When a discussion of utility resource options reaches the point at which DSM options are compared to Supply options, one often encounters the statement that certain DSM options (i.e., DSM options that do not pass the Rate Impact Measure or RIM preliminary economic screening test) can result in lower utility system costs, but will also result in higher electric rates.
For some, the first reaction to hearing this statement is (and I quote): “Huh?” To them, it seems counterintuitive that something that lowers costs could also result in increased electric rates. (Their next thought in regard to an explanation of this statement may be something ...
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