Topic:"Cost Effectiveness" in M10830

It is important to note that the RBIA examines DSM effects in isolation of utility effects such as timing of infrastructure upgrades or general rate applications; as such it provides insight into the average pressure of DSM on rates and bi...

AI summary The RBIA examines DSM effects in isolation from utility factors, focusing on average long-term rate and bill impacts across rate classes. It compares scenarios with and without DSM, highlighting non-participant bill impacts and evaluating the cost-effectiveness of DSM Plans to assess overall customer benefits.

ngs equally among all class members. - The current analysis estimates annual impacts from 2011 to 2039, when the impacts of measures installed in 2025 expire. DATE FILED: 31 October 2022 Page 5 of 40 M06733, NSUARB Order, The Public Utilit...

AI summary The document discusses the use of Rate and Bill Impact Analysis (RBIA) in evaluating Demand Side Management (DSM) investments, comparing scenarios with and without DSM initiatives. It references the NSUARB Order M06733 and the Public Utilities Act, emphasizing how RBIA informs cost-effectiveness assessments and stakeholder considerations for DSM plans.

2. UPDATE ON MODEL EVOLUTION - E1 filed its 2021 RBIA Report with the NSUARB on November 1, 2021. In response to requests by - Synapse and Resource Insight, Inc. (RI), to increase transparency in the NS Power rate analysis, - NS Power inco...

AI summary E1 submitted RBIA reports in 2021 and 2022, incorporating model updates like transfer tables, cost allocation summaries, and demand response (DR) programs. The 2023-2025 DSM Plan introduced DR, leading to model refinements by Elenchus to include fractional measure life calculations, improving accuracy in DSM impact assessments.

3.8 DEMAND RESPONSE - This section discusses how demand response has been incorporated into the E1 RBIA model and - NS Power Rate Model. - Demand Response costs, savings, measure life, and customer incentives are first calculated and - pro...

AI summary Demand response is integrated into the E1 RBIA model and NS Power Rate Model, with costs and savings calculated separately from energy efficiency. Scenarios include combinations of DSM, energy efficiency, and demand response. Demand response programs are assumed to shift consumption without energy savings, targeting peak demand reduction.

4. 2022 ANALYSIS RESULTS - Results are summarized in Appendix A and have been presented for energy efficiency and - demand response separately, as well as combined. Summary sheets for rate, bill, and - participation impacts for each applic...

AI summary The 2022 analysis results summarize energy efficiency and demand response outcomes separately and combined, with rate, bill, and participation impact summaries in Appendix B. Sensitivity analysis results are detailed in Appendix C, using representative model outputs.

Figure 2: Average Rate Impacts (2011-2039) as a Result of DSM Activities in 2011-2025 - [Figure 3](#page-29-0) illustrates the annual rate effects (difference between the no-DSM scenario and the DSM - scenario for each year), assuming that...

AI summary Figure 2 and Figure 3 analyze average rate impacts from 2011-2039 due to DSM activities, highlighting that annual rate changes are influenced by DSM cost recovery and avoided cost fluctuations. The annual impacts in Figure 3 are clarified as not reflecting actual customer rate changes experienced.

22 dollars. The 2022 RBIA estimates the effects of 2011-2025 DSM programs on customer rates and bills throughout the full lifetime of the DSM impacts as compared to a no-DSM scenario, all else being equal. Over the lifetime of measures ins...

AI summary The 2022 RBIA estimates that DSM programs from 2011-2025 will save Nova Scotia Power customers over $2.5 billion on electricity bills over the lifetime of the measures, after accounting for program costs and avoided utility costs. The RBIA also highlights that while DSM investments are cost-effective, benefits are not evenly distributed among ratepayers.

2022 Rate and Bill Impact Analysis 2022 Rate and Bill Impact Analysis Appendix C: Sensitivity Analysis A sensitivity analysis was performed to determine key output sensitivity to changes in avoided cost input values. The avoided cost value...

AI summary The 2022 Rate and Bill Impact Analysis Appendix C details a sensitivity analysis conducted by NS Power to assess the impact of varying avoided costs on unit revenues. Three scenarios—Base, High, and Low—were evaluated by adjusting avoided costs ±25% across capacity, energy, transmission, distribution, and carbon. Results were integrated into E1's RBIA model for further analysis.

