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 (admin and marketing limited to a maximum of 5% 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.