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Home My WebLink About20140110AVU to Staff 20,22-24,26-38,40-42,47,54,56,58,59.pdfAVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATTON JUzuSDICTION: IDAHO CASE NO: AVU-E-I3-09/AVU-G-13-02 REQUESTER: IPUC StaffTYPE: Production Request REQUEST NO.: Staff-2O DATE PREPARED: 0110312013 WITNESS: RESPONDER: DEPARTMENT: TELEPHONE: Chris Drake DSM (s0e) 495-46s8 REQUEST: Page 8 of the 2012 ldaho Electric Impact Evaluation Report says the low-income program had a 102% realization rate, but only achieved24% of the Integrated Resource Plan (IRP) goal. If realization rate was over 100%, please explain how the progam missed the IRP target so significantly. RESPONSE: The IRP (and business plan) goals estimate the amount of measures that could be installed multiplied by a unit energy savings (UES) per measure. In2012, for the low income program in particular, a process improvement to adjust the UES based on a review of the customer's actual usage resulted in instances where a lower UES was claimed than what was used for plaru:ing purposes. This individual UES review was implemented as a result of a third party report for low income programs recommending that prior to claiming low income savings, UES estimates should be evaluated compared to the specific customer's actual usage and should not exceed a pre-determined level. Avista implemented a process based on this recommendation to cap low income savings claimed to no more than20oh of a customer's actual usage. This has the positive effect of increasing the realization of the claimed savings; however, it does reduce the amount of overall energy savings claimed toward a program goal (IRP or Business Plan). Additionally, the number of energy efficiency measures installed in2012 (214 measures) was less than estimated (487 measures) due in part to an increase in cost per measure installed. AVISTA CORPORATION RESPONSE TO REQUEST FOR TNFORMATTON JURISDICTION: CASE NO: REQUESTER: TYPE: REQUEST NO.: IDAHO AVU-E- I 3 -o9/AVU-G -t3 -02 IPUC Staff Production Request Staff-22 DATE PREPARED: 0110312013 WITNESS: RESPONDER: DEPARTMENT: TELEPHONE: Lori Hermanson DSM Policy, Planning & Analysis (s09) 4es-46s8 Please provide an electronic and three hard copies of the General Population Survey report. Please see StaflPR_22 Attachment A for three copies of the presentation. 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J o:!9Ut'E t6l o-rIo 6)o3C)oor^gt'va.!]r(!Fq6lloxno sr 6*JrDO-r-=bz;{;hdrDo-{o{ i' Ei' oof a!a o,o,! JO o-Jr!o?l iD.< i! a a- ilF{o .. eh'n \.-.+ rJl^ at*l'€NN' 0)of3o = 1'0)(oo5 o A l>H AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION JURISDICTION: IDAHO CASE NO: AVU-E-I3-09/AVU-G-13-02 REQUESTER: IPUC StaffTYPE: Production Request REQUEST NO.: Staff-23 DATE PREPARED: }ll032}l4 WITNESS: RESPONDER: DEPARTMENT: TELEPHONE: Lori Hermanson DSM Policy, Planning & Analysis (s09) 4es-46s8 REQUEST: Please explain why Avista hired Cadmus to develop savings estimates for the upstream compact fluorescent light bulb (CFL) program when the Regional Technical Forum (RTF) already provided savings for those measures. If Avista believes that the program mechanism or delivery method is substantially different from what the RTF evaluated, please explain the differences in detail. RESPONSE: Per Avista's EM&V Framework ('Framework') as well as the Evaluation Measurement & Verification Request for Proposal scope, both of which were presented to the Advisory Group for comment, the Company obtains verification on its portfolio. Also according to the Framework, the level of verification and/or rigor differs based on the size of the program, amount of uncertainty or risk. While the RTF has unit energy savings (UES) for upstream lighting measures, the evaluator was hired to review the program as part of Avista's portfolio to ensure that the savings claimed as submitted by the third-party implementer are accurate and reasonable and supported by appropriate documentation. In addition, Cadmus used actual bulbs sold as opposed to RTF's dated estimate based on the best information at the time. Over the course of the years, many aspects of the market can change. The rapid drop in LED prices is an excellent example. While the RTF is making reasonable, regional resource planning assumptions, Avista's sales will likely, and often do, produce a different mix of measures that result in different savings. Given that Avista's lighting program is a significant portion of its portfolio, it is realistic to want to quantifu the actual savings that are being achieved based on what Avista's program was actually delivering. AVISTA CORPORATION RE,SPONSE TO REQUEST FOR INFORMATION JURISDICTION: IDAHO CASE NO: AVU-E-13-09/AVU-G-13-02 REQUESTER: IPUC StAffTYPE: Production Request REQUESTNO.: Staff-24 DATE PREPARED: 0l/0312014 WITNESS: RESPONDER: DEPARTMENT: TELEPHONE: Lori Hermanson DSM Policy, Planning & Analysis (s09) 49s-46s8 REQUEST: Please explain why Avista hired Cadmus to determine energy savings for refrigerator recycling when those estimates are available from the RTF. If Avista believes that the progftlm mechanism or delivery method is substantially different from what the RTF evaluated, please explain the differences in detail. RESPONSE: While the RTF has unit energy savings (UES) for refrigerator and freezer recycling, the evaluator was hired to review the program as part of Avista's portfolio to ensure that the savings claimed as submitted by the third-parry implementer were accurate, reasonable and supported by appropriate documentation. Furthermore, RTF UES are based on averages while third-party implementer provides the actual make/model of appliances removed. Cadmus used actual units removed in determining their evaluated savings for this program as opposed to RTF's dated estimates that were based on the best information they had at the time. While the RTF is making reasonable, regional resource planning assumptions, the actual units removed within Avista's service territory results in a different mix of measures that result in different savings. Given that the actual mix of make/models of refrigerators and freezers are known, it is realistic to want to quantify the actual savings that are being achieved based on how Avista's progfttm is actually performing in the market. AYISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION JURISDICTION: IDAHO DATE PREPARED: 0110312013 CASE NO: AVU-E-13-09/AVU-G-13-02 WITNESS: REQUESTER: IPUC Staff RESPONDER: Bruce FolsomTYPE: Production Request DEPARTMENT: DSM REQUEST NO.: Staff-26 TELEPHONE: (509) 495-8706 REQUEST: Please explain why Avista was incenting Energy Star dishwashers when that measure stopped passing most northwest utilities' cost-effectiveness tests several years ago. RESPONSE: There were some dishwasher sub-measures, based on various tiers of energy efficient models and other combinations with hot water fuel-type that resulted in a potentially cost-effective dishwasher program. These sub-measures were evaluated in the Company's 2012 Business Plan, which included a net-to-gross adjustment. The measures were discontinued in2012 based on the 2011 EM&V efforts, and larger than estimated impacts from net-to-gross studies. Some third party research suggested free-ridership for dishwashers to be too high to pass a net total resource cost test. AVISTA CORPORATION RESPONSE TO RE,QUEST FOR INFORMATION JUzuSDICTION: IDAHO CASE NO: AVU-E-13-09/AVU-G-13-02 REQUESTER: IPUC StaffTYPE: Production Request REQUEST NO.: Staff-27 DATE PREPARED: 0110212014 WITNESS: RESPONDER: DEPARTMENT: TELEPHONE: Lori Hermanson DSM Policy, Planning & Analysis (s09) 49s-46s8 REQUEST: Please explain why it was reasonable to use 245 washing cycles per year for dishwasher energy savings estimates when the RTF (based on Residential Building Stock Assessment data) uses 170 washing cycles and the U.S. Department of Energy uses 215 washing cycles per year. RESPONSE: Per Cadmus, survey data from the Idaho and eastern Washington regions weighted by proportion of participation was used to arrive at 245 washing cycles per year. It is Cadmus' belief that the data used was more current and region specific than the data used in the RTF and by the DOE. The Company allows for the third-party evaluator discretion to employ their professional judgment and agreed with the decision to use more current and region specific data as opposed to RTF's regional, weighted average estimated cycles. The Company believes the RTF data provides benefit, however should be updated when more Avista-specific data and/or more recent data becomes available. Avista and Cadmus work with the RTF to provide impact findings specific to Avista's Idaho and eastern Washington service territory in order to inform and improve on future regional estimates and/or Power Plans. AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION JURISDICTION: IDAHO DATE PREPARED: 0110212014 CASE NO: AVU-E-I3-09/AVU-G-13-02 WITNESS: REQUESTER: IPUC Staff RESPONDER: Lori HermansonTYPE: Production Request DEPARTMENT: DSM Policy, Planning & Analysis REQUESTNO.: Staff-28 TELEPHONE: (509) 495-4658 REQUEST: Cadmus justifies using 245 dishwasher annual washing cycles based on "recent evaluation surveys conducted in the region." Footnotes 17 and 18 identiff these evaluations as a Pacific Power evaluation and a Rocky Mountain Power evaluation, but does not identify the authors of either evaluation. Please identiff the authors of these evaluations. RESPONSE: Cadmus was the author of these evaluations. The Cadmus Group, Inc. Pacific Power. Washington 2009-2010 Residential Home Energt Savings Evaluation January 2012. http://www.pacificorp.com/content/dam/pacificorp/doc/Enerey_SourceslDemand_Side_Manage ment/WA_20 I I _HES_Final_Report_Appendix.pdf The Cadmus Group, Inc. Rocky Mountain Power. 2009-2010 Idaho Residential Home Energt Savings Evaluation February 2012. hftp://www.pacificorp.com/content/darn/pacificom/dociEnergy-SourceslDemand_Side Managg ment/ID-HE S-Pro gram-Eval uati on 2 009-2 0 1 0. pd f AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION JUzuSDICTION: IDAHO CASE NO: AVU-E-I3-09/AVU-G-13-02 REQUESTER: IPUC StaffTYPE: Production Request REQUEST NO.: Staff-29 DATE PREPARED: 0110212014 WITNESS: RESPONDER: DEPARTMENT: TELEPHONE: Lori Hermanson DSM Policy, Planning & Analysis (s09) 49s-46s8 REQUEST: Please explain why it was reasonable to estimate dishwasher savings based on methods currently used in the ENERGY STAR calculator, but it was not reasonable to use the U.S. DOE estimation of annual washing cycles. RESPONSE: Per Cadmus, the method or equation shown below is a standard that uses input values that can be modified when updated or region specific inputs are available. The method remains constant regardless of new inputs. Furthermore, this method or equation is consistent with the method/equation used by the Regional Technical Forum or the U.S. DOE estimation but updated with more recent and Avista-specific data. Arurual kWh Savingr: (6ffi #) x cYcles/Year AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION JURISDICTION: IDAHO CASE NO: AVU-E-I3-09/AVU-G-13-02 REQUESTER: IPUC StAffTYPE: Production Request REQUEST NO.: Staff-30 DATE PREPARED: 0110212014 WITNESS: RESPONDER: DEPARTMENT: TELEPHONE: Lori Hermanson DSM Policy, Planning & Analysis (s09) 49s-46s8 REQUEST: Please explain why it was reasonable to use an amalgamation of sources (the ENERGY STAR calculator methodology, RTF data inputs, Cadmus-adjusted baseline, and washing cycles based on northwest data) to construct dishwasher energy savings rather than use the energy savings estimates provided by the RTF. If Avista believes that the program mechanism or delivery method is substantially different from what the RTF evaluated, please explain the differences in detail. RESPONSE: Per Cadmus, the ENERGY STAR methodology (shown in the equation provided in Avista's response to Staff_PR_29) was used for Idaho because it is standard EM&V practice. Cadmus uses RTF values or inputs from other sources to construct the most accurate representation of energy consumption and savings based on delivery means, current available data, operational characteristics and service territory considerations. The RTF average savings assumes a regional-based adjusted market baseline, which is not consistent with standard evaluation practice of identifuing a gross savings over federal standard ("standard") and then applying impacts such as freeridership and spillover to derive a final net savings value. The gross savings value for dishwasher is 62 kWh, while the net savings is 14 kWh. The RTF savings for dishwashers is 9 kWh. Again, the calculation methodology is consistent, but Cadmus uses the most recent and region specific inputs available. The RTF savings value uses inputs consistent with planning assumptions and the Cadmus savings uses inputs and federal standard baseline that is consistent with evaluation methodology. AYISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATTON JURISDICTION: IDAHO DATE PREPARED: 0110212014 CASE NO: AVU-E-13-09/AVU-G-13-02 WITNESS: REQUESTER: IPUC Staff RESPONDER: Lori HermansonTYPE: Production Request DEPARTMENT: DSM Policy, Planning & Analysis REQUESTNO.: Staff-3l TELEPHONE: (509) 495-4658 REQUEST: Please explain why Cadmus modified the RTF baseline for refrigerators and freezers to assuming that}Yo of baseline units would be Energy Star. RESPONSE: Per Cadmus, their evaluation practice is to use industry "standard" baseline to produce a gross savings relative to code minimum. A net-to-gross (NTG) factor can then be applied to derive a net savings. The RTF starts with a market based baseline, thus producing a net savings value upfront. The end result is approximately the same. The difference is where the net adjustment is made. AVISTA CORPORATION RESPONSE TO REQUEST FOR TNFORMATTON JURISDICTION: IDAHO CASE NO: AVU-E-I3-09/AVU-G-13-02 REQUESTER: IPUC StaffTYPE: Production Request REQUESTNO.: Staff-32 DATE PREPARED: 0110212014 WITNESS: RESPONDER: DEPARTMENT: TELEPHONE: Lori Hermanson DSM Policy, Planning & Analysis (s09) 49s-46s8 REQUEST: Page 39 of the Cadmus evaluation says that "Cadmus calculated the average base case and the efficient case Energy Factor (EF) [for clothes washers] with both based on data by the RTF. The baseline EF equaled the average market efficiency of units not qualifying for the program, and the efficient EF equaled the market average efficiency of units qualifying for the progam at the time of their rebate." Please explain why the Company used a baseline unit market efficiency that assumed no units would qualifu for the program RESPONSE: Per Cadmus, they chose to modify the baseline to produce a gross savings value so that they could then applied a net-to-gross (NTG) factor to derive a net savings value. This practice is consistent with industry "standard" practice. As in Avista's Response to Staff PR_31, the only difference is in where in the EM&V process the net adjustment is made and the end result is approximately the same. The Company grants the third-party evaluator discretion to employ their professional judgment and agreed with the decision to use industry "standard" gross and net energy savings. The Company believes that the end result is approximately the same as the RTF. AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION JUzuSDICTION: IDAHO DATE PREPARED: 0110212014 CASE NO: AVU-E-I3-09/AVU-G-13-02 WITNESS: REQUESTER: IPUC Staff RESPONDER: Lori HermansonTYPE: Production Request DEPARTMENT: DSM Policy, Planning & Analysis REQUESTNO.: Staff-33 TELEPHONE: (509) 495-4658 REQUEST: Page 19 of the Cadmus evaluation titles a section "Uniform Methods Project (UMP) and RTF Protocols," but no reference to the RTF appears in the following paragraphs. Please explain the discrepancy and supply and missing language. RESPONSE: Per Cadmus, the portion of the title "and the RTF Protocols" was included in error and, which is why RTF protocols are not discussed in this section. Cadmus apologizes for this error. AVISTA CORPORATION RESPONSE TO REQUEST FOR INTORMATION JURISDICTION: CASE NO: REQUESTER: TYPE: REQUEST NO.: TDAHO AVU-E- 1 3-o9/AVU-G -t3-02 IPUC Staff Production Request Staff-34 DATE PREPARED: 0110212014 WITNESS: RESPONDER: DEPARTMENT: TELEPHONE: Lori Hermanson DSM Policy, Planning & Analysis (s09) 49s-46s8 REQUEST: Please explain why Avista and Cadmus chose to conform to UMP rather than some other regionally or nationally accepted standard. RESPONSE: Per Cadmus, the uniform methods project (UMP) is the most recent, most widely reviewed standard currently available. As this is the most appropriate standard for EM&V, Cadmus has utilized this methodology as the new national standard. The UMP is significantly more detailed than the RTF in outlining all possible routes that a recycled refrigerator could have gone. The most significant difference from the RTF is the starting baseline. Cadmus believes the end net result is not significantly different (i.e., RTF refrigerator savings : 482 kWh vs Cadmus savings : 528 kwh) though the Cadmus savings are based on the actual mix of refrigerators recycled as opposed to an estimate. The Company agrees that the UMP is the most widely-accepted national EM&V standard for defined measures. The RTF staffparticipated in the development of the UMP with the Department of Energy. Avista is currently in the process of updating its EM&V Framework and intends to include references to UMP as well as other sources that have supplanted the former National Action Plan for Energy Efficiency (NAPEE). AVISTA CORPORATION RESPONSE TO RE,QUEST FOR INTORMATION JURISDICTION: IDAHO CASE NO: AVU-E-13-09/AVU-G-13-02 REQUESTER: IPUC StaffTYPE: Production Request REQUEST NO.: Staff-35 DATE PREPARED: 0110212014 WITNESS: RESPONDER: DEPARTMENT: TELEPHONE: Lori Hermanson DSM Policy, Planning & Analysis (s09) 49s-46s8 REQUEST: Please provide the RTF clothes washer Unit Energy Savings (UES) for 2010, 2011, and20l2 and the Cadmus 2009 UES. If Avista believes that the program mechanism or delivery method is substantially different from what the RTF evaluated, please explain the differences in detail. RESPONSE: Per Cadmus, the RTF UES for all yeus:159 kwh. Cadmus-evaluated 2012 UES was 192 kwh. Cadmus modified the baseline to produce a gross savings value and then applied a net-to-gross (NTG) factor to derive a net savings estimate. Recent independent evaluation surveys from the regional Residential Building Stock Assessment (RBSA) and surveys of Avista's2012 Participants both estimated 262 washing cycles per year. The RTF historically assumed 352 and Cadmus' previous analysis used 377 cycles per year, which came from a weighted average from recent surveys from Washington and Idaho for another utility. Another difference between the Cadmus method and the RTF is that Cadmus assumes only 80% of clothes washer cycles are dried, whereas the RTF assumes all cycles are dried. Furthermore, the RTF starts with a market based rather than a "standard" baseline. As such, the RTF estimate is equivalent to a "net" savings value in the EM&V lexicon. The difference is when the adjustment is made where the RTF applies the adjustment at the front end (adjusting the market baseline) while industry "standard" EM&V applies the net-to-gross (NTG) adjustment at the end. The Company grants the third-party evaluator discretion to employ their professional judgment and agreed with the decision to use industry "standard" gross and net energy savings as well as substituting more recent and Avista-specific data. In the case of net vs. RTF's adjusted market baseline, Avista believes that the end result is approximately the same. AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION JUzuSDICTION: IDAHO CASE NO: AVU-E-13-09/AVU-G-13-02 REQUESTER: IPUC StAffTYPE: Production Request REQUEST NO.: Staff-36 DATE PREPARED: 0110212014 WITNESS: RESPONDER: DEPARTMENT: TELEPHONE: Lori Hermanson DSM Policy, Planning & Analysis (509) 49s-46s8 REQUEST: Page 34 of the Avista 2012ldaho Electric impact evaluation reads "Cadmus updated the analysis for this [clothes washer] evaluation to improve the accuracy of the savings estimated." Please fully explain what updates were made, how the updates improved the accuracy of the savings estimates, and provide the post-update UES. RESPONSE: The quoted sentence above refers to updated inputs, but retains the consistent methodology with the RTF. The equation for savings is below. Annual kwh Saving, = r& - l(\ /h ' = (lordb"r" - r"a4rr) x loads/Year As stated above, the modification was to reduce the loads per year to 262, consistent with the recent regional Residential Building Stock Assessment (RBSA) findings which was confirmed by and exactly matching survey results of Avista's 2012participants. The resulting gross UES is 192 kwh, and the net savings are 44 kwh. The Company grants the third-party evaluator discretion to employ their professional judgment and Avista agreed with the decision to substitute more recent and Avista-specific data. AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION JURISDICTION: CASE NO: REQUESTER: TYPE: REQUEST NO.: IDAHO AVU-E- l 3-09/AVU-G -t3-02 IPUC Staff Production Request Staff-37 DATE PREPARED: 0110212014 WITNESS: RESPONDER: DEPARTMENT: TELEPHONE: Lori Hermanson DSM Policy, Planning & Analysis (s09) 4es-46s8 Please explain the source and calculations for $36,356 ofnon-energy benefits produced by the 2012Electric Energy Star Appliance program. The $36,356 non-energy benefits were based on $0.ll83lkwh saved for clothes washers. Unfortunately, the source could not be located, however, the Company periodically reviews city and county water & sewage rates. Notably, this $0.1183/kwh water and sewage savings for clothes washers compares with current RTF non-energy benefits for clothes washers of $0.13/kwh. AVISTA CORPORATION RESPONSE TO REQUEST FOR TNFORMATION JURISDICTION: IDAHO DATE PREPARED: 0110212014 CASE NO: AVU-E-13-09/AVU-G-13-02 WITNESS: REQUESTER: IPUC Staff RESPONDER: Lori HermansonTYPE: Production Request DEPARTMENT: DSM Policy, Planning & Analysis REQUEST NO.: Staff-38 TELEPHONE: (509) 495-4658 REQUEST: Please provide source and calculations for the non-energy benefits produced by the Nonres-Food Service Equipment electric progmms for 2010, 20ll,and20l2. RESPONSE: Please see Staff PR_38 Attachment A for the non-energy benefits associated with the Nonres Food Service Equipment program for 2010-2012 along with sources and calculations. As part of the annual reporting process, the impact of recurring non-energy benefits are computed and present valued. 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Please explain. RESPONSE: Within the business planning process measures are designed to be TRC cost-effective based upon their incremental costs and benefits. When measures are aggregated into progftlms any additional costs that are incremental at that level of aggregation are included in a program-level TRC analysis. Lastly programs are aggregated into an overall portfolio and all costs are included in a program-level TRC analysis. At each level of aggregation (measure, progftlm and portfolio) programs are generally expected to be TRC cost-effective based upon the prospects for the following year. Exceptions may occur when the measure or program is minimally short of being fully cost-effective or if there are significant benefits that cannot be quantified within the TRC analysis (e.g. market transformation or non-energy benefits). Programs with significant up-front costs may be reviewed on a program life basis rather than an annual basis. Except on rare occasions, passing the TRC cost-effectiveness test ensures that the UCT cost-effectiveness test is passed as well. Exceptions occur when the incentive equals or exceeds the measure cost. This most often occurs in low income programs or programs with no customer cost (refrigeratorlfreezer recycling). In these cases the Company will design a program around the most challenging cost-effectiveness metric. Cost-effectiveness analysis is generally not disaggregated by jurisdiction within the planning process. There is generally little if any difference between program performance between the Idaho and Washington jurisdictions. Cost-effectiveness is disaggregated by jurisdiction on a retrospective basis within the DSM Annual Report. AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION JURISDICTION: IDAHO DATE PREPARED: 0110212014 CASE NO: AVU-E-13-09/AVU-G-13-02 WITNESS: REQUESTER: IPUC Staff RESPONDER: Lori HermansonTYPE: Production Request DEPARTMENT: DSM Policy, Planning & Analysis REQUEST NO.: Staff-4l TELEPHONE: (509) 495-4658 REQUEST: Since the program does not appear to have been discontinued, please explain why most of the20l2 data was listed as"n/d'for the Non-residential Electric Premium Efficiency Motors program on page 56 of Exhibit 2, Schedule l. RESPONSE: The reason most of the 2012 data was listed as o'n/d' for the Non-residential Electric Premium Efficiency Motors program on page 56 of Exhibit 2, Schedule I is because in2012 there were no Idaho participants in this particular progam. AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION ruRISDICTION: IDAHO DATE PREPARED: 0110312014 CASE NO: AVU-E-I3-09/AVU-G-13-02 WITNESS: REQUESTER: IPUC Staff RESPONDER: Patrick LynchTYPE: Production Request DEPARTMENT: Energy Solutions REQUEST NO.: Staff-42 TELEPHONE: (509) 495-4246 REQUEST: Please provide Avista's demand-side management (DSM) organizational charts for 2010, 2011, and2012. RESPONSE: See Staff PR_42 Attachment A for the organizational charts for 2010, 20l l and 20L2. There are two charts for 2010 - one that shows the organization structure at the start of the year and one that reflects organizational changes made in the latter part of the year. 20ll and 2012 organizational charts are point-in-time charts that reflect the month in each year where changes occurred at the vice presidential level. u, , 8,:s: E.:tl3,f f.u !.!: ,p: oF(3(\ *o -J |r-tE -) I ot--J{rlo IJI.lfrla E TEF-oa-*rfi, .Nc$ C'}Lo a;Lotx{r,:,xofi >\ C'}t-o.-E ru i4icats6 p{t tqf*5 E tt a,!oiEE-,a:: r-.: t t e *' e ilg!;a''a, coEtogtNotto-cl(,o , ,. jii'iiu {nl!riteEE.}E.:i!!.t!Bri.3 = I E E,iE 6,' ir;gisEiafo"{- E.:T::::: i5: li I:l =lsf.iE 6 3i4.: j:..rii:l t,? r,5r€rrEtIf,8ETE!,!+E?s!EETE!';E!1, :-,.,-,,,,3 :, ::,:, , Ii. 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I ol-rJ {rlorJtr{r,a -(U ?LoIItlr,(u .NF (s ott-o aFLoII {r,rJ6a cr)Loe-lU I II II I I I I I!I II i I =- Ei:EEi{3 EiH€$gE$ r.:, I ii'ir I t;!II FEa 5: !i Egi r'i{$il : :-l i2:?i uI I I I I t I III I II I_*_._.1 5t.* I4,7!:5::{ r+iii E Et€86! !'tg!58-9: s !, .:: co Ecoo NoltL ulGa AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION JUzuSDICTION: IDAHO DATE PREPARED: 0110312013 CASE NO: AVU-E-I3-09/AVU-G-13-A2 WITNESS: REQUESTER: IPUC Staff RESPONDER: Lori HermansonTYPE: Production Request DEPARTMENT: DSM Policy, Planning & Analysis REQUESTNO.: Staff-47 TELEPHONE: (509) 495-4658 REQUEST: Please provide the "Best Practice Comparative Revief'memo delivered in February 2013. RESPONSE: Please see Staff PR_47 Attachments A and B for the "Best Practice Comparative Review" memo as well as Staff PR_47 Attachment C for an update done later in 2013. TI IF]Staff PR 47 Attachment A CADMI]S GROI.]P. INC, Date: November 27,2012 To: PPA and lmplementation Teams; Avista From: The Cadmus Evaluation Team Re: Energy-Efficiency Program Best Practice Comparative Review Findings This memorandum presents the results of Cadmus' residential and nonresidential comparative review of best practices in utility demand-side management (DSM) in North America. For this research, Cadmus explored the core process areas identified or cited in national best practice literature as key factors contributing to energy-efficiency program success, and assessed the extent of best practice adoption at six utilities, including Avista. This memo also includes examples of exemplary practices and, where possible, presents ideas of new and innovative program offerings for hard-to-reach markets. For nonresidential best practices, we explore policies and practices in: 1) program planning and management;2) trade ally networks; 3) marketing and outreach; 4) enrollment processes; and 5) evaluation, measurement, and verification (EM&V). For residential best practices, we provide information on: 1) program goal-setting; 2) program plaruring and design; and 3) progam implementation. This comparative review and assessment builds on findings from the program year 2010 and 201I process evaluations, and from Cadmus' experience with Avista's internal processes and energy-efficiency portfolio. For each best practice section, we identified the key findings and recommendations from the previous evaluations, and then highlighted the best practices for the topic area. While the information included in this memo was largely sourced from public reports, the intended audience for this research is Avista program managers, account managers, and the PPA team. The Cadmus Group, lnc. 720 SWWashington Street, Suite 400, Portland, OR 97205 c 5Q3.467.7110 o Fax 503.228.3696 An Employee-Owned Company e www.cadmusgroup.com Avista / October 2012 Staff_PR_47 Attachment A Page 2 of 60 The memo is organized as follows:mo rs otgantzeo as lollows: Methodology Best Practice Areas: Nonresidential Programs Best Practice Areas: Residential Programs Attachment A. Summary of Comparative Best Practice Review Recommendations Attachment B. Factors Included in Utility Scoring Attachment C. Organizational Structure of PPL Electric's Customer Programs and Services Group o Attachment D. Innovative Programs for Hard+o-Reach Markets 1. First, we identified the best practice research topics from program year 201 I and, where appropriate, progftrm year 2010 evaluations; 2. Next, we reviewed published literature by third-party experts, government agencies, and non-profi t organizations; 3. Then, we assessed the relevancy and applicability of the literatures' cited best practices to Avista's unique goals and circumstances; and 4. Lastly, we applied our expertise and knowledge of the utility sector to further develop best practices and recommendations. The list of best practices identified in this review is not comprehensive. The tables and discussions presented will provide Avista with ideas and inspiration for further steps toward improving their programs and processes. To benchmark Avista's performance in the best practices selected, Cadmus reviewed the energy- efficiency program offerings from five other utilities from across the country. