Application of NSPM – In States

States and jurisdictions are applying the NSPM framework and process to review and update their current cost-effectiveness testing practices — whether for one or for multiple types of distributed energy resources. The case studies below provide useful examples of how the NSPM framework and principles can be applied to improve or update cost-effectiveness testing.


Cover Letter – UBCA Work Group Final Report
Maryland UBCA Work Group Final Report

In the past two years, the Michigan Public Service Commission (MSPC) addressed cost-effectiveness testing for distributed energy resources in Case U-20898 as part of the MI Power Grid New Technologies and Business Models workgroup. This culminated in an October 2023 Order adopting a jurisdiction specific test (JST) developed by the state’s utilities—DTE Electric Company and Consumers Energy—and with extensive stakeholder input. Using the National Standard Practice Manual (NSPM) framework and guidance, the development of a new cost test for Michigan applies to all distributed energy resources (DERs) including energy efficiency, demand response, distributed generation, distributed storage, EVs, and building electrification. With application of the NSPM, Michigan’s JST accounts for benefits and costs that align with state’s energy policies, including safety, reliability, affordability, resiliency, environmental justice and equity, and decarbonization of the electricity system.


NSPM – MN Case Study authored by NESP (June 2023)
Commission Order filed March 31, 2023: MN Dept of Commerce Final Decision Deputy Commissioner’s Decision in the Matter of the 2024-2026 CIP Cost-Effectiveness Methodologies for Electric and Gas Investor-Owned Utilities on eDockets (docket number 23-46), (277 pp).


NSPM – MD Case Study authored by NESP (June 2022)
EV BCA Methodology Report (November 2021)

PSC Letter Approving EV BCA Framework (December 2021)

Future Programming Work Group Final Report (April 2022)

PSC Order No. 90261 (June 2022)


Note: the cases below apply to EE resources where states used the 2017 NSPM for EE.

New Hampshire
NSPM – NH Case Study authored by NESP (January 2019: NSPM for EE)
NH PUC Order 26,322 (December 31, 2019)
Synapse Report for the NH EM&V Working Group (October, 2019)

NSPM – AR Case Study authored by NESP (May 2019: NSPM for EE)
PWC Case Study Report to Arkansas PSCAppendix A, and Appendix B
Arkansas PSC decision on adopting PWC recommendations (May, 2019)

Rhode Island
NSPM – RI Case Study authored by NESP (December 2018: NSPM for EE)
2020 Rhode Island Test (October, 2019)
Synapse Report on Methodologies for Developing Inputs for DERs (October, 2018)

NSPM – MN Case Study authored by NESP (December 2018, NSPM for EE)
Synapse Report to MN Dept. of Commerce (September, 2018)