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New Orleans |
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Code of Ordinances |
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Chapter 158. UTILITIES |
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Article V. ELECTRICITY, LEAST-COST RESOURCE PLAN |
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Division 1. GENERALLY |
§ 158-731. Definitions.
The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
Avoided cost means the cost over a future period to the utility of marginal energy and capacity from a supply-side resource for which an alternative resource may be substituted. Avoided costs shall be reported on a seasonal and time-of-day basis if variations are sufficient to warrant such time-differentiation.
(1)
The direct avoided cost, for use in the total resource cost test for the purposes of developing the least-cost resource plan filed under sections 158-766 through 158-768, shall be comprised of:
a.
Avoided generating capacity cost, adjusted for transmission and distribution losses and reserve margin requirements;
b.
Avoided transmission and distribution system capacity cost;
c.
Avoided energy cost, adjusted for transmission and distribution system losses.
(2)
The total avoided cost, for use in the societal cost test for the purposes of developing the least-cost resource plan filed under sections 158-766 through 158-768, shall be comprised of:
a.
The direct avoided cost;
b.
Avoided externality costs associated with a resource which clearly can be monetized;
c.
Other avoided costs and benefits which have not been monetized, including an adjustment for risk associated with a resource.
Capacity factor means the ratio of the net energy produced by a generating facility to the amount of energy that could have been produced, in the absence of any outages, in any selected time period. Capacity factor equals net power generation in the period divided by the product of number of hours in the period and net dependable capacity, where net power generation is gross station output less in-station electricity consumption.
Customer (or participant) contribution means the incremental cost to the customer (or to any person or entity, other than the utility serving that customer), for a demand-side resource that requires an expenditure of utility funds.
Demand-side program means a program designed to implement demand-side resources.
Demand-side resource means any hardware, equipment or practice which is installed or instituted for energy efficiency or energy management purposes.
Discount rate, used in the development of the least cost resource plan, shall be consistently employed in the analyses of all programs and evaluations. The discount rate consists of a risk-free component, specified as the U.S. government 20-year bond rate, plus an additional component to reflect any risk associated with the provision of energy services. The collaborative working groups referenced in section 158-784 shall develop recommendations as to the appropriate risk components of the discount rate.
End-use means light, heat, cooling, refrigeration, motor drive, microwave energy, video or audio signal, computer processing, electrolytic process, or other useful work produced by electricity or its substitute. If equivalent energy-related amenity levels and/or productivity are maintained, the end-use service is considered constant for purposes of these regulations.
Energy efficiency means the decrease of power (kilowatt) or energy (kilowatt-hour) requirements of participating customers during any selected time period, with end-use service held constant.
Energy management means the modification of the time pattern of participating customer energy usage, with end-use service held constant.
Equivalent availability means the availability of a generating facility in any selected time period, considering both scheduled and unscheduled, partial and full outages. The equivalent availability factor equals the service hours plus reserve hours minus equivalent derated hours divided by the number of hours in the period, where service hours are the hours the unit is electrically connected to the load, reserve hours are the hours the unit is shut down for economic reasons and equivalent derated hours are the number of forced or scheduled derated hours times megawatt reduction divided by the maximum dependable capacity.
Externalities (or external costs/benefits) means those environmental and social costs or benefits which result from the generation, transmission, distribution or reduction in consumption through efficiency improvements of electricity which are external to the transaction between the supplier (including the supplier of efficiency improvements) and the wholesale (utility) or retail or (ratepayer) customer. Externalities should be quantified and expressed in monetary terms where possible. It is recognized that not all externalities can be quantified or expressed in monetary terms, and those which cannot shall nonetheless be qualitatively considered in the societal cost test to develop all resource plans. Any reductions in the use of fuels other than those required to satisfy electric end-use services should be explicitly considered in the societal cost test.
Full-scale demand-side program means a demand-side program which is implemented and made generally available by the utility for one or any combination of customer classes.
