1. Residential Refrigerator Decommissioning Subcommittee Meeting “Brother In Law Factor” April 16th, 2014 1

2. Brother In Law Factor/ R2 As Per UMP: Percentage of the would-be acquirers of avoided transfers that found an alternate unit are referred to as “R2”. Note, Percentage of the would-be acquirers of avoided transfers that did not find an alternate unit are referred to as “(1-R2)”. 2

3. Option 1: UMP Protocol/ Status Quo Assume R2 = 50 %. Justification: We don’t know, so pick the middle. We can’t know, so pick the middle. A reliable study not possible because: Difficult/impossible to identify (1-R2) customers. Questionable whether R2 customers can reliably respond to the hypothetical question. 3

4. Option 2: PSE Evaluation Assume: R2 = 97% Justification: Finding from survey of recent acquirers of used refrigerators in PSE service territory. 4

5. Option 3: Meet in the Middle Assume R2 = 75 %. Justification: We know primary unit acquirers will always be R2, so we could assume that R2= 50 % is the floor. We could also reasonably assume that R2 = 97% is ceiling, based on the PSE study results. This assumes the would-be acquirers receiving units through non-retail channels have similar customer profiles, but they’re more likely to have a higher mix of secondary unit acquirers. So let’s pick the middle, R2 = 75% Conveniently this aligns with ratio of primary to secondary units in the PNW is 77 % to 23%. (RBSA, density 1.3) 5