20220706IPC to Staff 7-13.pdf

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LISA D. NORDSTROM
Lead Counsel
[e-mail]
July 6,2O22
Jan Noriyuki, Secretiary
ldaho Public Utilities Commission
11331 W. Chinden Boulevard
Building 8, Suite 201-A
Boise, ldaho 83714
Re: Case No. IPC-E-22-08
ln the Matter of the Application of ldaho Power Company for a Determination
of 2021 Demand€ide Management Expenses as Prudently lncuned
Dear Ms. Noriyuki:
Aftached for electronic filing is ldaho Power Company's Response to the Second
Production Request of the Commission Stafi to ldaho Power Company in the above-
entitled matter.
!f you have any questions about the attached documents, please do not hesitate
to contact me.
Verytruly yours,
frL !.7("1-t^.*,
LDN:sg
Enclosures
LISA D. NORDSTROM (lSB No. 5733)
ldaho Power Company
1221\Nest Idaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
I no rd strom @ ida hopower. com
Attomey for ldaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR A
DETERMINATION OF 2021 DEMAND-SIDE
MANAGEMENT EXPENSES AS
PRUDENTLY INCURRED.
CASE NO. |PC-E-22-08
IDAHO POWER COMPANY'S
RESPONSE TO THE SECOND
PRODUCTION REQUEST OF
THE COMMISSION STAFF TO
IDAHO POWER COMPANY
COMES NOW, ldaho Power Company ("ldaho Powe/' or "Company"), and in
response to the Second Production Request of the Commission Staff dated June 16,
2022, herewith submits the following information:
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE
COMMISSION STAFF TO IDAHO POWER COMPANY - 1
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REQUEST FOR PRODUCTION NO. 7: Please provide the Northwest Energy
Efficiency Alliance (,'NEEA') Annual Saving report for 2021.
RESPONSE TO REQUEST FOR PRODUCTION NO. 7: Please see the
attachments provided to this response.
The response to this Request is sponsored by Quentin Nesbitt, Customer
Research & Analysis Leader, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE
COMMISSION STAFF TO IDAHO POWER COMPANY.2
REQUEST FOR PRODUCTION NO. 8: Please provide the cost-effectiveness
workpapers and calculations for each measure, kit, giveaway, and/or program under the
Educational Distributions Programs in 2021 in Excel format, with all formulas intact.
RESPONSE TO REQUEST FOR PRODUCTION NO. 8: Please see the
aftachment provided for this response.
The response to this Request is sponsored by Quentin Nesbift, Customer
Research & Analysis Leader ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE
COMMISSION STAFF TO IDAHO POWER COMPANY - 3
REQUEST FOR PRODUCTION NO. 9: The Company's2021Demand-Side
Management ("DSM') Annual Report states that for Welcome Kits in 2022,"the
Educational Distributions program will continue to count the savings and pay for the
cost-effective energy savings portion of each kit, while the remaining costs associated
with the kits will be included in the ldaho Power's Residential Energy Efficiency
Education lnitiative (.REEEI') efforts." DMS Annual Report at47. Please answerthe
following:
a. Please provide the Company's rationale for allocating costs between the
Welcome Kits and the REEEI.
b. Please explain and provide a list of programs and measures where the
Company allocated costs between separate programs in a similar manner (as
described above) in 2021 and plans to implementin 2022.
c. By allocating costs between the Welcome Kits and the REEEI, does the
Company consider the Welcome Kits to be cost-effective? Please explain.
d. Please explain the benefit of allocating costs to REEEI for the Welcome Kits
program.
e. What is the projected amount of costs to be included in the REEEI efforts?
f. Please provide the projected cost-effectiveness calculations for the Welcome
Kits program in 2022 in Exce! format, with all formulas intact. Please provide
the projected cost-effectiveness calculations with all cost directly assigned to
the Welcome Kits program. Please clearly identify savings and cost in the
response.
g. ln 2022, what is the total expenses for the program and what portion of those
IDAHO POVVER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE
COMMISSION STAFF TO IDAHO POWER COMPANY - 4
expected expenses are expected to be cost-effective?
RESPONSE TO REQUEST FOR PRODUCTION NO. 9:
a. The rationale to allocate the costs was due to the educational nature of
Welcome Kits and the history and intent of the program.
The program was instituted in 2015 as a subset of the REEEL The
objective was to create an avenue to claim savings for measures with strong
educational and/or behavior components-and make these items equally
available to both ldaho and Oregon customers. Structuring the Educational
Distributions program as a subset of REEEI allowed for the separation of the
educational and marketing costs and satisfied Oregon's Regulatory
requirement. Had this requirement been absent, both the costs and savings
for these efforts would have continued to be reported directly under the
REEEI. The REEEI has always paid for the educational aspects of the
Educational Distribution program. This includes items such as the LED bulb
sleeves, Welcome Kit educationalflipbook, and educational card and bag for
the nightlights. As the program matured, a number of low-cost high-savings
items became available for distribution through the program-allowing the
Educational Distributions program to bear more administrative and support
costs while remaining cost-effective. This is no longer the case as savings for
these small items, i.e., light bulbs and showerheads, have been reduced due
to the market baselines for these products. Splitting the costs between the
two budgets is not a new concept, but rather a return to the original intent and
practice.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE
COMMISSION STAFF TO IDAHO POWER COMPANY - 5
While ldaho Power has operated programs such as Home Energy Audit
and Easy Savings, which report a smal! amount of savings but are primarily
educational and marketing programs, those offerings are in ldaho only and
the cost-effectiveness is not reported. Oregon requires allofferings in which
savings are claimed to be cost-effective.
The idea to retum to splitting the costs between Educational Distributions
and its umbrella program, REEEI, was first discussed with Oregon Staff
during 2020 as a means to quantify the educational and marketing piece of
the kits. !n August of 2020, the Company discussed the idea with its Energy
Efficiency Advisory Group ('EEAG"). Throughout2021, the Company
discussed various kit configurations and the cost-effectiveness of several
options with EEAG, receiving general support from EEAG to continue the
offerings. The cost allocation was discussed in more detail during a July 14,
2021 call with ldaho Commission Staff.
b. The Company does not have any curent measures or programs that operate
in a similar manner. As mentioned above, other educational and marketing
programs with some savings attached, such as Home Energy Audit and Easy
Savings, are offered only in ldaho.
c. By splitting the costs and allocating the amount equal to the benefit value of
the ltems in the kit to Educational Distributions, the Welcome Kits are cost-
effective as a measure under Supplement 1: Cost-Effecfiveness. However,
when the full costs are considered, the offering is not cost-effective.
d. There is an educational and marketing component to the offering. ln addition
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE
COMMISSION STAFF TO IDAHO POWER COMPANY - 6
to the measures, the Welcome Kits contain energy-saving tips and energy
efficiency program information for new customers. Given the kits are limited to
first-time customers, the Company considers the kits an opportunity to
introduce new customers to energy efficiency concepts at a moment of
readiness and believes the kits provide a path toward engaging residential
customers in future energy efficiency activity. !n addition to the cost of printing
the energy-saving flip book, the REEEI also pays a portion of the cost
associated with shipping and handling. The proposed allocation methodology
was to provide a simple means to split the benefits and costs associated with
the kits.
e. The projected amount of costs to be included in the REEE! efforts is $81,752.
f. Please see the attachment provided for this response.
g. ln 2022, the total estimated expenses for the offering are estimated to be
$661,592 based on 32,000 kits. This amount includes the estimated costs of
the flipbook which has always been included in REEEI. The benefit value of
the kWh savings of the kit items is approximately $18.1 2lkat. ll is estimated
that $579,840 would be the "cost-effective" portion that would remain in
Educational Distributions.
The response to this request is sponsored by Quentin Nesbitt, Customer
Research and Analysis Leader, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE
COMMISSION STAFF TO IDAHO POWER COMPANY - 7
REQUEST FOR PRODUCTION NO. 10: Forthe Welcome Kits program, please
provide the following:
a. A breakdown of the cost of each kit in 2021. Please include the cost of each
bulb, each night light, the pamphlet, shipping, packaging, and any additional
cost for the kits.
b. A breakdown of the cost or projected cost of each kitin 2022. Please include
the cost of each bulb, each night Iight, the pamphlet, shipping, packaging, and
any additional cost for the kits.
c. A breakdown of the forecasted cost of the Welcome Kits program in 2022
(i.e., marketing, adm in istration, rebates/kits contents, etc).
d. Of the customers that receive Welcome Kits in 2021, how many customers
participated in other Energy Efficiency programs in2021 and 2022?
e. Of the customers that received Welcome Kits in 2020, how many customers
participated in other Energy Efficiency programs in 2020 and 2021?
f. The cost-effectiveness results for the Welcome Kits program in 2021 in Excel
format, with allformulas intact. Please clearly identify savings and cost in the
response.
