self-directed eo plan

Under 2008 Public Act 295 (the Act) as amended, certain customers may create and implement, or "self-direct", a customized energy optimization (i.e., energy efficiency) plan and thus be exempt from paying the full Energy Optimization (EO) surcharge to its utility provider. The surcharge exemption does not apply to a contribution to the low income programs and fees charged by the utility provider to cover self-direct plan review and evaluation costs. Specifically, Section 93(1) of the Act states:

"An eligible electric customer is exempt from charges the customer would otherwise incur as an electric customer under section 89 or 91 if the customer files with its electric provider and implements a self-directed energy optimization plan..."

Electric customers who are eligible to participate in the self-directed EO plans are non-residential and determined by their peak demand use.

  • "For 2009 and 2010, the Act allows the largest customers to participate, or those with 2 MW annual peak demand in the preceding year or 10 MW in aggregate when combining a customer's sites within an electric provider's territory.
  • "For 2011 through 2013, the Act begins to allow smaller customers to participate, or those with 1 MW annual peak demand in the preceding year or 5 MW in aggregate when combining customer sites within an electric provider's territory.
  • "Beginning in 2014, the Act continues to ratchet down the size restriction, allowing customers with 1 MW in aggregated annual demand in the preceding year, at all sites to be covered by the self-directed plan within an electric provider's territory.

Note that all but the largest customers must use the services of an Energy Optimization Service Company (EOSC) to develop and implement their self-directed plan.

A self-directed EO plan must, according to Section 93(6) of the Act:

  1. be a multi-year plan for an ongoing EO program;
  2. provide for aggregate energy savings that for each year meet or exceed the energy optimization performance standards (0.3% in 2009, 0.5% in 2010, 0.75% in 2011, 1.0% in 2012 and thereafter) based on electricity purchases in the previous year for the site or sites covered by the self-directed plan;
  3. be calculated based on annual electricity usage, not including:
    • changes in electricity usage because of changes in business activity levels not attributed to EO, or
    • changes in electricity usage because of the installation, operation, or testing of pollution control equipment;
  4. specify whether electricity usage will be weather-normalized or based on the average number of megawatt hours of electricity sold by the electric provider annually during the previous 3 years to retail customers in this state; and
  5. outline how the customer intends to achieve the incremental energy saving specified in the self-directed plan.

Links to self-directed plan forms and examples are found below. (Forms and instructions were approved in Docket No. U-16563.) Customers considering a self-direct EO plan are encouraged to contact their electric utility for provider specific enrollment procedures. New plans and plan term extensions must be submitted to the provider by July 15th, (October 15th in 2011), preceding the plan year. Information regarding EOSCs is available at this link.

Self-direct plan results shall be reported using the Annual Report Template found below and submitted to the electric utility by March 1st following the plan year.  Please address any questions to Dave Walker.

EO Self Direct Plan Forms