The Base Case for utility costs:

In EDGE, the Base Case is a standardized benchmark used to calculate utility cost savings, reflecting typical resource consumption for a building in its location and typology. The term "virtual energy" in EDGE refers to the energy required for heating, cooling, lighting, and other systems, modeled as if the building operates under typical conditions without efficiency measures. The EDGE User Guide explains how utility costs are calculated: "The Base Case for utility costs includes the cost of virtual energy, which represents the modeled energy consumption for the building type in the absence of efficiency measures, alongside water consumption, using localtariffs to estimate financial impacts" (EDGE User Guide, Section 2.3: Using the EDGE App). Option B, includes the cost of virtual energy, aligns with this approach, as the Base Case accounts for all modeled energy use to establish a baseline for savings. Option A (excludes the cost of virtual energy) is incorrect, as virtual energy is a core component of the Base Case: "Virtual energy in EDGE is the theoretical energy use calculated for the Base Case, including heating, cooling, and lighting, and its cost is always included in utility cost calculations" (EDGE Methodology Report Version 2.0, Section 4.4: Cost Savings Calculations). Option C (excludes the cost of virtual energy only in homes) and Option D (includes the cost of virtual energy only in homes) are also incorrect, as the treatment of virtual energy is consistent across all typologies: "The Base Case methodology, including the inclusion of virtual energy costs, applies uniformly to all building types in EDGE, whether homes, hotels, or offices, to ensure a fair comparison of savings" (EDGE User Guide, Section 2.3: Using the EDGE App). The EDGE Methodology Report further clarifies: "Utility costs in the Base Case are derived from virtual energy and water consumption, reflecting typical usage patterns for the building type and location, ensuring that savings calculations are comprehensive and include all relevant energy demands" (EDGE Methodology Report Version 2.0, Section 4.4: Cost Savings Calculations). This consistent inclusion of virtual energy costs across all typologies makes Option B the correct answer.