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Guidelines for RTF Measure Economics Estimation Methods

(formerly Cost and Non-Energy Benefits Guidelines)

Progress Update to the Regional Technical Forum

November 1, 2011

Ryan Firestone, Navigant Consulting

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Overview• Objective: “develop electric energy efficiency measure cost estimating and non-

energy benefits guidelines”

• Key Terms:– Measure economics – All of the quantifiable, monetizable effects that result from an

energy efficiency measure.

– Measure economic element – Discreet measure economic effects that may have unique methodologies for estimation of values. Values may be either positive or negative for each individual element, depending on the measure.

– Measure economic analysis – The full analysis of all measure economic elements, including documentation of data sources, methods, and justification for all elements not evaluated.

– Cross-measure standardization – The information (for example, values, datasets, data sources, and/or analysis methods) that is standard across all measure assessments. This data is developed, organized, and maintained by the RTF and stated in the RTF Measure Economics Standard Information Workbooks .

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History

• History: – Contract awarded: Early August– Subcommittee meetings: Every 3 weeks (3 so far,

plus kick-off meeting)– Ongoing: subcommittee voting and comments on

measure economic elements

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Process and Status

• Process:– Get initial input from subcommittee– Develop basic framework for guidelines (measure economic

elements, cross-measure standardization)– Discuss each element, collect subcommittee comments and votes– Draft guidelines– Feedback and revision

• Status: – Submitted draft guidelines to subcommittee on Oct 17. – Submitting full draft guidelines later this week (Nov. 2 or 3)– Aiming for providing revised draft guidelines to RTF in time for

Dec. 13 meeting.

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Guidelines Outline1 Purpose and Scope

1.1 Key Terms1.2 Statistical and Rigor Requirements1.3 Guidelines Overview

2 Measure Economic Analysis2.1 Measure Specification2.2 Element Identification2.3 Measure Economic Element Analysis Process2.4 Justifications for Source and Order of Priority2.5 Reporting Requirements2.6 Analysis Expectations

3 Estimation Procedures – Capital Costs3.1 Material3.2 Ancillary Material3.3 Disposal3.4 Labor3.5 Design and Engineering3.6 Permitting and Licensing3.7 Mark-ups3.8 Delivery

4 Estimation Procedures – Maintenance4.1 Introduction4.2 Ongoing Maintenance – Labor4.3 Ongoing Maintenance – Material4.4 Ongoing Maintenance – Disposal

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Guidelines Outline5 Estimation Procedures – Operations

5.1 Introduction5.2 Electricity5.3 Natural Gas5.4 Propane5.5 Heating Oil5.6 Wood5.7 Other Fuel5.8 Water5.9 Consumable Materials5.10 Disposal

6 Estimation Procedures – Ancillary Impacts6.1 Introduction

7 Measure Economic Element Analysis Methods7.1 Data cleaning7.2 Estimation approaches

8 Measure Economic Maintenance8.1 Cross-Measure Standardization Spreadsheet(s)

9 RTF Process for Specifying Measure Economic ElementsThe latest draft guidelines are posted on the subcommittee website:

http://www.nwcouncil.org/energy/rtf/subcommittees/measurecost/

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Checklist

[see Excel file]

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Next Steps

• November 2 - Submit complete draft guidelines on subcommittee

• November 9 – Subcommittee meeting, review of draft guidelines

• December 6 – Submit revised draft guidelines to RTF for review

• December 13 – RTF meeting – presentation and discussion