A. Administrators shall present sufficiently detailed calculations, sensitivity analyses, and supporting testimony of the effect of the proposed conservation and energy efficiency program using each of the following tests set forth in the California Standard Practice Manual: Economic Analysis of Demand-Side Programs and Projects, (State of California, Governor's Office of Planning and Research, July 2002), (hereafter “Manual”): The Participant Test, The Ratepayer Impact Measure Test, The Total Resource Cost Test, and the Program Administrator Cost Test.

The Commission will rely on the formulae found in the Manual. However, the Commission may rely on some inputs contained in the Manual and not on others. Furthermore, the costs and benefits contained in the Manual are suggestions and are not endorsed by the Commission for every program. For this reason, the Commission will not limit the costs and benefits that can be considered in the benefit/cost tests to those listed therein.

Cost-effectiveness results shall be presented on both a program and portfolio basis.

Administrators may submit additional economic analyses and benefit/cost test information in support of a proposed program.

B. A utility shall use an evaluation period of either ten years (a gas utility may use an evaluation period of fifteen years), or the actual measure lives for each measure in a program to evaluate a program or program portfolio.

Results of the tests shall be presented consistent with the descriptions shown in Table 1, or by other means as approved by the Commission.