PacifiCorp s Planned Changes to wattsmart Business in Idaho December 2016

Transcription

1 PacifiCorp s Planned Changes to wattsmart Business in Idaho December 2016 PacifiCorp is planning modifications to the wattsmart Business energy efficiency incentive program, which is offered through Schedule 140. Consistent with the flexible tariff process 1 for the wattsmart Business program documented and approved in Case No. PAC-E-12-10, notice of the changes will be posted on the program website 2 45 days prior to implementation. Proposed changes to the incentive tables are included in Exhibit A. Background The wattsmart Business program is available to PacifiCorp s commercial, industrial, and agricultural customers in Idaho and offers incentives for prescriptive/typical, custom and energy management measures. Incentives are available for both retrofit projects and new construction/major renovation projects. Description of Planned wattsmart Business Changes Proposed adjustments are listed below, with further necessary explanation provided in subsequent sections. 1. Adjust reported savings for dairy vacuum pump variable frequency drives from deemed savings to site-specific calculation savings; 2. Change incentive for potato or onion storage fan variable frequency drives from $0.15/kWh to $175/hp, and adjust reported savings from site-specific calculations to deemed savings; and 3. Restructure the Enhanced Incentives for Small Businesses offering to a Small Business Direct Install offering. Changes to Farm and Dairy Variable Frequency Drive for Dairy Vacuum Pumps. Change reported savings for this offering from deemed savings to site-specific calculation. The most recent Regional Technical Forum (RTF) Measure Workbook version 1.2 deactivated this measure as not enough potential remains to justify the research to revise the Unit Energy Savings (UES) value. Accordingly, savings for this measure will change to site-specific calculations in order to provide service to the remaining customers with participation potential. Potato or Onion Storage Fan Variable Frequency Drive. Change incentive from $0.15/kWh to $175/hp, and adjust reported savings from site-specific calculations to a deemed savings value. Project data shows that PacifiCorp s savings calculator provides savings values very close to RTF UES values on average. By adopting the RTF UES savings value with an 1 See Direct Testimony of Nancy Goddard pp and Attachment C in Case No. PAC-E PacifiCorp s Planned Changes to Idaho wattsmart Business program December 2016 Page 1 of 6

2 incentive of $175 per horsepower, administrative processes will be simplified and costs will be reduced. Changes to Small Business Offering Enhanced Incentive for Small Businesses. Restructure this offering to a Small Business Direct Install (SBDI) offering. SBDI Program Overview The enhanced incentive for small business offering has been evaluated and it is recommended to restructure the offering as an SBDI Program for retrofits. This program model will benefit the small business market segment through offering an incentive in the form of a direct installation of energy efficient measures by a certified and/or licensed contractor. Benefits for eligible customers include saving energy, money, and time when upgrading existing lighting and non-lighting systems. Annually, a list of geo-targeted locations throughout PacifiCorp s Idaho service territory will be made available and posted on PacifiCorp s website including where and when SBDI services may be provided. To promote cost-effectiveness, participation will be limited to areas being targeted each year, allowing for an intensive, limited time outreach to customers in targeted areas. Alternate areas will also be selected to help ensure that the overall savings goals for the SBDI Program are achieved. Communities will be identified and targeted based on factors including: Past wattsmart Business Program participation (i.e. market penetration potential); Customer demographics (i.e. receptive and/or underserved communities); and Energy usage and electrical distribution constraints. SBDI services provided to targeted areas are intended to include energy audits of customers facilities identifying qualifying energy savings measures that could be installed, and the associated costs. Project proposals based on completed audits will be provided that fit within customers operational and budgetary parameters. Customers can then choose to move forward with the entire project installing all qualifying upgrades, or select a portion of qualifying upgrades from the project proposal. Customers that choose to install a portion of qualifying upgrades instead of every qualifying upgrade will be required to select the most energy efficient, costeffective upgrades over less efficient, cost-effective upgrades. SBDI Program Incentives Customer incentives will be based on project costs, which will be based on project savings derived from the audit. The SBDI Program is expected to remain costeffective when providing a maximum incentive of $5,000 per facility, however, the initial incentive amount that will be offered to eligible customers will be $4,000 per facility. This amount is expected to be enough to drive participation. Participating PacifiCorp s Planned Changes to Idaho wattsmart Business program December 2016 Page 2 of 6

