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Input Assumptions 1-16-2007 contains all of the input assumptions in the attached tools. These include both the business case parameters, the host site and its energy usage, the host utility, DG cost and performance, and other assumptions.
Individual Model v8 is the next iteration of the 'Individual Installation Cost-effectiveness' tool. This model looks at the costs and benefits of the proposed DG and business structure from the participating customer (host site), utility / non-participant, and societal perspectives. As the 'individual' model, this tool evaluates a single installation at a time. This tool is relatively high level in that all of the costs and benefits are calculated on a levelized (or NPV) basis, not an annual cash flow. The advantage of this approach is that it allows easy sensitivity analysis and can accomodate lots of business case variations.
Utility Model v1d is the second release of the new 'Aggregate Cost-effectiveness' tool that accomodates clean DG. The model looks estimates a penetration rate of clean DG (2.5% of energy sales over 10 years in the base case) and evaluates the cost-effectiveness to non-participating ratepayers, participants, utility shareholders, and society. Notice that this model, unlike the Individual Model, seperates the impact of non-participants (through rates) and shareholders (through earnings and ROE). This is done by making assumptions about the rate treatment of the costs and benefits of DG, and of decoupling (in cases where utility sales change). Also, this is an annual model that computes the annual cash flow and revenue requirement for the base case (no DER) and with clean DG. This tool was initially developed by E3 for the EPA to evaluate energy efficiency.
Utility Model Equations is a summary of the equations used in the utility aggregate model. This document provides an overview of how the decoupling, PBR, and other ratemaking mechanics were structured.
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