Program Expenditures

Budget

The table below includes 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

Administrative Costs

Contract administration, marketing, and regulatory reporting, and program evaluation (admin. and marketing may not exceed 5% of total budget)

$786,000

Installation, service, and operation costs

Includes hardware, software, installation costs, communications costs, and customer incentives

$3,144,000

Total Annual Program Budget

$3,930,000

Incentive Structure

All program participants will receive the equipment and installation free of charge from the utility. In addition, the customer should receive an incentive 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.

Item and assumptions	Estimated Cost
Administrative Costs
Contract administration, marketing, and regulatory reporting, and program evaluation (admin. and marketing may not exceed 5% of total budget)	$786,000
Installation, service, and operation costs
Includes hardware, software, installation costs, communications costs, and customer incentives	$3,144,000
Total Annual Program Budget	$3,930,000