.A.R. 72, effective March 4, 2011 (Supp. 11-1).