:
a. The following table is a breakdown of the costs for each kitin 2021. The
vendor the Company contracts with does not breakout material costs by bulb
or nightlight. Additionally, in 2021,ldaho Power spent $46,530 on 33,000
flipbooks.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE
COMMISSION STAFF TO IDAHO POWER COMPANY - 8
Materials 57.46
Vendor labor/Services 52.7s
Shipping 57.07
Sales Tax (lD only)s0.4s
Total per Kit sL7.73
b. The following table is the breakdown of the projected costs for each kit in
2022. The vendor does not break down material costs by bulb or nightlight.
Additionally, tn 2022,ldaho Power expects to spend approximately $55,000
for the printing of approximately 33,000 flipbooks.
Materials $8.00
Vendor
Labor/Services $2.78
Shippins $7.72
Sales Tax (lD only)$0.48
Total per Kt $18.98
c. The following table is a breakdown of forecasted costs of the Welcome Kits in
2022. The Company budgeted for 32,000 kits in 2022with 95/5 split between
ldaho and Oregon.
Budgeted
Kits ID OR
32,000 30,400 1,600
per kit
Materials $8.00 $256,000.00 $243,200.00 $12,800.00
Labor/Services $2.78 $88,960.00 $84,512.00 $4,448.00
Shippins $7.72 $247,040.00 $234,688.00 $12,352.00
Sales Tax (lD
only)$0.48 $14,592.00 $14,592.00 $0.00
$606,592.00
Flip Book $55,000
Estimated ldaho
Power Labor $7,000
2022 Forecast $661,592.00
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE
COMMISSION STAFF TO IDAHO POWER COMPANY - 9
d. Of the customers that received Welcome Kits in 2021, 138 customers
participated in another residential energy efficiency progrErm in 2021 and 79
participated in a program in2022 as of June 2022. ldaho Power does not
know which customerc may have purchased a LED bulb or fixture under the
cunent retail lighting buy-down program because the buy-down program is
managed by a third-party vendor.
e. Of the customers that received Welcome Kits in 2020,4,083 customers
participated in another residential energy efficiency program in 2020 and 173
participated in a program in 2021.
f . PIease see the attachment provided for this response.
The response to this Request is sponsored by Quentin Nesbitt, Customer
Research and Analysis Leader, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCT]ON REQUEST OF THE
COMMISSION STAFF TO IDAHO POWER COMPANY - 10
REQUEST FOR PRODUCTION NO. l1: Please provide a breakdown of all cost
for REEEI in ldaho (i.e., educational material, Kill A Watt Meter Program, Teacher
Education, Marketing, etc).
RESPONSE TO REQUEST FOR PRODUCTION NO. 11: The table below shows
the breakdown of all2021 costs for REEEI in ldaho. ln reviewing the expenses for this
request, the Company discovered sales tax of $649.80 on one transaction was
duplicated. The Company has credited back the Energy Efficiency Rider the amount,
and as such, the prudence request should be reduced by $649.80.
Labor $93,969.75
Admin Expenses $1,030.21
Marketing (promotional items, brochures,
educational flip book, Spanish translation
services)
$66,016.38
Welcome Kits $278,626.30
Materials and Equipment $206.44
Training, Education & Workshops
(includes printing and distribution of EE
Guides, teacher education and trainings)
$30,583.04
TOTAL $470,432.12
The response to this Request is sponsored by Quentin Nesbitt, Customer
Research & Analysis Leader, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE
COMMISSION STAFF TO IDAHO POWER COMPANY - 11
REQUEST FOR PRODUCTION NO. 12: The 2021 DSM Annual Report stiates,
"the Educational Distributions effort is administered through the REEE!.' DSM Annual
Report at 47. Are the costs of administering the Education Distributional programs
through the REEEI assigned to the Educational Distribution program or the REEE!? lf
they are assigned to the REEEI, please explain why and identify how much costs are
assigned.
RESPONSE TO REQUEST FOR PRODUCTION NO. 12: From 2017 through
2020, all administrative costs associated with Educational Distributions were assigned
to the Educational Distributions program. The Response to Request No. 11 shows the
Welcome Kit costs assigned to the REEEI in 2021.
From the onsetof the program in2015 through mid-year 2016, all program
administrative costs were assigned to the REEEI. As explained in the Response to
Request No. 9, the Educational Distributions program was initially positioned under the
umbrella of REEEI as a means to distribute measures and claim savings in both ldaho
and Oregon for educationa! efforts that had a strong behavioral component along with
some savings. Over time, as costs of LED light bulbs and other measures came down,
the savings remained strong, and distribution channels opened (Energy-saving Kit
Program, etc). Therefore, the Educational Distributions program was able to absorb
more of the administrative costs while remaining cost-effective. For 2021, educational
distribution items, other than the Welcome Kits, are cost-effective with administrative
expenses included in Educational Distributions. The Company expects this to continue
in 2022.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE
COMMISSION STAFF TO IDAHO POWER COMPANY - 12
The response to this Request is sponsorcd by Quentin Nesbitt, Gustomer
Research & Analysis Leader, ldaho Power Company.
IDAHO POVI'ER COMPANYS RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE
OOMMISSION STAFF TO IDAHO POWER COMPAiIY - 13
REQUEST FOR PRODUCTION NO. 13: Please describe the Company's efforts
in 2021to increase the cost-effectiveness for the Weatherization Solutions for Eligible
Customers and Weatherization Assistance for Qualified Customers programs.
RESPONSE TO REQUEST FOR PRODUCTION NO. 13: Weatherization
Assistance for Qualified Customers ("WAQC') is an ldaho state weatherization program
managed by the ldaho Department of Health and Welfare according to Department of
Energy guidelines. As such, ldaho Power does not have the same opportunities to
implement changes that may result in improved cost-effectiveness as it may if the
program were a Company-managed program. ln 2021, the Company developed a job
cost calculator ("JCC") to be used by weatherization managers for reporting activity
when the ldaho State weatherization program stops using the Energy Audit Version 5
("EAs") tool, which is expected to occur by the end of 2022. The job cost calculator will
facilitate a higher percentage of ldaho Power payment on measures that are more cost-
effective. While this change will indicate to weatherization managers which measures
are more cost'effective, it is not expected to make the program more cost-effective.
The original purpose of the Weatherization Solutions for Eligible Customers
("Solutions") program was to provide weatherization services to additional low-income
customers just outside the income thresholds to qualify for the WAQC program. ln
addition to serving additional special needs customers, Solutions was created in 2008 to
mirror WAQC and be administered by the LLC side of the Community Action
Partnership ("CAP') Agency weatherization offices who had excess crews trained after
the American Recovery and Reinvestment Act ("ARRA") ramp down. The LLC side of
the CAP agency uses different sources of funding than the state weatherization
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE
COMM]SSION STAFF TO IDAHO POWER COMPANY - 14
program managed by the traditional side of the CAP agency. Solutions was set up to
minor the WAQC program which allows the efficient management of ldaho state
weatherization program crews. Therefore, the Company has maintiained consistency
between Solutions and WAQC to provide the same offering to different groups of low-
income customers.
The response to this Request is sponsored by Quentin Nesbitt, Customer
Research & Analysis Leader, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE
COMMISSION STAFF TO IDAHO POWER COMPANY - 15
Respectfully submitted this 6th day of July 2022.
&'-rtff*u*,
LISA D. NORDSTROM
Attomey for ldaho Power Company
IDAHO POVreR COMPANY's RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE
COMMISSION STAFF TO IDAHO POWER COMPA}.IY. 16
CERTIFICATE OF SERVICE
! HEREBY CERTIFY that on the 6th day of July 2022,1 served a true and conect
copy of ldaho Power Company's Response to the Second Production Request of the
Commission Staff to ldaho Power Company upon the following named parties by the
method indicated below, and addressed to the following:
1
\hec,*&"*.
Stacy Gust, Regulatory Administrative
Assistant
IDAHO POWER COMPANY'S RESPONSE TO THE SECOND PRODUCTION REQUEST OF THE
COMMISSION STAFF TO IDAHO POWER COMPANY. 17
Commission Staff
Riley Nevuton
Deputy Attomey General
ldaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg No. 8,
Suite 2O1-A(83714\
PO Box 83720
Boise, lD 83720-0074
Hand Delivered
_U.S. Mail
Ovemight Mail
_FAX
FTP SiteX Email:[e-mail]
City of Boise
Ed Jewell
Boise City Attorney's Office
150 N. Capitol Blvd.
P.O. Box 500
Boise, ldaho 83701 -0500
Hand Delivered
_U.S. Mai!
_Ovemight Mai!
_FAX
FTP SiteX Email: [e-mail]
[e-mail]
Wil Gehl
Energy Program Manager
Boise City Dept. of Public Works
150 N. Capitol Blvd.
P.O. Box 500
Boise, ldaho 83701 -0500
Hand Delivered
_U.S. Mail
_Ovemight Mail
_FAX
FTP SiteX Email: [e-mail]
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPG-E-22-09
IDAHO POWER COMPANY
REQUEST NO. 7
ATTAGHMENT NO. 1
eena
2021 Annual Report
INTRODUCTION - EXECUTIVE LETTER TO THE REGION
Energy efficiency is often called a no regrets
investment, and today there remains growing
recognition of energy efficiency's role in a
vibrant, sustainable future. The industry
continues to quickly evolve with new
technologies and priorities that embrace the
full spectrum of efficiency benefits - energy
savings, resilience, flexibility and more. The
alliance's collective collaboration and
innovation is leading this evolution of
efficiency across the region, and across
North America.
