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The yearly fuel cost is given by: 12 Cost-Effectiveness of Distributed Generation Technologies Costs The PA test includes total resource costs for DG technologies. Total resource costs include three elements: 1) rebates, 2) utility-provided fuel costs, and 3) program administration costs, including marketing, measurement, and evaluation costs. A short description of these costs and the sources of their valuation are listed below. Rebate or incentive costs, valued at current SGIP incentives for 2010. For 2011-2016 incentives were developed for evaluated technologies that did not have SGIP incentives in 2010. Fuel costs valued by the E3 gas commodity forecast for sectors consuming utility gas. Program and administrative costs derived from actual SGIP costs per MWh produced. The present value of technology-specific program administrative costs is given by: ProgramAdministrativeCostsi =Incentivei+UtilityFuelCosti+AdminCost The incentives are modeled as first year or upfront incentives consistent with SGIP incentive available in 2010. For the 2011-2016 forecast of cost-effectiveness, the incentives are adjusted for those technologies with no incentives in 2010. The utility fuel cost component of the costs is given by: T UtilityFuelCostit UtilityFuelCosti =t∑=1 (1+d)t FuelCostit = m∑= 1ThermsUseimt AvCostGasimt where ThermsUseimt is the monthly usage of natural gas for the DG application and AvCostGasmtis the monthly commodity avoided cost of gas for customers who receive their gas from the utility. Commercial and government customers are modeled as non-core gas customers who receive their gas from a wholesale distributor. Residential customers are modeled as receiving their gas from the utility. . Itron, Inc. 3-32 Critical Inputs and AssumptionsPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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