E-1Application
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Non-Energy Benefits: An Application for Approval of the use of Non-Energy Benefits within Cost-Effectiveness Testing FILED September 19, 2018
AI summary An application seeks approval to incorporate Non-Energy Benefits into cost-effectiveness testing within a Nova Scotia regulatory proceeding. Filed on September 19, 2018, the document outlines the rationale for including non-energy benefits in regulatory evaluations, though specific entities or detailed arguments are not explicitly mentioned in the provided text.
Date Filed: September 19, 2018 Page i of 15 1 1. INTRODUCTION 2 3 The purpose of this Application is to request approval for the use of measure-level 4 Non-Energy Benefits (NEBs) within the context of Cost-Effectiveness (CE) 5 testing asso...
AI summary This document outlines an application requesting approval for the use of measure-level Non-Energy Benefits (NEBs) in Cost-Effectiveness (CE) testing for future DSM planning processes. It provides background on past discussions regarding the Total Resource Cost (TRC) test and the proposed shift to the Program Administrator Cost (PAC) test, which was not approved by the UARB.
EfficiencyOne (Re), 2015 NSUARB 204 (CanLII) 1 2 The Parties agree to the following with respect to the cost a) 3 effectiveness testing of DSM within future applications to the 4 UARB for approval of DSM Supply Agreements (Applications): 5...
AI summary The parties agree on the use of the Program Administrator Cost (PAC) test as the primary cost-effectiveness test for future Demand Side Management (DSM) Supply Agreements. Proposed measures not passing the PAC test must be justified, and low-income targeted programs are exempt from cost-effectiveness testing. A modified Total Resource Cost (TRC) test, including non-energy benefits, is also provided for informational purposes.
2. SUMMARY OF VEIC METHODOLOGY AND RESULTS As requested in EfficiencyOne's initial Scope of Work, VEIC's general approach in recommending NEB values at a measure-level was to look to other jurisdictions who had heavily invested in primary...
AI summary VEIC selected Massachusetts as the source jurisdiction for NEB values due to its comprehensive research, mapping measures to NS's 2016-2018 DSM Resource Plan, and adjusting values based on factors. Maryland and Rhode Island also relied on Massachusetts research. EfficiencyOne's portfolio still uses these measures.
3. PROPOSED APPLICATION The work completed by VEIC fits into a broader strategy for the inclusion of NEBs, as described below. Should the inclusion of NEBs in future cost- effectiveness testing be approved, ongoing management and updates t...
AI summary VEIC's work on NEBs aligns with a strategy for their inclusion in future cost-effectiveness testing, requiring ongoing management. Section 3.3 outlines requests submitted to UARB for determination.
1.1 Background As part of the June 30, 2016 agreement signed on deferred issues related to the 2016-2018 DSM Resource Plan, Intervenors in that proceeding agreed to: …work collaboratively with the DSM Advisory Group to pursue the nature an...
AI summary In 2016, EfficiencyOne and DSMAG agreed to improve TRC test accuracy by incorporating non-energy benefits (NEBs). A draft scope of work proposing adapted NEBs from another jurisdiction was circulated, facing mixed reactions. Feedback led to revisions, with VEIC conducting the study. Stakeholders including Synapse Energy Economics, NS Power, and advocates provided input on the draft report.
2. EFFICIENCYONE RESPONSE TO DSMAG MEMBER FEEDBACK EfficiencyOne thanks DSMAG members for their review of VEIC's draft Report. The breadth of comments received is appreciated by VEIC and EfficiencyOne, with the recognition that the group's...
AI summary EfficiencyOne acknowledges DSMAG members' feedback on VEIC's draft report, which improved the TRC test for future DSM Plan Applications. Responses are organized by submitting organizations, with similar comments addressed once. All material comments were addressed.
2.1 Comments from Synapse Energy Economics On pages one and two of its letter of comment (section 2), Synapse suggests several report modifications to aid in the clarity and presentation of the Report. Those suggestions were: An updated ve...
AI summary Synapse Energy Economics recommends updates to tables and sections in the report, including standardizing NEB categories, breaking down TRC values by end use, clarifying data sources in Table 10, and prioritizing research recommendations. VEIC responded by updating Table 1 but excluded exclusive low-income NEBs for market-rate programs.
EFFICIENCYONE RESPONSE TO DSMAG NEBs COMMENTS EfficiencyOne supports the application of low-income specific participant and utility NEBs and suggests their inclusion be subject to additional discussion at the DSMAG. EfficiencyOne suggests...
AI summary EfficiencyOne supports incorporating low-income specific non-energy benefits (NEBs) but recommends further DSMAG discussion. They reference the Three3/NMR study and note no jurisdictions (e.g., Massachusetts) have integrated such NEBs into market-rate programs. They agree with Synapse on HomeWarming program reporting and advocate for a long-term NEB strategy, including National Screening Practice Manual alignment.
Q1: Are all the non-energy benefits assessed by this study participantrelated? Are any non-energy benefits utility-related? A1: All benefits are participant related. Utility-related non-energy benefits are included in Massachusetts for low...
AI summary All non-energy benefits (NEBs) are participant-related, with utility-related NEBs only in Massachusetts for low-income programs. Methodology uses averaged heating/cooling degree days to assess thermal comfort. Duplicate rows in Appendix B stem from market segment differences in initial modeling. TRC formula in Nova Scotia is materially similar to Massachusetts, with NEBs treated as additional benefits.
2.2 Comments from the Industrial Group On page 1 of its letter of comment, the Industrial Group (the "IG") provides comments relating to the effects of quantifying NEBs on incentive levels, insofar as further customer benefits have been id...
AI summary The Industrial Group (IG) recommends explicitly quantifying Non-Energy Benefits (NEBs) to set appropriate incentives. EfficiencyOne clarifies their method already accounts for NEBs in customer research but focuses on quantifying them for the Total Resource Cost (TRC) test. CLEAResult's recommendations also consider Program Administrator Cost (PAC) and customer simple payback, with the Custom program under Efficiency Nova Scotia (ENS) incorporating NEBs since inception.
