CDM Plan Submission and Review Criteria Rules
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1 Cnservatin First Framewrk LDC Tl Kit Final v4.0 January 17, 2018 CDM Plan Submissin and Review Rules 1) Purpse and definitins 1.1 These Rules set ut: a) the rles, respnsibilities and timing fr CDM Plan submissin; and b) the criteria applied t apprve a CDM Plan, and apply bth t initial CDM Plans and t amendments t CDM Plans. Nte: The prcess fr cmpleting the CDM Plan template is nt included in these Rules. 1.2 All terms nt defined in this CDM Plan Submissin and Review Rules that are defined in the Energy Cnservatin Agreement between the LDC and the IESO have the definitins given t them in the Energy Cnservatin Agreement. 2) Timelines fr review and decisin making n CDM Plans 2.1 The IESO will review and prvide the LDC with a decisin regarding apprval f their CDM Plan in accrdance with the timelines in Table 1. The IESO will endeavur t expedite apprvals f CDM Plans that are submitted jintly by the LDC with ther distributin cmpanies in rder t encurage cllabrative planning. Table 1: Timelines fr LDC CDM Plan review and ntice f decisin Number f LDCs included in CDM Plan Number f calendar days frm date f submissin that the IESO will ntify the LDC f decisin (Apprve/Apprve with cnditins/nt apprve)* LDC alne LDC and ne r mre ther distributin cmpanies 60 days 30 days * Subject t sectin 2 f Schedule B f the Energy Cnservatin Agreement. Where a calendar day falls n a weekend r hliday, the review cmpletin date will be the next business day. Page 1 f 9
2 Cnservatin First Framewrk LDC Tl Kit Final v4.0 January 17, Any request by the IESO fr additinal infrmatin during the review perid will cause the remaining perid fr decisin t be paused and the review perid shall resume at such time as the IESO cnsiders that the request has been satisfied by the LDC. 3) CDM Plan submissin and review prcess 3.1 The CDM Plan review prcess is set ut in Appendix A: LDC CDM Plan Review Prcess. 3.2 Once an Energy Cnservatin Agreement has been executed, the LDC will submit its first prpsed CDM Plan t: CDMPlans@ies.ca (r such ther address as the IESO may ntify the LDC) between Nvember 1, 2014 and n r befre May 1, The LDC may request amendments t its CDM Plan in accrdance with the prvisins f the Energy Cnservatin Agreement and, ther than as indicated in sectin 3.3 belw, such amendments will fllw the same prcess as set ut in these Rules except fr the timelines set ut in Table 1 f these Rules. The IESO will cnfirm receipt f the CDM Plan t LDC s CDM Plan cntact. 3.3 CDM Plan amendments that have been designated by the IESO as minr pursuant t Sectin 2 f Schedule B t the Energy Cnservatin Agreement may be undertaken in accrdance with the minr amendment prcess, if any, utlined by the IESO fr such minr amendments frm time t time. 3.4 All CDM Plans will use the CDM Plan Template apprved by the IESO. 4) LDC respnses t IESO requests fr additinal infrmatin 4.1 The IESO will use reasnable effrts t prvide the LDC with all requests fr clarificatins in a single batch in rder t streamline the review prcess. 5) Key cntact fr cmmunicatins thrughut CDM Plan review prcess 5.1 Each f the IESO and the LDC will designate a cntact persn with whm the IESO r LDC, as applicable, can cmmunicate with thrughut the CDM Plan review prcess. 5.2 Where the LDC is submitting a CDM Plan jintly with ther distributin cmpanies, and, in accrdance with Sectin 19.2 f the Energy Cnservatin Agreement, the participating distributin cmpanies have appinted ne amngst themselves t act as agent and have identified an individual representative f the agent, the LDC will prvide evidence f the Page 2 f 9
3 Cnservatin First Framewrk LDC Tl Kit Final v4.0 January 17, 2018 appintment f the agent and the IESO will treat the representative f the agent as the designated cntact persn. The designated cntact will cmmunicate with the IESO fr the purpse f the CDM Plan review n behalf f the parties that have submitted a single CDM Plan. Amng ther things, the designated cntact will be respnsible fr btaining and prviding infrmatin requested by the IESO n behalf f the multiple distributin cmpanies that jintly submitted a CDM Plan. 5.3 The IESO will prvide cpies f any decisins regarding apprval f the CDM Plan t the designated cntact and the cntact persn fr the LDC (if different frm the designated cntact). 