California IOU Evaluation Study and Spend Update Lucy Morris (PG&E) on behalf of IOU EM&V: Loan Nguyen – SCG Jesse Emge – SDG&E Erin Boyd – PG&E Shahana Samiullah – SCE EM&V Quarterly Stakeholder Meeting June 13, 2017

IOU Evaluation Update: Project Status from 2013 – June 2017 Includes studies from 2013-15 and 2016-17 cycles. Note, numbers don’t reflect how many studies are in the pre-scoping phase (i.e. planned in the EM&V plan or as ad-hoc study need, but not at the stage of developing a full SOW); many more studies in pipeline. Old Link to PSR is problematic; Best way to access is through CA EE Stats page -->Evaluation --> Evaluation Status and Budgets; https://psr.energydataweb.com

Recently Completed Reports Lighting Savings Overlap Estimation for the Home Energy Reports Program Analysis of 2008 Title 24 Nonresidential Compliance Site Audits White paper Mitigating Self-Selection Bias

EM&V Admin vs. Non-Admin Since Jan 1st, 2017, IOUs have monitored EM&V Admin vs. Non-Admin labor hours Following instruction of D.16-08-019 to align with cost categories in Appendix F of the Policy Manual EM&V Admin activities DO NOT require EM&V SME These include contract and co-fund management, scheduling meetings, RFP management, PSR/PDA and Service List postings, etc. Also includes responding to CPUC data requests EM&V Non-Admin are activities that DO require EM&V SME These activities include commenting on studies, developing researchable questions, drafting study scopes, etc. “PAs should keep their EM&V administrative expenses as low as possible and track and disclose them publicly as part of the collaborative process. EM&V administrative expenses should consist of similar cost categories as Utility Administrator Costs for delivery of energy efficiency programs, as defined in D. 09-09-047 and the EE Policy Manual.” – D. 16-08-019 (p. 107)

PG&E Non-Study Costs For EM&V Activities 2016 2017 Q1 Q2 Q3 Q4 Staff Labor ¹ $479,533 $449,181 $348,080 $529,777 $415,802 EM&V Admin $20,790 Travel/Training ¹ $4,050 $16,377 $8,431 $14,933 $1,464 Technical advisors $52,444 $84,109 $54,176 $58,514 $14,552 Overhead ¹ $110,104 $153,134 $117,084 $179,581 $81,813 Total $646,131 $702,801 $527,771 $782,805 $513,631 Q1 Labor and associated Overhead are lower due to temporary reduction in headcount (2 employees on leave); Overhead low due to lower IT costs Admin cost estimated by calculating the % of total timesheet hours that are spent on EM&V Admin. That percentage (5%) was then multiplied by the Total Staff Labor (including salary, benefits, vacation and sick time) cost. ¹ spend estimates calculated using activity percentages of bundled standard rate Staff Labor Travel/ Training Technical advisors Overhead Salary, benefits, vacation and sick time Excludes: Pension (paid outside EE budget) Travel, conference registrations, training costs Technical advisors supporting study development or review, PCG2 participation, and RTRs Includes: Payroll taxes; Office costs: IT-telecoms equipment and licenses, office supplies, IT-telecoms support (standing monthly charge), facilities charges (standing monthly charge); General charge-ins: Senior Management, legal, data security and analytics; Professional memberships and support (Calmac, EVO);

SCE: Non-Study Costs For EM&V Activities Q1 2017 Staff Labor $110,549 EM&V Admin $30,953 Travel/Training $1,048 Technical advisors $6,912 Overhead $4,368 Total $122,877 Staff Labor Travel/ Training Technical advisors Overhead Salary, vacation and sick time. Excludes: Pension/Benefits (paid outside EE budget) Travel, conference registrations, training costs As needed technical advisors supporting PCG2 participation, and RTRs Includes: IT costs (software, web/phone, remote access, teleconference). Office supplies, office equipment (computers, phones).

SDG&E: Non-Study Costs For EM&V Activities   2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 Staff Labor $91,555 $131,671 $174,051 $111,622 $87,354 EM&V Admin - $25,717 Travel & Training $2,826 $1,624 $581 $2,039 Technical Advisors $21,675 $13,583 $18,186 $17,555 $13,081 Overhead ExpenseT  $2,835 $224  $2,286  $3,517 $11,419 Total - Column $118,891 $146,878 $192,818 $134,733 $112,435 * Combined Straight Time, Vacation/Sick, and Payroll Taxes. T GRC Labor Loaders such as incentive compensation, pension and benefits, worker’s comp, personal liability and property damage insurance are not charged to energy efficiency. Quarterly expense for advisors can swing due to time of invoice is billed and paid. Monthly and annual costs can swing due to accruals and reversals.

SCG: Non-Study Costs For EM&V Activities SoCalGas1 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Staff Labor $77,380 $56,641 $47,662 $64,773 $65,901 EM&V Admin $24,383 Travel/Training $4,583 $1,016 $2,443 $1,360 $455 Technical advisors $8,184 $32,749 $37,952 $62,434 $20,433 Overhead $27,630 $85 $-110 $333 $-74 Total $117,778 $90,491 $87,947 $128,899 $86,715 ¹ Annual costs can swing due to accruals and reversals. Quarterly expense for advisors can swing due to time of invoice is billed and paid. Staff Labor Travel/ Training Technical advisors Overhead Salary, vacation and sick, payroll taxes Travel, conference registrations, training costs, membership Technical advisors supporting study development or review, PCG2 participation, and RTRs Exclude: Other overhead expenses such as incentive compensation, pension and benefits, worker’s comp, personal liability and property damage insurance, third-party general & administrative and fixed cost loaders are paid outside of EE budget through the GRC. Include: Affiliate inter-utility billing.

Thank you