Least-cost planning (LCP) means a utility resource planning process in which an integrated combination of demand-side and supply-side resources are selected to satisfy future energy service demands at the least cost to society, balancing the interests of utility customers, utility shareholders and society-at-large. In LCP, all resources reasonably available to reliably meet future energy service demands are considered by the utility on a fair and consistent basis. These options include, but are not limited to:
(1)
Options that increase the available supply of, or efficiency from, existing utility facilities, such as plant heat-rate improvements, plant refurbishment and life-extension, transmission and distribution system loss reduction;
(2)
Options that increase the available supply from new utility sources, such as new conventional plants, new advanced technology plants, power purchases from other utilities;
(3)
Options that increase the available supply from nonutility sources, such as cogenerators and independent power producers;
(4)
Options that reduce demands for utility-supplied power and energy through energy efficiency;
(5)
Options that reduce demands for utility-supplied power and energy through energy management;
(6)
Options that reduce demands for utility-supplied power and energy through use of alternative fuels.
Lost contribution means the component of rates equating to the recovery of fixed costs and profits that are lost as a result of reduced energy sales.
Net dependable capacity means the maximum capacity a generating facility can sustain over a specified period of time, modified for ambient limitations and less auxiliary loads, as reported to the U.S. Department of Energy on Form IE-411.
Pilot demand-side program means a test demand-side program which is implemented by the utility for one or any combination of customer classes for which demand-side resource, program design, and method of implementation have not yet been proven cost-effective through either the implementation of a pilot program in the utility's service territory or the implementation of a transferable pilot or full-scale program in the service territory of another electric utility. Pilot programs are limited in scope either as to target population, duration or a combination of these factors.
Rate impact analysis means an analysis of the extent to which unit retail rates for electricity are altered by the implementation of a least-cost resource plan.
Screening test means the evaluations used to determine which demand-side and supply-side resource options should be eligible for inclusion in resource plans. The societal cost test and total resource cost test shall be applied to each resource option in the screening test. Resource options passing either the societal cost test or the total resource cost test shall be eligible for inclusion in resource plans. Both tests are used in order to assure that appropriate resource options are eligible for developing resource plans serving a variety of objectives, such as maximizing societal value or minimizing customer bills.
Societal cost test means an analytic test which identifies resources that provide net benefits considering economic, environmental, and social factors. A resource option is cost-effective under the societal cost test when present value life cycle total benefits exceed present value life cycle total costs, evaluated at the discount rate. Total benefits equal the total avoided costs multiplied by the energy/capacity supplied by the resource option, plus any resource-specific benefits not otherwise reflected in the total avoided cost. Total costs equal the total installed cost of the resource option plus its operating costs plus any monetized and nonmonetized costs attributable to the option.
Standard estimates of energy efficiency improvement means standard estimates of the energy efficiency improvement from the implementation of a demand-side resource may be based upon reliable engineering or other data rather than metering or statistical analysis. Such estimates may be utilized where it is, for example, economically impractical to monitor the actual savings of every installed demand-side resource. Where estimates are used, additional verification of energy efficiency improvement should be conducted through customer bill analysis.
Supply-side resource means a resource or option which can provide for a supply of electrical energy and/or capacity to the utility. Supply-side resources include utility-owned electric generating, transmission and distribution facilities; supply from other utilities and nonutility sources; and the life extension or upgrading of existing generation, transmission or distribution facilities of the utility.
System means an electric utility, its parent holding company and affiliated companies.
Total resource cost test means an analytic test which considers only the direct economics of resource options. A resource option is cost-effective under the total resource cost test when present value life cycle direct benefits exceed present value life cycle direct costs, evaluated at the discount rate. Direct benefits equal the direct avoided costs multiplied by the energy/capacity supplied by the resource option. Direct costs equal the total installed cost of the resource option (including the related facilities associated with its installation) plus its operating costs.
Utility means each electrical corporation providing service within the parish under this article.
(Code 1956, § 52-351)