Exhibit A Program Descriptions, Historical Changes and Proposed Changes
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1 Exhibit A Program Descriptions, Historical Changes and Proposed Changes
2 Exhibit A Program Descriptions, Historical Changes and Changes Reflected in Forecasts Home Energy Savings The Home Energy Savings program is offered to customers utilizing PacifiCorp s wattsmart brand. wattsmart incentives are available for appliances, heating and cooling equipment, lighting, weatherization measures, and water heating equipment for single family, multi-family and manufactured homes. wattsmart incentives are provided for new homes that exceed code. Incentives are paid directly to end use customers after an installation or purchase is complete or incentives may be paid to retailers or manufacturers as a buy down for selected products. Additionally, for some heating and cooling equipment installations, the installing contractor also receives an incentive in addition to the customer since they are required to perform additional services such as equipment sizing, refrigerant and airflow optimization to help insure quality installations The appliance category includes clothes washers and incentives are paid to consumers after they make a purchase. Heating and cooling equipment includes central air conditioners, duct sealing and insulation, ductless heat pumps, ducted heat pumps and evaporative coolers. Incentives are paid to customers and installing trade allies. Efficient lighting includes lamps and fixtures and incentives are provided through special discounted pricing at selected retailers. Information on retailers participating in the buy-down offers is displayed on the program web site at: Customers replacing water heaters are eligible for incentives if they install equipment with heat pump technology. Weatherization projects, specifically installing additional insulation are eligible for incentives which vary by insulation location (ceiling or wall) and the heating equipment type. New homes are eligible for incentives if they exceed the applicable version of the Title 24 Code by a minimum of fifteen percent as demonstrated through the performance method using California-approved Title 24 compliance software, such as EnergyPro. PacifiCorp s California customers have also have access to an online home energy advisory which guides customers through questions about their home s features and provides information on additional opportunities for energy savings. Customers have two options for submitting their incentive applications; using the program s on-line portal or mailing paper forms and copies of back-up documentation.
3 wattsmart Business PacifiCorp offers wattsmart Business (Schedule A-140) to non-residential customers in California. The program provides a comprehensive set of financial and service incentives to assist PacifiCorp s non-residential customers in improving the energy efficiency of their facilities. The wattsmart Business program was designed to support continuing acquisition of all cost-effective conservation from business customers and help reinforce the ongoing ethos of energy-efficient new construction, facility upgrades, and ongoing operations. Prescriptive incentives (Typical Upgrades) are offered to commercial, industrial, and agricultural customers for typical energy efficiency measures. Typical Upgrades include an expedited energy analysis and incentives based on the equipment installed ($/horsepower, $/ton, etc.) or per kwh annual energy savings. The program includes an offer specifically for small business customers receiving electric service on Schedules A-25 or A-32. Participating customers utilizing an approved contractor are eligible for an enhanced incentive offer targeted at up to 80% of the project cost. There is also a midstream point-of-purchase delivery channel for LED lamps and reduced wattage fluorescent lamps, referred to as Lighting Instant Incentives (as of May 1, 2017). Custom incentives and analysis are offered for commercial, industrial, and agricultural customer retrofits and new construction measures not listed in the program incentive tables. The program includes a vendor-neutral investment grade energy analysis and cash incentives equal to $0.15 per kwh of annual energy savings (up to 70 percent of project costs). There is a cap to prevent incentives from bringing the payback for a project below one year. Custom analysis includes a post-installation verification and, if required, the program includes commissioning. The program provides energy project manager (EPM) co-funding to increase end-user management and engineering human resources devoted to electrical energy projects/activities increasing the number of commercial and industrial projects that can be completed. Energy management incentives allows PacifiCorp to partner with customers to ensure ongoing efficiency improvements in the operation and management of facilities and industrial processes. Energy Management is a system of practices that creates reliable and persistent electric energy savings through improved operations, maintenance and management practices at customer sites. It is designed to complement program offerings for capital improvements and the Energy Project Manager co-funding offer. Savings are site-specific and monitoring of building systems and industrial process controls is used to identify and quantify energy savings. The program is marketed primarily via PacifiCorp account managers, wattsmart Business vendors, wattsmart Business consultants, and project staff. Other leads come via advertising, PacifiCorp newsletters, word-of-mouth, past participants returning for additional projects, and a combination of other PacifiCorp outreach efforts.
