1. Energy Trust of Oregon Quarter 1 2018 Report June 19, 2018
[note to Mike – this will be the first meeting with Letha Tawney]
Good morning.
I am Michael Colgrove, executive director of Energy Trust of Oregon. It’s nice to meet you Commissioner Tawney. I look forward to having an opportunity to provide you with additional background on Energy Trust in a separate meeting. I will keep today’s presentation brief.
Joining me here today is Mark Kendall, secretary of our board of directors. Whenever possible, a representative of the board joins me here for these quarterly presentations of our results and activities.
These presentations are important to me and the board. We take seriously your oversight of our role as administrator of utility customer funds and welcome the public transparency associated with our quarterly reports and presentations to you.
Mark will share a couple of updates from the board, and then I will touch on a few highlights from Q1.
Hand off to Mark
Good morning. I’m pleased to join you for our Q presentation.
I have a few board updates to share.
I am pleased to relay that Ernesto Fonseca, CEO of Hacienda Community Development Corporation, has joined our board of directors. Dr. Fonseca brings deep expertise in sustainable communities, energy efficiency and affordable housing to the Energy Trust board.
In May, the board of directors held a workshop to review progress on our current five-year strategic plan, which ends in 2019, and to begin planning for development of our Strategic Plan.
Five-year strategic plans are required in our grant agreement with you.
The board strategic planning committee, which I chair and which includes the OPUC’s Elaine Prause, will work with Energy Trust staff to develop a draft strategic plan for review and public comment in 2019.
Today, I’m here to listen on behalf of the board of directors and I look forward to hearing any questions you may have.
Back to Mike
I’m pleased to present our Quarter results.
The full Q1 report was delivered to the commission in mid-May and contains information on our revenues and expenditures, energy savings and renewable generation, program and administrative costs, and program-specific highlights. It is posted and available to the public on Energy Trust’s website.
Q1 is a relatively light quarter, in terms of expenditures and results. Savings are typically lower in the first half of the year as more studies and assessments are completed—compared to the second half of the year, when more projects close and we are able to report the associated savings and generation.
For that reason we generally make the Q1 presentation a short presentation and I will not address details on savings, generation or expenditures unless you have specific questions.
Before diving in, I will quickly note the customers featured on this slide are Vern and Marti Spaur on their ranch in Wallowa. [If asked, Vern is seated in the photo] A $137,470 cash incentive from Energy Trust helped the Spaurs convert an open irrigation ditch into pressurized pipe and install two micro-hydropower generation turbines.
Energy Trust of Oregon
Quarter Report
June 19, 2018

2. Q1 2018 Savings and Generation Results
Typically lowest quarter for savings and generation
Results are in line with expectations
This slide highlights savings and generation for Q1. I won’t cover it in detail. The main takeaway is that we are on track with where we would expect to be for this time in the year.
[skip the rest unless specifically asked a question]
In Quarter 1, we saved:
4.3 average megawatts of electricity, 8% of the annual goal
668,868 annual therms of natural gas, 10% of the annual goal
In Quarter 1, we generated:
0.36 aMW of electricity, 19 percent of the annual goal
If asked, Q efficiency progress by utility:
8% in PGE (goal 36.4 aMW)
7% in Pacific Power (goal 20.2 aMW)
10% in NW Natural (goal 5.7 MMTh)
10% in Cascade Natural Gas (goal 547,106 therms)
21% in Avista (goal 349,520 therms) 2 2

3. Q Sites Served
This slide provides a view of sites served across the state, totalling 9,418.
[skip the rest unless specifically asked a question]
Our network of 2,300 contractors and allied professionals helped residential, commercial and industrial customers benefit from energy-efficiency, solar and hydropower investments at more than 9,400 homes and businesses around the state in Q1.
This map serves as an indicator of activity, although it does not capture all types of program activity serving customers, such as products sold at retail. 5 3

