1. BLACK HILLS ENERGY Energy Efficiency Portfolio Annual Results Overview December 8, :00am – 12:00pm MST
Mark James – Energy Efficiency Program Coordinator
Jim Dillon – Energy Efficiency Senior Manager
Fred Stoffel – Director Regulatory Affairs

2. Agenda Portfolio Overview – YTD numbers as of 11/30/2016
Residential Energy Efficiency Programs
Commercial/Industrial Energy Efficiency Programs
Special Programs
2016 Energy Efficiency Portfolio Projections
2016 Work In-process
Changes to Programs (60-Day Notices)
Residential High Efficiency Lighting Program
Low Income Assistance Program
Demand Response Pilot Investigation
Self-Direct Custom Program & Fountain Valley Authority
2016 EM&V Evaluations
Potential New Measures Discussion
Questions & Comments

3. Energy Efficiency Portfolio Results YTD
2016 Budget
2016 Spending YTD
% of Budget Spent
2016
kWh
Goal*
2016 kWh YTD Achieved*
% of kWh Goal Achieved*
$5,960,126
$3,496,415
59%
16,925,245
15,082,366
89%
2016 Participant Goal
2016 Participation YTD
% of Participation Achieved kW
2016 kW YTD Achieved*
% of kW Goal Achieved*
198,836
144,596
73%
4,916
2,418
49%
*kW & kWh results reported are at the meter, not generator.
All kW & kWh savings are as of 11/30/2016; Budget data is as of 10/31/2016
Measure installation/completion deadline is 12/31/2016
Rebate applications for work completed in 2016 must be received by 1/31/2017
Vendors must have all invoices submitted for 2016 by 2/1/2017
All kW & kWh savings are prior to any EM&V evaluation adjustments

4. Residential Energy Efficiency Programs
High Efficiency Lighting Program
Appliance Recycling Program
On-Site Energy Evaluation Program
High Efficiency Cooling Program
Home Energy Comparison Report Program

5. High Efficiency Lighting Program
2016 Budget
2016 Spending YTD
% of Budget Spent
2016
kWh
Goal*
2016 kWh YTD Achieved*
% of kWh Goal Achieved*
$516,018
$450,816
87%
2,811,718
3,300,022
117%
2016 Participant Goal
2016 Participation YTD
% of Participation Achieved kW
2016 kW YTD Achieved*
% of kW Goal Achieved*
161,875
115,347
71%
324
303
94%
*kW & kWh results reported are at the meter, not generator.
Additional kW & kWh savings will add to the totals above for program year 2016.

6. Appliance Recycling Program
2016 Budget
2016 Spending YTD
% of Budget Spent
2016
kWh
Goal*
2016 kWh YTD Achieved*
% of kWh Goal Achieved*
$47,755
$17,236
36%
170,879
26,809
16%
2016 Participant Goal
2016 Participation YTD
% of Participation Achieved kW
2016 kW YTD Achieved*
% of kW Goal Achieved*
310 22 7% 3
14%
*kW & kWh results reported are at the meter, not generator.
JACO was third party implementation contractor used for appliance recycling program. JACO went out of business and new contractor was selected, Appliance Recycling Centers of America (ARCA). ARCA began appliance recycling in Aug/Sep Additional marketing will take place in 2016 to increase participation and ARCA will have a full calendar year to do appliance recycling in program year 2017.

7. On-Site Energy Evaluation Program
2016 Budget
2016 Spending YTD
% of Budget Spent
2016
kWh
Goal*
2016 kWh YTD Achieved*
% of kWh Goal Achieved*
$313,786
$240,189
77%
260,739
28,009
11%
2016 Participant Goal
2016 Participation YTD
% of Participation Achieved kW
2016 kW YTD Achieved*
% of kW Goal Achieved*
1,000
239
24% 89 95
106%
*kW & kWh results reported are at the meter, not generator.
Participation in on-site energy evaluations is lower than expected.
Additional marketing will be done in 2017 to promote program.
Lower participation resulted in lower kWh savings achieved.

8. High Efficiency Cooling Program
2016 Budget
2016 Spending YTD
% of Budget Spent
2016
kWh
Goal*
2016 kWh YTD Achieved*
% of kWh Goal Achieved*
$165,460
$141,258
85%
517,005
267,550
52%
2016 Participant Goal
2016 Participation YTD
% of Participation Achieved kW
2016 kW YTD Achieved*
% of kW Goal Achieved*
602
187
31%
538
284
53%
*kW & kWh results reported are at the meter, not generator. t
Participation in high efficiency cooling is lower than expected.
Lower participation resulted in lower kW & kWh savings achieved.
Mild summer temperatures probably contributed to lower participation.
Additional marketing will be done in 2017 to promote program.