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 o 5A3.467.7110 r Fax 503.228.3696 An Employee-Owned Company . www.cadmusgroup.com a a o a a Cadmus identified sector-specific best practices using the following approach: Avista / October 2012 Staff*PR*47 Attachment A Page 3 of 60 Cadmus used a variety of sources to create the best practice scores we included in the utility benchmarking tables. These sources included: o Utility and implementer Websites;o Annual reports and impact and process evaluation reports; ando Insight from professional relationships at Cadmus and at other utilities. The tables in this memo use to following notation, which make it easier to quickly identif a utility's activity in a given best practice area: o Dash (-): No activity;o Check minus (/'): Limited activity;o Check (/): Some activity; ando Check plus (r'): Significant activity. Generally, a checkmark indicates that the utility's approach aligns with nationally identified best practices or industry standards. A check plus indicates exceptional practice, while a check minus denotes that the utility has room for improvement or growth in the practice. A dash signifies that the utility does not have systems or processes in place to adopt the best practice. Utilities lncluded in Assessment Cadmus benchmarked the following utilities for our comparative review of best practices: o Dayton Power and Light (DP&L); o Pacific Power Washington (Pacific Power); o Puget Sound Energy (PSE); o Xcel Energy Colorado (Xcel Energy); and o Pennsylvania Power and Light Electric Company (PPL Electric). Table I provides key performance metrics for the utilities included in this comparative assessment. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 o 5A3.467.7110 o Fax 503.228.3696 An Employee-Owned Company o www.cadmusgroup.com Avista I Oclober 2A12 Staff_PR_47 Attachment A Page 4 of 60 Table 1. Key Performance Metrics of Utilities Included in Comparative Assessment IgliIIi rRYl&:,it" fd;;.{?tt:#,{ ' if:l* *ii'34, r" i:i " :-r j ffi1ff#'}ffi1#ffi !.Iriir i#m#ryll;:,,,,;i"l.i" ;:.:.'' t: ";t Dollars Budgeted for Nonresidential Proqrams $13,330,01 1 $22,644,511 $3,96't,821 $43,884,323 $36,292,083 $39,133,000 Verified Savings from Sector (Gross kWh)97,087,824 107,687,098 21,214,000 165,658,787 1 79,143,31 3 175,771,000 Dollars Spent per kWh Saved $0.14 $0.21 $0.1 I $0,26 $0.20 $0.22 Overall CoslEffectiveness (TRC) for Nonresidential Proorams (Electric) 2.3*1.46 Unavailable 3.1 I 2.64 1.73* .RifSiddlrtibl+dr r re:ri , " .,J"r,.T%,', .E,,i.flili-#,{"d,rr$;.1''{lril;,',:; 1'1i1i; Dollars Budgeted for Residential Programs $6,846,443 $15,948,708 $2,742,024 $36,1 80,009 $29,341,274 $13,042,000 Verified Savings from Sector (Gross kWh)43,173,405 54,150,130 14,480,000 103,686,901 '109,612,139 205,223,000 Dollars Spent per kWh Saved $0.1 6 $0.29 $0.1 e $0.35 $0.27 $0.06 Overall Cost-Effectiveness (TRC) for Residential Programs (Electric) 1.15 2.22 Unavailable 2.55 4.67 1.73', Note: Cadmus obtained these metrics from annual or EM&V reports published in 2010, 2011 , and 2012. * These numbers reflect portfolio-level data. Program Planning and Management Best Practices In order to reach more end-users, utilities are designing their commercial and industrial (C&I) energy-efficiency portfolios to be broader, more comprehensive, and more complex. Knowledge of program planning and management best practices can help managers prepare for this ever- changing marketplace and anticipate future implementation challenges. This section explores the following approaches (summarized in Table 2): o Developing a comprehensive program implementation plan that details design, theory, and internal operations;. Utilizing a third-party implementer to provide cost-effective, turnkey program administration and technical support; ando Proactively addressing market barriers by testing new technologies and delivery mechanisms for hard-to-reach market segments. The Cadmus Group, lnc. 720 SWWashington Street, Suite400, Portland, OR 97205 o 503.467.7110. Fax 503.228.3696 An Employee-Owned Company e www.cadmusgroup.com Avista / October 2012 Staff_PR_47 Attachment A Page 5 of 60 Table 2. Program Planning and Management Comparison Table key: - = no activity; /- = limited activity; / = some activity; /+ = slgnllrrnt activity. Have a program implementation and Develop a Comprehensive Program lmplementation Plan that Details Program Design, Strategies, and Operation Processes Finding: Avista recently developed a program manual that includes a high-level overview of the nonresidential programs. However, the document lacks detailed operational guidance. Recommendation: Due to the nonresidential program complexity and limited procedural documentation, Cadmus recommends that Avista continue to expand the program manual to include an operations plan that provides detailed guidance on internal policies and procedures. By developing an implementation plan that includes a program theory, Avista will ensure that program managers, implementers, account executives, and EM&V staff share an understanding of what the program seeks to accomplish. A clearly articulated implementation plan may include program goals, a strategic approach, and program requirements. Ideally, the implementation plan will also include operational guidance for internal audiences that clearly define staff roles, policies, and procedures. This operational guide will also serve as a valuable roadmap for maintaining a clear outline of responsibilities and communication, which is a best practice identified by the California Best Practices Project Advisory Committee.r Cadmus included PPL Electric's organizational chart as Attachment C, which outlines the roles and responsibilities for their energy-efficiency programs, and may serve as a helpful example to Avista. Quantum Consulting. National Energt Eficiency Best Practices Study, Volume NR5 - Non-Residential Large Comprehensive Incentive Programs Best Practices Report. December 2004. Available online at: http ://www.eebesrpractices.com/pdf/BP_NR5.PDF. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 . 503.467 .7110 + Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com Avista I Oclober 2A12 Staff_PR_47 Attachment A Page 6 of 60 Utilize Third-Party lmplementer Expertise to Provide Cost-Effective, Turnkey Program Administration and Technical Support Finding: Avista's program managers reported experiencing time constraints when managing the daily operations of programs. Account executives noted that customer assistance to Site Specific Program participants consumes as much as 50oh of their work week. Currently, the EnergySmart Grocer Program, operated by Portland Energy Conservation Inc. (PECI) is Avista's only C&I program that is delivered by a third- party implementer, while Avista staff are responsible for all planning, implementing, and operating the Site Specific and Prescriptive programs. Recommendation: In order to maximize program effectiveness and meet the evolving regulatory compliance targets, Avista should evaluate the costs and benefits of contracting with a third-party implementer to assist with the Site Specific and Prescriptive programs' offerings. Successful DSM programs often provide a full menu of services to the customer, which includes incentives as well as marketing opportunities, technical assistance, training, and education.2 With the growing need for these services, it is common practice for utilities to obtain the services of a third-party implementer due to limited in-house capacity and resources. In their second national review of exemplary energy-efficiency programs, the American Council for an Energy-Efficient Economy (ACEEE) identified collaboration with third-party program administrators as a successful management approach to "leverage resources and reach broader oreos" among the reasons and benef,rts of using third-party implementers.3 York, Dan, M. Kushler, and P. Witte, American Council for an Energy-Effrcient Economy. Compendium of Champions: Chronicling Exemplary Energt Efliciency Programsfrom Across the U.S. Report Number U081. February 2008. Available online at: www.aceee.org/sites/default/filesipublications/researchreportsfu0S l.pdf rbid. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 o 503.467.7110 . Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com PR_47 Attachment A Page 7 of 60 Proactively Address Market Barriers by Testing lnnovative Delivery Channels for Hard-to-Reach Market Segments Finding: Avista has experience piloting C&I programs at the measure level (e.g., HVAC Rooftop Maintenance and Pullman Smart Grid Pilot), but may be missing opportunities to reach small customers and leased facilities due to limited program structures or delivery mechanisms. Recommendation : Avista should explore delivery mechanism pilot programs for hard-to-reach markets, such as leased facilities or small businesses. This could be conducted on a limited time basis, or be offered to a limited number of participants. Successful DSM portfolios have a history of providing programs that change over time in order to accommodate the market and the introduction of new technologies.a In recent years, it has become more common for utilities to develop specific delivery channels to address the unique challenges and circumstances of various customer groups. Two examples of innovative program delivery are discussed in Attachment D: 1) programs directed at commercial building owners to overcome the tenant-landlord split incentive, and 2) programs that offer financing for small business customers. Staff_ Avista I Oclober 2A12 Trade Ally Network Best Practices Growing and maintaining a robust network of reliable trade allies is a strategic investment that can alleviate administrative tasks, enhance customer experience, and improve marketing and progftrm awareness.s The Energy Trust of Oregon describes trade allies as"valued ambassadors in the field," because they often serve as the face of the utility through extensive interaction with U.S. Environmental Protection Agency and U.S. Department of Energy. National Action Planfor Energt Efficiency. Chapter 6: Energy Efficiency Program Best Practices.2007. Available online at: hffp://wrvw. epa. gov/cleanenergy/documents/suca/napee-chap6.pdf. Quantum Consulting, 2004. The Cadmus Group, lnc. 720 SWWashington Street, Suite 400, Portland, OR 97205 . 503.467.7'110 . Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com Avista / October 2012 Staff_PR_47 Attachment A Page I of 60 customers. Cadmus' best practice review revealed that engaging the trade ally community is critical for utility program success.6 The best practice approaches to building a trade ally network, which are highlighted in Table 3 and the following text, include: o Developing a formalized trade ally network that entails a simple screening and registration process;o Including a dedicated section for trade allies on the utility Website, with resources; and. Keeping trade allies well informed of the program offerings, changes, and processes through regular communication and education and training opportunities. Table 3. Trade Ally Network Comparison Develop a Formalized Trade Ally Network that Entails a Simple Screening and Registration Process Finding: While Avista leverages the Northwest Trade Ally Network (TAN) for informing commercial lighting contractors about program opportunities, it lacks a formal trade-ally network for contractors and vendors. Recommendation: Avista should establish a formal trade ally network for contractors and vendors, and encourage registration through network meetings and an application process. By requesting that trade allies register, Avista could gather more information about their service areas, expertise, certifications, and other valuable information. The trade ally registration would facilitate the development of an active group of motivated market actors. Hartwell, Ray and R. Spring. Leveraging a Regional Trade Ally Network to Help Vendors and Customers Connecl with Varied Utility Efriciency Programs across Multiple, Closely-Packed Service Territories. ACEEE Proceedings. 2010. Available online at: http://www.aceee.ore/files/proceedines/2010/data/papers/2088.pdf. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 ; 503.467 ,71 10 r Fax 503.228.3696 An Employee-Owned Company . www.cadmusgroup.com Table 3. Trade Ally Table key: - = no activity; /- = limited activity; / = some activity; /+ = significant activity. Develop a formalized network with lnclude a dedicated Website section for trade allies Keep trade allies informed through regular communication and education Avista / October 2012 Staff_PR*47 Attachment A Page 9 of 60 At a minimum, utility programs should facilitate basic participation in a trade-ally network, which provides the following core benefits:' o Ensures that the trade ally community is familiar with program processes and technical specifications;o Allows the utility to closely collaborate with trade allies for program marketing and promotion; o Provides opportunities for trade allies to facilitate technical and administrative assistance for customers; and o Enhances the utility's knowledge of the trade allies, the specific markets they serve, and any barriers to new opportunities for participation. Formalizing the trade ally registration process, including screening applications or participation agreements, can serve the dual purposes of protecting utilities against possible liabilities and ensuring the contractors hold the proper insurance, certifications, and legal requirements to perform their services. See Attachment E for an example of an E-Power Trade Ally Application from PPL Electric. Three major clauses in the agreement serve to protect the utility from liability (paraphrased here): 1. The Trade Ally agrees that it is not a contractor, subcontractor, or agent of PPL, and as such PPL shall have no liability for claims of any kind for loss or damage. 2. The Trade Ally agrees that it will not refer to PPL in its own advertising or publications, without prior approval. 3. The Trade Ally acknowledges that its participation in the program is in no way an endorsement by PPL of the company's work. lnclude a Dedicated Trade Ally Section on the Utility Website with Resources and Participation G u idelines Finding: Avista's Website currently lacks resources designed specifically for trade allies, and does not contain information and guidance for new trade allies to sign up to receive program updates and information. Recommendation: Consider adding a designated section for trade allies to the current business Webpage. Trade ally Webpages typically provide detailed program information and resources, such as rebate forms, newsletters, program-specific factsheets, and frequently-asked questions (FAQs) about the participation process. This dedicated Webpage can provide a one-stop-shop for information about the program. Many utilities include archived workshop presentations and technical Webinars, as well as information or links that facilitate easy onboarding and registration. ' lbid. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 c 503.467.7110 o Fax 503.228.3696 An Employee-Owned Company o www.cadmusgroup.com Staff PR 47 Attachment A Avista / October 2012 *fgo-e_l"q-9100 In addition, these Websites often provide a customer section that lists the qualified contractors or participating trade allies. All of the benchmarked utilities had a dedicated section for trade allies on their Website. Pacific Power's business Webpage provides an example of a dedicated trade ally Webpage with comprehensive resources (http://www.pacifispower.net/bus/se/vendors.html). Keep Trade Allies Well lnformed Through Regular Communication and Education and Training Opportunities Finding: Avista has developed and maintains a mailing list of contractors and vendors, which it uses to inform trade allies of energy-efficiency program opportunities, changes, or upcoming events. Avista also sponsors periodic technical training sessions for trade allies who are interested in learning more about energy-efficiency programs through the TAN, recently began hosting power breakfasts for customers and trade allies to learn more about available energy- efficiency rebates, and offers focus groups for lighting contractors. Recommendation: Avista should continue expanding its current outreach activities with trade allies by providing more frequent communication; hosting in-person trainings on program elements such as eligibility requirements, application processes, and qualifying measures; and providing assistance with customer promotional efforts. It is important to provide ongoing outreach and offer training opportunities for trade allies, particularly those that work with customers directly to install equipment or promote programs. Providing these market actors with technical details and periodic program updates will ensure that they only communicate the most up-to-date information to the customer. Having more knowledge about rebate programs may also enhance the trade allies likelihood to discuss these types of programs with the end-user.8 8 QuantumConsulting,2004. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 c 503.467 .7110 r Fax 503.228.3696 An Employee-Owned Company . www.cadmusgroup.com Avista / October 2012 Staff_PR_47 Attachment A Page 11 of60 Marketing and Outreach Best Practices In delivering DSM programs, successful marketing can be accomplished through various avenues while promoting rebate programs, leveraging utility brand recognition, and communicating cost-savings and other benefits of energy efficiency.e The following outreach best practices are outlined in Table 4, and highlighted for their effectiveness in reaching business customers: Including easy-to-find program descriptions on the Website, including benefits for participants and customer testimonials; Using direct outreach, where cost-effective, to identifu customer-specific issues and build relationships; and Leveraging trade allies to promote programs. lnclude Easy-to-Find Program lnformation on the Website, lncluding Benefits for Participants and Gustomer Testimonials Finding: Avista provides a comprehensive list of rebates and incentives for C&I customers on their Website, as well as numerous customer case-sfudies and testimonials. Avista's marketing team has been updating the energy efficiency program Website and finding ways to make the information more user friendly for business customers. Recommendation: Continue ways to make the business rebates Webpage more user friendly for C&I customers, such as by including it as a stand-alone subheading on the Energt Savings drop- down menu, or by making the link for Efficiency Avenue more prominent. Additionally, Avista should consider making cost-saving information available by measure, to help make the business case for energy efficiency. Xcel Energy's program brochure for its rooftop air conditioner rebate (shown in Spotlight section) provides a good example of communicating the business case. ' U.S. EPA and U.s. DOE,2007. Table 4. Marketing and Outreach Comparison Table key: - = no activity; /- = limited activity; / = some activity; /+ = significant activity. Use direct outreach by account executives, where costeffective The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 o 503.467.7 '110 . Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com Avista / October 2012 Staff_PR*47 Attachment A Page '12 of 60 While nonresidential customers typically respond to tailored marketing approaches, utilities should not underestimate the importance of Website content and message development. Large C&I customers tend to be well-informed, so driving prospective participants to a program Website while minimizing investments in traditional advertising can be effective.l0 A well-designed Website should also showcase business testimonials and emphasize cost savings: two important tactics for reaching business customers.l I Use Direct Outreach, Where Cost- Effective, to Address Customer-Specifi c lssues and Build Relationships Finding: Avista emphasizes direct outreach with customers through e-mails, phone calls, and personal visits from account executives on a regular basis. Program staffreported that a number of efforts are additionally underway to inform customers about the utility offerings, such as face-to-face meetings, focus groups, breakfast meetings, and other featured events. Of the benchmarked utilities in this memo, Avista is one of only two that lists account executives by name and region on their Website, and that consistently encourages business customers to contact their representative with questions about the rebate or the application process. Recommendation: Continue to encourage direct contact between program staff, account executives, customers, and trade allies, where cost-effective. Personal marketing and direct outreach offer the opportunity to tailor program promotion to specific business challenges or contexts.l2 This type of outreach is especially cost-effective for large C&I customers that have a significant potential for energy savings, and offers the added benefit of high customer satisfaction and, in some cases, repeat participation. ro Quantum Consulting,2004.rr lbid.12 lbid. liletime sa$irgs you cer see lor yoursell How much you'll save by choosing an energy-effici ent air condit i0ner over standard equipment reallyadds up. You waste thousands of dollars by choosing the least-expensive unit at purchase time. 10 t*n 15 tnft Eoofrop AG size ffirr*rn !Wrrmx lrsrr.x program staff, account The Cadmus Group, lnc. 720 SWWashington Street, Suite 400, Portland, OR 97205 o 503.467.7110 r Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com Staff_PR_47 Attachment A Page 13 of60Avista / October 2012 Leverage Trade Allies to Promote Programs Finding: In 201l,37oh of Avista's Site Specific and Prescriptive programs' participants reported leaming about the programs from a trade ally (as compared to just l5%o of participants in 2010). While more of Avista's business customers are now reporting that they are learning about the programs through trade allies than in years past, contractors are not consistently promoting the program, particularly lighting contractors. For benchmarked utilities in this memo, between 50% and 55o/o of commercial customers reported leaming about the program from a trade ally (Figure 1). Figure 1. Percentage of Commercial Customers Hearing About Programs from Trade Recommendation: Avista should consider formalizing their trade ally network in order to empower them to be more effective program messengers. Avista may also consider developing a marketing plan that includes specific channels for outreach through trade allies and identifies events and strategies to disseminate information to contractors. Through trade ally focus groups, regular meetings, and short surveys, Avista could gathe.r-more information about trade ally service areas, specialization, and business associations.'' Feedback gathered would also enable Avista to identifr where to market the program, and how to assist trade allies with promoting the program. Marketing utility efficiency programs through trade allies is widely accepted as an effective way to increasL participation.la Under this approach, the trade allies may constitute much of the on- 13 Cadmus' upcoming trade ally panel study will provide an excellent opportunity to begin this research.14 Quantum Consulting, 2004. 60% 55% 50% 45% 40% 35o/o 30% 25% 20o/o 15% 10% The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 . 503.467.7110 . Fax 503.228.3696 An Employee-Owned Company . www.cadmusgroup.com Avista / October 2012 Staff_PR*47 Attachment A Page 14 of60 the-ground marketing presence for the program, which is a natural role for them because their businesses benefit from utility rebates and incentives for energy-efficient equipment.ls Enrollment Process Best Practices Enrollment process best practices incorporate efficient approaches from the utility and customer perspectives. Employing best practices in this area can streamline progftrm delivery, improve customer satisfaction, and facilitate evaluation activities. For nonresidential programs, this section explores the following enrollment processes, listed in Table 5: o Ensuring that participation procedures and eligibility are clearly defined, documentation requirements are reasonable, and forms are understandable; o Providing technical services as part of site-specific or custom program offerings, in the form of an energy assessment, audit, baseline study, or technical study, and o Integrating all fields on application forms, tracking databases, and extract databases to provide complete and consistent data. Ensure that Participation Procedures and Eligibility are Clearly Defined, Documentation Requirement,s are Reasonable, and Forms are Understandable Finding: Avista's prescriptive rebate enrollment processes are fairly straightforward, with easy- to-find eligibility requirements and downloadable applications available on the Website. The Site Specific Program Webpage lacks information regarding eligibility and enrollment guidelines, and applications are not available. Some participants have indicated dissatisfaction with cumbersome application processes and long approval times. r5 Hartwell and Spring,20l0. Table 5. Enrollment Process Comparison Table key: - = no activity; /- = limited activity; / = some activity; /+ = significant activity. Ensure a clearly defined and reasonable Provide technical services for site-specific The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 . 503.467.7110 . Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com Staff PR 47 Attachment A Avista / October 2012 Page 15 of 60 Recommendation: Consider ways to streamline the Site Specific Program enrollment processes and manage customer expectations. Avista's Web content could be improved to provide customers with a sample application that includes enrollment processes, requirements, and eligibility guidelines. Consider including guidelines in the form of an FAQ. Making these processes more transparent may help manage participant expectations regarding approval and rebate timing. DP&L's Website information, summarized below, may serve as a helpful template. The National Action Plan for Energy Efficiency advises utilities to provide clear directions and sufficient information, while collecting only the minimum necessary data from customers to inform energy savings calculations and EM&V efforts. This is because onerous or confusing participation rules, procedures, and paperwork can be a major deterrent to participation.'o Additionally, a progftrm that potentially delays equipment installation will have fewer participants. For example, one of the benchmarked utilities had a high partial participation rate, and approximately 20%o of partial participants that dropped out of the program went on to complete their projects, indicating that challenges with processing and approval time outweighed incentive amounts. EPA and U.S. DOE,2007. DP&L reviews the applicatioin and verifies the intOrmatioi,pirovided.We reserue the rightto conduct an audit of your existing eQuipmenit (the baseline) and/orthe'facility DP&L approves or denies the application. We wilt attempt to notify you of our decision in writing within 14 days. lf the.application is approuedt your fuhds will,be reserved. Yoi proiide us with proof of purchatie otr intent to purchase within 60days.:ihis may Come in,the fo;rmi of an inioic€, pturchase order or'other,'supbofting doCumCinl : You complete your project instatlation within 120 days of application approval and notify us. You must provide a final, itemized invoice reflecting the true costs of purchasing and inStaiiling the energy-savings measuro,(ihcluydihg:all matCrials,labo;r, and equipment discounts) as,,well as equipnent,.serial numbers; lf thC,'in51"11".r,on does not occur within 120 days, you must request an ertension. Extension approvals witl be granted on a case-by:case basis. ' We release yoir funds to you withii,30 days,,DiP&L reserves the,,rightto; inspgitthe system(s) prior to releasing any funds to ensure compliance with the program Terms ind Conditions. : :, The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 e 503.467.71 '10 r Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com Avista / October 2012 Staff_PR*47 Attachment A Page 16 of60 Provide Technical Services for Site Specific or Custom Program Offerings in the Form of an Energy Assessment, Audit, Baseline Study, or Technical Study Finding: Avista has dedicated engineers on staff who provide technical assistance for some site- specific projects, but may benefit from a more formalized approach to this service in order to help businesses identi$ custom energy-effrciency solutions. Avista staff indicated that approximately 20o/o of Site Specific Program projects receive a facility scoping audit. Recommendation: Avista should explore the possibility of developing a formal technical service component for the Site Specific Program. This component could help to address market barriers businesses typically encounter, such as a lack ofstaffresources and technical expertise. It could also uncover new opportunities for savings, as opposed to waiting to conduct a facility audit after the customer has applied for a Site Specific Program rebate. Across the benchmarked utilities, custom rebate programs are often accompanied by technical services, which come in the form of incentives or as a free service and are used to assess baseline energy performance and identify new opportunities for capturing energy savings. By offering technical services, utilities can help customers uncover equipment or system upgrade options that they may not have otherwise identified, and possibly drive enrollment in both site specific and prescriptive programs. Most of the benchmarked utilities provide technical assistance, but to varying degrees. Table 6 summarizes the benchmarked utilities' different incentive structures and provides information about how they incorporate technical services into custom programs. Table 6. Technical Assistance Incentive Structures Provides vendor-neutral energy analysis for custom projects to identify opportunities and quantify Engineers review energy consumption at the customer's facility and assess cost-effective Customer cost capped at $300 for audits and 25% of the cost of Rebates for comprehensive energy audits, as well as offering for in- Rebates for Technical Energy Audits (TEAs) and for installing energy- saving measures identified through those studies, Covers 50% of the cost of the TEA plus performance rebates of $250/kW reduced after installation Rebates for eligible facilities to receive technical studies as part of a custom project or as a stand-alone rebate. Covers up to 100% ofthe technical study if recommended measures are installed; 50% as stand-alone The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 o 5A3.467.7110 r Fax 503.228.3696 An Employee-Owned Company + www.cadmusgroup.com Avista I October 2A12 Staff_PR_47 Attachment A Page 17 of60 lntegrate Fields on Application Forms and Tracking Databases, and Extract Database Services to lncorporate Complete and Consistent Data Finding: Although Avista has made improvements to some of their data tracking systems, the participant and tracking databases still exhibit a lack of integration. Also, certain data for nonresidential programs are reported inconsistently, or are not tracked. Recommendation: Avista should ensure that data are consistently tracked, and continue to develop an integrated customer information system and program database to reduce errors and improve quality control. A well-designed tracking system should collect the information needed for successful program implementation and evaluation. Best practice research suggests that program tracking systems should include, at a minimum: a unique customer identifier; measure information such as equipment type, size, quantity, and efficiency level; and program activities with dates and costs. l7 Further, analyses are aided by having a single integrated database, which ideally is linked with other appropriate systems, such as cross-program databases, customer information systems (CIS) and marketing or customer relationship management systems.ld Integrating data in this way provides program managers and evaluators with the opportunity to identify trends and proactively address tracking or prognrm design issues in a timely fashion. PPL Electric's Energy Efficiency Management Information System (EEMIS) database provides an example of an integrated tracking database. '' 17 l8 l9 Quantum Consulting, 2004. See: PPL Electric and The Cadmus Group, lnc. PY2 Finql Annual Report to the Pennsylvania Public Utility Commission. November 15, 201 I (Corrected). Available online at: http :/,'www.pplelectric.comA.{R/rdonlyres/AAA DC5 05 -0C80-482 8-83 04- I 3 8 1 90FDD I D2I0/PPL PY2_Annual-Report_con'ected.pdf. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 . 503.467.7110 . Fax 503.228.3696 An Employee-Owned Company + www.cadmusgroup.com Staff PR_47 Attachment A Page 18 of60Avista / October 2012 Evaluation, Measurement, and Verification Best Practices Evaluations enable an ongoing feedback mechanism between program staff, market actors, and evaluators. This feedback then helps program implementers to make timely program improvements. Best practices reviewed in this area are summarized in Table 7 and include: o Conducting regular pre- and post-inspections for projects with highly uncertain baseline conditions, particularly large projects. o Conducting process and impact evaluations routinely.o Measuring freeridership and spillover in order to gather information about market impacts, and used to adjust target populations or eligibility as necessary. Table 7. Evaluation, Measurement, and Verification Comparison Conduct Regular Pre- and Post-lnspections for Projects with Highly Uncertain Baseline Conditions, Particularly Large Projects. Finding: Avista's pre- and post-inspection requirements vary by program. Avista requires pre- installation inspections for all EnergySmart Grocer Program projects. For Site Specific Program projects, Avista determines whether to conduct a pre'inspection based on risk, and conducts facility audits approximately 20%o of the time. However, all Site Specific Program projects require a post-inspection. Prescriptive Program projects have no specific requirements for pre- inspections, and Avista conducts post-inspections for projects with a perceived high risk (e.g., projects with new trade allies). Recommendation: To ensure a more transparent approach, Avista should consider clearly defining and documenting its pre- and post-inspection policies and procedures. For example, this could include determining a sampling approach to ensure a more rigorous methodology to Site Specific Program project pre-inspections, or establishing a size parameter based on kWh for Prescriptive Program projects to determine whether pre- and post-inspections are necessary. For site specific or custom projects, savings cannot always be accurately estimated on an ex post basis.20 Pre-inspections will often be necessary to develop a baseline of energy usage, allowing the evaluators to report reliable savings once the project is complete. Projects that involve measures such as compressed air, industrial process retrofits, or system upgrades in particular Quantum Consulting, 2004. Conduct regular pre- and poslinspections of Table key: - = no activity; /- = limited activity; / = some activity; /+ = significant activity. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 o 503.467.7 '110 + Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com Avista / October 2012 Staff_PR_47 Attachment A Page 19 of60 may have varying baselines and savings, and,post-inspections should be conducted on a routine basis for a random sample of these projects.'' Gonduct Process and lmpact Evaluations Routinely Finding: Avista is one of three utilities identified in this best practice review that conduct both process and impact evaluations annually on a portfolio-wide basis. Furthermore, Avista has internal EM&V capacity in their engineering staffand the Policy Planning and Analysis team. Recommendation: Avista should continue conducting routine evaluations, in which it staggers process and impact tasks to enable the incorporation of results on a relatively real-time basis. Avista should also continue to leverage internal EM&V capacity to inform program implementation decisions as needed. Best practice research strongly recommends routine evaluations of C&I programs to monitor market trends while also allowing for continuous improvement of program design and delivery.22 Overall, the benchmarked utilities tend to conduct evaluations on a semi-regular basis, with varied timing. Measure Freeridership and Spillover in Order to Gather lnformation About Market lmpacts and to Adjust Target Populations or Eligibility as Necessary Finding: Avista recently began assessing freeridership and spillover in response to an MOU with Idaho Public Utility Commission staff. Avista updates these assessments when necessary and reasonable during ongoing portfolio-level process and impact evaluations. Recommendation: Avista should continue monitoring freeridership and spillover estimations during routine evaluations. Although measuring freeridership and spillover can be challenging, critical knowledge about program effectiveness can be gained through these analyses. Best practice research recommends including freeridership and spillover estimations in program evaluations.'3 Eren where calculating and reporting a net-to-gross ratio is not a regulatory requirement, understanding the market effects will help program staff and implementers modify the program design to avoid freeriders. 2t 22 23 Ibid. Quantum Consulting, 2004; U.S. EPA and U.S. DOE, 2007. Quantum Consulting, 2004. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 o 503.467 .71 10 . Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com Avista I Oclober 2012 Staff_PR*47 Attachment A Page 20 of 60 Program Goal-Setting Energy-efficiency portfolio goals are critical for guiding dayto-day program activities and longer term expected outcomes. Goals and goal setting are commonly explored topics in energy- efficiency program best practice literature.'" This section explores the key goal-setting best practice: Have well documented and articulated goals. The results of our comparative review for this best practice are surrmarized in Table 8. Best Practice: Have Well Documented and Articulated Goals Finding: Avista's Planning, Policy and Analysis (PPA) team outlines energy-efficiency program plans and objectives in an annual DSM business plan. The plan summarizes business planning developments, supporting efforts (e.g., program outreach), and issues identified in the previous year for management focus. This document is accompanied by various other supporting materials developed or commissioned by the PPA team that address program offerings, implementation, and management. These supporting materials include conservation reports, EM&V plans, and an intemal implementation manual. The intended audience for these materials is utility staff, stakeholders, and commission staff, not customers. Avista's progfttm planning and operation documents are robust, focusing on program impacts (energy savings) and cost-effectiveness. These materials are consistent with Washington's I-937 requirements, and also take into account Avista's integrated resource planning, changes in avoided costs, and some market transformation activities such as the regional efforts conducted by NEEA. Despite these strengths, the planning materials do not give strong attention to the market transformation effects of Avista's portfolio of programs, nor to goals related to program processes. Objectives cited in the benchmarked utilities' planning materials include: o Markettransformation,. Improved system reliability, o Reduced customer bills, Itron, Inc. Nqtional Energt Efficiency Best Practices Study, Volume P l-Portfulio Best Practices Report. p. l- 41. July 2008. Available online at: http://rvwrv.eebestoractices.com/pdflPortfolio_BP_Report.pdf; KEMA. National Action Planfor Energt Efficiency. Chapter 6,p.6-28. July 2006. Available online at: hffp ://wrv w. epa. gov/cleanenergy/doc uments/s uca/n apee_report.pdf. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 c 503.467.7110 + Fax 503.228.3696 An Employee-Owned Compan y o www. cadmusg roup. com Table 8. Goals and Objectives Table key: - = no activity; /- = limited activity; / = Some activity; /+ = significant activity, Avista / October 2012 Staff*PR_47 Attachment A Page 21 of 60 o Environmental goals, o Renewable energy goals, o Addressing underserved markets o Low-incomeaffordability, o Economic development, and. Improved customer quality of life. Further, the focus of Avista's documents is high-level, and therefore generally fails to provide information on day-to-day program implementation processes. Successful program implementation and management requires specific and clearly articulated targets against which to compare program performance. Tracked metrics should align with overarching utility goals. For example, a utility interested in increasing its JD Power and Associates rating should track customer satisfaction in energy-efficiency programs. These goals will serve as a roadmap for ongoing program management and development, and will inform program evaluation. Further, some utilities have had success using energy-efficiency activities and goals as a prominent feature on their Website and marketing materials. Recommendation: Avista should carefully document its impact and process goals, and disseminate them widely throughout the implementation team and stakeholders. Avista should encourage implementation staff to take ownership of setting and achieving goals. These goals should be revisited frequently and revised, when possible, to reflect changing market conditions and issues identified through program implementation and evaluation. Watch your progress tn !0 1 1. .,vilh r..sur hBlp, PUSEI S'rund En erqf s Bnergy-elicie ncy programs saued enouglr sledricityto power mors ihsn 31,20[ hcr]ies and natural oas t0 heat moro than 6.8C0 homes-\ray t0 gol Ever? t{,vo y?ars, the energr-efiiciency prograns set new goals ls rsach a dEler,'ninsd number 0f cost efiective l.,uJh and tnerm gavings: watci the nu|rllers grow throuqhout ?012. The Lhartt0 the right rep.esents the ?0 12 sne-/ear E03[ Bnd the prs$ress tc$varc reauhing lhe 9031. Electric energy+ffi ciency programs ' 2012 qoal 336.5ss,B87 kwh . Percenl of goal reachec: EC.g% , En0uqh Bl8ctricit' sauin$s t0 p0wer si!0ui'17,751 honies I'latural gas ercrgy€mci€acy r.ograms* 2012 0o;rl. 4,077.{l5 lhernrs. PEr|:Bnl Bt goal reached: .15.4% . Enough natural gas sai,'ings to he3t more than 3,598 homes Chert rpd,ilEd S6ptembcr 2412 u 0Crii{IEos{:0i. E eaar (9 $I oN O rnvE ""'" e9lts0 503.228.3696 Avista I October 2012 Staff_PR_47 Attachment A Page 22 of 60 Program Planning and Design Program planning should follow a well-structured and data-driven approach. A commonly-cited national best practice study2s notes the following possible benefits: o "Consistent development of the overall portfolio and underlying program plans, including goals, incentive levels, and other program attributes;o Well-designed programs incorporating industry best practices, market and technologt research, and inputfrom key stakeholders (such as trade allies);o Stakeholder buy-in (if a collaborative process is used); ando Quantitative and qualitative benchmarlrs to monitor program performance against." The following progam planning and design best practices are most appropriate for Avista: o Conduct baseline research and market assessments;. Develop complementary programs; ando Develop programs and measure offerings that target energy-saving potential in all major market segments. Table 9 provides a summary of our benchmarking frndings for these best practices. Conduct Baseline Research and Market Assessments Finding: Avista has consistently shown a strong commitment to baseline research and market assessments. Avista has several full-time program planning staff, who also function as liaisons between program implementation staff, stakeholders, and third-party evaluators. In recent years, Avista has contracted several independent studies, and used findings from these studies to inform their program planning. Recent examples include: l) an in-depth self-report Net-To-Gross study, 2) regular updates to their Technical Reference Manual (TRM), and 3) an assessment of energy- efficiency potential (potential study) in their service area. 25 Ihon, Inc.2008. Table 9. Program Planning and Design Table key: - = no activity; /- = limited activity; / = some activity; /+ = signifisgnt activity. Develop programs and measure offerings that target energy-saving potential in all major market segments and equipment The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 . 503.467.7110 r Fax 503.228.3696 An Employee-Owned Company I www.cadmusgroup.com Avista / October 2012 Staff*PR*47 Attachment A Page 23 of 60 Recommendation: As current market conditions continue changing, Avista should maintain its commitment to regular baseline research and market assessment. Regular baseline research will provide necessary information for successful program planning, goal-setting, and establishing credibility with stakeholders. Further, this work will help ensure accurate energy savings and cost-effectiveness calculations. A review ofliterature26 indicates that baseline research should focus on: Quantity, saturation, and characteristics of installed equipment; Energy consumptions; Load shapes; Market trends; Energy-efficiency behavior; and Customer beliefs and decision-making. Itron, Inc. 2008; KEMA,2006, p. 6-30 and 6-43;and Pacific Gas and Electric Company. Best Practices Benchmarkingfor Energt Effieiency Programs: BP Self Benchmarking Tool. Available online at: http://ww w. eebeslpractices.comfu enchm arkins.asp. a a a o o a The Cadmus Group, lnc. 720 SWWashington Street, Suite 400, Portland, OR 97205 . 503.467.7110 r Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com Staff_PR_47 Attachment A Page 24 of 60Avista / October 2012 Market assessments inform program planning and implementation. The literature suggests that the data obtained through these practices should address: Who the market actors are (and who should be targeted by the program); What the barriers are to increased adoption of energy-efficient equipment; and Strategies and approaches for addressing market barriers. Develop Complementary Programs Finding: Avista maintains a well-developed and implemented program planning process. However, a review of program materials suggests that program planning does not include an a a a emphasis on developing complementary programs. For example, along with considering wholly new program and measure designs, Avista should consider adding measures that can be conveniently bundled with existing offerings. DP&L is an example of a utility leveraging an existing program. To capture additional savings in its Equipment Prescriptive HVAC Rebate Program, DP&L had the program implementer identify the program's top performing contractors and personally invite them to participate in the new residential HVAC Tune-Up Program. DP&L was able to expand its program offerings with little additional, administration, market research, or contracting expenses. Recommendation: To reduce implementation costs and leverage existing implementation resources (e.g., trade ally network, marketing, technical skills of implementation staff), Avista should consider the complementariness of program and measure offerings during planning. Avista should highlight the complementariness of program and measure offerings in program messaging, marketing material, and The Cadmus Group, lnc. 720 SWWashington Street, Suite400, Portland, OR 97205 c 503.467.7110 o Fax 503.228.3696 An Employee-Owned Company o www.cadmusgroup.com Avista I Oclober 2012 Staff_PR_47 Attach ment A Page 25 of 60 application forms. This will ensure that customers installing one measure are made aware of additional timely opportunities from the utility.2T Develop Programs and Measure Offerings that Target Energy-Saving Potential in all Major Market Segments and Equipment Types Finding: Avista currently offers a robust suite of programs and measures across most major market segments, including some of the more difficult-to-reach segments, such as low-income customers. Further, Avista's measure offerings generally capture savings across a variety of different end-uses, from appliances to weatherization. However, due in part to changing market conditions, notably the decline in natural gas prices, Avista has been steadily reducing the number and types of measures it offers as they become cost-ineffective. Recommendation: Avista should continue to investigate new market segments, like existing multifamily, and new measure offerings, like whole-home retrofits,28 to ensure the continuation of its robust energy-efficiency portfolio. Literature on this subject2e and Cadmus' own experience indicates that portfolios should achieve energy savings through a balanced mix of program and measure offerings that target savings opportunities across all major market segments. This approach will provide the utility with the greatest flexibility in the face of changing efficiency standards, regulations, and market conditions. Balance should also extend to program implementation timing. Program implementation schedules, including actions such as ramping up advertising and introducing new progr€rms, should be staggered if possible. This helps avoid a boom and bust energy-saving scenario, which is generally not conducive for developing longer-term relationships with trade allies or customers. Further, depending on the regulatory environment, utilities may not be able to carry over savings that exceed targets from year to year, and may find themselves struggling to meet savings targets in the years following a large scale program implementation effort. Program lmplementation Best Practices Well-conceived portfolio management and implementation practices lend themselves to efficient, cost-effective, and satisfactory outcomes. Cadmus has found through research and our professional experience that successfully implemented energy-efficiency portfolios employ the following five best practices: l. Clearly define the program implementation processes and roles of individual staff; 2. Leverage outside resources that could increase program uptake; 3. Pursue diverse marketing and outreach strategies; 4. Develop and maintain a robust program tracking database; and 5. Conduct regular quality control and verification inspections. Ihon, Inc.2008, p. l-58. Whole-home retrofit programs are explored in greater detail below. Itron, Inc.2008, p. l-49. 2'l 28 29 The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 t 503.467.7110 . Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com Table 10. Program Implementation Clearly define the program implementation processes and roles of individual staff y'+/+/+ Leverage outside resources that could increase proqram uptake /+/+y'+/+/+ Pursue diverse marketing and oukeach skategies y'+y'+y'+y'+ Develop and maintain a robust program trackinq database /+/+ Conduct regular quality conhol and verification inspections y'+{+y'+ Table key: - = no activity; /- = limited activity; / = some activity; /+ = significant activity. Staff_PR_47 Attachment A Page 26 of 60Avista / October 2012 Table 10 provides a summary of our benchmarking findings for these best practices. Clearly Define Program lmplementation Processes and Roles of lndividual Staff Finding: As part of Avista's 2010 Multi-Sector Process Evaluation, Cadmus recommended simplifying and documenting the residential programs' organization structure. The evaluation effort revealed that program staff time constraints may prevent the appropriate dedication of resources to ongoing program planning and long-term management. Recommendation : Avista should ensure that the portfolio implementation responsibilities are well-defined and articulated in writing to minimize confusion. This can be achieved through an implementation plan that is developed and documented by program staff in order to capture institutional knowledge. Program management responsibilities should be assigned based on the considerations of risk versus reward, with high-risk tasks assigned to senior program staffand lower risk tasks assigned to less experienced staff. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 o 503.467 .71 10 . Fax 503.228.3696 An Employee-Owned Company o www.cadmusgroup.com Avista / October 2012 Staff_PR_47 Attachment A Page 27 of 60 Collaboration with third-party program administrators is a proven,3o successful approach for leveraging resources and reaching broader areas with common and consistent program services and messages. When deemed more cost-effective than using in-house resources, implementation should be outsourced to a qualified third party.'' Third-party selection should be achieved through a competitive bidding process. Leverage Outside Resources that Could lncrease Program Uptake Finding: Through evaluation activities associated with the 201I Multi-Sector Process Evaluation, Cadmus learned that trade allies working with the residential programs are willing to engage more directly with Avista and its progrerms. Recommendation: Avista should consider developing and maintaining a trade-ally network that provides program training and education. The training requirement should be a condition to participate in the program. The program should also provide retailer support, including point-of- sale materials, training, site visits, and other sales support strategies. Program administrators can reduce their effort and the program implementation costs by leveraging the wealth of trade allies' knowledge and ex^perience, gained by working with industry leaders to deliver energy efficiency to market.iz Successful programs involve collaborations among a broad spectrum of stakeholders and market actors, including architects, consulting engineers, designers, trade allies, manufacturers, suppliers, retailers, government agencies, local governments, and other decision-making bodies. Pursue Diverse Marketing and Outreach Strategies Finding: The Every Little Bit campaign seryes as Avista's main marketing driver. This broad- based marketing and outreach campaign, launched in2007, seeks to raise customer awareness regarding energy efficiency and rebate availability. Avista markets its residential programs through multiple channels, including TV, radio, online, and direct mail. Table 11 identifies the best practice marketing tactics, indicating which are used for Avista's campaign.33 30 3l 32 33 Yorlq Kushler, and Witte, 2008; KEMA,2006, p. 6-10; and Pacific Gas and Electric Company. Avista currently has three programs that use third-parfy implementers: Simple Steps, Smart Savings, and Refrigerator Recycling, EM&V efforts targeting both the 2010 and 201I program years revealed these programs to be very successful. York, Kushler, and Witte, 2008; and Pacific Gas and Electric Company. KEMA. 2006,p.6-10; and Pacific Gas and Elecfric Company. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 t 503.467.7110 . Fax 503.228.3696 An Employee-Owned Company . www.cadmusgroup.com Avista / October 2012 Staff_PR_47 Attachment A Page 28 of 60 Table 11. Best Practices Used in Avista's Marketing yesDirect Mail Newspaper Yes Radio / TV Advertisinq Yes Online Advertisinq No Website Yes Videos Yes Bill lnserts / Newsletters Yes Brochures Yes Presentations / Meetings Yes Events Yes Kiosks / Demonstrations Yes Co-Branding Materials (with trade allies, partners, etc.)Yes' Referral Proqram No Social Media Outreach (e.9., Facebook)Yes Mobile Application No * Only one of Avista's residential programs uses co-branded materials. This review, supported by findings from the 201I Multi-Sector Process Evaluation, indicates that Avista currently employs several best practice marketing channels, but additional opportunities remain. Recommendation: Avista should continue having its portfolio communicated to customers via multiple media channels, such as trade allies, social media, bill inserts, etc. Avista could leverage recognizable brands to instill consumer confidence and promote general program and product awareness (e.g., utility branding, ENERGY STAR@ logo). Avista should make case studies available through the program's various marketing channels that reflect a wide range of technologies and segment applications. Marketing messages should highlight a broad range of program/measure benefits to the customer. When possible, benefits should be quantified in terms the customer can understand, and lifecycle costs should be emphasized. In order to capture a broad audience, the messages should focus on both the energy and non-energy benefits (e.g., improved comfort, improved air quality) of energy-efficient products and practices. Additional marketing messages should be included that target specific subgroups, such as hard-to-reach customers. Develop and Maintain a Robust Program Tracking Database Finding: Avista's program tracking has proved effective, but the data evaluability could be improved. In the 2011 Multi-Sector Process Evaluation, Cadmus recommended that Avista ensure consistency in data tracked across multiple databases, including the multi-program database, the JACO database, the Home Energy Audit database, and Avista's central CIS database. Cadmus also recommended that if Avista continue the Home Energy Audit Program, The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 , 503.467.7110 . Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com Staff_PR_47 Attachment A Page 29 of 60Avista / October 2012 audit tracking should be enhanced to include integration into the central CIS database, more robust tracking of data collected through the audits, and details on follow-through installations. Recommendation: Avista should develop a single sector- or portfolio-level program tracking database, designed to support both program implementation and evaluation needs. All of the data requirements for measuring program success should be well defined and understood early in the program development process. These data requirements should reflect success indicators that flow from the program plan or theory. Literature suggests that an effective database must be both flexible and functional.3a The tracking system should feature internet-based data entry and reporting functions. It is important to have integration into the central CIS database and to have consistent tracking requirements across multiple program databases. The program should utilize an electronic application process, and online forms should be readily accessible to customers, subcontractors, trade allies, and program administration staff to allow for real-time uploads to the tracking system. All routine functions (e.g., monthly program reporting and financial tracking) should be automated as much as is practical. In addition, the tracking database should have fully automated data validation functions to assess data quality. The tracking system should be fully documented and up-to-date. Database and data entry users' manuals should be provided to all primary users. Conduct Regular Quality Control and Verification lnspections Finding: A review of Avista quality assurance and quality control (QAiQC) procedures indicates that, while robust, some room for additional development may exist. During interviews for the 2010 and 20ll Multi-Sector Process Evaluation effort, Avista staff indicated that QA/QC is typically conducted randomly (e.g., staff check in with participating retailers to ensure that all point-of-purchase marketing materials are displayed in accordance to program requirements) or in response to perceived issues. For example, due to some discrepancies in the quality of 34 KEMA. 2006, p.6- I I ; and Pacific Gas and Elechic Company. The Cadmus Group, lnc. 720 SWWashington Street, Suite400, Portland, OR 97205 c 5A3.467.7110. Fax 503.228.3696 An Employee-Owned Company r www. cadm usgrou p. com Avista / October 2012 Staff_PR_47 Attachment A Page 30 of 60 insulation trade allies' work, Avista increased the percentage of on-site verifications performed on insulation projects. QA/QC is important for determining program performance, ensuring quality installations, confirming program impacts, and heightening customer satisfaction. QC procedures should be based on a utility's relationship with vendors, the number of vendors involved, types of measures, project volume, and the variability of project size. If the program works closely with vendors and utilizes a pre-screened list of products, the need for QC inspections can be reduced.35 Recommendation: To ensure cost-effective M&V, the Avista program administrators should decide whether it is necessary to conduct routine inspections across all programs for a random sample of projects, or just for the very largest projects or those with uncertain impacts. If inspecting a sample of projects, Avista should build statistical features into the sampling protocol that allow for a reduction in the number of required inspections based on a vendor's observed performance and demonstrated quality of work. 35 ltron, Inc., 2008, p. l-5; and Pacific Gas and Electric Company. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 o 503.467 .7110 c Fax 503.228.3696 An Employee-Owned Company . www.cadmusgroup.com Staff*PR*47 Attachment A Avista I October 2012 _ lagsil el99 Nonresidential Table 12 summarizes the nonresidential best practices, scores, and recommended actions. Table 12. Nonresidential Summary and Recommendations Program implementation and operations plan Continue to develop an operations plan that will provide guidance on internal policies and procedures Third-party implementer Evaluate the costs and benefits of conkacting with a third-party implementer for elements of the Site Specific and Prescriptive programs (beyond EnergySmart Grocer) Proactively address market barriers Explore piloting various delivery mechanism programs for hard{o+each markets (such as a Small Business Direct lnstall Proqram) t|f.f&Hilll. il*, I;;.'l,t*"; .. 'ltsrl Formalized network with easy regiskation Develop a formalized network of contractors and installers with a simple registration or onboardinq Drocess Dedicated Website section Add a dedicated kade ally section to the business Webpage that contains resources, guidance, and updates for program participation Regular communication and education Build on the current outreach activities by providing more direct and frequent communication and hosting in-person kainings Easy-to-find Website material Make the business rebates webpage easier to find; make a link for 'Efficiency Avenue' more prominent; consider making coshsaving information available by measure Direct outreach by accounl representatives or executives {+Continue efforts to find ways to encourage direct contact between program staff, account executives, customers, and trade allies, where cosfeffective Leverage trade allies to promote programs Create a marketing plan that includes specific channels for outreach through trade allies, with associated goals and milestones Cleary defined and reasonable participation process lmprove the Website content for the Site Specific Program to provide customers with additional information on the enrollment processes Technical service Explore a formal process to provide a technical assistance service to Site Specific Prooram customers lntegrated databases Ensure integrated fields across worksheets, application forms, and databases; continue to develop an integrated customer information system Pre- and posFinspections Clearly define and document pre- and post-inspection policies and procedures; determine a sampling approach for conducting Site Specific Program project pre- inspections; establish a size parameter for Prescriptive Program projects Routine evaluations Continue routine evaluations to enable the incorporation of results on a relatively real- time basis Freeridership and spillover Continue monitoring freeridership and spillover estimations Table key: - = no activity; /- = limited activity; / = some activity; r'+ = significant activity The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 t 503.467 .7110 r Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com Avista / October 2012 Staff*PR*47 Attachment A* Pr-s_g -1?-gl_0_o- Residential Table 13 summarizes the residential best practices, scores, and recommended actions. Table 13. Residential Summary and Recommendations t:v...*91 f"iI'!l-:i.i;1ri:,i&:l Have well documented and articulated qoals Avista should carefully document its impact and process goals, and disseminate them widely throuqhout the implementation team and stakeholders ;$.Rffft Conduct baseline research and market assessments As current market conditions continue changing, Avista should maintain its commitment to regular baseline research and market assessment Develop complementary pr0grams To reduce implementation costs and leverage existing implementation resources, Avista should consider the complementariness of program and measure offerings during planning Develop programs and measure offerings that target energy-saving potential in all major market segments and equioment tvoes Avista should continue to investigate new market segments, like existing multifamily, and new measure offerings, like whole-home retrofits, to ensure the continuation of its robust energy-efficiency portfolio. i#.i.&Il6.Eli ffiHt$i i::l',r.', ii3:iifl. .Sffi,+,ffiffii Clearly define program implementation processes and roles of individual staff Avista should ensure that the portfolio implementation responsibilities are well- defined and articulated in writing to minimize confusion Leverage outside resources that could increase program uptake Avista should consider developing and maintaining a trade-ally network that provides program training and education Pursue diverse marketing and outreach shateoies Avista should continue having its portfolio communicated to customers via multiple media channels, such as trade allies, social media, bill inserts, etc. Develop and maintain a robust program kacking database Avista should develop a single sector- or portfolioJevel program tracking database, designed to support both program implementation and evaluation needs. Conduct regular quality control and verification inspections To ensure cost-effective M&V, the Avista program administrators should decide whether it is necessary to conduct routine inspections across all programs for a random sample of projects, or just for the very largest projects or those with uncertain impacts. 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Targeting Commercial Building Owners - Xcel Energy's Commercial Real Estate Efficiency Program This type of rebate program would be most applicable for building owners who lease their premises on a gross lease, in which tenant energy costs are based on square footage. In this type of lease uurangement, investing in low-cost energy-efficiency measures will generate a return on investment by loweringthe owner s energy costs, which can represent up to l9Yo of total expenditures of a typical office building. Xcel Energy's Commercial Real Estate Efficiency Program (represented in Figure 2) targets Colorado commercial building owners and provides Figure 2. Xcel Enerry Commercial Real Estate Efficiency Program Process Flow 720 SW Washington Street, Suite 400, Portland, OR 97205 c 503.467,7110 r Fax 503.228.3696 An Employee-Owned Company + www.cadmusgroup.com {l r-site rr isit Dr,,rbp listof m.mstor bvlcnst m eisure, a rd c+p iE I irr pmvem rnE fi l rrorrsil eratirl 0*ruehpad quantif smpr of im pmvem rnG Estimat Xce lEnr qy r.bstes hrresni ga tiue $tdy ioptiora Ii RrvitwanJ appmve Irulgerad stittmtntgf t,ork ln-dtjtr t,uiHing agstssm ent Crtat nraster listof f rdings ud to E rerte a frllline n c ial ana tpis and re port of IecD mmr ndtd impro,tt ttt t ttts hplanrrtttiu Cwomu completesstlectd imp mvem rnts .l rd rub mitssu mmary nith inmictsto Xce I Errtrgy ac count ma ne3e r. I mphm e d;tb n can oc cur attrthr complrthn of tts tss me fito r th€ iruestlaiue strrdy. ftehteprrcirg Subm it imple mr mati: n docu nrrnEtbn Orvne r or desi; nated pa rty rr ce ires rebat chrcL Avista / October 2012 Staff_PR_47 Attachment A Page 54 of 60 funding for technical studies and bonus rebates. The program provides technical assistance for buildings larger than 50,000 square feet at the cost of $2,500 for a preliminary report, with opportunities for further in-depth energy and engineering analysis. Similar to a custom or site specific incentive program, Xcel Energy uses a technical study to establish a baseline, calculate energy and cost savings, and identify opportunities for energy-effrciency rebates. A key component of the Commercial Real Estate Efficiency Program is its marketing strategy. By making a dedicated section on the business Webpage and creating a series of downloadable brochures and information sheets, Xcel Energy explicitly targets commercial building owners with tailored messaging. For example, pro$am material stresses that the program was"creoted just for real estate customers," and touts the alignment with LEED for operations and maintenance requirements. 2. Targeting Commercial Tenants - Catifornia tJtilities' Office of the Future Pitot To address the split incentive of leased office buildings and incent tenants to reduce their energy use, additional program designs may be necessary. These additional types of programs would be most applicable for tenants who lease space under a net lease arrangement, in which they pay their own energy bill and will benefit directly from lower operating costs, but do not have control over whole building operations. One approach, utilized by California utilities in their Office of the Future pilot, focuses on building long-lasting relationships with commercial real estate (CRE) firms interested in energy efficiency. The program aims to directly address the split incentive market barrier in multitenant leased office spaces by focusing on commercial offrce retrofits, which often happen at the beginning of a new lease. In this way, the program may be relevant for either a gross or net lease arrangement. The timing is geared toward influencing the design of the space during lease negotiations in order to minimize the incremental costs of energy-efficient measures, and to encourage discussion and the allocation of costs and benefits associated with energy efficiency in the lease document.36 Some considerations for designing a program in partnership with CRE firms include:37 e Consider using a dollar-per-square-foot incentive to align with the most common metric used in lease negotiations. o Choose eligible equipment measures that address the uniqueness of tenant needs, such as tenant feedback/energy use dashboards, workspace or desktop lighting, daylighting controls, vacancy sensors, and a custom lighting system option. Cortese, Amy, D. Harris, and D. Avery. Harnessing Market Forces to Address the Landlord Tenant Split Incentive in the Commercial Building Market.2010 ACEEE Proceedings. Available online at: http ://wrvrv.aceee.org/files/proceedin gs/20 I 0/data/papers/203 6.pdf. rbid. The Cadmus Group, lnc. 720 SWWashington Street, Suite400, Portland, OR 97205 o 503.467.7110 e Fax 503.228.3696 An Employee-Owned Company o www.cadmusgroup.com Avista / October 2012 Staff_PR_47 Attachment A Page 55 of 60 o Consider public relation (PR) benefits for CRE firms that participate in the program. If the space is leased on a net lease arrangement, resulting in little to no operating cost savings for the building owner, providing the building owner with PR benefits of some kind may be the type of recognition needed to engage the CRE community. Traditionally, the uptake of LEED and ENERGY STAR certifications is strong in this sector due to the real and perceived benefits of attracting and maintaining tenants. 3. Partnering with Local Government Stakeholders to Promote Green Leases Green leases, or aligned leases, overcome the split incentive barrier by revising traditional commercial lease structures to motivate both owners and tenants to save money through energy- efficient upgrades and measures. As stakeholders and businesses have become more aware of the benefits ofenergy efficiency in recent years, and the barriers that leased facilities present, goverTrments, stakeholders, utilities, and the commercial real estate community have taken strides toward promoting the adoption of green lease language. In New York City, stakeholders worked with the Office of Long-Term Planning and Sustainability to create model lease language for gross commercial leases, which are the most common commercial lease type in New York City." The model language, known as the Energt Aligned Clause, facilitates energy-effrciency improvements in leased spaces by: o Allowing both parties to share the costs and benefits of energy retrofits by agreeing on a predicted amount of annual savings and by having the tenant pay the owner recovery costs based on the predicted savings.o Including a protective measure against underperforming retrofits, called a performance buffer, which extends the payback period by 25%. The Green Lease task force also developed an interactive financial model to showcase how the lease language affects the payback of energy-efficient retrofits for tenants and owners.3e Addressing Small Businesses Common barriers to energy efficiency upgrades among small business customers include their competition for time, their lack of upfront capital for energy-efficient equipment, and the difficulty in reaching them via traditional marketing techniques, such as direct mail. More and more utilities are pursuing programs or delivery channels designed specifically for reaching the small business customer and addressing their unique challenges and needs. This section summarizes two direct discount (also known as direct install) programs; one with financing and one without. Both can be effective avenues for increasing program participation among small business owners. For more information, read the clause and an overview ofl New York Cify. Energt Aligned Clause. April 10, 2012. Available online at: http://www.nyc.gov/html/gbee/downloads/pdf/eac overview.pdf. A downloadable presentation is available that explains the clause: http://www. nyc. eov/htm l/gbee/down loads/pdf/eacjresentation.pdf. The Excel model can be downloaded from the PLANYC Webpage: http ://www.nyc. gov/htm l/gbee/htrnl/initiatives/clause. shtm I The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 ; 503.467 .71 10 r Fax 503.228.3696 An Employee-Owned Company o www.cadmusgroup.com Avista / October 2012 Staff_PR_47 Attachment A Page 56 of 60 1. Direct Discount with Financing: Connecticut Small Business Energy Advantage Program (SBEA) This program is offered by Connecticut's two major investor-owned utilities via a partnership with the statewide Connecticut Energy Efficiency Fund, and has been cited in numerous energy- efficiency best practice reports.ao Connecticut Light and Power and the United Illuminating Company offer small businesses, industrial customers, and government and non-profit entities rebates for energy-efficiency equipment, combined with zero-interest financing for up to 36 months. The program relies on contractors to act as a single point of contact for customers, which includes promoting the program, conducting energy assessments of facilities, and submiuing proposals. The SBEA Program is able to minimize customer effort and reduce financial barriers by providing direct services (on-site assessments and direct installation). In the direct discount approach, the utility rebate is provided to the contractor rather than the end-user, and the customer is responsible for paying the difference, which lowers upfront costs. Through the SBEA Program, the utilities offer financing options to help customers pay off the remaining costs over time. The unique partnership with the Connecticut Energy Efficiency Fund allows the utilities to offer a significantly lower incentive amount (incentives are capped at just 30% of the project cost) than other direct discount programs and still achieve high program participation and significant energy savings. An evaluation of a similar program in Massachusetts revealed that the availability of financing played a significant role in the customers' decisions to participate. Seventy percent of surveyed participants reported that the financing was important to their decision. Moreover, a survey of nonparticipants and partial participants revealed that 66Yo of respondents would be more likely to install energy-efficient equipment with the availability of zero-interest financing. Table 22 summarizes the SBEA program design, incentive structure, and energy impacts. Table 22. Connecticut SBEA Program Details and Impacts Source: The Cadmus Group, lnc. Connecticut Small Business Energy Advantage lmpact Evaluation Report Program Year 2007, August 24, 2009. Available online at: http://www.ctsavesenergy.org/files/CT%20SBEA0/I2020070/020lmpact%20Evaluation%20Report.pdf. 40 York, Kushler, and Witte, 2008 Quantum Consulting,2OO4. 42,529 MWh/year total(21,264 MWh/year/ utility) Capped at 30%, plus 30- 36 months of interest free financing The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 + 503.467 .71 10 r Fax 503.228.3696 An Employee-Owned Company r ranvw.cadmusgroup.com Avista / October 2012 Staff_PR_47 Attachment A Page 57 of 60 2. Direct Discount with No Financing: Mid-Atlantic Utility Direct Discount Delivery Channel Utilities have proven that with strategic marketing and outreach, the small business sector can be reached without the availability of financing. This type of delivery channel may be appropriate where third-party financing partners, such as statewide funds, are not be readily available. Similar to the SBEA Program, a Mid-Atlantic utility relies heavily on trade allies to promote the Direct Discount Program and to provide small businesses with support in order to minimize customer time and effort. Again, the utility rebate is provided to the contractor rather than the end-user, and the customer is responsible for paying the difference. In this case, the incentive cut-off is much higher than for the SBEA Program, which lowers the up-front cost significantly (See Table 23). This program is smaller in scope than the SBEA Program: efficient lighting and refrigeration equipment are currently the only eligible measures, and the program's high savings can mainly be attributed to lighting projects. Due to the success of the program in its first year, the utility is considering expanding the measure offerings. The utility has focused on investing in trade ally training and outreach in order to boost participation in the Direct Discount Program, a strategy that appears to be effective for them. The program has over 130 contractors that currently participate, and who have access to software (for conducting energy assessments), marketing materials, lighting worksheets, and more. Furthermore, the utility conducts regular surveys with this specific group of trade allies in order to stay informed of market barriers and obstacles with the program administration (such as rebate processing time, facility inspection, and proposal approval) and to implement timely adjustments and keep trade allies satisfied with the program. Table 23. Mid-Atlantic Utility Direct Discount Program Details and Impacts Note: The final impact report will be available for public consumption in November 2012. The Cadmus Group, lnc. 720 SWWashington Street, Suite400, Podland, OR 97205 c 503.467.7110 r Fax 503.228.3696 An Employee-Owned Company o www.cadmusgroup.com Avista / October 2012 Staff_PR_47 Attachment A Page 58 of 60 Residential Deep Energy Retrofit Deep energy retrofit (DER) has gained recent popularity as a way to significantly reduce energy consumption in existing residential building stock. Currently, numerous pilot programs are operating across the country and studies suggest that significant results are achievable.al DER projects aim to take existing homes and dramatically reduce their energy consumption by 50%o to 90%. Given the significant impact these projects have on the livability of the home, often the occupants' health, satisfaction, and safety are also prominent program goals. Several New England utilities (National Grid, NSTAR, Cape Light Compact, and Westem Massachusetts Electric Company) are currently operating several DER pilots under the MassSave@ initiative.a2 The pilots have experienced some issues with low customer and stakeholder uptake. However, numerous important lessons can be learned from a review of program design, offerings, and early evaluation results."' Sponsored by electric and gas program administrators (PAs), the 2010 DER pilots' implementation details vary by administrator. The pilot provides participants with the following: . Technical assistance, which may include Building Science Corporation (BSC) or Home Energy Raters (HERs) to inspect and run tests, or the Center for Ecological Technology (CET) services in reviewing customer plans, modeling Building America case study dwellings, and detailing construction efforts.o Incentives for implementing a package of measures that are designed to reduce energy use by at least 50%. o National Grid's program also provides educational and technical services to customers and contractors, with a particular focus on correct implementation techniques. The pilot program delivery mechanisms vary by utility. National Grid, for example, requires the installation of a somewhat prescriptive combination of shell and HVAC measures, which in total are expected to achieve 50o/o or more savings. Other PAs, such as the Westem Massachusetts Electric Company, require designs to achieve a HERS rating of 50% or better, without reference to specific measures. Walker et al, Lawrence Berkeley National Laboratory. Deep Energt Retrofit Performance Metric Comparison: Eight Califtrnia Case Studies. ACEEE Proceedings. 2012. Available online at: http://www.aceee.orq/files/proceedings/2012/data/papers/0193-000007.pdf: Jackson et al, Oak Ridge National Laboratory and Kim et al, Southface Energy Institute. Advancing Residential Energt Retrofits. ACEEE Proceedings. 2012. Available online at: http;//www.aceee.orgy'files/proceedings/2012ldata/papers/0193- 000032.pdf. http://www. masssave.com/about-mass-save. The Cadmus Group, lnc. Massachusetts 2010 Residential Retrofit qnd Low Income Evaluation-Deep Energt Retrofit. July 16, 201 l. Available online at: http://www.ma- eeac.orddocsi20 I I %20EM&V%20Studies/IvlA%20RRLI%20- %202010%20Deep%20Energy%20Retrofit%o20Evaluation%20Report_FINAL_l I JULY2O I Lpdf. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 o 503.467 .71 10 o Fax 503.228.3696 An Employee-Owned Company + www.cadmusgroup.com 4t 42 43 Avista I October 2012 Staff*PRJ7 Attachment A Page 59 of 60 Several utilities offer a partial implementation track. Regardless of the approach, participants must mitigate standard2x4 construction by expanding wall cavities on interiors or over-cladding exteriors. Participants must also implement additional significant measures, such as mechanical ventilation and considerable improvements to roof and basement insulation, which together create complex and expensive installations. The projects' complexity and affordability have been viewed as participation barriers. Table 24 provides the key delivery features of each pilot. When considering a DER pilot, recent Cadmus evaluations and a review of literature indicates the importance of the following programmatic features: o In addition to the energy savings that can be achieved through DER, programs should emphasize other benefits including increased comfort, livability, and the increased value of the home. o Structure pilot goals around the research benefits from the pilot, in addition to energy savings, so the pilot is not held to the same cost-effectiveness requirements as typical programs. DER projects typically have longer lead times, and therefore customer and stakeholder interest may build gradually. o Develop a DER option that meets the needs of customers who are prepared for a major project but are not willing or able to commit to all the requirements of a comprehensive DER project. For example, customers that are only interested in re-roofing or re-siding their home can still achieve additional savings, and for a relatively low cost. The Cadmus Group, lnc. 720 SWWashington Street, Suite400, Portland, OR 97205 o 503.467.7110 e Fax 503.228.3696 An Employee-Owned Company . www.cadmusgroup.com Table 24. Summary of DER Pilot Delivery Characteristics, by Utility National Grid staff, BSC for technical services and inspections Program referrals, conkactor network, robust Website, e-mail distributions, open houses, TV, speaking engagements, and -1.5 full-time equivalent (FTE) program -1.0 FTE PMs $42,000 for single family, for multifamily varies by size of building and number of units but up to $106,000 Avista I Oclober 2A12 Staff_PR*47 Attachment A Page 60 of 60 The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 o 503.467.7110 r Fax 503.228.3696 An Employee-Owned Company o www.cadmusgroup.com Staff_PR_47 Attachment B Best Practice Comparative Review Findings Addendum: Updates and Next Steps Cadmus conducted a comparative review of best practices for Avista in the fall of 2072 as a 2012 process evaluation activity. The research was largely based on available information from the 201.1 process evaluation. Additional information was subsequently gathered from Avista's implementation and PPA teams about activities that took place in 2012. As such, Cadmus has revised several scores that were in the original memo to reflect the new information obtained through these interviews and discussions. ln this addendum, we also highlight several areas in which Cadmus sees concrete steps that Avista can take immediately to improve their practices. REVISED SCORES Table 1 provides a summary of revised scores based on new or updated information Table 1. Revised Scores Non-Residential Portfolio Proactively Address Market Barriers by Testing lnnovative Delivery Channels for Hard-to-Reach Markets Leverage Trade Allies to Promote Programs Utilize Third-Party lmplementer Expertise where Appropriate Residential Portfolio Develop complementary programs -Avista hired students to canvass small businesses on foot for the T8 "firesale" in 2Ot2. -Through NEEA, Avista helps to tackle the split-incentive barrier in commercial real estate through green lease promotion and other tools. -Avista developed marketing kits for lighting vendors for the T12 to T8 conversion; encouraged co-branding and promotion; and launched them during an in-person forum in 2012. Avista is currently in the process of updating marketing kits to include non-lighting measures. -Avista currently uses third-party contractors for turn-key implementation services for two of its nonresidential programs. ,"ro"ii"u i". orir,r;, ,"ria"n,i"r oro*rrm targets ;;t, program participants through methods including thank-you letters pointing to additional savings opportunities. Avista convened a Touchpoint Team to identify ways to encourage repeat participation. Tables 2 and 3 provide an updated summary of all best practices, scores, and recommended actions for the nonresidential and residential sectors respectively. 