Utility cost test definition
Utility 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 measure or program from the utility revenue requirement perspective. Present values are calculated using the utility’s discount rate. Benefits are the sum of the present values of each year’s utility avoided capacity and energy costs (excluding the externality factor) over the useful life of the measure or program. Costs are the sum of the present values of the utility’s program costs, customer incentives, and any increased utility supply costs for each year of the useful life of the measure or program. The calculation of utility avoided capacity and energy and increased utility supply costs must use the utility costing periods.
Utility cost test means a standard that is met for an investment in energy efficiency portfolios or programs if, on a net present value basis, the total avoided supply‑side costs, including representative values for electricity or natural gas supply, transmission, distribution, and other associated costs, are greater than the total costs incurred by the program administrator, including program costs and incentive costs borne by the administrator.
Utility cost test means a cost-effectiveness screening test that measures cost-effectiveness from the perspective of the Puerto Rico electric system.
More Definitions of Utility cost test
Utility cost test means a benefit-cost test where benefits are avoided utility costs resulting from the demand-side management program, and costs are those incurred by the EDU, including incentive costs and excluding any direct customer costs. The utility cost test is also known as the program administrator cost test.
Utility cost test means a method of determining the overall economic efficiency of a demand management program from the perspective of the utility
Utility cost test means the benefit-cost test which measures the net costs of a