20260909Exhibit No. 2 - Step-by-Step Commercial Offering Development - Sensitivity Testing.pdf

EXHIBIT No.2
CASE No.INT-G-26-05
INTERMOUNTAIN GAS COMPANY
STEP-BY-STEP COMMERCIAL OFFERING DEVELOPMENT-SENSITIVITY TESTING
(10 PAGES

Original modelfrom INT-G-25-07
INTERMOUNTAIN GAS COMPANY
Energy Efficiency Commercial Program(Program Planning)
Year 1 Program Planning Cost Effectiveness Testing
Commercial Overhead Cost 5 217,500
Rebate Allocation Method %Rebate Count
INPUT BY REBATE LICT RESULTS
ANNUALTHERM INCREMENTAL PROPOSED REBATE Year Rebate FORECASTED
REBATE NAME SEGMENT SAVING ESTIMATE EUL COST AMOUNT Forecast UCF RATIO
Boiler Reset Control Commercial 174 16 $ 612 $ 450 1 1.3
High-Efficiency Condensing
Boiler>300K Commercial 982 25 S 8,925 5 6,000 6 19
High-Efficiency Condensing
Boiler<300K Commercial 262 25 S 1,175 S 1,500 6 15
Storage Water Heater NC Commercial a" 13 5 15,421 5 3,500 2 L6
Storage Water Heater Retrofit Commercial 1708 13 S 5,946 S 6,000 6 1.9
Tankless Water Heater NC Commercial 1460 13 S 24,049 5 6,000 50 16
Tankless Water Heater Retrofit Commercial 1715 13 5 10,913 S 8,000 25 15
Furnace 95%AFUE Commercial 109 20 S 1,439 $ 200 150 12
GHP<65kBtu-space heating Commercial 613 15 S 3,457 $ 2,000 1 1-9
GHP 65-135kBtu-Space Heating Commercial 2369 15 S 3,457 $ 6,000 1 3.0
GHP135-240 kBtu-Space Heating Commercial 4276 15 5 3,457 S 10,000 1 3A
GHP water heating(>3.2 COP) Commercial 129 15 S 3,222 S 150 1 11
Pipe Insulation Commercial 250 11 S 29 $ 500 1 13
Energy Star Convection Oven Commercial 158 12 $ 1,172 S 150 5 1-2
Energy Star Dishwasher High Temp Commercial 203 14 $ 502 S 500 1 13
Energy Star Dishwasher Low Temp Commercial 313 18 $ 1,397 S 1,000 1 18
Energy Star Fryer Commercial 264 11 S 1,965 $ 550 1 15 1.3
Energy Star Griddle commercial 1 139 12 $ 4,745 S 100 1 10 1.1
Step1 : UCTwith updated water heating savings values. Water heating was not cost
effective.