The alliance works collaboratively to save
energy, bring more efficient products to
market faster, and create long-lasting changes to energy-efftcient products, practices, and services.
Together we have a greater impact than any one person or organization could accomplish alone.
Through this yea/s collective efforts, the alliance:
. Co-created 34.6 aMW of electric energy savings in202'1, culminating in a total of 879 aMW of
additivel energy savings ftom 1997-2021.
lncreased regional sales of electric heat pump water heaters by 30% in 2021 over 2020. Heat
pump water heater sales reached 13% market share, paving the way for continued efforts to
reinforce the product as a viable, energy-efficient option for consumers in the Northwest.
Led the national Partnership for Advanced \Mndow Solutions (PAWS) collaborative, a public-
private collaboration with utilities, national labs, window manufacturers, state agencies, regional
energy efficiency organizations, trade organizations and others funded by the U.S. Department
of Energy (U.S. DOE). The collaborative supports the alliance's Market Transformation efforts to
increase the adoption of high-performance windows and window attachments through supply
chain education, reducing product costs, enabling advanced building codes, and promoting
windows as a key component of a net zero energy retrofit strategy.
1 The sum of new first year savings occurring each year across multiple years.
a
a
T
3
#
2021 Annual Report Northwest Energy Efficiency Alliance 1
a
a
Worked closely with the U.S. Environmental Protection Agency (U.S. EPA) on the development
of the new Version 9 television specification. These efforts culminated in the release of
ENERGY STAR@'s finalized Version 9 television specification that uses a test procedure
developed by NEEA. The new specification more accurately reflects actualTV energy use and
provides consumers with higher efficiency television options nationally with international
adoption expected.
Developed the first specification outlining the best practices and approaches to delivering
efficient natural gas rooftop units (RTU) that reliably deliver heating energy savings in Northern
climates and are as straightforward to install as a direct replacement for existing RTUs. The
specification is an important step in making efficient RTUs common practice for one-for-one
replacements.
Policy makers across the country are increasingly looking at Market Transformation as a toolto drive
lasting change and are seeking to align with Northwest efforts at the federal level. ln 2021, the U.S.
DOE made severalenergy policy announcements including a new nationalfocus on heat pumps and
windows. Support from the U.S. DOE, along with its recognition of Northwest efforts, are important
steps fonnrard for many of the technologies that the alliance has been working to advance.
The alliance's continued commitment to work together has made these accomplishments possible,
despite challenges stemming from the pandemic, supply chain and labor constraints and inflation. As
we move into 2022, we are emerging strong and resilient, planning for Cycle 7 as well as a planned
transition to new executive leadership.
\Mth gratitude for the alliance,
Susan E. Stratton Cory Scott, Pacific Power
NEEA Executive Director NEEA Board Chair
2021 Annual Report Nofthwest Energy Efficiency Alliance 2
ALLIANCE RESULTS BY FIVE PRIMARY BUSINESS PLAN STRATEGIES
1. EMERGING TECHNOLOGY
To ensure the continued availability of energy-efficient products, services and practices to Northwest
consumers, the alliance identifies emerging energy efficiency opportunities and works with
manufacturers and the market to test and validate product performance and energy savings. These
efforts are coordinated through the Regional Emerging Technology Advisory Committee (RETAC),
which is facilitated by NEEA staff.
ln 2021, more than 25 regional emerging technology projects and products were added to the region's
shared energy efficiency emerging technology database, increasing regional visibility into emerging
technology activities across organizations and reducing development costs by avoiding redundancies.
ln addition, NEEA staff scanned the market in 2021 to identify promising new energy-efficient products,
services and practices. NEEA staff conducted research, testing and vetting of these opportunities in
2021:
1. Fan Motor Systems: These products are an integrated fan/blower with a motor and control
system. The alliance is working to develop a standardized specification, testing method, and
label to properly reflect the performance and energy use of each product. Currently, system
efficiency is indicated via the new Fan Energy lndex (FEl) label. ln 2021, NEEA staff conducted
research to support further market characterization work and understand the overlap between
fans and pump systems. This research willguide recommendations on advancing fans into the
alliance's program portfolio.
2. High-Performance Windows: New technology advancements in ultra{hin glass production and
low-conductivity gasses have created the opportunity for new efficient window products. A
primary example is thin triple pane windows, which have three panes of glass, two of which are
standard thickness and the third of which is a center thin pane of glass (or film). The overall
thickness and weight are similar to standard double pane windows so they can be hung in a
standard window frame. ln2021, NEEA staff developed a dual-fuel2 Market Transformation
program concept for High-Performance Windows, positioning the product as an accessible
strategy for new homes by working with leading production builders and window manufacturers
to increase production and product availability, The program concept was approved for
advancement in Q3 2021.
3. Combination Hot Water and Space Heat: This product is an integrated system that provides
both space and water heating. lt can be used in both electric and natural gas applications. ln
2021, the alliance published testing results from its Natural Gas Combi System Field Study. The
study sought to demonstrate the performance of combi systems in cold Northwest climates and
identiff barriers to market adoption of the product. Findings from the study showed increased
savings and participant satisfaction with the units over the course of the field trial. The full study
can be found on neea.orq.
2 As a dual-fuel organization, the alliance manages a portfolio of natural gas and electric Market Transformation initiatives.
2021 Annual Report Northwest Energy Efficiency Alliance 3
4. Ultra-High Definition TVs: ln 2021, NEEA staff continued to work closely with the U.S. EPA on
the development of the new Version 9 television specification through the development of
improved testing procedures and collaboration with industry organizations and manufacturers to
ensure support of the new specification. These efforts culminated in the release of ENERGY
STAR@'s finalized Version 9 television specification in Q4 2021. This updated specification more
accurately reflects actual energy use by TVs and will improve the efficiency of televisions.
5. Machine Learning Systems for Building Contro!: NEEA staff are investigating a new group of
products that use machine learning and controls to optimize interactions between building
systems that typically operate autonomously. These products track everything that's happening
in a building. The systems operate and then optimize the interactions in a way that humans
can't. ln 2021, NEEA staff coordinated with the Lawrence Berkeley National Lab to conduct field
testing, which will provide product performance data and insights on real-world functionality of
the technology.
6. Paired Washer-Dryer: ln 2021, NEEA staff conducted testing to measure the total energy
required to wash and dry the same "real-world" load of laundry in matched washers and dryers,
including compact washers with heat pump dryers, and front- and top-load washers with electric
and natural gas heated dryers. This testing leveraged previous NEEA work on both clothes
washers and dryers. Findings revealed that the manufacturer-reported U.S. DOE ratings
generally underestimate the energy use of the washer and dryer pairs when tested under more
realistic conditions and that the pairings use significantly more electricity and natural gas than
estimated. ln addition, the current U.S. DOE test procedures for dryers greatly underestimate
the energy consumption under realistic conditions. Finally, there are significant cycle and
energy-use differences between washer and dryer technologies, suggesting an opportunity for
an ENERGY STAR matched pair specification to support the most efficient matched washer-
dryer sets. The final report can be found on neea.orq.
7. Luminaire Level Lighting Gontrols (LLLC) with HVAC Control: These are LLLC lighting
systems with additional sensors and supports for HVAG control. NEEA staff are analping how
these integrated systems can provide greater granularity of control and real-time data. ln2020,
NEEA staff began coordination with University of Oregon lntegrated Design Lab to field test a
Luminaire Level Lighting product that has an HVAC control system. Several sites have been
identified and a test plan developed, but actualtesting was delayed until 2022 due to COVID-19.
8. Central Commercial Heat Pump Water Heaters: ln2021, NEEA staff coordinated with the
Bonneville Power Administration to develop a qualified products list and expand NEEA's
Advanced Water Heatino Specification (AWHS) to include commercialwater heating systems.
These electric heat pumps with a central water heating and distribution system provide domestic
hot water in a multifamily building. The AWHS provides guidance to manufacturers and market
actors who are interested in developing products that not only meet ENERGY STAR criteria but
also provide high levels of consumer satisfaction and energy performance in a range of
climates. ln addition, in2O21the alliance worked with the New Buildings lnstitute and the
California Energy Commission to conduct further testing and develop design guidance and
technical product requirements for new, large electric air-to-water heat pumps in a commercial
water heating application.
2021 Annual Report Nofthwest Energy Efficiency Alliance 4
L Smart Thermostats: ln 2021, the alliance managed the Northwest Smart Thermostat Research
Study, a collaboration among utility, manufacturer, and energy efficiency organization partners,
that included Avista Power, the Bonneville Power Administration, Chelan County PUD, Clark
Public Utilities, Energy Trust of Oregon, ldaho Power, Northwest Power & Conservation
Council, Puget Sound Energy, Seattle City Light, Snohomish County PUD, and Tacoma Power.
The study sought to develop a method to estimate electric and naturalgas energy savings for
smart thermostats based on thermostat performance metrics. Findings showed significant
savings opportunities for consumers. A final report is available on neea.orq.
