Confusion over Baseline DES Distribution Losses

The guidance document seems very clear that the proposed design distribution losses are to be included when using option 2. In our case the facility has measured them so this part is simple. However, there seems to be no mention of including any losses at all for the baseline plant. The guidance doc references App G, which states do not include losses for baseline and proposed (which is superseded by the Guidance document for the proposed) and it references ASHRAE 90.1 table 6.8, which of course includes chiller and boiler min efficiencies. Does this really mean that the baseline case in option 2 should be modeled with no distribution losses? Could one assume that because pipe insulation thicknesses are listed in Table 6.8, then we can do a calculation of what a baseline maximum pipe loss would be based on baseline minimum pipe insulation and operating temps and pipe sizes? Any ideas, I searched the CIR's and could not find anything on this. .