INTERMOUNTAIN GAS COMPANY
Energy Efficiency Commercial Program(Program Planning)
Year 1 Program Planning Cost Effectiveness Testing
Commercial Overhead Cos 5 217,500
Rebate Al location Method %Rebate Count
INPUT BY REBATE LICTRESULTS
ANNUAL THERM INCREMENTAL PROPOSED REBATE Year Rebate FORECASTED
REBATE NAME SEGMENT SAVING ESTIMATE EUL COST AMOUNT Forecast UCT RATIO
Boiler Reset Control Commercial 174 16 5 612 5 450 1 1.3
High-Efficiency Condensing
Boiler>300K Commercial 982 25 $ 8,825 5 6,000 6 1.9
High-Efficiency Condensing
Boiler<300K Commercial 262 25 $ 1,175 $ 1,500 6 1.5
Storage Water Heater NC Commercial 45 13 $ 15,421 $ 3,500 2 0.1
Storage Water Heater Retrofit Commercial 53 13 S 5,946 $ 6,000 6 0.1
Tankless Water Heater NC Commercial 30 13 S 24,049 S 6,000 50 0.0
Tankless Water Heater Retrofit Commercial 32 13 $ 10,813 $ 8,000 25 0.0
Furnace 95%AFUE Commercial 108 20 $ 1,438 $ 200 I50 1.2
GHP<65kBtu-space heating Commercial 613 15 S 3,457 S 2,000 1 1.9
GHP 65-135kBtu-Space Heating Commercial 2369 15 $ 3,457 S 6,000 1 3.0
GHP135-240 kBtu-Space Heating Commercial 4276 15 $ 3,457 $ 10,000 1 3.4
GHP water heating(>1.2 COP) Commercial 129 15 S 3,222 S 150 1 1.2
Pipe Insulation Commercial 250 11 $ 29 $ S00 1 13
Energy Star Convection Oven Commercial 158 12 $ 1,122 $ 150 5 1.2
Energy Star Dishwasher High Temp Commercial 203 14 $ 502 S 500 1 1.3
Energy Star Dishwasher Low Temp Commercial 313 18 $ 1,397 $ 1,000 1 1.8
Energy Star Fryer Commercial 264 11 $ 1,865 $ 550 IS 1.3
Energy Star Griddle Commercial 139 12 $ 4,745 $ 100 10 1.1

Step 2: Removed all non-cost-effective water heating measures.
INTERMOUNTAIN GAS COMPANY
Energy Efficiency Commercial Program(Program Planning)
Year 1 Program Planning Cost Effectiveness Testing
Commercial Overhead Cos 5 217,500
Rebate Allocation Method %Rebate Count
INPUT BY REBATE UCT RESULTS
ANNUALTHERM INCREMENTAL PROPOSED REBATE Year 1 Rebate FORECASTED
REBATE NAME SEGMENT SAVING ESTIMATE EUL COST AMOUNT Forecast UCE RATIO
Boiler Reset Control Commercial 174 16 $ 612 $ 450 1 1.0
High-Efficiency Condensing
Boiler>300K Commercial 982 25 $ 8,825 $ 8,000 6 1.4
High-Efficiency Condensing
Boiler<300K Commercial 262 25 5 1,175 $ 1,100 6 1.6
Storage Water Heater NC Commercial 45 13 $ 15,421 $ 3,SOD 0.0
Storage Water Heater Retrofit Commercial 53 13 $ 5,946 5 6,000 0.0
Tankless Water Heater NC Commercial 30 13 $ 24,049 5 6,OD0 0.0
Tankless Water Heater Retrofit Commercial 32 13 $ 10,813 5 B4ODD 0.0
Furnace 95%AFUE Commercial 109 20 5 1,439 $ 200 150 0.9
GHP<65kBtu-space heating Commercial 613 15 5 3,457 $ 2,000 1 1.7
GHP 65-135kBtu-Space Heating Commercial 2369 15 $ 3,457 5 3,200 1 4.7
GHP135-240 kBtu-Space Heating Commercial 4276 1-51 3,457 5 3,200 1 8.5
GHP water heating(>1.2 COP) Commercial 129 15 $ 3,222 5 150 1 0.9
Pipe Insulation Commercial 1111'250 11 $ 29 $ 500 1 1.0
Energy Star Convection Oven Commercial 158 12 $ 1,122 $ 150 5 0.9
Energy Star Dishwasher High Temp Commercial 203 14 $ 502 5 500 1 1.0
Energy Star Dishwasher Low Temp Commercial 313 18 $ 1,397 5 1,200 1 1.4
Energy Star Fryer Commercial 264 11 $ 1,965 5 550 15 1.0
Energy Star Griddle Commercial 139 12 $ 4,745 5 100 10 0.8

Step 3. Optimized incentives while maintaining incentives at or below the estimated
incremental cost. Four measures did not meet the 1 .0 UCT threshold.
