How The Regional Technical Forum Supports PNW Energy Efficiency Programs January 23, 2013

1. How The Regional Technical Forum Supports PNW Energy Efficiency ProgramsJanuary 23, 2013

2. What You’re About to Hear • Why was it formed? • How is it structured? • What’s Our Role? • What’s Your Role? • How We Make Decisions?

3. Context: Utility Industry Restructuring (Advent of Competition Late 1990’s) Congressional Rationale: • Bonneville’s “reinvention” of conservation was intended to permit utilities to better tailor their conservation programs to local situations. • More diversified approaches to conservation acquisition across the region are to be expected. • Increased diversity creates the need for regionally consistent standards and protocols for assessing the energy savings produced by more varied programs.

4. Congressional Charge • Congressional Appropriations language charged Bonneville and the Northwest Power and Conservation Council with formation of a Regional Technical Forum (RTF) on conservation evaluation and verification* • Taskis to develop standards and protocols for verification and evaluation of energy savings • Services available to all utilities in the Northwest • Membership to include individuals with technical expertise in conservation program planning, implementation and evaluation *Senate Report 104-120 – Energy and Water Development Appropriations Bill, 1996

5. Northwest Governor’s Comprehensive Review of the Power System (1998)Amended Congressional Charge • Membership: Utilities, other electricity service providers, government, energy service companies and public interest groups. • Task 1 - Track regional progress toward conservation and renewable resource goals. • Task 2 - Provide feedback and suggestions for improving conservation and renewable resource development programs in the region. • Task 3- Conduct periodic reviews of the region’s progress. • Task 4 - Communicate recommendations to appropriate decision-makers.

6. Comprehensive Review Rationale(The Context Was Also Utility Industry Restructuring) • Tracking is needed to assess whether public purpose goals are being achieved. • A voluntary forum that permits the open exchange of information and ideas on effective approaches to securing conservation and renewable resources will benefit the region. • Uniform standards of verification and evaluation will become increasingly important as consumers gain access to energy service markets where utilities and new market entrants can expected to compete for “public purpose” funding.

7. Northwest Power and Conservation Council’s Response • Formed Regional Technical Forum • Assigned staff to support the work of Forum • Secured assistance from Bonneville to support Forum’s work on the Conservation, Renewable Resource Rate Discount • Public Involvement - All meetings noticed w/agenda & work products available on Web (http://www.nwcouncil.org/energy/rtf/Default.htm)

8. RTF Organizational Structure • Scientific & Statistical Advisory Committee • Chartered by the Council • Voluntary • Funded by voluntary contributions from Bonneville, the region’s largest utilities and the Energy Trust of Oregon • Reports to: • Technically, RTF reports to the Chair of the Council • Pragmatically RTF reports to BPA, utilities, SBCs & regulators (We work for “the region”) • Recommendations • To Bonneville, the region’s utilities, Energy Trust of Oregon, State Energy Offices & regulatory commissions and other stakeholders  • Out of Region entities also rely on RTF analysis & recommendations

9. RTF Organization Northwest Power and Conservation Council Regional Stakeholders Regional Technical Forum (RTF) Tom Eckman, Chair (Council) Regional Technical Forum Policy Advisory Committee (RTF PAC) Jim West, Co-Chair (Snohomish PUD) Tom Karier, Co-Chair (Washington Council Member) RTF Subcommittees

10. RTF Structure • Public Access • RTF meetings, recommendations, data, & proceedings are public • Staffing • Managed by Council staff with contractor assistance • One Full Time Council Staff (RTF Manager Nick) funded by RTF • Plus 4.5 FTE Contract staff funded by RTF Sponsors • Plus Tom, Charlie & Gillian (in-kind from Council budget) • Members • Technical Experts (Not Stakeholder) • Between 25 - 30 voting members • Engineers, statisticians, evaluators, program planners & operators • A large group of “corresponding” members • All members appointed by Council • Refreshed every three years • Develops its own work plan based on regional needs • Develops budgets based on work plan • RTF Policy Advisory Committee reviews work plan and advises Council • Council adopts final annual RTF work plan & budget

11. RTF Staff – Who Are They? • Council Staff • Tom Eckman, RTF Chair • Charlie Grist, RTF Co-Chair • Nick O’Neil, RTF Manager (RTF-funded) • Gillian Charles, RTF Business Manager • AggarAseffa, RTF Administrative Assistant • Outside Contract Staff • Adam Hadley, (On Board) • Mark Kendall, (Through Jan 31st) • Josh Rushton (New hired - On board) • Ryan Firestone (New hire - Starts April 1st) • Mohit Singh-Chhabra (New hire - Starts April 1st) • Christian Douglass (New hire - Starts April 1st)

12. RTF Meetings • Monthly from 9am-4pm • Occasionally two-day meetings have been required • Agenda published ~ two weeks ahead of time • All meetings available via webconference • Lunch provided for RTF members and corresponding members • Subcommittees • Convened “as needed” • Membership drawn from RTF (Voting & Corresponding Members) and other interested parties • Organized and facilitated by RTF staff • Vet technical work/issues ahead of time • Provide recommendations to RTF

13. What the RTF Does • Provides independent review of savings estimates for measures commonly used in PNW • Provides cost-effectiveness estimates for measures • Established and follows a systematic approach to review • Continually updates savings & cost-effectiveness estimates • Provides open access to all estimates & data • Provides guidance for estimating savings from custom measures & for program-level savings • Assists the Council by assessing new efficiency technologies • Tracks regional progress toward PNW efficiency targets

14. What the RTF Does Not Do • Perform direct regulatory function • Require use of specific savings estimates/protocols • Require the use of specific program designs • Establish utility program reporting requirements • Evaluate savings for ALL measures • Restrict which measures utilities can install • Establish “rebate or willingness to pay” levels • Execute primary research (RTF relies on others for research)

15. How Does the RTF Process Work? • RTF Provides Centralized Technical Review • Energy Savings Data and Assumptions • Cost-Effectiveness Methodology and Assumptions • Measurement and Verification Protocols/Guidelines • Builds on historical program experience • Public process – stakeholder “technical” involvement

16. After A Decade of Making Decisions the RTF Recently “Codified” Its Decision-Making Process

17. Why Guidelines For Estimating Savings? • RTF Mission • Reliable estimates of savings • Transparent methods for estimating savings • RTF operated for 10 years transparently but its “rule book” evolved with experience • RTF needed to capture its current best practices to ensure more consistent decision-making and operations

18. Your Role As An RTF Member • Represent the interests of the RTF, not your sponsoring employer or a personal agenda • Prepare for and actively participate in RTF meetings • Volunteer for subcommittees where your expertise is needed • Assure that RTF recommendations and databases embody the best available data, science and engineering and professional judgment • Develop and oversee the execution of the RTF’s Work Plan and budget • Recluse yourself from discussions and votes where there is a perceived or real conflict of interest • Pay attention, bring your best on “game day” • Have fun!