1. PAURAVI SHAH IOU WATTAGE RANGE METHOD(WRM) WORKING GROUP: HENRY LIU(PG&E), PAURAVI SHAH(PG&E),MINI DAMODARAN(PG&E), THOMAS PASKER, AJAY WADHERA (SCE), JEFF COX & MARTIN VU(SDG&E) OCTOBER 27, 2016 WRM methodology for High/low- bay and exterior lighting luminaires

2. Presentation Overview Wattage Range Method (WRM) Objective: Seeking CalTF feedback on the wattage range method (WRM) change in calculating savings for non residential bay and exterior lighting Background on WRM  History of WRM  Issues with current WRM structure Why address issues now? Recommended proposed method Questions or Comments Appendix – Background analysis October 2016 2

3. Background on WRM Wattage Range Method (WRM) Applies to LED luminaire products (bay lighting, outdoor lighting, etc.) Range of LED Wattages mapped to single baseline or range of baseline wattages (depending on the LED luminaire type) Wattage Reductions for Measures Using Ranges  If the savings are calculated based on typical wattage ratings within specific ranges then pre-existing wattage shall be the lowest wattage within the pre- existing range and the measure wattage shall be the highest wattage within the measure wattage range. Workpaper disposition for Lighting Retrofits, CPUC, ED, March 1, 2013 section 5b, page 3 & 4) Example: 40 – 131 W LED (Measure case) replacing 175W pulse-start metal halide (Base case) (System Wattage 208W)  Current method: Using highest LED wattage: 208 W – 131W = 77W savings October 2016 3

4. Current WRM Approach: Impact Wattage Range Method (WRM) Disadvantages Using upper end of LED range underestimates savings for most fixtures Incentivizes customers to buy less efficient, higher wattage products Must be updated regularly to account for changing LED efficacy Advantages Simple to apply Uses easily collected lamp data (watts) More efficient products do not yield higher savings October 2016 4

5. Navigant Study – Wattage Range findings Wattage Range Method (WRM) October 2016 5 Wattage Range Savings Estimation Method findings Navigant Study suggests that the typical installed LED wattage for bay and exterior lighting applications falls nearer to the mean of the existing LED wattage ranges. The existing methodology of deriving delta watt savings using the upper bound of the LED wattage range is therefore underestimating savings and not reflecting typical installation. Additionally, It also dis ‐ incentivizes the promotion of more efficacious products. Navigant Study, Key Findings and Recommendations section (page 1-12)

6. Navigant Recommendations for Improvements to Wattage Range Method Wattage Range Method (WRM) Recommendation 2 Consider adding the narrower ranges suggested in Figure 4 ‐ 7 within the current lowest wattage range to improve accuracy in the delta watts savings calculation. Update guidance in next lighting disposition to specify using mean of LED wattage ranges for delta watts calculations instead of upper end. October 2016 6

7. Navigant Workpaper Update Study: WRM Results Wattage Range Method (WRM) In each case, study results show wattage range midpoints are close to the market average. October 2016 7

8. Working Group Recommendation Considerations: Wattage Range Method (WRM) Navigant Recommendation Working Group AnalysisWorking Group Final Determination 1. Use mean of LED wattage range rather than upper end for savings calculations Simple and suitable solution to improving savings claims Accepted with additional modifications to account for efficacy updates. 2. Consider adding narrower ranges for lowest wattage range to improve accuracy in savings calculation. Current measure code wattage ranges are based on a work paper disposition defining the base case fixture wattages and lumen outputs. Under consideration with work paper updates to baseline and current DLC fixture data. October 2016 8

9. Working Group Review of Navigant report Recommendation 1: Mean WRM Wattage Range Method (WRM) Challenges Work paper updates for efficacy improvements in the market still required Benefits More accurate savings claims Similar assumptions and calculations as current methodology, few workpaper changes required Minimal customer & program disruption October 2016 9

10. Savings Accuracy Improvement With Mean Wattage Method Wattage Range Method (WRM) Example Calculation Comparison: Base Case System Wattage Minimu m Fixture Lumens Measure Case System Wattage Range Current Method: Delta Wattage/ Claimable Savings Recommended Method: Delta Watts/ Claimable Savings Percentage Increase in Savings using Mean Wattage Method 2086,20040-131208 – 131 = 77208 – 86 = 12258% 2329,600>131-160232 – 160 = 72232 – 146 = 8619% 28811,200>160-187288 – 187 = 101288 – 174 = 114.513% October 2016 10

11. Navigant Recommendation #2: Splitting measure code October 2016 Wattage Range Method (WRM) 11 Consider adding the narrower ranges suggested in Figure 4 ‐ 7 within the current lowest wattage range to improve accuracy in the delta watts savings calculation.

