Appendix: Review of Selected Standards in Support of Valuation Guidelines Development

This report reviews a set of standards in support of a U.S. Department of Energy Grid Modernization Laboratory Consortium (GMLC) project—Valuation Framework Development (GMLC1.2.4). The purpose of the review is to determine whether established business processes used by other industries or in other settings with the electric utility industry provide insight into whether the process defined in GMLC1.2.4 can be codified by some industry group or body, and whether the framework for valuing grid technologies, investments, or policies could be formulated using language leading to valuation analyses that would be auditable, transparent, repeatable, internally consistent, and extensible. Eight sets of standards widely used in United States and international business and industry that share the attributes of the GMLC-proposed Valuation Framework are reviewed for commonalities and lessons learned from application of the existing standards to help identify potential process or success factors applicable to the development of Valuation Guidelines. The reviewed standards generally embody efforts to accomplish threshold-setting objectives, as do the proposed Valuation Guidelines, based on fundamental principles used to enable the standards to achieve their objectives. Successful outcomes of using the eight sets of standards and associated lessons learned that are relevant to the proposed standardization of Valuation Guidelines are highlighted and provide insight into whether Valuation Guidelines would lend themselves to being codified in language that would improve the credibility, transparency, and overall acceptance of the grid valuation effort.