This paper describes an economic analysis methodology used by Southern California Edison (SCE) to evaluate Load Mnagement (LM) Programs. The two major components of the Cost Effectiveness analysis: (1) The value of Avoided Costs; and (2) the capacity value of the individual LM Programs, have been outlined. In the concluding section of the paper, actual values are referenced and qualifications are made with respect to the general application of this methodology. An example analysis is included with suggestions for further application.
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Minick et al. (1982) studied this question.
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