1. ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY DISPUTES & INVESTIGATIONS ECONOMICS FINANCIAL ADVISORY MANAGEMENT CONSULTING November 14, 2012 P HASE II: U NIT E NERGY S AVINGS (UES) M EASURE C OMPLIANCE Green Motor Rewinds, Specialty CFL and LED Downlights, Residential Dishwashers, and Residential Single Family Air Source Heat Pump Upgrades Presented by Christian Douglass, Mohit Singh-Chhabra, Ryan Firestone and Kevin Cooney Navigant Reference: 157741

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. November 9, 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 Contents Table of Contents 1Green Motor Rewinds 2Specialty CFL and LED Downlights 3Residential Dishwashers 3Air Source Heat Pump Upgrades

4. 3 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Contents Table of Contents 1Green Motor Rewinds 2Specialty CFL and LED Downlights 3Residential Dishwashers 3Air Source Heat Pump Upgrades

5. 4 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Green Motor Rewinds Measure Classification and Properties Market SectorIndustrial Market SegmentAll Segments Measure CategoryMotors Measure Description Motors are rewound by Green Motors Practices Group (GMPG) program participants to the GMPG specifications rather than non- participant motor rewind shops. Measures are identified by motor horsepower ratings that range from 7.5 to 5,000. Sunset CriteriaNot listed in previous workbook. Primary WorkbookProCostRTFTemplate257f_v3_9 Green Motor Rewinds v01.xlsm Linked WorkbooksPremiumMotorsRev-Rev05.xls Number of Measures, and UES Components 36 different measures each calculated using a single UES component

6. 5 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Green Motor Rewinds Actions to Bring Measure into Compliance TaskTask SourceStatus Update efficiency rating assumption for motors greater than 500 horsepower. Recommendation memo In progress – working with BPA and GMPG Consider adding additional measure categories as the data allows, e.g. subdividing by motor type [Totally Enclosed Fan Cooled (TEFC), Open Drip Proof (ODP)] or motor speed (1200, 1800, 3600 rpm) Recommendation memo In progress – working with BPA and GMPG Update current assumptions for: 1) reduction in motor efficiency due to standard rewind practices, 2) motor loading factors, and 3) duty cycle (operating hours) Recommendation memo In progress – working with BPA and GMPG Consider combining industrial and agricultural green motor rewind RTF workbooks due to major similarities between them. NWPCC / NavigantIn progress

7. 6 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Where: OP is the annual hours of operation; ML is the percentage of nameplate horsepower required by driven equipment Pre Eff. and Post Eff. are the baseline and measure motor rewind efficiencies, respectively Unit Energy Savings HP x 0.746 x OP x ML Pre Eff. = () HP x 0.746 x OP x ML Post Eff. )( UES Calculation Green Motor Rewinds

8. 7 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Industrial Operating Hours HP Motor Units N= GMI Data 2009 to 2012 Motor Units N= NW Motors Survey Data 15 to 203025,3314,1205,561 25 to 503015,6085,1995,681 60 to 1008325,8042,3655,990 125 to 2005225,9821,3706,113 250 to 5004866,5135635,914 600 to 1,000547,342876,435 1,250 to 5,000397164365,520 Annual Operating Hours Green Motor Rewinds

9. 8 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Agricultural Operating Hours HPMotor Units N=AverageStd. Deviation 5 to 2072,221713 25 to 50142,6911,630 60 to 1001012,3571,268 125 to 200982,198912 250 to 500502,6741,269 600 to 1,00042,124360 1,250 to 5,000-2,124* *Operating Hours for motors 1,250 to 5,000 HP based on the 600 to 1,000 HP average. Annual Operating Hours Green Motor Rewinds

10. 9 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY HP Range IndustrialAgricultural 5 to 20 HP79% 100% 25 to 50 HP80% 94% 60 to 100 HP78% 100% 125 to 200 HP80% 96% 250 to 500 HP82% 100% 600 to 1,000 HP82% 115% 1,025 to 5,000 HP82% 96% Motor Loading Green Motor Rewinds

11. 10 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Efficiency loss without process control supported – Canadian Standard Association (CSA) C392-11 – AEMT – Good Practices Guide 1996, Appendix 2 – EASA/AEMT – The Effect of Repair/Rewinding on Motor Efficiency 2003 0.5% to 1.0 % efficiency loss without process control based on Motor Master+ data Efficiency Degradation Green Motor Rewinds

12. 11 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Contents Table of Contents 1Green Motor Rewinds 2Specialty CFL and LED Downlights 3Residential Dishwashers 3Air Source Heat Pump Upgrades

