Workshop Process on
Cost-Effectiveness Screening of Heating and Process-Fuel Efficiency Measures

Cost-effectiveness screening refers to the process used to compare the costs and benefits of specific energy efficiency investments.  Vermont's Energy Efficiency Utility ("EEU") performs this screening in order to help customers make investments whose benefits exceed their costs.

In 2008, new legislation was enacted that directed the EEU to use certain revenues to deliver energy efficiency services to heating and process-fuel consumers (prior to this date, the EEU's efficiency services were aimed solely at electricity consumers).  During discussions regarding implementation of these new services, questions arose regarding the cost-effectiveness screening of heating and process-fuel efficiency measures.  These questions are related to whether the methodology and assumptions incorporated in the current cost-effectiveness screening tool that is used by Efficiency Vermont in reviewing electric efficiency measures are appropriate when evaluating heating and process-fuel efficiency measures, given that the current screening tool has evolved over time based on decisions made by the Public Service Board ("Board") in the context of electric and natural gas energy efficiency programs. 

The Board issued a memorandum on April 16, 2009, scheduling a workshop to discuss issues associated with the cost-effectiveness screening of heating and process-fuel efficiency measures.  Attendees at that workshop recommended that the Board explore these issues further through a workshop process.  This page provides information regarding this workshop process.

Schedule for Workshops and Filings (see Board memos re next steps for workshop topics)

• May 12, 2009 -- Workshop -- 10:00 a.m. - noon, Public Service Board Hearing Room, Third Floor, Chittenden Bank Building, 112 State Street, Montpelier
• June 8, 2009 -- Comments to be filed on how cost-effectiveness screening is currently performed, and on what costs and benefits should be considered in the future when determining cost effectiveness screening for heating and process-fuel efficiency
• June 12, 2009 -- Workshop -- 9:30 a.m. - noon, Public Service Board Hearing Room, Third Floor, Chittenden Bank Building, 112 State Street, Montpelier
• June 19, 2009 -- Comments to be filed on policy and "framework" issues, including risk adjustment, environmental externalities, project-level versus measure-level screening, and the relationship of screening of heating and process-fuel efficiency investments to electricity and natural gas screening
• June 25, 2009 -- Workshop -- 9:30 a.m. - noon, Public Service Board Hearing Room, Third Floor, Chittenden Bank Building, 112 State Street, Montpelier
• July 13, 2009 -- Workshop -- 2:00 - 4:30 p.m., Public Service Board Hearing Room, Third Floor, Chittenden Bank Building, 112 State Street, Montpelier
• July 24, 2009 -- Workshop -- 1:30 - 4:30 p.m., Public Service Board Hearing Room, Third Floor, Chittenden Bank Building, 112 State Street, Montpelier

Board Orders and Memos

• April 16, 2009 -- Memo scheduling first workshop
• May 14, 2009 -- Memo re Next Steps
• June 18, 2009 -- Memo re Next Steps
• June 30, 2009 -- Memo re Next Steps
• July 21, 2009 -- Memo re Next Steps

Participants' Filings and Presentation Materials

• May 7, 2009, Initial comments on issues to be addressed
  • DPS
  • VEIC
• June 8, 2009, Information on how cost-effectiveness screening is currently performed and initial comments on what costs and benefits should be considered in the future when performing cost-effectiveness screening
  • Weatherization program screening
    • Overview, filed by Champlain Valley Office of Economic Opportunity ("CVOEO")
    • Specific Tools, filed by Central Vermont Community Action Council ("CVCAC")
      • Explanation of tools
      • Hulstrunk audit tool
      • Campbell audit tool
      • Description of NEAT Engineering logic
  • Vermont Gas screening
    • Cover letter
    • Energy efficiency program summary
    • Screening tool description
    • Screening tool
  • Heating fuel industry screening description, filed by Vermont Fuel Dealers Association ("VFDA")
  • City of Burlington Electric Department ("BED") screening
  • Efficiency Vermont screening
    • Current screening practices
    • Explanation of screening tool
    • Screening tool
    • Comments on future considerations for screening of unregulated fuels
  • Department of Public Service ("DPS")
  • Vermont Housing & Conservation Board ("VHCB")
  • Housing Vermont
• June 19, 2009, Comments to be filed on policy and "framework" issues, including risk adjustment, environmental externalities, project-level versus measure-level screening, and the relationship of screening of heating and process-fuel efficiency investments to electricity and natural gas screening
  • DPS
  • Efficiency Vermont
  • Vermont Gas
  • Vermont Housing & Convervation Board
• June 25, 2009, Efficiency Vermont presentation and screening comparison grid as modified to incorporate comments of referenced entities
  • Screening Comparison as Updated
  • EVT Screening Practices Presentation
• July 21, 2009, Letter from the Vermont Fuel Dealers Association responding to issues raised at the July 13, 2009 workshop
  • July 21, 2009 Letter from the Vermont Fuel Dealers Association
• July 23, 2009, Attachements to email communications from EVT concerning valuation of non-energy related benefits
• Counting good: quantifying the co-benefits of improved efficiency in buildings
• Literature Review by Jennifer Amann
• EVT July 23, 2009 Proposal for Development of "Cost Adjustment Factors" for Cost-Effectiveness Screening

Background Materials

• Key Board Orders regarding cost-effectiveness screening
  • Docket 5270, Order of 4/19/90 -- This docket was the Board's initial investigation into least-cost planning and energy efficiency.  Many of the broad principles regarding cost-effectiveness screening of energy efficiency investments by utilities are articulated in this Order.  The Order is quite lengthy, and is attached in a pdf format that has different pagination from the original order.  For ease of reference, the page numbers that follow the module numbers are those from the original order, while the page numbers in parentheses are those from the pdf posted to this webpage.  Volume II, Module 4, pages 130-138 (pages 102-106 in the posted pdf) includes findings on various cost-effectiveness tests.  Volume III, Module 4, pages 72-89 (pages 180-190 in the posted pdf) discusses the various cost-effectiveness tests.  Volume IV, pages 7-17 (pages 272-277 in the posted pdf) discusses the risk and externalities adjustments approved by the Board.  Note:  a later Board order determined that the EEU should use a different externalities adjustment than that approved in this Order.
  • Docket 5980, Order of 9/30/00 -- This docket resulted in the creation of the EEU.  Pages 58-62 of the Order, and pages 23-24 of the Appendix to the Order (the Appendix is the Memorandum of Understanding approved by the Board in the Order) discuss cost-effectiveness screening, including a different externalities adjustment to be used by the EEU.
  • Docket 6290, Order of 1/15/03 -- This docket was the Board's investigation into distributed utility planning by electric utilities.  Pages 13-15 discuss cost-effectiveness screening for distributed utility planning.  These pages of the Order refer to Attachment A to the Memorandum of Understanding approved in the Order.  Attachment A to the MOU.
• 2009 Audit of EEU Program's Cost-Effectiveness -- Vermont law requires the Board to, every three years, arrange for the verification by an independent auditor of the reported energy and capacity savings and cost-effectiveness of the EEU services delivered by both Efficiency Vermont and BED.  The most recent audit was completed in 2009.

E-mail Service List

Instructions for Filing Comments -- Participants should file one paper copy of their comments with the Clerk of the Board and e-mail their comments to the E-mail Service List.

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