National Standard Practice Manual for Energy

Transcript:National Standard Practice Manual for Energy:
National Standard Practice Manual for Energy Efficiency Cost-Effectiveness Prepared by The National Efficiency Screening Project Presentation at 2019 NASEO Mid-Atlantic Regional Meeting Erin Malone, Synapse Energy Economics June 3, 2019 Overview What is the National Standard Practice Manual (NSPM)? Which states are using the NSPM? Database of State Efficiency Screening Practices (DSESP) NSPM for distributed energy resources (DERs) Questions / Discussion Slide 2 What is the National Standard Practice Manual? 3 NSPM for EE (Edition 1 - May 2017) 4 Align with applicable state policies Treat costs & benefits symmetrically Account for relevant impacts (even if hard to quantify) A state’s test may align with a traditional test…. or not What’s Covered - NSPM Outline Executive Summary Introduction Part 1: Developing Your Test Principles Resource Value Framework Developing Resource Value Test Relationship to Traditional Tests Secondary Tests Part 2: Developing Test Inputs Efficiency Costs & Benefits Methods to Account for Costs & Benefits Participant Impacts Discount Rates Assessment Level Analysis Period & End Effects Analysis of Early Retirement Free Rider & Spillover Effects Appendices Summary of Traditional Tests Cost-Effectiveness of Other DERs Accounting for Rate & Bill Impacts Glossary 5 NSPM Principles Recognize that energy efficiency is a resource. Account for applicable policy goals. Account for all relevant costs & benefits (based on applicable policies), even if hard to quantify impacts. Ensure symmetry across all relevant costs and benefits. Conduct a forward-looking, long-term analysis that captures incremental impacts of energy efficiency. Ensure transparency in presenting the analysis and the results. 6 Implementing the Resource Value Framework Involves Seven Steps 7 Cost-Effectiveness Perspectives California Standard Practice Manual (CaSPM) – test perspectives are used to define the scope of impacts to include in the ‘traditional’ cost-effectiveness tests NPSM introduces the ‘regulatory’ perspective, which is guided by the jurisdiction’s energy and other applicable policy goals 8 Relationship of Resource Value Test (RVT) to Traditional Tests – Results May Align or Not 9 Which states are using the NSPM? 10 *Numbers next to state abbreviations in map indicate number of NSPM references in state formal proceedings States Referencing and Applying the NSPM NSPM for Energy Efficiency State References and Application to Date NSPM Case Studies Case studies of NSPM application and supporting guidance documents are available on the NESP website. In Minnesota, the MN Department of Commerce’s Framework Study applied the NSPM to develop a new primary cost-effectiveness test. In Arkansas, the Parties Working