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3 Critical Inputs, Assumptions, and Cost-Effectiveness Methodology 3.1 Critical Inputs and Assumptions The Self-Generation Incentive Program Cost-Effectiveness (SGIPce) model has a number of inputs by technology (e.g., capital costs) as well as global constants (e.g., interest rates) that are applied to each technology and that impact the benefits and costs of the technologies. The inputs used in SGIPce are listed in Attachment A of CPUC Decision (D.) 09-08-026.1 The DG cost-effectiveness evaluation and SGIPce model analyzed DG technologies using four cost-effectiveness tests: the Participant Test (PCT), the Total Resource Test (TRC), the Societal Total Resource Test (STRC), and the Program Administrator Cost Test (PA). The evaluated technologies and key assumptions were identified in concert with the CPUC. The technologies examined are those currently eligible in the SGIP, technologies formerly included in SGIP, and additional technologies that the CPUC identified as possible candidates for future SGIP technologies. Possible candidates for future SGIP technologies were based on input of parties from workshops and comments from the CPUC’s DG Rulemaking (R.)10-05-004. Later sections of this report show the model results based on a standardized set of run assumptions. The SGIPce model has been available for download to the public since November 2010. The application is dynamic, enabling stakeholders to modify the model and make model runs using alternative assumptions. That model is located on the CPUC website: http://www.cpuc.ca.gov/PUC/energy/DistGen/sgip/proposal_workshops.htm. 3.1.1 Critical Inputs—Benefits Table 3-1 lists the benefits for the various cost-effectiveness tests as outlined in Attachment A of D.09-08-026. The table is followed by a section describing the source of the data and critical assumptions made by the evaluation team. 1 http://docs.cpuc.ca.gov/word_pdf/FINAL_DECISION/105928.pdf Itron, Inc. 3-1 Critical Inputs and AssumptionsPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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