3 customers will be required to pay a minimum co-pay of 10 percent of project costs up to a maximum of 25 percent. The initial required co-pay amount will be the maximum amount of 25 percent for all customers. Incentive amounts and the customer co-pay percentage may be adjusted within their respective minimum/maximum ranges through the 45-day notice process for up to amounts to help the program stay aligned with savings and budget targets. Customer incentives come in the form of the SBDI Program paying for a percentage of project costs. Customers will not receive incentives in the form of monetary payouts through the SBDI Program. The percentage amount of project costs that the SBDI Program will pay for directly correlates with the customer co-pay percentage. With a required co-pay amount of 25 percent, the SBDI Program would pay for the remaining 75 percent of project costs up to the initial offered incentive amount of $4,000. Individual project costs may vary. Some project costs may be minimal while others may be extensive, depending on what qualifying energy savings measures can be installed at customers facilities. As a result, not all participating customers may receive the initial offered $4,000 incentive amount, but rather a portion of that. Table 1 below shows an estimated example of average, high, and low customer project scenarios, and how customers may end up with varying incentive amounts. Customer Project Scenario Table 1 Average, High End, and Low End Customer Project Scenarios Hours of Operation Energy Savings / kwh Total project Cost Incentive (75% of project costs) Customer Co- Pay (25% of project costs) Simple Payback (in years) Average 3,422 8,692 $3,442 $2,581 $ High 6,000 14,121 $5,222 $3,916 $1, Low 1,500 4,644 $1,839 $1,379 $ As shown in Table 1 above, project savings may also vary from customer to customer depending on facilities needs and qualifying equipment installed for each project. As a result, the amount of participating customers will depend on the actual savings acquired from customer projects and program savings targets. Based upon current SBDI Program targets, estimated participation levels are listed in Table 2 below. Table 2 Estimated Participation Levels and Target Base Program Year Estimated Number of Customer s Served Target Customer Base Total The target customer base percentage is estimated to be percent, which will vary depending on location and customer demographics. PacifiCorp s Planned Changes to Idaho wattsmart Business program December 2016 Page 3 of 6

4 Qualifying equipment for the SBDI Program may include, but not be limited to, lighting, plug load, and HVAC measures. Currently, LED lighting upgrades, advanced power strips, refrigerated case controls, and electrically commutate motors are planned to be offered at the outset of the SBDI Program, once approved. Qualifying equipment intended to be available from the outset of the SBDI Program is included in Table 3 below. Smart thermostats and HVAC tune-ups are being reviewed as a potential offering in 2017/2018 as part of the SBDI Program. Current qualifying equipment lists will be posted and updated as necessary on the SBDI Program webpage. Table 3 Qualified Equipment List Measure Type Efficient Equipment Wattage BR30 LED 9.5 watt PLC/V LED 10.5 watt A19 LED 8.5 watt MR 16 LED 7 watt TLED 2ft lamp 14.5 watt Lighting TLED 4ft lamp 29 watt 4L 4 ft. LED Retro Kit 84 watt 2L 4 ft. LED Retro Kit 43 watt LED HID Replacement 95 watt LED Exterior Wall Pack 26 watt LED Exterior Wall Pack 18 watt Plug-Load Advanced Power Strip Varies Electrically commutated motors Varies (ECM) - cooler Motor Controls ECM Freezer Varies Refrigerated Case Controls TBD TBD Eligible project equipment will change over time as market prices for materials change and new technologies become available. All lighting equipment in the qualified equipment list is also certified by organizations including ENERGY STAR and Consortium for Energy Efficiency. Non-lighting equipment on the qualified equipment list is assessed and certified by the wattsmart Business program. SBDI Marketing A 3-year marketing strategy and annual marketing plan is being developed and will be revised annually as needed. Marketing for the SBDI Program is intended to be focused on engaging geo-targeted marketing both in rural and urban communities through a combination of Company contractors and local contractor firms where possible. Depending on the size and demographics of each area, the following tactics may be used: Direct customer events; Community fairs, street fairs, and Main Street events; Geo-targeted pop-up events and workshops; PacifiCorp s Planned Changes to Idaho wattsmart Business program December 2016 Page 4 of 6

5 Combine SBDI efforts with other scheduled wattsmart Business events (i.e. training events, joint events with contractors, etc.); City Council and Chamber of Commerce Meetings; and Trade/Business Association Events. Door to door (in person and print); Digital (website); Direct-mail or blasts (print); and Coordination with the Company s Regional Business Managers Program Eligibility Eligible small business customers will be defined by the following: Energy demand Maximum of 200 kw or less per month in the preceding 12 months; Rate Schedule 6, 6A, 23, 23A, 35, 35A; and Location (i.e. customer must be located in an area that is being targeted) Eligible rate schedules, maximum incentive levels, and the customer co-pay percentage range will be included in the program incentive tables in Exhibit A, also provided below. Eligible Customer Rate Schedules 6, 6A 23, 23A 35, 35A Cost Effectiveness Incentives for Small Business Direct Installation (Retrofit only) Eligibility Requirements Non-residential facilities not in excess of 200 kw demand monthly in the last twelve months. Non-residential facilities not in excess of 200 kw demand monthly in the last twelve months. Incentive up to $5,000 per facility $5,000 per facility $5,000 per facility Customer Co-pay up to Minimum Maximum 10% 25% 10% 25% 10% 25% Cost-effectiveness analyses for the SBDI and overall wattsmart Business Programs, attached hereto as Exhibits B and C, respectively, were based on the maximum up to incentive levels. Table 4 below, pulled from Exhibit B, and another Table 4 below, pulled from Exhibit C, present the expected cost-effectiveness of the SBDI offering, as well as the wattsmart Business Program level cost-effectiveness with the proposed changes. Detailed inputs and results are presented in Exhibits B and C. The wattsmart Business Program is expected to remain cost-effective from the Utility Cost Test and the Total Resource Cost Test perspectives under all scenarios. PacifiCorp s Planned Changes to Idaho wattsmart Business program December 2016 Page 5 of 6

