1. Copyrighted © 2000 PG&E All Rights Reserved CASE Initiative Project TDV Workshop Overview Douglas Mahone, Partner The H ESCHONG M AHONE G ROUP for Pacific Gas & Electric Co. Codes & Standards Program

2. Copyrighted © 2000 PG&E All Rights Reserved CASE Initiative Project Agenda 10:00 - 10:30Overview - Mahone 10:30 - 11:30Economics - Price & Horii 11:30 - 12:15Nonres. HVAC - Eley & Karels 12:15 - 12:45Lunch 12:45 - 1:30Residential HVAC - Wilcox 1:30 - 2:30Energy Analysis Results - McHugh 2:30 - 3:00Next steps - Mahone

3. Copyrighted © 2000 PG&E All Rights Reserved CASE Initiative Project Goals of TDV Project New basis for Title 24 standards Abandon old, flat energy valuation Recognize and credit time dependent valuation Update compliance methods New computer analysis methods More accurate performance by time of use Encourage better utilization of utility system Signals to building designers Retain current stringency of Stds. Recognize environmental factors

4. Copyrighted © 2000 PG&E All Rights Reserved CASE Initiative Project Who’s Behind TDV Project? CEC & PG&E jointly funded initial study PG&E Codes & Standards Program funding current work Consultant team: HMG - overall coordination, development of prototype tools E3 - Economics methodology Eley - Nonresidential HVAC and related BSG - Residential methods and attic/duct models Additional support from SCE

5. Copyrighted © 2000 PG&E All Rights Reserved CASE Initiative Project What We’ve Done Homework on economics & engineering Developed proposed TDV method Developed improved modeling methods Developed prototype compliance tools Explored implications on compliance Began process of involving stakeholders

6. Copyrighted © 2000 PG&E All Rights Reserved CASE Initiative Project Where We’re Headed Demonstrate TDV method and its effects on Title 24 Standards Seek CEC adoption of the method for use in 2004 round of Standards Apply TDV method to CEC economics analysis of measures Develop supporting tools and documents

7. Copyrighted © 2000 PG&E All Rights Reserved CASE Initiative Project Known Issues Fairness to competing fuels Natural gas vs. propane Electricity vs. natural gas Reliability of forecasts Gradual vs. revolutionary change to Stds. Explaining complexity to decisionmakers Policy choices embedded in the TDV method Are the right signals being sent to designers? Are the benefits worth the trouble?

8. Copyrighted © 2000 PG&E All Rights Reserved CASE Initiative Project What We Need Next Feedback from stakeholders Does TDV do what we want? Is anybody treated unfairly? Further questions to answer? Peer review on technical work Is it correct and repeatable? Can it be improved? Support for moving forward CEC staff & commissioner buy-in Other stakeholders assistance in advocacy

9. Copyrighted © 2000 PG&E All Rights Reserved CASE Initiative Project Comments/Suggestions Gary Fernstrom, PG&E (415) 973-6054 gbf1@pge.com Douglas Mahone, HMG (916) 962-7001 dmahone@h-m-g.com