4 Historical changes for the non-residential energy efficiency programs (including Energy FinAnswer, FinAnswer Express and wattsmart Business) PacifiCorp began operation of non-residential energy efficiency programs in California in In 2005, PacifiCorp filed Advice Letter 326-E requesting approval of a new irrigation energy efficiency program, as well as new and enhanced commercial and industrial energy efficiency programs. To expedite approval of the irrigation energy efficiency program, PacifiCorp reduced the scope of its requests and filed Advice Letters 326-E-A and 326-E-B, which included only the irrigation efficiency program. This program, Schedule PA-155, was approved July 28, 2005 and ended December 31, In 2007, PacifiCorp requested approval to enhance the nonresidential energy efficiency programs in Application Energy FinAnswer, offering technical services and cash incentives, was approved in 2008 along with FinAnswer Express, a prescriptive incentive offer. FinAnswer Express was updated in 2010, 2012 and January, 2010 changes to measures in the FinAnswer Express program: Lighting increased incentive levels for many lighting measures; increased the project cost incentive cap from 50% to 60%; increases the minimum wattage for pulse start metal halide fixtures installed in new construction. Motors included premium efficiency motors up to 500 horsepower to align with current National Electrical Manufacturers Association ( NEMA ) Premium size categories; adds a December 19, 2010 sunset date for premium efficiency motor incentives to align with changes in manufacturing standards. HVAC made significant changes to align with energy code changes effective January 1, 2010; removed two programmable thermostat measures due to changes in code requirements and Energy Star standards; removed Electronically Commutated Motors ( ECMs ) from the incentive table for new construction/major renovation as ECMs are required by Title ; modified the eligibility requirements for Cool Roofs to align with Title Refrigeration changed the minimum efficiency requirement for solid door refrigerators and freezers to CEE Tier 2 to ensure the requirements automatically match CEE Tier 2 as it evolves; moved these measures to the new food service category. Irrigation changed the incentive for nozzle replacements from $0.68/nozzle (up to 100% of costs) for both brass nozzles and flow-control nozzles to $0.25/nozzle for brass nozzles and to $1.50/nozzle for flow-controlling type nozzles. Custom measures increased incentive levels and the project cost cap. Added new measures within these existing categories; daylighting control; bi-level controlled fixtures with integral occupancy sensors; LED refrigerated case lighting, Green Motor Rewinds, indirect-direct evaporative cooling; 365/366 day programmable thermostats for portable classrooms, roof/attic insulation; wall insulation; windows; window film, commercial clothes washers; additional residential
5 appliances used in businesses such as room air conditioners and ceiling fans; clothes washer recycling, nozzle replacement measure to a total of 12 measures, network PCpower management software and smart plug strips. Added these new measure categories; food service, dairy/farm equipment and compressed air. January 2012 changes to FinAnswer Express: To improve measure adoption, decoupled eligibility for incentives from the existing fixture for retrofit projects and provide incentives based only on the fixture installed. In retrofit situations, improved measure adoption by simplifying the program eligibility requirements and incentive offering to pay incentives for many measures on a per lamp basis. Modified the percent of project cost incentive cap for lighting retrofits from 60% to 70%. Modified the New Construction/Major Renovation incentive to reflect a Pay for Savings approach, relative to an appropriate baseline (usually defined by state energy code). Modified the eligibility requirements for premium efficiency T8 fluorescents to match the High Performance/Reduced Wattage T8 lamp and ballast qualifying requirements of Consortium for Energy Efficiency (CEE). Added a sunset date of July 14, 2012 for the standard T8 incentives to align with the effective date of new federal efficacy standards for General Service Fluorescent Lamps (GSFLs). Removed the incentive offering for pulse-start metal halide fixtures W. Added limited LED prescriptive measures Increased the reported energy savings for lighting controls. Increased incentives for lighting control sensors, as well as add an additional incentive for each dimming ballast installed that is controlled by a sensor. Added an incentive for Advanced Daylighting Controls (ADC), which include both an occupancy sensor and daylighting sensor operating as part of the same control sequence in the same space. Discontinued incentives for timeclocks. Allow non-general illuminance lighting projects (i.e. cabinet signs, channel letter signs) to apply via a post-purchase application process. Modified the incentive for LED Message Center Sign retrofits from a pay for savings approach to a prescriptive incentive per lamp. Added prescriptive incentives for New Construction Exterior Lighting utilizing Induction or LED technologies. Non-lighting measure categories changes include: motors, HVAC, building envelope, food service, appliances, irrigation, compressed air and other energy efficiency measures. Modified the percent of project cost incentive cap from 60% to 70%.
