1. ALEJANDRA MEJIA JULY 2, 2015 Commission Guidance on DEER and Ex Ante Development

2. Consistent CPUC Policy Directives on Ex Ante Values and Non-DEER WP July 2, 2015 Commission Guidance on DEER and Ex Ante Development 2 Collaborative Transparent Well-Documented, Easily Available Best Available Data Strikes Reasonable Balance Between Accuracy, Precision, and Timeliness; Cost and Certainty Minimizes Ex Post Risk

3. Collaborative July 2, 2015 Commission Guidance on DEER and Ex Ante Development 3 2004-2005 DEER Update Study:  DEER should continue to be based on the opinion of a committee of technical experts  “Decisions on DEER values were often extremely challenging due to significant technical complexities and empirical uncertainties.”  J.J. Hirsh and Associates, Itron

4. Transparent July 2, 2015 Commission Guidance on DEER and Ex Ante Development 4 “Avoiding misunderstandings, developing trust, and providing transparency should go a long way toward avoiding or resolving potential issues before there is a need to escalate to a formal dispute resolution process.” D.10-04-029 Transparency is multi-faceted  Hosting values in single platform  Making associated documentation available  Guidance on using methods and values

5. Well-Documented, Easily Available July 2, 2015 Commission Guidance on DEER and Ex Ante Development 5 “In developing a set of deemed savings values for the state, the Commission seeks to simplify the assumptions used to project energy savings into a user-friendly format accessible to a wider audience. The goal of this effort would be to produce an Internet- accessible, searchable tool containing best- available deemed savings values for all regions of the state.” D.01-11-06, November 29, 2001

6. Balance Accuracy and Precision, Cost and Certainty July 2, 2015 Commission Guidance on DEER and Ex Ante Development 6 “We expect Commission Staff, in their review of utility proposed ex ante values for new measures, to balance the need for accurate ex ante values with the equally important need to continuously augment the portfolios with new technologies that offer promise... We also encourage the Commission Staff not to allow “the perfect to be the enemy of the good,” in general but especially in determining ex ante values for new technologies that offer considerable promise and (at its discretion) to consider “risk-sharing” approaches when assigning ex ante values to such measures.” D.12-05-015

7. Minimizes Ex Post Risk July 2, 2015 Commission Guidance on DEER and Ex Ante Development 7 “Our experiences in the 2006-2008 and 2010-2012 portfolio cycles suggest that a tighter and more predictable feedback loop is needed between evaluation findings and program design and improvement.” D. 12-05-015