1. ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY DISPUTES & INVESTIGATIONS ECONOMICS FINANCIAL ADVISORY MANAGEMENT CONSULTING September 18, 2012 P HASE II: U NIT E NERGY S AVINGS (UES) M EASURE C OMPLIANCE : RTF M EETING Navigant Presentation Presented by Mohit Singh- Chhabra, Ryan Firestone and Kevin Cooney Navigant Reference: 150283

2. 1 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Content of Report This presentation was prepared by Navigant Consulting, Inc. exclusively for the benefit and internal use of Regional Technical Forum and/or its affiliates or subsidiaries. No part of it may be circulated, quoted, or reproduced for distribution outside these organization(s) without prior written approval from Navigant Consulting, Inc. The work presented in this report represents our best efforts and judgments based on the information available at the time this report was prepared. Navigant Consulting, Inc. is not responsible for the reader’s use of, or reliance upon, the report, nor any decisions based on the report. NAVIGANT CONSULTING, INC. MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESSED OR IMPLIED. Readers of the report are advised that they assume all liabilities incurred by them, or third parties, as a result of their reliance on the report, or the data, information, findings and opinions contained in the report. June 21, 2012 ©2011 Navigant Consulting, Inc. All rights reserved. Navigant Consulting is not a certified public accounting firm and does not provide audit, attest, or public accounting services. See www.navigantconsulting.com/licensing for a complete listing of private investigator licenses. Investment banking, private placement, merger, acquisition and divestiture services offered through Navigant Capital Advisors, LLC., Member FINRA/SIPC.www.navigantconsulting.com/licensing

3. 2 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Contents Table of Contents 2 Overview of Measures to Brought into Compliance 3Domestic Hot Water Heaters 4Residential Freezers 1Introductions 5Residential Clothes Washers

4. 3 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Contents Table of Contents 2 Overview of Measures to Brought into Compliance 3Domestic Hot Water Heaters 4Residential Freezers 1Introductions 5Residential Clothes Washers 5Conclusions & Next Steps

5. 4 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Introductions The Navigant Team Working on Updating Measure Workbooks:

6. 5 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Contents Table of Contents 2 Overview of Measures to Brought into Compliance 3Domestic Hot Water Heaters 4Residential Freezers 1Introductions 5Residential Clothes Washers 5Conclusions & Next Steps

7. 6 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Updates Required to Bring Measures Into Compliance Overview The Recommendation memoranda outlined updates required to bring the ten UES measures into compliance. These actions, are presented below for the first three measures completed:

8. 7 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Contents Table of Contents 2 Overview of Measures to Brought into Compliance 3Domestic Hot Water Heaters 4Residential Freezers 1Introductions 5Residential Clothes Washers

9. 8 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Domestic Hot Water Heaters Measure Classification and Properties Market SectorResidential Market SegmentAll Measure CategoryDomestic Hot Water Measure Description Replace existing or new construction electric residential-type storage hot water heater with an efficient electric storage hot water heater Sunset Criteria New Federal Standards will be effective April 16, 2015; at this time updates should be applied to the datasets that establish the average baseline and measure EF. Primary Workbook ProCostRTFTemplate257f_v3_9_RES_DHW 08.28.12 ESv08 FINAL POST PRESENTATION CHANGES MADE PROCOST RUN.xlsm Linked WorkbooksMC_AND_LOADSHAPE_6P.XLS Number of Measures, and UES Components Seven measures (Six size ranges, ranging between 25 and 120 gallons tank size, and one measure with same size range (<=45gal and <55gal) but decreased efficiency) using one UES component. See Measure Identifiers for size ranges.

10. 9 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Actions Taken to Bring Measure Into Compliance Domestic Hot Water Heaters

11. 10 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Savings Results Comparison Domestic Hot Water Heaters

12. 11 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Incremental Cost Results Comparison Domestic Hot Water Heaters

13. 12 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY TRC Results Comparison Domestic Hot Water Heaters

14. 13 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY RTF Proposed Motion: I _________ move that the RTF approve the DHW UES Measure to “Proven” with a sunset date of April 16, 2015.

15. 14 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Contents Table of Contents 2 Overview of Measures to Brought into Compliance 3Domestic Hot Water Heaters 4Residential Freezers 1Introductions 5Residential Clothes Washers

16. 15 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Residential Freezers Measure Description and Properties Market Sector Residential Market Segment All Residential Dwelling Types Measure Category Appliances - Refrigeration Measure Description Upgrade to Energy Star Freezer (except Compact) Sunset Criteria 1/1/2013 (New Energy Star Standards come in effect) Primary Workbook ResFreezerFY10v2_0 Linked Workbooks No External links Number of Measures, and UES Components 30 Measures, 1 UES Component

17. 16 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Actions Taken to Bring Measure Into Compliance Residential Freezers Enhanced documentation for assumptions and sources. Updated cost and energy consumption values based on latest available information. Streamlined workbook to only present data necessary for analysis.

18. 17 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Point for Discussion: Adjusted Volumes of Residential Freezers Residential Freezers * Current source for update SourceVintageAdjusted Volume AHAM2008 20.89 cu.ft (value prior to update) RBSA 2012 Adjusted volume disaggregated by two configurations Chest freezers: 26.8 cu. ft Upright freezers: 31.3 cu. ft Source: CEC Database, 2012* Adjusted volumes from the CEC Database closely resemble the RBSA adjusted volumes with the exception of Tier 2 and Tier 4 upright freezers in which the values in the CEC database are smaller. No data available for Tier 2-Tier 5 upright manual configurations, in which adjusted volumes of upright auto freezers of the same tier are used. The adjusted volume table is in the “Baseline and Efficient Case” tab of the Residential Freezer workbook.