9. Home Energy Comparison Report Program
2016 Budget
2016 Spending YTD
% of Budget Spent
2016
kWh
Goal*
2016 kWh YTD Achieved*
% of kWh Goal Achieved*
$284,960
$259,835
91%
2,260,000
3,859,703
171%
2016 Participant Goal
2016 Participation YTD
% of Participation Achieved kW
2016 kW YTD Achieved*
% of kW Goal Achieved*
30,000
100%
470 0%
*kW & kWh results reported are at the meter, not generator.
High participation in home energy comparison report resulted in higher than expected kW and kWh savings.
3,859,703 kWh’s are actual/banked as of 10/01/2016
kW savings will be reported at year-end.

10. Commercial/Industrial Energy Efficiency Programs
New Construction Program
Custom Program
Self-Direct Custom Program
Prescriptive Program
Lighting Program

11. New Construction Program
2016 Budget
2016 Spending YTD
% of Budget Spent
2016
kWh
Goal*
2016 kWh YTD Achieved*
% of kWh Goal Achieved*
$47,289
$197,292
417%
143,413
691,267
482%
2016 Participant Goal
2016 Participation YTD
% of Participation Achieved kW
2016 kW YTD Achieved*
% of kW Goal Achieved* 1 2
200% 41
119
290%
*kW & kWh results reported are at the meter, not generator.
Higher than expected participation in new construction program resulted in higher kW and kWh savings.
Usually takes 3-5 years to build a pipeline of new construction applications/projects.

12. % of Participation Achieved
Custom Program
2016 Budget
2016 Spending YTD
% of Budget Spent
2016
kWh
Goal*
2016 kWh YTD Achieved*
% of kWh Goal Achieved*
$632,130
$801,375
127%
1,889,619
4,481,984
237%
2016 Participant Goal
2016 Participation YTD
% of Participation Achieved kW
2016 kW YTD Achieved*
% of kW Goal Achieved* 38 49
129%
319
683
214%
*kW & kWh results reported are at the meter, not generator.
Seventeen large, custom lighting projects contributed to higher participation and kW & kWh savings.
Other projects include: Custom – 33; Chiller – 1; Other Commercial – 1.

13. Self-Direct Custom Program
2016 Budget
2016 Spending YTD
% of Budget Spent
2016
kWh
Goal*
2016 kWh YTD Achieved*
% of kWh Goal Achieved*
$33,270
$15,578
47%
99,454 0%
2016 Participant Goal
2016 Participation YTD
% of Participation Achieved kW
2016 kW YTD Achieved*
% of kW Goal Achieved* 2 17
*kW & kWh results reported are at the meter, not generator.
Fountain Valley Authority (FVA) has one in-process project. Project is finalized and is expected to be paid in Dec 2016.
Project Data: $29, Rebate Credit; 277,997 kWh Savings; and 0 kW savings.
FVA will be completing two additional Self-Direct Custom Program projects in 2018.

14. % of Participation Achieved
Prescriptive Program
2016 Budget
2016 Spending YTD
% of Budget Spent
2016
kWh
Goal*
2016 kWh YTD Achieved*
% of kWh Goal Achieved*
$147,890
$134,443
91%
273,113
320,429
117%
2016 Participant Goal
2016 Participation YTD
% of Participation Achieved kW
2016 kW YTD Achieved*
% of kW Goal Achieved* 60 87
145%
234
138
60%
*kW & kWh results reported are at the meter, not generator.
Major contributors to kW & kWh savings: Anti-Sweat Control in Display Cases; CAC, ECM Motors; NEMA Premium Motors, VFD’s, Occupancy Sensors and Water Source Heat Pump System.

15. % of Participation Achieved
Lighting Program
2016 Budget
2016 Spending YTD
% of Budget Spent
2016
kWh
Goal*
2016 kWh YTD Achieved*
% of kWh Goal Achieved*
$2,084,728
$712,061
34%
6,485,416
1,558,765
24%
2016 Participant Goal
2016 Participation YTD
% of Participation Achieved kW
2016 kW YTD Achieved*
% of kW Goal Achieved*
559
1,089
195%
1,903
1,949
124%
*kW & kWh results reported are at the meter, not generator.
Prescriptive Lighting Program (Option1) & Small Business Direct Install (SBDI) Lighting Program (Option 2) have under performed. However, several lighting projects were done in the Custom Program, which is over performing.
More marketing will be done with Option 1 & 2 to achieve better results.
Conversion rate within SBDI Lighting Program remains low in comparison to like electric utilities.

