Addressing Non-Energy Benefits in the Cost-Effectiveness Framework

Date Published

January 1, 2011

Abstract

It is widely argued that there are benefits associated with and attributable to utility demand-side programs beyond direct energy savings.  There are three classes of these non-energy benefits (NEBs) based on “beneficiary” or “perspective” (Skumatz et al. 2009). Participant NEBs accrue to the program participants (such as reduced building operating costs, increased value, comfort, health, and safety). Utility NEBs are realized as indirect costs or savings to the utility (such as bill payment improvements, infrastructure savings, etc.). Societal NEBs represent indirect program effects beyond those realized by ratepayers/utility or participants, and they accrue to society at large (such as job creation, tax receipts growth, labor productivity, housing value, neighborhood stability, and reduced emissions and other environmental benefits).  This paper considers various methods for addressing NEBs in the CPUC’s cost-effectiveness tests for demand-side resources.

Authors

Organization:

California Public Utilities Commission

Author Names:

Vine, Ed