The reliability of DSM impact estimates

Demand-side management (DSM) critics continue to question the reliability of DSM program savings, and therefore, the need for funding such programs. In this paper, the authors examine the issues underlying the discussion of reliability of DSM program savings (e.g., bias and precision) and compare the levels of precision of DSM impact estimates for three utilities. Overall, the precision results from all three companies appear quite similar and, for the most part, demonstrate reasonably good precision levels around DSM savings estimate. The conclude by recommending activities for program managers and evaluators for increasing the understanding of the factors leading to DSM uncertainty and for reducing the level of DSM uncertainty