EC Express: Normalization, M&V, Cost Avoidance and the IPMVP
Posted by Matthew Heinz on 06 June 2012 11:22 AM

Normalization, M&V, Cost Avoidance and the IPMVP

M&V” is the industry standard term for the Measurement and Verification of energy savings due to energy management projects.  IPMVP, the International Performance Measurement and Verification Protocol, is a document published and maintained by an international non-profit organization (, a recognized authoritative guidance on M&V calculations.  In EnergyCAP, M&V is referred to as Cost Avoidance because the underlying purpose of M&V is to calculate the avoided cost attributable to energy management initiatives.

Cost Avoidance has been an important and widely-used feature of the installed version of EnergyCAP (EnergyCAP Enterprise) since 1985.  It will soon be available as an option in EnergyCAP Express.

There are, however, important differences between Cost Avoidance and the Normalization feature in EnergyCAP Express.

Although EnergyCAP’s normalized charts and reports enable comparisons of meter and building usage on more of an “apples-to-apples” basis due to calendarization and weather adjustments, normalization falls far short of IPMVP-compliant M&V.  Here are some important M&V features that are available only in EnergyCAP’s Cost Avoidance module:

  • Special adjustments to baseline -- independent variables other than degree days requiring adjustment to today’s conditions (floor area, new equipment, occupancy, etc). 
  • “No loss/no gain” treatment of missing bills, new accounts, inactive accounts.
  • Fuel switch and dual fuel scenarios.
  • Calculation of cost avoidance -- valuation of avoided usage using today’s pricing.
  • “Tuning” of weather regression results (selection of the best balance point temperature for each meter, removal of statistical outlier months).
  • Manual calculation of savings when needed due to unique circumstances.
  • Meter-by-meter configuration of baseline period and savings start date.
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