Page 222 - Sustainable Cities and Communities Design Handbook

196 Sustainable Cities and Communities Design Handbook

The B TRC ,C TRC , LCRC, and IMP terms are further defined as follows:
N N
UAC t þ TC t UAC at þ PAC at
X X
B TRC ¼ þ
t 1 t 1
t¼1 ð1 þ dÞ t¼1 ð1 þ dÞ
N
X
PRC t þ PCN t þ UIC t
C TRC ¼
t 1
t¼1 ð1 þ dÞ
N
PRC t þ PCN t TC t
X
LCRC ¼
t 1
t¼1 ð1 þ dÞ
P I

N DEN it or ðDDN it where i ¼ peak periodÞ
i¼1
X
IMP ¼
t 1
t¼1 ð1 þ dÞ
(All terms have been defined in previous sections).
The first summation in the B TRC equation should be used for C&LM
programs. For fuel substitution programs, both the first and second summa-
tions should be used.
PROGRAM ADMINISTRATOR COST TEST
Definition
The PAC Test measures the net costs of a DSM program as a resource option
based on the costs incurred by the program administrator (including incentive
costs) and excluding any net costs incurred by the participant. The benefits are
similar to the TRC benefits. Costs are defined more narrowly.

Benefits and Costs

The benefits for the PAC Test are the avoided supply costs of energy and
demanddthe reduction in transmission, distribution, generation, and capacity
valued at marginal costsdfor the periods when there is a load reduction. The
avoided supply costs should be calculated using net program savings, savings
net of changes in energy use that would have happened in the absence of the
program. For fuel substitution programs, benefits include the avoided supply
costs for the energy-using equipment not chosen by the program participant
only in the case of a combination utility where the utility provides both fuels.
The costs for the PAC Test are the program costs incurred by the admin-
istrator, the incentives paid to the customers, and the increased supply costs for
the periods in which the load is increased. Administrator program costs
include initial and annual costs, such as the cost of utility equipment, operation