1. How The Regional Technical Forum Supports PNW Energy Efficiency Programs January 5, 2010

2. What You’re About to Hear What’s Our Role? What’s Our Role? What’s Your Role? What’s Your Role? How We Make Decisions? How We Make Decisions?

3. RTF - Origin 1996 Congress Charged Council and Bonneville with Formation of a Regional Technical Forum (RTF) 1996 Congress Charged Council and Bonneville with Formation of a Regional Technical Forum (RTF) – “ to develop consistent standards and protocols for verification and evaluation of energy savings, in consultation with all interested parties. 1998 Northwest Governor’s Comprehensive Review Expanded RTF’s Mission 1998 Northwest Governor’s Comprehensive Review Expanded RTF’s Mission –Track regional progress toward conservation and renewable resource goals. –Provide feedback and suggestions for improving conservation and renewable resource development programs in the region. –Conduct periodic reviews of the region’s progress. –Communicate recommendations to appropriate decision-makers 1999 - Council Formed Regional Technical Forum 1999 - Council Formed Regional Technical Forum

4. RTF’s Regional Role Provides standardize protocols for estimating savings and regional power system value for measures/programs Provides standardize protocols for estimating savings and regional power system value for measures/programs Maintains a comprehensive data base of cost-effective conservation measures and programs that contains estimated: Maintains a comprehensive data base of cost-effective conservation measures and programs that contains estimated: –Incremental cost –Savings (kWh & KW) –Benefit/Cost Ratios »Wholesale and retail utility perspectives »Total Resource Cost perspective –Carbon reduction (lbs over life of savings) Performs ongoing updates of data base as technology and standard practices change Performs ongoing updates of data base as technology and standard practices change

5. RTF’s Regional Role (2) Maintains “petition process” which permits utilities or vendors to Maintains “petition process” which permits utilities or vendors to –Propose new measures or savings verification protocols –Request modification of existing verification protocols –Request modification of the savings and cost assumed for existing measures Develops and Maintains Program Technical Specifications and Quality control criteria Develops and Maintains Program Technical Specifications and Quality control criteria Provides regional cost-effectiveness methodology and software Provides regional cost-effectiveness methodology and software –Output includes UTC and TRC B/C ratios –CO2 emissions (forecast)

6. RTF’s Regional Role (3) Internet-based System for Planning Tracking and Reporting regional conservation progress including both savings and expenditures Internet-based System for Planning Tracking and Reporting regional conservation progress including both savings and expenditures –RTF maintains technical data base –Now used for many Bonneville “back-office” functions, e.g., custom project review and approval, invoicing, etc. –Will be used by Washington utilities covered by new state law (I-937) requiring public and private utilities w/more than 25,000 customers to annually report conservation savings to state auditor

7. What the RTF Does Not Do Perform any regulatory function Perform any regulatory function Require use of specific measurement and verification protocols or “deemed savings” Require use of specific measurement and verification protocols or “deemed savings” Establish utility program reporting requirements and/or schedules Establish utility program reporting requirements and/or schedules Restrict which measures utilities can install Restrict which measures utilities can install Require the use of specific program designs Require the use of specific program designs –except for technical and quality control requirements for deemed measures (e.g., PTCS) Establish “rebate or willingness to pay” levels Establish “rebate or willingness to pay” levels

8. Northwest Power and Conservation Council slide 8 Summary - The RTF Is a Scientific and Statistical Advisory Committee to the Council Is a Scientific and Statistical Advisory Committee to the Council Technically, the RTF reports to the Chair of the Council Technically, the RTF reports to the Chair of the Council Pragmatically the RTF reports to the region's utilities, SBCs, regulators and others Pragmatically the RTF reports to the region's utilities, SBCs, regulators and others The RTF makes its recommendations to Bonneville and the region The RTF makes its recommendations to Bonneville and the region RTF meetings, recommendations, databases, and proceedings are public RTF meetings, recommendations, databases, and proceedings are public Many people around the region, and elsewhere, rely on RTF recommendations Many people around the region, and elsewhere, rely on RTF recommendations The RTF is a volunteer organization The RTF is a volunteer organization It is staffed by the Council with contractor assistance It is staffed by the Council with contractor assistance

