Baseline models are a crucial element in determining savings from energy co
nserving measures. The baseline model is obtained by regressing the energy
consumption data for the period prior to the implementation of the energy c
onservation measures. The widely used criteria for determining adequacy of
a particular baseline model is based on statistical cutoff criteria that do
not give the user a knowledge of the error inherent in the savings determi
nation. The absolute cutoff criteria may, not be appropriate since baseline
model development is not the desired end. It is proposed that models be ev
aluated in terms of the ratio of the expected uncertainty in the savings to
the total savings (Delta E-save/E-save). This physically and financially i
ntuitive measure permits the user to vary the criteria according to factors
most relevant for a particular energy conservation project. Simplified exp
ressions for (Delta E-save/E-save) appropriate for use by practitioners as
applicable for cases with uncorrelated data and for use with correlated tim
e series data are developed and discussed in the context of case-study data
. The use of this concept to logically select the most appropriate measurem
ent and verification protocol To verify savings is also described.