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Cost Causation and Benefits Allocation in DG. May 7, 2014 Prepared for Arizona Corporation Commission. Prepared by Clean Power Research. Clean Power Research DG cost/benefit and fleet modeling studies. DGValuator evolution. TM. DG costs and benefits (1 of 2).
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Cost Causation and Benefits Allocation in DG • May 7, 2014 • Prepared for • Arizona Corporation Commission • Prepared by • Clean Power Research
Clean Power Research DG cost/benefit and fleet modeling studies
Load match and loss savingsMinnesota Dept. of Commerce, 2014
Quiz! • Solar power reduces the fuel expense of: • Natural gas • Coal • Nuclear • All of the above • Customers pay the fuel expenses for: • Natural gas • Coal • Nuclear • All of the above Right! Right!
DG costs and benefits are evaluated on a marginal basis (not average basis)
Deciding DG study periodExample: Generation capacity Planned CCGT Planned CT How about this cost? 2014 2018 2034 Does DG avoid generation capacity costs if installed here?
Ben Norris • Sr. Consultant • Clean Power Research • ben@cleanpower.com