1. Northwest Power and Conservation Council The Northwest Experience with Energy Efficiency As A Resource Option Tom Eckman Manager, Conservation Resources Northwest Power and Conservation Council

2. Northwest Power and Conservation Council slide 2 Regional Engineering and Economic Forecast vs. Actual Use – 1965 to 1985

3. Northwest Power and Conservation Council slide 3 Impact of Actions Taken in Response to “Engineering and Economic Determinist’s Forecasts and Plans 416% Rate Increase over 5 years

4. Northwest Power and Conservation Council slide 4 First Lesson – There Are No Facts About the Future

5. Northwest Power and Conservation Council slide 5 Council Adopts First Regional Conservation’s Goals 4,790 aMW 660 aMW

6. Northwest Power and Conservation Council slide 6 Utility Reaction to Council’s First Plan Was “Mixed”

7. Northwest Power and Conservation Council slide 7 Second Lesson – Energy Efficiency Resources Can Be Acquired in Significant Quantities Utility & BPA Programs, Energy Codes & Federal Efficiency Standards Now Produced Over 30,000 GWH/year of Savings

8. Northwest Power and Conservation Council slide 8 Third Lesson – Energy Efficiency Can Significantly Reduced Load Growth

9. Northwest Power and Conservation Council slide 9 More Evidence That Efficiency Works - PNW Average Residential Electricity Use/Capita Energy Efficiency Programs Begin

10. Northwest Power and Conservation Council slide 10 IS THAT AS GOOD AS IT GETS IS THAT AS GOOD AS IT GETS?

11. Northwest Power and Conservation Council slide 11 Council’s Current Estimate of Remaining “Technically Available” Conservation Potential

12. Northwest Power and Conservation Council slide 12 Fourth Lesson – Even After 30 Years of Development There Remains A Large Energy Efficiency Potential 5 th Plan Estimate

13. Northwest Power and Conservation Council slide 13 Lessons Learned – Power System Planning Energy Efficiency Reduces NPV System Cost and Risk Energy Efficiency Reduces NPV System Cost and Risk –Efficiency Resources Are A Low Cost (avg. 2.4 cents/kWh) Hedge Against Market Price Spikes –They’re Not Subject to Fuel Price Risk –They’re Not Subject to Carbon Control Risk –They Can Be Significant Enough In Size to delay “build decisions” on more expensive and higher risk generation It takes REAL MONEY, DATA and ANALYSIS to properly size efficiency resources It takes REAL MONEY, DATA and ANALYSIS to properly size efficiency resources –Northwest invested about $14 per capita in 2005 acquiring efficiency, several other US states are spending more