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docs/formulas.md

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@@ -33,9 +33,7 @@ title: Formulas - NPA How to Pay Model
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toc-title: Table of contents
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---
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# Mathematical Formulas
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This document contains the mathematical formulas implemented in the
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This document contains the formulas implemented in the
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`npa-howtopay` model, organized by functional area.
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## Variable Definitions
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| $N_{gas,init}$ | Initial number of gas customers | customers |
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| $N_{electric}(t)$ | Number of electric customers in year $t$ | customers |
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| $N_{electric,init}$ | Initial number of electric customers | customers |
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| $N_{converts}(t)$ | Cumulative heat pump converts through year $t$ | customers |
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| $HP_{converts}(t)$ | Sum of NPA households and scattershot converters in year $t$ | customers |
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| $N_{converts}(t)$ | Cumulative number of converted households including non-npa households through year $t$ | customers |
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| $N_{NPAconverts}(t)$ | Sum of NPA households converters in year $t$ (excludes scattershot electrification) | customers |
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| $N_{customers}(t)$ | Total number of customers in year $t$ | customers |
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### Energy Usage and Efficiency Variables
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| $ror_{electric}$ | Electric rate of return | % |
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| $D_{electric}(t)$ | Electric depreciation expense in year $t$ | $ |
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| $P_{electric}(t)$ | Electricity generation cost per kWh in year $t$ | $/kWh |
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| $P_{peak,kw}$| Distribution cost per peak kW increase | $/kWh |
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### Revenue and Inflation Variables
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| Variable | Description | Units |
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The number of gas customers decreases over time as customers convert to
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heat pumps. There is no growth in the number of gas customers:
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$$N_{gas}(t) = N_{gas,init} - \sum_{i=1}^{t} HP_{converts}(i)$$
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$$N_{gas}(t) = N_{gas,init} - \sum_{i=1}^{t} N_{converts}(i)$$
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**Variables:**
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- $N_{gas}(t)$: Number of gas customers in year $t$
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- $N_{gas,init}$: Initial number of gas customers
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- $HP_{converts}(t)$: Sum of NPA households and scattershot converters
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- $N_{converts}(t)$: Sum of NPA households and scattershot converters
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in year $t$.
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### Total Gas Usage
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- $C_{gas,fixed}(t)$: Gas fixed costs in year $t$
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- $C_{gas,var}(t)$: Gas variable costs in year $t$
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### Gas Avoided LPP Spending
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The avoided LPP spending in a given year is the sum of the pipe value per customer times the number of converts for each NPA project in that year:
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$$C_{gas,LPP,avoided}(t) = \sum_{p \in P(t)} N_{converts}(p) \times V_{pipe,user}(p)$$
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**Variables:**
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- $C_{gas,LPP,avoided}(t)$: Gas LPP spending avoided in year $t$
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- $P(t)$: Set of NPA projects in year $t$
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- $N_{converts}(p)$: Number of converts in project $p$
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- $V_{pipe,user}(p)$: Pipe value per user for project $p$
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### Gas Revenue Requirement
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The gas revenue requirement includes ratebase return, OPEX, and
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- $N_{electric}(t)$: Number of electric customers in year $t$
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- $N_{electric,init}$: Initial number of electric customers
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### Total Cumulative Converts
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The cumulative number of heat pump converts through year $t$. This does
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not affect the number of electric customers:
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$$N_{converts}(t) = \sum_{i=1}^{t} HP_{converts}(i)$$
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**Variables:**
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- $N_{converts}(t)$: Sum of NPA households and scattershot converters
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in year $t$
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- $HP_{converts}(i)$: Sum of NPA households and scattershot converters
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in year $i$
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### Total Electric Usage
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- $U_{electric}(t)$: Total electric usage in kWh in year $t$
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- $N_{electric,init}$: Initial number of electric customers
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- $N_{converts}(t)$: Cumulative heat pump converts through year $t$
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- $N_{converts}(t)$: Cumulative electrification converts through year $t$
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- $Q_{electric,kWh}$: Average per-customer electric need in kWh
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- $Q_{heating,therms}$: Average per-customer heating need in therms
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- $K_{therm\to kWh}$: Conversion factor from therms to kWh
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- $C_{electric,opex}(t)$: Electric OPEX costs in year $t$
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- $D_{electric}(t)$: Electric depreciation expense in year $t$
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### Electric Grid Upgrades
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The cost of electric grid upgrades is determined by the peak kW increase from heat pumps and air conditioning, multiplied by a per-peak kW distribution cost:
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$$C_{grid,upgrade}(t) = \Delta kW_{peak}(t) \times P_{peak,kw}$$
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where the peak kW increase is:
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$$\Delta kW_{peak}(t) = \sum_{p \in P(t)} \left[ N_{NPAconverts}(p) \times \left( kW_{HP,peak} + (kW_{AC,peak} \times (1 - a_{pre})) \right) \right]$$
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**Variables:**
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- $C_{grid,upgrade}(t)$: Grid upgrade capital cost in year $t$
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- $\Delta kW_{peak}(t)$: Total peak kW increase in year $t$
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- $P_{peak,kw}$: Distribution cost per peak kW increase
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- $P(t)$: Set of NPA projects in year $t$
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- $N_{NPAconverts}(p)$: Number of converts in project $p$
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- $kW_{HP,peak}$: Peak kW per heat pump
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- $kW_{AC,peak}$: Peak kW per air conditioner
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- $a_{pre}$: Pre-NPA air conditioner adoption rate
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## Bill Cost Calculations
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### Inflation-Adjusted Revenue Requirement
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$$C_{est} = \frac{RB_{init}}{W_{total}}$$
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This creates a table of synthetic project with uniform original costs of that would results in the inital ratebase value in year 0.
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**Variables:**
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- $W_{total}$: Total weight for synthetic initial projects

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