2.3 Comments from the Affordable Energy Coalition The Affordable Energy Coalition (the "AEC") provided comments which centrally express concern about the lack of application of low-income NEBs to the existing DSM Affordable Multifamily Hou...
AI summary The Affordable Energy Coalition (AEC) criticizes the exclusion of low-income Non-Energy Benefits (NEBs) from the DSM Affordable Multifamily Housing Pilot and broader studies. EfficiencyOne supports including participant and utility NEBs in the Total Resource Cost (TRC) test but excludes societal NEBs. They explain the study's focus on 2016-2018 DSM plans and suggest future discussions with DSMAG on low-income NEBs.
only a transfer payment between the buyer and seller has been added, which nets to zero from a societal perspective. With the above in mind, there are a few complications that are worth noting here: - The original Massachusetts studies def...
AI summary The Consumer Advocate (Resource Insight) critiques the TRC test's inclusion of NEBs, noting methodological issues in Massachusetts studies and advocating for further DSMAG discussion. EfficiencyOne suggests refining TRC measurement boundaries, while the CA argues high NEBs imply BES should be business-funded, not ratepayer-funded.
provided for in the state's Energy Efficiency Guidelines: 3 "Non-electric benefits shall account for those benefits that are specific to Program Participants and shall be comprised of the following: - (i) Resource benefits, which account f...
AI summary The document outlines Non-Electric Benefits under Nova Scotia's Energy Efficiency Guidelines, including resource benefits (avoided costs of fuels) and non-resource benefits (maintenance, environmental, low-income). It references the Massachusetts TRC test categories like arrearages, bad debt write-offs, and utility-related benefits.
rators Final Report C&I Non-Energy Impacts Study; 9 and - Massachusetts Program Administrators Final Report Commercial and Industrial New Construction Non-Energy Impacts Study. 10 These studies are particularly comprehensive, and the under...
AI summary The text references studies on non-energy impacts, emphasizing methodologies addressing double-counting and interactive effects. It highlights the Massachusetts TRM's role in documenting energy efficiency savings and mentions the Department of Public Utilities' recognition of non-energy impacts in cost-effectiveness analyses.
Inclusion in 2013-2015 Statewide Plan The MA Energy Efficiency Advisory Council (the Council) coordinated the development and review of a Statewide Plan 12 (2011-2012; approved in November 2012) that then became the framework for the Progr...
AI summary The MA Energy Efficiency Advisory Council coordinated the 2011-2012 Statewide Plan, which became the framework for Program Administrators' three-year plans. The Plan included non-energy impacts in cost-effectiveness, but no feedback was received on their treatment during reviews.
Discussion and findings during regulatory review of Program Administrators' 2013-2015 Three-Year Plans 13 In the 2013- 2015 Order approving the Program Administrators' 2013-2015 Three-Year Plans, the Department stated that non-energy impac...
AI summary The Department of Public Utilities reviewed Program Administrators' 2013-2015 Three-Year Plans, focusing on non-energy impacts in cost-effectiveness analyses. The Attorney General argued for reevaluating the TRC test's reliance on non-energy benefits, questioning their reliability, uniformity, and whether they accrue to participants. The Department considered excluding three non-energy impacts (National Security, Refrigerator/Freezer Turn-In, Economic Development) due to societal vs. participant benefit distinctions.
(1) The Department should reexamine the TRC test's reliance on non-energy impacts in its costeffectiveness analysis
AI summary The Department of Public Utilities (D.P.U.) is urged to reassess the Total Resource Cost (TRC) test's inclusion of non-energy impacts in cost-effectiveness analyses. This recommendation stems from concerns that such reliance may not align with regulatory best practices or stakeholder expectations.
Position of the Attorney General - "The Attorney General acknowledges that non-energy impacts are integral to energy efficiency programs and notes that a significant percentage of total program benefits are attributed to non-energy impact...
AI summary The Attorney General emphasizes the importance of non-energy benefits in energy efficiency programs and urges the Department of Public Utilities to reevaluate the TRC test's reliance on these benefits for cost-effectiveness analysis. The AG requests an investigation into whether non-energy impacts listed in the TRM should be included in such analyses.
Position of Program Administrators - "The Program Administrators, noting the Department's prior directive to evaluate the assumptions underlying the non-energy impacts incorporated in the cost-effectiveness analyses, assert that that they...
AI summary Program Administrators assert their non-energy impact assumptions align with TRC test requirements and are supported by data and expert testimony. They oppose the Attorney General's proposed investigation, calling it costly and inappropriate, and note the third-party vendor's role in developing these impacts.
Department Analysis and Findings - In the 2013- 2015 Order, the DPU stated that NEIs are "a well-established component of the program costeffectiveness analyses conducted by the Program Administrators. With the exception of the non-energy...
AI summary The DPU accepted Program Administrators' proposed updates to non-energy impacts, except for point (4), and expects further study through the EM&V framework. Non-energy impacts remain a key component of program cost-effectiveness analyses.
Going forward from 2013 Finding that the benefits of the non-energy impacts are quantifiable and flow to Massachusetts ratepayers, subject to the few exceptions identified above, the Department approved the non-energy impacts as proposed i...
AI summary The Department of Public Utilities (D.P.U.) approved non-energy impacts (NEIs) in the 2013-2015 Program Administrators' Three-Year Plans, citing quantifiable benefits to Massachusetts ratepayers. Energy Efficiency Guidelines also require NEIs in cost-effectiveness tests. NEIs were not contested in subsequent 2016-2018 filings.
Attachment 3: DSMAG NEBs Presentation – June 27, 2018 Date Filed: September 19, 2018
AI summary Attachment 3 from a June 27, 2018 DSMAG NEBs presentation discusses Non-Energy Benefits (NEBs) in regulatory proceedings, likely involving programs like Efficiency Nova Scotia (ENS) and considerations of Total Resource Cost (TRC), Program Administrator Cost (PAC), and Integrated Resource Planning (IRP).
Summary of ENS's Position Cont. - ENS, as part of its regulatory submission regarding NEBs, will request approval to leverage the Mass. Low-Income NEI's Report2, excluding health-care system benefits (socialized in Canada), in future cost-...
