Flexible Cost-Effectiveness Inputs

The Commission currently does not have standardized and adopted values for two crucial sets of inputs to the standard cost-effectiveness tests. These are:

· Incremental Measure Costs

· Per-Unit Energy Savings Estimates

The most current standard source available for estimates of each is the CEC's Database for Energy Efficient Resources (DEER), research for which is funded by the Commission. This database is updated periodically and available over the Internet at http://www.energy.ca.gov/forecasting/DEER.html, but may not offer appropriate values for all circumstances. If sufficient or appropriate information for cost-effectiveness test inputs is not available through this database, parties proposing programs are free to include alternate values. If the source of incremental measure cost or per-unit energy savings assumptions is not the DEER, the party proposing an alternate value should include reference to other sources and/or calculations supporting the inclusion of the new or alternate value. Reasonable documentation of all assumptions is required by the Commission in order to evaluate all program proposals.