6 Cost-Effectiveness Test Total Resource Cost Test (PTRC) + Conservation Adder Total Resource Cost Test (TRC) No Adder Table ID wattsmart Business SBDI Program Cost-Effectiveness Levelized $/kwh Costs Benefits Net Benefits Benefit/Cost Ratio $0.062 $1,619,015 $1,963,322 $344, $0.062 $1,619,015 $1,784,838 $165, Utility Cost Test (UCT) $0.056 $1,450,679 $1,784,838 $334, Rate Impact Test (RIM) $3,834,679 $1,784,838 ($2,049,841) 0.47 Participant Cost Test (PCT) Discounted Participant Payback (years) Lifecycle Revenue Impact ($/KWh) $1,194,447 $3,555,554 $2,361, $ Table ID wattsmart Business Portfolio Cost-Effectiveness Cost-Effectiveness Test Levelized $/kwh Costs Benefits Net Benefits Benefit/Cost Ratio Total Resource Cost Test (PTRC) + Conservation Adder Total Resource Cost Test (TRC) No Adder $0.054 $14,736,146 $22,849,022 $8,112, $0.054 $14,736,146 $20,771,839 $6,035, Utility Cost Test (UCT) $0.030 $8,117,691 $20,771,839 $12,654, Rate Impact Test (RIM) $31,640,706 $20,771,839 ($10,868,867) 0.66 Participant Cost Test (PCT) Discounted Participant Payback (years) Lifecycle Revenue Impact ($/KWh) $14,816,051 $34,799,812 $19,983, $ Exhibits Provided Exhibit A wattsmart Business incentive tables and information with changes from the current program marked in redline form. Exhibit B wattsmart Business SBDI Program Cost-Effectiveness Analysis Exhibit C wattsmart Business Overall Program Cost-Effectiveness Analysis PacifiCorp s Planned Changes to Idaho wattsmart Business program December 2016 Page 6 of 6

7 Idaho Non-Residential Energy Efficiency This document includes the following three sections: Definitions of terms used in Schedule 140 and other program documents Incentives General Information Incentive tables DEFINITIONS: Customer: Any party who has applied for, been accepted and receives service at the real property, or is the electricity user at the real property. Energy Efficiency Incentive: Payments of money made by Company to Owner or Customer for installation of an Energy Efficiency Measure pursuant to an acknowledged Energy Efficiency Incentive Offer Letter or approved Energy Efficiency Incentive Application. Energy Efficiency Incentive Offer Letter: An offer made by Company and acknowledged by Owner or Customer providing for Company to furnish Energy Efficiency Incentives for an Energy Efficiency Project. Incentive Application: An application submitted by Owner or Customer to Company for Energy Efficiency or Energy Management Incentives. Energy Efficiency Measure (EEM): A permanently installed measure which can improve the efficiency of the Customer's electric energy use. Energy Efficiency Measure (EEM) Cost: New Construction/Major Renovation: EEM Cost is the total installed cost of energy efficiency equipment or system minus the cost of the code compliance/common practice equipment or system. Retrofit: EEM Cost is the total installed cost of the energy efficiency equipment or modification. In the case of New Construction, Major Renovation and Retrofits, EEM Costs shall mean the Owner or Customer s reasonable costs incurred (net of any discounts, rebates or incentives other than Energy Efficiency Incentives from the Company, or other consideration that reduces the final actual EEM Cost incurred by the Owner or Customer) to purchase and install EEMs at the Owner s or Customer s facility. If the owner or customer installs the EEM then the cost of installation shall be equal to the Owner s or Customer s actual labor costs for such installation. Energy Efficiency Project: One or more EEM(s) at a Non-residential Facility 1 with similar one year payback limitations (below) covered by one Energy Efficiency Incentive Offer Letter. Energy Efficiency Project Cost: The sum of EEM Costs for one or more EEM(s) with similar one year payback limitations (see below) covered by one Energy Efficiency Incentive Offer Letter. 1 Measures at multiple Non-residential Facilities may be included in one Offer Letter for convenience; however, project incentive caps (if any) are applied per individual Non-residential Facility. Idaho wattsmart Business (Schedule 140) Effective Page 1 of 21

