Introductory Stakeholder Workshops July 8, GMP Montpelier Service Center July 14, GMP Rutland Operations Headquarters

2

3

Total of $21M to be invested: $6M (W) by 12/1/12 $4M (W) by 12/1/13 *$2M (T) by 12/1/13 $9M (O) by 12/31/17 CEED Fund created in CVPS/GMP merger docket * for customers who do not qualify for VT’s Weatherization program 4

5

6

 VT State Efficiency programs ◦ $6M Weatherization Program (2012) ◦ $4M Weatherization Program (2013)  2013 Stakeholder Process ◦ $2M Thermal Efficiency  Home Performance with Energy Star (VEIC)  Business Existing Facilities (VEIC)  Condominium Efficiency (Shelter Analytics)  Cold-Climate Heat Pumps (VEIC) ◦ $1.2M Electric Efficiency  EverGreen Revolving Loan Fund (VEIC)  Greenhouse Biomass (VT Agency of Agriculture)  Direct Install Farm Efficiency (EnSave) ◦ Other  Evaluate State Screening Tool for Renewables (GEEG, Seddon) 7

 2014 Stakeholder Process ◦ $1.775M Electric Efficiency  Business Existing Facilities (VEIC)  EverGreen Revolving Loan Fund (VEIC) ◦ $282k Innovation (deferred to 2015)  Farm-Phosphorous runoff mitigation (NativeEnergy) ◦ Continuation of some 2013 programs 8

 2015 Stakeholder Process ◦ $3.09M Electric Efficiency  Business Existing Facilities (VEIC)  EverGreen Revolving Loan Fund (VEIC)  Ozone Laundry Retrofits (EnSave) ◦ $375k New Technologies  Farm-Phosphorous runoff mitigation (NativeEnergy)  EV Charging Stations in Downtowns (VEIC) 9

 Eligible Investments ◦ New and existing electric efficiency programs; ◦ Renewable and clean energy programs; ◦ Demand Resources; and ◦ New and emerging technologies ◦ Primary Target for 2016 remains commercial sector electrical efficiency and innovative investments, HOWEVER, CEED is nearing its overall NSB targets and new technology & innovative programs can play an expanded role 10

 Investments must achieve Net Societal Benefits (NSB) of at least 1.2 times the amount invested  “But/For” test - investment or project would not otherwise have been undertaken or fully funded absent the CEED Fund investment  Benefits/investments accrue to legacy CVPS customers in approximate proportion to customer class revenue  Appropriate investments identified through stakeholder process 11

12

 GMP invites potential partners to propose their best ideas for achieving maximum customer benefits under the program  Stakeholder process is collaborative, but also competitive -- limited funds are available for efficiency investments  Stakeholders will present proposals for discussion at the August workshops  Francis Wyatt of Green Energy Economics Group - energy efficiency and planning tool expert will assist GMP in assuring stakeholder proposals are fairly evaluated  GMP will solicit input and recommendations from stakeholders on proposed investments  All participants will get feedback on their proposals from GMP (not other participants)  Proposal guide and worksheet available for participants  Deadlines for submitting proposals will be strictly observed 13

 Workshop aids are available on the GMP website to help stakeholders participate ◦ Workshop Slide Deck ◦ Participant Proposal Guide ◦ Proposal Questionnaire (attached to Proposal Guide) ◦ 2012 GMP Efficiency Fund Report  If stakeholders find valuable, GMP will conduct an NSB workshop to assist stakeholders in understanding and working with the state planning tool  Q&A to be posted on GMP website and updated as new questions come in 14

15

16

 Investment criteria consistent with PSB CEED Fund requirements  Aggregate costs subtracted from aggregate benefits ◦ Costs include: CEED investment, participating customer investment, project delivery costs, performance monitoring, benefits measurement and reporting and any other administrative cost charged by any party relating to the investment. ◦ Benefits include: Energy and capacity savings, avoided infrastructure investments, reduced supply risk, savings as compared to other technologies, environmental benefits, economic development benefits and other customer benefits.  A variety of factors will inform which projects are selected including the amount of NSB, number of customers served, customer class, certainty and promptness of achieving benefits, etc. 17

Discussion, Questions & Comments 18