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Cost Effectiveness Testing

Cost Effectiveness Testing

Improving Efficiency Screening Practices throughout the United States

The National Efficiency Screening Project (NESP) is a group of organizations and individuals that are working together to improve the way that utility customer-funded electricity and natural gas energy efficiency resources are screened for cost-effectiveness.

The purpose of this project is to improve efficiency screening practices throughout the United States, and to help inform decision-makers regarding which efficiency resources are in the public interest and what level of investment is appropriate.

NESP's publications include:

  • May 2017 – National Standard Practice Manual for Assessing Cost-Effectiveness of Energy Efficiency Resources. This document provides comprehensive guidance on developing a jurisdiction’s primary cost-effectiveness test using the Resource Value Framework and a set of universal principles, as well as other foundational guidance. Download the NSPM and supporting materials.
  • August 2014 – Prior to launching the NSPM project, NESP released The Resource Value Framework, a document that outlined a set of principles and best practices for screening energy efficiency. During the past few years, recommendations from the Resource Value Framework (RVF) have been used in a number of states to significantly improve cost-effectiveness testing methods. Click here for more information.

NESP currently has more than fifty organizations as members. It is coordinated by E4TheFuture. Follow @RVFnow on twitter for updates.

HPC has been working overtime to get the word out to state officials on the new, improved NSPM. Since May 18, 2017, HPC has partnered with Regional Energy Efficiency Organizations, NASEO and other organizations to maximize the number of states contacted. For example: 

  • On May 22-23, 2017, HPC presented at the NASEO 2017 Northeast Regional Meeting – at Marsh-Billings-Rockefeller National Historic Park, Forest Center Building in Woodstock, VT. States Represented: NH, ME, VT, MA, CT, NY, RI
  • On June 15, 2017, HPC presented at the Northeast Energy Efficiency Partnerships, Summer Workshop on Cost-Effectiveness Testing for Next Generation of EE in Hartford, CT. States Represented: VT, MA, CT, NY, RI
  • On June 20-21, 2017, HPC presented at the NASEO Midwest Regional Meeting  & MARC 2017 Annual Meeting in Chicago, IL. States Represented: IL, MI, OH, IA, MN, WI, IN, MO
  • On June 26-27, 2017, HPC presented at the NASEO Mid-Atlantic Regional Meeting & MACRUC 22nd Annual Education Conference at the Hotel Hershey in Hershey, PA. States Represented: PA, NJ, VA, Dist. Of Columbia, WV, MD, DE
  • July 17, 2017: NARUC Summer Meeting Breakfast session; (San Diego, CA). HPC helped to coordinate a breakfast session and discussion of the NSPM for 50 utility commissioners and their staffs from over 22 states across the country.

HPC will continue to get the word out to state stakeholders about the new, improved NSPM. For more information on Cost Effectiveness Testing and the NSPM, please contact: Joe Cullen, Director of Policy and State Outreach at jcullen@homeperformance.org.

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New Consortium for Energy Efficiency Report – High Stakes for Energy Efficiency
HPC's policy efforts are focused on state-based cost-effectiveness testing.
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Since the HPC National Conference in Philadelphia in April 2018 we have been following up with contractors and state allies in three critical areas:
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