Integrating M&V Results into DSM Program Tracking

One of the key aspects of effectively managing DSM programs is to be able to use the M&V results as feedback mechanism to refine the deemed energy savings and Net-to-gross (NTG) values for the various measures implemented in the program portfolio. Typically, one would start with the accepted values for kWh, kW and Therm savings for each measure - these could come from industry databases, EM&V work conducted by the utility, negotiated values with the collaboratve set up by the Commission, etc. These would provide the utility and the implementation contractors with the specified savings values, and freerider/spillover/persistence factors at the start of the program.

As the M&V results come in, a properly designed program tracking and reporting system should be able to seamlessly process the verified savings values and provide the utility staff and other interested users, a clear view of what was projected and what was actually delivered during the program year for each program. The ability to do this critical as it affects several important areas:

• Ability to analyze the deviation between projected and verified savings to fully synthesize the impact of the M&V work
• Ability to adjust the projected savings values for the future so that the projected and verified values are as close to identical as possible
• Ability to determine the impact on the cost-effectiveness of each program and the DSM portfolio as a whole
• Ability to forecast the impact on savings projections for the life of the measure as they could impact the ability of the utility to meet future resource credit mandates
• Determine the impact on lost revenue recovery calculations as the Commission staff and utility's finance dept will be looking at the verified results