Senate File 2311 S-5096 Amend Senate File 2311 as follows: 1 1. Page 6, lines 9 and 10, by striking < as provided > 2 2. By striking page 6, line 24, through page 8, line 18, and 3 inserting: 4 < (b) A rate-regulated gas or electric utility customer 5 may request an exemption from participation in any energy 6 efficiency plan or demand response plan offered by a gas or 7 electric utility. Upon receipt of a request for exemption 8 submitted by a customer, the gas or electric utility shall 9 grant the exemption and, beginning January 1 of the following 10 year, the customer shall no longer be assessed the costs of the 11 plan and shall be prohibited from participating in any program 12 included in such plan. An exemption shall be permanent and 13 shall exempt the customer from any subsequent five-year plan 14 offered by the gas or electric utility, provided, however, 15 that a customer granted an exemption may request to enroll 16 in a subsequent five-year energy efficiency plan or demand 17 response plan at any time prior to the commencement of such 18 plan. The gas or electric utility shall grant the enrollment 19 and, beginning at the commencement of the subsequent plan, the 20 customer shall be assessed the costs of the plan and shall be 21 allowed to participate in any program included in such plan. 22 (2) Gas and electric utilities required to be 23 rate-regulated under this chapter may request an energy 24 efficiency plan or demand response plan modification during the 25 course of a five-year plan. A modification may be requested 26 due to changes in funding as a result of public utility 27 customers requesting exemptions from the plan or for any other 28 reason identified by the gas or electric utility. The board 29 shall take action on a modification request made by a gas or 30 electric utility within ninety days after the modification 31 request is filed. If the board fails to take action within 32 ninety days after a modification request is filed, the 33 modification request shall be deemed approved. 34 (3) Before any energy efficiency plan or demand response 35 -1- SF2311.4268 (2) 87 gh/rn 1/ 5 #1. #2.

plan is filed with the board pursuant to this subsection, the 1 board shall adopt rules pursuant to chapter 17A establishing 2 reasonable processes and procedures for utility customers to 3 request exemptions from energy efficiency plans or demand 4 response plans pursuant to this subsection. The rules adopted 5 by the board shall only apply to rate-regulated gas or electric 6 utilities and shall, at a minimum, do all of the following: 7 (a) Prohibit a customer from obtaining an exemption from 8 an energy efficiency plan or demand response plan if the 9 customer has participated in any energy efficiency program or 10 demand response program included in a plan during the course 11 of the plan, or has redeemed any rebate pursuant to an energy 12 efficiency program or demand response program included in a 13 plan during the course of the plan. 14 (b) Require utilities to provide notification to customers 15 regarding the ability to request an exemption from an energy 16 efficiency plan or demand response plan, or the ability to 17 enroll in a subsequent five-year plan if the customer received 18 an exemption, and establish requirements regarding the content 19 and form of such notification provided to customers. The 20 notification provided to customers shall inform the customer 21 that participation in any energy efficiency program or demand 22 response program included in a plan during the course of 23 the plan, or redemption of any rebate pursuant to an energy 24 efficiency program or demand response program included 25 in a plan during the course of a plan, shall preclude the 26 customer from receiving an exemption from the plan until the 27 commencement of the next five-year plan. Such information 28 included in the notification shall also be included in any 29 rebate provided to customers relating to an energy efficiency 30 program or demand response program included in a plan. 31 (c) Provide reasonable time for utilities to develop any 32 billing or administrative systems required to implement the 33 rules adopted by the board pursuant to this subparagraph. 34 (d) Provide that if more than ninety percent of the total 35 -2- SF2311.4268 (2) 87 gh/rn 2/ 5