13. 12 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Measure Classification and Properties Specialty LED and CFL Downlights Market SectorResidential Market SegmentAll Segments Measure CategorySpecialty CFL Lighting and LED Downlights Measure Description Replacement of specialty lamps with screw-in Energy Star CFL lamps or Energy Star LED downlights. Sunset Criteria April 6, 2012 (from April 2010 RTF meeting). Possible update through RTF review. Primary Workbook ProCostRTFTemplate257f_v3_9_ResSpecialtyLighting_SN v03.xlsm Linked WorkbooksNo External links Number of Measures, and UES Components Total of 35 measures: 13 Specialty CFL types x 2 delivery mechanisms (retail and DI) = 26 1 LED downlight type x 3 Baseline Types x 2 delivery mechanisms (retail and DI) = 6 "Any Specialty CFL" x 3 delivery mechanisms (retail, DI, Direct Mail) = 3 26 + 6 + 3 = 35

14. 13 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Actions to Bring Measure into Compliance Specialty LED and CFL Downlights TaskTask SourceStatus Workbook structure and formulae need corrections. This measure will also be separated into two different workbooks (one for CFL, one for LED) to accommodate the number of measures and differing costs/EULs that accompany each measure. Recommendation memo In progress Documentation updates to correct hours of use sources. Recommendation memo In progress Measure Definition needs to be updated to include sunset criteria based on EISA (Energy Independence and Security Act) requirements. Recommendation memo In progress 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 Recommendation memo HOU tables updated; other tasks in progress

15. 14 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Contents Table of Contents 1Green Motor Rewinds 2Specialty CFL and LED Downlights 3Residential Dishwashers 3Air Source Heat Pump Upgrades

16. 15 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Measure Classification and Properties Residential Dishwashers Market SectorResidential Market SegmentAll Measure CategoryAppliances Measure Description Replacement of "standard" dishwashers (holds eight or more place settings) with energy-efficient dishwashers (Energy Star or CEE Tier 1) Sunset CriteriaMay 30, 2013 Primary WorkbookResDishwasher_FY10v2_0.xls Linked WorkbooksPNWResSectorSupplyCurveUnits.xls Number of Measures, and UES Components A total of 12 measures – 2 efficiency tiers (Energy Star, and CEE Tier 1) and 3 water heating fuel types (Electric, Gas, Any), based on two UES components

17. 16 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Actions to Bring Measure into Compliance Residential Dishwashers TaskTask SourceStatus Document assumption sources and consolidate assumptions and constant parameters to one worksheet. Remove worksheets irrelevant to analysis Recommendation memoIn progress Correct calculation error for waste water energy savingsRecommendation memoIn progress Update measure definition based on new Energy Star specification (effective in January 20, 2012). CEE Tier 2 was removed to match Energy Star specifications. The sunset date should be updated to May, 2013 at which the new Federal Standard will go into effect Recommendation memoIn progress Categorize dishwashers based on both kWh/year and gallons/cycle when characterizing dataset entries as baseline or measure Recommendation memoIn progress

18. 17 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Contents Table of Contents 1Green Motor Rewinds 2Specialty CFL and LED Downlights 3Residential Dishwashers 3Air Source Heat Pump Upgrades

19. 18 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Air Source Heat Pump Upgrade Measure Classification and Properties Market SectorResidential Market SegmentSingle Family Measure CategoryHVAC Measure Description Single Family Home HVAC Upgrade - Heat Pump Upgrade to 9.0 HSPF/14 SEER (Existing Construction), Heat Pump Upgrade to 9.0 HSPF/14 SEER (New Construction) Sunset Criteria New Federal Standards will be effective 8/2/2015; at this time updates should be applied to the datasets that establish the baseline and measure efficiency levels. Primary Workbook ProCostRTFTemplate257f_v3_9 RES Heat Pumps Upgrade to HE ESv02.xlsm Linked WorkbooksNo External links Number of Measures, and UES Components 6 Measures with 1 Component Each

20. 19 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Air Source Heat Pump Upgrades Actions to Bring Measure Into Compliance TaskTask SourceStatus Split workbook for “Residential Heat Pump Upgrades” and separate workbooks for “Existing” and “New Construction” Recommendations memoCompleted Workbook and structure formulae corrections to only include data relevant to upgrade measures Recommendations memoCompleted Update documentation and measure runs from SEEM 94 to reflect the latest information on heating and cooling loads in the region Recommendations memo The final measure runs will be performed in SEEM 92 as SEEM 94 will require additional calibration - Seeking feedback on determination of savings from SEEM heat pump models Research codes and standards for different states in the Northwest to better understand the new construction measure NWPCC Seeking feedback from RTF to determine the necessity to generate multiple run inputs for OR, WA, MT, ID due to variances in building codes between states

21. 20 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. ENERGY Topic for Discussion Air Source Heat Pump Upgrades SEEM inputs – There are currently two heat pump models used to determine savings from this measure, each with a different HSPF: – The actual performance and savings rely on more than just HSPF, so there may not be proper representation of the baseline and efficient cases. – Consider scenario analysis to address multiple baseline and efficient conditions –Consider using COP and calculated inputs that are representative of the average condition. New construction building parameters – OR, WA, MT, ID have all adopted the 2009 International Building Code statewide, but there are differences between the state and local levels for building codes: –Seeking feedback from RTF on how to model this. o Consider multiple SEEM runs for each state due to variations in building codes. o Consider using the base 2009 International Building Code for a single SEEM run for any state.