DR program (or measure) with what the savings and costs would have been in the absence of the program (or measure). This process is illustrated in Table 1 below. Table 1: TRC Benefits and Costs with Adjustments for Free-Ridership and Spillover Without With Program/Measure Program/Measure Status (Energy savings are on a Incremental Difference (Energy savings are net basis) on a net basis) Benefits 0 UACt + TCt +UACat UACt + TCt +UACat Costs IMC * FR IMC * (1 + SO) + PRC PRC + IMC * (1 FR + SO) – The effects of NTG on the calculation of the TRC cost test have been incorporated using the adjustment shown in the equations for CTRC and LCRC. The definitions of the change in energy savings and demand savings in the equations for UAC and UIC are on a net savings basis. When performing the TRC test on a gross basis, the net-to-gross term (NTG) should be set to 1.0 in the CTRC and LCRC formulae. Glossary of Terms Reduction in net demand in costing period in year i t ∆DNit Reduction in net energy use in costing period in year i t ∆ENit Reduced water consumption in costing period in year i t ΔH20it Benefit/cost ratio (NPV of total benefits of resource divided by NPV of BCRTRC total costs of resource) BTRC Benefits of the program CTRC Costs of the program d Interest rate (discount) Discounted stream of system energy sales (kWh or therms) or demand E sales (kW) for first year customers. Et System sales in kWh, kW, or therms for first year customers
DR program (or measure) with what the savings and costs would have been in the absence of the program (or measure). This process is illustrated in Table 1 below. Table 1: TRC Benefits and Costs with Adjustments for Free-Ridership and Spillover Status Without Program/Measure (Energy savings are on a net basis) With Program/Measure (Energy savings are on a net basis) Incremental Difference Benefits 0 UACt + TCt +UACat UACt + TCt +UACat Costs IMC * FR IMC * (1 + SO) + PRC PRC + IMC * (1 – FR + SO) The effects of NTG on the calculation of the TRC cost test have been incorporated using the adjustment shown in the equations for CTRC and LCRC. The definitions of the change in energy savings and demand savings in the equations for UAC and UIC are on a net savings basis. When performing the TRC test on a gross basis, the net-to-gross term (NTG) should be set to 1.0 in the CTRC and LCRC formulae. Glossary of Terms ∆DNit Reduction in net demand in costing period i in year t ∆ENit Reduction in net energy use in costing period i in year t ΔH20it Reduced water consumption in costing period i in year t BCRTRC Benefit/cost ratio (NPV of total benefits of resource divided by NPV of total costs of resource) BTRC Benefits of the program CTRC Costs of the program d Interest rate (discount) E Discounted stream of system energy sales (kWh or therms) or demand sales (kW) for first year customers. Et System sales in kWh, kW, or therms for first year customers
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