BLACK HILLS ENERGY 4th Quarter 2016 Low Income Assistance Program Stakeholder Meeting December 8, 2016 1:30pm – 3:00pm MST Mark James – Energy Efficiency Program Coordinator Jim Dillon – Energy Efficiency Senior Manager Fred Stoffel – Director Regulatory Affairs

Agenda Low Income Assistance Program – YTD kW & kWh data as of 11/30/2016; budget numbers as of 10/31/2016 Proposed Changes to 2017 & 2018 BHE-COE Low Income Assistance Program – 60-Day Notice Questions & Comments

Low Income Assistance Program Metric Goal Achieved Percent Achieved Total Budget $840,776 $501,008 60% Admin Budget $22,818 $47,411 208% Marketing Budget $36,508 $10,791 30% Program Delivery Budget $781,450 $442,806 54% kWh @ Generator 989,165 438,346 44% kWh @ Meter 929,404 411,863 kW @ Generator 889 443 50% kW @ Meter 835 416 Total Participation 1,889 1,081 57% Participation – LED* (Households) 240 203 85% Participation – ENERGY Star Refrigerator (Households) 435 243 56% Participation – Evaporative Cooler (Households) 464 254 55% Participation – Direct Install Measures (Households) 750 381 51% Installations N/A 1,877

Colorado Energy Office 1/1-10/31/2016 Metric Goal Achieved Percent Achieved Total Budget $71,885 $34,274.35 48% LED Budget $14,950 $3,438.50 23% ENERGY Star Refrigerator Budget $50,400 $27,720.00 55% Admin Fee Budget $6,535 $3,115.85 LED Installed 2,300 529 ENERGY Star Refrigerator Installed 80 48 60% Total Participation (Households) N/A 66 Participation – LED (Households) 28 Participation – ENERGY Star Refrigerator (Households) 44 Participation – Direct Install Measures (Households)

NeighborWorks of Pueblo 1/1-11/30/2016 Metric Goal Achieved Percent Achieved Total Budget $564,046 $388,532 63% LED Budget $2,475 $1,859 75% ENERGY Star Refrigerator Budget $148,000 $112,239 76% Evaporative Cooler Budget $340,000 $215,900 64% Admin Fee Budget $73,571 $49,501 67% LED Installed 330 1,050 318% ENERGY Star Refrigerator Installed 248 195 79% Evaporative Cooler Installed 400 254 Participation Total (Households) 1,431 1,005 70% Participation – LED (Households) 33 175 530% Participation – ENERGY Star Refrigerator (Households) Participation – Evaporative Cooler (Households) Participation – Direct Install Measures (Households) 750 381 51%

2016 Work in Progress 60-Day Notice, Low Income Assistance Program Will be e-filed with CO PUC in Dec 2016 Recommendation to redesign program Single Family Weatherization Program Multi-Family Weatherization Program (custom) Non-Profit Energy Efficiency Program (NEEP) (custom) Direct Install Measures Program Will maintain same eligible measures 2017 & 2018 participation, kW savings goal, kWh savings goal and budget will remain unchanged. Request for 25% non-energy benefits adder for mTRC (low income assistance program only) After 60-Day Notice is e-filed with CO PUC, it will also be emailed to all parties on Certificate of Service in Proceeding No. 15A-0424E and posted on BHE-COE’s website.

2017 & 2018 Low Income Assistance Program Proposed Goals Participation: 1,889 Net Energy (kWh) Savings @ Generator: 989,165 Net Energy (kWh) Savings @ Meter: 929,404 Net Demand (kW) Saving @ Generator: 889 Net Demand (kW) Savings @ Meter: 835 Budget: $840,776 Note: Modified Total Resource Cost Test (mTRC) will use 25% non-energy benefits (NEB) adder for all Low Income Assistance Program mTRC cost effectiveness testing.

2016 EM&V Evaluations Low Income Assistance Program (Sector: Residential) On-Site Energy Evaluation Program (Sector: Residential) Home Energy Comparison Report Program (Sector: Residential) Appliance Recycling Program (Sector: Residential) EM&V reports due to BHE-COE in Feb/Mar 2017

Questions & Comments