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
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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.
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Societal cost test means the benefit-cost test which evaluates demand side
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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.
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Related to Societal cost test

  • Standard Cost means any cost computed with the use of preestablished measures.

  • Total resource cost test or "TRC test" means a standard that is met if, for an investment in energy efficiency or demand-response measures, the benefit-cost ratio is greater than one. The benefit-cost ratio is the ratio of the net present value of the total benefits of the program to the net present value of the total costs as calculated over the lifetime of the measures. A total resource cost test compares the sum of avoided electric utility costs, representing the benefits that accrue to the system and the participant in the delivery of those efficiency measures, as well as other quantifiable societal benefits, including avoided natural gas utility costs, to the sum of all incremental costs of end-use measures that are implemented due to the program (including both utility and participant contributions), plus costs to administer, deliver, and evaluate each demand-side program, to quantify the net savings obtained by substituting the demand-side program for supply resources. In calculating avoided costs of power and energy that an electric utility would otherwise have had to acquire, reasonable estimates shall be included of financial costs likely to be imposed by future regulations and legislation on emissions of greenhouse gases.

  • Manufacturing Cost means ***

  • Clean coal technology demonstration project means a project using funds appropriated under the heading “Department of Energy—Clean Coal Technology,” up to a total amount of $2,500,000,000 for commercial demonstration of clean coal technology, or similar projects funded through appropriations for the Environmental Protection Agency. The federal contribution for a qualifying project shall be at least 20 percent of the total cost of the demonstration project.

  • Historical cost means the actual cost incurred in