19. 18 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Savings Results Comparison Residential Freezers-Results Comparison Any= no Tier; T1= Tier 1 (10%-15% more efficient than federal standard ; T2= Tier2 (15%-20% more efficient than federal standard); T3= Tier 3 (20%-25% more efficient than federal standard);T4-Tier 4; (25%-30% more efficient than federal standard);T5= Tier 5 (30%-35% more efficient than federal standard)

20. 19 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Incremental Cost Results Comparison Residential Freezers-Results Comparison Any= no Tier; T1= Tier 1 (10%-15% more efficient than federal standard ; T2= Tier2 (15%-20% more efficient than federal standard); T3= Tier 3 (20%-25% more efficient than federal standard);T4-Tier 4; (25%-30% more efficient than federal standard);T5= Tier 5 (30%-35% more efficient than federal standard)

21. 20 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY TRC Results Comparison Residential Freezers-Results Comparison Any= no Tier; T1= Tier 1 (10%-15% more efficient than federal standard ; T2= Tier2 (15%-20% more efficient than federal standard); T3= Tier 3 (20%-25% more efficient than federal standard);T4-Tier 4; (25%-30% more efficient than federal standard);T5= Tier 5 (30%-35% more efficient than federal standard)

22. 21 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Increased residential freezer baseline efficiency reduces savings for most measures while reducing incremental costs for all measures except Tier 5 measures. Residential Freezers Residential freezers have become more efficient since the last freezer review, bringing the baseline freezer efficiency to be 5% more efficient than federal standard (as opposed to 2% more efficient than federal standard from last review). The increased baseline efficiency reduced savings for most measures, some measures show increase in savings due to the updated adjusted volume. Incremental costs for all Tiers except Tier 5 measures decreased. TRC’s of all measures are still greater than 1.0.

23. 22 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY RTF Proposed Motion: “I _________ move that the RTF approve the Residential Freezer UES Measure to “Proven” with a sunset date of January 1, 2013”

24. 23 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Contents Table of Contents 2 Overview of Measures to Brought into Compliance 3Domestic Hot Water Heaters 4Residential Freezers 1Introductions 5Residential Clothes Washers

25. 24 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Residential Clothes Washers Measure Description and Properties Market SectorResidential Market SegmentAll Residential Dwelling Types Measure CategoryAppliances Measure DescriptionResidential Clothes Washer Upgrades Sunset CriteriaNovember 1, 2013 ( New Energy Star Criteria) Primary Workbook ResClothesWashersSF_ProCostRTFTemplate257f_v 3_9_9.10.2012 v7.xlsm Linked WorkbooksNo External links Number of Measures, and UES Components 20 Measures, 3 UES Components

26. 25 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Actions Taken to Bring Measure Into Compliance Residential Clothes Washers

27. 26 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Actions Taken Since Last RTF Meeting (8/21/2012) Residential Clothes Washers Expanded Northwest clothes washer retail cost dataset. Last meeting, all clothes washers available at Home Depot (N = 73 machines) in Portland, Oregon were used to inform machine cost. Since the last RTF meeting, Navigant added all front- and top-load machine costs from Sears of Portland, OR (N = 96 machines) and Lowes of Portland, OR (N = 80 machines) for a total of 249 cost data points. Updated clothes washer screening algorithm to screen out all CEC database clothes washers not meeting the current federal standard for water factor (9.5). This resulted in an average CEC database (unique models only) MEF of 2.33. In the previous res clothes washer workbook adopted by the RTF, the average CEC database MEF was 1.94. In addition, the average MEF of 2.33 places the estimated Northwest MEF market average above the average MEF of CEE Tier 1, CEE Tier 2, and WA State Tier 1. Therefore, the efficiency tiers currently considered here are Energy Star, CEE Tier 3, WA State Tier 2, and Energy Star Top 10%.

28. 27 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Savings Results Comparison Residential Freezers-Results Comparison E, E = Electric DHW, Electric Dryer; E, G = Electric DHW, Gas Dryer; G, E = Gas DHW, Electric Dryer; G, G = Gas DHW, Gas Dryer; Any = Any DHW, Any Dryer Note: The previously adopted res clothes washer workbook does not have an efficiency tier equivalent to the current WA State Tier 2.

29. 28 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Incremental Cost Results Comparison Residential Freezers-Results Comparison E, E = Electric DHW, Electric Dryer; E, G = Electric DHW, Gas Dryer; G, E = Gas DHW, Electric Dryer; G, G = Gas DHW, Gas Dryer; Any = Any DHW, Any Dryer Note: The previously adopted res clothes washer workbook does not have an efficiency tier equivalent to the current WA State Tier 2.

30. 29 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY TRC Results Comparison Residential Freezers-Results Comparison E, E = Electric DHW, Electric Dryer; E, G = Electric DHW, Gas Dryer; G, E = Gas DHW, Electric Dryer; G, G = Gas DHW, Gas Dryer; Any = Any DHW, Any Dryer Note: The previously adopted res clothes washer workbook does not have an efficiency tier equivalent to the current WA State Tier 2.

31. 30 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY RTF Proposed Motion: “I _________ move that the RTF approve the Residential Clotheswasher UES Measure to “Proven” with a sunset date of November 1, 2013