8 Energy Management Offer Letter: An offer made by Company and acknowledged by Owner or Customer and Company providing for Company to furnish Energy Management Incentives for an Energy Management Project. Energy Management Incentive: Payments of money made by Company to Owner or Customer for implementation of an Energy Management Measure pursuant to an executed Energy Management Offer Letter. Energy Management Measure (EMM): an operational improvement which, when implemented in an eligible facility, result in electric savings compared to current operations as determined by Company. Energy Management Project: One or more EMM(s) at a Non-residential Facility covered by one Energy Management Offer Letter. Energy Project Manager: an employee or direct contractor of the Customer who will manage electrical energy efficiency projects that deliver savings toward the Customer/Owner s energy savings goal. Energy Project Manager Co-funding: funding towards the Energy Project Manager agreed upon full value salary that is solely attributable to electrical energy efficiency work. Major Renovation: A change in facility use type or where the existing system will not meet Owner/Customer projected requirements within existing facility square footage. Mixed Use: Buildings served by a residential rate schedule and a rate schedule listed under Applicable in Idaho Schedule 140 shall be eligible for services under Schedule 140 provided the Energy Efficiency Project meets the definition of New Construction or where the Company adjusts the baseline energy consumption and costs. New construction: A newly constructed facility or newly constructed square footage added to an existing facility. Non-residential Facility: A Customer site that is served by Company and meets the applicability requirements of Idaho Schedule 140, the program tariff, on file with the Idaho Public Utilities Commission. Owner: The person who has both legal and beneficial title to the real property, and is the mortgager under a duly recorded mortgage of real property, the trustor under a duly recorded deed of trust. Retrofit: Changes, modifications or additions to systems or equipment in existing facility square footage. Idaho wattsmart Business (Schedule 140) Effective Page 2 of 21

9 INCENTIVES GENERAL INFORMATION Incentives for Measures Listed in the Incentive Tables Per unit incentives are listed in the program incentives tables for specific Energy Efficiency Measures (EEMs) and are subject to the incentive caps below. Incentives are subject to change and current incentives can be found on the Idaho energy efficiency program section of the Company website. Custom Incentives EEMs not listed in the prescriptive incentive tables (typical upgrades) may be eligible for a Custom Energy Efficiency Incentive. The Company will complete an analysis of the EEM Cost and electric energy savings and determine whether to offer a custom Energy Efficiency Incentive and the Energy Efficiency Incentive amount. Electric savings resulting from lighting interaction with HVAC equipment will not be eligible for an Energy Efficiency Incentive. Energy management incentives Non-Capital improvements to operations and maintenance within a qualifying facility may be eligible for an Energy Management Incentive. Company will partner with Customer to complete an analysis of the electric energy savings of potential energy management measures and determine whether to offer an Energy Management Incentive and the incentive amount. Energy project manager co-funding The Company may fund an additional $0.025 per kwh of verified wattsmart Business annual energy savings, up to 100 percent of the Energy Project Manager s salary. Salary is based on a letter from the Customer/Owner s human resources or accounting department stating the base annual salary and an appropriate overhead percentage, and subject to approval by Company. Baseline adjustments The baseline wattage for all Retrofit linear fluorescent lighting Energy Efficiency Measures is the lesser of a) Wattage of existing equipment or b) Wattage of deemed baseline ballast and lamp combination as listed in the lighting table available on the Idaho energy efficiency program section of the Company website. Company may adjust baseline electric energy consumption and costs to reflect any of the following: energy codes, standard practice, changes in capacity, changes in production or facility use and equipment at the end of its useful life. Such adjustments may be made for lighting energy efficiency measures installed in New Construction/Major Renovation projects where energy code does not apply. Idaho wattsmart Business (Schedule 140) Effective Page 3 of 21