INTERMOUNTAIN GAS COMPANY
Energy Efficiency Commercial Program(Program Planning)
Year 1 Program Planning Cost Effectiveness Testing
CommeMaI Overhead Cost 5 217,5D0
Rebate Allocation Method %Rebate Count
INPUT BY REBATE UCT RESULTS
ANNUAL THERM INCREMENTAL PROPOSED REBATE Year Rebate FORECASTED
REBATE NAME SEGMENT SAVING ESTIMATE EUL COST AMOUNT Forecast UCT RATIO
Boiler Reset Control Commercial 174 16 5 612 $ 450 1 1.0
High-Efficiency Condensing
Boiler>300K Commercial 982 25 5 8,825 5 8,000 6 1.4
High-Efficiency Condensing
Soiler<300K Commercial 262 251 5 1,175 $ 1,100 6 1.6
Furnace 95%AFUE Commercial 108 20 5 1,438 5 200 150 0.9
GHP<65kBtu-space heating Commercial 613 15 $ 3,457 $ 2,000 1 1.7
GHP 65-135kBtu-Space Heating Commercial 2369 15 5 3,457 5 3,2D0 1 4.7
GHP135-240 kBtu-Space Heating Commercial 4276 15 S 3,457 S 3,200 1 8.5
GHP water heating(>1.2 COP) Commercial 129 15 $ 3,222 $ 150 1 0.9
Pipe Insulation Commercial 250 11 5 29 $ 500 1 1.0
Energy Star Convection Oven Commercial 158 12 $ 1,122 S 150 5 0.9
Energy Star Dishwasher High Temp Commercial 203 14 $ 502 5 500 1 1.0
Energy Star Dishwasher Low Temp Commercial 313 18 5 1,397 5 1,200 1 1.4
Energy Star Fryer Commercial 264 11 $ 1,865 $ 550 15 1.0
Energy Star Griddle Commercial 139 12 5 4,745 5 100 10 0.8

Step 4: Removed three of the four measures that did not meet the 1 .0 threshold, kept the
furnace measure at 0.9 UCT.
INTERMOUNTAIN GAS COMPANY
Energy Efficiency Commercial Program(Program Planning)
Year 1 Program Planning Cost Effectiveness Testing
Commercial Overhead Costs $ 217,500
Rebate Allocation Method %Rebate Count
INPUT BY REBATE UCT
RESULTS
ANNUAL THERM INCREMENTAL Year 1 Rebate FORECASTED
REBATE NAME SEGMENT SAVING ESTIMATE EUL COST PROPOSED REBATE AMOUNT Forecast UCT RATIO
Boiler Reset Control Commercial 174 16 $ 612 $ 450 1 1.0
High-Efficiency Condensing
Sol ler>300K Commercial 982 25 $ 8,825 $ 8,000 6 1.4
High-Efficiency Condensing
Boiler<300K Commercial 262 25 $ 1,175 $ 1,100 6 1.5
Furnace 95%AFUE Commercial 108 20 $ 1,438 $ 200 150 0.9
GHP<65kBtu-space heating Commercial 613 15 $ 3,457 $ 2,000 1 1.6
GHP 65-135kBtu-Space Heating Commercial 2369 15 $ 3,457 $ 3,200 1 4.6
GHP135-240 kBtu-Space Heating Commercial 4276 15 $ 3,457 $ 3,200 1 9.3
Pipe Insulation Commercial 2501 11 $ 29 $ 500 1 1.0
Energy Star Dishwasher High Temp Commercial 203 14 $ 502 $ 500 1 1.0
Energy Star Dishwasher Low Temp I Commercial 1 3131 18 $ 2,397 $ 1,200 1 2.3
Energy Star Fryer Commercial 264 11 $ 1,865 1$ 550 15 1.0
Step 5: Updated the modelwith the most current 2027 budgetforecast.
