New England Electricity Restructuring Roundtable 5/24/2019 12:38 PM Recent Developments in New England’s Bedrock Energy Efficiency (EE) Programs New England Electricity Restructuring Roundtable June 18, 2010 The energy lens has changed to a climate changes lens thorugh which energy policies and programs can now be viewed as solutions to the problem of reducing greenhouse gas emissions. Here is a breakdown from 2005 2005 - 5 awards 2006 - 2 awards 2007 - 9 awards 2008 - 4 awards 2009 - 2 awards Total for 5 years: 22 awards Penni McLean-Conner Vice President, Customer Care 1

Areas of Focus Redesigning delivery models is key Ensuring EE financial levers are in place Reaching hard to reach customers Advancing complimentary policies Continuing NSTAR leadership in EE Segue – Werner described addressing growing energy demand via renewable and the transmission assets needed to connect to the renewable. Another tool for addressing growing energy demand, is to reduce the waste associated with using energy, via energy efficiency. I will be covering: Historical context Nature of EE – potential, barriers NSTAR strategy in relations to these changes.

Our challenge is to drive deeper savings! 5% 50 and more% CFL bulbs Air sealing & duct sealing Insulation Furnace/boiler & thermostat Appliances & AC Replacement windows Deep Energy Retrofit Onsite Renewables This home produces more electricity than it uses. This home has a negative HERs rating – which means it produces more power annually than it uses. This slide highlights the build up of measures and the increased savings potential with the addition of measures. Our 2010 – 2012 programs will be designed to encourage customers to install more (deeper) measures, increasing overall our savings per customer participant. While the measures do not change, the packaging of the EE measures will change to drive deeper savings: Seamless customer experience by integrating gas and electric Marketing ‘packages’ of efficiency measures. (i.e. the Value meal concept) to encourage customers to do more Offering financing options, including on-bill Increasing awareness of programs via increased marketing – i.e. community based marketing Note interconnection between actions – i.e. greater insulation paired with heating equip repl allows for a smaller heating systems.

Redesigning our EE Delivery Models is Key Innovative technologies Fully integrated gas and electric programs Advanced delivery models Packaging of Measures Targeted marketing and data mining Comprehensive design solutions Combined heat and power offerings Most importantly, we must create value propositions that are compelling to customers to invest in deeper energy savings.

Ensuring EE financial levers are in place Funding source for EE efforts Systems Benefit Charge (SBC) Regional Greenhouse Gas Initiative (RGGI) funds Forward Capacity Market funds (FCM) Energy Efficiency Recovery Factor (EERF) Recovery for lost revenue/decoupling Performance incentives MA has been a leader in creating a financial infrastructure that supports sustainable EE investment.

Reaching Hard to Reach Customers Micro-businesses – Main Streets Program Property Management – Office of the Future Underserved rental markets – Community-based outreach We must address gaps in participation

Advancing complimentary policies National Energy policy Building labeling Property-Assessed Clean Energy (PACE) financing Segue – Werner described addressing growing energy demand via renewable and the transmission assets needed to connect to the renewable. Another tool for addressing growing energy demand, is to reduce the waste associated with using energy, via energy efficiency. I will be covering: Historical context Nature of EE – potential, barriers NSTAR strategy in relations to these changes. NSTAR is an active participant several MA energy policy task forces and in providing letters of support for standards and grants.

NSTAR continues to be a Leader in EE “ Our fuel of choice in Massachusetts is energy efficiency.  That’s what we’re investing in tremendously as a utility and as a state. -- Tom May on the Emily Rooney Show, February 4, 2010 ” NSTAR is investing in people, processes and technology to meet rapid increase in programs.