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5 Results and Observations Cost-effectiveness of distributed generation (DG) technologies is determined in accordance with tests developed under the modified standard practice manual approach outlined in Decision 09- 08-026. Three tests are used in this study: the societal version of the Total Resource Cost test (STRC), the Participant test (PCT), and the Program Administrator (PA) test. The STRC looks at the overall cost-effectiveness of DG technologies to society. The CPUC has directed that only DG technologies in which the societal benefits outweigh societal costs will be eligible for incentives. The PCT examines the cost-effectiveness of the DG technology to the participant. If costs outweigh benefits, the technology is not cost-effective to the participant. The PCT can be used to help design an approach on incentives to be paid to the participant. The PA test identifies the cost-effectiveness of the DG technology to the PAs. The following sections present the STRC, PCT, and PA test results. 5.1 Societal TRC Results The STRC looks at the cost-effectiveness of DG technologies from society’s point of view. The SGIPce model generates STRC results for all the examined DG technologies from 2009 through 2020. However, the STRC results for two years during this time period are of particular importance: the current year (2010) and (2016). The value of the STRC in 2010 determines the current cost-effectiveness of the technology. The value in 2016 determines the cost effectiveness of the technology in the year the SGIP is designated to expire. Table 5-1 is a summary of the combined IOU-specific and statewide STRC results for 2010 and 2016 by DG technologies deployed in the commercial sector.1 SGIPce generates STRC results not only by DG technology but also by electric IOU territory2, sector (e.g., commercial, residential, or government/non-profit) and geographical region (“coastal” and “inland”). The 1 2 The STRC was calculated without an incentive. Incentives are considered transfer payments that do not impact the TRC. Because rebates are federally taxable income and the Decision stated that the cost-effectiveness models must include the federal tax implications, state incentives have an impact on the cost effectiveness due to the federal tax implications. The cost-effectiveness results in Table 5-1 were evaluated without incentives to determine the cost-effectiveness of the technologies on an equal footing, the cost-effectiveness without any rebate tax benefits. The SGIPce model does not generate results for the Southern California Gas (SCG) service territory even though SCG is very active in the SGIP. Due to way in which core and non-core gas costs and prices are handled in SGIPce, it was not possible for the model to generate comparable gas-based cost-effectiveness results for SCG. Itron, Inc. 5-1 Results and ObservationsPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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