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3 SDG&E Cost-Effectiveness of Distributed Generation Technologies statewide results in Table 5-1 represent averages across IOU service territories for California’s three largest electric IOUs. The results are averaged in two different ways. First, the results are averaged arithmetically (equally) among the three electric IOUs. Second, the STRC results are averaged based on 2010 electricity sales among the three electric utilities.3 Note that the results in Table 5-1 reflect only the commercial sector; results for the residential and non- profit/governmental sectors are provided in Appendix C. According to the Standard Practice Manual, a technology is cost-effective from society’s point of view if the STRC is greater than 1.0. A STRC value of less than 1.0 implies that the expected costs of the technology exceed the expected benefits. Given the degree of uncertainty in the forecast of avoided cost benefits over the 20-year life of a DG technology, the point estimate values provided in this section should be viewed as best forecasts of the measure’s cost- effectiveness. Electricity sales for the three electric IOUs are approximately 45% for PG&E, 45% for SCE and 10% for Itron, Inc. 5-2 Results and ObservationsPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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