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4 SGIPce Model Approach and Methodology 4.1 Overview In accordance with the adopted decision on distributed generation (DG) cost-effectiveness methodology,1 the Energy Division of the California Public Utilities Commission (CPUC) contracted for the development of two models and studies that could evaluate the cost- effectiveness of DG technologies or a portfolio of DG technologies (i.e., DG program). One model is designed to review the cost-effectiveness of solar photovoltaic (PV) technologies installed under the California Solar Initiative (CSI) program. The second model is designed to review a broader set of DG technologies installed under the Self-Generation Incentive Program (SGIP). The resulting SGIP cost-effectiveness model (SGIPce) provides a publicly available modeling tool built in Microsoft Excel 2007 for this purpose. This section is designed to give the reader an overview of the SGIPce model and discusses the approach, objectives and structure of the model. It also looks at the various components of the model and describes how they contribute to the desired result. Note that this is not a User Guide for the model; the SGIPce User Guide is supplied separately in Appendix B. The User Guide will also be distributed with the model itself. 4.2 Model Objectives The objectives of the SGIPce model are as follows: Uses the Standard Practice Manual tests modified in accordance with the ALJ ruling to evaluate cost-effectiveness (08-03-008).2 Tests implemented are: 1 2 California Public Utilities Commission, Decision 09-08-026, August 2009, pg. 4. http://docs.cpuc.ca.gov/word_pdf/FINAL_DECISION/105926.pdf ─ Participant Cost Test, ─ Total Resource Cost Test, ─ Societal Total Resource Cost Test, and ─ Program Administrator Cost Test. California Public Utilities Commission, R.08-03-008, June 19, 2009. Itron, Inc. 4-1 SGIPce Approach and MethodologyPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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