10 INCENTIVES: 2, 3 Prescriptive Incentives (Typical Upgrades) Category Incentive Percent Project Cost Cap 4 Lighting Retrofit 1-Year Simple Payback Cap for Projects 5 70% Yes Lighting None No New Construction/ Major Renovation Motors None No HVAC None No Building Envelope See incentive None No Food Service lists None No Appliances None No Office None No Farm and Dairy 70% Yes Compressed Air 70% Yes Wastewater and 70% Yes other Refrigeration Enhanced Incentives for Small Businesses Small Business Direct Install (retrofit only) Determined by Company with not-to-exceed amounts as shown in the Table below12 80% Up to 75% No Custom Non-Lighting Incentives for qualifying measures not on the prescriptive list. 67 Energy Management Energy Project Manager Co- Funding $0.15 per annual kwh savings $0.02 per kwh annual savings $0.025 per kwh annual savings Other Limitations See incentive lists Available to all Schedule 6, 6A, 23, and 23A, 35, and 35A customers meeting eligibility requirementssmall business criteria on Company website. Qualifying equipment must be installed by an approved contractor/vendor. 70% Yes N/A N/A No N/A 100% of salary and eligible overhead No Minimum savings goal posted on Company website 8 2 The Customer or Owner may receive only one financial incentive from Company per measure. Financial incentives include energy efficiency incentive payments and energy management payments. Energy Project Manager Co- Funding is available in addition to the project incentives. 3 Incentives for prescriptive measures are restricted to the amounts shown on the website. 4 All EEM Costs are subject to Company review and approval prior to making an Energy Efficiency Incentive Offer. All final EEM Costs are subject to Company review and approval prior to paying an Energy Efficiency Incentive per the terms of the Energy Efficiency Incentive Offer Letter or approved Application. Company review and approval of EEM Costs may require additional documentation from the Customer or Owner. 5 The 1 year simple payback cap means incentives will not be available to reduce the simple payback of a project below one year. If required, individual measure incentives will be adjusted downward pro-rata so the project has a simple payback after incentives of one year. 6 Project Cost and 1-Year Simple Payback Caps do not apply to New Construction and Major Renovation projects that are subject to state energy code. 7 Energy Efficiency Incentives may be adjusted such that Customer or Owner does not receive more than 100% of EEM Costs in total incentives including incentives available under this program and Environmental Quality Incentives Program (EQIP) incentives. 8 Customers may aggregate accounts to achieve minimum requirements. Idaho wattsmart Business (Schedule 140) Effective Page 4 of 21

11 Incentives for lighting retrofits Measure Category Lighting Retrofits Interior Lighting TLED Relamp Fluorescent Relamp Lighting Retrofits Exterior Lighting Street/Pole Eligibility Requirements Lamp wattage reduction of 10 Watts, No ballast or driver retrofit Lamp wattage reduction of 3 Watts, No ballast retrofit Incentive up to $0.15/kWh $10/lamp $1/lamp $0.15/kWh $0.15/kWh Notes for lighting retrofit incentives: 1. To be eligible for the incentives listed, the new lighting system must use less energy than the existing lighting system replaced or the baseline lighting system as determined by the Company. 2. Incentives are capped at 70 percent of Energy Efficiency Project Costs and will not be available to reduce the Energy Efficiency Project simple payback below one year. Energy Efficiency Project Costs are subject to Company approval. 3. Incentives for TLED Fluorescent Relamps may not be combined with other lamp or fixture incentives and will only be paid once per facility. 4. Qualified equipment lists referenced in the table are posted on the Idaho energy efficiency program section of the Company s website. BF = Ballast Factor CEE = Consortium for Energy Efficiency CFL = Compact Fluorescent Lamp CMH = Ceramic Metal Halide HID = High Intensity Discharge (e.g. Mercury Vapor, High Pressure Sodium, Metal Halide) HO = High Output LED = Light-Emitting Diode PSMH = Pulse-Start Metal Halide VHO = Very High Output Idaho wattsmart Business (Schedule 140) Effective Page 5 of 21

12 Incentives for lighting controls and non-general illuminance (retrofit only) Measure Category Eligibility Requirements Occupancy Control PIR, Dual Tech, or Integral Sensor Incentive up to $ 0.30/Watt controlled Interior Lighting Control Daylighting Control Must control interior fixtures with Continuous, Stepped, or Bi-level ballast or automated control that dims 50% or more of the fixture in response to daylight. $0.34/Watt controlled Advanced Daylighting Control Must incorporate both an occupancy sensor and daylighting sensor operating as part of the same control sequence in the same interior space. $0.38/Watt controlled Exterior Lighting Control Exterior Dimming Control Exit Sign Must control LED technology in an exterior lighting application. Control must be integral to LED fixture or fixture-mounted and reduce fixture power by 75% or more for a minimum of 6 hrs per night or when the space has been unoccupied for 15 minutes or less. LED or photoluminescent replacing incandescent or fluorescent $0.34/Watt controlled $15/Sign LED Message Center Sign LED replacing existing incandescent signage $5/Lamp Non-General Illuminance LED Channel Letter Sign LED Marquee/Cabinet Sign LED Case Lighting Reach-in Case LED Case Lighting Open Case Refrigerated Case Occupancy Sensor LED replacing existing neon or fluorescent signage LED replacing existing fluorescent signage LED replacing fluorescent lamp in refrigerated cases. LED must be listed on qualified equipment list. Installed in existing refrigerated case with LED lighting Lighting Custom Not listed above $5/Linear Foot $5/Linear Foot $10/linear foot $10/linear foot $1/linear foot $0.15/kWh annual energy savings Notes for retrofit lighting controls and non-general illuminance incentives 1. To be eligible for the incentives listed, the new lighting system must use less energy than the existing lighting system replaced or the baseline lighting system as determined by the Company. 2. Incentives are capped at 70 percent of Energy Efficiency Project Costs and incentives will not be available to reduce the Energy Efficiency Project simple payback below one year. Energy Efficiency Project Costs are subject to Company approval. 3. Incentives for Advanced Daylighting Controls may not be combined with other occupancy control or daylighting control incentives. 4. Watt controlled refers to the total wattage of lighting fixtures down circuit from the control. 5. Qualified equipment lists for measures referenced in the above table are posted on the Utah energy efficiency program section of the Company s website. PIR = Passive Infrared Dual Tech = Sensors combining ultrasonic and passive infrared LED = Light-emitting Diode Idaho wattsmart Business (Schedule 140) Effective Page 6 of 21

