Assessing the cost-effectiveness of SMUDʹS shade tree program

This paper examines key issues involved in evaluating benefits (avoided cost of energy and capacity) of tree planting programs from the perspective of electric utilities, as well as from a wider perspective of public and private entities that may benefit from such programs. The nationʹs largest shade tree program, sponsored by the Sacramento Municipal Utility District (SMUD) in collaboration with the Sacramento Tree Foundation (STF), is used as a case study. Results of a recent analysis of the energy benefits of SMUDʹs Shade Tree Program are presented, along with program modifications being implemented to improve program cost-effectiveness. A sensitivity analysis of the relative importance of major uncertainties surrounding the benefits of the Shade Tree Program is presented, and priorities for future research are discussed.