16. Special Programs Low Income Assistance Program
School Based Energy Education Program

17. Low Income Assistance Program
2016 Budget
2016 Spending YTD
% of Budget Spent
2016
kWh
Goal*
2016 kWh YTD Achieved*
% of kWh Goal Achieved*
$840,776
$388,532
46%
929,404
411,863
44%
2016 Participant Goal
2016 Participation YTD
% of Participation Achieved kW
2016 kW YTD Achieved*
% of kW Goal Achieved*
1,889
641
34%
835
416
50%
*kW & kWh results reported are at the meter, not generator.
Lower than expected participation is resulting in lower than expected kW & kWh savings.
A 60-Day Notice to redesign the Low Income Assistance Program will be submitted to the Colorado Public Utilities Commission in Dec 2016.
Part of program redesign is to partner with Energy Outreach Colorado for administration of program and expand low income assistance program offerings.

18. School Based Energy Education Program
2016 Budget
2016 Spending YTD
% of Budget Spent
2016
kWh
Goal*
2016 kWh YTD Achieved*
% of kWh Goal Achieved*
$187,250
$177,877
95%
1,084,487
162,774
15%
2016 Participant Goal
2016 Participation YTD
% of Participation Achieved kW
2016 kW YTD Achieved*
% of kW Goal Achieved*
2,500
349
14%
124 18
*kW & kWh results reported are at the meter, not generator.
Program is for 500 high school and 2,000 middle school students.
Program was initiated within the economics/finance curriculum.
Projected program results are: 2,500 participants; 1,014,796 kWh savings and 116 kW savings. kW & kWh savings are reported before year-end.

19. Projected Portfolio Results 2016
2016 Budget
2016 Spending YTD
% of Budget Spent
2016
kWh
Goal*
2016 kWh YTD Achieved*
% of kWh Goal Achieved*
$5,960,126
$5,000,000
84%
16,925,245
16,675,159
98%
2016 Participant Goal
2016 Participation YTD
% of Participation Achieved kW
2016 kW YTD Achieved*
% of kW Goal Achieved*
198,836
169,010
85%
4,916
3,195
65%
*kW & kWh projections are at the meter, not generator.
Estimate an additional $1,503,585 to be accrued by the end of the year
Projected 1,592,793 kWh for the balance of the year.
- Estimated 1,014,796 kWh from School Based Energy Education Program
- Estimated 277,997 kWh from Self-Direct Custom Program
- Estimated 250,000 kWh from C&I DSM programs
- Estimated 50,000 kWh from residential DSM programs
-These numbers are prior to any EM&V evaluation adjustments

20. 2016 Work in Progress
60-Day Notice, Residential High Efficiency Lighting Program
Will be e-filed with CO PUC in Dec 2016
Recommendation to eliminate CFL measure
Eligible measures will be standard LEDs & specialty LEDs
Proposed change will result in the following increases:
Participation Increase: 2017 = 2.77%; 2018 = 9.09%
kWh Savings Meter: 2017 = 25%; 2018 = 32%
kW Savings Meter: 2017 = 25%; 2018 = 32%
No increase in approved 2017 & 2018 program budgets
After 60-Day Notice is e-filed with CO PUC, it will also be ed to all parties on Certificate of Service in Proceeding No. 15A-0424E and posted on BHE-COE’s website.

21. 2016 Work in Progress 60-Day Notice, Low Income Assistance Program
Will be e-filed with CO PUC in Dec 2016
Recommendation to redesign program
Single Family Weatherization Program
Multi-Family Weatherization Program (custom)
Non-Profit Energy Efficiency Program (NEEP) (custom)
Direct Install Measures Program
Will maintain same eligible measures
2017 & 2018 participation, kW savings goal, kWh savings goal and budget will remain unchanged.
Request for 25% non-energy benefits adder for mTRC (low income assistance program only)
After 60-Day Notice is e-filed with CO PUC, it will also be ed to all parties on Certificate of Service in Proceeding No. 15A-0424E and posted on BHE-COE’s website.

22. 2016 Work in Progress
Working with Fountain Valley Authority on Self-Direct Custom Program projects
Demand Response Pilot Program Investigation
Met in 2016 & determined pilot program is not feasible
BHE-COE has excess capacity and does not need further demand/peak demand reductions based on previously filed Electric Resource Plan (ERP)
Need consensus to discontinue future pilot program quarterly meetings
2017 Program Applications being approved & printed
Completing set-up and tracking for all 2017 programs

23. 2016 EM&V Evaluations
Low Income Assistance Program (Sector: Residential)
On-Site Energy Evaluation Program (Sector: Residential)
Home Energy Comparison Report Program (Sector: Residential)
Appliance Recycling Program (Sector: Residential)
EM&V reports due to BHE-COE in Feb/Mar 2017
EM&V Tracker is used to track EM&V recommendations and action(s) taken on EM&V recommendations to DSM program

24. Potential New Measures
Open discussion of future, potential DSM measures for consideration
Open discussion for all participants

25. Questions & Comments