INTERMOUNTAIN GAS COMPANY
Energy Efficiency Commercial Program(Program Planning)
Year 1 Program Planning Cost Effectiveness Testing
Commercial Overhead Costs $ 175,5D0
Rebate Allocation Method %Rebate Count
INPUT BY REBATE UCT
RESULTS
ANNUAL THERM INCREMENTAL Year 1 Rebate FORECASTED
REBATE NAME SEGMENT SAVING ESTIMATE EUL COST PROPOSED REBATE AMOUNT Forecast UCT RATIO
Boiler Reset Control Commercial 174 16 $ 612 $ 450 1 1.1
High-Efficiency Condensing
Boi lera30pK Commercial 982 25 $ 8,825 $ 8,000 6
High-Efficiency Condensing
Boi ler<300K Commercial 262 25 $ 1,175 $ 1,100 6 -
Furnace95%AFUE Commercial 108 20 $ 1,438 $ 200 150 1.c
GHP<65kBtu-space heating Commercial 613 15 $ 3,457 $ 2,000 1 1.8
GHP 65-135kBtu-Space Heating Commercial 2369 15 $ 3,457 $ 3,200 1 4.8
GHP135-240 kBtu-Space Heating Commercial 4276 15 $ 3,457 $ 3,200 1 8.7
Pipe Insulation Commercial 250 11 $ 29 $ 500 1 1.:
Energy Star Dishwasher High Temp Commercial 203 14 $ 502 $ 500 1 1.:
Energy Star Dishwasher Low Temp Commercial 313 18 $ 1,397 $ 1.200 11 1.4
Energy Star Fryer I ommercial 2641 11 $ 1,865 $ 550 15 1.1

Step 6: Removed GHP to create the base case.
INTERMOUNTAIN GAS COMPANY
Energy Efficiency Commercial Program(Program Planning)
Year 1 Program Planning Cost Effectiveness Testing
PROGRAM [
Commercial Overhead Costs I$ 175,500
Rebate AI Iocat on Method %Rebate Count
INPUT BY REBATE UICT
RESULTS
ANNUAL THERM INCREMENTAL Year 1 Rebate FORECASTED
REBATE NAME SEGMENT SAVING ESTIMATE EUL COST PROPOSED REBATE AMOUNT Forecast UCT RATIO
Boiler Reset Control Commercial 174 16 $ 612 5 450 1.1
High-Efficiency Condensing
Boiler>300K Commercial 982 25 $ 8,825 $ 8,000 6 1A
High-Efficiency Condensing
Boi ler<300K Commercial 262 25 $ 1,175 $ 1,100 6 1.7
Furnace 95%AFUE Commercial 108 20 $ 1,438 $ 200 150 1.0
Pipe Insulation Commercial 250 11 $ 29 $ 500 1 1.1
Energy Star Dishwasher High Temp Commercial 203 14 $ 502 $ 500 1 1.1
Energy Star Dishwasher Low Temp Commercial 313 18 $ 1,397 $ 1,200 1 1A
Energy Star Fryer Commercial 264 11 5 1,865 $ 550 15 1.1

SENSITIVITY TESTING - Furnace UES and Participation
Scenario 1 : Furnace UES 10% lower than estimated
INTERMOUNTAIN GAS COMPANY
Energy Efficiency Commercial Program(Program Planning)
Year 1 Program Planning Cost Effectiveness Testing
h
Savings Risk: low Commercial Over ead Costs $ 175,500
Furnace UES 10% lower than estimated
Rebate Allocation Method %Rebate Count
UCT
INPUT BY REBATE
RESULTS
ANNUAL THERM INCREMENTAL Year 1 Rebate FORECASTED
REBATE NAME SEGMENT SAVING ESTIMATE EUL COST PROPOSED REBATE AMOUNT Forecast UCFRATIO
Boiler Reset Control Commercial 174 16 $ 612 $ 450 1 1.1
High-Efficiency Condensing Boiler>300K Commercial 982 25 $ 8,825 $ 8,000 6 1.4
High-Efficiency Condensing Boiler<300K Commercial 262 25 $ 1,175 $ 1,100 6 1.7
