1. RTF Small Saver Review Process Proposal July 17, 2012

2. Small Savers as defined per Guidelines RTF determines that likely savings from a measure are too small to warrant resources needed to meet reliability criteria of active or provisional UES RTF considers size of regional end use affected by measure Measure specifications required before RTF can designate measure as small saver RTF may choose to convene an expert panel to consider proposed measure and formulate consensus opinion – Being revised to indicate that RTF approval is expected 2

3. Small Saver process development April Small/Rural Subcommittee meeting – Expect that small savers will come from S/R utilities – Noted a lack of specific criteria and path for approval in the Guidelines for small savers – Talked about mapping out process through Guidelines – Develop template for utilities to apply for small savers – RTF Staff and Eugene Rosolie iterated over draft process 3

4. Small Saver process development May Small/Rural Subcommittee meeting – Presented draft flowchart and savings checklist for an example measure (T12->HPT8 in residential homes) – Originally developed checklist specific to small savers Decided that Appendix A checklist adequately covered Small Saver designation – S/R subcommittee would be advocate for utilities that bring small saver measure forward S/R subcommittee would help define characteristics with proposer – Proposed a small saver subcommittee as the next step after S/R designates measure as small saver and helps characterize 4

5. Small Saver process development May Operations Subcommittee meeting – Presented same flowchart and checklist – Received guidance to develop clearer process and better documentation of process – RTF staff looked at modifying process for small saver review 5

6. Criteria questions that arose When should a measure be considered for small saver status? – Should we set a target size for regional potential? Should ≤ 2.5 aMW be the threshold? – Many believe “we’ll know one when we see it” Who should make that determination? – Would S/R utilities know the resource potential? – Should S/R subcommittee be tasked with determining potential? How are small savers applied across small, rural and large utilities? – Can’t easily limit measure applicability according to utility size 6

7. Small Saver process development June Small/Rural Subcommittee meeting – Presented revised flowchart and documentation – Agreement that process looks good as a start and should perhaps be tested at RTF 7

8. Small Saver Flowchart: Part 1 Data source for measure Small/Rural utility proposes measure SRR committee decides if measure should go forward SRR committee works with proposer to develop measure characteristics Measure not pursued or is re-defined by proposer Measure Screening committee decides if measure should go forward Data source for measure Larger utility proposes measure Measure not pursued or is re-defined by proposer NO YES

9. Small Saver Flowchart: Part 2 Is measure likely to achieve Proven status? Measure put into RTF workplan for prioritization and development YES Measure Screening committee determines which Guidelines path is appropriate YES Measure Screening committee works with proposer to develop Small Saver measure NO SRR committee remains engaged if proposer was S/R utility Measure is considered a Small Saver

10. Overall Process Benefits Follows Guidelines approach that measures should trend towards proven if possible Both S/R and large utilities have an understanding of where measures go once proposed Lessens burden on S/R subcommittee to determine resource potential

11. Measure Screening Committee Benefits Small/Rural and Large utility coordination – Measures from large utilities that might be applicable to S/R utilities get picked up – If S/R checklist leads to measure variation, this modified measure enters through Measure Screening committee and process continues Others outside of RTF Staff see incoming measures and can help triangulate data 11

12. Measure Screening Committee Benefits Committee looks at all new measures, not just ones that are “small” – Don’t form a subcommittee that spends volunteer time solely defining small resources Measures prioritized in workplan after Screening Committee reviews them – Easier for staff to assess measure needs and allocate resources – Transparent measure prioritization procedure 12

13. Interface with other processes Data source for measure Small/Rural utility proposes measure SRR committee decides if measure should go forward SRR committee works with proposer to develop measure characteristics Measure not pursued or is re-defined by proposer Measure Screening committee decides if measure should go forward Data source for measure Larger utility proposes measure NO YES Measure not pursued or is re-defined by proposer NO Completed SRR Checklist Online Petition Form

14. Next steps Test this out to see how process works – Bring measure through S/R subcommittee and solicit feedback – RTF staff serve as interim “measure screening” subcommittee to test out process Refine process and bring back to RTF for decision on how to treat Small Savers 14