As used in this part:

1. (1) “Administrator” means the entity responsible for creating and managing an energy efficiency program or portfolio of programs;

2. (2)

   1. (A) “Cost-effective” means a standard used to describe a net beneficial result for programs to be implemented, determined through a process that includes a review of relevant benefit/cost tests.
   2. (B) A cost-effective program would be one that has a high probability of providing aggregate ratepayer benefits to the majority of utility customers;

3. (3)

   1. (A) “Deemed savings” means predetermined, validated estimates of energy and peak demand savings attributable to particular energy efficiency measures based upon:

      1. (i) Engineering calculations;
      2. (ii) Baseline studies; and/or
      3. (iii) Reasonable assumptions.
   2. (B) Such savings are generally those representing the difference between standard efficiency measures and energy-efficient measures.
   3. (C) Deemed savings values must be revised periodically to reflect new technologies and new federal, state, or local policies and codes;

4. (4) “Demand response” means changes in energy use by end-use customers from their normal consumption patterns in response to:

   1. (A) Changes in the price of energy over time; or

   2. (B) Incentive payments designed to induce lower energy use:

      1. (i) At times of high wholesale market prices; or
      2. (ii) When system reliability is jeopardized;

5. (5)

   1. (A) “Energy efficiency” means reducing the rate at which energy is used by equipment and/or processes while maintaining or improving the customer’s existing level of comfort and end-use functionality at a lower customer cost.

   2. (B) Reduction in the rate of energy used may be achieved by:

      1. (i) Substituting more advanced technology; or
      2. (ii) Reorganizing the process to reduce waste heat, waste cooling, or energy.
   3. (C) Demand response is a form of energy efficiency;

6. (6) “Energy efficiency savings”. Energy efficiency (kW, kWh, ccf) savings are determined by:

   1. (A) Comparing measured energy use before and after implementation of an energy efficiency measure; or
   2. (B) Reference to a set of deemed savings approved by the Arkansas Public Service Commission;
7. (7) “Evaluation, Measurement, and Verification (EM&V)” means the performance of studies and activities intended to determine the actual savings and other effects from energy efficiency programs and measures;

8. (8)

   1. (A) “Implementer” means an entity charged by a utility to deliver programs to customers.
   2. (B) Implementers, administrators, and utilities may be the same entity or related by a contract;

9. (9)

   1. (A) “Market transformation” means strategic efforts to induce lasting structural or behavioral changes in the market that result in increased adoption of energy-efficient technologies, services, and practices.
   2. (B) Energy savings from market transformation programs must be beyond that which would be achieved through compliance with building codes and appliance and equipment efficiency standards;
10. (10) “Measure” means the equipment, materials, and practices that, when installed and used at a customer site, result in a measurable and verifiable reduction in either purchased energy consumption, measured energy, or peak demand, or both;
11. (11) “Portfolio” means the entire group of programs offered by an administrator;
12. (12) “Program” means a particular energy efficiency service or set of services to a particular target population;

13. (13) “Program plan” means a plan to deliver a portfolio of energy efficiency programs that includes:

    1. (A) A set of benefit/cost test results;
    2. (B) Specific objectives that can be evaluated using quantifiable measures; and
    3. (C) Provisions to evaluate, monitor, and verify results; and

14. (14)

    1. (A) “Program year” means the year in which programs are administered and delivered.
    2. (B) For the purposes of planning and reporting, a program year shall be considered a calendar year, January 1 through December 31.

Codification Notes: This section was promulgated as Section 3 of the Rules for Conservation and Energy Efficiency Programs prior to codification into the Code of Arkansas Rules. "kW" means kilowatts. "kWh" means kilowatt hours. "ccf" means hundred cubic feet.