Furnace 95%AFUE Commercial 97 20 $ 1,438 $ 200 150 0.9
Pipe Insulation Commercial 250 11 $ 29 $ 500 1 1.1
Energy Star Dishwasher High Temp Commercial 203 14 $ 502 $ 500 1 1.1
Energy Star Dishwasher Low Temp Commercial 313 18 $ 1,397 $ 1,200 1 1.4
Energy Star Fryer Commercial 264 11 $ 1,865 $ 550 15 1.1
1.1
Scenario 2: Furnace UES 10% higherthan estimated
INTERMOUNTAIN GAS COMPANY
Energy Efficiency Commercial Program(Program Planning)
Year 1 Program Planning Cost Effectiveness Testing
Savings Risk: High ICommercial Overhead Costs $ 175,500
Furnace UES 10%higher than estimated Rebate Allocation Method %Rebate Count
INPUT BY REBATE UCT
RESULTS
ANNUAL THERM INCREMENTAL Year 1 Rebate FORECASTED
REBATE NAME SEGMENT SAVING ESTIMATE EUL COST PROPOSED REBATE AMOUNT Forecast UCi RATIO
Boiler Reset Control Commercial 174 16 $ 612 $ 450 1 1.1
High-Efficiency Condensing Boiler>300K Commercial 982 25 $ 8,825 $ 8,000 6 1.4
High-Efficiency CondensingBoiler<300K Commercial 262 25 $ 1,175 $ 1,100 6 1.7
Furnace 95%AFUE Commercial 119 20 $ 1,438 $ 200 150 1.1
Pipe Insulation Commercial 250 11 $ 29 $ 50o 1 1.1
Energy Star Dishwasher High Temp Commercial 203 14 $ 502 $ 500 1 1.1
Energy Star Dishwasher Low Temp Commercial 313 18 $ 1,397 $ 1,200 1 1.4
Energy Star Fryer Commercial 264 11 $ 1,865 $ 550 15 1.1
1.2

Scenario 3: Furnace participation 20% lower than expected
INTERMOUNTAIN GAS COMPANY
Energy Efficiency Commercial Program(Program Planning)
Year 1 Program Planning Cost Effectiveness Testing
Market Participation Risk: Low lCommercial Overhead Costs $ 175,500
Rebate Allocation Method %Rebate Count
Furnace participation 20% lower than expected
UCT
INPUT BY REBATE
RESULTS
ANNUAL THERM INCREMENTAL Year 1 Rebate FORECASTED
REBATE NAME SEGMENT SAVING ESTIMATE EUL COST PROPOSED REBATE AMOUNT Forecast UCT RATIO
Boiler Reset Control Commercial 174 16 $ 612 $ 450 1 1.0
High-Efficiency Condensing Boiler>300K Commercial 982 25 $ 8,825 $ 8,000 6 1.4
High-Efficiency Condensing Boiler<300K Commercial 262 25 $ 1,175 $ 1,100 6 1.6
Furnace 9S%AFUE Commercial 108 20 $ 1,438 $ 200 135 0.9
Pipe Insulation Commercial 250 11 $ 29 $ 500 1 1.0
Energy Star Dishwasher High Temp Commercial 203 14 $ 502 $ 500 1 1.0
Energy Star Dishwasher Low Temp Commercial 313 18 $ 1,397 $ 1,200 1 1.4
Energy Star Fryer Commercial 264 11 $ 1,865 $ 550 15 1.1
1.1
Scenario 4: Furnace Participation 20% higherthan expected
INTERMOUNTAIN GAS COMPANY
Energy Efficiency Commercial Program(Program Planning)
Year 1 Program Planning Cost Effectiveness Testing
Market Participation Risk: High ICommercial Overhead Costs $ 175,500
Rebate Allocation Method %Rebate Count
Furnace participation 20% higher than estimated
ucr
INPUT BY REBATE
RESULTS
ANNUAL THERM INCREMENTAL Year 1 Rebate FORECASTED