AI summary ENS seeks approval to use the Mass. Low-Income NEI's Report2 (excluding Canadian healthcare benefits) in future cost-effectiveness testing for low-income programs, pending UARB acceptance. This approach will be applied during the next DSM Resource Plan evaluation.
Positive and Negative NEBs The Industrial Group expressed a desire to know whether Non-Energy Costs, in addition to benefits, were included within the Mass. data and VEIC's work
AI summary The Industrial Group questioned whether Non-Energy Costs, alongside benefits, were included in the Mass. data and VEIC's work, highlighting concerns about comprehensive evaluation of non-energy factors.
Mass Survey Methods - For the Residential and Multifamily study two methods were used to prevent double-counting: - 1. The pro-rating of each category to the total declared value of NEBs by the respondent (refer to slide 6) - 2. The perfor...
AI summary The document outlines methods to prevent double-counting in residential and multifamily studies, including pro-rating NEBs and project-level surveys. Commercial and industrial studies do not use this method as benefits are easily monetized.
Final VEIC Report and Next Steps - A Final Report has been prepared, taking into account the changes suggested by Synapse and agreed to by ENS and VEIC in their March 12 memorandum - ENS will be reaching out to individual DSMAG members ove...
AI summary A Final VEIC Report was prepared following Synapse's suggested changes and ENS/VEIC agreement. ENS will consult DSMAG members on NEB integration in regulatory applications and seek UARB approval to use VEIC's work for future cost-effectiveness testing.
Section 1.0 Executive Summary With over $845 million (CAD) of ratepayer funds budgeted for DSM programs in Canada in 2016, 1 the importance of accurately capturing both the costs and benefits of energy efficiency programs cannot be oversta...
AI summary This executive summary emphasizes the importance of accurately capturing both the costs and benefits of energy efficiency programs, particularly Non-Energy Benefits (NEBs), which include comfort, safety, and property value increases. The document highlights the need to incorporate these benefits into cost-benefit analyses and outlines how Massachusetts' research on NEBs was selected as the most comprehensive and rigorous for application in Nova Scotia's energy efficiency portfolio.
Standard practice in efficiency cost-effectiveness testing currently dictates that non-energy benefits are separated into three primary categories based on the beneficiary of the impact including utility, program participant, and society.3...
AI summary The document discusses the standard practice of categorizing non-energy benefits (NEBs) into utility, program participant, and societal categories. It examines how different jurisdictions apply NEBs, particularly in low-income and market-rate programs, and highlights adjustments made to NEB values for Nova Scotia based on regional differences. The analysis also includes findings from studies and reports on NEBs in other regions.
2.1 Why Consider Non-Energy Benefits? To understand the importance of incorporating non-energy benefits into cost-effectiveness testing, it is helpful to understand the cost-effectiveness test used in screening. Nova Scotia uses the Total...
AI summary Nova Scotia uses the Total Resource Cost (TRC) test to evaluate the cost-effectiveness of energy efficiency investments. The TRC test compares the total present value of benefits to utilities and DSM program participants against the total present value of costs, requiring a benefit-to-cost ratio of at least one for a measure to be considered a good investment.
Table 2: Universal Principles from the National Standard Practice Manual 4 Efficiency as a Resource EE is one of many resources that can be deployed to meet customers' needs, and therefore should be compared with other energy resources (bo...
AI summary Table 2 from the National Standard Practice Manual outlines universal principles for evaluating energy efficiency as a resource. It emphasizes comparing energy efficiency with other resources, accounting for policy goals, quantifying hard-to-measure impacts, ensuring symmetry in cost-effectiveness analysis, conducting forward-looking assessments, and maintaining transparency in all practices.
2.2 Current Status of Cost-Effectiveness Screening and NEBs in the Region States and provinces in eastern North America address non-energy benefits in energy efficiency cost-effectiveness screening using a variety of mechanisms. Figure 1 i...
AI summary Eastern North American jurisdictions use varied mechanisms to incorporate non-energy benefits (NEBs) in energy efficiency cost-effectiveness screening. Figure 1 maps these approaches, referencing the National Standard Practice Manual (NSPM) as a key guideline. New York and Rhode Island recently transitioned from TRC-based tests.
easures. As a result of this research, the incorporation of NEBs into appropriate cost-effectiveness screening has been identified and accepted as a best practice in efficiency program administration. Energy efficiency cost-effectiveness s...
AI summary The document highlights the evolution of incorporating non-energy benefits (NEBs) into energy efficiency cost-effectiveness screening, referencing the California Standard Practice Manual and the 2006 U.S. EPA National Action Plan. It emphasizes the 2017 National Standard Practice Manual (NSPM) as a key resource, developed through collaboration, to update best practices in efficiency screening.
ere examined for parity across the two jurisdictions and then adjusted as necessary based on exchange rates, climate, labor rates, fuel costs, and housing prices, as described in further detail below. VEIC worked closely with EfficiencyOne...
AI summary The document outlines a methodology for adjusting Non-Energy Benefits (NEB) values across jurisdictions, considering factors like climate and labor rates. VEIC, EfficiencyOne, and Ramzi Kawar collaborated on a conservative approach for Efficiency Nova Scotia's NEB values, acknowledging potential undervaluation. The NEB Analysis Tool allows future refinements. Nova Scotia's Total Resource Cost (TRC) test excludes societal benefits, which are included in the tool for informational purposes only.
comparable property in Massachusetts than in Nova Scotia. As a result, NEBs attributed to increased property value were prorated to reflect the difference in property values between the jurisdictions. NEBs applied to Business, Not-For-Prof...
AI summary Non-Energy Benefits (NEBs) are prorated between Massachusetts and Nova Scotia due to differing property values. NEBs for BNI programs include administrative and operational savings, while residential NEBs focus on comfort and durability. Healthcare cost savings are excluded from TRC tests in Canada, as they are socialized. Low-income program benefits are also excluded from market-rate measure screenings.
Section 6.0 Effects of NEBs on Total Resource Cost Test Results
AI summary This section examines how Non-Energy Benefits (NEBs) influence the Total Resource Cost (TRC) test results, a key metric in evaluating energy efficiency programs. It likely explores the integration of NEBs into TRC calculations, their quantification, and implications for regulatory decisions.
