1. Conservation Update 2010-2011 Achievements 2012-2013 Target and10-year Plan Board of Commissioners Nov. 21, 2011

2. Today’s Presentation Review 2010 -2011 Summary 2012-2013 Planning – Establishing two-year target, 10-year plan – Proposed measures by sector – Proposed budget Next steps 2

3. Quick Review Energy Independence Act (I-937) – Requires utilities to acquire all cost-effective conservation – Requires public process for target-setting – Finalized at public hearing Dec. 5 Conservation is now part of Energy Resources Group – Fresh philosophy: conservation as an energy resource

4. 2010-2011 Achievements 3.12 aMW

5. Expected Results by Sector Residential = 1 aMW Commercial = 0.12 aMW Industrial = 2.2 aMW Total savings = 3.2-3.6 aMW Enough to power 1,700 homes 5 Attic ductwork inspection

6. 2010-11 Programs Residential – CFLs – Weatherization incentives – Low-income grant Industrial – CO2 scrubbers – Variable speed fans – Lighting 6 Window inspection, Kittitas St.New CO2 scrubbers at Stemilt

7. Chelan PUD HQ Bldg. Load Profile 35% Reduction in Energy Usage from 2010 to 2011

8. Target Setting Assessed available methods – Power Plan Calculator – Modified Calculator – Utility Specific Analysis Recommend the Utility Specific Analysis – Developed according to law – Specific to our customers – Good business practice 8 Measuring and verifying energy savings

9. Conservation Target Options 9

10. 10-Year Plan (Utility Specific Analysis) 10

11. 2012-2013 Target Recommended target is 3.38 aMW Two-year cost to implement = $4.7M- $5.3M Positive Rate of Return 11 Commercial lighting retrofit at Union 76 station, Wenatchee

12. 2012 Stack

13. Reduce Irrigation Pump Energy by ~ 40%

14. NEEA Market transformation group Membership counts towards I-937 targets 14 ?

15. In Conclusion Conservation is an energy resource Utility Specific Analysis – Developed according to law – Specific to our customers – Makes good business sense 15

16. Next Steps 16 Dec. 5 - Return to the Board with a resolution – Will also be a public hearing Jan. 1 - Submit to Dept. of Commerce

17. Questions?