REBATE NAME SEGMENT SAVING ESTIMATE EUL COST PROPOSED REBATE AMOUNT Forecast UCT RATIO
Boiler Reset Control Commercial 174 16 $ 612 $ 450 1 1.2
High-Efficiency Condensing Boiler>300K Commercial 982 25 $ 8,825 $ 8,000 6 1.5
High-Efficiency Condensing Boiler<300K Commercial 262 25 $ 1,17S $ 1,100 6 1.8
Furnace 95%AFUE Commercial 108 20 $ 1,438 $ 200 180 1.1
Pipe Insulation Commercial 250 11 $ 29 $ 500 1 1.2
Energy Star Dishwasher High Temp Commercial 203 14 $ 502 $ S00 1 1.2
Energy Star Dishwasher Low Temp Commercial 313 18 $ 1,397 $ 1,200 1 1.5
Energy Star Fryer Commercial 264 11 $ 1,865 $ 550 15 1.2
1.2

Scenario 5: Furnace UES 10% lower than expected, furnace participation 20% lower than
expected
INTERMOUNTAIN GAS COMPANY
Energy Efficiency Commercial Program(Program Planning)
Year 1 Program Planning Cost Effectiveness Testing
Scenario: Low savings, Low participation lCommercial Overhead Costs $ 175,500
Rebate Allocation Method %Rebate Count
Furnace savings and furnace participation lower than base case
UCT
INPUT BY REBATE
RESULTS
ANNUALTHERM INCREMENTAL Year1 Rebate FORECASTED
REBATE NAME SEGMENT SAVING ESTIMATE EUL COST PROPOSED REBATE AMOUNT Forecast UCT RATIO
Boiler Reset Control Commercial 174 16 $ 612 $ 450 1 1.0
High-Efficiency Condensing Boiler>300K Commercial 982 25 $ 8,825 $ 8,000 6 1.4
High-Efficiency Condensing Boiler<300K Commercial 262 25 $ 1,175 $ 1,100 6 1.6
Furnace 95%AFUE Commercial 97 20 $ 1,438 $ 200 135 0.8
Pipe Insulation Commercial 250 11 $ 29 $ 500 1 1.0
Energy Star Dishwasher High Temp Commercial 203 14 $ 502 $ 500 1 1.0
Energy Star Dishwasher Low Temp Commercial 313 18 $ 1,397 $ 1,200 1 1.4
Energy Star Fryer Commercial 264 11 $ 1,865 $ 550 1s 1.1
1.
Scenario 6: Furnace UES 10% higherthan expected, furnace participation 20% higherthan
expected
INTERMOUNTAIN GAS COMPANY
Energy Efficiency Commercial Program(Program Planning)
Year 1 Program Planning Cost Effectiveness Testing
Scenario: High savings, high participation Commercial Overhead Costs $ 175,1
Rebate Allocation Method %Rebate Count
Furnace savings and participation higher than base case
Ucr
INPUT BY REBATE
RESULTS
ANNUAL THERM INCREMENTAL Year 1 Rebate FORECASTED
REBATE NAME SEGMENT SAVING ESTIMATE EUL COST PROPOSED REBATE AMOUNT Forecast UCr RATIO
Boiler Reset Control Commercial 174 16 $ 612 $ 450 1 1.2
High-Efficiency Condensing Boiler>300K Commercial 982 25 $ 8,825 $ 8,OD0 6 1.5
High-Efficiency Condensing Boiler<300K Commercial 262 25 $ 1,175 $ 1,100 6 1.8
Furnace 95%AFUE Commercial 119 20 $ 1,438 $ 200 180 1.3
Pipe Insulation Commercial 256 11 $ 29 $ 500 1 1.2
Energy Star Dishwasher High Temp Commercial 203 14 $ 502 $ 500 1 1.2
Energy Star Dishwasher Low Temp Commercial 313 18 $ 1,397 $ 1,200 1 1.5
Energy Star Fryer Commercial 264 11 $ 1,865 $ 550 15 1.2
1