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whether energy efficiency is cost-effective overall. The distributional tests (PCT, PACT, and RIM) are then used as secondary measurements. The PCT, PACT, and RIM help to answer whether the selection of measures and design of the program is balanced from participant, utility, and non-participant perspectives, respectively (EPA 2008). It is important to note that there is no single best test for evaluating the cost-effectiveness of energy efficiency. Overall, multiple tests provide a comprehensive approach to evaluating cost-effectiveness of energy efficiency. However, jurisdictions seeking to increase efficiency implementation may choose to emphasize the PACT, which compares energy efficiency as a utility investment on a level equal to other resources. Historically, reliance on the RIM test has limited energy efficiency investment because it is the most restrictive of the five cost-effectiveness tests (EPA 2008). More detailed information on cost-effectiveness tests and their implementation is available from the U.S. EPA in Understanding Cost-Effectiveness of Energy Efficiency Programs: Best Practices, Technical Methods, and Emerging Issues for Policy-Makers. A Resource of the National Action Plan for Energy Efficiency. Available at http://www.epa.gov/cleanenergy/documents/cost-effectiveness.pdf 8PDF Image | Energy Efficiency Resource Standards
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