12. Navigant Recommendation #2: Splitting Measure Code October 2016 Wattage Range Method (WRM) 12 Base Case Lamp Watts & Qty Base CaseMeasure Description Base Case system wattage Fixture Lumens 20 - 50 degree zonal lumens Minimum Fixture Lumens 100MH 100 LED high-bay or low-bay fixture > 36W and <= 57W replacing 100 Watt HID fixture 1286,7374,0655,000 150MH 150 LED high-bay or low-bay fixture > 57W and <= 85W replacing 150 Watt HID fixture 1909,9275,9905,000 175Pulse-Start MH 175 LED high-bay or low-bay fixture > 85W and <= 100W replacing 175 Watt HID fixture 2089,3925,6676,200 2 – 32 T8 Fluorescent 2nd generation 2L VHLO LED high-bay or low-bay fixture > 28W and <= 46W replacing 2 Watt HID fixture 795,8802,5185,000 3 – 32 T8 Fluorescent 2nd generation 3L VHLO LED high-bay or low-bay fixture > 46W and <= 76W replacing 3 Watt HID fixture 1129,6914,0816,200 4 – 32 T8 Fluorescent 2nd generation 4L VHLO LED high-bay or low-bay fixture > 76W and <= 100W replacing 4 lamp fluorescent fixture 15112,2845,5897,600

13. Navigant Recommendation #2: Splitting Measure Code October 2016 Wattage Range Method (WRM) 13 Base Case Lamp Watts & Qty Measure Description Base Case system wattage Delta Watts using Max measure case Average measure case Watts Delta Watts using Average measure case Watts % savings increase using average of measure case range % savings increase from efficacy improve- ment 100 LED high-bay or low-bay fixture > 36W and <= 57W replacing 100 Watt HID fixture 128 71478215%23% 150 LED high-bay or low-bay fixture > 57W and <= 85W replacing 150 Watt HID fixture 1901057111913%23% 175 LED high-bay or low-bay fixture > 85W and <= 100W replacing 175 Watt HID fixture 208108931167%34% 2 – 32 LED high-bay or low-bay fixture > 28W and <= 46W replacing 2 Watt HID fixture 7950947660419%33% 3 – 32 LED high-bay or low-bay fixture > 46W and <= 76W replacing 3 Watt HID fixture 11233374227%31% 4 – 32 LED high-bay or low-bay fixture > 76W and <= 100W replacing 4 lamp fluorescent fixture 15136615142%92%

14. Navigant Recommendation #2: October 2016 Wattage Range Method (WRM) Base Case Lamp Watts & Qty Base CaseMeasure Description Base Case system wattage Fixture Lumens 20 - 50 degree zonal lumens Minimum Fixture Lumens 200Pulse-Start MH 200 LED high-bay or low-bay fixture > 100W and <= 122W replacing 200 Watt HID fixture 232 11,8887,1749,600 250Pulse-Start MH 250 LED high-bay or low-bay fixture > 122W and <= 142W replacing 250 Watt HID fixture 288 13,7518,29811,200 320Pulse-Start MH 320 LED high-bay or low-bay fixture > 142W and <= 168W replacing 320 Watt HID fixture 365 17,55110,59112,900 350Pulse-Start MH 350 LED high-bay or low-bay fixture > 168W and <= 200W replacing 350 Watt HID fixture 400 20,85412,58415,800 400Pulse-Start MH 400 LED high-bay or low-bay fixture > 200W and <= 213W replacing 400 Watt HID fixture 456 24,77714,95221,600 450Pulse-Start MH 450 LED high-bay or low-bay fixture > 213W and <= 244W replacing 450 Watt HID fixture 506 30,51318,41323,900 750Pulse-Start MH 750 LED high-bay or low-bay fixture > 244W and <= 381W replacing 750 Watt HID fixture 818 35,03121,13932,300 1000 Pulse-Start MH 1000 LED high-bay or low-bay fixture > 381W and <= 571W replacing 1000 Watt HID fixture 1080 76,08545,91343,400 6 – 32 T8 Fluorescent 2nd generation 6L VHLO LED high-bay or low-bay fixture > 100W and <= 122W replacing 6 lamp fluorescent fixture 226 17,2537,6339,600 8 – 32 T8 Fluorescent 2nd generation 8L VHLO LED high-bay or low-bay fixture > 122W and <= 168W replacing 8 lamp fluorescent fixture 302 22,5459,97411,200 14

