Avoided Cost Calculator Workshop Day 2 October 4

Avoided Cost Calculator Workshop Day 2 October 4, 2005 Energy and Environmental Economics, Inc.

Potential Calculator “Quick Fixes” n n n n Counting period inconsistencies for peak demand reporting Standard Practice Manual conformance DEER lighting error coprrection (SDG&E only) SCE motor summer peak k. W correction Allocation of gas program savings between years Revision to accommodate decimal EULs. Consistent Calculator across IOUs ¨ n Consistent interface and calculations, versus consistent input data Other ideas?

Counting Issues n What is the question? ¨ Energy n n How much reduction did I see this year? (what did I harvest? ) How much reduction will I see because of what I did this year? (how much did I plant? ) ¨ Peak n n Savings for a Year reductions How much reduction at a certain point in time (e. g. , for procurement) How much reduction implemented (to gauge progress toward long term goals)

Counting Issues n How do I treat measures with short lives? ¨ Assume I install a widget that lasts one year, and I repeat this every year for 2006 through 2008. Assume this widget gets me 1 k. W. n n n Do I claim 3 k. W of installed devices? I did put in three 1 k. W devices. Do I claim 1 k. W, since I only saw 1 k. W of load reduction due to that widget in any year? How do I count committed versus realized measures?

Potential Calculator “Quick Fixes” n n n n Counting period inconsistencies for peak demand reporting Standard Practice Manual conformance Correct DEER lighting error (SDG&E only) SCE correction of summer peak k. W application for motor Allocation of gas program savings between years Accommodate decimal EULs. Size reduction Consistent Calculator across IOUs ¨ Consistent interface and calculations, versus consistent input data

Potential Calculator “Quick Fixes” n n n n Counting period inconsistencies for peak demand reporting Standard Practice Manual conformance DEER lighting error coprrection (SDG&E only) SCE motor summer peak k. W correction Allocation of gas program savings between years Revision to accommodate decimal EULs. Consistent Calculator across IOUs ¨ n Consistent interface and calculations, versus consistent input data Other ideas?

Consistent across IOUs

Potential Calculator “Quick Fixes” n n n n Counting period inconsistencies for peak demand reporting Standard Practice Manual conformance DEER lighting error coprrection (SDG&E only) SCE motor summer peak k. W correction Allocation of gas program savings between years Revision to accommodate decimal EULs. Consistent Calculator across IOUs ¨ n Consistent interface and calculations, versus consistent input data Other ideas?

Longer Term Items n Recap of Draft Report Recommendation Requirements (Feb 20, 2006 draft report) ¨ The definition of peak demand n Common definition n Agreed upon calculation ¨ Refinements reductions to avoided cost methodology and tie in with other proceedings ¨ Consistency in underlying load shape data and the methods by which that data is translated into peak savings estimate ¨ Display of load shapes

Longer Term Items continued n n n Cross walk to other proceedings such as resource adequacy and procurement Availability and sufficiency of load data going forward Acquisition and allowance for new load shapes EUL updates Size reduction

Update on DR methodology work