10. Very High Efficiency Dedicated Outside Air Systems -\n2021, the alliance published
system requirements for Very High Efficiency Dedicated Outside Air Systems (VHE DOAS),
available on BetterBricks.com, which provides guidance to manufacturers, designers and
specifiers regarding the components and design principles of VHE DOAS. To further test the
real-world performance of a 10Oo/o specification compliant system, the alliance partnered with
Energy 350 to install a VHE DOAS in its offices. The newly installed system measures energy
savings in a real-world application when measured against the system it replaced and provides
an opportunity to showcase and accommodate in-depth system tours to NEEA staff, funders
and VHE DOAS market actors. Detailed data monitoring collected from the installwill help
inform future market opportunities.
For a full look at investigated technologies, view NEEA's Emeroinq Technoloqv Newsletters.
2. EFFECTIVE PORTFOLIO EXECUTION
ln 2021, NEEA staff managed a portfolio of electric and natural gas Market Transformation programs in
seven cross-sector Product Groups: Buitding Envelope, Consumer Products, HVAC, Lighting, Motor-
Driven Products, New Construction, and Water Heating. Each Product Group includes programs and
emerging technologies that share supply chain opportunities. This product group approach allows the
alliance to leverage shared relationships and market channels among programs and to deliver
efficiencies for both NEEA and its supply chain partners.
BUILDING ENVELOPE PRODUCT GROUP
NEEA's Building Envelope Product Group includes the supply chain that manufactures, distributes and
sells the physical separators between the interior and exterior of a building, as well as the end
consumers who purchase them. These physical separators include walls, fenestration, and roofs. ln
2021, Window Attachments was the sole electric program in the Building Envelope Product Group,
however, NEEA staff developed a dual-fuel Market Transformation program concept for High-
Performance \Mndows that was added to the portfolio in Q3 2021.
Window Attachments - The Window Attachments program seeks to accelerate the adoption of
commercial secondary windows, defined as one or more transparent panes and a frame that attaches
to an existing window, either on the inside or outside. To increase understanding of existing barriers to
adoption, NEEA staff conducted market research to establish baseline awareness and intervention
strategies for the product. And, to drive product availability and accelerate adoption, the alliance
continued its partnership with manufacturers and industry partners such as the Attachments Energy
Rating Council. Also in 2021 , the alliance recruited six sites across the region for its commercial
2021 Annual Report Northwest Energy Efficiency Alliance 5
secondary windows field test. This field test will provide product performance data and business case
information to inform future program strategy.
CONSUMER PRODUCTS PRODUCT GROUP
NEEA's Consumer Products Product Group focuses on the entire supply chain that delivers consumer
goods and services in high volume. This includes manufacturers, distributors, physical and online
retailers, contractors, installers, as well as end consumers.ln2O2l, the ENERGY STAR Retail
Products Platform was the sole electric program in the Consumer Products Product Group.
Retail Product Portfolio - The alliance's ENERGY STAR Retail Products Platform (ESRPP) program
provides mid-stream incentives on a portfolio of qualified energy-efficient products. These incentives
influence retail buying and stocking practices and send a signalto manufacturers to develop more
energy-efficient products, in turn ensuring that a greater number of these products are available to
consumers. ln 2021, NEEA staff continued to work closely with the U.S. EPA on the development of the
new Version 9 television specification by working to improve testing procedures and collaborating with
industry organizations and manufacturers to ensure support of the new specification. These efforts
culminated in the release of ENERGY STAR's finalized Version 9 television specification in Q4 2021.
This updated specification is more reflective of actual TV energy use and will improve the efficiency of
televisions, giving consumers across the Northwest and the nation access to more efficient products.
Also in 2021, NEEA staff responded to U.S. DOE proposed rulemakings for a new air cleaner standard,
revised clothes washer test procedure and standard, and a revised refrigerator standard. lmprovement
of these rulemakings will result in permanent changes to the manufacturing processes across entire
product categories, resulting in energy savings for Northwest consumers for years to come.
HVAC PRODUCT GROUP
NEEA's HVAC Product Group works with the supply chain that manufactures, distributes, specifles,
designs, and installs commercial and residential HVAC products, as well as the end consumers who
purchase them. ln 2021, the alliance concluded its final program activities of the Ductless Heat Pump
(DHP) program, officially completing the program's transition to the market. There were two remaining
electric programs in the HVAC Product Group in2021: High-Performance HVAC and Variable Speed
Heat Pumps. Efficient Rooftop Units is the sole natural gas program in the HVAC Product Group.
High-Perfotrnance HVAC - The High-Performance HVAC program aims to transform the commercial
HVAC market in the Northwest by accelerating the adoption of high-efficiency HVAC systems and
components, focusing on Very High Efficiency Dedicated Outside Air Systems (DOAS) in the
commercial sector. ln 2021, the program completed critical market research and refined the Very High
Efficiency DOAS product definition and system requirements, both of which are now informing the
program's planned market interventions to build awareness and market acceptance of the Very High
Efficiency DOAS approach. Also in 2021, the alliance worked with energy efficiency organizations and
manufacturers to support effective codes and equipment test procedures related to Very High Efficiency
DOAS by providing analysis to help refine the language around DOAS systems. lnclusion of language
around DOAS in regional building code updates helps to align the market on system requirements and
installation approaches, resulting in increased market capability.
2021 Annual Report Northwest Energy Efliciency Alliance 6
Variable Speed Heat Pumps - The Variable Speed Heat Pump (VSHP) program aims to improve best
practices and efficiency for electric residential heating system replacements. The program focuses on
replacement of electric forced air furnaces (EFAFS) and air source heat pumps (ASHPS), which account
for roughly one in five homes in the Northwest. ln 2021,the program entered NEEA's portfolio and
began critical program development activities, including continued field and lab testing, and product and
market research to expand understanding of the VSHP market. Also in 2021, to identify barriers to
market adoption and address knowledge gaps in the supply chain, the alliance conducted research to
understand the sale, design and installation processes used by residential HVAC installers, including
for VSHPS. The final reoort is available on neea.orq and will inform program development to help
ensure effective market adoption. Lastly, NEEA staff and colleagues at the U.S. EPA organized and
conducted meetings with VSHP manufacturers to drive awareness and engagement for the VSHP
product at the supply chain level, with a focus on the development of heat pump products and
capabilities that would be compatible with and beneficialto utility energy efficiency program goals.
Efficient Rooftop Units - The Efficient Rooftop Unit (RTU) program aims to increase the efficiency of
RTUs through product differentiation and ultimately Federal Standards. |n2021, the alliance continued
its work as part of a bi-national, cross-industry commiftee to revise the CSA Group's P.8 standard for
Thermal Efficiencies of lndustrial and Commercial Gas-Fired Package Furnaces. The revision sought to
represent a more accurate, holistic view of the overall energy consumption of an entire commercial gas-
fired packaged unit and was informed by field and lab testing conducted by the alliance. The updated
standard is in the final stages of publishing. And, based on the extensive research conducted for P.8,
the alliance developed and oublished a specification that enables tiers of efficiency performance in a
variety of applications. The specification outlines the best practices and approaches to delivering
efficient gas RTUs that reliably deliver heating energy savings in Northern climates and are easy to
install as a direct replacement for existing RTUs. Finally, the program continued to conduct research to
understand how market actors in the supply chain value the efficient RTU technology to identiff barriers
to product adoption.
LIGHTING PRODUCT GROUP
NEEA's Lighting Product Group works with the supply chain that manufactures, distributes, specifies,
designs and installs lighting products, as well as the end consumers who purchase them. Specific
lighting products include lamps, ballasts, controls, and fixtures.ln2021, Luminaire Level Lighting
Controls was the sole electric program in the Lighting Products Group. ln addition, this Product Group
is supported by two enabling infrastructure programs: Top Tier Trade Ally and the Distributor Platform.
Luminaire Level Lighting Controls - Luminaire Level Lighting Controls (LLLC) combine LEDs with
integrated controls and sensors to offer improved building performance and occupant comfort while
increasing energy savings. ln 2021, NEEA partnered with Northwest utilities, professional associations,
NXT Level and Lighting Design Lab to offer educational opportunities that further develop trade ally
capabilities to LLLC and other networked lighting controls. ln addition to the trainings, the program
completed a case studv on a regional high school's LLLC installation. The case study sought to drive
awareness of the benefits to LLLC technology and was shared in a media campaign that targeted
professionals who design, construct, operate and maintain electrical systems. The alliance also
completed a second earned media campaign in2021, focused on the topic of LLLC's role in smart and
2021 Annual Report Northwest Energy Efficiency Alliance 7
healthy buildings. Lastly, to drive sales and market uptake of LLLC, the program engaged with
manufacturers in 2021 to increase focus on LLLC in their sales channels throughout the Northwest. By
the end of 2021, seven total manufacturers partnered with the program. NEEA staff are collaborating
with these manufacturers regional representatives to create more effective LLLC education and
messaging targeting specifiers on the benefits of LLLC.
MOTOR-DRIVEN PRODUCTS PRODUCT GROUP
NEEA's Motor-Driven Products Product Group works with the supply chain that manufactures,
distributes, specifies, designs, and installs a variety of motor-driven products, as well as the decision-
makers who influence the purchase of these products. Specific motor products include pumps, fans,
compressed air systems and high-performance motors. ln2021, Extended Motor Products was the sole
electric program in this Product Group.
