This is the landing page for the 2022 Minnesota Cost-Effectiveness Advisory Committee (CAC). The 2022 process is now complete. Below is a summary of that process. The Minnesota Department of Commerce (the Department) is currently reconvening the CAC to guide utility 2027-2029 Triennial filings.

The Department convened the CAC in April 2022. The CAC’s objectives were to:

• Explore changes to Minnesota’s current methods of estimating Energy Conservation & Optimization (ECO) program effectiveness for energy efficiency, load management, and efficient fuel-switching programs,
• Discuss how to integrate into ECO utility portfolios agreed upon cost-effectiveness updates.

The CAC also held two meetings in 2021; however, the Department temporarily suspended the process in deference to activities in the Minnesota legislature that culminated with Governor Walz signing the ECO Act of 2021 into law on May 25, 2021. The Department adopted ECO Act implementation guidance on March 15, 2022.

Importantly, the Department convened the CAC to act as a forum for discussing how to update components of investor-owned utility program energy efficiency cost-effectiveness models and integrate these into ECO programs. The specific activities during 2022 focused on developing a Minnesota Test (MN Test) to use as ECO’s Primary Test for screening energy efficiency, load management, and efficient fuel-switching programs. Based on input from the CAC process, the Department adopted changes to Minnesota’s cost-effectiveness policies on March 31, 2023.

The information that follows relates to CAC meetings, information exchanged among Committee members, and interim reports.

Shortcuts to Meeting Information and Working Group Report

• Meeting 1 – April 22, 2022
• Meeting 2 – May 4, 2022
• Meeting 3 – May 18, 2022
• Meeting 4 – June 15, 2022
• Meeting 5 – August 12, 2022
• Minnesota CAC Working Group Report – August 18, 2022
• Meeting 6 – September 7, 2022
• Meeting 7 – October 14, 2022
• Meeting 8 – November 18, 2022

Meeting 1 – April 22, 2022

Meeting 1 served a kick-off to discuss the CAC’s goals and plans to develop a Minnesota Test. The slides and notes from the meeting follow.

Meeting 2 (Workshop 1) – May 4, 2022

Led by Synapse Energy Economics, Meeting 2 focused on applying Step 1 of the National Standard Practice Manual’s (NSPM) 5-step process to developing a Minnesota cost-effectiveness test. This meeting and the meetings that followed were organized as “workshops” to walk CAC members through steps the NSPM prescribes for developing a jurisdiction-specific test. The slides and notes from the meeting follow.

Meeting 3 (Workshop 2) – May 18, 2022

Led by Synapse Energy Economics, Meeting 3 focused on applying Step 2 of the NSPM’s 5-step process to developing a Minnesota cost-effectiveness test. The slides and notes from the meeting follow.

Meeting 4 (Workshop 3) – June 15, 2022

Led by Synapse Energy Economics, Meeting 4 discussed Steps 3-5 of the NSPM’s 5-step process to developing a Minnesota cost-effectiveness test. The group also reviewed Synapse’s proposed MN Test Straw Proposal. The slides and notes from the meeting follow.

Meeting 5 – August 12, 2022

Agenda:

• Discuss Working Group Report.
• Mendota Group transitions to next phase of CAC process focused on quantifying MN’s primary test impacts.
• Roadmap of the key tasks and timeline for this phase of the CAC process.
• Initial discussion of priority impacts that will work to quantify.
• Initial discussion of resources that could be used to quantify priority impacts.

Minnesota Conservation Improvement Program Cost-Effectiveness Advisory Committee Working Group Report – August 18, 2022

The Working Group Report provides a summary of the current activities of the Minnesota Conservation Improvement Program Cost-Effectiveness Advisory Committee and identifies next steps for the CAC in developing a Minnesota Test (MN Test) that can be used as CIP’s Primary Test for screening energy efficiency, load management, and efficient fuel-switching programs.

Meeting 6 – September 7, 2022

Agenda:

• Key Takeaways from 8/12 CAC Meeting
• Key Takeaways from Homework Assignment #1
• Discussion of Homework Assignment Responses

Slides and notes follow.

Meeting 7 – October 14, 2022

Agenda

• Progress Check – Goals for Meeting
• Methodology Descriptions – Utility System Impacts
• Guidelines for Efficient Fuel-Switching and Load Management
• Discuss Other Topics and Non-Utility System Impacts

Slides and notes follow.

Meeting 8 – November 18, 2022

Agenda

• Key Takeaways from 10/14 CAC Meeting
• Discussion: Feedback on Draft Utility System Impact Methods
• Discussion: Feedback on Draft EFS and Load Management Technical Guidance
• Discussion: Other Requested Information

Slides and Notes follow.