1. 1 Proposed Deemed Savings Values for Residential Refrigerator Recycling Programs June 7, 2005

2. 2 Program Summary Program Energy Goal – Early retirement of existing inefficient refrigerators Secondary “Non-Energy” goals –Removal of “second” refrigerators from stock –Recycling of refrigerants, metals and other materials (PCBs)

3. 3 There’s Lot’s of Potential Sales Weighted Average Residential Refrigerator Energy Use

4. 4 Energy Savings Issues Removal of units that were already going to be “decommissioned” Removal of non-functioning units Removal of units that were only used “part- time” Replacement of “decommissioned” units with other “used” units Interaction with space conditioning

5. 5 Prior Program Experience: Net Savings and Remaining Life Net savings after adjustments for “free-ridership,” replacements, partial use, etc => –California 2002 Evaluation- 53% - 57% 2003 Evaluation- 35% –Colorado 61% –Snoh PUD Pilot 62% of gross savings Remaining Equipment Life – 6 to 8 yrs

6. 6 Prior Program Experience – Gross Savings California –1996 = 2130 kWh/yr –2002 = 1915 kWh/yr –2003 = 2128 kWh/yr Snoh PUD – 1324 kWh/yr

7. 7 Proposed Inputs to Deemed Savings Analysis Average Unit Age = 24 yrs (base year = 2001) Average Unit Consumption = 1453 kWh/yr Remaining Unit Life = 6 years Average Cost for Recycling = $140

8. 8 Net-to-Gross Adjustment Net-to-Gross Adjustments Unit would have been kept but not used - 6% Unit would have been retired w/o program – 7% Unit was only used Part-Time – 10% Unit will be replaced w/another used unit – 11% Space Conditioning Interaction –Inside conditioned space – 14% –Outside conditioned space – 0% Overall Adjustment –Units not replace – 70% (40% of units) –Units replaced New Energy Star – 68% (60% of units)

9. 9 Proposed Deemed Value Input Assumptions Gross Savings – 1453 kWh/yr Net-to-Gross – 69% Net Site Savings (All units) – 829 kWh/yr Remaining Measure Life – 6 years Average Unit Cost (Including utility administrative cost) - $140/unit Units Replaced – 60% Units not Replaced – 40%

10. 10 Levelized Cost for Replacements by Vintage

11. 11 Levelized Cost for Replacements by Vintage

12. 12 Proposed Deemed Values Net Site Savings (All units) – 829 kWh/yr Levelized Cost – 3.1 cents/kWh B/C ratio (TRC) – 1.3 C&RD credit - $110.81* *80% of bulk system value, PV to Utility System is $278 of which $140 is local distribution system value