Topic:"Resource Costs" in M03669

The Resource Acquisition Framework In the resource acquisition framework developed in the late 1970's through the 1980s by Amory Lovins, Roger Sant, and other pioneers of early Demand Side Management (DSM), the basic proposition is that it...

AI summary The Resource Acquisition Framework emphasizes that Demand Side Management (DSM) can be cheaper than generating energy, using CFLs as an example. DSM must pass strict cost tests to compete with new power plants. The Total Resource Cost Test (TRC Test) ensures DSM projects are cost-effective. Overcoming market barriers is crucial for customer participation in energy efficiency programs.

Conclusions We believe it is clear that the TRC,17 as currently applied, has significant flaws. Because of the asymmetrical application of the TRC test to energy efficiency resources, but not other utility resource options, efficiency reso...

AI summary The document critiques the current Total Resource Cost (TRC) test for systematically disadvantaging energy efficiency programs due to asymmetrical application. It argues that switching to the Payback Analysis Criteria (PACT) is the best solution to ensure cost-effective energy efficiency, especially as objectives for energy savings expand. Non-energy benefits are also highlighted as critical to consider for a more accurate assessment of program cost-effectiveness.

USE OF TOTAL RESOURCE COST TEST BY PROGRAM - Q. Please summarize your conclusions and recommendations with regard to the manner in - which Efficiency Nova Scotia proposes to use the Total Resource Test on a program basis. - A. ENSC has pro...

AI summary ENSC proposes using the Total Resource Cost (TRC) test on a program rather than measure basis, arguing it better captures non-cost benefits like reliability. While ENSC's case is reasonable and supported by precedents, concerns remain about measures with TRCs near or below 1.0, particularly in capital-intensive programs. Stakeholders recommend explicit criteria for including such measures in programs or pilots.

us on implementation strategies, or is it of the assessment, please provide the model that ENSC has in mind. 5 intended that the model itself will be part of the assessment? If the model is not part b) Please elaborate on the nature of the...

AI summary The text contains regulatory requests addressing DSM program cost methodologies, program structure changes, cost allocation, and TRC application levels. Key issues include avoided cost consistency, historic savings derivation, industrial project inclusion, third-party qualifications, and program classification rationale.

Request IR-23 With respect to Appendix C, page 3, Paragraph 2, please elaborate on why it is recommended that the TRC be applied at the plan level rather than the program level.

AI summary The request seeks clarification on the rationale for recommending the application of Total Resource Cost (TRC) at the plan level rather than the program level in Appendix C, page 3, Paragraph 2.

CONCLUSION On behalf of the Avon Group, we recommend: - (a) the budget as filed, be approved, subject to either a deduction for budgeted DSM expenditures assigned to the large industrial class (or a reallocation). It is recommended that 20...

AI summary The Avon Group recommends approving the budget with adjustments to DSM expenditures for large industrial customers, confirming non-program savings inclusion, directing ENSC to engage directly with industrial clients, confirming multi-sector cost allocation, scrutinizing shared services, and requiring rate impact information in future DSM filings.

[57] Further, Mr. Whalen recommends: ... that ENSC adjust its plan to provide energy savings from its programs that are at least equal to the 2011 plan. Such an approach sustains the momentum of the 2011 plan and makes the achievement of t...

AI summary Mr. Whalen recommends ENSC adjust its plan to achieve energy savings equal to the 2011 target, increasing 2012 spending to $53.4M. This would result in incremental savings of 158.6 GWh and 29.4 MW, with cumulative savings of 487.6 GWh and 86.4 MW. He argues maintaining the 2011 target sustains momentum and makes 2013 targets achievable, citing comparable economics and TRC/PAC metrics.

n details are presented in Appendix B. - 7. The individual DSM Cost Recovery Rider charges, both DCRR and DCRR BA, by class are presented for approval in Schedule A of the 2012 DSM Cost Recovery Rider 4 The GRLF load sales as used for the...

AI summary The document discusses the DSM Cost Recovery Rider (DCRR) and its balance adjustment (DCRR BA), including how charges are calculated and presented for approval. It refers to the 2012 DSM Cost Recovery Rider, the 2009 DSM Settlement Agreement, and the allocation of expenditures among rate classes. The approach will be reviewed after three years, with Nova Scotia Power anticipating a review of the cost allocation methodology beyond 2012.

- 2. Joint Direct Program Cost Accounts: Some accounts contain costs that can be directly allocated to programs but it is necessary to allocate the costs in the account to two or more programs. While many transactions in these accounts can...

AI summary The text outlines three cost allocation approaches: joint direct program costs (allocated invoice-by-invoice by ENSC staff), common program costs (proportionally allocated to ratepayer-funded programs), and administrative/operational overhead costs (allocated to 'electric and other fuel mandates' via pro rata methods). These methods ensure fair distribution of shared expenses across programs.