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Getting Started

Getting Started. Some First Steps in EM&V. Set the objectives: What is the overall goal of the efficiency programs – define the metrics? Demand savings (how defined), Energy savings, Cost-effectiveness How will the information/metrics be used?

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Getting Started

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  1. Getting Started Kentucky PSC 9/11/09 Schiller Consulting, Inc.

  2. Some First Steps in EM&V • Set the objectives: • What is the overall goal of the efficiency programs – define the metrics? • Demand savings (how defined), Energy savings, Cost-effectiveness • How will the information/metrics be used? • Transparency, reporting of results to stakeholder and ratepayers • Set expectations for savings determination certainty? • For example, full evaluation vs. verification and deemed savings values • Performance determined on basis of net or gross savings? • What is the schedule for implementing EM&V and reporting? • Who will conduct the evaluations, what is independent, what are the roles between utilities and PSC? • Impact, Market and Process • Statewide or utility by utility Kentucky PSC 9/11/09 Schiller Consulting, Inc.

  3. Some First Steps in EM&V, continued • How will evaluation results be applied: • Used for information only and/or used as basis for penalties/rewards? • Results applied: • Forward only, generally with engineering estimates and assumptions (ex ante)? • After the fact (ex post) – apply evaluation results retrospectively, true up the results based on impact evaluation? Kentucky PSC 9/11/09 Schiller Consulting, Inc.

  4. Evaluation Principles to Guide Development of Governance Structures • Independence: Evaluators should have no financial stake in outcome of their impact evaluation work (no conflict of interest) • Transparent methods to estimate load impacts are reviewed in public forum to increase quality and reliability • Evaluation planning process identifies the types of evaluation information that is crucial to different stakeholders • Take advantage of work done elsewhere • Over time, use impact evaluation to refine input assumptions used in savings estimation • Expert review of evaluation design happens in planning phase, not after the study is completed; lean on independent evaluation experts • All key assumptions used by program planners are eventually verified in evaluations • Ensure procurement process used to select evaluation contractors is timely and flexible • Focus evaluation dollars and efforts on areas of largest/most important uncertainty (From presentation by Jeff Schlegel)

  5. Example First Deliverables • PSC defines overall guidance, roles/responsibilities, general reporting requirements and reporting schedule • Select consultants to do EM&V prior to program start up Kentucky PSC 9/11/09 Schiller Consulting, Inc.

  6. Thank You Questions? Kentucky PSC 9/11/09 Schiller Consulting, Inc.

  7. For More Information Contacts: Steve Schiller – consultant to LBNL steve@schiller.com www.schiller.com 510.655.8668 Chuck Goldman (LBNL) CAGoldman@lbl.gov www.lbl.gov Phone: 510-486-4637 Kentucky PSC 9/11/09 Schiller Consulting, Inc.

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