Program Expenditures

Budget

The table below shows initial estimates of annual program costs. These will be further refined once the utility issues a request for proposal and receives bids from contractors for exact costs.

Item and assumptions	Estimated Cost
Administrator Costs
Contract administration, marketing, and regulatory reporting, and program evaluation (limited to a maximum of 20% of budget)	$1,188,000
Installation, service, and operation costs
Includes hardware, software, installation costs, communications, and customer incentives	$4,752,000
Total Annual Program Budget	$5,940,000

Incentive Structure

All customers participating in the program should receive the equipment and installation free of charge from the utility. In addition, the customer should receive a one-time incentive payment at the end of each year of program participation. The program administrator shall set a program incentive, which may include an annual program incentive, override penalties, and/or on-peak interruption bonuses.