Avoided Cost Calculator Workshop Day 2

1. Avoided Cost Calculator Workshop Day 2 October 4, 2005 Energy and Environmental Economics, Inc.

2. Potential Calculator “Quick Fixes” • Counting period inconsistencies for peak demand reporting • Standard Practice Manual conformance • DEER lighting error coprrection (SDG&E only) • SCE motor summer peak kW correction • Allocation of gas program savings between years • Revision to accommodate decimal EULs. • Consistent Calculator across IOUs • Consistent interface and calculations, versus consistent input data • Other ideas?

3. Counting Issues • What is the question? • Energy Savings for a Year • How much reduction did I see this year? (what did I harvest?) • How much reduction will I see because of what I did this year? (how much did I plant?) • Peak reductions • How much reduction at a certain point in time (e.g., for procurement) • How much reduction implemented (to gauge progress toward long term goals)

4. Counting Issues • How do I treat measures with short lives? • Assume I install a widget that lasts one year, and I repeat this every year for 2006 through 2008. Assume this widget gets me 1kW. • Do I claim 3kW of installed devices? I did put in three 1kW devices. • Do I claim 1kW, since I only saw 1kW of load reduction due to that widget in any year? • How do I count committed versus realized measures?

5. Potential Calculator “Quick Fixes” • Counting period inconsistencies for peak demand reporting • Standard Practice Manual conformance • Correct DEER lighting error (SDG&E only) • SCE correction of summer peak kW application for motor • Allocation of gas program savings between years • Accommodate decimal EULs. • Size reduction • Consistent Calculator across IOUs • Consistent interface and calculations, versus consistent input data

6. Potential Calculator “Quick Fixes” • Counting period inconsistencies for peak demand reporting • Standard Practice Manual conformance • DEER lighting error coprrection (SDG&E only) • SCE motor summer peak kW correction • Allocation of gas program savings between years • Revision to accommodate decimal EULs. • Consistent Calculator across IOUs • Consistent interface and calculations, versus consistent input data • Other ideas?

7. Consistent across IOUs

8. Potential Calculator “Quick Fixes” • Counting period inconsistencies for peak demand reporting • Standard Practice Manual conformance • DEER lighting error coprrection (SDG&E only) • SCE motor summer peak kW correction • Allocation of gas program savings between years • Revision to accommodate decimal EULs. • Consistent Calculator across IOUs • Consistent interface and calculations, versus consistent input data • Other ideas?

9. Longer Term Items • Recap of Draft Report Recommendation Requirements (Feb 20, 2006 draft report) • The definition of peak demand reductions • Common definition • Agreed upon calculation • Refinements to avoided cost methodology and tie in with other proceedings • Consistency in underlying load shape data and the methods by which that data is translated into peak savings estimate • Display of load shapes

10. Longer Term Items continued • Cross walk to other proceedings such as resource adequacy and procurement • Availability and sufficiency of load data going forward • Acquisition and allowance for new load shapes • EUL updates • Size reduction

11. Update on DR methodology work