In order to determine which DSM programs should continue as part of the gas utilities’ DSM plans, the gas utilities assess their programs using a process to calculate and test the cost-effectiveness of delivering a program. As part of the Draft Report, the Board sought stakeholder comment on the appropriateness of using the Total Resource Cost (“TRC”) test and Program Administrator Cost (“PAC”) test to calculate cost-effectiveness and screen potential DSM programs.
The TRC test measures the energy related benefits and costs of DSM programs experienced by both the gas utility system and program participant for as long as those benefits and costs persist. The PAC test measures the gas utilities’ avoided costs and the costs of DSM programs experienced by the gas utility system. The Board suggested that the TRC test be used as the primary cost-effectiveness test and that the gas utilities can use the PAC test as a secondary reference tool, assisting with prioritizing which programs deliver the most effective results.