1. Proposed Deemed Savings Rates for Energy Star 3.0 Plus 30% Televisions By Christina Steinhoff June 1, 2010 1

2.  In May we presented a method to calculate savings for NEEA’s 2009 Energy Star Televisions Program.  Prior to acceptance we needed to explain the differences in the Baseline Energy Consumption Calculation from the NWPCC. Purpose 2

3. Baseline  Two baselines  Baseline energy consumption  Affects the savings rate  Sixth Power Plan defines the baseline as Energy Star 3.0 specification.  Baseline market share  Affects the program’s Net Market Affects  The Sixth Power Plan defines the baseline as television sales that already meet something close to Energy Star 5.0 specification (12% of the market) 3

4. Review Of Proposed Methodology X X X = = = 6,571,116 kWh 1,361,326 kWh 235,832 kWh Total Regional Savings: 0.9 aMW + + Meet a Min of E.S. 3.0+30% Meet a Min of E.S. 4.0 Meets a min of E.S. 5.0 97,499 48,356 14,929 67 kWh 28 kWh 16 kWh Example of 32-inch television sales Sept.-Dec. 2009 Comes from QDI Strategies estimate of the sales by screen size. The estimate is based on NPD Group data adjusted to the Northwest based on program incentives and retail mix. =Baseline Energy Consumption less Qualifying Units Energy Consumption. Data source is NPD Group data for baseline energy consumption and NEEA’s incentives dataset for qualifying unit energy consumption. 4

5. Review Of Proposed Methodology  Energy Consumption (in 7 screen-size categories)  Baseline Energy Consumption  To be more consistent with the NWPCC, we took all televisions sold in first quarter 2009 that met a minimum of E.S. 3.0 specification but less than 3.0 +15%.  N=434,206 televisions (12% of the NPD Group sales)  Qualifying Units Energy Consumption  All incentivized televisions in 2009 (Sept.-Dec.)  N=112,477 televisions with a minimum of E.S. 3.0+ 30% specification 5

6. Baseline Energy Consumption  Even though we attempt to use the same logic, NEEA’s calculation will not equal the Sixth Power Plan.  Baseline Period:  NEEA uses first Quarter 2009 and the 6 th Plan uses December 2009.  Baseline Television Mix:  NEEA uses national sales data and the 6 th Plan uses the average energy consumption of the models available on the Energy Star list.  NEEA only looks at ES 3.0 televisions, while the 6 th Plan may have included a mix of models that include those more efficient than Energy Star 3.0.  Baseline Calculation:  NEEA takes the average energy use of the televisions sold.  The 6 th Plan takes the max energy consumption according to the energy star specification by screen size.  Standby Savings:  NEEA does not include savings from a reduction in standby energy use and the 6 th Plan does.  Days per year:  NEEA uses 365.25 and the 6 th Plan uses 365.  Hours of Use:  NEEA uses 5.2 and the 6 th Plan uses 5. 6

7. Baseline Energy Consumption  The difference amount to 38 kWh hours using the 6 th Power Plan weights between the three buckets. Screen Size 6 th Power Plan Baseline (kWh/Unit) NEEA’s 3.0 Baseline (kWh/Unit) Difference (kWh/Unit) <32”209157-52 32-46”355283-72 >46”53656731 Weighted389351-38 7 Note: the weighted numbers are based on the NWPCC’s weights between the three buckets. Baseline Energy Consumption Compared with the NEEA’s Proposed Baseline

8. Baseline Energy Consumption  If we account for the difference in hours on per day, days in the year and standby, the results are 35 kWh apart. Screen Size 6 th Power Plan Baseline (kWh/Unit) NEEA’s 3.0 Baseline (kWh/Unit) Difference (kWh/Unit) <32”209168-41 32-46”355289-66 >46”53656226 Weighted389355-35 8 Note: the weighted numbers are based on the NWPCC’s weights between the three buckets. Baseline Energy Consumption Compared with the NEEA’s Proposed Baseline with 6 th Plan Unit Conversion and standby consumption

9. Baseline Energy Consumption  So why are the NEEA baseline energy consumption results so much lower?  Screen Size?  The screen size only account for a small difference. The screens in the NEEA dataset are only 1 to 2 inches smaller than the Energy Star List for Sept. 2009.  Significant difference in the efficiency of the televisions.  The 6 th Power Plan may have 1.Taken the average screen size of the models available from the Energy Star list. 2.Used the screen area to calculate the min efficiency to meet the ES 3.0, ES 4.0 and ES 5.0 specifications. This would result in a max watts for each specification. 3.Applied a compliance rate to the three specification's max watts to get the baseline energy consumption for the three screen size categories. 9

10. Proposed Savings Rate Calculation Methodology  We propose accepting the NEEA baseline of E.S. 3.0 using the NPD Group dataset to compare with the 6 th Power Plan.  The NEEA baseline would follow the 6 th Plan logic of ES 3.0 being the baseline.  The NEEA baseline would be based on actual data (purchase patterns). 10

11. Proposed Savings Rate Calculation Methodology NEEA Screen Size Category Baseline Energy Consumption (kWh)* Qualifying Unit Energy Consumption (kWh)** Incremental Energy Savings Rate (kWh)*** Tier 1 (E.S. 3.0+30%) Tier 2 (E.S. 4.0) Tier 3 (E.S. 5.0) Tier 1Tier 2 (Incremental to Tier 1) Tier 3 (Incremental to Tier 2) <32" 157 906246672816 32-46” 266 19119517176-524 >46” 526 7843991844399 11 Note: *Energy consumption of all televisions that met a E.S. 3.0. but less than E.S. 3.0 +15%; weighted based on the screen size mix of the qualifying products. ** Average energy consumption of televisions a part of the NEEA initiative. ***Savings rates are based on NPD Group baseline energy consumption in 2009 first quarter. The qualifying unit energy consumption comes from Energy Solution’s tracking of the NEEA program.

12. Total Regional Savings (E.S. 3.0+ Baseline) NEEA Screen Size Category Incremental Energy Savings Rate (kWh) Total Regional Units*Total Regional Savings (aMW) Tier 1Tier 2 Tier 3Tier 1Tier 2Tier 3Tier 1Tier 2Tier 3 <32" 672816 97,449 48,356 14,9290.80.20.0 32-46” 76-524 120,673 5,640 721.00.0 >46” 1844399 55,362 8,227 1041.20.0 Total: 3.2 aMW Note: *Total Regional Units come from QDI Strategies and are an estimate based on NPD Group and program data. 12

13. Proposed Savings Rate Calculation Methodology  Question to the Regional Technical Forum?  Is the methodology NEEA is using for the calculation of energy savings rates acceptable to compare with the 6 th Power Plan? 13