Tendril Ratepayer Test
Tendril’s Ratepayer Test* (also known as a Rate Impact Measure [RIM] Test) measures fluctuations in customer bills or rates due to changes in energy service provider revenues and operating costs that are the direct result of an energy program. Rates will decrease if the change in revenues from the program is greater than the change in utility costs.
The only test designed to reflect the revenue shift (from ratepayers to energy service providers) that arises as a result of revenue lost due to utility programs, the Tendril Ratepayer Test is ideal to help you determine the potential direction and magnitude of change that your energy programs will have on customers’ bills. And because you can use it for all energy programs—including Energy Efficiency, Direct Load Control and Demand Response —the Ratepayer Test is particularly useful when comparing the impact of various management options.
Key elements of the Tendril Ratepayer Test include:
Measured Benefits
The Ratepayer Test calculates customer benefits as actual savings from avoided supply costs—which include reductions in transmission, distribution, generation and capacity costs for time periods of reduced loads, and revenue increases for time periods of increased loads.
Measured Costs
These costs represent a number of different variables—program costs incurred by a utility and/or other entity that incurs costs and creates or administers the energy program, participant-paid incentives, and revenue reductions for any reduced load time periods. Energy Service Provider program costs include initial and annual costs, such as for equipment, operation and maintenance, installation and program administration, and customer dropout and equipment removal.
Test Results
The Ratepayer Test can present results as lifecycle revenue impact (cents or dollars per kWh, kW, therm or customer), as annual or first-year revenue impact (cents or dollars per kWh, kW, therms or customer), as a benefit-cost ratio, and as net present value.
* Reference: California Standard Practice Manual, October 2010