1. System Reliability Procurement: Non-wires Alternatives in Rhode Island Tim Roughan National Grid

2. 2 Origins – RI Legislation  Least Cost Procurement Law - 2006  Intended to:  Increase stability through resource diversification  Integrate renewables  Reduce cost of energy  Increase accountability in planning and administration  Required the development of Standards for Energy Efficiency and System Reliability Procurements  Basis for 3-year EE plans  Approved in 2009  Updated in 2011

3. 3 Origins – RI Legislation  Despite approval of proposed SRP Plan in 2009, no SRP funding  Some EE budget money set aside for SRP analysis tool development  Internal guidelines for NWA consideration developed in 2010/2011  EE/SRP Standards updated in 2011  More detail in SRP section on funding, BC analysis and reporting  Incorporated project eligibility criteria from internal guidelines  Established annual reporting  First SRP Report was approved and funded in 2012

4. 4 Our Internal Process  Internal Principles Document  Cross-functional agreement on NWA process  Approved in February 2011  2 Review Cycles (below)  If NWA options are available, wires and NWAs are considered together Initial Review: Engineering Review capital project needs to determine potential for NWA Viable needs must: Have >$1M wires option budget Be unrelated to asset condition Have >= 3 year lead time Be <20% of total area’s load Secondary Review: Customer Org. Review shortlist from T&D for quantitative NWA potential Review should include assessment of: Customer base Load drivers Available technologies

5. 5 Identified Need  Two Feeders out of Tiverton substation serving Tiverton & Little Compton  Forecasted to be overloaded starting in 2014  Potential for ~5,600 affected Customers: 80% Residential, 20% C&I  Wires solution – substation upgrade – will cost $2.9 million in 2014  Non-wires Goal: provide load relief starting in 2014, up to 1MW by 2017

6. 6 Pilot Design – A Collaborative Approach  Project plan includes SRP and EE components  New technology, enhanced incentives, marketing and evaluation through SRP funding  Measures delivered through EnergyWise, the RI single family, residential audit program  Demand response events conducted through SRP funding  Benefit/cost analysis uses the Total Resource Cost model  Uses same avoided costs as the statewide programs  Added benefits associated with the DR events  Regional T&D deferral benefit is replaced with specific locational T&D deferral benefit as calculated as a revenue requirement for deferral years 2014 through 2017  Associated benefits/costs of the leveraged EE components included in BC but not claimed by SRP  Pilot must be cost effective over full six-year life, not in each year

7. 2012 Components Wi-fi Thermostats for Central AC Units Higher Frequency of EE Audits DR Lighting Ballast (Commercial Only) 2013 Enhancements Wi-fi Thermostats and Smart Plugs for Window AC Units Energy Star Window AC Purchase Rebate AC Unit Recycle Rebate Increased, Direct Marketing Community Event 7 Technologies and Methods

8. Preliminary Results to Date YearParticipants Thermostats Installed Window AC Control Plugs Installed Estimated kWh Savings Estimated kW Savings Anticipated DR Savings (kW) Total Estimated kW 2012293503,6408.14452.1 201345574518,74428.875113.8 Total74924522,38436.9119155.9 8  150kW load reduction needed in 2014.  This does not include savings from measures installed as a result of home energy audits completed in the area  180 customers in 2012  83 customers so far in 2013  Evaluation of pilot program will determine amount of resulting savings that are attributable to the pilot

9. Thank You!