The administrative costs of energy conservation programs

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Abstract
The administrative costs of conservation programs can be substantial. Administrative costs may support a variety of functions including: (1) program planning, design, analysis, and evaluation; (2) activities designed to reach customers, bring them into the program and deliver services such as marketing, audits, application processing, and bid reviews; (3) inspections and quality control; (4) staff recruitment, placement, compensation, development, training, and transportation; (5) data collection, reporting, record keeping, and accounting; and (6) overhead costs such as office space and equipment, vehicles, and legal fees. In this report, data on the administrative costs of conservation programs were assembled to explore the factors that contribute to variations in these costs and to make recommendations about planning assumptions. Current planning approaches implicitly assume that administrative costs add a fixed ratio of expenses to the direct costs for energy conservation measures (ECM). In reality, administrative costs are a function of many factors. They vary by the stage of program development, the type of technology being promoted, the extent of program marketing and financial incentives being offered, the desired level of market penetration, and the market segment to which the program is aimed. 31 refs., 10 figs., 11 tabs.

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