DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott, Deputy Chief Financial Officer
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Request for extending the CPS Energy STEP program through January 31, 2021.
SUMMARY:
This item is a request for approval of an ordinance funding the CPS Energy Save for Tomorrow Energy Plan (STEP) through January 31, 2021, and consistent with the program's historical practice the STEP costs will be recovered through an adjustment in the fuel surcharge thereafter. The request to extend the STEP program will allow CPS Energy to comprehensively consider all stakeholder feedback and input prior to developing the next generation FlexSTEP program.
BACKGROUND INFORMATION:
CPS Energy's STEP program was created to be a progressive energy efficiency and conservation program with a community goal of reducing energy demand by 771 MW between 2009 and 2020. The 771 MW reduction is the equivalent amount of energy produced by a large power plant. The success of the STEP program has effectively eliminated the need to build a new power generation plant with 771 MW of capacity at a cost well over one billion dollars. Through STEP, CPS Energy has implemented over 20 energy efficiency and conservation products and services that provide financial incentives and rebates to residential and commercial customers to install energy saving enhancements (weatherization) and appliances; undertake energy conservation measures (demand response); and participate in solar programs.
In Ordinance 2009-05-21-0399, City Council created a mechanism for CPS Energy to invest in energy efficiency and conservation as an alternative to traditional generation sources and recover its STEP costs through the fuel surcharge. The STEP program was approved for the 2009 to 2020 time-period at an estimated cost of $849 million. A portion, approximately $9 million, is recovered from base rates, and the remainder is recovered through an adjustment in the fuel surcharg...
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