720 5W Washington Street Suire 40t) Portlancl, OR 97205 Voice: 503.467.7 100 Fax: -503.228-3fi96 An Employee-Awned Compa ny www.cadmusgroup.com Corporate Headquarters: I 00 sth Avenue, Suite 1 00 Waltharn, MA 02451 Voice: 617.673.7000 Fax: 617.67:1.7001 Staff_PR_47 Attachment B Table 2. Updated Nonresidential Best Practice Summary Program Planning and Management Program , I aL- _..-,^_t ..--.._r r^ :--r..r- _ -- ] implementation and : / @ i Expand on the current DSM Program Manual to include a program theory and l --:---,---'----;--, - - i * :outlineinternal operationsoperatrons plan : i utilize Third-party ; i Evqluqte the costs ond benefits of controcting with a third-psrty implementer for it. l implementers when i r' : elements of the Site Specific ond Prescriptive progroms (beyond EnergySmort I' I i^ . l', appropriate i i Grocer qnd 6reen Motors) i i Proactively qddress i , i Build on current efforts to explore piloting delivery chonnels for hord-to-reach i i, appropriate i i drocer qnd 6reen Motors) irraactrvetygaores' i z I Duusoncurrentellor$toexProreprrol,nggeilverycnonnet'Iornara-Io-reqcn.{!', morket barriers I I morkets (such qs a Small Business Direct lnstall Progrqm) 1 Formalized network i 6s i Consider developing a formalized network of contractors and installers with aI rormallze0 neIWOrK i & | Lonsloer oeveloplng a TormallzeO nelworK oI conlraclors ano lnslallers wl I Oedicated Website i @$ , Rdd a dedicated trade ally section to the business Webpage that contains section i * i resources, guidance, and instructions for program participation Regular i , section i * i resources, guidance, and i _--:'-.- .' ,-_-, ', , ', Build on the current outreach activities by providing more direct and frequentcommunication and \/ ^;..^^;^:-''-" -"' , i communication and hosting in-person trainingseducation r : -- l I Marketing and Outreach I Continue to improve the navigation of the business incentives webpage; make I case-studies more accessible; consider making cost-saving information available by i Continue efforts to find ways to encourage direct contact between program staff, i account executives, customers, and trade allies, where cost-effective i Easy-to-find Website i material i i Direct outreach by AEsi...I i Expand current opproach to maximize trade olly involvement in non-lightinS ILeveragetrodeallies I I i-;;;;;;.considercreotingmeasurabtegootsfordrirhg;;';;;rr'i,ri*"rl, ! through this channel I Enrollment Process i cleary defined and i , idlr& | lmprove the website content for the site specific program to provide customers i i nvolveme nt i n non-lig hting ::-::i:":1.' . w i with additional information on the enrollment process and requirements Ipartrclpationprocess , : I Explore a formal process to provide a technical assistance service to Site Specific iTechnical seryice t, tl 'i Program customers i , Ensure integrated fields across worksheets, application forms, and databases; i,ilntegrated databases \ /- i continue current efforts to develop an integrated Customer Care and Billing I I I Pre- and post- t, ./ i Clearly define and document pre- and post-inspection policies and procedures; I Routine evaluations i /+ : --'.' .'-' . 1e9l_time b_asis Freeridership/spillovel ', / * I Coltlnue .assg-ss!ng, [eelideqsfr!g 9nd slil]or1er Bolded and italicized text signifies where scores have been updated @ Signifies areas where immediate steps can be taken to improve practices (detailed actions recommended below) 720 9W Washington Street Suite 40O [)ortland,(]R 97205 Voice: 503.467.71 00 Fax: 503,1i8.3696 Staff PR 47 Attachment B Table 3. Updated Residentia! Best Practice Summary i Have well documented i . and articulated goals i . *' .,J I erocqm P-lannine an! Desien i Conduct baseline .j i research and market : r'* assessments a Develop complementary progroms Develop programs and measure offerings that target energy-saving ipotential in all major i i Avista should document and monitor progress toward goals, and disseminate this i information throughoutthe implementation team, PPA, and stakeholders i As current market conditions continue changing, Avista should maintain its i commitment to regular baseline research and market assessment To reduce implementotian costs and leveroge existing implementotion resources, Avista should consider the complementariness of progrom ond measure offerings ' during planning Avista should continue to investigate new market segments, like existing multifamily, and new measure offerings, like whole-home retrofits, to ensure the continuation of its robust energy-efficiency portfolio. "'*'*" "'*'*"..a*'"_' ,/ ffi Avista should ensure that the portfolio implementation responsibilities are well- , defined and articulated in writing to minimize confusion I Avista should consider developing and maintaining a trade-ally network that i provides program training and education / + Avista should continue having its portfolio communicated to customers via' I multiple media channels, such as trade allies, social media, bill inserts, etc. Avista should develop a single sector- or portfolio-level program tracking database, designed to support both program implementation and evaluation needs. To ensure cost-effective M&V, the Avista program administrators should decide whether it is necessary to conduct routine inspections across all programs for a random sample of projects, or just for the very largest projects or those with uncertain impacts. w l iClearly define program implementation processes and roles of individ9..............9t stgff . Leverage outside resources that could increase program 11PH!s__, *.* Pursue diverse marketing and outreach ;-91t9"19-ei-e9-i;;;"6t;;Jffi;;i; ; i robust program tracking i database Conduct regular quality control and verification inspections I I Bolded and italicized text signifies where scores have been updated @ Signifies areas where immediate steps can be taken to improve practices (detailed actions recommended below) 720 5W Washinqton Stre(t Suite 400 Portland,()R 97205 Voice:503.467.7100 Fax: 503.228.3696 Staff_PR_47 Attachment B IMMEDIATE STEPS TO IMPROVE PRACTICES Non-Re si d e ntiol Po rtfolio L. Develop a comprehensive program implementation plan that details program design, Recommended Actions Anticipated Score with Recommended Actions strategies, and operation processesl Current Avista Score Expand on current procedures manual to include a program theory and outline program operations. For example, program operations could include, but are not limited to: Clearly defined program staff roles Responsibilities of implementation staff, PPA staff, and Account Executives and how they interact Clearly defined incentive structures for each program Steps involved in processing rebates Clearly defined program systems (e.g., databas e / + software is defined by name, who will use it, and when in the process) lnformation that is required to be entered into program databases Specific QA and QC procedures, including criteria for pre and post project inspections Definition of partnerships with other local or regional organization's programs t These recommended actions also apply to Best Practice #5, listed below under the Residential Portfolio. 720 5W Washinqton Street Suite 400 l,ortland,0R 97205 Voice: 503.467.7100 Fax:503.1J8.3696 a a a a a Staff_PR_47 Attachment B 2. Have a formalized Trade Ally network that entails a simple screening and registration process Current Avista Score Recommended Actions Anticipated Score with Recommended Actions Take steps to move the discussion forward on how a formal Avista Trade Ally network would be managed and how registration would work. Avista could establish a committee including representatives ,/ from all involved departments to continue exploring the necessary stePS. 3. lnclude a dedicated Trade Ally section on the utility Website with resources and participation guidelines Current Avista F-_^__.^-__r-r a -4:__- Anticipated Score with score Recommended Actiont Recommended Actions Complete the website for vendors to log-in to co-brand, download, and print program marketing materials. This is an exceptional practice already in-progress at Avista. Supplement this sophisticated approach with a more basic, public- / + facing link for new trade allies on their website. At the minimum, it should be a page with information to learn more about Avista's programs, who to contact, and a way to sign-up to get on the mailing list, even if Avista does not have a formal network. 4. Ensure participation procedures are clearly defined, documentation requirements are reasonable, and forms are understandable Current Avista Score Recommended Actions Anticipated Score with Recommended Actions Add information to the Site-Specific program Webpage about,/ enrollment steps, including an idea of the timing for these steps. Consider doing this as an easy-to-read checklist or as an FAQ. /+ 720 5W \{ashinqtorr Street Suite 400 ['ortland,0R 97205 Voice: 503.467.7100 Fax: 503.228.3696 Residentiol Portfolio 5. Have well documented and articulated goals Current Avista Score Recommended Actions Staff_PR_47 Attachment B Anticipated Score with Recommended Actions Establish communications protocol for program progress reports to increase internal awareness of program progress toward goals. Consider developing a simple monthly progress report and disseminate report to all program implementation staff.o The document should that clearly articulate all program goals and progress toward those goals (including kwh, kW, Therms,./ expenditures, number of participants, etc.) at the portfolio, sector, and program level.. Reports should also highlight significant recent accomplishments as well as upcoming critical issues or decisions. . Reports should be detailed but accessible for a non-technical audience. /+ 720 SW l{ashinqton Street Suire 40o f'ortland,0R 97205 Voice: 503.467.7100 Fax: 503.228.3696 Staff_PR_47 Attachment B 6. Clearly define program implementation processes and roles of individual staff Current Avista Score Recommended Actions Anticipated Score with Recommended Actions Expand on current DSM Program Manual to include a program theory and outline program operations. For example, program operations could include, but are not limited to: o Clearly defined program staff roles o Responsibilities of implementation staff, PPA staff, and Account Executives and how they interacto Clearly defined incentive structures for each program . Steps involved in processing rebateso Clearly defined program systems (e.g., database software is defined by name, who will use it, and when in the process) ./ r lnformation that is required to be entered into program databaseso Specific QA and QC procedures, including criteria for pre and post project insPectionso Definition of partnerships with other local or regional organization's programs {+ 720 5W Washinqton Street Suite 400 Portland,0R 97205 Voice: 503.467-7100 Fax: 503.228.3696 TIlE staff PR 47 Attachment C CADMIJS GROI-]P, I}{C" Date: March 25,2013 To: PPA and tmplementation Teams; Avista From: Evaluation Team; The Cadmus Group, lnc. Re: Energy-Efficiency Program Best Practice Comparative Review Findings This memorandum presents the results of the Cadmus Group's (Cadmus) residential and nonresidential comparative review of best practices in utility demand-side management (DSM) in North America. For this research, Cadmus explored the core process areas identified or cited in national best practice literature as key factors contributing to energy-efficiency program success, and assessed the extent of best practice adoption at six utilities, including Avista. This memo also includes examples of exemplary practices and, where possible, presents ideas of new and innovative program offerings for hard-to-reach markets. For nonresidential best practices, we explore policies and practices in: 1) program plaruring and management; 2) trade ally networks; 3) marketing and outreach; 4) enrollment processes; and 5) evaluation, measurement, and verification (EM&V). For residential best practices, we provide information on: 1) program goal-setting; 2) program planning and design; and 3) program implementation. This comparative review and assessment builds on findings from the program year 2010 and 2011 process evaluations, and from Cadmus' experience with Avista's internal processes and energy-efficiency portfolio. It also reflects preliminary 2012 process findings generated from in- depth interviews with key PPA and implementation sthff. For each best practice section, we identified the key findings and recommendations and then highlighted the best practices for the topic area. While the information included in this memo was largely sourced from public reports, the intended audience for this research is Avista program managers, account managers, and the PPA team. The memo is organized as follows: o Methodology The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 o 503.467.7110 r Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com Staff_PR_47 Attachment C Avista I March 2013 Page 2 of 62 Best Practice Areas: Nonresidential Programs Best Practice Areas: Residential Programs Attachment A. Summary of Comparative Best Practice Review Recommendations Attachment B. Factors Included in Utility Scoring Attachment C. Organizational Structure of PPL Electric's Customer Programs and Services Group o Attachment D. Innovative Programs for Hard-to-Reach Markets l First, we identified the best practice research topics from program year 201I and, where appropriate, program year 2010 evaluations; 2. Next, we reviewed published literature by third-party experts, government agencies, and non-profit organizations; 3. Then, we assessed the relevancy and applicability of the literatures' cited best practices to Avista's unique goals and circumstances; and 4. Lastly, we applied our expertise and knowledge of the utility sector to further develop best practices and recommendations. The list of best practices identified in this review is not comprehensive. The tables and discussions presented will provide Avista with ideas and inspiration for further steps toward improving their programs and processes. To benchmark Avista's performance in the best practices selected, Cadmus reviewed the energy- efficiency program offerings from five other utilities from across the country. Cadmus used a variety of sources to create the best practice scores we included in the utility benchmarking tables. These sources included: o Utility and implementer Websites;o Annual reports and impact and process evaluation reports; and . Insight from professional relationships at Cadmus and at other utilities. The Cadmus Group, lnc. 720 SWWashington Street, Suite400, Portland, OR 97205 o 503.467.7110. Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com a a a Cadmus identified sector-specific best practices using the following approach: Avista / March 2013 Staff_PR_47 Attachment C Page 3 of 62 The tables in this memo use to following notation, which make it easier to quickly identify a utility's activity in a given best practice area: o Dash (-): No activity;o Check minus (/-): Limited activity;o Check (/): Some activity; and. Check plus (/*): Significant activity. Generally, a checkmark indicates we believe a utility's approach aligns with nationally identified best practices or industry standards. A check plus indicates exceptional practice, while a check minus denotes that the utility may have room for improvement or growth in the practice. A dash signifies that the utility does not have systems or processes in place to adopt the best practice, or the best practice is not applicable to their situation. Utilities lncluded in Assessment Cadmus benchmarked the following utilities for our comparative review of best practices: o Dayton Power and Light (DP&L); o Pacific Power Washinglon (Pacific Power);o Puget Sound Energy (PSE); o Xcel Energy Colorado (Xcel Energy); and o Pennsylvania Power and Light Electric Company (PPL Electric). Table I provides key performance metrics for the utilities included in this comparative assessment. These dataare intended to provide context when comparing utilities. The Cadmus Group, lnc. 720 SWWashington Street, Suite400, Portland, OR 97205 o 503.467.7110 r Fax 503.228.3696 An Employee-Owned Company e www.cadmusgroup.com Avista / March 2013 Staff_PR_47 Attachment C Page 4 of 62 Table l. Key Performance Metrics of Utilities Included in Comparative Assessment lgn?esjderiiiaffi , je'$:,';,'1 ;i..rl$#:::sx i Dollars Budgeted for Nonresidential Proqrams $13,330,011 $22,644,511 $3,961,821 $43,884,323 $36,292,083 $39,1 33,000 Verified Savings from Sector (Gross kWh)97,087,824 '107,687,098 21,214,000 165,658,787 179,143,313 175,771,000 Dollars Spent per kWh Saved $0.14 $0.21 $0.1 I $0.26 $0.20 $0.22 Overall Cost-Effectiveness (TRC) for Nonresidential Proqrams (Electric) 2.3',1.46 Unavailable 3.19 2.64 1.73* '.-,lnpl;:- r -r, "JS&;+t* .i$ik#S&;; f**'li$Qffi;*r.# Dollars Budgeted for Residential Proqrams $6,846,443 $15,948,708 $2,742,024 $36,180,009 $29,341,274 $13,042,000 Verified Savings from Sector (Gross kWh)43,173,405 54,150,130 14,480,000 103,686,901 109,612,1 39 205,223,000 Dollars Spent per kWh Saved $0.1 6 $0.29 $0,19 $0.35 $0.27 $0.06 Overall Cost-Effectiveness (TRC) for Residential Programs (Electric) 1.15 2.22 Unavailable 2.55 4.67 1.73* Note: Cadmus obtained these metrics from annual or EM&V reports published in 2010, 2011, and 2012. * These numbers reflect portfolio-level data. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 c 503.467 .71 10 r Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com Staff PR_47 Attachment C Page 5 of 62Avista / March 2013 Program Planning and Management Best Practices In order to reach more end-users, utilities are designing their commercial and industrial (C&I) energy-efficiency portfolios to be broader, more comprehensive, and more complex. Knowledge of program planning and management best practices can help managers prepare for this ever- changing marketplace and anticipate future implementation challenges. This section explores the following approaches (summarized in Table 2): o Developing a comprehensive program implementation plan that details design, theory, and intemal operations; o Utilizing a third-party implementer to provide cost-effective administrative and technical support when appropriate; ando Proactively addressing market barriers by testing new technologies and delivery mechanisms for hard-to-reach market segments. Develop a Comprehensive Program lmplementation Plan that Details Program Design, Program Theories, and Operation Processes Findingz Avista recently developed a DSM procedures manual that includes a high-level overview of the nonresidential programs. However, the document lacks detailed operational guidance and discussion of program theories and associated logic models. The draft manual has touched on these components in the sections'oProgram Panicipation Decision Process" and "DSM Program Delivery Process," but these sections could be expanded to include more detail on a program level. Recommendation: Due to the nonresidential portfolio complexity and limited procedural documentation, Cadmus recorlmends that Avista continue to expand the draft procedures manual to include an operations plan that provides detailed guidance on internal policies and procedures. The document would also benefit from the inclusion of clearly explained program theories, and the implementation steps associated with reaching each program's goals and objectives. By developing this internal document that includes a program theory, implementation activities, and operations, Avista will ensure that program managers, implementers, account executives, and EM&V staff share an understanding of what the program seeks to accomplish. The The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 c 503.467.7110 . Fax 503.228.3696 An Employee-Owned Company o www.cadmusgroup.com Table 2. Program Planning and Management Comparison Table key: - = no activity; /- = limited activity; / = Some activity; /+ = significant activity. Have a program implementation and Utilize third-party implementers when appropriate Avista / March 2013 Staff_PR_47 Attachment C Page 6 of 62 Implementation Plan should also serve as a valuable roadmap for maintaining a clear outline of roles, responsibilities and communication, which is a best practice identified by the California Best Practices Project Advisory Committee.' For example, internal operations to be addressed by the Plan could include but are not limited to: o The steps involved in rebate processing o Who is involved in program design changes and decisions o Roles and responsibilities of implementation staff, PPA staff and Account Executives o Information that is required to be entered into Saleslogixx . QA and QC activities o Criteria for pre and post project inspections, unless documented elsewhere. Includes things such as defining risk parameters and the M&V activities that are implemented based on IPMVP options. Cadmus included PPL Electric's organizational chart as Attachment C, which outlines the roles and responsibilities for their energy-efficiency programs, and may serve as a helpful example to Avista. I Quantum Consulting. National Energt Efficiency Best Practices Study, Volume NR5 - Non-Residential Large Comprehensive Incentive Programs Best Practices Report. December 2004. Available online at: http://www.eebestpractices.com/pdf/BP NR5.PDF. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 c 5A3.467.7110 o Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com Avista / March 2013 Staff*PR*47 Attachment C Page 7 of 62 Utilize Third-Party lmplementer Expertise to Provide Cost-Effective Administrative and Technical Support when Appropriate Finding: In previous years, Avista's program managers have reported experiencing time constraints when managing the daily operations of programs, and account executives have noted that customer assistance to Site Specific Program participants consumes as much as 50o/o of their work week. However interviews with implementation staff in 2013 indicated that despite the increased volume ot rebates for lighting (from the T8 firesale), rebates were processed in a timely fashion and the program received the human resources it needed to keep the program on track. Currently, the EnergySmart Grocer Program (operated by Portland Energy Conservation Inc, (PECD) and the Green Motors Initiative (operated by the Green Motors Practices Group) are delivered by third- party implementers. Avista is responsible for all planning, implementing, and operating all programs. Recommendation: Moving forward, Avista should continue to monitor the time constraints and in-house resources associated with implementing full-scale DSM programs, and evaluate the costs and benefits of contracting with a third-party implementer to assist with certain tasks where necessary. Doing so may help Avista maximize program effectiveness as programs mature and re gulatory requirements evolve. Successful DSM programs often provide a full menu of services to the customer, which includes incentives as weli as marketing opportunities, technical assistance, training, and education.2 With the growing need for these services, it is common practice for utilities to obtain the services of a 2 York, Dan, M. Kushler, and P. Witte, American Council for an Energy-Efficient Economy. Compendium of Champions: Chronicling Exemplary Energt Efficienqt Programsfrom Across the U.S. Report Number U081. February 2008. Available online at: www.aceee.org/sites/defaulVfiles/publications/researchreports/lJO8l .pdf The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 o 503.467.7110 + Fax 503.228.3696 An Employee-Owned Company I www.cadmusgroup.com other nonresidential Staff PR_47 Attachment C Page I of 62Avista / March 2013 third-party implementer due to limited in-house capacity and resources. In their second national review of exemplary energy-efficiency programs, the American Council for an Energy-Efficient Economy (ACEEE) identified collaboration with third-party program administrators as a successful management approach to "leverage resources and reach broader areas" among the reasons and benefits of using third-party implementers.3 Proactively Address Market Barriers by Testing lnnovative Delivery Channels for Hard-to-Reach Market Segments Finding: To help promote the Tl2-to-T8 conversion effort in2012, Avista hired short-term employees to target high-density retail and local business areas. The staff canvassed small businesses on foot and promoted the program in-person in order to overcome challenges presented with reaching this segment. Additionally, through their partnership with the Northwest Energy Efficiency Alliance (NEEA) and its Better Bricks initiative, Avista helps to raise awareness about green leases among commercial real estate customers to overcome the split- incentive barrier. Overall, Avista may be missing more permanent opportunities to reach small business customers and commercial leased facilities, which could be addressed through program design and delivery changes. While partnerships with NEEA is standard practice among IOUs in the Northwest, Avista could do more to directly develop DSM program offerings that tackle hard-to-reach segments. Overall, Avista staff reported that they do not have a systematic process in place to source ideas for new programs or to develop, evaluate, and launch new offerings or deliveries. Rec o mme n dat io n : Avista should explore delivery mechanism pilot programs for leased facilities or small businesses, such as a direct install service where the rebate is paid to the contractor to reduce upfront costs for small businesses, or a program targeted specifically at commercial building owners. This could be conducted on a limited time basis, or be offered to a limited number of participants. Examples of these types of delivery channels are explored in greater depth later in Attachment D. Successful DSM portfolios have a history of providing programs that change over time in order to ' Ibid. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 c 503.467.71'10 o Fax 503.228.3696 An Employee-Owned Company o www.cadmusgroup.com Staff PR 47 Attachment C Avista / March 2013 Page 9 of 62 accommodate the market and the introduction of new technologies.a In recent years, it has become more common for utilities to develop specific delivery channels to address the unique challenges and circumstances of various customer groups. Two examples of innovative program delivery are discussed in Attachment D: 1) programs directed at commercial building owners to overcome the tenant-landlord split incentive, and 2) programs that offer financing for small business customers. Trade Ally Network Best Practices Growing and maintaining a robust network of reliable trade allies is a strategic investment that can alleviate administrative tasks, enhance customer experience, and improve marketing and program awareness.s The Energy Trust of Oregon describes trade allies as"valued ambassadors in the field," because they often serve as the face of the utility through extensive interaction with customers. Cadmus' best practice review revealed that engaging the trade ally community is critical for utility program success.u The best practice approaches to building a trade ally network, which are highlighted in Table 3 and the following text, include: o Having a formalized trade ally network that entails a simple screening and registration process; . Including a dedicated section for trade allies on the utility Website, with resources; and. Keeping trade allies well informed of the program offerings, changes, and processes through regular communication and education and training opportunities. U.S. Environmental Protection Agency and U.S. Department of Energy. National Action Planfor Energt Efficiency. Chapter 6: Energy Efficiency Program Best Practices. 