PG&E Automated Demand Response Program: IDSM Lessons Learned "PG&E" refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. ©2013 Pacific Gas and Electric Company. All rights reserved. These offerings are funded by California utility customers and administered by PG&E under the auspices of the California Public Utilities Commission.

IDSM Lessons Learned Agenda Overview of PG&E ADR Program Unique aspects of program design Example: Integrating energy efficiency and Auto-DR Lessons learned 1

PG&E ADR Program Program Overview Technical Services On-site audits Auto-DR Technology Incentive $ / kW Customer Application Assistance Thermostats 2

PG&E ADR Program Performance based incentive structure 1st Payment: 60% provided once equipment is installed 1st Payment 2nd Payment 2nd Payment: up to 40% based on customer meeting performance goal 3

PG&E ADR Program Incentive Caps by Demand Response Program DR Program Incentive Budget Peak Day Pricing (PDP) ~$4.8 million Aggregator Managed Portfolio (AMP) ~$3 million Demand Bidding Program (DBP) $2 million Capacity Bidding Program (CBP) ~$1.5 million IDSM Projects: Can enroll in PDP, DBP or CBP ~ $4.1 million 4

IDSM Project Example Auto-DR | Energy Efficiency Food packing manufacturing plant Initially interested in Auto-DR only ADR Program didn’t have funding left in DR program customer was interested in IDSM funding motivated customer to also pursue energy efficiency 5

IDSM Project Example Auto-DR | Energy Efficiency Customer enrolled in PG&E energy efficiency incentive program focused on customers market segment Customer received free audit Able to leverage energy efficiency technical services and incentives 6

Load shed during DR event IDSM Project Example Auto-DR vs. Energy Efficiency Energy efficiency measures would reduce the customers kW baseline Reduce ADR incentive so that it no longer covered 100% of the project cost Reduce customer utility bill year round Auto-DR incentive can help make energy efficiency project cost effective Baseline Load shed during DR event 7

NEW Baseline (after EE) IDSM Project Example Load shed during DR Event Auto-DR vs. Energy Efficiency Energy efficiency measures would reduce the customers kW baseline Reduce ADR incentive so that it no longer covered 100% of the project cost Reduce customer utility bill year round Auto-DR incentive can help make energy efficiency project cost effective Baseline NEW Baseline (after EE) 7

IDSM Project Example Customer Energy Efficiency Program ADR Program Multiple Different Stakeholders Customer Save Money Energy Efficiency Program Install all energy efficiency measures ADR Program Complete Auto-DR Project Auto-DR Vendor Receive highest incentive to cover project cost 8

IDSM Lessons Learned Customer Champion Facilitate communication Work with stakeholders to align motivations with customer’s goals Remind stakeholders of EE and ADR synergies Provide technical support 9

Within current program design Brand new program design IDSM Lessons Learned Program Design Within current program design Align motivations Incentivize EE program for ADR projects developed Brand new program design Remove ‘silo’ approach One IDSM Program Energy efficiency and Auto-DR incentives 10

Thank You Presenter Customer Champion Fred Yoo Christine Riker ADR Program Manager ADR Program Implementer Pacific Gas & Electric Energy Solutions 415-973-0741 510-550-8513 FXY3@pge.com criker@energy-solution.com www.pge-adr.com 11