6.1 Measure-level Effects The inclusion of NEBs in cost-effectiveness testing resulted in a correction to the cost/benefit ratio for approximately two-thirds of the measures in Nova Scotia's portfolio. The research assigned NEB values to m...
AI summary Incorporating Non-Energy Benefits (NEBs) in cost-effectiveness testing altered the cost/benefit ratio for two-thirds of Nova Scotia's energy efficiency measures, while 82 measures remained unchanged. NEB values were assigned based on statistical significance, and details are documented in Appendix B and the NEB Analysis Tool spreadsheet (Appendix C).
Appendix B: Total Resource Benefit Cost Ratio with and without NEBs TRC Test Analysis Variable Speed Drive for Kitchen exhaust fans (Demand Controlled Ventilation) Other Commercial 1.76 1.76 0% TRC Test Analysis Measure Name Target Market...
AI summary This appendix presents the Total Resource Benefit Cost Ratio (TRC) with and without Non-Energy Benefits (NEBs) for various energy efficiency measures across different market segments, including commercial, retail, and school settings. The analysis shows minimal changes in TRC values when NEBs are considered.
E-6E1 (NSPI) RIR-1 to RIR-43
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Lessons from the Field: Practical Applications for Incorporating Non-Energy Benefits into Cost-Effectiveness Screening Ingrid Malmgren, Vermont Energy Investment Corporation Lisa A. Skumatz, Skumatz Economic Research Associates, Inc. (SERA)
AI summary The document discusses practical applications for integrating non-energy benefits into cost-effectiveness screening in regulatory proceedings. It highlights insights from field experiences, focusing on demand-side management and energy efficiency, with contributions from experts in the field.
ABSTRACT The literature on non-energy benefits (NEBs) has shifted in the past several years from the recognition of these benefits by regulators and program administrators to recommendations on how best to incorporate these benefits into c...
AI summary The paper discusses the evolution of non-energy benefits (NEBs) in energy efficiency programs, emphasizing their integration into cost-effectiveness screening. It highlights three NEB classifications (participant, utility, societal) and presents case studies showing practical applications across varying regulatory frameworks. The analysis underscores NEBs as a best practice for program evaluation.
Introduction For decades, researchers have recognized that a significant portion of the value of energy efficiency programs comes not only from the energy savings, but from the programs' other impacts, their non-energy benefits. Unfortunat...
AI summary The introduction highlights the undercounting of non-energy benefits (NEBs) in energy efficiency programs, emphasizing their significant value beyond energy savings. It discusses literature on NEB classification, quantification methods, and best practices for integrating NEBs into cost-effectiveness screening. Four case studies illustrate approaches to quantify NEBs and challenges encountered.
- Stage 1 Perspectives and Basic Measurement Approaches (1994-1998): Early phases of the literature organized NEB categories into "perspectives" based on beneficiary group, and established basic measurement approaches. The NEBs were catego...
AI summary The text outlines two stages (1994-1998 and 1998-2001) of Non-Energy Benefits (NEB) research. Stage 1 categorized NEBs by beneficiary groups (participants, utilities, society) and established measurement approaches. Stage 2 expanded methodologies, including engineering estimates, incremental valuation, and surveys, emphasizing NEBs' potential to be positive or negative and focusing on equipment upgrades.
The Case for NEBs, and National Review of NEBs in Cost-Effectiveness Testing Framework Many regulatory cost-effectiveness tests are used to compare the cost-effectiveness of programs and optimize program investment. These are essentially t...
AI summary The text discusses the integration of Non-Energy Benefits (NEBs) into cost-effectiveness tests used in regulatory decision-making. It highlights the importance of NEBs in reducing bias and improving investment decisions, and outlines various approaches taken by states to incorporate NEBs, such as using adders, measuring easy-to-measure benefits, or attempting to measure all NEBs.
The New York Case Study Included in this paper, are four case studies of how non-energy benefits became incorporated into cost-effectiveness screening. If one looks at these cases chronologically, they appear to operate like a set of domin...
AI summary New York's case study details how NYSERDA incorporated non-energy benefits (NEBs) into program evaluations through scenarios, influencing other states. While NEBs are not formally used in cost-effectiveness screening by the Department of Public Service, a 2013 Public Service Commission order initiated TRC policy review. NYSERDA's research on NEBs, though not adopted in New York, informed policies in Colorado and Vermont.
The Colorado Case Study Two main factors led to Colorado's 2008 decision to adopt an NEB adder for electric and low-income electric programs: evidence from research and the engagement of interveners. Evidence in research contributed greatl...
AI summary Colorado's 2008 decision to adopt an NEB adder for electric and low-income programs was driven by research evidence and interverner support. The Colorado Public Utilities Commission (PUC) incorporated an NEB adder into a modified Total Resource Cost Test (TRC). Proxy values (e.g., 10% for electric programs) were mandated for cost-effectiveness analyses, with special consideration for low-income programs using a Utility Cost Test (UCT) if TRC fell below 1.0.
Lessons Learned Three lessons arise from the Colorado cases. First, research is a valuable tool for quantifying NEBs, and it supports conceptual understanding of their contribution to energy efficiency programs. Second, committed intervene...
AI summary Three lessons from Colorado cases highlight the value of research in quantifying NEBs, the role of committed interveners in driving policy change, and the ongoing nature of cost-effectiveness screening for energy efficiency programs, which evolves with new research and jurisdictional practices.
The Vermont Case Study Three elements contributed to the incorporation of cost-effectiveness screening in Vermont: the quantity and nature of available research regarding NEBs, a growing number of other jurisdictions incorporating NEBs int...
AI summary Vermont integrated Non-Energy Benefits (NEBs) into cost-effectiveness screening due to research, stakeholder collaboration, and jurisdictional trends. Since 2000, Vermont operated a statewide efficiency program. The 1990 Docket 5270 established the Societal Cost-effectiveness Test with 5% and 10% adders for environmental and risk benefits. In 2009, a consensus emerged on NEB value, leading to Riley Allen's recommendation for a 5% NEB adder and research partnerships.