13 Incentives for new construction/major renovation lighting Measure Category Eligibility Requirements Interior Lighting* Lighting and Lighting Control 1. The total connected interior lighting power for New Construction/Major Renovation projects must be at least 10% lower than the interior lighting power allowance calculated under the applicable version of the state energy code. For New Construction/Major Renovation projects not included in the state energy code, the total connected lighting power must be 10% lower than common practice as determined by the Company. 2. Energy savings is subject to approval by the Company. Incentive up to $0.08/kWh annual energy savings Induction Fixture All Wattages, New Fixtures Only $75/Fixture LED Outdoor Pole/Roadway, decorative <75W; LED must be listed on qualified equipment list $75/Fixture LED Outdoor Pole/Roadway 200W; LED must be listed on qualified equipment list >200W; LED must be listed on qualified equipment list $100/fixture $400/fixture Exterior Lighting LED Canopy/Soffit LED must be listed on qualified equipment list $125/fixture LED Wall Packs LED Flood Lights <50 Watts; LED must be listed on qualified equipment list 50 Watts; LED must be listed on qualified equipment list <100 Watts; LED must be listed on qualified equipment list 100 Watts; LED must be listed on qualified equipment list $50/fixture $75/fixture $75/fixture $150/fixture CFL Wall Pack All Wattages, Hardwire Fixtures Only $30/Fixture Exterior Dimming Control Must control LED technology in an exterior lighting application. Control must be integral to LED fixture or fixture-mounted and reduce fixture power by 75% or more for a minimum of 6 hrs per night or when the space has been unoccupied for 15 minutes or less. $0.34/Watt controlled** Custom Not listed above $0.08/kWh annual energy savings *Project Cost Caps of 70% and 1-Year Simple Payback Caps apply to New Construction and Major Renovation projects that are not subject to state energy code. The 1 year simple payback cap means incentives will not be available to reduce the simple payback of a project below one year. If required, individual measure incentives will be adjusted downward pro-rata so the project has a simple payback after incentives of one year. **Exterior lighting controls required by the applicable version of the state energy code are not eligible for incentives. CFL = Compact Fluorescent Lamp LED = Light-Emitting Diode Idaho wattsmart Business (Schedule 140) Effective Page 7 of 21

14 Incentives for Motors Equipment Type Size Category Sub-Category Electronically Commutated Motor Variable-Frequency Drives (HVAC fans and pumps) Green Motor Rewinds 1 horsepower 100 horsepower 15 and 5,000 hp Minimum Efficiency Requirement Incentive up to Refrigeration application -- $0.50/watt HVAC application -- $50/horsepower HVAC fans and pumps -- See Note 2 Must meet GMPG Standards $65/horsepower $1/horsepower Refer to Note 3 Notes for motor incentives: 1. Equipment that meets or exceeds the efficiency requirements listed for the equipment category in the above table may qualify for the listed incentive. 2. Throttling or bypass devices, such as inlet vanes, bypass dampers, three-way valves, or throttling valves must be removed or permanently disabled to qualify for HVAC fan or pump VFD incentives. VFDs required by or used to comply with the applicable version of the Idaho energy code are not eligible for incentives. Savings will only be realized for installations where a variable load is present. 3. For Green Motor Rewinds, the participating electric motor service center is paid $2/horsepower for eligible Green Motor Rewinds. A minimum of $1/horsepower is paid by the service center to the Customer as a credit on the motor rewind invoice. The balance is retained by the service center. Green Motor Rewind motors that are installed or placed in inventory may qualify for an incentive. ECM = Electronically Commutated Motor GMPG = Green Motors Practices Group HVAC = Heating, Ventilation and Air-Conditioning VFD = Variable-Frequency Drive Idaho wattsmart Business (Schedule 140) Effective Page 8 of 21

