Societal cost test definition
Societal cost test means an economic test used to compare the present value of the benefits to the present value of the costs over the useful life of an energy efficiency or demand response measure or program from a societal perspective. Present values are calculated using a 12-month average of the 10-year and 30-year Treasury Bond rate as the discount rate. The average is calculated using the most recent 12 months at the time the utility calculates its cost-effectiveness tests for its energy efficiency or demand response plan. Benefits are the sum of the present values of the utility avoided supply; nonenergy benefits; and energy costs, including the effects of externalities. Costs are the sum of the
Societal cost test means a cost-effectiveness that measures the costs and benefits of an energy efficiency program from the perspective of all members of society. The costs in this test include the net costs to the program administrator and participants. The benefits include all of the utility system and participant benefits, as well as monetized environmental and nonenergy benefits, including all externalities.
Societal cost test means the benefit-cost test which evaluates demand side
More Definitions of Societal cost test
Societal cost test means a cost-effectiveness test that measures the net economic benefit to the utility service territory, state, or region, as measure by the total resource cost test, plus indirect benefits such as environmental benefits.