The District of Columbia Case Study Although the population of the District of Columbia is roughly the size of the population of Vermont, there are many differences between the energy efficiency utility operated in Vermont and the DC Susta...
AI summary The District of Columbia's energy efficiency utility (DCSEU), established in 2011 under the Clean and Affordable Energy Act of 2008, differs from Vermont's model by integrating social equity goals and using the Societal Benefit Test for cost-effectiveness. Funding comes from system benefits charges and RGGI credits, with NEBs and risk adders included in evaluations.
References Allen, R. 2009. Vermont Public Service Board Memorandum, October 30. page 16. http://psb.vermont.gov/sites/psb/files/projects/EEU/screening/VEICCommentsReAllenMemo200 9-12-04.pdf - Clean and Affordable Energy Act, Council of the...
AI summary The references include legal documents, studies, and legislation related to energy efficiency, non-energy benefits, and regulatory decisions. Key entities involve Vermont and Colorado regulatory bodies, ACEEE, and Brookings Institution. Topics focus on cost-effectiveness screening, TRC, and NEBs. Cross-references include Colorado PUC decisions and Vermont PSB memoranda.
Value of Distributed Solar Electric Generation by Location Category Value (¢/kWh) Pittsburgh, PA Harrisburg, PA Scranton, PA Philadelphia, PA Jamesburg, NY Newark, NJ Atlantic City, NJ ME NY MA CT Fuel cost savings 4.1 4.1 4.1 3.8 4.2 3.9...
AI summary The table quantifies the value of distributed solar generation across U.S. locations, showing benefits like fuel cost savings, environmental value, and economic development. Total values range from 22.6 to 33.7 cents/kWh, with Maine and Massachusetts having higher totals. Data sources include academic studies and regulatory bodies.
1. Valuation of HPF Non-Energy Benefits (NEBs) in Non Low-Income Programs Non-energy benefits are generally defined as any real or perceived, financial or intangible benefit accrued by a project and not reflected in energy savings 2 . In t...
AI summary The document discusses the valuation of non-energy benefits (NEBs) in Nova Scotia's non-low-income programs. It references a 5% NEB adder recommendation by Mr. Allen, the need for more research, and mentions that jurisdictions may require considering NEBs in cost-effectiveness analyses. Studies, including Vermont's research, highlight significant non-energy economic value.
2. Valuation of HPF Non-Energy Benefits (NEBs) in Low-Income Programs Fluctuations in Heating and Process Fuel markets disproportionately affect low income households. As a result, an increasing number of state programs are incorporating N...
AI summary The document discusses the valuation of non-energy benefits (NEBs) in low-income energy efficiency programs, emphasizing their disproportionate impact on low-income households. It references historical research (SERA, NCLC) showing NEB adders can justify 17–300% adjustments. VEIC advocates for a two-tier NEB adder, with a 15% minimum increment for low-income programs, citing energy affordability and societal benefits like reduced homelessness and utility non-payments.
3. Discount Rate The National Action Plan for Energy Efficiency 14 establishes a standard methodology for the determination of an appropriate discount rate for an energy efficiency program. The Plan provides a brief review of discount rate...
AI summary The document discusses methodologies for determining discount rates in energy efficiency programs, emphasizing the use of social discount rates (e.g., California's 3% real rate) and VEIC's recommendation to use a 12-month average of 30-year Treasury yields. It highlights administrative efficiency and the need for universal discount rate application across screening tools, citing Massachusetts and Efficiency Vermont practices.
5. Cost-effectiveness Screening Rationale and Practices at the Portfolio, Program, Project and Measure level. The EEU scope of services calls for the portfolio administrator to maximize the amount of costeffective electric and heating and...
AI summary The EEU scope emphasizes maximizing cost-effective energy efficiency savings using ratepayer funds. The Vermont Public Service Board outlines three cost-effectiveness tests (Societal, TRC, and Utility) for evaluating energy-efficiency investments. The Societal test is highlighted as the primary indicator for EEU, with VEIC tasked to maximize net benefits. References include the VEIC Order of Appointment and Docket 5270.
COMPONENTS OF BENEFITS AND COSTS UNDER VERMONT'S THREE COST-EFFECTIVENESS TESTS EEU economic performance is also currently judged according to two additional costeffectiveness tests. - 1. Total Resource Benefits (TRB) are the projected mar...
AI summary The document outlines Vermont's cost-effectiveness tests for energy efficiency programs, focusing on Total Resource Benefits (TRB) and Electric Resource Benefits (ERB). TRB measures overall savings, while ERB focuses on electricity savings. Efficiency Vermont uses these tests for planning, budgeting, and reporting, with TRB as the primary economic indicator and ERB as the key performance requirement.
TABLE 2: COST-EFFECTIVENESS TEST APPLICABILITY IN VERMONT SCOPE TEST Portfolio Program Project Measure Societal ✔ ✔ ✔ ✔ Total Resource ✔ ✔ (✔) Electric System ✔ ✔ (✔) Cost-effectiveness at the program and portfolio level is assessed over t...
AI summary Table 2 outlines the applicability of cost-effectiveness tests in Vermont, noting that societal, total resource, and electric system tests apply at the portfolio, program, and project levels. It emphasizes that cost-effectiveness assessments are evaluated over time, with multi-year outcomes taking precedence over individual years, even if initial years show negative net benefits.
Project and measure cost-effectiveness is generally determined at the customer level during the course of implementing residential and business custom projects. This assessment helps Efficiency Vermont identify and promote with custom fina...
AI summary Efficiency Vermont evaluates the cost-effectiveness of residential and business custom projects at the customer level using the Societal cost-effectiveness test. This approach helps identify and promote measures that maximize net societal benefits. Annual reports summarize the results of these analyses, and standardized assumptions from the Technical Reference Manual are used for prescriptive and semi-prescriptive programs.
r of each performance period. For prescriptive and semi-prescriptive programs, measure cost-effectiveness is determined using standardized assumptions as documented in the Technical Reference Manual. - (a) Individual measure cost-effective...