15 Incentives for HVAC equipment Minimum Efficiency Requirement & Incentive ( up to ) Equipment Type Size Category Sub-Category $25/ton $50/ton $75/ton Unitary Commercial Air Conditioners, Air- Cooled Unitary Commercial Air Conditioners, Water and Evaporatively Cooled (See Note 8) Packaged Terminal Air Conditioners (PTAC) Packaged Terminal Heat Pumps (PTHP) (Heating & Cooling Mode) Heat Pumps, Air- Cooled (Cooling Mode) Heat Pumps, Air- Cooled (Heating Mode) - See Note 3 < 65,000 Btu/hr (single phase) All equipment sizes (three phase) All equipment sizes Split system and single package Split system and single package Split system and single package -- CEE Tier 2 -- CEE Tier 1 CEE Tier 2 -- CEE Tier ,000 Btu/hr Single package 12.2 EER > 8,000 Btu/hr and < 10,500 Btu/hr 10,500 Btu/hr and 13,500 Btu/hr Single package 11.9 EER Single package 10.7 EER > 13,500 Btu/hr Single package 9.9 EER ,000 Btu/hr Single package -- > 8,000 Btu/hr and < 10,500 Btu/hr 10,500 Btu/hr and 13,500 Btu/hr Single package -- Single package -- > 13,500 Btu/hr Single package -- < 65,000 Btu/hr (single phase) < 65,000 Btu/hr (three phase) 65,000 Btu/hr (three phase) < 65,000 Btu/hr (single phase) < 65,000 Btu/hr (three phase) 65,000 Btu/hr (three phase) Split system and single package Split system and single package Split system and single package Split system and single package Split system and single package 47 F db/43 F wb outdoor air 17 F db/15 F wb outdoor air 12.2 EER and 3.4 COP 11.5 EER and 3.3 COP 10.7 EER and 3.1 COP 9.8 EER and 3.0 COP -- CEE Tier 2 CEE Tier 2 CEE Tier CEE Tier 2 -- CEE Tier CEE Tier Heat Pumps, Water- Source (Cooling Mode) < 135,000 Btu/hr 86 F Entering Water -- CEE Tier 1 -- Heat Pumps, Water- Source (Heating Mode) - See Note 3 < 135,000 Btu/hr 68 F Entering Water -- CEE Tier 1 -- VRF Air-Cooled Heat Pumps (Cooling Mode) All Equipment Sizes Multisplit System or Multisplit System with Heat Recovery CEE Tier 1 VRF Air-Cooled Heat Pumps (Heating Mode) See Note 3 All Equipment Sizes Multisplit System or Multisplit System with Heat Recovery (See note 3) CEE Tier 1 Idaho wattsmart Business (Schedule 140) Effective Page 9 of 21

16 VRF Water-Cooled Heat Pumps (Cooling Mode) < 135,000 Btu/hr Multisplit System or Multisplit System with Heat Recovery CEE Tier 1 VRF Water-Cooled Heat Pumps (Heating Mode) See Note 3 < 135,000 Btu/hr Multisplit System or Multisplit System with Heat Recovery (See note 3) CEE Tier 1 Heat Pumps, Ground- Source or Groundwater- Source (Heating & Cooling Mode) - See Note 3 All sizes 77 F Entering Water -- ENERGY STAR Qualified -- Ground-Source or Groundwater-Source Heat Pump Loop All sizes -- $25/ton Notes for HVAC incentives: 1. Equipment that meets or exceeds the efficiency requirements listed for the size category in the above table may qualify for the listed incentive. Equipment must meet all listed efficiency requirements to qualify for the listed incentives. 2. PTHPs can replace electric resistive heating, which must be removed. 3. Incentives for heat pumps are available per ton of cooling capacity ONLY. No incentives are paid per ton of heating capacity. Heat pumps must meet both the cooling mode and heating mode efficiency requirements to qualify for per ton cooling efficiency incentives. 4. Equipment size categories are specified in terms of net cooling capacity at AHRI standard conditions as determined by AHRI Standard 210/240 for units <65,000 Btu/hr, AHRI Standard 340/360 for units 65,000 Btu/hr, AHRI Standard 310/380 for PTAC and PTHP units, and AHRI Standard 1230 for VRF systems. 5. Ground and Water Source Heat Pumps must meet or exceed listed efficiency requirements when rated in accordance with ISO to qualify for the listed incentive. 6. Units rated only with an IPLV may qualify for the listed incentives if the value meets or exceeds the minimum IPLV established as part of the Consortium for Energy Efficiency Commercial Unitary Air-Conditioning and Heat Pump specification effective January 16, Efficiency requirements align with the Unitary Air-Conditioning and Heat Pump Specification maintained by the Consortium for Energy Efficiency for equipment with heating sections other than electric resistance. CEE minimum efficiency requirements are listed on the Company website. 8. Evaporative pre-cooler incentives are subject to the project cost cap and the one-year payback cap. AHRI = Air-Conditioning, Heating and Refrigeration Institute CEE = Consortium for Energy Efficiency COP = Coefficient of Performance EER = Energy Efficiency Ratio HSPF = Heating Seasonal Performance Factor HVAC = Heating, Ventilation and Air-Conditioning IEER = Integrated Energy Efficiency Ratio IPLV = Integrated Part Load Value PTAC = Packaged Terminal Air Conditioner PTHP = Packaged Terminal Heat Pump SEER = Seasonal Energy Efficiency Ratio VRF = Variable Refrigerant Flow Idaho wattsmart Business (Schedule 140) Effective Page 10 of 21

