Time-sensitive valuation of electricity savings in the Southwest - Smart Energy Decisions

Energy Efficiency, Power Prices, Regulation  -  September 27, 2017

An evaluation of efficiency programs in the Southwest

This report from the Southwest Energy Efficiency Project examines the methodologies that electric utilities in the Southwest use to value the avoided costs (i.e., determine the benefits) of their energy efficiency and other demand-side management programs. The report also presents the actual value of energy savings for different types of programs implemented by the southwest utilities and provides recommendations for future valuation of energy savings. 

Within its analysis, this paper reviews how the utilities in the Southwest determine avoided generation capacity and generation capacity costs, avoided energy costs, transmission and distribution investment deferrals, and any value for avoided pollutant emissions. The report concludes with a set of recommendations for the valuation of energy savings in utility resource planning and DSM program cost-effectiveness analysis. 



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