4. Cost Effectiveness

Though not every program selected will necessarily be cost-effective given the variety of policy objectives being pursued, the Commission will select a cost-effective portfolio of programs.

Measuring the cost-effectiveness of energy efficiency programs serves several purposes:

· To assist in determining whether a program is warranted (prospectively or on a continuing basis);

· To assist in determining prospectively what program activities are appropriate;

· To assist in understanding motivations for program participation by customers and service providers to customers;

· To assist in determining funding allocations for various programs;

· To assist in modifying programs during operation to increase their effectiveness;

· To assist in assessing retroactively to what extent programs have been successful in achieving the Commission's policy objectives.