Consideration of Proposed Revised Avoided Costs

"Avoided costs" are estimates of what it would cost a utility to purchase electricity in the future. The Board requires the Energy Efficiency Utility to use avoided costs that have been approved by the Board in determining whether it is less expensive to invest in an energy efficiency measure that avoids the purchase of electricity or to purchase the electricity. Other entities also use avoided costs when comparing resource options.

The Department of Public Service has filed proposed revised energy and capacity avoided costs, and has requested that the Board approve them for use by the Energy Efficiency Utility in program and measure screening. The DPS has requested that the Board convene a technical workshop and allow an opportunity for parties to provide written comments on the DPS's proposed avoided costs. This webpage provides information regarding the process the Board is using to consider these proposed avoided costs. Paragraph 11 of the Memorandum of Understanding that was approved by the Board in its 9/30/99 Order in Docket 5980 provides in part:
The DPS also will update avoided costs used in EEU program and measure screening and estimates of economically achievable energy efficiency potential as appropriate. Such updates shall be filed with and approved by the Board after an opportunity for other parties to file written comments and request a technical workshop.

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