Extended Motor Products - The Extended Motor Products (XMP) program works to accelerate the
adoption of more efficient pumps. ln 2021, to better understand the market and test strategies that
continue to shift the sales mix toward more efficient options, the program partnered with eight
Northwest pump distributors. These distributors have agreed to share full category pump sales data
with the alliance each month on an ongoing basis, which helps the program understand pump
purchasing trends and refine planned market interventions. To raise market awareness and enable
product differentiation, the program continued to partner with industry groups to develop and promote
the Hydraulic lnstitute Energy Rating label, which helps customers understand the relative energy
performance differences between pump models. Lastly, to test methods for motivating distributors to
preferentially stock and sellefficient products, the alliance provided midstream incentives and other
support. As a result, sales of smart pumps comprised 17o/o of total commercial pump sales for the full
year in 2021, up from 16% smart pump penetration in2O2O. And sales of smart circulators comprised
17o/o of total circulator sales for the full year in 2021, up from 13% smart circulator penetration in 2020
This initial market response to midstream interventions lays a strong foundation for the program to
transition to the market development phase in 2022.
NEW CONSTRUCTION PRODUCT GROUP
Working closely with the alliance's Codes and Standards team, the New Construction Product Group
maximizes energy efficiency opportunities for new residential and commercial buildings by enabling
code advancement through the market adoption of energy-efficient products and practices. ln 2021,
there were two electric programs in the New Construction Product Group: Commercial Code
Enhancement, Manufactured Homes, and one dual-fuel program, Residential New Construction.
However, as of Q4 2021, the alliance's Commercial Code Enhancement and Residential New
Construction programs will no longer be stand-alone Market Transformation programs and have been
incorporated into the alliance's codes and standards work. This consolidation allows streamlined
market engagement since there is significant overlap between above-code and at-code market
activities. This change also leverages NEEA's state- by-state code training and market engagement
approaches. Activities from these programs will continueinto2022.
Commercial Gode Enhancement - The Commercial Code Enhancement (CCE) program supports
commercial code advancement in the Northwest by influencing commercial code proposals and
2021 Annual Repoft Northw*t Energy Efficiency Alliance I
preparing the market and utilities for future code requirements. ln 2021, to highlight how energy-
efficient technologies and approaches contribute to healthier buildings the alliance published several
commercial building educational resources on BetterBricks.com, including a factsheet on indoor air
quality (lAO). These resources intend to help energy professionals differentiate themselves from
competitors and build market capacity for energy-efficient products. ln addition, the program continued
to provide technical support for the Total System Performance Ratio (TSPR) analysis tool, supporting
TSPR for Washington State's performance-based energy code compliance path for HVAC systems.
TSPR is a methodology to establish relative whole-system efficiency for commercial HVAC systems,
rather than their individual components, which intends to level the playing field for efficient
technologies, promote more efficient design approaches and help buildings save more energy. Many of
these above-code commercial activities will continu e in 2022 as an integrated part of NEEA's codes
work.
Manufactured Homes - The Manufactured Homes program works to increase voluntary adoption of
NEEM+ manufactured homes, an advanced tier of energy-efficient manufactured homes that leverages
the ENERGY STAR Northwest Energy Efficient Manufactured Housing (NEEM) program. The program
works with the supply chain to increase availability and demand for NEEM+ certified energy-efficient
manufactured homes with the goal of supporting a future Housing for Urban Development code Federal
Standard. The current standard has not been updated for 25 years. ln 2021, the U.S. DOE requested
comments for its Supplemental Notice of Proposed Rulemaking which provides an opportunity for the
Northwest to influence future baseline requirements while introducing the higher tiered NEEM+
specification into the market. To help gain national alignment, NEEA staff, in cooperation with many
national and regional organizations, developed comments to help U.S. DOE answer questions
surrounding performance levels of manufactured homes. The submitted comments included data and
market intelligence from the significant market engagement activities that the alliance has supported in
the Northwest since 2016. Lastly, as of 2021, four manufacturers are building and selling NEEM+
manufactured homes. ln total, more than 130 NEEM+ homes were completed across the region in
2021.
Residential New Construction - NEEA's dual-fuel Residential New Construction (RNC) program
focuses on removing barriers to the adoption of above-code efficiency measures in new construction
and collecting market evidence that supports future code advancement. To accelerate market adoption,
the RNC program influences builders and key subcontractors to adopt above-code technologies and
best practices. ln 2021, nearly 6,500 above-code homes were green label certified, or in the process of
being certified, throughout the Northwest. Green label certifications indicate the homes were designed
to be at least 10% more efficient than homes built to code, resulting in increased savings for
homeowners throughout the region. Also in 2021, the BetterBuiltNW website - a regional resource
designed to support and promote energy-efficient home building in the Northwest - published '12
newsletters and seven new fact sheets and case studies to provide builders with information about
more energy-efficient measures. ln addition, 15 on-demand traininqs were posted on the website and
14 live webinars were delivered throughout the year to more than 1,200 attendees throughout the
Northwest. Many activities from the RNC program will continuein2O22 as a part of NEEA's codes
work, including maintenance and extension of the BetterBuiltNW website as a resource for residential
code materials and training.
2021 Annual Report Northwest Energy Efficiency Alliance 9
WATER HEATING PRODUCT GROUP
NEEA's Water Heating Product Group engages the supply chain that manufactures, distributes
(wholesale and retail), specifies, designs, and installs electric commercial and residentialwater heaters,
as well as the end consumers who purchase them. ln2021, Heat Pump Water Heaters was the sole
electric program while Efficient Gas Water Heaters was the sole natural gas program in the Water
Heating Product Group.
Heat Pump Water Heaters - The electric Heat Pump Water Heater (HPWH) program seeks to
increase adoption of HPWHs for emergency and planned replacements in single family homes and to
influence the Federal Standard to require HP level efficiency for all electric storage tanks 40 gallons or
larger. ln 2021, the HPWH program focused on ensuring retrofit electric water heater installations,
whether planned or emergency replacement, were HPWH installations. To do this, the program focused
on deepening its engagement with the retail channel, where many emergency replacement purchases
are made. Market activities included continued partnership with regional utilities through a midstream
retai! HPWH incentive program. ln total, more than 1,800 HPWHs were purchased through the
midstream retail programin2O2l. Also in 2021, to enhance market knowledge on the benefits of
HPWHs, the program conducted more than 20 webinars and trainings. The trainings consisted of a
range of topics, including a focus on building trust and familiarity amongst trade allies in the region with
the product. ln addition, the alliance conducted research activities in 2021, including publishing the 6th
Market Progress Evaluation Report (MPER) for the HPWH program. MPERs are formal evaluations
that provide actionable insights for alliance programs throughout their lifecycles and help measure
progress and inform how the market is responding to the technology and alliance interventions. The
final report can be found on neea.oro. Also, the alliance conducted a trade ally focused research project
that sought to uncover true costs and challenges with HPWH installs across a range of interior
locations. Finally, the program continued to influence product advancement through NEEA's Advanced
Water Heatinq Soecification (AWHS). a resource that provides guidance to manufacturers for
developing products that provide high levels of consumer satisfaction and energy performance. The
AWHS outlines different tiers of product performance, including forward-looking tiers that serve as a
guide for how the specification and product will evolve. ln 2021, the alliance drafted Version 8.0 of the
AWHS, which includes a specification tier for commercial HPWHS. The final Version 8.0 is now
available on neea.oro.
Efficient Gas Water Heaters - The Efficient Gas Water Heater (EGWH) program is developing the
market for efficient gas water heating products and bringing a natural gas heat pump water heater
(GHPWH) to market, with the ultimate goal of influencing the passage of a Federal Standard by 2030.
|n2021, the program continued to participate in a co-funded North American GHPWH field
demonstration in coordination with energy efficiency organizations, a major manufacturer, and multiple
utilities across North America. The goals of this forthcoming demonstration project are to veriff cold
climate product performance of GHP\l/Hs, inform utility program development, prepare for market entry
of the first commercialized product and pave the way for near-term energy savings once the product is
launched. GHPWH launch is now anticipated in2025 due to impacts of the COVID-I9 pandemic, which
delayed technology developers and manufacturers product advancement and testing. Also in 2021, the
program continued its leadership in the North American Gas Heat Pump Collaborative, which launched
in 2020 and includes utilities representing over 28o/o of households in the U.S. and Canada. The
2021 Annual Report Northw*t Energy Efficiency Alliance 10
Collaborative's mission is to develop and implement activities to accelerate the adoption of gas heat
pump technologies in North America. Participation in the Collaborative enables the program to leverage
the collective market reach in its work with market partners and more easily engage co-funding for
projects in the GHPWH initiative. Lastly, to increase awareness of currently available and cost-effective
measures for the GHPWH technology, the alliance worked with the Northwest Power and Conservation
Council's Regional Technical Form to support and inform the development of Residential Gas Water
Heater measures using research and data gathered through the alliance EGWH program activities.