AI summary The document discusses the use of standardized assumptions from the Technical Reference Manual for evaluating the cost-effectiveness of prescriptive and semi-prescriptive programs. It outlines the Societal cost-effectiveness test and other related tests used to determine program offerings. VEIC provides comments on heating and process fuel cost-effectiveness screening.
17 A list of Canadian jurisdictions that account for NEBs can be found in the chart below: Province Primary CE Test Secondary CE Test NEB Adder Description Description source British TRC - 15% In accordance with the DSM 2018_07_11 BC Colum...
AI summary The text presents a table listing Canadian jurisdictions that account for non-energy benefits (NEBs) in their cost-effectiveness (CE) tests, including primary and secondary CE tests, NEB adders, and descriptions. It includes information from British Columbia, Manitoba, and Ontario, with details on how each province values NEBs and the sources of the descriptions.
NON-CONFIDENTIAL 1 Request IR-07: 2 3 Ref: Attachment 4, page 4 of 64, paragraph 1. 4 5 Please provide a list of all Canadian jurisdictions that have "statutes and regulations 6 requiring that electricity efficiency is the least cost energ...
AI summary The response to Request IR-07 explains that while no Canadian jurisdictions explicitly require electricity efficiency to be the least cost energy procurement option, many require efficiency programs to be cost-effective, considering factors like affordability. In the U.S., 85% of ratepayer-funded efficiency programs are subject to cost-effectiveness testing.
BRITISH COLUMBIA - Regulations pursuant to Utilities Commission Act[9](#page-50-1) , R.S.B.C. 1996, c. 473, s. 1 establish explicit - cost-effectiveness testing guidelines, which includes the application of the total resource cost - test[1...
AI summary British Columbia's Utilities Commission Act establishes explicit cost-effectiveness guidelines requiring the use of the Total Resource Cost (TRC) test. The Commission must assess demand-side measures using avoided electricity and natural gas costs, aligning with long-run marginal costs for clean/renewable energy. Regulations under the Act and the Demand-Side Measures Regulations (BC Reg 326/2008) are cited.
NON-CONFIDENTIAL - (1.4) In considering a demand-side measure that, in the commission's opinion, will increase the - use of a regulated item with respect to which there is either - (a) a specified standard that has not yet commenced, or -...
AI summary The text outlines regulatory criteria for demand-side measures, allowing the commission to adjust benefits based on avoided capacity and energy costs. It establishes thresholds (40% for gas rates, 10% for electricity rates) for expenditures in expenditure portfolios to determine cost-effectiveness of measures.
E1 Responses to Nova Scotia Power Incorporated Information Requests 1 Request IR-18: 2 3 Ref: Attachment 4, page 8 of 64. 4 5 VEIC states: 6 7 8 9 10 11 "A jurisdiction's primary cost-effectiveness test should account for its energy and ot...
AI summary VEIC outlines that a jurisdiction's cost-effectiveness test should consider energy and policy goals, which may be defined in legislation, commission orders, or guidelines. Nova Scotia Power requests the enabling legislation for cost-effectiveness testing in Massachusetts, Rhode Island, and Maryland, and VEIC provides references to relevant laws in each jurisdiction.
EfficiencyOne provides electricity efficiency and conservation activities to residential, commercial and industrial clients within Nova Scotia through the provincial franchise, Efficiency Nova Scotia. Like many Demand-Side Management (DSM)...
AI summary EfficiencyOne, the administrator of Efficiency Nova Scotia, relies on the Total Resource Cost (TRC) test for approving Demand-Side Management (DSM) programs. The TRC test currently includes avoided capacity and energy costs, but stakeholders are debating how to better quantify non-energy benefits (NEBs) to improve the test. The DSM Advisory Group (DSMAG) is exploring methods to refine the TRC test for future regulatory approval.
3 Outcomes/End Results Required Completion of an analysis that provides a full suite of non-energy benefits to be quantified for Efficiency Nova Scotia's portfolio of measures. These non-energy benefits are to be provided through adoption...
AI summary The analysis requires quantifying non-energy benefits for Efficiency Nova Scotia's measures using studies from jurisdictions like Massachusetts, which have explicitly quantified such benefits. Massachusetts is highlighted as a jurisdiction with prior explicit quantification efforts.
orative relationship will have both the successful Proponent and the Research Team reporting to EfficiencyOne, as opposed to one party entering into a subcontracting relationship with the other party. This scope of work and the associated...
AI summary EfficiencyOne outlines a scope of work to refine NEB quantification in Nova Scotia's TRC test, excluding avoided customer costs and other resource benefits. NEB values will be used for cost-effectiveness testing and broader business applications, pending NSUARB approval. Future work may involve primary research and updating NEB values based on external research.
4.5 Deliverables Project deliverables must include: - 1. An initial scoping document (can be in tabular format) identifying the relative difficulty of adapting NEBs from other jurisdictions. This document will be reviewed by EfficiencyOne,...
AI summary Deliverables include an initial scoping document, a draft report with methodology and findings, a final report, and a presentation. Focus areas are adapting Non-Energy Benefits (NEBs) and Total Resource Cost (TRC) test results, involving EfficiencyOne, the Research Team, and the Proponent. The draft report must include justification for NEB modifications and interim values for non-adaptable measures.
E-10-(i)Book of Authorities
27 passages
M08888 IN THE MATTER OF The Public Utilities Act , R.S.N.S. 1989, c. 380, as amended. - and - IN THE MATTER OF an Application by EfficiencyOne for Approval of the Use of Measure Level Non-Energy Benefits Within Cost Effectiveness Testing
AI summary The document pertains to a regulatory proceeding under the Public Utilities Act, R.S.N.S. 1989, c. 380, involving EfficiencyOne's application to approve the use of measure-level non-energy benefits within cost-effectiveness testing.
gy demand and usage of alternative sources of energy. However, going green is not inexpensive. Well-intentioned efforts to promote DSM must be subject to critical analysis and planning to ensure that expenditures are justifiable and projec...
AI summary The document discusses the transition of Demand Side Management (DSM) administration to Efficiency Nova Scotia Corporation (ENS) and emphasizes the need for critical analysis and planning to ensure that DSM initiatives are cost-effective and in the public interest. The Board provides guidance to ENS on its role in overseeing DSM in the province.
that if there's any drop back with contractors, this causes a problem... ... 1 support Mel Whalen's point that a cutback in level of effort is not a good idea... [Transcript, pp. 316-318] [64] Mr. Whalen was also asked about the increased...
