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Cost-Effectiveness of Distributed Generation Technologies Table 3-10: Costs for the Cost-Effectiveness Tests Costs PCT TRC STRC PA Costs of DG system, interconnection, emission controls and offset purchases Included Included Included NA Increased IOU fuel transportation costs for gas- fired DG NA NA NA Included Net energy metering costs NA Program administration NA Removal costs (less salvage) Not Included Utility interconnection NA Utility rebates/incentives NA NA Included Not Included Not Included NA NA Included Not Included Not Included NA Not Included Included NA Not Included Included Nonbypassable charges (PGC, DWR, nuclear decommissioning) Included NA NA NA Operation maintenance, fuel, ongoing emission offset purchases Included Included. Included NA Reliability costs (system cost of additional ancillary services/VAR support) NA Not Included Not Included Not Included DG System, Interconnection, and Emission Controls Costs A major list of costs that are included in the PCT, TRC, and STRC are the capital costs for the equipment, installation, air pollution emission controls, and other costs associated with the capital. The evaluation team’s estimates for this capital are included in Table 3-7. These costs were estimated from data on SGIP installations and secondary research. The secondary research included published data, financial reports, industry periodicals, and interviews with manufacturers. The costs for technologies using on-site biogas fuel are higher than for the same technology using natural gas or directed biogas. The capital costs included in Table 3-7 display the effect of alternative progress ratios, as previously discussed. Increased Utility Fuel Transportation Costs Running and operating a gas-fired DG system requires additional natural gas from the gas utility and, as a result, a higher transportation charge. In California, gas-fired DG within the residential sector leads to higher natural gas fuel transportation costs by therm within the PA test. The Itron, Inc. 3-16 Critical Inputs and AssumptionsPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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