6) CDM Plan review criteria The IESO will apprve a CDM Plan that meets all f the criteria set ut in Table 2 t the satisfactin f the IESO. Table 2: CDM Plan review criteria CDM Plan Apprval Threshld(s) 1. Ttal budget The ttal CDM Plan Budget is cnsistent with budget allcated t the LDC by the IESO. The reasnableness f the annual allcatin f the CDM Plan Budget as determined by the LDC. The reasnableness f the prtin f CDM Plan Budget used fr FCR and P4P annually and fr the full term f the CDM Plan. See Energy Cnservatin Agreement definitin f Eligible Expenses and the Eligible Prgram Delivery Expense Guidelines fr eligible CDM Plan Budget items. Budget fr each Prgram includes csts f IESO Value Added Services (see [Central Services Strategy and Rate Guideline] fr price list). Budget fr nly prjects which have been initiated under the new CDM framewrk (e.g., des nt include budget assciated with prjects initiated in the /2015 extensin framewrk which may be in-service between January 1, 2015 and December 31, 2015). If applicable, the target gap, being the prtin f the CDM Plan Target that the LDC reasnably expects, based n qualified independent advice per an independently cmpleted achievable ptential study initiated (i.e., a signed cntract is in place between the vendr and the LDC) n r befre Nvember 1, 2014 and as accepted by the IESO, culd nly be achieved with funding in additin t the CDM Plan Budget. Page 3 f 9
4 Cnservatin First Framewrk LDC Tl Kit Final v4.0 January 17, Ttal MWh t be achieved by 2020 CDM Plan Apprval Threshld(s) 100% f CDM Plan Target allcated t the LDC is planned t be achieved. N less than incremental annual savings f 8.3% f ttal 2020 savings target is t be achieved in any year, prvided ttal allcated target is nt planned t be achieved and allcated CDM Plan budget is nt exhausted prir t end f Reasnableness f the frecasted savings by sectr in relatin t the achievable ptential savings available in the LDC s service area by sectr per the achievable ptential tl prvided as part f the LDC s CDM Plan Submissin. 3. CDM Plan cst effectiveness Ttal Resurce Cst (TRC) and PAC Test (Prgram Administratr Cst Test) 1.0 fr each year f CDM Plan unless therwise justified by the LDC. 1.0 fr verall CDM Plan (the LDC may submit a CDM Plan where cst effectiveness is nt demnstrated if the LDC can reasnably demnstrate that it is unable t develp a CDM Plan that is cst effective due t its size, lcatin, the nature f its custmer base r ther unusual circumstances). Nte: CDM Plans with benefit:cst rati less than 1.3 will be subject t further review t determine ptential risk f decrease t <1.0. Nte: csts f IESO Value Added Services, the LDC administrative and delivery csts and Prgrams fr Lw Incme, Educatin and First Natin custmers will be included in the evaluatin f whether a CDM Plan is cst effective. 1.0 fr verall plan and estimated additinal funding where a qualified target gap has been identified (Nte: IESO s apprval f a CDM Plan des nt imply any additinal funding abve the CDM Plan budget allcated by the IESO, additinal funding is indicated fr future reference nly). The cst effectiveness f a jint CDM Plan will be determined n an aggregated basis. General The assumptins made in the CDM Plan regarding cst effectiveness and measure-level savings are per the Measures & Assumptins List, the mst recent M&V results prvided by the IESO and/r an apprved business case. Exceptins - due t the LDC s size, lcatin, nature f custmer base r ther unusual circumstance A CDM Plan that is nt cst effective due t a nted exceptin may be accepted where the CDM Plan demnstrates that (a) the LDC has made reasnable effrts t determine if a CDM Plan culd be delivered cst effectively in its service area by anther distirbutin cmpany; and (b) the CDM Plan will be delivered in as cst effective a manner as is reasnably pssible. In evaluating the CDM Plan t assess whether it has Page 4 f 9
5 Cnservatin First Framewrk LDC Tl Kit Final v4.0 January 17, 2018 CDM Plan Apprval Threshld(s) met the tests in (a) and (b) abve, the IESO will cnsider factrs such as cst efficiencies derived frm cllabratin with ther distributin cmanies and/r gas utilities that result in delivery cst/mwh that is lwer than the LDC s histric cst/mwh. 4. Prgrams The CDM Plan may include (a) Prgrams that have been apprved by the IESO r (b) reginal r lcal Prgrams r pilts that are being prpsed r planned by the LDC r ther distributin cmpanies. Fr clarity, the IESO s apprval f a CDM Plan that includes prpsed reginal and lcal Prgrams r pilts des nt cnstitute the IESO s apprval f thse Prgrams r pilts. Reginal and lcal Prgrams r pilts are subject t review and apprval by the IESO in accrdance with the Energy Cnservatin Agreement befre expenses incurred in respect f such Prgrams will be Eligible Expenses under the Energy Cnservatin Agreement r such Prgrams will qualify fr pay-fr-perfrmance funding, as applicable, except as therwise expressly prvided in the Energy Cnservatin Agreement. Unless therwise apprved in writing by the IESO, in its sle discretin, Prgrams that are added as part f a CDM Plan amendment must have a Prgram start date that is after the CDM Plan amendment s expected apprval date. 5. Custmer cverage CDM Plan must include Prgrams fr all f the fllwing custmer segments which are fund in the LDC s service area: Residential; Small business; Cmmercial (including multi-family); Agricultural; Institutinal; and Industrial. 6. Prpsed Pilt and Prgram identificatin All prpsed pilt and prpsed lcal and/r reginal Prgrams included in the CDM Plan include an, utline f the prpsed pilt r Prgram name, type (pilt, lcal, reginal), custmer segments served by the prpsed prgram, participating LDCs (if applicable), expected date f business case submissin, and brief verview f the prpsed pilt r Prgram. Where the LDC is eligible t claim Administrative Expenses assciated with the develpment f Unapprved Business Cases under the Energy Cnservatin Agreement, the LDC must include the name f the prpsed prgram in the CDM Page 5 f 9
