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How should the cost-effectiveness of the upgrades through an opt-in tariff program be evaluated?

The cost-effectiveness of the upgrades should be evaluated by a site specific cost-effectiveness analysis. To determine which upgrades would meet the threshold for immediate net savings for customers, the analysis performed for each site includes (A) the cost of installing the upgrades, (B) less the utility’s rebates and/or incentive payments, (C) the utility’s cost of capital, and (D) estimated savings for customers based on current rates.

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