1. Inclusive Financing for Housing Energy Upgrades
Thank you for the invitation to join you at this Summit…
Marshall Cherry, COO
Roanoke Electric Cooperative
October 12, 2016

2. Electric Cooperatives in NC invest in local economic development
2.5 million North Carolinians are served by an electric co-op
93 of the 100 counties are served by an electric co-op
Roanoke Electric
Source: NC Electric Membership Cooperative

3. ` 1,500 square mile service area 2,210 miles of line
$39 million operating revenue
$84 million asset value
52 employees
14,700 meters
95% residential
5% commercial/industrial `

5. More people reporting high bills
40% of our members state that their average electric bill averages more than $200 per month, compared to 21% on the national benchmark.

7. Efficiency upgrades can lower bills
Insulation
Duct Sealing
Air Sealing
Heat Pump Upgrades
Water Heater Wraps
LED

8. Our initial loan offer wasn’t enough get to “Yes”…
We offered cost effective upgrades and on-bill financing…
Yet major barriers remained:
Creditworthiness
Renter eligibility
Disinterest in additional debt
So, we sought a solution that would be more inclusive and generate more value for more members

9. Customer: Current & Future
Opt-In Tariffed Approach
Capital Provider
Utility
REC
Utility
REC
USDA RUS - EECLP
ON-BILL
COST RECOVERY
TIED TO METER
INVESTMENT
IN UPGRADES
Metered Site
Solution Providers
Program Operator
REC
Member-Owners
Local Contractors
TRC
Customer: Current & Future
Based on the Pay As You Save® system developed by EEI.

10. Where We Invest Pass Co-Pay No Go
Savings are sufficient for the utility to recover its investment within 10 years through a tariff capped at 75% of estimated savings
25% of estimated savings stay with member
Purchase of EE Credits capped at $.02/kWh for total savings
Co-Pay
Amount needed from member (if any) in order to make the investment Pass
No Go
Assessment doesn’t identify savings that are cost effective enough to warrant investment
Assessment identifies major repairs needed first
Estimated savings are calculated using current rates – without assuming rate escalation.

11. Actual Results for Initial Participants
Sample of over 75 homes
Average cost of upgrades
$7,135.00
Average buy-down for EE Credits
$350.00
Average monthly savings per site
$105.00
Average monthly tariff
$64.00
Average monthly savings for member
$41.00
% of savings kept by member during cost recovery (Target: 25%)
39%
10-year term at 3% per annum

12. Results $1 million of in investment in the first year Better buildings
Jobs and workforce development
Lower costs for the utility
Lower bills for the participants
Higher customer satisfaction

13. Offer: We can help more communities
Millions of dollars of capital for cost effective investment can finally reach renters and low-income households.
We have extended an open offer of assistance to cooperatives in NC and across the country.
Investor owned utilities like Duke can use the same solution.

14. Request: Reaching beyond efficiency upgrades
We find good investments in the majority of the houses we evaluate for cost effective upgrades.
The #1 reason we decline to invest: The house is unlikely to be fit for service for the life of upgrades. Major repairs needed.
We seeking experts who can help us explore options to address this chronic problem in a systemic way – including developing better housing stock in our service area.

15. Inclusive Financing for Housing Energy Upgrades
Thank you for the invitation to join you at this Summit…
Marshall Cherry, COO
Roanoke Electric Cooperative
October 12, 2016

16. Appendix

17. Harnessing Our Business
Members contact us seeking assistance with cost savings.
Roanoke EC, through The Roanoke Center, identifies the best efficiency upgrades for investment.
Contractor installs upgrades at no upfront cost to member, with quality assurance oversight from The Roanoke Center.
Our program is open to members regardless of income, credit score, or status as renters or home owners.
We do screen for bill payment history, checking for more than 2 disconnections for non-payment in the last 12 months.
Utility recovers its costs for the upgrades with a fixed charge on the bill that is less than the estimated savings.

18. Path to Investment & Returns
Cost Savings Inquiry
Check usage history; complete enrollment
Site visit by Program Operator
Evaluation of Opportunities for Investment
Upgrades installed by Certified Contractor
Pay contractor and assign Tariff to meter at member’s location

19. The Offer & Investment
Allows more member-owners to access capital for energy efficiency improvements to their properties/dwellings on a debt-free basis
Helps local qualified contractors gain steady and consistent work
Lowers demand costs for the electricity Roanoke EC buys
Avoids purchasing solar, poultry, swine and wind renewable energy credits that are mandated by the State of NC

20. We are financing our investments with financing from the Energy Efficiency & Conservation Loan Program
Upgrade to $ave
Roanoke Electric
Cooperative
Using PAYS®
EECLP
PAYS®
Up to $5 Billion
available annually
at Treasury rates
$6 Million
Investment
program
~$7,000
in upgrades
per participant
Pay As You Save® and PAYS® are trademarks of Energy Efficiency Institute, Inc.

21. Decision Tool for Utility Managers:
Key considerations before investing in resource efficiency and rooftop solar through a tariffed on-bill program
January 2016

22. Bill Size & Member-Owner Satisfaction