Benefit Cost Testing

Statutory Guidance

Per Public Act 98-28 and Connecticut General Statutes §16-245m(d)(3), Connecticut must screen all programs included in the Conservation and Load Management (C&LM) Plan through cost-effectiveness testing which compares the value and payback period of program benefits to program costs. This ensures that the programs are designed to obtain energy savings whose value is greater than the cost of the programs.

Specifically, state law authorizes the Commissioner of Energy and Environmental Protection (DEEP) to evaluate the programs to ensure that they are cost-effective, are administered appropriately and efficiently, and that they comply with statutory requirements.

For more information on the current benefit-cost tests used, see the 2016-2018 C&LM Plan's Chapter Seven.

Updating the Testing Mechanisms- 2018

Connecticut recognizes that the C&LM programs have significant impacts not just on utilities and participants, but on the State's ability to meet its applicable policy goals. Following the guidance of the 2017 National Efficiency Screening Project's National Standard Practice Manual (NSPM), DEEP is reviewing and re-evaluating the primary test used to assess the C&LM programs to ensure consistency and integrity in state efficiency programs. The timeline for this evaluation, displayed below, provides for inclusion in the 2020 C&LM Plan Update and also includes opportunities for public participation and comment.

Public Meeting 1- September 13th, 2018. Energize Connecticut Center, North Haven, CT.

Public Meeting 2- November 15th, 2018. DEEP Hearing Room 1, 10 Franklin Square, New Britain, CT.

Public Meeting 3- March 2019, Date and Location to be announced.

Resources

Updated November 26, 2018