6 Cnservatin First Framewrk LDC Tl Kit Final v4.0 January 17, 2018 CDM Plan Apprval Threshld(s) Plan as a prpsed prgram and include the suffix - Nt Apprved in the prgram name prvided in Tab D f the CDM Plan. N electricity savings may be attributed t any such prpsed prgrams in the CDM Plan. 7. Reginal LDC cllabratin Includes an explanatin f cllabratin with distributin cmpanies in regin. The LDC will indicate whether r nt cllabratin will ccur and if it will ccur, what activities will be included. If cllabratin will nt ccur, the LDC will indicate why it will nt. 8. Gas cllabratin Includes an explanatin f cllabratin with gas utility prgrams ffered in the LDC s service area (if applicable). The LDC will indicate whether r nt cllabratin will ccur and if it will ccur, what activities will be included. 9. Funding mechanism Where the CDM Plan prpses a funding mechanism fr a new Prgram, r where the LDC is prpsing t switch a Prgram frm ne funding mechanism t anther, the fllwing criteria must be met: the LDC has nt previusly delivered that Prgram thrugh the funding mechanism that the LDC wuld nw like t apply t the Prgram; the LDC has delivered Prgram thrugh the previusly apprved funding mechanism fr a minimum f ne year; there is n ptential fr duplicatin f funding fr csts that have already been recvered by LDC; where an LDC switches a Prgram frm pay-frperfrmance t full cst recvery, FCR funding is nt used t cver csts incurred while the Prgram was funded thrugh pay-fr-perfrmance; it is reasnable that the balance f target can be achieved under the new mechanism in the time remaining in the CDM Plan; and the LDC and the IESO settle any expenses/financial matters under the current mechanism befre the new mechanism is apprved. 10. CDM cntributin t reginal planning CDM Plan must include descriptin f hw the CDM Plan cnsiders the electricity needs and investments identified in ther plans r planned activitities, cmpleted r underway withing the LDC s service area r regin.this may include: Integrated Reginal Resurce Plan; Distributin Netwrk Plan; and Municipal r Cmmunity Energy Plans. Page 6 f 9
7 Cnservatin First Framewrk LDC Tl Kit Final v4.0 January 17, 2018 CDM Plan Apprval Threshld(s) 11. Prvince-wide Prgrams If the LDC elects nt t ffer a prvince-wide Prgram that the LDC previusly ffered in its service area, the LDC must change the budget and electricity savings f such prvincewide Prgram in its CDM Plan t $0 and 0 MWh, respectively, fr each year that the LDC des nt ffer the prvince-wide Prgram and must indicate the date it will cease t ffer such prvince-wide Prgram in a cver letter included as part f its CDM Plan amendment submissin. Fr Direct Install Prgrams that the IESO has agreed the IESO r its delivery agent, as applicable, will deliver in the LDC s service area, the LDC must include the suffix - Centrally Delivered in the prgram name prvided in Tab D f the CDM Plan (eg. Small Business Lighting Centrally Delivered ). Additinal criteria may be required fr funding under the pay-fr-perfrmance mechanism. 7) Cnditinal apprval Where the IESO apprves a CDM Plan with cnditins and thse cnditins are accepted by the LDC, thse cnditins will be attached as an addendum t, and frm part f, the apprved CDM Plan. Page 7 f 9
8 Cnservatin First Framewrk LDC Tl Kit Final v3.0 July 1, 2017 Appendix A: LDC CDM Plan Review Prcess Page 8 f 9
9 Cnservatin First Framewrk LDC Tl Kit Final v3.0 July 1, 2017 LDC CDM Plan Review Prcess IESO LDC 1) LDC submits CDM Plan t IESO 2) IESO receives CDM Plan and cnfirms with LDC 3) IESO assigns a CDM Plan Crdinatr; CDM Plan Crdinatr reviews CDM Plan t determine if: a) Single LDC CDM Plan; r b) Multi-LDC CDM Plan; and ntifies LDC f Business Develpment cntact infrmatin and review timeline/ 4) IESO ntifies LDC that clarifying infrmatin is required t cmplete review and utlines infrmatin required Yes Clarificatin n CDM Plan cntent required? N 5) LDC prvides IESO with clarifying infrmatin in written frm (with meeting t discuss if necessary) 6) IESO reviews clarifying infrmatin prvided Yes 8a) IESO sends LDC letter cnfirming apprved plan 9) LDC returns signed cpy f CDM Plan Apprval Letter t IESO 7) IESO ntfies LDC f CDM Plan review decisin: a)apprved; b) apprved with cnditins; r c) nt apprved; CDM Plan Apprved? Yes, With cnditins 8b) IESO sends LDC letter cntaining apprved plan with Schedule t ECA indicating cnditins f apprval N 8c) IESO sends LDC letter cnfirming plan has nt been apprved and reasns apprval nt prvided Page 9 f 9
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