Quantifying DER Impacts

New Resource Coming Soon!

The NSPM provides guidance on how to identify what impacts should be accounted for in a jurisdiction’s primary cost-effectiveness test. But it only scratches the surface on addressing how one can quantify (monetize or otherwise) the relevant impacts, including qualitative assessments.

Forthcoming in February 2022, a companion document to the NSPM will be available: Methods, Tools, and Resources: A Handbook for Benefit-Cost Analysis of Distributed Energy Resources.

The handbook will serve as a reference guide for anyone preparing a benefit-cost analysis (BCA) for DERs, including utilities, regulators, regulatory staff, consultants, and other stakeholders in the DER regulatory process. It will provide guidance for parties that review, critique, and approve utility BCAs.

General content will include:

  • An overview of the key steps that can be used to calculate BCA inputs, including important concepts (e.g., how to develop Reference and DER Cases, and how to determine incremental impacts of changes to the utility system).
  • Descriptions for how to calculate inputs for the full range of DER impacts (Chapter 4 in the NSPM for DERs) such as: electric utility system impacts, gas utility system impacts, other fuel system impacts, host customer impacts, and societal impacts.
  • Links to key resources, including modeling tools, with examples of where certain methods have been applied.
  • Guidance on methods for accounting for reliability and resilience, as well as risk and uncertainty in a BCA.
  • Descriptions of how to calculate operating profiles for DERs (e.g., to inform temporal impacts).
  • A bibliography of publicly available documents, data sources and modeling tools that can be used to develop BCA inputs