TeachMeFinance.com - explain Incremental effects
Incremental effects The term 'Incremental effects' as it applies to the area of energy can be defined as ' The annual changes in energy use (measured in megawatthours) and peak load (measured inkilowatts) caused by new participants in existing DSM (Demand-SideManagement) programs and all participants in new DSM programs during a given year. Reported Incremental Effects are annualized to indicate the program effects that would have occurred had these participants been initiated into the program on January 1 of the given year. Incremental effects are not simply the Annual Effects of a given year minus the Annual Effects of the prior year, since these net effects would fail to account for program attrition, equipment degradation, building demolition, and participant dropouts. Please note that Incremental Effects are not a monthly disaggregate of the Annual Effects, but are the total year's effects of only the new participants and programs for that year'.
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