Appendix B 307
tion (1) is greater than the expected variances (noise) in the baseyear
data. Chapter 4.2 discusses some methods of assessing this noise level.
If noise is excessive, the unexplained random behavior of the facility is
high and the resultant savings determination is unreliable. Where this
criterion is not expected to be met, consideration should be given to
using more independent variables in the model, or selecting an IPMVP
Option that is less affected by unknown variables.
The balance of this document fleshes out some key details of this
basic approach to determining savings.
Once a savings report has been prepared, a third party may verify
that it complies with the M&V Plan, This third party should also verify
that the M&V Plan itself is consistent with the objectives of the project.
3.3 M&V PLAN
The preparation of an M&V Plan is central to proper savings
determination and the basis for verification. Advance planning ensures
that all data needed for proper savings determination will be available
after implementation of the energy savings program, within an accept-
able budget.
Data from the baseyear and details of the ECMs may be lost over
time. Therefore it is important to properly record them for future refer-
ence, should conditions change or ECMs fail. Documentation should
be prepared in a fashion that is easily accessed by verifiers and other
persons not involved in its development, since several years may pass
before these data are needed.
An M&V Plan should include:
- A description Of the ECM and its intended result.
- Identification of the boundaries of the savings determination. The
boundaries may be as narrow as the flow of energy through a
pipe or wire, or as broad as the total energy use of one or many
buildings. The nature of any energy effects beyond the boundaries
should be described and their possible impacts estimated. - Documentation of the facility’s baseyear conditions and resultant
baseyear energy data. In performance contracts, baseyear energy use
and baseyear conditions may be defined by either the owner or
the ESCO, providing the other party is given adequate opportunity