ESTIMATING THE COST-EFFECTIVENESS OF COORDINATED DSM PROGRAMS

Coordinated demand-side management (DSM) programs-jointly funded, desi gned, and implemented by government agencies and electric and gas util ities-are likely to become much more widespread in the future. Because of the comingling of government and private funds in these types of p rograms, estimating their cost-effectiveness for electric and gas util ities is more difficult than for typically utility-run DSM programs. I n this article, we describe and illustrate a methodology for estimatin g the cost-effectiveness of coordinated programs from the standpoint o f the electric or gas utility. Although the discussion is limited to D SM programs confunded by government and electric and gas utilities, th e principles can be used for other types of programs confunded by the government and firms in the private sector.