WCB Cost Model Virtual Workshop 2012 - Capturing Variation by Geography

Please provide comments to the issue below as part of the 2012 WCB cost model virtual workshop for inclusion in the record. Comments are moderated for conformity to the workshop’s guidelines.

Background

Hybrid Cost Proxy Model: The HCPM varies costs by nine density zones. Many of the inputs are the same across multiple density zones, while others show more variation among lower-density zones. The model also varies installation costs by geologic conditions, like soil type.

CQBAT: The CQBAT model varies costs according to three density zones (urban, suburban, and rural). The model as submitted in the record does not specify how locations are assigned to those zones.

Questions for Comment

1. Would it be reasonable to adopt a model with three zones for variation? Is it possible to capture the variations among low-density zones in the HCPM using only three zones? What parameters should be used to divide locations among areas? To the extent commenters believe there is a value in having more than three zones, they should specify the zones the model should use, the parameters for each zone, and why such proposals would be more appropriate than the three-zone approach.
2. What kinds of costs vary by geography? How can the Bureau obtain the data required to capture such variation, and how can the Bureau validate those data?