AI summary Mr. Whalen discusses the impact of increasing spending to meet 2011 energy savings targets, noting a small benefit for ELI customers but increased costs for Residential and General Demand classes. He also emphasizes that cutbacks in effort are not advisable.
[70] In its Reply Submission, EAC supported increased levels of DSM savings: In the past, Nova Scotian stakeholders have agreed that DSM is the better ratepayer option to pursue, not only because it offered the least cost procurement optio...
AI summary EAC advocates for increased DSM savings, citing past stakeholder consensus on DSM's cost-effectiveness compared to supply options and its benefits in reducing fuel and capacity costs for NSPI. EAC recommends approving a higher DSM budget based on proposals by consultant Mel Whalen and others.
[143] Board Counsel questioned ENSC on whether the targets were achievable: MR. OUTHOUSE: I guess, Mr. Faulkner, going forward these numbers on the face of them give me some concern that you can achieve the targets that you have projected...
AI summary Board Counsel questioned ENSC about the achievability of projected targets, expressing concern over whether the costs align with expected savings. ENSC's representative affirmed confidence in meeting targets, citing past efforts and current strategies, though acknowledging the challenges involved.
3.5.2 Incentives [66] The Board, in its questioning of E1's witnesses, and NSPI and the Industrial Group in their submissions, expressed significant concerns over the manner in which incentives are determined by E1. It would appear from th...
AI summary The Board expressed concerns about E1's incentive structure, noting over 60% of the DSM budget is allocated to incentives. Expert testimony highlighted issues with incentive justification, with NSPI and the Industrial Group arguing that some incentives lack quantitative criteria and may be influenced by vested interests. Mr. Dunsky's testimony was preferred, but concerns about incentive reasonableness remained.
subsequent update in 2009. So I believe we filed a quote from the Terms of Reference for the 2009 IRP and it lists basically what we're trying to evaluate in doing the IRP. Bullet number three says: Develop and evaluate alternative plans i...
AI summary The 2016-18 DSM Plan aligns with the 2014 IRP's objective of minimizing costs through DSM, which saves ratepayers money and reduces emissions. The IRP's Terms of Reference (2009) emphasize evaluating alternatives using total resource cost metrics. DSM is framed as a key component of long-term energy planning, balancing economic and environmental benefits.
3.5.5 Cost Effectiveness Screening [99] Although the Board has not approved the Quantum Agreement, Section 7 contains a provision which states as follows: Through collaboration within the DSM Advisory Group the parties agree to work to ach...
AI summary The Board has not approved the Quantum Agreement but allows collaboration within the DSM Advisory Group to develop a consensus on methodology for future DSM research plans. The existing TRC methodology remains in place unless a compelling case is made to abandon it.
3.5.6 Avoided Cost Analysis [101] Synapse, in its evidence, indicated that rate impact analysis should account for all factors that impact rates either positively or negatively, which would include avoided costs that might exert downward p...
AI summary Synapse argues rate impact analysis must include avoided costs, such as environmental compliance. E1 and NSPI discuss locational DSM's potential to reduce transmission costs. The Board supports collaboration on locational avoided cost considerations.
3.12 Establishment of a Standardized Filing for Future Applications to approve a DSM Supply Agreement [124] The Consensus Agreement proposed to establish a standardized filing for future applications by E1. The parties to the Consensus Agr...
AI summary The Consensus Agreement proposes a standardized filing for future DSM Supply Agreement applications by E1, including energy savings, cost-effectiveness analysis, and rate impact details. The DSM Advisory Group will review the proposal, and E1 agrees to provide technical data in future plans.
4.0 LETTERS OF COMMENT AND PUBLIC SPEAKERS [129] The Board received 37 letters of comment from various persons, who wrote individually or on behalf of organizations. With only two exceptions, all were supportive of E1 and maintaining the a...
AI summary The Board received 37 letters, mostly supporting E1's DSM plan, citing environmental, economic, and low-income benefits. Public speakers emphasized maintaining DSM programs and energy efficiency culture. One letter critiqued Dr. Peach's evidence, while concerns about industry capacity if spending decreases were raised.
aving considered the history of underspending on DSM programming, the history of overachieving savings and demand targets, and as an inducement to bring greater rigor to the calculation of incentives. [142] The Board considers that the tar...
AI summary The Board approves the E1 DSM Plan, noting its alignment with the PUA's best interests for NSPI customers. It emphasizes balancing short-term affordability with long-term costs, approves aspects of the Consensus Agreement, and retains TRC for cost-effectiveness screening while rejecting the Quantum Agreement.
7) COST-EFFECTIVENESS TESTING a) Through collaboration within the DSM Advisory Group, the parties agree to work to achieve consensus as to the methodology and assumptions of the cost-effectiveness screening test to be applied to future DSM...
AI summary The parties agree through collaboration within the DSM Advisory Group to develop a consensus on methodology and assumptions for cost-effectiveness screening tests for future DSM Resource Plans.
9) Principles of Equity a) All ratepayers are entitled to an equitable opportunity to participate in DSM programs. Low-income tenants and homeowners as well as marginally viable commercial and industrial customers are some of the most diff...
AI summary All ratepayers must have equitable access to DSM programs, with special consideration for low-income and marginalized customers. Services should address barriers they face, and cost-effectiveness must account for higher costs associated with serving these groups.
1) ESTABLISHMENT OF A STANDARDIZED FILING FOR FUTURE APPLICATIONS TO APPROVE A DSM SUPPLY AGREEMENT - a) The Parties agree to the establishment of a standardized filing for future applications, the substance of which will be vetted through...
AI summary Parties agree to establish a standardized filing for future DSM supply agreements, including program descriptions, energy savings, cost-effectiveness analysis, and rate impact details. EfficiencyOne may add relevant information, with technical data provided in its Plan filing. The DSM Advisory Group will vet the template for Board approval.
establishes that targeted emails and mailouts to a named recipient result in higher participation rates. The Board has sufficient evidence to support this proposition, and no evidence to the contrary. - [88] The Board accepts the evidence...
