Where Did the Money Go? The Cost and Performance of the Largest Commercial Sector DSM Programs

Eto, Joseph H.; Kito, S.; Shown, Leslie J.; Sonnenblick, Richard

doi:10.5547/issn0195-6574-ej-vol21-no2-2

Cited by 39 publications

(20 citation statements)

References 15 publications

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“…These modifications revealed that reported utility DSM spending may be more accurate than Loughran and Kulick claimed, a finding that supports Parfomak and Lave's original conclusions. Qualitative studies confirm the findings made by all three sets of authors that DSM efforts are cost‐effective and have significant potential to decrease electricity prices (Eto et al, 1996, 2000; Nadel, 1992; Nadel & Geller, 1996).…”

Section: Introductionsupporting

confidence: 76%

Energy demand‐side management: New perspectives for a new era

Carley

2011

J Policy Anal Manage

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Over the past decade and a half, state governments have assumed greater responsibility over demand-side management (DSM) operations. Whereas DSM programs formerly were initiated primarily by utilities or state public utility commissions, they are now becoming increasingly state-initiated and incentivized through funding mechanisms or efficiency-level mandates. The supporting literature, however, has yet to respond to these changes and to verify that DSM funding or mandates are effective policy mechanisms. Furthermore, the supporting literature has yet to resolve some of the research design and methodological challenges that traditionally plague DSM evaluations. As states continue to expand their energy and climate policy efforts, and the federal government considers the possibility of national decarbonization policies, of which DSM is a key strategy, the need for empirical research on the effectiveness of DSM programs will grow. This essay describes the current status of DSM efforts in the U.S. and explores how these programs affect electricity operations. The relationship between DSM policy and program efforts and the amount of saved electricity is tested with a methodological approach aimed at minimizing the selection bias that is inherent in the nonexperimental research design. Results confirm that state-run DSM efforts contribute to electricity savings across the country. Public benefit funds coupled with performance incentives are found to encourage utility participation in DSM programs. Energy efficiency portfolio standards and performance incentives effectively promote electricity savings, but public benefit funds without the support of other DSM policies are not significant drivers of either DSM program participation or total DSM electricity savings.

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Section: Introductionsupporting

confidence: 76%

Energy demand‐side management: New perspectives for a new era

Carley

2011

J Policy Anal Manage

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“…After the retrofit, energy consumption exceed the model-predicted results by 986 kWh ($84), indicating that the household consumed more electricity in the post-retrofit period. 8 The most widely cited statistical criteria for establishing the acceptability of a baseline consumption model was proposed by Reynolds and Fels [25] who suggest an absolute statistical cutoff criteria: (i) R 2 > 0.7, CV < 7%, or (ii) CV < 12%. Reddy and Claridge [24] have questioned the applicability of absolute measures and proposed a dynamic criterion based on the fractional uncertainty in savings measurement.…”

Section: Example -Negative Energy Savingsmentioning

confidence: 99%

“…Industrial and commercial facilities have evolved standard protocol for evaluating energy conservation programs, primarily because of the large capital expenses involved, but residential programs tend to be subject to less rigorous criteria and performance metrics. For a review of program assessments in commercial facilities, see [7,8]; for residential programs, [15]; for weatherization, [2,4,21].…”

Section: Introductionmentioning

confidence: 99%

Preliminary assessment of the Louisiana Home Energy Rebate Offer program using IPMVP guidelines

Kaiser

Pulsipher

2010

Applied Energy

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“…Critical issue is the following: how much does it cost to save energy through programs that use monetary incentives and targeted information to influence individual customer decisions? For example, [1] presents detailed analysis of the complete costs and measured energy savings from the largest commercial sector DSM programs operated by U.S. electric utilities. The programs, as a whole, have been found as cost effective.…”

Section: Introductionmentioning

confidence: 99%

Determination of the amount of cost-effective DSM/DR module

Rajaković¹,

Shiljkut²

2014

MedPower 2014

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This paper presents the methodology applied to determine the level of acceptable costs of a Smart Grid module, able to support combined acting of demand side management (DSM) and demand response (DR) programs. The results of the methodology use have been illustrated by case studythe simulation of one particular DSM/DR program implementation throughout the whole consumption area of Electricity Distribution Company in Serbian capital, Belgrade. The results of the research show that the implementation of DSM/DR program would be useful and profitable for analyzed case study and supposed values of input dataunit costs for each part and device of the system. In order to check the certainty of these results, a sensitivity analysis has been performed, too, changing input data within reasonable limits. Resultsshow that proposed DSM/DR program implementation would be beneficial, even for increased prices of necessary equipment. NomenclatureAMR -Automated meter reading DSM -Demand side management DR -Demand response HAN -Home Area Network HV -High voltage HS -Heat storage LV -Low voltage MV -Medium voltage PV -Photovoltaic SS -Substation V-RES -Variable generation from renewable energy sources Biographies Nikola Lj. Rajakovic was born in former Yugoslavia in 1952. He earned his Dipl. Ing., Master and PhD degree at the University of Belgrade, Faculty of Electrical Engineering. Presently he is a full-time professor at the same Faculty. His research interests include steady-state analysis of power systems, power-system optimization, renewable energy sources and smart grid applications. He has published more than 200 papers (28 refereed full papers in Scientific Journals), he has been the leader in more than 30 applied projects and published 5 books.Prof Rajakovic is a senior member of IEEE, a member of CIGRE and chairman of Energy Association in Serbia.Vladimir M. Shiljkut (Šiljkut) was born in Belgrade, Serbia (former Yugoslavia). He earned his Dipl. Ing. degree in 1994 at the University of Belgrade, Faculty of Electrical Engineering. He is PhD candidate at the same Faculty. Since 1995 until 2013 he was with Electricity Distribution Company "Elektrodistribucija Beograd". Currently, he is the Manager of the Sector for trade and tariff customers' relations in Power Industry of Serbia, Belgrade. He is the author and co-author of more than 50 papers, in Serbian and English. These works deal with load forecasting methods, optimal network planning, power losses estimation, renewable sources, power transformers, metrology, etc.Mr. Shiljkut is the member of CIRED Liaison Committee of Serbia and its two Experts Committees -Distribution substations and power lines, and Power distribution system development.

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Where Did the Money Go? The Cost and Performance of the Largest Commercial Sector DSM Programs

Abstract: is an equal opportunity employer. Portions of this document may be illegible in electronic image products. m e s are produced from the best available original d0CUIIWIlL A REPORT FROM THE DATABASE ON ENERGY EFFICIENCY P R O G W S (DEEP)

Cited by 39 publications

References 15 publications

Energy demand‐side management: New perspectives for a new era

Energy demand‐side management: New perspectives for a new era

Preliminary assessment of the Louisiana Home Energy Rebate Offer program using IPMVP guidelines

Determination of the amount of cost-effective DSM/DR module

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