/NFRA S TR U CT U RE P ROG RAM S
ln addition to its Market Transformation programs, the alliance develops and implements enabling
infrastructure that builds market capability, awareness and demand for energy-efficient products,
services and practices or new customer engagement opportunities for funders. lnfrastructure programs
include: BetterBricks, Top Tier Trade Ally, the Distributor Platform, the lntegrated Design Labs and one
special funded project, Strategic Energy Management.
BetterBricks - BetterBricks is a long-standing, trusted regional resource that supports alliance and
funder programs by raising market awareness and capability for energy-efficient technologies and
decision making. lt reaches a large commercial building audience, which includes building owners,
property managers, building facilities staff, architects, designers, engineers, and contractors. ln 2021,
BetterBricks continued to support alliance programs with awareness-building, education, and market
engagements through its robust catalogue of online resources which saw a significant uptake in
resources downloaded over the course of the year. ln addition to the available online resources, the
program participated in several educational and engagement opportunities with organizations across
the Northwest. These engagements sought to highlight how energy-efficient technologies and
approaches contribute to healthier buildings, and how BetterBricks can support the Northwest's
commercial building audience and stakeholders in adhering to localenergy efficiency and
decarbonization efforts.
Top Tier Trade Ally - The Top Tier Trade Ally (TTTA) infrastructure program builds the skills of lighting
contractors in the Northwest through the NXT Leveltraining and designation. NXT Leveltraining
encompasses two levels of comprehensive online and in-person curriculum that support the delivery
and market differentiation of more advanced energy-efficient commercial and industrial lighting retrofit
projects. The program provided a series of infographics and educational articles for Northwest utilities
to leverage in 2021 to increase customer awareness of NXT Level and drive demand for designated
companies. And, to provide continued education for trade allies in the Northwest, the program
collaborated with the LLLC program to deliver a new webinar series exclusively to NXT Level
participants. Finally, in Q4 2021 the alliance transitioned the NXT Level training and designation to the
market. Although the program is no longer managed by NEEA, it will continue to support both alliance
funder programs, including NEEA's LLLC program,in2022 and beyond.
Distributor Platform - The Distributor Platform was established to support multiple alliance programs
with real-time sales data and market intelligence. At its highest-level market engagement, it was
comprised of more than 25 regional and national electrical distributors, representing more than 265
branches across all four Northwest states. ln 2021, the Distributor Platform continued to enable data
2021 Annual Report Nofthwest Energy Efficiency Alliance 11
collection of full category lighting sales data for the region to gain additional insights about the lighting
market. For example, in 2021, the alliance leveraged the Platform to track data and distributor
responses to the pandemic and continued supply chain disruptions to stay ahead of a rapidly changing
market. ln Q4 2021, the alliance downscaled the investment in Platform, to more limited distributor
engagement while still enabling critical data collection to supplement other lighting data efforts.
lntegrated Design Labs - The mission of the lntegrated Design Labs (lDLs) is to transform the design,
construction, and operation of commercial, institutional, and residential buildings to advance energy-
efficient, high-performance, and healthy buildings in the Northwest. The lDLs exist at the Universities of
ldaho, Oregon and Washington, and Montana and Washington State Universities. The labs are a
critical partner to alliance programs and accelerate alliance Market Transformation programs through
research, technical assistance, and education. !n addition, they provide regional design teams access
to the best building-performance knowledge available, project-by-project support, and education and
training on how to design, construct and operate the healthiest, most productive, and energy-efficient
buildings. As a critical partner to alliance programs, the alliance provides annual base funding to
support each lDL. ln 2021, the lDLs supported training, awareness, and adoption in the building
professional commu nity, particu larly for LLLCS.
Strategic Energy Management - Funded as a Special Project with support from eight Northwest
utilities and energy efficiency organizations, the Strategic Energy Management (SEM) program
develops, maintains, and delivers a holistic set of tools that support Northwest utilities in providing SEM
resources to customers. ln 2021, the alliance continued to manage and maintain SEMHub.com, which
houses a library of tools and resources in SEM design, implementation and evaluation efforts for
program administrators and stakeholders to use. ln addition, NEEA staff delivered one new and one
refreshed SEM online course and updated the lndustrial Energy Talk Cards (aka Toolbox Talk Cards)
with new content, graphics, and up-to-date best practices. And, to deepen regionalexpertise on SEM
practices, the alliance continued its support of the Northwest SEM Collaborative Leadership Team and
its five active working groups. The program held its virtual 2021 Annual Northwest SEM Collaborative
Workshop with more than 80 attendees.
3, CODES AND STANDARDS
ln 2021, NEEA continued to influence the development and successful implementation of building
energy codes, appliance and equipment standards, and test procedures to materially improve
efficiency outcomes. Alliance codes and standards activities rely on and closely coordinate with the
strategies and activities of the Market Transformation programs.
Codes - Through its building codes work, NEEA participates in code change processes for commercial
and residential energy codes across allfour Northwest states by engaging with the energy efficiency
organizations and entities that develop national model codes. These include the lnternational Energy
Conservation Code (IECC), which are the base of both ldaho and Montana energy codes, the
Washington State Energy Codes (WSEC) and the Oregon State Building Codes (OSBC). ln 2021, the
IECC's 2024 code change process began. NEEA staff are actively participating in this process and
submitted 33 proposals for the residential and commercial provisions. Also in 2021, NEEA staff and
collaborators submitted nearly 65 proposals for the commercial202l WSEC, providing suggestions to
2021 Annual Repoft Northw*t Energy Efficiency Alliance 12
help the Washington state meet its latest energy and carbon goals. These combined efforts will help to
lock in energy savings through progressively effective energy codes. The IECC and the residential and
commercial WSEC code processes will continue in 2022. ln addition to supporting code change
processes, the alliance provides training and technical assistance on both current and upcoming
commercial and residential Northwest energy codes to support code adoption. Attendees include
design and construction profes.sionals, building officials, plan examiners, home builders, contractors,
fleld inspectors and fire marshals. ln 2021, the alliance delivered more than 140 webinars on topics
related to the regional code changes and activities, reaching more than 6,400 attendees in the
Northwest.
Standards - ln 2021, the U.S. DOE issued multiple Requests for lnformation (RFls) and Notices of
Proposed Rulemaking (NOPRs), initiating appliance and equipment standard rulemakings for over 60
products. NEEA staff collaborated with partners to submit more than 40 comment letters. These
responses often included a variety of resources collected through NEEA's regional efforts including
regional sales data, lab testing results, field validation data and other technical data to support
recommendations for enhanced test procedures and improved efficiency levels.
4. MARKET INTELLIGENCE
ln 2021, Market Intelligence activities focused on building capacity for in-house data management and
analysis, growing quality data sets and insights to share with regional partners, and increasing visibility
to Market Transformation outcomes and market progress indicators in addition to energy savings.
Market Research and Evaluation - Market Research and Evaluation (MRE) provides actionable
insights for Market Transformation programs throughout their lifecycles and conducts formal
evaluations of programs in market development. These research and evaluation efforts provide data
and analytical services for the benefit of utility customers. ln 2021, the alliance delivered more than 20
market research and evaluation reports to support both electric and natural gas programs, all of which
are publicly available at neea.orq.
Stock Assessments - ln 2021 , the alliance began recruitment for its upcoming Residential Building
Stock Assessment (RBSA), a comprehensive study of equipment in and characteristics of single-family
buildings, and multi-family units and buildings. NEEA staff held three webinars over the course of the
year to present information to stakeholders including the study's revised recruiting approach to adapt to
the continuation of the COVID-19 pandemic. \Nhile the timeline for RBSA is subject to change due to
uncertainties related to COVID-19, data collection is anticipated to be complete by the end of 2022, with
data and reports anticipated to be published in early 2023.
End Use Load Research - The Northwest End Use Load Research (EULR) project is a specially
funded collaboration among partners including Avista Utilities, the Bonneville Power Administration,
Clark PUD, Energy Trust of Oregon, Eugene Water & Electric Board, Northwest Power & Conservation
Council, National Renewable Energy Laboratory, PacifiCorp, Portland General Electric, Puget Sound
Energy, Seattle City Light, Snohomish PUD, and Tacoma Power. ln 2021, the EULR project continued
collecting data for its Home Energy Metering Study (HEMS) and Commercial Energy Metering Study
(CEMS) on select residential and commercial electric end-uses. The end-uses metered for the study
2021 Annual Report Northw*t Energy Efficiency Alliance 13
include ductless heat pumps, ducted heat pumps, heat pump water heaters, central air conditioning,
forced air furnaces and baseboard heaters. Data is being collected by circuit for each residential and
commercial building in one-minute intervals. As the largest end use load research project in the
Northwest since the 1980s, this work will greatly support regional planning and program design. Across
the region, over 230 homes are being metered for HEMS with a goal of 400 by project end. And, by the
end of 2021 a total of 17 commercial buildings are being metered for CEMS, with a goal of 100 by
2023. Lastly, the first and second years of data collected for HEMS became available in 2021 and were
posted on neea.ors. The third year of HEMS data will be made available in Q32022.
