E3: Energy+Environmental Economics
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Avoided Cost Proceedings
Under R.04-04-025, E3 developed the methodology for estimating the value of avoided costs for use in evaluating energy efficiency programs. Since the avoided cost proceedings, E3's avoided cost model has been adapted for subsequent analyses and several other CPUC projects and public proceedings. Please also refer to the following webpages for updates to the avoided cost model.
2013 NEM Evaluation
CSI Cost-effectiveness Evaluation

Latest Distributed Energy Resources Avoided Cost Model (July 24, 2012)
DERAvoidedCostModel_v3.9_2011 v4d.xlsm

Updated Electric and Gas Avoided Costs – 2006 Update (5/23/06 Draft Decision)
Electric Avoided Costs (8MB ZIP)
Natural Gas Avoided Costs (255kB XLS)
Natural Gas Forecast Inputs (650kB XLS)

Updated Electric and Gas Avoided Costs compliant with the 4-25-2005 Advice Filings
Electric Avoided Costs (43MB XLS or 8.8MB Compressed)
Natural Gas Avoided Costs (238kB XLS)
XLS)

4-25-2005 Utility Advice Filings
Southern California Gas Company (76kB PDF)
Southern California Edison (207kB PDF)
Pacific Gas and Electric (394kB PDF)
San Diego Gas and Electric (38kB PDF)

CPUC Avoided Cost Materials Before 4-25-2005
April 7 CPUC Decision Adopting Avoided Costs for Energy Efficiency :
Decision Adopted April 7, 2005 (113 kB PDF)

Final avoided cost report :
Methodology and Forecast of Long Term Avoided Costs for the Evaluation of California Energy Efficiency Programs (3 MB PDF or MS Word)

Spreadsheet tools that compute the hourly avoided costs used in the final report can also be downloaded. These were updated on 10/21/04 to incorporate changes based on post-workshop comments. Results do not significantly differ from prior versions.

Electric Avoided Cost Methodology (37 MB MS Excel)
Natural Gas Avoided Cost Methodology (216 kB MS Excel)

Document Archive +

01/18/04

Initial Draft, A Forecast of Cost Effectiveness Avoided Costs and Externality Adders, Posted on CPUC website (2 MB PDF)

04/22/04

Order Instituting Rulemaking, R.04-04-025, issued

06/04/04

Pre-workshop opening comments filed at the CPUC
Nine sets of comments were filed by eleven parties:

1. CAC/EPUC
2. CalWEA
3. CCC
4. CLECA
5. IEP
6. NRDC
7. PG&E
8. SCE
9. SDG&E/SoCalGas

06/18/04

Pre-workshop reply comments filed at the CPUC
Seven sets of comments were filed by ten parties:

1. CAC/EPUC
2. CCC
3. IEP
4. NRDC/UCS
5. PG&E
6. SCE
7. SDG&E/SoCalGas

03/30/04 - 07/01/04

Workshop held at CPUC in San Francisco
The following MS PowerPoint slideshows were presented by E3:

1. Introduction and Results
2. T&D Capacity
3. Emissions
4. Market Price Forecast
5. Market Price Multiplier
6. Reliability
7. Natural Gas Forecast

E3 prepared an initial response (85 kB MS Word) to pre-workshop comments and reply comments regarding the E3 avoided cost calculation methodology. However, a more comprehensive response to both pre- and post-workshop comments is contained in Appendix E of the Final E3 Report posted at the top of this page.

 
   

07/15/04

ALJ ruling regarding scope and focus for comments on the E3 report

08/16/04 - 08/20/04

Comments on the E3 report filed at the CPUC
Nine sets of comments were filed by eleven parties:

1. CAC/EPUC
2. CCC
3. CCEA
4. GPI
5. IEP
6. PG&E Comments  PG&E Redline PG&E Extr
7.SCE
8. SDG&E/SoCalGas
9. TURN

09/03/04

Reply Comments on the E3 report filed at the CPUC
Nine sets of comments were filed by twelve parties:

1. CAC/EPUC
2. CCC
3. CCEA
4. GPI
5. NRDC/UCS
6. PG&E
7. SCE
8. SDG&E/SoCalGas
9. TURN