6 July 2014 minor modifications to FinAnswer Express to update the program to align with changes in California s state energy code effective July 1, 2014 and changes to third party specifications such as Consortium for Energy Efficiency (CEE). May 1, 2015 changes to consolidate the Energy FinAnswer and FinAnswer Express programs into one program, wattsmart Business (Schedule A-140). In addition, there were changes intended to: Standard offer ($/kwh) and eligible cost cap incentive components were increased. Streamline program delivery for customers and PacifiCorp; Added energy management incentives to increase comprehensiveness of program services and incentives to reach beyond a capital equipment-only focus; Update program services, efficiency baselines, and incentives to align with current codes, standards, third-party specifications and market data; Provide new offers to encourage greater small business customer participation; and Cancel prior tariffs as part of a general administrative clean-up. May 2017 changes to the wattsmart Business program. These changes are intended to: Restructure and align lighting retrofit incentives to reflect the market shift to LED lighting technology Update lighting and Heating/Ventilating/Air-Conditioning typical measures to align with the California state energy code change effective January 1, 2017 Add new measures to the incentive tables, update some existing measures Add new measures to the small business offer, including additional LED lighting measures and non-lighting measures Add new streamlined incentives to help encourage customers purchasing lamps as part of maintenance activities to move to a more efficient lamp rather than purchasing a matching replacement lamp Make other minor administrative changes Historic Changes to the Home Energy Savings program April 2010 Expand the current CFL program to include spiral and specialty bulbs consistent with the Company s long-term strategic plan for lighting in California. Adjust maximum incentives upward. Utilize DEER information for savings reporting. Maintain ENERGY STAR qualified requirement. Split clothes washer incentive into two tiers to align with third party (CEE) specifications and available savings. Modify clothes washer recycling language to allow retailer to receive an incentive for recycling a clothes washer that was replaced by a qualified new clothes washer.
7 Increase dishwasher efficiency standards so eligible equipment exceeds new federal minimum efficiency standard. Update electric Water Heaters specifications so they align with Title 24 Split central air conditioner and heat pump tune-up into two measures by equipment type and align incentives with available savings. This change will reduce tune-up incentive for air conditioners. Eliminate duct sealing based on January 1, 2010, California Title 24 code which requires sealing the duct work for most new or retrofit projects. Eliminate contractor incentive for permanently-installed evaporative coolers. Adjust incentives for new homes with improved equipment and framing beyond the latest version of Title 24. Discontinue incentive for home using gas as a heating fuel. Add incentives for room air conditioners meeting ENERGY STAR requirements and portable evaporative coolers. Add heat pumps (air to air and ductless) to the program May 2014 Restructure and align lighting incentives for screw-in lamps and fixtures with California lighting standard. Add LEDs. Add sunset date for general purpose CFLs. Add delivery channels including mail by request and direct install. Modify qualification criteria and incentive structure for clothes washer to align with increased equipment efficiency and baselines. Modify qualification criteria for clothes washer recycling in an attempt to improve participation. Adjust refrigerator qualifications to align with DEER and modify incentives to reflect available savings. Refrigerator and Freezer recycling delivery methods expanded (to include retailers) and customer eligibility expanded (include non-residential). Revise qualification and add sunset date for tank water heaters in anticipation of April 2015 federal code change. Add heat pump water heater measure for tanks not required by April 2015 standard. Revise heat pump water heater equipment eligibility (and incentives) to insure large tanks exceeds federal standards. Align incentives for evaporative coolers with associated DEER savings and to allow customer self-installations to increase participation. Merge portable and permanently installed evaporative coolers into one measure separated by tiers. Room air conditioners standards and unit energy savings updated for October 2013 ENERGY STAR standard. Move delivery channel to upstream. Remove dishwashers and ceiling fans form the program based on low unit energy savings and cost effective challenges. Add water savings measures; showerheads, aerators and thermostatic valves with upstream, direct install and mail by request delivery channels. Add advanced power strip measure using Regional Technical Forum (RTF) data. Enable upstream, downstream and direct install delivery channels.
