www.advancedenergy.org

North American Energy Standards BoardBusiness Practice Standard

Carl L. Wilkins919 857-9008

cwilkins@advancedenergy.org

Title of Request

Standardized Method for Quantifying Benefits, Savings, Cost Avoidance and/or the Reduction in Energy Demand Derived from the Implementation of Demand Side Management and Energy Efficiency Programs

Background

Advanced Energy history>1980 non-profit serving utilities and customers in NC>Energy efficiency and renewables>Three IOU’s, NC cooperatives

Annual Report to the NC Utilities Commission>“What if we could easily quantify EE benefits and

streamline the process for arriving at consensus?”

Details of Request

Does a standardized method for quantifying the energy and demand impacts for a particular measure exist? (pre-program implementation)

Will the method be transparent and open to peer review? The same questions apply to benefits as well Can a set of standards bring clarity and reduce the amount

of regulatory debate on the issue?

Details of Request (cont’d)

Can all parties have confidence in the outcome of regulatory proceedings if there are standards for assessing the benefits of the EE/DSM options?

Observation

Increasing energy costs, request for new base-load generation, climate change

Increased interest in utility EE and DSM Regulators are asked to give strong consideration to

supply-side versus demand-side options to mitigate need for future generation

Perception that energy efficiency is either overstated or underappreciated

Observation (cont’d)

Regulatory proceedings have revived long standing debates around utility resource plans

This is not new ground (energy efficiency déjà vu) “Middle ground” is hard fought All sides suspect the other’s numbers and

believability

Observation (cont’d)

Standard cost effectiveness tests are used, but in the domain of the utility

The inputs to cost effectiveness test are standard, but sometimes perceived as subjective

The outputs of cost effectiveness tests are standard, but can vary based on assumptions

The Challenge

Is this request legitimate, or misinformed observation? Pre-program versus post-program evaluation? Is this request unique, or in the purview of another

organization (International Performance Measurement and Verification Protocol, NAPEE, etc.)?

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