2007. Available online at: http://lvw w.epa. gov/cleanenerey/documents/suca/napee_chap6.pdf. Quantum Consulting, 2004. Hartwell, Ray and R. Spring. Leveraging a Regional Trade Ally Network to Help Vendors and Customers Connect with Varied Utility EfJicienqt Programs across Multiple, Closely-Packed Service Territories. ACEEE Proceedings.2010. Available online at: http://www.aceee.org/files/proceedings/2010/data/papers/2088.pdf. The Cadmus Group, lnc. 720 SWWashington Street, Suite400, Portland, OR 97205 o 503.467.7110 r Fax 503.228.3696 An Employee-Owned Company o www.cadmusgroup.com Table 3. Trade Ally Network Comparison Table key: - = no activity; /- = limited activity; / = some activity; /+ = significant activity. Have a formalized network with screening and registration Include a dedicated Website section for kade allies Keep hade allies informed through regular communication and education Avista / March 2013 Staff_PR_a7 Attachment C Page 10 of62 Have a Formalized Trade Ally Network that Entails a Simple Screening and Registration Process Finding: While Avista leverages the'Northwest Trade Ally Network (TAN) for informing commercial lighting contractors about program opportunities, it lacks a formal trade-ally network for contractors and vendors. Recommendation: Avista should consider establishing a formal trade ally network for contractors and vendors, and encourage registration through network meetings and an application process. By requesting that trade allies register, Avista could gather more information about their service areas, expertise, certifications, and other valuable information. The trade ally registration would facilitate the development of an active group of motivated market actors. We recommend Avista Take steps to move the discussion forward on how a formal Avista Trade Ally network would be managed and how registration would work. Avista could establish a committee including representatives from all involved departments (Account Executives, Implementation, Legal, PPA) to continue exploring the necessary steps and the pros and cons of this approach. At a minimum, utility programs should facilitate basic participation in a trade-ally network, which provides the following core benef,tts:' o Ensures that the trade ally community is familiar with program processes and technical specifications;o Allows the utility to closely collaborate with trade allies for program marketing and promotion; o Provides opportunities for trade allies to facilitate technical and administrative assistance for customers; and o Enhances the utility's knowledge of the trade allies, the specific markets they serve, and any barriers to new opportunities for participation. Formalizing the trade ally registration process by including screening applications or participation agreements can serve the dual purposes of protecting utilities against possible liabilities and ensuring the contractors hold the proper insurance, certifications, and legal requirements to perform their services. See Attachment E for an example of an E-Power Trade Ally Application from PPL Electric. Three major clauses in the agreement serve to protect the utility from liability (paraphrased here): l. The Trade Ally agrees that it is not a contractor, subcontractor, or agent of PPL, and as such PPL shall have no liability for claims of any kind for loss or damage. 2. The Trade Ally agrees that it will not refer to PPL in its own advertising or publications, without prior approval. 3. The Trade Ally acknowledges that its participation in the program is in no way an endorsement by PPL of the company's work. 7 rbid. The Cadmus Group, lnc. 720 SWWashington Street, Suite 400, Portland, OR 97205 o 503.467.7110 r Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com Staff PR 47 Attachment C Avista / March 2013 Page 11 of62 lnclude a Dedicated Trade Ally Section on the Utility Website with Resources and Participation Guidelines Finding: Avista's Website currently lacks resources designed specifically for trade allies, and is missing information about how a vendor or contractor could reach Avista or learn more about recommending their rebate programs. However, Avista is currently in the process of developing a website for vendors to log-in to obtain marketing resources and other program information. Recommendation: Consider adding a more public-facing section for trade allies to the current business Webpage in addition to the marketing and communications site that is under development. Trade ally Webpages typically provide detailed program information and resources, such as rebate forms, newsletters, program-specific factsheets, and frequently-asked questions (FAQs) about the participation process. This dedicated Webpage can provide a one-stop-shop for information about the program. Many utilities include archived workshop presentations and technical Webinars, as well as information or links that facilitate easy onboarding and registration. At the minimum, it should be a page with information to learn more about Avista's programs, who to contact, and a way to sign-up to get on the mailing list, even if Avista does not have a formal network. All of the benchmarked utilities had a dedicated section for trade allies on their Website. Pacific Power's business Webpage provides an example of a dedicated trade ally Webpage with comprehensive resources (http://www.pacificpower.net/bus/se/vendors.html). The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 o 5A3.467 .71 10 . Fax 503.228.3696 An Employee-Owned Company . www.cadmusgroup.com Avista / March 2013 Staff_PR_47 Attachment C Page 12 of62 Keep Trade Allies Well lnformed Through Regular Gommunication and Education and Training Opportunities Finding: Avista has developed and maintains a mailing list of contractors and vendors, which it uses to inform trade allies of energy-efficiency program opportunities, changes, or upcoming events. Avista also sponsors periodic technical training sessions for trade allies who are interested in leaming more about energy-effrciency programs through the TAN, recently began hosting power breakfasts for customers and trade allies to learn more about available energy- efficiency rebates, and offers focus groups for lighting contractors. Recommendation: Avista should continue expanding its current outreach activities with trade allies by providing more frequent communication; hosting in-person trainings on program elements such as eligibility requirements, application processes, and qualifying measures; and providing assistance with customer promotional efforts. It is important to provide ongoing outreach and offer training opportunities for trade allies, particularly those that work with customers directly to install equipment or promote programs. Providing these market actors with technical details and periodic program updates will ensure that they only communicate the most up-to-date information to the customer. Having more knowledge about rebate programs may also enhance trade allies' likelihood to discuss these types of programs with the end-user." Marketing and Outreach Best Practices In delivering DSM programs, successful marketing can be accomplished through various avenues while promoting rebate progrtrms, leveraging utility brand recognition, and communicating cost-savings andother benefits of energy efficiency.e The following outreach best practices are outlined in Table 4, and highlighted for their effectiveness in reaching business customers: Including easy-to-find program descriptions on the Website, including benefits fbr participants and customer testimonials; Using direct outreach, where cost-effective, to identiff customer-specific issues and build relationships; and Leveraging trade allies to promote programs. 8 9 Quantum Consulting, 2004. U.S. EPA and U.S. DOE,2007. The Cadmus Group, lnc. 720 SWWashington Street, Suite400, Portland, OR 97205 e 503.467.7110 r Fax 503.228.3696 An Employee-Owned Company . www.cadmusgroup.com Avista / March 2013 Staff_PR*47 Attachment C Page 13 of 62 Table 4. Marketing and Outreach Comparison Table key: - = no activity; /- = limited activity; y' = some activity; r'+ = significant activity, Use direct outreach by account executives, where cost-effective lnclude Easy-to-Find Program !nformation on the Website, lncluding Benefits for Participants and Customer Testimonials Finding:Avista provides a comprehensive list of rebates and incentives for C&I customers on their Website, as well as numerous customer case-studies and testimonials. Avista's marketing team has been updating the energy efficiency program Website and finding ways to make the information more user friendly for business customers, and is currently planning a website overhaul. It's also planning updates to its everylittlebit campaign material to focus on case-studies for more specific measures. Recommendation: In the new web design, continue finding ways to make the business rebates Webpage more user friendly for C&I customers, such including as many cross-links to case-studies as possible. Additionally, Avista could consider making cost-saving information available by measure, to help make the business case for energy efficiency. Xcel Energy's program brochure for its rooftop air conditioner rebate (shown in Spotlight section) provides a good example of communicating the business case. While nonresidential customers typically respond to tailored marketing approaches, utilities should not underestimate the importance of Website content and message development. Large C&I customers tend to be well-informed, so driving prospective participants to a program Website while Lifetime srvin{s you crn see lor yoursell How much you'll save by choosing an energy-effici ent air condit i0nBr over standard equipment reallyadds up. You waste thousands of dollars by choosing the least-expensive unit at purchase time, ffirrtnn -+,#lJiiuftn IrtrIil 10 tsn 15 toi! Fooftop At size The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 o 503.467.7110 r Fax 503.228.3696 An Employee-Owned Company . www.cadmusgroup.com Avista I March 2013 Staff*PR_47 Attachment C Page 14 of62 minimizing investments in traditional advertising can be effective.l0 A well-designed Website should also showcase business testimonials and emphasize cost savings: two important tactics for reaching business customers. I I Use Direct Outreach, Where Cost-Effective, to Address Customer-Specific lssues and Build Relationships Finding: Avista emphasizes direct outreach with customers through e-mails, phone calls, and personal visits from account executives on a regular basis. Program staff reported that a number of efforts are additionally underway to inform customers about the utility offerings, such as face- to-face meetings, focus groups, breakfast meetings, and other featured events. Of the benchmarked utilities in this memo, Avista is one of only two that lists account executives by name and region on their Website, and that consistently encourages business customers to contact their representative with questions about the rebate or the application process. Recommendation: Continue to encourage direct contact between program staff, account executives, customers, and trade allies, where cost-effective. Personal marketing and direct outreach offer the opportunity to tailor program promotion to specific business challenges or contexts.'' This type of outreach is especially cost-effective for large C&I customers that have a significant potential for energy savings, and offers the added benefit of high customer satisfaction and, in some cases, repeat participation. Leverage Trade Allies to Promote Programs Finding: In 20ll , 37yo of Avista's Site Specific and Prescriptive programs' participants reported learning about the programs from a trade ally (as compared to just l5o/o of participants in 2010). While more of Avista's business customers are now reporting that they are learning about the programs through trade allies than in years past, contractors were still not consistently promoting the program in20ll, particularly lighting vendors. Figure I compares other utilities benchmarked in this memo to illustrate the relative proportion of commercial customers typically learning about the program from a trade ally. Avista's data is from 2011. In2012, Avista made several key changes to how it leveraged trade allies, especially lighting vendors, as part of its T8 marketing push. Because incentives for converting T12s to T8s were phased out in 2012, Avista made a sweeping effort to promote rebates to all C&I customers based on this urgency. Part of this effort included partnering with vendors to co-brand marketing materials and distribute marketing kits, which was viewed as very successful by program staff. l0 il t2 Quantum Consulting, 2004. rbid. Ibid. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 o 503.467.7110 r Fax 503.228.3696 An Employee-Owned Company o www.cadmusgroup.com Avista / March 2013 Staff*PR_47 Attachment C Page 15 of62 Figure 1. Percentage of Commercial Customers Hearing About Programs from Trade Recommendation: Avista should continue this approach to leverage trade allies for program promotion, including exploring similar strategies for non-lighting measures. Marketing utility effrciency progftrms through trade allies is widely accepted as an effective way to increasi participation.'3 Unde, this approach, the trade allies may constitute much of the on- the-ground marketing presence for the program, which is a natural role for them because their businesses benefit from utility rebates and incentives for energy-efficient equipment.l4 Enrollment Process Best Practices Enrollment process best practices incorporate efficient approaches from the utility and customer perspectives. Employing best practices in this area can streamline pro$am delivery, improve customer satisfaction, and facilitate evaluation activities. For nonresidential programs, this section explores the following enrollment processes, listed in Table 5: o Ensuring that participation procedures and eligibility are clearly defined, documentation requirements are reasonable, and forms are understandable;o Providing technical services as part of site-specific or custom progam offerings, in the form of an energy assessment, audit, baseline study, or technical study, ando Integrating all fields on application forms, tracking databases, and extract databases to provide complete and consistent data. r3 Quantum Consulting,2004.ra Hartwell and Spring,20l0. Allies, bv Utilitv 60% 55o/o 50o/o 45o/o 40% 3s% 30% 25% 20% 15% 10o/o The Cadmus Group, lnc. 720 SW Washlngton Street, Suite 400, Portland, OR 97205 o 503.467.71'10 r Fax 503.228.3696 An Employee-Owned Company e www.cadmusgroup.com Avista / March 2013 Staff*PR*47 Attachment C Page 16 of 62 Table 5. Enrollment Process Comparison Table key: - = no activity; /- = limited activity; / = some activity; /+ = significant activity. Provide technical services for site-specific Ensure that Participation Procedures and Eligibility are Clearly Defined, Documentation Requirements are Reasonable, and Forms are Understandable Finding: Avista's prescriptive rebate enrollment processes are fairly straightforward, with easy- to-find eligibility requirements and downloadable applications available on the Website. The Site Specific Program Webpage lacks information regarding eligibility and enrollment guidelines, and applications are not available. Some participants have indicated dissatisfaction with cumbersome application processes and long approval times. Recommendation: Consider ways to streamline the Site Specific Program enrollment processes and manage customer expectations. Avista's Web content could be improved to provide The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 . 503.467 .71 10 r Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com DP&L reviews the application and verifies the information proulded. We reseru9 tl9 right to conduct a'n:audit;oi yoiur exi$ng'eQiip'ment'(ihe; basetine) and/or the facility as part of our application review. DP&L approves or denies the application. We witt attempt to notify you of our decision You provide us with proof of iiurchasi ol inteiito puichaie,,within 60,days, This may You complete your project instatlation within 120 days of application approval and notrfy ii. You,.nustpllinide a final,',itbmizaid inuoicdiefl=;s1inn 1re-fruC'cosfs of ' purchaising aid initalling the eneigy*awngi measure,(in,Cludinlg,,?!! migteriali,labo;r; and equipment discoun@ as .well as equipmdnt'idrial nimbers;.lf.the iistallation does not occur within 120 days, you must request an extension. Ertension approvals witl be granted on a case-hy-case basis. We release your funds to you within 30 days. DP&L reserves tlt e right to inspect the system(s/ prior to releasing any funds to ensure compliance with the program Terms and Conditions. Avista / March 2013 Staff_PR_47 Attachment C Page 17 of 62 customers with a sample application that includes enrollment processes, requirements, and eligibility guidelines. Consider including guidelines in the form of an FAQ. Making these processes more transparent may help manage participant expectations regarding approval and rebate timing. DP&L's Website information, summarized below, may serve as a helpful template. The National Action Plan for Energy Efficiency advises utilities to provide clear directions and sufficient information, while collecting only the minimum necessary data from customers to inform energy savings calculations and EM&V efforts. This is because onerous or confusing participation rules, procedures, and paperwork can be a major deterrent to participation.ls Additionally, a program that potentially delays equipment installation will have fewer participants. For example, one of the benchmarked utilities had a high partial participation rate, and approximately 20Yo of partial participants that dropped out of the program went on to complete their projects, indicating that challenges with processing and approval time outweighed incentive amounts. Provide Technical Services for Site Specific or Gustom Program Offerings in the Form of an Energy Assessment, Audit, Baseline Study, or Technical Study Finding: Avista has dedicated engineers on staff who provide technical assistance for some site- specific projects, but may benefit from a more formalized approach to this service in order to help businesses identiff custom energy-efficiency solutions. Avista staff indicated that approximately 20o/o of Site Specific Program projects receive a facility scoping audit. Recommendation: Avista should explore the possibility of developing a formal technical service component for the Site Specific Program. This component could help to address market barriers businesses typically encounter, such as a lack ofstaffresources and technical expertise. It could also uncover new opportunities for savings, as opposed to waiting to conduct a facility audit after the customer has applied for a Site Specific Program incentive. Across the benchmarked utilities, custom rebate programs are often accompanied by technical services, which come in the form of incentives or as a free service and are used to assess baseline energy performance and identify new opportunities for capturing energy savings. By offering technical services, utilities can help customers uncover equipment or system upgrade options that they may not have otherwise identified, and possibly drive enrollment in both site specific and prescriptive programs. Most of the benchmarked utilities provide technical assistance, but to varying degrees. Table 6 summarizes the benchmarked utilities' different incentive structures and provides information about how they incorporate technical services into custom programs. '5 U.S. EPA and U.S. DOE,2007. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 o 5A3.467.7110 o Fax 503.228.3696 An Employee-Owned Company + www.cadmusgroup.com Avista / March 2013 Staff_PR_47 Attachment C Page 18 of 62 Table 6. Technical Assessment Incentive Structures Provides vendor-neutral energy analysis for custom projects to identify opportunities and quantify Engineers review energy consumption at the customer's facility and assess cosleffective Rebates for comprehensive energy audits, as well as offering for in- depth engineering analysis. Customer cost capped at $300 for audits and 25% of the cost of Rebates for Technical Energy Audits (TEAs) and for installing energy- saving measures identified through those studies. Covers 50% of the cost of the TEA plus performance rebates of $250/kW reduced after installation Rebates for eligible facilities to receive technical studies as part of a custom project or as a stand-alone rebate. Covers up to 100% ofthe technical study if recommended measures are installed; 50% as stand-alone lntegrate Fields on Application Forms and Tracking Databases, and Extract Database Services to lncorporate Complete and Consistent Data Finding: Although Avista has made improvements to some of their data tracking systems, the participant and customer databases still exhibit a lack of integration. Also, certain data for nonresidential programs were reported inconsistently, or were not tracked. Avista is currently in the process of working with Oracle to develop a new Customer Care and Billing system, which includes the development of a Customer Relationship Management component. The new system will include residential and low-income rebate program data but will not include non-residential dataatthis time. Recomme ndation : Avista should ensure that data are consistently tracked to reduce errors and improve quality control. In the long- run, continue to explore the development of an integrated customer information system and non-residential pro gram The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 . 503.467.7110 o Fax 503.228.3696 An Employee-Owned Company r vrrww.cadmusgroup.com Avista / March 2013 Staff PR 47 Attachment C Page 19 of62 database. A well-designed tracking system should collect the information needed for successful program implementation and evaluation. Best practice research suggests that program tracking systems should include, at a minimum: a unique customer identifier; measure information such as equipment type, size, quantity, and efficiency level; and program activities with dates and costs.r6Further, analyses are aided by having a single integrated database, which idealty is linked with other appropriate systems, such as cross-progftrm databases, customer information systems (CIS) and markeiing or customer relationship management systems.lT Integrating data in this way provides program managers and evaluators with the opportunity to identify trends and proactively address tracking or program design issues in a timely fashion. PPL Electric's Energy Efficiency Management Information System (EEMIS) database provides an example of an integrated tracking database. I 8 Evaluation, Measurement, and Verification Best Practices Evaluations enable an ongoing feedback mechanism between program staff, market actors, and evaluators. This feedback then helps program implementers to make timely program improvements. Best practices reviewed in this area are summarized in Table 7 and include: o Conducting regular pre- and post-inspections for projects with highly uncertain baseline conditions, particularly large projects. o Conducting process and impact evaluations routinely. o Measuring freeridership and spillover in order to gather information about market impacts, and used to adjust target populations or eligibility as necessary. Table 7. Evaluation, Measurement, and Verification Comparison Conduct regular pre- and postinspections of projects Table key: - = no activity; /- = limited activity; y' = some activity; r'+ = significant activity l6 l7 IE rbid. Quantum Consulting, 2004. See: PPL Electric and The Cadmus Group, Inc. PY2 Final Annual Report to the Pennsylvania Public Utility Commission. November l5,20ll (Conected). Available online at: http ://www.ppl electric.comAlR/rdonlyres/A AADC5 05 -0C80-4 B2 8-83 04- I 3 8 I 90FDD I D2l0/PPL_PY2_Annual Repom corrected.pdf. The Cadmus Group, lnc. 720 SWWashington Street, Suite 400, Portland, OR 97205 o 5A3.467.7110 r Fax 503.228.3696 An Employee-Owned Company . www.cadmusgroup.com Avista / March 2013 47 Attachment C Page 20 of 62 Conduct Regular Pre- and Post-lnspections for Projects with Highly Uncertain Baseline Conditions, Particularly Large Projects. Finding: Avista's pre- and post-inspection requirements vary by program. Avista requires pre- installation inspections for all EnergySmart Grocer Program projects. For Site Specific Program projects, Avista determines whether to conduct a pre-inspection based on risk, and conducts facility audits approximately 20Yo of the time. However, all Site Specific Program projects require a post-inspection. Prescriptive Program projects have no specific requirements for pre- inspections, and Avista conducts post-inspections for projects with a perceived high risk (e.g., projects with new trade allies, issues with paperwork). Post installation inspections for prescriptive projects are often conducted in the form of an installation check or count of fixtures, and carried out by either program staff or Account Executives on-site. Recommendation: To ensure a more transparent approach, Avista should consider clearly defining and documenting its pre- and post-inspection policies and procedures. For example, this could include determining a sampling approach to ensure a more rigorous methodology to Site Specific Program project pre-inspections, including baseline metering, or establishing a size parameter based on kWh for Prescriptive Program projects to determine whether pre- and post- inspections are necessary. For site specific or custom projects, savings cannot always be accurately estimated on an ex post basis.le Pre-inspections will often be necessary to develop a baseline of energy usage, allowing the evaluators to report reliable savings once the project is complete. Projects that involve measures such as compressed air, industrial process retrofits, or system upgrades in particular may have varying baselines and savings, and pre- a11l post-inspections should be conducted on a routine basis for a random sample of these projects.'" Conduct Process and lmpact Evaluations Routinely Finding: Avista is one of three utilities identified in this best practice review that conduct both process and impact evaluations annually on a portfolio-wide basis. Furthermore, Avista has internal EM&V capacity in their engineering staff and the Policy Planning and Analysis team. Recommendation: Avista should continue conducting routine evaluations, in which it staggers process and impact tasks to enable the incorporation of results on a relatively real-time basis. Avista should also continue to leverage internal EM&V capacity to inform program implementation decisions as needed. Best practice research strongly recommends routine evaluations of C&I programs to monitor market trends while also allowing for continuous improvement of program design and delivery.2l Overall, the benchmarked utilities tend to conduct evaluations on a semi-regular basis, with varied timing. re QuantumConsulting,2004.20 Ibid.2r Quantum Consulting,2004; U.S. EPA and U.S. DOE,2007. Staff PR The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 . 503.467 .71 10 + Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com Avista / March 2013 Staff_PR_47 Attachment C Page 21 of62 Measure Freeridership and Spillover in Order to Gather lnformation About Market Impacts and to Adjust Target Populations or Eligibility as Necessary Finding: Avista recently began assessing freeridership and spillover in response to an MOU with Idaho Public Utility Commission staff. Avista updates these assessments when necessary and reasonable during ongoing portfolio-level process and impact evaluations. Recommendation: Avista should continue monitoring freeridership and spillover estimations during routine evaluations, and should explore opportunities to work with stakeholders on measuring gross and net savings as regulatory compliance discussions in the arena evolve. Although measuring freeridership and spillover can be challenging, critical knowledge about program effectiveness can be gained through these analyses. Best practice research recommends including freeridership and spillover estimations in program evaluations.'2 Even where calculating and reporting a net-to-gross ratio is not a regulatory requirement, understanding the market effects will help program staff and implementers modify the program design to avoid freeriders. 