8 Adjust insulation incentives and qualifications to reflect available savings in electrically heated homes. Add an air sealing measure with specified ACH reductions and an incentive to align with other California programs. Revise and adjust equipment efficiency standards for heating and cooling equipment to reflect updated federal standards and updated DEER information including available savings. Adjust incentives to align with available savings. Add heat pump conversion measure using RTF information. Remove heat pump and air conditioning tune-up measure based on low unit energy savings per unit and continued lack of uptake within installing contractor community. Add incentives for duct sealing and duct insulation using DEER information (for single family) and RTF information (manufactured homes) and only for projects where not required by the 2010 Title 24 code. Add whole home upgrade path to provide bonus incentives for customers to install multiple measures. Intended to encourage comprehensive projects. Add incentives for new manufactured homes. Add new home incentive to align with the California Advanced Homes Program with incentives based on the new homes percentage improvement beyond Title 24, beginning at 15% better than code and increasing. Individual home energy savings performance will be modeled and verified by independent third-parties. Cancel existing new homes offers and move participants to performance path. Miscellaneous administrative and delivery channel changes to increase delivery flexibility, clarify customer eligibility and improve cost effectiveness. November 2016: Permanently remove the appliance recycling offer from the Home Energy Savings program which affected both residential and non-residential customers. The need for this change began when JACO Environmental, Inc. notified the Company in November 2015 that they were ceasing operations and the service would not be available. PacifiCorp posted a web site notice so customers knew the offer is no longer available. Since the JACO notification, PacifiCorp evaluated the cost effectiveness of a replacement offer using the best available information for California for savings, delivery costs and measure life. The analysis indicated the measure was not costs effective and was not likely to become so. Notice was posted on the web site on September and after the minimum 45 day notice, the change was effective on November 11, Home Energy Savings - changes proposed for 2017 PacifiCorp is planning to make modifications to the Home Energy Savings program for residential customer energy efficiency, which is offered through Schedule D-118. Program changes for 2017 are being made to incorporate updated unit energy savings, comprehensive work paper disposition for screw-in lamps, updated Title 24 requirements and to maintain cost effectiveness under the decrement values from PacifiCorp s 2017 IRP. Consistent with the change process for the Program, notice of the changes will be posted on the program web site 45 days prior to implementation. The Company plans to post the changes on the Program web site no later than November 1, 2017 after having reviewed them with stakeholders. Changes are proposed to be effective on January 1, 2018.
9 Upcoming 2017 changes are intended to: Restructure and align lighting incentives for screw-in lamps and fixtures with California high efficacy LED s. Permanently remove CFL s which have not been include din buy down agreements after January 1, Remove incentives for clothes washer, clothes washer recycling and refrigerators to align with other California IOU programs and to maintain cost effectiveness in response to lower unit energy savings as result of increased federal standards in 2015 and Revise heat pump water heater equipment eligibility (and incentives) to insure large tanks exceeds federal standards. Add hybrid heat pump and heat pump clothes dryers as an emerging technology measure. Adjust and align incentives for water heating measures including low flow showerheads and thermostatic valves to reflect current equipment availability and code requirements. Update advance power strip equipment eligibility so only infrared equipment is eligible for incentives. These equipment efficiency requirements better with the CA Plug initiative. Adjust insulation incentives and qualifications to reflect available savings in electrically heated homes. Move air sealing requirement from ACH and incentive based to a requirement for insulation incentive availability. Maintain air sealing requirements in continued efforts to align with other California programs. Revise and adjust equipment efficiency standards for heating and cooling equipment to reflect updated DEER information including available savings. Adjust incentives to align with available savings. Add incentives for new measures including smart thermostats, spa covers. Adjust/update equipment specifications and incentive delivery for new manufactured homes offer. Revise and adjust new home offer to reflect available savings beyond updated California energy codes. Miscellaneous administrative and delivery channel changes to increase delivery flexibility, clarify and improve marketing offers (for instance separate manufactured homes measures and maintain cost effectiveness.
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