AI summary The Board finds that collecting Names and Emails is necessary for E1 to achieve cost-effective energy efficiency programs. Evidence shows email marketing outperforms other methods in cost and participation rates. Legislation like PUA and PIPEDA supports data use for DSM goals, balancing privacy with program effectiveness.
[169] Ms. Rodenhiser's testimony explained in simple terms the value of a distribution centre: For Central in particular, you know, Mr. Smith has always stated that his fill rates are very important. And what he means by that he doesn't wa...
AI summary Ms. Rodenhiser testified that distribution centres (DCs) enhance profitability by optimizing inventory management, ensuring product availability, and reducing costs through bulk purchasing discounts. This benefits retailers like Central by maintaining high fill rates and controlling operational expenses.
ble because they were built on estimates the Board considers too uncertain. - [217] Central's cross-appeal targets the future costs that the Board disallowed. Essentially, Central makes two arguments.
AI summary Central's cross-appeal challenges the Board's disallowance of future costs, arguing the Board's reliance on uncertain estimates was incorrect. Central asserts two arguments against this decision, focusing on the validity of the Board's cost assessments.
I. Future Cost-Effectiveness Screening We have a statutory duty to require each gas and electric company to establish any program or service that the Commission deems appropriate and cost effective to encourage and promote the efficient us...
AI summary The document outlines the statutory duty to ensure energy efficiency programs are cost-effective and discusses the transition from retrospective to prospective cost-effectiveness screening to foster innovation in Maryland's energy efficiency industry.
A. Cost-Effectiveness Tests Since the inception of the EmPOWER Maryland programs we have focused primarily on the Total Resource Cost ("TRC") test as the key predictor of cost effectiveness. 17 There are, however, four additional tests uti...
AI summary The document discusses the use of various cost-effectiveness tests, including the Total Resource Cost (TRC), Societal Cost (SCT), Ratepayer Impact Measure (RIM), Participant Cost, and Program Administrator Cost (PACT) tests, for evaluating energy efficiency programs in Maryland. The TRC is highlighted as the most widely used test, particularly in the Northeast and Mid-Atlantic regions.
B. Cost-Effectiveness Screening Levels In Order No. 84569, we directed the examination of cost effectiveness to occur at the sub-portfolio level, i.e. , collectively for residential programs and collectively for commercial and industrial (...
AI summary The document discusses the regulatory approach to cost-effectiveness screening levels in energy efficiency programs. It highlights the UARB's directive to examine cost effectiveness at the sub-portfolio level and the differing positions of MEA and BGE on the matter. BGE prefers testing at both sub-portfolio and program levels to avoid obscuring the potential of individual programs.
C. Cost-Effectiveness Assumptions Cost-effectiveness testing is carried out by a mathematical algorithm. The EmPOWER Maryland Planning Work Group is requesting Commission direction regarding certain assumptions and inputs to the algorithm....
AI summary The EmPOWER Maryland Planning Work Group is seeking guidance from the Commission on cost-effectiveness assumptions for a mathematical algorithm. While consensus was reached on adopting values from the Avoided Cost Study and PPRP, disagreement remains on DRIPE calculation, discount rate selection, and inclusion of NEBs.
1. DRIPE The question before us is how to appropriately account for the value and length of Energy and Capacity DRIPE in the cost-effectiveness screening process. With respect to the DRIPE calculations, the Work Group developed a greater l...
AI summary The proceeding discusses the appropriate valuation and length of Energy and Capacity DRIPE in cost-effectiveness screening. There is more consensus on Energy DRIPE valuation, but concerns remain about the methodology and assumptions regarding the length of Capacity DRIPE. OPC recommended approval of the Energy DRIPE methodology, subject to addressing identified issues.
Ratepayer-Funded Energy Efficiency Programs , American Council for an Energy-Efficient Economy (2011). states have opted for simple adders to reflect contributions from a subset of NEB categories. 62 As articulated by the Coalition in this...
AI summary The document discusses the inclusion of non-energy benefits (NEBs) in cost-effectiveness testing for energy efficiency programs, emphasizing the need for symmetrical consideration of both costs and benefits. The Commission is directed by statute to consider NEBs such as job creation and environmental impacts when evaluating programs. Multiple parties, including the Coalition, MEA, and OPC, support the inclusion of NEBs in the screening process.
3. Discount Rate A significant input to the cost-effectiveness screening process is the discount rate assumption. Given that each cost-effectiveness test reflects a specific stakeholder perspective in comparing the net present value of the...
AI summary The discount rate assumption is a critical factor in the cost-effectiveness screening process for energy efficiency programs. The EmPOWER Maryland programs currently use the utility's weighted average cost of capital (WACC) as the discount rate for the TRC test. However, some stakeholders, including MEA and Efficiency First, advocate for a lower societal discount rate of 4.7% for the SCT. The staff recommends using the average WACC for all cost-effectiveness tests except the SCT, while the decision supports the use of the 4.7% rate for the SCT and retains the WACC for the TRC test.
sembly enacted an energy conservation measure, then codified in Article 78, §28(g) of the Maryland Annotated Code, and later re-codified as PUA § 7-211. & lt;sup>84 PUA § 7-211(b)(1). & lt;sup>85 This study concluded that electric utility...
AI summary The text discusses the cost-effectiveness of energy efficiency programs, highlighting their lower lifecycle costs compared to traditional energy sources. It emphasizes the importance of continuing these programs to avoid increased load on the PJM system and higher reliability risks. The analysis also notes that energy efficiency remains less costly for ratepayers than paying for electricity directly.
Work Group is encouraged to continuing monitoring the developments in this arena so that a demand reduction goal could be established in conjunction with the subsequent program cycle, as appropriate. IT IS THEREFORE, this 16th day of July,...
AI summary The document discusses the use of the Societal Cost Test and Total Resource Cost Test for cost-effectiveness screening in the 2015–2017 program cycle, referencing the Exeter Avoided Cost Study and a modified four-year Capacity DRIPE assumption.