1 Detailed EM&V Approach for each of BGE’s Proposed Conservation Programs January 10, 2008

2 Definitions u Overall focus is on evaluation u A National Action Plan for Energy Efficiency report addressed the definitions u Measurement and Verification (M&V) is […] often used when discussing analyses of energy efficiency activities. u M&V refers to data collection, monitoring, and analyses used to calculate gross energy and demand savings from individual sites or projects. u The term “evaluation, measurement, and verification” (EM&V) is also frequently seen in evaluation literature. u EM&V is the catchall acronym for determining both program and project impacts. Source: Model Energy Efficiency Program Impact Evaluation Guide, A Resource of the National Action Plan for Energy Efficiency. November 2007

3 BGE’s Planned EM&V Approach u The overall objective is to provide the information necessary for making good, cost effective decisions regarding investments in BGE’s energy efficiency programs u BGE plans to adopt an approach that calls for integrating evaluation related data collection into the implementation process for both process and impact evaluation –Detailed M&V will be developed concurrently with the development of the program details –Provides cost effective, reliable data u This evaluation approach involves: –Setting metrics by which program success will be measured –Working with the implementation team to collect the data on an ongoing basis necessary to quantify performance metrics u BGE will be issuing an RFP soliciting an experienced M&V vendor u BGE already has included some details on evaluation plans in the filing as outlined on the following slides but these may change based on selected vendor’s recommendations and program changes

4 ENERGY STAR Products u Appliance mail in rebates –100% Verification of all rebate forms and customer receipts including BGE account #, model #, serial #, etc. –Phone survey of 10% of participants to verify eligibility, usage patterns and product satisfaction. u CFL mark downs –Payments to co-op distributors/retailers only after verification of customer purchase (invoices, delivery receipts, etc.). –Energy reductions based on actual customer purchases u Visits by field representatives –Verify promotional material, adequate stock of products, and appropriate discounted purchase prices. u On-going satisfaction surveys – Data collection on customer usage patterns, product quality, product selection, market awareness and program’s influence. u Energy reduction data will be based on valid rebates using ENERGY STAR ® guidelines and will include energy, demand and dollar saving impacts

5 Residential Gas & Electric HVAC Program u HVAC rebate applications –100% review of all applications for verification of equipment efficiency rating, proper sizing and proper installation. –Database tracking of old and new equipment via serial and model numbers to assist in determining actual energy savings u Quality Assurance and Review –10% of all applications will be field inspected to verify qualifying equipment installations –Field inspection reports to be submitted for all field inspections –Verification of installation quality using established criteria for both system charge and air flow. u On-going satisfaction surveys – Data collection on customer usage patterns, product quality, product selection, market awareness and program’s influence. u Energy reduction data will be based on valid rebates using ENERGY STAR guidelines and will include energy, demand and dollar saving impacts

6 Residential New Construction Program u Incentives to builders –Incentive requests will be submitted by rating providers for units they certify rather than by the builders themselves. –Database tracking of participation and progress u Quality assurance of rating providers –Random review of rating and certification files –In-field verification u Disciplinary action –For both builders and rating providers in cases of abuse u On-going satisfaction surveys – Data collection on customer usage patterns, product quality, product selection, market awareness and program’s influence. u Energy reduction data will be based on building certification using ENERGY STAR guidelines

7 Residential Retrofit u Customer compliance –Confirmation that all homes comply with program requirements (BGE territory, building size, family size, etc.) u Contractor quality assurance and review –15% of all installations will be field inspected to verify qualifying equipment installations (sizing, duct tightness, proper design, and air flow measurements) –Field inspection reports to be submitted for all field inspections –Verification of installation quality using established criteria for both system charge and air flow u Delisting and decertification –Program Administrator will work with contractors to document and correct all program deficiencies. –Repeat violators will be delisted as qualified contractors u Homeowner surveys – Data collection on customer usage patterns, product quality, product selection, market awareness and program’s influence. u Energy reduction data will be based on data collection from customer surveys and home certification using ENERGY STAR guidelines

8 Small Commercial u Equipment rebate applications –100% review on all applications for verification of equipment efficiency rating, proper sizing and proper installation. –Database tracking of old and new equipment via serial and model numbers to assist in determining actual energy savings u Quality assurance and review –10% of all applications will be field inspected to verify qualifying equipment installations –Field inspection reports to be submitted for all field inspections –Direct installs will have both pre and post on site inspections to ensure all program requirements are met. u On-going satisfaction surveys – Data collection on customer usage patterns, product quality, product selection, market awareness and program’s influence. u Energy reduction data will be based on valid rebates using ENERGY STAR guidelines

9 Low Income u Customer eligibility –Confirmation that all participants comply with program requirements (BGE territory, income level, energy use, family size, etc.) u Contractor quality assurance and review –10% of all installations will be field inspected to verify qualifying equipment installations –Field inspection reports to be submitted for all field inspections –Verification of installation quality using established criteria u BPI Certification –Program Administrator will work with BPI certified contractors to train, document and correct all program deficiencies. u Homeowner satisfaction surveys – Data collection on customer usage patterns, product quality, product selection, market awareness and program’s influence. u Energy reduction data will be based on home certification using ENERGY STAR guidelines

10 Estimated Evaluation Budget u October 26, 2007 filing had $2.5 million budgeted over 8 year period specified as being for EM&V u Additional evaluation dollars of about $4.9 million are embedded in the almost $67 million implementation budget u Total current, high level estimate on EM&V spending is $7.4 million or 3% of the total budget over the 8 years u Focus on mass market means some of the evaluation is less costly than for example for large industrial evaluation with the latter requiring individual project evaluations and less ability to take advantage of deemed savings such as with ENERGY STAR programs