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The Benefit-Cost Analysis Tool Collaborative seeks to develop a benefit-cost analysis (BCA) tool, aligned with the National Standard Practice Manual (NSPM), to model Michigan’s jurisdiction-specific test (JST) for distributed energy resources (DERs). The Commission’s October 12, 2023 Order initiated the tool’s development efforts, in collaboration with interested parties, after adopting the Companies’ proposed requirements with amendments. The Commission’s November 21, 2024 Order advanced these efforts by announcing a partnership with E4TheFuture, ICF, Recurve, and the Lawrence Berkeley National Laboratory. These project partners are building the Open-Source Benefit-Cost Analysis (OS-BCA) model that will be capable of modeling state-specific JSTs for DERs. The development of the tool and collaborative will take place over the course of 2025 with the tool to be ready for use in 2026.
The NSPM defines and is specifically designed for DERs including:
Tayler Becker
Luke Dennin
Carmen Wagner
National Standard Practice Manual (NSPM) for Benefit-Cost Analysis (BCA) of Distributed Energy Resources (DERs):
The NSPM for BCA of DERs provides a robust framework for evaluating the cost-effectiveness of DERs. It was developed to ensure consistency, transparency, and alignment with jurisdiction-specific policy goals when assessing resources like energy efficiency, demand response, distributed generation, storage, and electrification.
NSPM for BCA of DERs Methods, Tools, and Resources (MTR) Handbook
The MTR Handbook is a detailed companion to the NSPM. It focuses on how to quantify benefits and costs for a wide range of DER impacts across utility systems, customer systems, and societal domains.
NSPM for BCA of DERs Case Studies
The companion case studies document for the NSPM for BCA of DERs provides practical examples of applying the NSPM framework. These hypothetical but illustrative use cases aim to guide jurisdictions in evaluating DER programs effectively.
Proposed Requirements and Further Guidance on Benefit-Cost Analyses for Pilot Initiatives
Directed by Commission’s July 27, 2022 Order and August 23, 2022 Order, this document summarizes the Companies’ proposed Michigan-specific uniform BCA requirements.