5. GONVENE AND COLLABORATE
The alliance's Convene and Collaborate strategy is carried out by NEEA's Stakeholder Relations,
Corporate Strategy and Communications Division.
Efficiency Exchange - Hosted in collaboration with Bonneville Power Administration and the
Northwest Power and Conservation Council, the alliance held its 2021 annual Efficiency Exchange
conference virtually in May 2021 due to the COVID-I9 pandemic. The conference hosted 16 sessions
and focused on a range of topics, such as equity in energy efficiency, next generation heat pump
technology, expanding lighting controls to HVAC, an update on the Northwest End Use Load Research
project, large scale heat pump water heating and more. More than 350 energy professionals in the
Northwest and across the nation participated across three days of the conference to convene, trade
ideas, and share best practices. More information on the virtual conference can be found on neea.orq.
ConduitNW.org - Developed in partnership with the Bonneville Power Administration, the Conduit
website facilitates information-sharing and collaboration among energy efficiency stakeholders in the
Northwest. |n2021, the website continued its core functionality and activities that have been identified
as criticalto regional Market Transformation efforts. These include the RETAC Database and the file
sharing functionality for regional working groups. This platform will sunsetin 2022.
ALLIANCE SUPPORT OF REGIONAL CLEAN ENERGY GOALS
A growing number of utilities in the region are required to meet clean energy and decarbonization goals
at varying rates. The alliance helps utilities to meet these state-by-state sanctioned goals through a
variety of activities, which include:
lmproving participation in clean energy programs from highly impacted communities and
vulnerable populations - The alliance delivers electric and natural gas energy efficiency programs,
which help make homes healthier and more energy efficient, reducing the energy burden for impacted
communities and vulnerable populations. Through its Market Transformation programs the alliance
works with the supply chain to remove barriers for efficient products, including first cost for the end use
consumer. Through its codes and standards activities, the alliance raises the bar for efficient products,
services and practices locking in energy savings for all consumers. By improving upon existing codes
and standards, the baseline products and installation practices across the state become the most
efficient options, which has positive impacts for all residents, including vulnerable populations and
impacted communities.
2021 Annual Report Northw*t Energy Efficiency Alliance 14
lncreasing quality and quantity of clean energy jobs - The alliance provides energy efficiency
trainings and webinar offerings for most of its programs. These training and education opportunities are
offered to a broad range of clean energy professionals to help them differentiate from competitors and
build market capacity for efficient products. For example, the NXT Level program provided over 1,300
individuals across the Northwest the opportunity to participate in a free-online training focused on
energy-efficient, advanced lighting retrofits and removed the barriers of location, availability, and cost to
deliver training to trade allies and market actors. ln addition, the alliance partners with organizations
across the Northwest to provide technical assistance and training on the current and upcoming
residential and commercial energy codes, ensuring that Northwest trade allies have equitable access to
training and skills to meet evolving energy codes. Finally, the alliance supports clean energy jobs for
energy efficiency professionals through its research and data efforts by working with contractors
throughout the region to support its large-scale research studies, such as RBSA and EULR.
lmproving home comfort - Alliance activities improve home comfort in several ways, including
improving indoor air quality, enhancing space heating, and cooling year-round, and working with
manufacturers to develop efficient products that are quiet. Alliance programs that contribute to
improved home comfort include Heat Pump Water Heaters, High-Performance \Mndows, Variable
Speed Heat Pumps and Codes and Standards. ln 2021,the alliance managed the Northwest Smart
Thermostat Research Study, a collaboration among utility, manufacturer, and energy efficiency
organization partners. The study sought to develop a method to estimate energy savings for smart
thermostats based on thermostat performance metrics. Findings showed significant savings
opportunities for consumers. A final report is available on neea.oro.
Reducing greenhouse gas emissions - The alliance's Market Transformation programs and codes
and standard activities contribute directly to the reduction of greenhouse gas emissions in the
Northwest by ensuring the most efficient products, technologies, and best practice applications are the
baseline. The alliance's S-year estimate for carbon reduction due to energy efficiency is 419,000-
554,000 Tons of avoided CO2. ln 2021, NEEA's electric and natural gas Market Transformation efforts
resulted in an estimated 185,000 tons of avoided COz emissions.
LOOKING TO THE FUTURE
What's ahead? \Mth three years left in the funding cycle, NEEA's Board has begun to engage in
strategic planning for Cycle 7,2025-2029. As the proliferation of renewables in the region expands, the
Northwest will demand more from its investment in energy efficiency. ln particular, efficiency
investments on the customer side of the meter are most valuable when they can provide load flexibility
for the electric system. Further, the region is being challenged to address historically underserved
markets, such as rural or low-income communities, with efficiency programs. NEEA is committed to
support the region's utilities and efficiency organizations in their efforts to provide efficiency services in
all markets as the Northwest's energy needs continue to evolve.
2021 Annual Report IVorfhwest Energy Efficiency Alliance 15
:".Biddrt
REGIONAL COORDINATION
Alliance programs are coordinated through regionalworking groups, advisory and coordinating committees
and the Board of Directors, whose members span Northwest utilities, public interest groups, energy service
professionals and industry associations. NEEA stafi are grateful for the time and energy its funding staff and
stakeholders dedicate to participating in these forums and on NEEAs Board of Directors.
BOARD OF DIRECIORS;
Gilbert Archuleta
Puget Sound Enerry
D i rector, Customer Energr
Management
Dan Bedbury
Clark PUD
Director of Energy
Resources
Stephen Bicker
Tacoma Power
Sr, Manager, Customer
Energy Programs
Holly Braun
NW Natural
Manager of Energy
lnnovation and Policy
lohn Ghatburn
(left board in 2O2I)
ldaho Office of Energy and
Mineral Resources
Administrator
Scott Goe
(retired in 2O2l)
Emerald PUD
Manager, Western Power
Business Area
Michael Colgrove
NEEA Board Vice Chair
Energy Trust of Oregon
Executive Director
Monica Gowlishaw
Cascade Natural Gas
M anager Energy Effic iency
and Community Service
Robeil Cromwell
(left board in 2OZI)
Seattle City Light
Vice President of
Power Supply
Theresa Drake
NEEA Board Secretary
ldaho Power
Senior Manager,
Customer Relations
and Energy Efficiency
Jennifer Finnegan
(joined board in 2022)
Seattle City Light
Energy Planning
Supervisor - Customer
Care & Energy Solutions
Suzanne Frew
NEEA Board Treasurer
Snohomish County PUD
Sr. Program Manager
Andrew Glassell
Chelan PUD
Manager - Energy
Development and
Conservation
Jamae Hilliard Greecy
Bonneville Power
Administration
Vice President of
Energy Efficiency
l{icole Hydzik
Avista Utilities
Manager of Energy
Solutions and Efficiency
Anna [ising
(joined board in 2022)
Washington Governor's
Representative
Senior Energlr Policy
Advisor
lori Moen
(left board in 2O2l)
Seattle City Light
Manager of Solutions
Design and Management
Patrick 0shie
Northwest Power and
Conservation Council
Washington Council
Member
Ben 0tto
ldaho Conservation
League
Attorney
Kyle Roadman
Emerald PUD
Power Manager
Bonnie Rouse
Montana Energy Office
Recycling, Energy and
Compliance Assistance
Ruchi Sadhir
Oregon Department
of Energy
Associate Director,
Strategic Engagement
& Development
Gory Scott
NEEA Board Chair
Pacific Power
Vice President, Customer
a nd Comm u n ity Sol ution s
Bob Stolarski
(left board in 2O2l)
Puget Sound Energy
Director, Customer
Energy Management
Kim Thompson
(left board in 2O2I)
Bonneville Power
Administration
Vice President, NW
R eq u i reme nts M a rket i ng
Marissa Warren
(joined board in 2022)
ldaho Office of Energy
and Mineral Resources
Energy Program Manager
Deb Young
NorthWestern Energy
Program Consultant
See a full list of NEEA's committee members on neea.org.
2021 Annual Report Northwest Energy Efficiency Alliance 16
ADDITI ON AL I N FORM ATI ON
For additional infurmation, NEEA's 2021 Quarterlv Performance Reports. nerrsletters and the!p{
Annual Reoo4 metrics are available online at neea.org.
NEEA staff encourage stakeholder participation and appreeiate input at all NEEA board meetings,
committee meetings and energy efficiency events around the region. Meeting details are posted on
ne€a.orq in advance.
Ptease direct questions or comments about this reportto [e-mail].
2021 Annwl Rqoft Nortlwst Energy Efficlurcy Alllance 17
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. !PC-E-22-08
IDAHO POWER COMPANY
REQUEST NO.7
ATTACHMENT NO. 2
SEE ATTACH ED SPREADSH EET
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPC-E-22-09
IDAHO POWER GOMPANY
REQUEST NO. 7
ATTACHMENT NO.3
Memorandum
March 24,2022
'
neea
TO Kathy L. Yi, Energy Efficiency Analyst, ldaho Power Company;
Quentin Nesbitt, Energy Efficiency Leader, ldaho Power Company;
Chad Severson, Energy Efficiency Analyst, ldaho Power Company
CC:Stephanie Rider, Senior Manager, Data, Planning, and Analytics, NEEA;
Susan Hermenet, Director, Research, Evaluation and Analytics, NEEA;
BJ Moghadam, Senior Manager, Stakeholder Relations, NEEA
FROM: Christina Steinhoff, Principal Planning Analyst, NEEA Data, Planning and Analytics
SUBJECT: Final 2021 Annual Savings Report
NEEA is an alliance of utilities that pools resources and shares risks to transform markets toward
energy efficiency that benefits consumers in the Northwest. NEEA's role is to establish technology
and market conditions that advance energy efficiency in markets in a sustainable way.
