Table 2. Illustrative Example of Calculating Required Energy Savings

CALENDAR YEAR	A RETAIL SALES (kWh)	B ENERGY EFFICIENCY STANDARD	C REQUIRED CUMULATIVE ENERGY SAVINGS (B of current year × A of prior year)
2010	100,000,000		0
2011	100,750,000	1.25%	1,250,000
2012	101,017,500	3.00%	3,022,500
2013	101,069,925	5.00%	5,050,875
2014	100,915,646	7.25%	7,327,570
2015	100,821,094	9.50%	9,586,986
2016	100,517,711	12.00%	12,098,531
2017	100,293,499	14.50%	14,575,068
2018	100,116,043	17.00%	17,049,895
2019	99,986,628	19.50%	19,522,628
2020	99,902,384	22.00%	21,997,058

C.      An affected utility’s measured reductions in peak demand resulting from cost-effective demand response and load man- agement programs may comprise up to two percentage points of the 22% energy efficiency standard, with peak demand reduction capability from demand response converted to an annual energy savings equivalent based on an assumed 50% annual load factor. The credit for demand response and load management peak demand reductions shall not exceed 10% of the energy efficiency standard set forth in subsection (B) for any year. The measured reductions in peak demand occurring during a calendar year after the effective date of this Article may be counted for that calendar year even if the demand response or load management program resulting in the reduc- tions was implemented prior to the effective date of this Arti- cle.

D.      An affected utility’s energy savings resulting from DSM energy efficiency programs implemented before the effective date of this Article, but after 2004, may be credited toward meeting the energy efficiency standard set forth in subsection

Corporation Commission – Fixed Utilities

(B). The total energy savings credit for these pre-rules energy efficiency programs shall not exceed 4% of the affected util- ity’s retail energy sales in calendar year 2005. A portion of the