Figure 1: Avoided Costs Sensitivity Analysis: Average Rate Impacts (2011 – 2039)

AI summary Figure 1 presents a sensitivity analysis of avoided costs and their impact on average rates from 2011 to 2039. It examines how variations in demand-side management (DSM) and other factors influence rate structures, reflecting key considerations in regulatory proceedings related to energy efficiency and cost allocation.

Figure 4: Avoided Costs Sensitivity Analysis: Average Total Customer Bill Impacts (2011 – 2039)

AI summary Figure 4 presents a sensitivity analysis of avoided costs and their impact on average total customer bills from 2011 to 2039. It evaluates how variations in demand-side management and other factors influence billing outcomes over time.

6 Avoided Costs - 7 Avoided costs are calculated at the system level using evaluated DSM savings and avoided cost - 8 rates in four categories: generation, transmission, distribution, and energy. In addition, avoided - 9 cost of carbon was...

AI summary Avoided costs are calculated system-wide using DSM savings and rates for generation, transmission, distribution, and energy. A With Carbon sensitivity analysis also incorporates avoided carbon costs.

3.0. Applied Approach The relative changes in rates due to DSM are determined by conducting two separate rate setting analyses under the "With DSM" and "No DSM" scenarios. The rate setting process under each scenario is broken out by two s...

AI summary The analysis compares rate changes under 'With DSM' and 'No DSM' scenarios by separating FAM-related and non-FAM-related costs. This approach evaluates DSM's impact on rate structures through distinct cost determination processes.

"E1 Data Inputs" tab This tab includes information provided to NS Power by E1 on DSM Program measures and avoided unit costs, all of which are used in determination of class unit costs and revenues.

AI summary The 'E1 Data Inputs' tab details data provided by E1 to NS Power regarding Demand Side Management (DSM) program measures and avoided unit costs, which are critical for calculating class unit costs and revenues.

"Total-Savings" tab The "Total-Savings" tab provides a sum of annual class savings in energy and demand usage at the generator's gate and customer's meter. In addition, class demand savings at the high side of the bulk power substation are...

AI summary The 'Total-Savings' tab calculates annual energy and demand savings at the generator's gate, customer's meter, and bulk power substation. These savings determine avoided fuel, generation, transmission, and distribution costs. FAM-related costs use unit avoided fuel costs multiplied by energy savings, while non-FAM costs use avoided infrastructure costs multiplied by demand savings.

"COSS Outputs" tab The "COSS Outputs" tab provides two sets of bar graphs of percentage change in class rates due to DSM over the period 2011–2035 calculated as either arithmetic or load-weighted rate changes. The graphs within each set ar...

AI summary The 'COSS Outputs' tab presents bar graphs analyzing percentage changes in class rates due to Demand Side Management (DSM) from 2011–2035, using arithmetic or load-weighted methods. It breaks down effects on unit base cost revenues and includes a control panel to test inflation and avoided cost scenarios on unit costs and revenues.

2. E1 REPLY TO STAKEHOLDER WRITTEN COMMENTS - E1's reply to the Stakeholder Comments is separated into the issues noted by participants in this - matter as follows: - 2022 RBIA changes and results - Future RBIA reporting - Avoided costs -...

AI summary E1 addresses stakeholder comments on 2022 RBIA changes, future reporting, avoided costs, carbon cost modeling, and demand response. An error in Appendix A's Excel file was corrected, leading to revised demand response rate impacts.

3. 2022 RBIA CHANGES AND RESULTS - Synapse noted that E1 made three changes to the 2022 historical RBIA which were first included - in the forward-looking RBIA for the 2023-2025 DSM Plan. The changes were: DATE FILED: January 19, 2023 Page...

AI summary In 2022, E1 updated the RBIA by including avoided carbon costs, demand response, and precise measure life assumptions. Synapse noted lower rate increases compared to 2021 due to carbon cost inclusion, citing reasonable increases and higher bill savings. E1 emphasizes maximizing participation to offset rate impacts through DSM initiatives.

5. AVOIDED COSTS - Synapse asserted that, "a "no DSM" case is necessary for accurate R&BIA modeling. NSPI is in the - process of updating the 2020 IRP to reflect the impacts of recently adopted legislation and other - changes. As part of t...

AI summary Synapse argues a 'no DSM' case is essential for accurate R&BIA modeling, requesting NSPI updates to the 2020 IRP and DSMAG involvement. NS Power states it will analyze DSM scenarios and calculate avoided costs post-Evergreen IRP, not within its scope. E1 supports Synapse's request for a 'no-DSM' case and DSMAG engagement.