9. Northwest Power and Conservation Council slide 9 Your Role As An RTF Member Prepare for and actively participate in RTF meetings Prepare for and actively participate in RTF meetings Volunteer for subcommittees where your expertise is needed Volunteer for subcommittees where your expertise is needed Assure that RTF recommendations and databases embody the best available data, science and engineering and professional judgment Assure that RTF recommendations and databases embody the best available data, science and engineering and professional judgment Represent the interests of the RTF, not your sponsoring employer or a personal agenda Represent the interests of the RTF, not your sponsoring employer or a personal agenda Develop and oversee the execution of the RTF’s Work Plan and budget Develop and oversee the execution of the RTF’s Work Plan and budget Recluse yourself from discussions and votes where there is a perceived or real conflict of interest Recluse yourself from discussions and votes where there is a perceived or real conflict of interest Pay attention, try hard and have fun Pay attention, try hard and have fun

10. How Does the RTF Process Work? RTF Provides Centralized Technical Review RTF Provides Centralized Technical Review –Energy Savings Data and Assumptions –Cost-Effectiveness Methodology and Assumptions –Measurement and Verification Protocols/Guidelines Builds on historical program experience Builds on historical program experience Public process – stakeholder “technical” involvement Public process – stakeholder “technical” involvement

11. Measure Screening Process All Possible Measures Screening Criteria & Cost-EffectivenessAnalysis “Deemed” Savings and Cost- Effectiveness “Deemed Calculated” Savings and Cost- Effectiveness “Custom” Valuation, Measurement and Verification Protocols Online Data. Planning, Tracking & Reporting System Base

12. Northwest Power and Conservation Council slide 12 Categories of RTF Savings & Cost Estimates Deemed Deemed Calculated Not Deemable High degree of certainty, reliably predicted based on solid empirical data, known variance, known shape of savings. High volume, repeatable with consistent results. Clear and unambiguous measure specifications. Same as Deemed, but with case- or program- specific calculations to adjust for specific conditions that strongly influence savings such as hours of operation, climate zone, vintage. Insufficient information to produce deemed savings or deemed calculation. Applies to unique facilities, and situations. Use RTF “Group” or “Site Specific” evaluation and verification protocols to establish savings.

13. Northwest Power and Conservation Council slide 13 Provisional Deemed Estimates Provisional Deemed Interim estimates where there is not sufficient program evaluation data to deem savings. But there is some confidence in costs & savings based on limited evaluation, AND Program operation is designed to provide data that would allow deemed or deemed calculated estimates or lead to an approved M&V protocol. Provisional Deemed Savings Estimate Program M&V Plan “Book” Provisional Deemed Savings Evaluate Actual Savings per M&V Plan True-Up Savings Streamlined M&V Protocol

14. Northwest Power and Conservation Council slide 14 What it Takes to Deem Annual energy savings can be reliably predicted Annual energy savings can be reliably predicted –Known variance based on prior program evaluations or generally accepted engineering calculations Diurnal & seasonal energy savings reliably predicted Diurnal & seasonal energy savings reliably predicted Current baseline practice is consistent with practice on which prior savings estimates were established Current baseline practice is consistent with practice on which prior savings estimates were established Measure specifications are consistent with measures evaluated to establish savings or assumptions used in engineering calculations Measure specifications are consistent with measures evaluated to establish savings or assumptions used in engineering calculations Measure is at least as efficient as the measure used to establish savings based on prior program evaluations Measure is at least as efficient as the measure used to establish savings based on prior program evaluations

15. Northwest Power and Conservation Council slide 15 Additional Considerations Overall Savings Potential Matters Overall Savings Potential Matters –The level of effort to determine savings should match the savings potential. Deemed Savings Don’t Last Forever Deemed Savings Don’t Last Forever –Technology, markets, and programs change – deemed savings should change with them. –Starting this year the RTF will assign “sunset dates” to deemed measures slide 15

16. RTF Measure Cost-Effectiveness “Inputs and Outputs” Market Price Forecast ECM Costs, Savings, Load Shapes & Coincidence Factors Avoided Cost by Transmission Control Area ProCost WholesalePowerSystemValue Carbon Emissions Benefits Local Distribution System T&D Benefits System T&D Benefits WholesaleTransmissionSystem Benefits Benefits LocalDistributionSystemValue TotalSocietal Value Value Non-EnergyBenefits