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Evaluation Review
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Estimating the Cost-Effectiveness of Coordinated DSM Programs

Lawrence J. Hill

Energy Division, Oak Ridge National Laboratory

Marilyn A. Brown

Energy Division, Oak Ridge National Laboratory

Coordinated demand-side management (DSM) programs—jointly funded, designed, and implemented by government agencies and electric and gas utilities—are likely to become much more widespread in the future. Because of the comingling of government and private funds in these types of programs, estimating their cost-effectiveness for electric and gas utilities is more difficult than for typically utility-run DSM programs. In this article, we describe and illustrate a methodology for estimating the cost-efffectiveness of coordinated programs from the standpoint of the electric or gas utility. Although the discussion is limited to DSM programs cofunded by government and electric and gas utilities, the principles can be used for other types of programs cofunded by the government and firms in the private sector.

Evaluation Review, Vol. 19, No. 2, 181-196 (1995)
DOI: 10.1177/0193841X9501900204
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