E3: Energy+Environmental Economics
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Expertise    |    Energy Efficiency and Distributed Resources
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E3 has been at the forefront of distributed resource assessment since the company was founded in 1989. Utilities and regulators are increasingly relying on distributed energy resources such as energy efficiency (EE), distributed generation (DG), demand response (DR), and emerging distributed resources such as energy storage and permanent load shifting (PLS) applications, as well as smart grid technology applications, to meet future electric system needs. E3 developed the tools and framework for cost-effectiveness assessment of energy efficiency used by all investor-owned and many publicly-owned utilities in California, and has supported EE evaluations in other jurisdictions such as New York, Illinois, Pennsylvania, and Maryland. E3 consultants are world-leading experts at estimating the value that energy efficiency and distributed energy resources can provide.

E3 provides services in the following areas:

  • Best practice assessment
  • EE avoided cost estimation
  • DG and DR benefits estimation
  • Program design and evaluation
  • Cost-effectiveness evaluation of EE, DG and DR, energy storage, and dispatchable load resources
  • DR and DG potential estimation
  • Effect of retail rate design on DG cost-effectiveness
  • Effect of energy efficiency on utility financial health
  • Zero net energy building evaluation and cost-effectiveness analysis
  • Net energy metering cost-effectiveness
  • Participation of energy storage and non-generation resources in energy and ancillary service markets
  • Non-wires alternatives and local integrated resource plans
  • Utility financial and rate impacts of EE, DG and DR
Contact: Snuller Price or Brian Horii



Avoided Costs for California Distributed Resources. E3 developed and maintains a model for the California Public Utilities Commission that calculates avoided costs and cost-effectiveness for California’s energy efficiency and demand response programs. The ‘E3 Calculator’ has been adapted for use in other states such as Illinois, Maryland, and Ontario, Canada.

EPA/DOE National Action Plan for Energy Efficiency (Action Plan). E3 has supported the National Action Plan for Energy Efficiency since the program began in 2005. E3 has researched best practices related to energy efficiency resource planning, non-wires alternatives, retail rate design, decoupling and utility financial impacts and has contributed several chapters of the Action Plan report.

U.S. Department of Energy States Technical Assistance of Energy Efficiency. E3 is on the DOE team providing expert support on energy efficiency best practices to state utility commissions that request assistance from the DOE in the areas of cost-effectiveness assessment and development of energy efficiency avoided costs.

Zero-net Energy (ZNE) Roadmap. E3 is evaluating research priorities, policy challenges and opportunities to help California meet its ZNE goals.

California Public Utilities Commission Demand Response Potential and Cost-Effectiveness Protocols. E3 estimated the cost-effective and achievable potential of demand response in California.

California Solar Program Cost-Effectiveness Evaluation. E3 is supporting cost-effectiveness analysis of the Self-Generation Incentive Program (SGIP) and California Solar Initiative (CSI) for the California PUC.

California Public Utilities Commission Distributed Solar Potential Study. E3 conducted a detailed assessment of distribution substation- or feeder-level solar PV interconnection potential and costs, finding potential for up to 15,000 MW of local PV in California.