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Cost-Effectiveness of Distributed Generation Technologies technology-specific GHG emission rates are listed in Table 3-6. The emissions were valued according to the mid-GHG values forecast in the E3 avoided cost model. Program Administration Costs These costs are used in the PA, TRC, and STRC benefit-cost models. They were derived from the installed kW of SGIP projects divided by the total program administration expenses reported to the CPUC on an annual basis for the years 2007-09. This average PA cost per kW installed was then applied to the technology being installed. Reliability Costs For these costs we assumed that the DG systems did not add to reliability of services, so it was neither a benefit nor a cost. Removal and Salvage Costs These costs were not included in the model. The evaluation team assumed the systems were run for 20 years and their present value removal costs were negligible. Utility Interconnection Costs While there is a subsidy for the interconnection of DG and the net metering bills, we assumed that these costs were not material for the analysis; therefore, we did not include them. Utility Rebates/Incentives The incentive rebates identified as a benefit for the participant listed above is a cost to the PAs; therefore, it is included in the cost for the PA test. The incentive values per Watt can be found in Table 3-8. 3.2 Cost-Effectiveness Methodology 3.2.1 Societal Total Resource Cost Test and the Total Resource Cost Test The Societal Test can be considered a variant of the SPM’s Total Resource Cost Test (STRC). The STRC measures the net costs of a DG program as a resource option based on the total costs of the program, including both the participants' and the utility's costs. The STRC and the TRC tests help to determine if society’s total resources are improved by a technology or a program. The Societal Benefit-Cost Ratio is given by: Societal Benefit-Cost Ratio = SocietalBenefits SocietalCosts Itron, Inc. 3-20 Critical Inputs and AssumptionsPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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