framework that includes both a quantitative evaluation and qualitative evaluation of each program or type of investment. The quantitative evaluation would include monetized values. The qualitative evaluation might include other factors that cannot readily be monetized, such as customer equity, environmental impacts, degree that in enables customer and 3rd party engagement, interactive effects of DERs, short-term versus long-term impacts, and other strategic and policy factors including impact on metrics and achieving the Grid Mod goals. A business case is a written document that captures the reasoning for initiating a project. A compelling business case adequately captures both the quantifiable and unquantifiable characteristics of a proposed project or investment. Information that may be included in a business case includes a detailed description of the project including scope and schedule, the rationale and business drivers for the investment, the expected costs, the expected benefits, any assumptions underpinning the evaluation of expected benefits, options considered, and expected risks, including sensitivities. From this information, the justification for the project is derived. Throughout this report the term is used to to a business case framework, “cost-effective” which includes both a quantitative and a qualitative evaluation. The parameters of a business case framework and how they will be evaluated remain to be fully developed. This must occur before utilities file their first grid modernization plans. How, if at all, should the cost-effectiveness framework account for the location and time issues? To the extent that time and/or location based information is available it should be included in cost-effectiveness analysis. How will the key assumptions used for evaluating Grid Mod investments be developed? to the development of the first grid modernization plans, there would be an effort to coordinate common major assumptions among the utilities. Such assumptions could include, for example, the appropriate discount rate, the appropriate inflation rate, and electricity market price forecasts. How long should the Commission give the utilities to file the initial Grid Modernization The initial Grid Modernization plan will take approximately 9-12 months, with the issuance of a final directive by the commission. This length of time is required to support the proposed Stakeholder Engagement process identified in this report and could vary with changes in the proposed stakeholder process. The Commission should require that the Grid mod filings be submitted in a staggered fashion.
framework that includes both a quantitative evaluation and qualitative evaluation of each program or type of investment. The quantitative evaluation would include monetized values. The qualitative evaluation might include other factors that cannot readily be monetized, such as customer equity, environmental impacts, degree that in enables customer and 3rd party engagement, interactive effects of DERs, short-term versus long-term impacts, and other strategic and policy factors including impact on metrics and achieving the Grid Mod goals. A business case is a written document that captures the reasoning for initiating a project. A compelling business case adequately captures both the quantifiable and unquantifiable characteristics of a proposed project or investment. Information that may be included in a business case includes a detailed description of the project including scope and schedule, the rationale and business drivers for the investment, the expected costs, the expected benefits, any assumptions underpinning the evaluation of expected benefits, options considered, and expected risks, including sensitivities. From this information, the justification for the project is derived. Throughout this report the term “cost-effective” is used to to a business case framework, which includes both a quantitative and a qualitative evaluation. The parameters of a business case framework and how they will be evaluated remain to be fully developed. This must occur before utilities file their first grid modernization plans. How, if at all, should the cost-effectiveness framework account for the location and time issues? To the extent that time and/or location based information is available it should be included in cost-effectiveness analysis. How will the key assumptions used for evaluating Grid Mod investments be developed? to the development of the first grid modernization plans, there would be an effort to coordinate common major assumptions among the utilities. Such assumptions could include, for example, the appropriate discount rate, the appropriate inflation rate, and electricity market price forecasts. How long should the Commission give the utilities to file the initial Grid Modernization The initial Grid Modernization plan will take approximately 9-12 months, with the issuance of a final directive by the commission. This length of time is required to support the proposed Stakeholder Engagement process identified in this report and could vary with changes in the proposed stakeholder process. The Commission should require that the Grid mod filings be submitted in a staggered fashion.
NH-Grid-Mod%20Report%203-2-17%20NUPs.docx