Utility demand-side management costs

The costs incurred by the utility to achieve the capacity and energy savings from the Demand-Side Management (DSM) Program. Costs incurred by consumers or third parties are to be excluded. The costs are to be reported in nominal dollars in the year in which they are incurred, regardless of when the savings occur. The utility costs are all the annual expenses (labor, administrative, equipment, incentives, marketing, monitoring and evaluation, and other) incurred by the utility for operation of the DSM Program, regardless of whether the costs are expensed or capitalized. Lump-sum capital costs (typically accrued over several years prior to start up) are not to be reported. Program costs associated with strategic load growth activities are also to be excluded.

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