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TABLE 10.1 Cost-Effectiveness Tests
Primary Secondary
Participant
NPV (all participants) Discounted payback (years)
BCR
NPV (average participant)
Ratepayer Impact Measure
Lifecycle revenue impact per unit of energy Lifecycle revenue impact per unit
(kWh or therm) or demand customer (kW)
Annual revenue impact (by year, per
kWh, kW, therm, or customer)
First-year revenue impact (per kWh, kW,
therm, or customer)
NPV BCR
Total Resource Cost
NPV BCR
Levelized cost (cents or dollars per unit
of energy or demand)
Societal (NPV, BCR)
Program Administrator Cost
NPV BCR
Levelized cost (cents or dollars per unit
of energy or demand)
BCR, benefitecost ratio; NPV, net present value.
some programs). It is reasonable to expect different levels and types of results
for different regulatory proceedings or for different phases of the process used
to establish proposed program funding levels. For example, for summary ta-
bles in general rate case proceedings at the CPUC, the most appropriate tests
may be the RIM lifecycle revenue impact, TRC, and PAC Test results for
programs or groups of programs. The analysis and review of program pro-
posals for the same proceeding may include Participant Test results and
various additional indicators of cost effectiveness from all tests for each in-
dividual program element. In the case of cost-effectiveness evaluations con-
ducted in the context of integrated long-term resource planning activities, such
detailed examination of multiple indications of costs and benefits may be
impractical.