Energy Storage Value and Adoption Analysis

Approach Cost Effectiveness Framework We utilize the RIM test to evaluate cost-effectiveness of energy storage, including the value of avoided customer outages. The Ratepayer Impact Measure (RIM) test provides an indication of how average retail rates will change as the result of a new utility initiative - Includes all reductions in resource costs (e.g., reductions in fuel and capacity costs) Includes savings associated with procuring services more cheaply (e.g., ancillary services) We also include as a benefit the ratepayer value of avoided distribution outages - - Not traditionally included in RIM test (does not result a cost incurred by the utility), but reflects a benefit to ratepayers who experience fewer outages We separately report cost-effective storage levels excluding customer outage value We quantify, but do not include as ratepayer benefits, the societal cost impacts associated with changes in carbon and other emissions brattle.com 12

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