About the report
Demand-side management (DSM) administrators, regulators and policymakers use cost-effectiveness tests to inform decision-making when developing plans. Determining which test to employ, and which costs and benefits are included, can significantly influence the composition and size of DSM program portfolios.
Aligning DSM Cost-Effectiveness Testing with Public Policy examines the potential unintended consequences of imbalanced and biased accounting practices. It benchmarks Canadian cost-effectiveness testing policies and practices, then looks at how these tests could evolve to support three key energy policy priorities:
- aligning cost-effectiveness testing with public policy objectives
- facilitating “beneficial” electrification
- leveraging government funding to encourage more DSM
Authors
Brendan Haley
Senior Director of Policy Strategy
Carol Maas
Policy Research Associate
Key report findings
Few Canadian utilities comprehensively account for the multiple benefits of DSM and other distributed energy resources.
Government funding can change utilities’ incentives to invest in DSM, depending on how costs and benefits are attributed between the government-funded program and the utility-funded program.
