1. ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY DISPUTES & INVESTIGATIONS ECONOMICS FINANCIAL ADVISORY MANAGEMENT CONSULTING October 22, 2012 P HASE II: U NIT E NERGY S AVINGS (UES) M EASURE C OMPLIANCE : RTF M EETING – U PCOMING M EASURES 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 Split workbooks: Spec This measure will also be separated into two different workbooks to accommodate the number of measures and differing costs, EULs that accompany each measure Workbook structure and formulae need corrections include re-running Pro- Cost and adding a quality control test to detect out of date pro cost runs.. Documentation updates to correct hours of use sources. Measure Definition needs to be updated to include sunset criteria based on EISA (Energy Independence and Security Act) requirements. Input parameter updates include updating the source used for baseline incandescent wattages by lamp type, updating the hours of use (HOU) tables, and update lamp wattage sources for “Outdoor” lamp type baseline wattage using current sources for “Exterior” lamp wattages Residential Specialty CFL and LED Down-Lights CFL/ LED

4. 3 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Workbook Structure and Formulas: It is recommended that motors greater than 500 HP be analyzed by the same method, and in the same structure as smaller motors. Measure Definition: Investigate creating more categories for motors smaller than 500 HP based on their configuration (Totally Enclosed Fan Cooled (TEFC) and Open Drip Proof (ODP)) and RPM (revolutions per minute) Input Parameters: The following input parameters have been identified as requiring an update: –The reduction in motor efficiency due to standard rewind practices needs to be updated based on new studies. –The load factor, hours of operation and motor efficiency of motors larger than 500 HP need to be updated using available RTF resources and newer studies. Green Motor Rewinds

5. 4 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY The primary recommendations involve using an updated CEC dataset for kWh/year and gallons/cycle (WF) values, Energy Star and CEE specification updates, fixing erroneous wastewater savings calculations, and removing the standby energy savings compo Workbook Calculation Errors: Waste water energy savings calculation needs to be updated. Workbook Structure and Formulas: Redundant worksheets need to be removed; assumptions and parameter constants need to be reorganized into one location. Once this is completed, the Pro-Cost template will be rerun. Measure Definition needs to be updated based on new Energy Star specifications. Unit Energy Savings Calculation needs to be updated to use new Energy Star specification metrics, analysis dataset needs to be updated, Water usage efficiency criteria should be incorporated and the “minimum kWh filter” should be removed. Input parameters need to be changed from energy factor (EF) values to estimated annual energy usage (EAEU) values in kWh/year; this removes the need for estimating stand by energy. Other issues that need to be investigated are: –Research number of cycles per year for dish-washers. –Understand how up-coming Energy Star Specification and new CEE Tiers affect cost and EUL estimate of the measure (As well as EUS) Residential Dishwashers

6. 5 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Separate UES category needs to be developed for new construction applications to account for the difference between an existing weatherized home and a new home Workbook structure and formulae corrections include developing standalone workbooks for different measures, deleting the Worksheet ‘AssumptionsSummary’, and only including data relevant to upgrade measures in the Worksheet ‘SEEM Savings’. UES Savings Estimation needs to be updated using the most updated SEEM run. Input parameter updates include reevaluating the input baseline efficiency and expanding the scope to include new construction. Other tasks needed to bring this measure into compliance include: –Navigant will explore splitting the work-book into two separate work-books; one for existing homes and one for new construction. Navigant will need to research Codes & Standards for different states in the Northwest to better understand the New Construction measure Residential Single Family Heat Pump Upgrades Residential Single Family HP