NCMPA1 DSM/EE Program Opt Out Provision Frequently

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• What are NCMPA1’s DSM/EE programs?

  NCMPA1 has implemented several new energy efficiency (EE) programs to encourage energy conservation and efficient energy use. The new programs were provided by NCMPA1 participants beginning in February 2009. The new programs are part of Hometown Green, NC Public Power’s collective effort to encourage smart energy choices. The programs also help NCMPA1 and its Participants comply with North Carolina’s renewable energy and energy efficiency legislation. Click here to access information on specific programs.

• Are NCMPA1’s DSM/EE requirements under REPS different from those of the investor-owned utilities and co-ops?

  Yes, municipal electric power providers include the incremental cost of DSM/EE programs towards their cost cap while the investor-owned utilities cannot.  Investor-owned utilities are required to establish a separate rate for DSM/EE programs; therefore, the method of recovery of the incremental costs of those programs is significantly different from that of the municipal electric power providers.

• How are these programs funded?

  Through a rate rider adopted by each municipality which is a member of NCMPA1.

• How much will participating in these programs cost me?

  Participation costs will vary by municipality based on its adopted rate rider.  Ultimately, the costs will be limited by the cost cap included in the legislation:  Currently, that cost cap is set at $10 per year for residential customers, $50 per year for commercial customers and $500 per year for industrial customers.  The cost cap will escalate in 2012 as the legislative requirements increase

• My company has already made, or is planning to make, a number of energy efficiency improvements at our facility. Do we have to share in paying for the NCMPA1 DSM/EE programs?

  If you are a qualifying facility you can elect to opt-out of NCMPA1’s DSM/EE programs.

• What is a qualifying facility for purposes of the opt-out provision?

  Any industrial facility may elect to opt-out. “Industrial” facilities should meet the manufacturing criteria of the North American Classification System (NAICS).   In addition, commercial facilities that use more than one million kWh’s of electricity each year may elect to opt-out.  “Commercial” facilities include all facilities that are not residential or industrial in classification.  For purposes of meeting the one million kWh consumption criteria for commercial facilities, a facility is defined as one contiguous property.   Therefore, multiple meters at one location can be aggregated for purposes of the criteria but multiple locations of chain accounts cannot.

• What do I have to do to opt-out?

  Complete the NCMPA1 DSM EE Opt Out Notice.

• Can I opt-out now and decide later to participate in the NCMPA1 DSM/EE programs?

  Any customer that opts out, but subsequently elects to participate in new DSM/EE Programs, must wait until the next open enrollment period beginning on January 1 and then will be subject to the REPS Rider charges for a minimum of five years and a maximum of the life of the program in which the customer participated.

• If I have multiple accounts, can I opt-out for some of those accounts and elect to participate for other accounts?

  The opt-out form allows a company with multiple facilities in different NCMPA1 municipalities to indicate which facility it is choosing to opt-out for.  Those facilities not included on the form will be considered eligible to participate in the NCMPA1 DSM/EE programs.

• Where do I send my opt-out form?

  The form should be sent to NCMPA1 at the address shown on the form.  NCMPA1 will acknowledge receipt of the form and forward a copy to each of its member municipalities included on the form.

• Do I have to opt-out annually?

  No, After a qualifying facility has elected to opt-out of NCMPA1’s DSM/EE programs during an annual open enrollment period, that facility will no longer be eligible to participate in any DSM/EE programs.  If a customer decides later to participate in any of  NCMPA1’s DSM/EE programs, that customer must wait until the next open enrollment period beginning January 1 of each year and will then be subject to the REPS  Rider charges for a minimum of five years and a maximum of the life of the program in which the customer elects to participate.

• Do I have to notify the North Carolina Utilities Commission that I am electing to opt-out?

  NCMPA1 will notify the NCUC of each customer’s election to opt-out.

• Who should I contact if I have questions about the opt-out process?

  Any questions about the DSM/EE programs and the opt-out provision should be directed to Robbie Tugwell, Manager of Marketing, NCMPA1 at 1-800-768-7697, extension 6364 or rtugwell@electricities.org.