number of customers in a particular customer class request an 1 exemption from an energy efficiency plan or demand response 2 plan pursuant to this subsection, the utility may discontinue 3 such plan for that particular customer class. 4 (e) Specify how costs that have not been fully recovered 5 from customers during a plan period, including costs of 6 discontinued plans, are to be recovered from customers. 7 (f) Allow a customer to request an exemption during the 8 first plan year of a five-year energy efficiency plan or demand 9 response plan that takes effect on or after January 1, 2019, 10 within a time period of sixty days or more after the date such 11 plan takes effect, which exemption shall become effective at 12 the end of the time period allowed for customers to request an 13 exemption. 14 (g) Allow a customer that moves into the service area of a 15 gas or electric utility during the course of a five-year energy 16 efficiency plan or demand response plan to request an exemption 17 from such plan within sixty days after the commencement of gas 18 or electric service, which exemption shall become effective at 19 the end of the sixty-day time period from which gas or electric 20 service commenced. > 21 3. Page 8, lines 29 and 30, by striking < energy efficiency 22 and demand response programs > and inserting < plans > 23 4. Page 9, line 2, by striking < a program > and inserting < a 24 plan > 25 5. Page 9, line 7, by striking < program > 26 6. Page 9, line 22, after < groupings. > by inserting 27 < Gas and electric utilities that are not required to be 28 rate-regulated shall allow customers to request exemptions 29 from participation in any energy efficiency programs or demand 30 response programs offered by the utility, and shall establish 31 reasonable processes and procedures for customers to request 32 such exemptions. Such processes and procedures established 33 by non-rate-regulated gas and electric utilities shall not be 34 subject to the regulatory authority of the board. > 35 -3- SF2311.4268 (2) 87 gh/rn 3/ 5 #3. #4. #5.

7. Page 10, by striking lines 14 through 25 and inserting 1 < response plan that results in projected cumulative average 2 annual costs that exceed one and one-half percent of the 3 gas utility’s expected annual rate revenue from customers 4 participating in such plans, and shall not require an electric 5 utility to adopt an energy efficiency plan or demand response 6 plan that results in projected cumulative average annual costs 7 that exceed two percent of the electric utility’s expected 8 annual rate revenue from customers participating in such 9 plans. For purposes of determining the one and one-half or 10 two percent threshold amount, the board shall exclude from a 11 gas or electric utility’s expected annual rate revenue the 12 revenues expected from customers that have received exemptions 13 from energy efficiency plans or demand response plans pursuant 14 to paragraph “a” , subparagraph (1), subparagraph division 15 (b). A gas or electric utility may voluntarily propose an 16 energy efficiency plan or demand response plan that results in 17 projected average annual costs that exceed one and one-half 18 percent, on a cumulative basis, of a gas utility’s expected 19 annual rate revenue from customers participating in such plans, 20 or two percent, on a cumulative basis, of an electric utility’s 21 expected annual rate revenue from customers participating in 22 such plans. The board may approve, reject, or modify the > 23 8. By striking page 10, line 33, through page 11, line 7, 24 and inserting < currently approved energy efficiency plan or 25 demand response plan includes projected average annual costs 26 that exceed one and one-half percent, on a cumulative basis, 27 of the gas utility’s expected annual rate revenue received 28 from customers participating in such plan for service within 29 the previous calendar year, exclusive of recovery of energy 30 efficiency costs, or two percent, on a cumulative basis, of 31 the electric utility’s expected annual rate revenue received 32 from customers participating in such plan for service within 33 the previous calendar year, exclusive of recovery of energy 34 efficiency costs, the gas or electric utility may file a 35 -4- SF2311.4268 (2) 87 gh/rn 4/ 5 #7.

request to modify its approved energy efficiency plan or 1 demand response plan to achieve projected average annual costs 2 at one and one-half or less, on a cumulative basis, of the 3 gas utility’s expected annual rate revenue from customers 4 participating in such plan, or two percent or less, on a 5 cumulative basis, of the electric utility’s expected annual 6 rate revenue from customers participating in such plan. In 7 such case, or whenever a request > 8 9. By striking page 11, line 31, through page 12, line 1, 9 and inserting < defined in section 476.42. Customers that have 10 been granted exemptions from energy efficiency plans or demand 11 response plans pursuant to paragraph “a” , subparagraph (1), 12 subparagraph division (b), shall not be charged for recovery of 13 energy efficiency or demand response costs beginning January 14 1 of the year following the year in which the customer was 15 granted the exemption. > 16 ______________________________ MICHAEL BREITBACH -5- SF2311.4268 (2) 87 gh/rn 5/ 5 #9.