Verification of EEU Savings
In order to establish and validate an Energy Efficiency Utility (EEU) claims with respect to meeting its three-year performance goals, an EEU is required to submit a report to the Board and the Department of Public Service (Department) each year that establishes its savings claim regarding certain performance goals for the previous year. After reviewing an EEU’s savings claim each year, the Department provides a recommendation to the Board regarding the EEU’s annual savings claims. The Board then makes a final determination on the annual savings claim and the progress an EEU is making toward achieving its three-year performance goals.
Under Vermont Energy Investment Corporation's (VEIC) Order of Appointment, performance compensation is to be paid based on the attainment of three-year performance targets. At the end of each three-year performance period, the Board makes a final determination regarding VEIC's achievement with respect to the performance goals for the recently completed performance period, and makes a determination regarding any associated performance awards to be provided to VEIC.
Under their respective Orders of Appointment, three-year performance targets are determined for Burlington Electric Department (BED) and Vermont Gas Systems, Inc. (VGS). There are no performance incentive payments associated with achieving these performance targets at this time.
Annual reports for each EEU are produced after the conclusion of the savings verification process. These reports contain final savings figures for the year.
Verification Reports and Orders
Department Evaluation Activities
The Department develops a three-year plan for its EEU evaluation activities which is submitted to the Board for review and approval as part of the Demand Resources Plan (DRP) Proceeding prior to its implementation. The cost for these activities are paid by the EEU Fund.
The evaluation plan includes statewide market-assessment and baseline studies, savings-impact studies (which are used to measure the change in energy and/or demand usage attributed to energy efficiency), and other energy efficiency program evaluation activities.
Every three years, the Department conducts a benchmarking review of the EEUs. The review benchmarks an EEU’s performance compared to providers in other jurisdictions, normalizing for program maturity, funding, demographics, and other important variables.
The Department’s evaluation reports and benchmarking studies will be available for public review in the Board’s electronic case management system, ePSB.
Audit of EEU Program's Cost-Effectiveness
Vermont law requires the Board to, every three years, arrange for the verification by an independent auditor of the reported energy and capacity savings and cost-effectiveness of the EEU services delivered by both Efficiency Vermont and BED.