4. Q1 2018 Expenditures and Revenues
$57.2 million in revenue; $29 million in expenditures
$8.4 million or 29% spent on incentives
Overall revenues totaled $57.2 million for Q1 2018, 6 percent over what was budgeted.
Total expenditures, which are shown in the bar charts, totaled $29 million.
[skip the rest unless asked]
Electric efficiency expenditures were 14 percent below budget.
Gas efficiency expenditures were 13 percent over budget.
Renewable energy expenditures were 27 percent below budget.
You’ll see that administrative expenditures are higher at the beginning of the year compared to overall spending. As I mentioned, this is because most expenditures are claimed in the second half of the year when more projects complete. By year-end, we expect to spend about 6.6% of expenditures on administrative and program support costs.
For background, actual Q expenditures + comparisons to Q expenditures
Q Q % difference
Total $30,427,072 $29,087,284 4% decrease
Efficiency $24,987,438 $25,361,192 2% increase
Renewables $3,869,018 $1,729, % decrease
Admin $1,570,615 $1,972, % increase
If asked:
Last year’s Q1 renewable energy expenditures were 34% over budget due to high demand for solar incentives. 4 4

5. Q1 Notable Activities
Completed transition to consolidate three residential energy efficiency programs, reducing costs
Solicited stakeholder input on strategies to increase access to solar for low- and moderate- income communities
Moderately increased solar incentives to account for higher above-market costs and lower demand after RETC expiration
Diversity, Equity and Inclusion Committee launched 10 goals to achieve by 2020
The Q1 report contains many notable highlights for the organization and energy programs. I’ll just call out four for you today.
Energy Trust completed a transition to consolidate its three residential programs and align residential program management and delivery contracts according to this new structure. This transition was spurred by our success with market transformation in residential lighting, which means we will no longer claim savings from low-cost, high-volume lighting measures in the future and must find ways to reduce costs and focus on developing new sources of savings. I’m happy to report we were able to reduce costs by $1.2 million from 2017 to 2018.
On the renewables side, Energy Trust solicited input from stakeholders around the state on proposed strategies to increase access and solar adoption in low- and moderate-income communities. With support from a U.S. Department of Energy grant, the Solar program collaborated with Oregon Department of Energy, the Clean Energy States Alliance and five other states to identify and prioritize strategies.
The Solar program also moderately increased residential incentives in Q1 to account for higher above-market costs and lower demand after the expiration of the Oregon Department of Energy’s Residential Energy Tax Credit at the end of 2017.
To help reach, serve and deliver benefits to more participants, Energy Trust began work on an operations plan for its Diversity, Equity and Inclusion (DEI) Initiative, which includes identifying resources needed to achieve 10 goals by the end of Of the 10 goals, Energy Trust prioritized a goal focused on data for Starting there will support the organization in understanding where participation gaps exist across a broad range of customer characteristics, including communities of color, rural communities and people with low and moderate incomes. Initial work commenced to develop systems to collect, track, analyze and report demographic information. For the first half of 2018, staff will focus on data collection, analysis and benchmarking.
[stop here. detail below for reference, only if asked]
Goal #1: Efficiency program participation
Increase customer participation in energy efficiency programs for all underserved populations
Goal #2: Renewable energy program participation
Increase customer participation in renewable energy programs for all underserved populations
Goal #3: Diverse trade allies
Increase participation in the trade ally network by minority-owned and women-owned businesses
Goal #4: Trade ally projects
Increase the number of projects completed by minority-owned and women-owned Trade Allies
Goal #5: Diverse suppliers
Increase the number of contracts executed with minority-owned and women-owned businesses
Goal #6: Relationships
Increase overall market awareness and understanding of underserved populations through external engagement
Goal #7: Diverse staff
Increase the diversity in recruitment and hiring of employees
Goal #8: Data and analysis
Develop systems and support needed to collect, track, analyze and report demographic information Goal #9: Increase the Intercultural Effectiveness Scale (IES) survey score of all staff and board of directors
Goal #10: Reporting
Increase transparency and community engagement by publishing the DEI Operations Plan and progress towards its goals  

6. Thank You Michael Colgrove Executive Director
Thank you. I’m happy to answer questions. 6