22 QuantumConsulting,2004. The Cadmus Group, lnc. 720 SWWashington Street, Suite400, Portland, OR 97205 c 503.467.71'10 r Fax 503.228.3696 An Employee-Owned Company o www.cadmusgroup.com longer-term expected outcomes. Goals and goal setting are commonly explored topics in energy- efficiency program best practice literature." This section explores the key goal-setting best Staff_PR_47 Attachment C Avista / March 2013 _ P:ees ??pl ??- Program Goal-Setting Energy-efficiency portfolio goals are critical for guiding day-to-day program activities and practice: Have well documented and articulated goals. The results of our comparative review for this best practice are summarized in Table 8. Best Practice: Have Well Documented and Articulated Goals Finding: Cadmus believes this best practice is achieved when two components are clearly articulated in program plaruring and management documentation and employed in program implementation: o Articulating goals: what the utility is hoping to accomplish through the implementation of the energy-efficiency program or programs (i.e., energy savings, increased customer satisfaction, etc.); and . Tracking progress toward goals: how well the utility is doing compared to stated goals (e.g., number of rebates processed to date, expected energy savings, significant upcoming program changes or challenges). Through document review and conversations with program staff, we find that Avista generally addresses the first area of this best practice: articulating goals. Avista's PPA and implementation teams outline energy-efficiency program plans and objectives in an annual DSM business plan. The plan summarizes business planning developments, supporting efforts (e.g., program outreach), and issues identified in the previous year for management focus. This document is accompanied by various other supporting materials developed or commissioned by the PPA and implementation teams that address program offerings, implementation, and management. These supporting materials include conservation reports, EM&V plans, and an intemal DSM procedures manual. The intended audience for these materials is utility staff, stakeholders, and commission staff--not customers. 23 Iffon, Inc. National Energt Eficiency Best Practices Study, Volume Pl-Portfulio Best Practices Report. p. l- 41. July 2008. Available online at: http://www.eebestpractices.com/pdf/Portfolio_BP Report.pdf; KEMA. National Action Planfor Energt Efficiency. Chapter 6,p.6-28. July 2006. Available online at: http ://ww w.epa. gov/cleanenergy/documents/suca/n apee_report.pdf. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 c 503.467 .71'10 r Fax 503.228.3696 An Employee-Owned Company e www.cadmusgroup.com Table 8. Goals and Objectives Table key: - = no activity; r'- = limited activity; / = some activity; /+ = significant activity. Avista I March 2013 Staff*PR_47 Attachment C Page 23 of 62 Avista informs participating customers of program goals and the impact of their program participation in the form of a "Thank You" letter sent out after the rebate application has been processed. The content of the letter is non-technical in nature and provides a high-level summary. Avista's program planning and operation documents are robust, focusing on program impacts (energy savings) and cost-effectiveness. These materials are consistent with Washington's I-937 and other regulatory requirements, and also take into account Avista's integrated resource planning, changes in avoided costs, and some market transformation activities such as the regional efforts conducted by the Northwest Energy Efficiency Alliance (NEEA). Despite these strengths, we find that planning materials generally do not give focused attention to the market transformation effects of Avista's portfolio of programs, nor to goals related to program processes. Objectives cited in the benchmarked utilities' planning materials include: o Markettransformation, . Improved system reliability, o Reduced customer bills,o Environmental goals, o Renewable energy goals, o Addressing underserved markets, o Low-incomeaffordability, o Economic development, ando Improved customer quality of life. Further, we find that additional room for improvement may exist in the second area of this best practice: tracking progress toward goals. Avista prepares two files each quarter and disseminates them to program staff and stakeholders: l) an Excel@workbook that summarizes program participation, spending, expected energy savings and other metrics, and2) a quarterly stakeholder newsletter that articulates major program changes, accomplishments, and upcoming activities. While these items are thorough, we find that some room for improvement may exist more generally in communication protocols that could increase intemal awareness of program progress toward goals. Successful program implementation and management requires specific and clearly articulated targets against which to compare program performance. Tracked metrics should align with overarching utility goals. For example, a utility interested in increasing its JD Power and Associates rating should track customer satisfaction in energy-efficiency programs. These goals will serve as a roadmap for ongoing program management and development, and will inform program evaluation. Further, some utilities have had success using energy-effrciency activities and goals as a prominent feature on their Website and marketing materials. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 c 503.467.7110 o Fax 503.228.3696 An Employee-Owned Company . www.cadmusgroup.com 24 ol 62 Recommendations: Avista should consider including or highlighting the market transformation effects of Avista's portfolio of programs in program planning documents along with energy savings goals. Avista should establish a communications protocol for program progress reports to increase internal awareness of program progress toward goals. Consider developing a simple monthly progress report and disseminate report to all program implementation staff. o The document should clearly articulate all program goals and progress toward those goals (including kwh, kW, Therms, expenditures, number of participants, etc.) at the portfolio, sector, and program level. o Reports should also highlight significant recent accomplishments as well as upcoming critical issues or decisions.o Reports should be detailed but accessible for a non-technical audience. Program Planning and Design Program planning should follow a well-structured and data-driven approach. A commonly-cited national best practice study2a notes the following possible benefits: o "Consistent development of the overall portftlio and underlying program plans, including goals, incentive levels, and other program attributes;c Well-designed programs incorporating industry best practices, market and technologt research, and inputfrom key stakeholders (such as trade allies);o Stakeholder buy-in (if a collaborative process is used); ando Quantitative and qualitative benchmarla to monitor program performance against." The following program planning and design best practices are most appropriate for Avista: o Conduct baseline research and market assessments;o Develop complementary programs; and o Develop programs and measure offerings that target energy-saving potential in all major market segments. Table 9 provides a summary of our benchmarking findings for these best practices. 24 Iffon, Inc.2008. Staff_PR_47 Attachment C / March 2013 The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 c 503.467.7110 o Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com Avista I March 2013 Staff*PR_47 Attachment C Page 25 of 62 Table 9. Program Planning and Design Table key: - = no activity; /- = limited activity; / = some activity; /+ = signifissnt activity. Develop programs and measure offerings that target energy-saving potential in all major Conduct Baseline Research and Market Assessments Finding: Avista has consistently shown a strong commitment to baseline research and market assessments. Avista has several full-time program planning staff, who also function as liaisons between program implementation staff, stakeholders, and third-party evaluators. In recent years, Avista has contracted several independent studies, and used findings from these studies to inform their program planning. Recent examples include: l) an in-depth self-report Net-To-Gross study, 2) regular updates to their Technical Reference Manual (TRM), and 3) an assessment of energy- efficiency potential (potential study) in their service area. Recommendation: As current market conditions continue changing, Avista should maintain its commitment to regular baseline research and market assessment. Regular baseline research will provide necessary information for successful program planning, goal-setting, and establishing credibility with stakeholders. Further, this work will-help ensure accurate energy savings and cost-effectiveness calculations. A review ofliterature2s indicates that baseline research should focus on: o Quantity, saturation, and characteristics of installed equipment; o Energy consumptions; . Load shapes; o Market trends; . Energy-efficiency behavior; and Itron, Inc. 2008; KEMA,2006, p. 6-30 and6-43; and Pacific Gas and Electric Company. Best Practices Benchmarkingfor Energt Efficiency Programs: BP Self Benchmarking Tool. Available online at: http://ww w.eebestpractices.com/benchm arkin g.asp. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 . 503.467.7110 r Fax 503.228.3696 An Employee-Owned Company + www.cadmusgroup.com Staff PR 47 Attachment C Avista / March 2013 Page 26 of 62 o Customer beliefs and decision-making. Market assessments inform program planning and implementation. The literature suggests that the data obtained through these practices should address: o Who the market actors are (and who should be targeted by the program); o What the barriers are to increased adoption of energy-efficient equipment; and o Strategies and approaches for addressing market barriers. Develop Complementary Programs Finding: Avista specifically targets customers who have recently participated in an energy- efficiency progftlm with follow-up marketing materials to ensure customers are aware of additional savings opportunities. Implementation experience and ongoing evaluation activities indicate program participants often apply for more than one measure and are more receptive to making additional energy-efficiency improvements in their homes than current nonparticipating customers. Avista maintains a well-developed and implemented program planning process. However, a review of program materials suggests that program planning does not include an explicit emphasis on developing complementary programs. For example, along with considering wholly new program and measure designs, Avista should consider adding measures that can be conveniently bundled with existing offerings. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 , 503.467.7110 r Fax 503.228.3696 An Employee-Owned Company o www.cadmusgroup.com Avista / March 2013 Staff*PR_47 Attachment C Page 27 o'f 62 DP&L is an example of a utility leveraging an existing program. To capture additional savings in its Equipment Prescriptive HVAC Rebate Program, DP&L had the program implementer identiff the program's top performing contractors and personally invite them to participate in the new residential HVAC Tune-Up Program. DP&L was able to expand its program offerings with little additional, administration, market research, or contracting expenses. Recommendation : To reduce implementation costs and leverage exi sting implementation resources, Avista should consider the complementariness of program and measure offerings during planning. Develop Programs and Measure Offerings that Target Energy- Saving Potential in all Major Market Segments and Equipment Types Finding: Avista currently offers a robust suite of programs and measures across most major market segments, including some of the more difficult+o- reach segments, such as low-income customers. Further, Avista's measure offerings generally capture savings across a variety ofdifferent end-uses, from appliances to weatherization. However, due in part to changing market conditions, notably the decline in natural gas prices, in recent years, Avista has been steadily reducing the number and types of measures it offers as they become cost-ineffective. Avista has encountered similar challenges in the past and has responded by developing and implementing pilot pro$am to test new measure offering in less common or niche markets, with varying levels of success. Examples include a Financing Program and Home Energy Audit Pilot. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 , 503.467.7110 r Fax 503.228.3696 An Employee-Owned Company . www.cadmusgroup.com Staff_PR_47 Attachment C Page 28 of 62Avista / March 2013 Recommendation: Avista should continue to investigate new market segments, like existing multifamily, and new measure offerings, like whole-home retrofits,26 to ensure the continuation of its robust energy-efficiency portfolio. Literature on this subject2T and Cadmus' own experience indicates that portfolios should achieve energy savings through a balanced mix of program and measure offerings that target savings opportunities across all major market segments. This approach will provide the utility with the greatest flexibility in the face of changing effrciency standards, regulations, and market conditions. Balance should also extend to program implementation timing. Program implementation schedules, including actions such as ramping up advertising and introducing new programs, should be staggered if possible. This helps avoid a boom and bust energy-saving scenario, which is generally not conducive for developing longer-term relationships with trade allies or customers. Further, depending on the regulatory environment, utilities may not be able to carry over savings that exceed targets from year to year, and may find themselves struggling to meet savings targets in the years following a large scale program implementation effort. Program lmplementation Best Practices Well-conceived portfolio management and implementation practices lend themselves to efftcient, cost-effective, and satisfactory outcomes. Cadmus has found through research and our professional experience that successfully implemented energy-efficiency portfolios employ the following five best practices: 1. Clearly define the program implementation processes and roles of individual staff; 2. Leverage outside resources that could increase program uptake; 3. Pursue diverse marketing and outreach strategies; 4. Develop and maintain a robust program tracking database; and 5. Conduct regular quality control and verification inspections. Table l0 provides a summary of our benchmarking findings for these best practices. 26 27 Whole-home retrofit programs are explored in greater detail below. Itron, Inc.2008, p. l-49. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 t 503.467.7110 r Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com Avista / March 2013 Staff*PR_47 Attachment C Page 29 of 62 Table 10. Program Implementation Clearly Define Program lmplementation Processes and Roles of lndividual Staff Finding: As part of Avista's 2010 Multi-Sector Process Evaluation, Cadmus recommended simplifying and documenting the residential programs' organization structure in a program manual. The evaluation effort revealed that program staff time constraints may prevent the appropriate dedication of resources to ongoing program planning and long-term management. Recommendation: Expand on current DSM procedures manual to include a program theory and outline program operations. For example, program operations could include, but are not limited to: Clearly defined program staff roles Responsibilities of implementation stafl PPA staff, and Account Executives and how they interact Clearly defined incentive structures for each program Steps involved in processing rebates Clearly defined program systems (e.g., database software is defined by name, who will use it, and when in the process) Information that is required to be entered into program databases Specihc QA and QC procedures, including criteria for pre and post project inspections Definition of partnerships with other local or regional organization's programs The Cadmus Group, lnc. 720 SWWashington Street, Suite400, Portland, OR 97205 c 503.467.7110 o Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com o o a o a Clearly define the program implementation processes and roles of individual staff /+ Leverage outside resources that could increase program uptake /+/+ Pursue diverse marketing and oukeach strateqies {+/+/+y'+ Develop and maintain a robust program tracking database /+/+ Conduct regular quality control and verification inspections /+/+ Table key: - = no activity; /- = limited activity; y' = Some activity; r'+ = significant activity. Avista / March 2013 Staff_PR_47 Attachment C Page 30 of 62 Collaboration with third-party program administrators is a proren,28 successful approach for leveraging resources and reaching broader areas with common and consistent program services and messages. When deemed more cost-effectiy: than using in-house resources, implementation should be outsourced to a qualified third party." Third-party selection should be achieved through a competitive bidding process. Leverage Outside Resources that Could lncrease Program Uptake Finding: Through evaluation activities associated with the 201 I Multi-Sector Process Evaluation, Cadmus learned that trade allies working with the residential programs are willing to engage more directly with Avista and its programs. Recommendation: Avista should consider developing and maintaining a formal residential trade- ally network that provides program training and education. The training requirement should be a condition to participate in the program. The program should also provide retailer support, including point-of-sale materials, training, site visits, and other sales support strategies. Program administrators can reduce their effort and the program implementation costs by leveraging the wealth of trade allies' knowledge and experience, gained by working with industry leaders to deliver energy efflrciency to market.30 Successful programs involve collaborations among a broad spectrum of stakeholders and market actors, including architects, consulting engineers, designers, trade allies, manufacfurers, suppliers, retailers, government agencies, local governments, and other decision-making bodies. Pursue Diverse Marketing and Outreach Strategies Finding: The award-winning Every Little Bit campaign serves as Avista's main marketing driver. This broad-based marketing and outreach campaign, launched in2007, seeks to raise customer awareness regarding energy efficiency and rebate availability. Avista markets its residential programs through multiple channels, including TV, radio, online, and direct mail. Table 1l identifies the best practice marketing tactics, indicating which are used for Avista's campaign.3l 28 29 30 3l York, Kushler, and Wiffe,2008;KEMA,2006, p.6-10;and Pacific Gas and Electric Company. Avista currently has three programs that use third-party implementers: Simple Steps, Smart Savings, and Refrigerator Recycling. EM&V efforts targeting both the 2010 and 2011 program years revealed these programs to be very successful. York, Kushler, and Witte, 2008; and Pacific Gas and Electric Company. KEMA. 2006,p.6-10; and Pacific Gas and Electric Company. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 o 5A3.467.7110 r Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com Avista / March 2013 Staff PR 47 Attachment C Page 31 of62 Table 11. Best Practices Used in Avista's Marketing Direct Mail Yes Newspaper Yes Radio / TV Advertisinq Yes 0nline Advertising No Website Yes Videos Yes Bill lnserts / Newsletters Yes Brochures Yes Presentations / Meetings Yes Events Yes Kiosks / Demonstrations Yes Co-Branding Materials (with trade allies, partners, etc.)Yes* Referral Program No Social Media Outreach (e.9., Facebook)Yes Mobile Application No * Only one of Avista's residential programs uses co-branded materials. This review, supported by frndings from the 2011 Multi-Sector Process Evaluation, indicates that Avista currently employs several best practice marketing channels, but additional opportunities remain. Recommendation: Avista should continue having its portfolio communicated to customers via multiple media channels, such as trade allies, social media, bill inserts, etc. Avista could leverage recognizable brands to instill consumer confidence and promote general program and producl u***"s (e.g., utility branding, ENERGY STAR@ logo). Avista should make case studies available through the program's various marketing channels that reflect a wide range of technologies and segment applications. Marketing messages should highlight a broad range of program/measure benefits to the customer. When possible, benefits should be quantified in terms the customer can understand, and lifecycle costs should be emphasized.ln order to capture a broad audience, the messages should focus on both the energy and non-energy benefits (e.g., improved comfort, improved air quality) of energy-efficient products and practices. Additional marketing messages should be included that target specific subgroups, such as hard-to-reach customers. Develop and Maintain a Robust Program Tracking Database Finding: Avista's current program tracking has proved effective, but the data evaluability could be improved. In the 201I Multi-Sector Process Evaluation, Cadmus recommended that Avista ensure consistency in data tracked across multiple databases, including the multi-program database, the JACO database, the Home Energy Audit database, and Avista's central CIS database. Cadmus also recommended that if Avista continue the Home Energy Audit Program, The Cadmus Group, lnc. 720 SWWashington Street, Suite400, Portland, OR 97205 o 503.467.7110 o Fax 503.228.3696 An Employee-Owned Com pany + www.cadmusg roup. com Avista / March 2013 Staff_PR_47 Attachment C Page 32 of 62 audit tracking should be enhanced to include integration into the central CIS database, more robust tracking of data collected through the audits, and details on follow-through installations. Avista is currently in the process of developing a new, robust program tracking database called Customer Care and Billing. This system will provide numerous features that are not available through Avista's current program tracking such as marketing campaigns, and reporting. Avista will implement the new system in summer 2014. Features provided through the new system will likely address program data tracking issues and recommendations highlighted in the 201 I Multi- Sector Process Evaluation. Recommendation: Avista planning and implementation staff should maintain their active role in development of the Customer Care and Billing database to ensure the new system will address both program implementation and evaluation needs. All of the data requirements for measuring program success should be well defined and understood early in the program development process. These data requirements should reflect success indicators that flow from the program plan or theory. Literature suggests that an effective database must be both flexible and functional.32 The tracking system should feature internet-based data entry and reporting functions. It is important to have integration into the central CIS database and to have consistent tracking requirements across multiple program databases. The program should utilize an electronic application process, and online forms should be readily accessible to customers, subcontractors, trade allies, and program administration staff to allow for real-time uploads to the tracking system. All routine functions (e.g., monthly program reporting and financial tracking) should be automated as much as is practical. In addition, the tracking database should have fully automated data validation functions to assess data quality. The tracking system should be fully documented and up-to-date. Database and data entry users' manuals should be provided to all primary users. 32 KEMA. 2006, p. 6-l l; and Pacific Gas and Electric Company. The Cadmus Group, lnc. 720 SWWashington Street, Suite 400, Portland, OR 97205 e 503.467.7110 . Fax 503.228.3696 An Employee-Owned Company' www.cadmusgroup.com Staff PR_47 Attachment C Page 33 of 62Avista / March 2013 Conduct Regular Quality Control and Verification lnspections Finding: A review of Avista quality assurance and quality control (QA/QC) procedures indicates that, while robust, some room for additional development may exist. During interviews for the 2010 and 20ll Multi-Sector Process Evaluation effort, Avista staff indicated that QA/QC is typically conducted randomly (e.g., staff check in with participating retailers to ensure that all point-of-purchase marketing materials are displayed in accordance to program requirements) or in response to perceived issues. For example, due to some discrepancies in the quality of insulation trade allies' work, Avista increased the percentage of on-site verifications performed on insulation projects. QA/QC is important for determining program performance, ensuring quality installations, confirming program impacts, and heightening customer satisfaction. QC procedures should be based on a utility's relationship with vendors, the number of vendors involved, types of measures, project volume, and the variability of project size. If the program works closely with vendors and utilizes a pre-screened list of products, the need for QC inspections can be reduced.33 Recommendation: To ensure cost-effective M&V, the Avista program administrators should decide whether it is necessary to conduct routine inspections across all programs for a random sample of projects, or just for the very largest projects or those with uncertain impacts. If inspecting a sample of projects, Avista should build statistical features into the sampling protocol that allow for a reduction in the number of required inspections based on a vendor's observed performance and demonstrated quality of work. 33 Ifion, Inc., 2008, p. l-5; and Pacific Gas and Electric Company. The Cadmus Group, lnc. 720 SWWashington Street, Suite 400, Portland, OR 97205 t 503.467.7110 + Fax 503.228.3696 An Employee-Owned Company o www.cadmusgroup.com Avista / October 2012 Staff_PR_47 Attachment C Page 34 of 62 Nonresidential Table l2 summarizes the nonresidential best practices, scores, and recommended actions. Table 12. Nonresidential Summary and Recommendations ;{:;ffiffi Program implementation and operations plan Continue to develop an operations plan that will provide guidance on internal policies and procedures Utilize third-party implementer when appropriate Evaluate the costs and benefits of contracting with a third-party implementer for elements of the Site Specific and Prescriptive programs (beyond EnergySma( Grocer) Proactively address market barriers Explore piloting various delivery mechanism programs for hard-to+each markets (such as a Small Business Direct lnstall Proqram) Formalized network with easy registration Develop a formalized network of contractors and installers with a simple registration or onboarding process Dedicated Website section Add a dedicated trade ally section to the business Webpage that contains resources, guidance, and updates for program participation Regular communication and education Build on the current outreach activities by providing more direct and frequent communication and hosting in-person trainings Easy{o-find Website material Make the business rebates webpage easier to find; make a link for 'Efficiency Avenue' more prominent; consider making cost-saving information available by measure Direct oukeach by account representatives or executives /+Continue efforts to find ways to encourage direct contact between program staff, account executives, customers, and trade allies, where cost-effective Leverage trade allies to promote programs Create a marketing plan that includes specific channels for outreach through trade allies, with associated qoals and milestones Cleary defined and reasonable participation pr0cess lmprove the Website content for the Site Specific Program to provide customers with additional information on the enrollment processes Technical service Explore a formal process to provide a technical assistance service to Site Specific Program customers lntegrated databases Ensure integrated fields across worksheets, application forms, and databases; continue to develop an integrated customer information systemtil ftiiiauil,n ffi* Pre- and post-inspections Clearly define and document pre- and post-inspection policies and procedures; determine a sampling approach for conducting Site Specific Program project pre- inspections; establish a size parameter for Prescriptive Program projects Routine evaluations /+Continue routine evaluations to enable the incorporation of results on a relatively real- time basis Freeridershio and soillover Continue monitoring freeridership and spillover estimations Table key: - = no activity; /- = limited activity; / = some activity; /+ = significant activity. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 o 503.467.7110 . Fax 503.228.3696 An Employee-Owned Company e www.cadmusgroup.com Staff_PR_47 Attachment C Avista / March 2013 _ _ IeS_g eQ o_{ 6? Residential Table 13 summarizes the residential best practices, scores, and recommended actions. Table 13. Residential Summary and Recommendations Have well documented and articulated goals Avista should document and monitor progress toward goals, and disseminate this information throughout the implementation team, PPA, and stakeholders Conduct baseline research and market assessments /+As cunent market conditions continue changing, Avista should maintain its commitment to reqular baseline research and market assessment Develop complementary pr0grams To reduce implementation costs and leverage existing implementation resources, Avista should consider the complementariness of program and measure offerings durinq planning Develop programs and measure offerings that target energy-saving potential in all major market segments and equipment types Avista should continue to investigate new market segments, like existing multifamily, and new measure offerings, like whole-home retrofits, to ensure the continuation of its robust energy-efficiency portfolio. ,ffi btiiiri]xfi bB'a;EB1#itiiffi Clearly define program implementation processes and roles of individual staff Avista should ensure that the portfolio implementation responsibilities are well- defined and articulated in writing to minimize confusion Leverage outside resources that could increase program uptake Avista should consider developing and maintaining a trade-ally network that provides program training and education Pursue diverse marketing and outreach strateqies /+Avista should continue having its portfolio communicated to customers via multiple media channels, such as trade allies, social media, bill inserts, etc, Develop and maintain a robust program tracking database Avista planning and implementation staff should maintain their active role in development of the Customer Care and Billing database to ensure the new system will address both program implementation and evaluation needs Conduct regular quality conkol and verification Inspections To ensure cosleffective M&V, the Avista program administrators should decide whether it is necessary to conduct routine inspections across all programs for a random sample of projects, or just for the very largest projects or those with uncertain impacts. Table key: - = no activity; /- = limited activity; / = some activity; /+ = significant activity. The Cadmus Group, lnc. 720 SWWashington Street, Suite400, Portland, OR 97205 t 503.467.7110 . Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com (o(r)(o co @NN crior{)xoLL a-c()Orcl[3f'* O98,-. 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E r-----;-llolle()llor'=lla >ll; Ell-ollg{, H IIE E 9.:E II< E,E€ II figfi I| -.cE II +Eq I : [l -[] o ;6 3:EI E =5. \o.6 EEoo5Ed8(E0(u hBsEd;LsOofi=E;Etsg 6+"8t .E,E9EE-iD ! ,+.rg F;.Ho E,Efi-L >o)lIEN :E -q6oF:v -EroEg<fl Nol x.o-*l (I, U) C\ C)c! Lo,oooo (s .@ Avista / October 2012 Staff_PR_47 Attachment C Page 55 of 62 Nonresidential Addressing Leased Commercial Facilities 1. Targeting Commercial Building Owners - Xcel Energy's Commercial Real Estate Efficiency Program This type of rebate program would be most applicable for building owners who lease their premises on a gross lease, in which tenant energy costs are based on square footage. In this type of lease arrangement, investing in low-cost energy-efficiency measures will generate a retum on investment by loweringthe owner's energy costs, which can represent up to l9oh of total expenditures of a typical office building. Xcel Energy's Commercial Real Estate Efficiency Program (represented in Figure 2) targets Colorado commercial building owners and provides Figure 2. Xcel Energy Commercial Real Estate Efficiency Program Process Flow 720 SWWashington Street, Suite 400, Portland, OR 97205 c 503.467.7110 . Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com lrtudrclior meelirg |)wner orowner's lep |]wn er's e ngirre rrilE ttarr XcrlErreqy Commercial R u I Estate srriy p roviJ er XcelEneqyEciou,rt ma rrage f lntodrrce pmglam,dbcnss buiHirg characttrbticsand prouiJe an ouervitwof the planned activitirs [ualration byphom (as reedad 0 btain a rd rtvisrvsystem surueytm Rtuierv fa c iltyslst e ms a rd oprratb ts Grrrrrstr ENBGYSItrEto btnchnu*. Irsihrr'mit 0r|l,ebp listof m-mstor bwccst m gasulrs a nd cap'rt I im pmvtm tnE f rcorrstl elatiorr 0 ore bp a rd quantify so pr of im pmvem rnE Estimah Xcr I Ene qy rrbstes :r;ari, ii.:+ !, :,ii rrrii r l?.- l:r1: Iir,' f nrg lt rll rit ir-n ggp-.,:; ITffi-Ii|t lrrres{igatirre $bdy {optiom Ii Rrvitw arJ appruut Idgetad stat m ent of ,/i,o rL ln-deptr buiHing assessment Create nrastt] listof f rdings |ls€d b r rrste a fulllini n c iala na lpb and re port 0f rrco m rft ndrd inrplove m t ns lnpletrertttior Crstmer rrmpletessrlectd impmvementsrrd su bmits su nrmaly nith inr.oirtst Xcel En rgy ec cou nt maneSet lm plem r rtrtion cen oc c ur Bft r th e co mpktbn of tr es tgsme ntor the i fl/estigative stujy. ftebnteprmirg Su bm h imple m emato n docu me nEtbn Onner or desig nated pa rty rr tt iles reb:t check Avista / October 2012 Staff_PR_47 Attachment C Page 56 of 62 funding for technical studies and bonus rebates. The program provides technical assistance for buildings larger than 50,000 square feet at the cost of $2,500 for a preliminary report, with opportunities for fluther in-depth energy and engineering analysis. Similar to a custom or site specific incentive program, Xcel Energy uses a technical study to establish a baseline, calculate energy and cost savings, and identify opportunities for energy-effi ciency rebates. A key component of the Commercial Real Estate Efficiency Program is its marketing strategy. By making a dedicated section on the business Webpage and creating a series of downloadable brochures and information sheets, Xcel Energy explicitly targets commercial building omers with tailored messaging. For example, program material stresses that the program was"created just for real estate customers," and touts the alignment with LEED for operations and maintenance requirements. 2. Targeting Commercial Tenanb - California Wilities' Office of the Future Pilot To address the split incentive of leased office buildings and incent tenants to reduce their energy use, additional program designs may be necessary. These additional types of programs would be most applicable for tenants who lease space under a net lease zurangement, in which they pay their own energy bill and will benefit directly from lower operating costs, but do not have control over whole building operations. One approach, utilized by California utilities in their Office of the Future pilot, focuses on building long-lasting relationships with commercial real estate (CRE) firms interested in energy efficiency. The program aims to directly address the split incentive market barrier in multitenant leased office spaces by focusing on corrmercial office retrofits, which often happen at the beginning of a new lease. In this way, the program may be relevant for either a gross or net lease arrangement. The timing is geared toward influencing the design of the space during lease negotiations in order to minimize the incremental costs of energy-efficient measures, and to encourage discussion and the allocation of costs and benefits associated with energy efficiency in the lease document.3a Some considerations for designing a program in partnership with CRE firms include:3s o Consider using a dollar-per-square-foot incentive to align with the most common metric used in lease negotiations. o Choose eligible equipment measures that address the uniqueness of tenant needs, such as tenant feedback/energy use dashboards, workspace or desktop lighting, daylighting controls, vacancy sensors, and a custom lighting system option. Cortese, Amy, D. Harris, and D. Avery. Harnessing Market Forces to Address the Landlord Tenant Split Incentive in the Commercial Building Market.20l0 ACEEE Proceedings. Available online at: http ://www, aceee.ore/fi les/proceedings/20 I 0/data/paoers/203 6.pdf. Ibid.35 The Cadmus Group, lnc. 720 SWWashington Street, Suite400, Portland, OR 97205 c 503.467.7110 . Fax 503.228.3696 An Employee-Owned Company . vrrww.cadmusgroup.com Avista / October 2012 Staff_PR_47 Attachment C Page 57 of 62 o Consider public relation (PR) benefits for CRE firms that participate in the program. If the space is leased on a net lease arrangement, resulting in little to no operating cost savings for the building owner, providing the building owner with PR benefits of some kind may be the type of recognition needed to engage the CRE community. Traditionally, the uptake of LEED and ENERGY STAR certifications is strong in this sector due to the real and perceived benefits of attracting and maintaining tenants. 3. Partnering with Local Government Stakeholders to Promote Green Leases Green leases, or aligned leases, overcome the split incentive barrier by revising traditional commercial lease structures to motivate both owners and tenants to save money through energy- efficient upgrades and measures. As stakeholders and businesses have become more aware of the benefits ofenergy efficiency in recent years, and the barriers that leased facilities present, goverrrments, stakeholders, utilities, and the commercial real estate community have taken strides toward promoting the adoption of green lease language. In New York City, stakeholders worked with the Office of Long-Term Planning and Sustainability to create model lease language for glqss commercial leases, which are the most common commercial lease type in New York City.'u The model language, known as the Energt Aligned Clause, facilitates energy-efficiency improvements in leased spaces by: o Allowing both parties to share the costs and benefits of energy retrofits by agreeing on a predicted amount of annual savings and by having the tenant pay the owner recovery costs based on the predicted savings. o Including a protective measure against underperforming retrofits, called a performance buffer, which extends the payback period by 25%. The Green Lease task force also developed an interactive financial model to showcase how the lease language affects the payback of energy-effrcient retrofits for tenants and owners.37 Addressing Small Businesses Common barriers to energy efficiency upgrades among small business customers include their competition for time, their lack of upfront capital for energy-efficient equipment, and the difficulty in reaching them via traditional marketing techniques, such as direct mail. More and more utilities are pursuing programs or delivery channels designed specifically for reaching the small business customer and addressing their unique challenges and needs. This section summarizes two direct discount (also known as direct install) programs; one with financing and one without. Both can be effective avenues for increasing program participation among small business owners. 36 For more information, read the clause and an overview of: New York City. Energt Aligned Clause. April 10, 2012. Available online at: http://www.nyc.eov/html/gbee/downloads/pdf/eac overview.pdf. A downloadable presentation is available that explains the clause: http://www.nvc. sov/htm l/gbee/downloads/pdf/eacJresentation.pdf.3't The Excet model can be downloaded from the PLANYC Webpage: http://www.nyc. eov/htm l/gbee/lrtml/initi atives/clause. shtm I The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 c 5A3.467 .71 10 r Fax 503.228.3696 An Employee-Owned Company + www.cadmusgroup.com Staff_PR_47 Attachment C Avista / October 2012 119-9 !p*oJ_0_z 1. Direct Discount with Financing: Connecticut Small Business Energy Advantage Program (SBEA) This program is offered by Connecticut's two major investor-owned utilities via a partnership with the statewide Connecticut Energy Efficiency Fund and has been cited in numerous energy- efficiency best practice reports.3s Connecticut Light and Power and the United Illuminating Company offer small businesses, industrial customers, and government and non-profit entities rebates for energy-efficiency equipment, combined with zero-interest financing for up to 36 months. The program relies on contractors to act as a single point of contact for customers, which includes promoting the program, conducting energy assessments of facilities, and submitting proposals. The SBEA Program is able to minimize customer effort and reduce financial barriers by providing direct services (on-site assessments and direct installation). In the direct discount approach, the utility rebate is provided to the contractor rather than the end-user, and the customer is responsible for paying the difference, which lowers upfront costs. Through the SBEA Program, the utilities offer financing options to help customers pay off the remaining costs over time. The unique partnership with the Connecticut Energy Effrciency Fund allows the utilities to offer a significantly lower incentive amount (incentives are capped at just 30% of the project cost) than other direct discount programs and still achieve high program participation and significant energy savings. An evaluation of a similar program in Massachusetts revealed that the availability of financing played a significant role in the customers' decisions to participate. Seventy percent of surveyed participants reported that the financing was important to their decision. Moreover, a survey of nonparticipants and partial participants revealed that660/o of respondents would be more likely to install energy-efficient equipment with the availability of zero-interest financing. Table 22 summarizes the SBEA program design, incentive structure, and energy impacts. Table 22. Connecticut SBEA Program Details and Impacts Source: The Cadmus Group, lnc. Connecticut Small Business Energy Advantage lmpact Evaluation Report Program Year 2007. August 24,2009. Available online at: http://www.ctsavesenergy.org/files/CT%20SBEAYo202007Yo20lmpact%20Evaluation%20Report.pdf, 38 York, Kushler, and Witte, 2008 Quantum Consulting,2OO4. Capped at 30%, plus 30- 36 months of interes! free financing The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 c 503.467.7110 + Fax 503.228.3696 An Em ployee-Owned Company e www. cadmusgroup.com Staff*PR_47 Attachment C Avista / October 2012 Page 59 of 62 2. Direct Discount with No Financing: Mid-Atlantic Utility Direct Discount Delivery Channel Utilities have proven that with strategic marketing and outreach, the small business sector can be reached without the availability of financing. This type of delivery channel may be appropriate where third-party financing partners, such as statewide funds, are not be readily available. Similar to the SBEA Program, a Mid-Atlantic utility relies heavily on trade allies to promote the Direct Discount Program and to provide small businesses with support in order to minimize customer time and effort. Again, the utility rebate is provided to the contractor rather than the end-user, and the customer is responsible for paying the difference. In this case, the incentive cut-off is much higher than for the SBEA Program, which lowers the up-front cost significantly (See Table 23). This program is smaller in scope than the SBEA Program: efficient lighting and refrigeration equipment are currently the only eligible measures, and the program's high savings can mainly be attributed to lighting projects. Due to the success of the program in its first year, the utility is considering expanding the measure offerings. The utility has focused on investing in trade ally training and outreach in order to boost participation in the Direct Discount Program, a strategy that appears to be effective for them. The program has over 130 contractors that currently participate, and who have access to software (for conducting energy assessments), marketing materials, lighting worksheets, and more. Furthermore, the utility conducts regular surveys with this specific group of trade allies in order to stay informed of market barriers and obstacles with the program administration (such as rebate processing time, facility inspection, and proposal approval) and to implement timely adjustments and keep trade allies satisfied with the program. Table 23. Mid-Atlantic Utility Direct Discount Program Details and Impacts Note: The final impact report will be available for public consumption in November 2012. The Cadmus Group, lnc. 720 SWWashington Street, Suite400, Portland, OR 97205 o 503.467,7110. Fax 503.228.3696 An Employee-Owned Company r www. cadmusgroup. com Avista / October 2012 Staff_PR_47 Attachment C Page 60 of 62 Residential Deep Energy Retrofit Deep energy retrofit (DER) has gained recent popularity as a way to significantly reduce energy consumption in existing residential building stock. Currently, numerous pilot programs are operating across the country and studies suggest that significant results are achievable.3e DER projects aim to take existing homes and dramatically reduce their energy consumption by 50o/o to 90%. Given the significant impact these projects have on the livability of the home, often the occupants' health, satisfaction, and safety are also prominent program goals. Several New England utilities (National Grid, NSTAR, Cape Light Compact, and Western Massachusetts Electric Company) are currently operating several DER pilots under the MassSave@ initiative.a0 The pilots have experienced some issues with low customer and stakeholder uptake. However, numerous important lessons can be leamed from a review of program design, offerings, and early evaluation results.4l Sponsored by electric and gas program administrators (PAs), the 2010 DER pilots' implementation details vary by administrator. The pilot provides participants with the following: o Technical assistance, which may include Building Science Corporation (BSC) or Home Energy Raters (HERs) to inspect and run tests, or the Center for Ecological Technology (CET) services in reviewing customer plans, modeling Building America case study dwellings, and detailing construction efforts. o Incentives for implementing a package of measures that are designed to reduce energy use by atleast50o/o.o National Grid's progftrm also provides educational and technical services to customers and contractors, with a particular focus on correct implementation techniques. The pilot program delivery mechanisms vary by utility. National Grid, for example, requires the installation of a somewhat prescriptive combination of shell and HVAC measures, which in total are expected to achieve 50o/o or more savings. Other PAs, such as the Western Massachusetts Electric Company, require designs to achieve a HERS rating of 50% or better, without reference to specific measures. 40 4t Walker et al, Lawrence Berkeley National Laboratory. Deep Energt Retrofit Performance Metric Comparison: Eight California Case Studies. ACEEE Proceedings. 2012. Available online at: http://www.aceee.orqifiles/proceedings/2012ldata/papers/0193-000007.pdf: Jackson et al, Oak Ridge National Laboratory and Kim et al, Southface Energy Institute. Advancing Residential Energt Retrofits. ACEEE Proceedings. 2012. Available online at: http://www.aceee.ore/files/proceedings/2012ldatalpapers/0193- 000032.pdf. httD://ww w. masssave.corn/about-mass-save. The Cadmus Group, lnc. Massachusetts 2010 Residential Retrofit and Low Income Evaluation-Deep Energt Retrofit. July 16, 201 l. Available online at: http://www.ma- eeac.org/docs/20 I I %20EM&V%20Studies/MA%20RRLI%o20- %202010%20Deep%20Ener&v%20Retrofit%20Evaluation%2OReport_FINAL_l lJULY2Ol l.pdf. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 . 503.467.7110 . Fax 503.228.3696 An Employee-Owned Company o www.cadmusgroup.com Staff*PR Avista / October 2012 Several utilities offer a partial implementation track. Regardless of the approach, participants must mitigate standard2x4 construction by expanding wall cavities on interiors or over-cladding exteriors. Participants must also implement additional significant measures, such as mechanical ventilation and considerable improvements to roof and basement insulation, which together create complex and expensive installations. The projects' complexity and affordability have been viewed as participation barriers. Table 24 provides the key delivery features of each pilot. When considering a DER pilot, recent Cadmus evaluations and a review of literature indicates the importance of the following programmatic features: o In addition to the energy savings that can be achieved through DER, programs should emphasize other benefits including increased comfort, livability, and the increased value of the home.o Structure pilot goals around the research benefits from the pilot, in addition to energy savings, so the pilot is not held to the same cost-effectiveness requirements as typical programs. DER projects typically have longer lead times, and therefore customer and stakeholder interest may build gradually. o Develop a DER option that meets the needs of customers who are prepared for a major project but are not willing or able to commit to all the requirements of a comprehensive DER project. For example, customers that are only interested in re-roofing or re-siding their home can still achieve additional savings, and for a relatively low cost. The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 o 503.467.7110 . Fax 503.228.3696 An Employee-Owned Company . www.cadmusgroup.com *47 Attachment C Page 61 of62 Table 24. Summary of DER Pilot Delivery Characteristics, by Utility National Grid staff, BSC for technical services and inspections Program referrals, contractor network, robust Website, e-mail diskibutions, open houses, TV, speaking engagements, and -1.5 tull-time equivalent (FTE) program -0.5 FTE PMs -1,0 FTE PMS $42,000 for single family, for multifamily varies by size of building and number of units but up to $106,000 Avista / October 2012 Staff_PR_47 Attachment C Page 62 of 62 The Cadmus Group, lnc. 720 SW Washington Street, Suite 400, Portland, OR 97205 o 5A3.467.7110 + Fax 503.228.3696 An Employee-Owned Company r www.cadmusgroup.com AYISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION JURISDICTION: IDAHO DATE PREPARED: 0110312013 CASE NO: AVU-E-I3-09/AVU-G-13-02 WITNESS: REQUESTER: IPUC Staff RESPONDER: Lori HermansonTYPE: Production Request DEPARTMENT: DSM Policy, Planning & Analysis REQUESTNO.: Staff-47 TELEPHONE: (509) 49s-4658 REQUEST: Please provide the 'oBest Practice Comparative Review" memo delivered in February 2013. RESPONSE: Please see Staff PR_47 Attachments A and B for the "Best Practice Comparative Review" memo as well as Staff PR_47 Attachment C for an update done later in 2013. AVISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION JURISDICTION: IDAHO DATE PREPARED: CASE NO: .AVU-T,.T:-09IAVU-G-13.02 WITNESS: REQUESTER: IPUC StAff RESPONDER: TYPE: Production Request DEPARTMENT: REQUEST NO.: Staff-54 TELEPHONE: 0y08120t4 Lori Hermanson DSM Policy, Planning & Analysis (s09) 49s-46s8 REQUESf: For each renewable measure that was incented under Schedules 90 and 190, please provide: the type of measure, the year installed, the sector, the incentive paid, the total cost of installation for the participant, measure life, ex ante and ex post savings and the methods used to obtain savings estimates, and the cost-effectiveness calculations with clearly defined assumptions. Please include the cost-effectiveness calculations in an executable excel file with formulas intact. RESPONSE: See Staff PR_54 Attachment A for the excel spreadsheet of all renewable projects completed between 2010 and 2012. There were a total of eleven renewable projects that completed during these years with incentives totaling$21,214. Due to the simple-payback change in Schedules 90 and 190, it would be unlikely for future renewable projects to qualify for Schedule 90 and 190 rebates. Therefore, renewables were not included in the scope of the evaluation. Per Cadmus, savings were included as part of prescriptive in the ex poste savings and given a 100/orcalization rate. N15o FIooo(U CL ;xil {r+ t{r+ ,: dNNit ,6ti@ {+" r ! 1. -,: . .. ;., . ",i .- H\TNOO)OrHN:i ,\l'iCO NfN ti @ i\O .g .u .(J .u .u .9',.g iu u.u u'E '-.r 1- 'E E E tr r'tr.tr trE E €,8 U ts,tsrts ts"ts.tso o o o (l) oJ o aJ o.(l).o,tr U ,E,U E iil:tr!,tri itr itr itr t* r{l} 1:rf ror! ,osl- :Os-oI (f) I $.di:toEi@N , {r+ {+ , {,t o ,rrr , orlo \o :r\,1O i,N :@io r'd 6fn :C\t rfr.) :!,{#' ...':"- @vro :@ iNg rOl ,tO! 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P sttl Id. CL *l(L (UPtt1 Nr}r)oH (f)rV N oNIo oN0 (Jo'd 4gltoocoE sftnIEe N(Fo hl (u oo(Uo- I (\r) H H]HIH+NNNNNoi; o oio.oioil::.1 rl:':li! - ii: i ,.,:-...-i ,^ " i" -.(a:sF @.tr).d Or(..l .! q ry l,nO,Oi: OrO;OlO o\o @ * t\o@ Ol {r} oc{rr) xq E o E U(E P sftJ) I&.o- EI(oPttt I';'i':; o:o:oN l;N ;:N;llN oNoN Ndd l,i;r iilit**"T,"*?-**!l''"" o lu Io :'oC, iC, h0) ::0)u.tu tu aug rO i(u iq)o. lo.ii o.iro.E iE iE IEo io .o tot-l 9. tu* ;"9 d li 'iH iHNa. ddH.do'o'o oN A,.N :N AVISTA CORPORATION RBSPONSE TO REQTTEST FOR TNFORMATION JURISDICTION: IDAHO CASE NO: AVU-E-I3-09/AVU-G-13-02 REQUESTER: IPUC StaffTYPE: Production Request REQUEST NO.: Staff-56 DATE PREPARED: 0110612014 WITNESS: RESPONDER: DEPARTMENT: TELEPHONE: Jon Powell DSM Policy, Planning & Analysis (s09) 49s-4047 REQUEST: Please provide a complete list of measures that the Company believes are subject to the tariff rules under "market transformation" as included in Schedule 90C and 190C. RESPONSE: Section 4.1 of Schedule 90 governs the customer incentives that the Company provides for energy efficiency measures. Section 4.1.3 permits the Company to fund up to 100% of measures that support local, regional or national market transformation efforts. From 2010 to 2012, the Company defined two programs subject to the tariff rules under market transformation: Installation of natural gas space and/or water heating appliances in multifamily housing - This program offered enhanced incentive frrnding for projects as a case study, indicating the feasibility of the installation of natural gas end-uses in multifamily housing. The program was first launched in 2008 and has operated continuously since that date. The current DSM Business Plan projects the continued operation of the program in20l4. Enhanced incentives for a prescriptive program for the installation of T-8 fluorescent lighting fixtures in place of pre-existingT-L2 fixtures - This program coincided with federal manufacturing standards which limited, but did not completely prohibit, the ongoing manufacturing of T-12 fluorescent lamps. The program was designed to accelerate the retirement of existing T-12 fixtures. Avista's progrcm was designed to be consistent with other progftlms offered throughout the region. The Company has not offered any natural gas measures that have been defined as market transformation in nature for purposes of section 4.1.3 of Schedule 190. AVISTA CORPORATION RESPONSE TO REQTTEST FOR TNFORMATTON REQUEST: Please provide the amount of incented measures that had measure lives less than l0 years. Please delineate by sector, program, and if it is site-specific or prescriptive. RESPONSE: Incentives granted for measures with lives less than ten years contained within the Company's DSM database are categorized below. JURISDICTION: IDAHO CASE NO: AVU-E-13-09/AVU-G-13-02 REQUESTER: IPUC StaffTYPE: Production Request REQUEST NO.: Staff-58 DATE PREPARED: 0110812014 WITNESS: RESPONDER: DEPARTMENT: TELEPHONE: Jon Powell DSM Policy, Planning & Analysis (s09) 49s-4047 2010-2012 $ ztq $ 380,040 $ 107,508 487,762 70,825 Site-specific 3rd Party implemented Prescriptive Total non-residential Residential 2010 20rr 2012 $ 214$ $ s 181,577 $ 101,957 $ 96,506 $ 33,274 $ 72,134 $ 2,100 $ $ $ $ $ $ 215,065 36,225 174,091 26,100 98,606 8,500 251,290 $200,191 $107,106 558,587 These measures were predominantly elements of the EnergySmart Grocer program and residential dishwashers. The above compilation does not include incentives for measures outside of those tracked within the DSM database, specifically the Simple Steps, Smart Savings progrum. During this three year period the Company has funded $1,658,762 in incentives for this program. The Company has not required prescriptive measures to be limited based AYISTA CORPORATION RESPONSE TO REQUEST FOR INFORMATION JURISDICTION: IDAHO CASE NO: AVU-E-13-09/AVU-G-13-02 REQUESTER: IPUC StaffTYPE: Production Request REQUEST NO.: Staff-59 DATE PREPARED: 0110812014 WITNESS: RESPONDER: DEPARTMENT: TELEPHONE: Jon Powell DSM Policy, Planning & Analysis (sog) 49s-4047 REQUEST: What was the total expenditure for site specific projects with incentive costs that exceeded the 50% incentive cap? RESPONSE: The total expenditure for site specific projects with incentive costs that exceeded the 50% incentive cap for the three year period (2010-2012) was $2,914.