15. Navigant Recommendation #2: October 2016 Wattage Range Method (WRM) 15 Base Case Lamp Watts & Qty Measure Description Base Case system wattage Delta Watts using Max measure case Average measure case Watts Delta Watts using Average measure case Watts % savings increase using average of measure case range % savings increase from efficacy improve- ment 200 LED high-bay or low-bay fixture > 100W and <= 122W replacing 200 Watt HID fixture 23211011112110%40% 250 LED high-bay or low-bay fixture > 122W and <= 142W replacing 250 Watt HID fixture 2881461321567%36% 320 LED high-bay or low-bay fixture > 142W and <= 168W replacing 320 Watt HID fixture 3651971552107%30% 350 LED high-bay or low-bay fixture > 168W and <= 200W replacing 350 Watt HID fixture 4002001842168%36% 400 LED high-bay or low-bay fixture > 200W and <= 213W replacing 400 Watt HID fixture 4562432072503%35% 450 LED high-bay or low-bay fixture > 213W and <= 244W replacing 450 Watt HID fixture 5062622292786%35% 750 LED high-bay or low-bay fixture > 244W and <= 381W replacing 750 Watt HID fixture 81843731350616%24% 1000 LED high-bay or low-bay fixture > 381W and <= 571W replacing 1000 Watt HID fixture 108050947660419%33% 6 – 32 LED high-bay or low-bay fixture > 100W and <= 122W replacing 6 lamp fluorescent fixture 22610411111511%43% 8 – 32 LED high-bay or low-bay fixture > 122W and <= 168W replacing 8 lamp fluorescent fixture 30213414515717%40%

16. Metrics for Evaluating Implementation of the Best Recommendation: Wattage Range Method (WRM) CriteriaMean Wattage Range Kilolumen Method Availability of required data Yes Potentially Accessibility of required data by utilities Yes Potentially Feasibility of data collection by all programsCostly because they are downstream/catalog measures Feasibility of implementation by engineering in work papers Yes Complicated Impact to stakeholders and Programs Minimal impact Large Impact Scalability of methodology for various products in work papers Yes Potentially Cost-effectiveness Yes Increased initial cost of implementation Increases Accuracy of Saving Estimates Yes October 2016 16

17. Summary October 2016 Wattage Range Method (WRM) 17 Issues  Current wattage range method does not capture accurate savings and therefore does not allow IOUs to incent customers appropriately.  Kilolumen method has proven challenging for implementation.  Implementation timeline significantly impacted due to required changes to all internal systems, reporting systems, Implementer communications/training – up to 1 year.  Market place confusion with lumen terminology and reporting requirements.  Mis-incentivizes higher lumen packages and overlit spaces.  Manufacturer spec sheets not aligned with tested specs reported on QPL. Recommendations  Navigant recommendation for using mean of wattage range allows accurate savings to be captured.  Navigant recommendation for splitting wide wattage range measure code into multiple codes.

18. Summary October 2016 Wattage Range Method (WRM) 18 Timeline Required for Implementation of Changes to methodology  For any changes made to Programs, 90 day notice to Stakeholders and Customers required.  Changes to incentives, measure code structure, product qualification requirements, etc.  DLC Technical Requirements V4.0 update effective April 1, 2017  Timing of updates conflict with rolling portfolio guidelines  Work paper updates to reflect new efficacy requirements

19. Questions or Comments? Wattage Range Method (WRM) October 2016 19

20. Appendix Wattage Range Method (WRM) October 2016 20