Energy savings are enabled by the alliance's market transformation programs, codes and
standards work, and investment in tools, training, resources, data, and research to support greater
efficiency. The programs seek to affect sustainable changes in markets, which then result in energy
savings.
As such, ldaho Power has asked NEEA to report savings based on an established agreement.
Based on that agreement, NEEA provides annual tracking and reporting of savings resulting from
long-term market transformation efforts.
This memo provides lhe finalenergy savings estimates for 202L. NEEA allocates the savings based
on ldaho Power's funding share of its regional investment. The savings are above NEEA's market
transformation baseline and are net of savings claimed through regional utility programs. Details
about baseline and technical assumptions are in the attached Excel spreadsheet.
Please do not hesitate to contact Christina Steinhoff at 503.688.5427 with any questions about this
report.
neea.org I [e-mail]
Final 2OZl Savings Estimate Summary
NEEA estimates ldaho Power's 2021 annual electric energy savings associated with its initiatives is
1.92 aMW (Table 1). These savings are above the NEEA baselinel and exclude an estimate of
savings that Energy Trust of Oregon, Bonneville and local utilities claim through locally run
programs. NEEA allocates energy savings based on funder share.
Table 1: 2021 Annual Report Savings Estimates (aMW)
Notes:
The values represented are rounded to the hundredth decimal in this summary table. See the accompanying excel workbook for
the detailed figures.
These are site-based, first year electric savings.
Net Market Effects= Total Regional Savings- Local Program Savings -Baseline Savings
Approximately 0.41 aMW come from voluntary programs like Heat Pump Heaters, Retail Products
Portfolio and Extend Motors Products. The remining savings come from codes and standards.
Codes and Standards work can be tied to a program (e.g. Next Step Homes, Clothes Washers and
Heat Pump Water Heaters) or can be the result of direct work and contributions to the rule-
making process on measures not in NEEA's portfolio of voluntary initiatives. lnfluencing the
adoption of codes and standards is a key market transformation strategy, and, when successful,
results in a sustained market change. On behalf of the region, NEEA works at state and national
levels to influence the adoption of increasingly stringent building energy codes and federal
appliance and equipment standards. Working in collaboration with its partners, NEEA gives the
Northwest a voice in codes and standards processes and is frequently the only efficiency
organization directly representing utilities in these forums.
ln addition, NEEA has several programs such as Very High Efficiency Dedicated Outdoor Air
Systems, and Variable Capacity Heat Pumps that are new and do not yet have associated savings
rates. In the next few years, NEEA anticipates these voluntary programs will begin delivering
savings. NEEA is also investigating several emerging technologies with savings opportunities for
the 5-10-year horizon. These include thin triple-pane windows.
I NEEA estimates Baseline as the savings that would have occuned without NEEA, utility, the Bonneville Power
Administration, and the Energy Trust of Oregon's market intervention.
Northwest Energy Efficiency Al I ia nce
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503.688.5400 | Fax [phone] Page 2 of 5
Residential 1.08
Commercial 0.59
!ndustrial 0.25
Total L.92
Variance from February 2OZl Report
Overall, the 2021savings estimate decreased by 6% (0.12 aMW)from the forecast NEEA provided
in February.
o Codes and Standards: The code savings decreased by 0.14 aMW primary because of an
update to the savings accounting. NEEA reports Net Market Effects savings for 10 years for
codes the Alliance worked on. This report phases out the savings for codes effective in
2011starting in 2021.
o Voluntarv Prosrams: The voluntary program savings increased by 0.02 aMW. The variance
is based on NEEA updating the prior estimate with final 2O2l data for most programs.
Some programs, particularly the Retail Products Portfolio, had better than expected
outcomes for 2O2L.
More details about the other updates are available in the Vorionce Report Tob of the attached
spreadsheet.2
Historical Updates
NEEA updates its historical savings estimates based on new data. The 2020 savlngs increased from
2.01to 2.11aMW. Changes include:
o Retail Products Portfolio: NEEA was able to match refrigerator models that are as efficient
as the ESME specification by identifying models that earned ENERGY STAR's Emerging Tech
Award. The award allows manufacturers to use an advanced adaptive compressor test
procedure to qualify. This alternative test procedure accounts for adaptive compressor
technology by testing energy use at multiple ambient temperatures. Previously, NEEA
counted many of these models as ENERGY STAR when they actually save as much as 30%
more than ENERGY STAR when the compressor is in variable-speed mode. The Emerging
Tech Award is a significant part of NEEA's Retail Products Portfolio Program.3
o Heat Pump Water Heaters: In December 202L, NEEA updated the savings rates for Heat
Pump Water Heaters to align with the values provided in the latest RTF workbook. These
new savings rates were increases over the previously calculated rates for every tier, which
led to an overall increase in Net Market Effects for the program.
2 Note that NEEA is basing the 2020 DHP savings estimate on 2019 data and 2020local programs data. NEEA will
update these estimates in September with final data from manufacturers.
3 NEEA reviewed this update with CEAC on March 1,2022.
Northwest Energy Efficiency Alliance
421SW Sixth Avenue, Suite 600, Portland, OR 97204
503.688.5400 | Fax [phone] Page 3 of 5
Extended Motor Products: NEEA obtained more detailed information about the units. The
categorization of the units into their tiers is more accurate. With the data updates the units
could more accurately be allocated to the efficient tiers.
Ductless Heat Pumos: NEEA received final 2020 data for Ductless Heat Pumps in August of
2O2L. The data showed that sales for DHPs in 2020 were lower than originally forecasted,
which led to a decrease in remaining savings.
Residential Codes: NEEA updated the new construction estimates with final HUD permit
data for 2021. The update increased the estimate of new multifamily homes.
Appendix A: Methodology to Forecast Savings
Allocation Methodolory
NEEA allocates regionalsavings (ldaho, Montana, Oregon, and Washington) using shares of
investment by funder. These shares vary by funding cycle. Savings from previous investments
receive the previous funder share. Savings from current investments receive the current funder
share. Table 2 shows the funder shares.
Table 2: Funder Shares
Business Plan Funding Share
2020-2024 9.23o/o
2015-2019 8.lLo/o
20L0-2074 8.670/o
Prior 6.420/o
Code Savings Allocation
Using a funder share allocation approach means ldaho Power's report includes code savings from
Washington, Oregon, and Montana. Approximately 18% of the 2021 regional code savings
occurred in Idaho primarily because of the addition of ldaho's newest residential code (IEEC 2018
with amendments), which saves approximately LL.6% over the prior code.a lf NEEA were to use a
service territory approach, ldaho Power's code savings would increase to approximately 1.38 aMW
from 1.05 aMW. Because the service territory savings will likely continue to deviate going forward,
NEEA would like to revisit its allocation approach in future funder reports.
Baseline and Technical Assumptions
This report follows NEEA's method of measuring electric energy savings from market
transformation efforts. The baseline is an estimate of the market adoption without intervention
a Ecotope. Jan. 5, 2021 . Residential Code Savings in ldaho and Montana. Percent is whole home savings, which
includes gas. Electric only savings are estimated al8.2o/o.
Northwest Energy Efficiency Alliance
421 SW Sixth Avenue, Suite 600, Portland, OR97204
503.688.5400 I Fax [phone] Page 4 of 5
a
a
by NEEA, the Bonneville Power Administration, the Energy Trust of Oregon and utilities. Prior to
reporting the savings above the baseline, NEEA removes the savings counted through the loca!
programs. This effort avoids double counting energy savings.
The technical assumptions come from third-party research including NEEA-contracted research
and the RegionalTechnical Forum.
More details about the assumptions are available here:
Northwest Enerev Efficiencv Alliance (NEEAI I Connect to NEEA tools...
Login and go to Souings Reports
Northwest Energy Efficiency Al lia nce
421SW Sixth Avenue, Suite 600, Portland, OR 97204
503.688.s400 | Fax [phone] Page 5 of 5
BEFORE THE
IDAHO PUBLIG UTILITIES GOMMISSION
GASE NO. IPC-E-22-08
IDAHO POWER COMPANY
REQUEST NO. 8
ATTACHMENT NO. 1
SEE ATTACH ED SPREADSH EET
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPC-E-22-08
IDAHO POWER COMPANY
REQUEST NO. 9
ATTACHMENT NO. 1
SEE ATTACH ED SPREADSH EET
BEFORE THE
IDAHO PUBLIC UTILITIES GOMMISSION
GASE NO. IPC-E-22-08
IDAHO POWER COMPANY
REQUEST NO. 10
ATTACHMENT NO. 1
SEE ATTACH ED SPREADSH EET