17 Incentives for other HVAC equipment Equipment Type Size Category Sub-Category Minimum Efficiency Requirement Incentive ( up to ) Evaporative Cooling All Direct or Indirect $0.06/ CFM Indirect-Direct Evaporative All sizes Cooling (IDEC) Chillers All except chillers intended for backup service only 365/366 Day Programmable All sizes in portable or Occupancy-based classrooms with Thermostat mechanical cooling Occupancy Based PTHP/PTAC control Evaporative Pre-cooler (Retrofit Only) All sizes with no prior occupancy based control Serving primarily occupant comfort cooling loads (no more than 20% for process cooling loads) Must be installed in portable classroom unoccupied during summer months For single air-cooled packaged rooftop or matched split system condensers only. Applicable system components must exceed minimum efficiencies required by energy code Must exceed minimum efficiencies required energy code. 365/366 day thermostatic or occupancy-based setback capability See note 4 Minimum performance efficiency of 75%. Must have enthalpy controls to control precooler operation. Water supply must have chemical or mechanical water treatment. $0.15/kWh annual energy savings (See note 2) $0.15/kWh annual energy savings See Note 3 $150/thermostat $50/controller Notes for other HVAC equipment incentives: 1. Equipment that meets or exceeds the efficiency requirements listed for the equipment category in the above table may qualify for the listed incentive. 2. Incentives are paid at $0.15/kWh annual energy savings. IDEC energy savings are subject to approval by the Company. 3. Incentives paid at $0.15/kWh annual energy savings. Chiller energy savings are subject to approval by the Company. 4. Controller units must include an occupancy-based control and include the capability to set back the zone temperature during extended unoccupied periods and set up the temperature once the zone is occupied. 5. Incentives for Evaporative Pre-coolers are capped at 70 percent of Energy Efficiency Project Costs and incentives will not be available to reduce the Energy Efficiency Project simple payback below one year. 6. Energy Efficiency Project Costs are subject to Rocky Mountain Power approval. CFM = Cubic Feet per Minute HVAC = Heating, Ventilating and Air-Conditioning IDEC = Indirect-Direct Evaporative Cooling PTAC = Packaged Terminal Air Conditioner PTHP = Packaged Terminal Heat Pump $75/ton of attached cooling capacity (See Note 5) Idaho wattsmart Business (Schedule 140) Effective Page 11 of 21

18 Incentives for building envelope (Retrofit) Equipment Type Category Minimum Efficiency Requirement Cool Roof -- ENERGY STAR Qualified Roof/Attic Insulation -- Minimum increment of R-10 insulation added Wall Insulation -- Minimum increment of R-10 insulation added Windows (See notes 3, 4) Site-built Assembly U-Factor 0.30 and SHGC 0.33 (glazing only rating) U-Factor 0.30 and SHGC 0.33 (entire window assembly rating) Window Film Existing windows See Note 5 Incentive ( up to ) $0.10/square foot $0.09/square foot $0.07/square foot $0.35/square foot $0.35/square foot $0.15/kWh annual energy savings (See Note 5) Notes for building envelope incentives (retrofit): 1. Equipment that meets or exceeds the efficiency requirements listed for the equipment category in the above table may qualify for the listed incentive. 2. Building must be conditioned with mechanical cooling to be eligible for envelope incentives. 3. Energy performance of window assemblies and glazing products must be rated in accordance with NFRC. Sitebuilt metal window systems must include a thermal break within the frame or other appropriate NFRC certification to qualify for incentives. Skylights are not eligible to receive incentives. 4. Window square footage is determined by the dimensions of the entire window assembly, not just the window glass. 5. Incentives for window film are calculated based on film specifications and window orientation at $0.15/kWh annual energy savings. Energy savings subject to approval by the Company. NFRC = National Fenestration Rating Council SHGC = Solar Heat Gain Coefficient Idaho wattsmart Business (Schedule 140) Effective Page 12 of 21

19 Incentives for building envelope (New Construction/Major Renovation) Equipment Type Category Minimum Efficiency Requirement Cool Roof -- ENERGY STAR Qualified Roof/Attic Insulation -- Wall Insulation -- Windows (See Notes 3, 4) Site-built Assembly Minimum increment of R-5 insulation above code (See Note 5) Minimum increment of R-3.7 continuous insulation above code (See Note 5) U-Factor 0.30 and SHGC 0.33 (glazing only rating) U-Factor 0.30 and SHGC 0.33 (entire window assembly rating) Incentive ( up to ) $0.10/square foot $0.09/square foot $0.07/square foot $0.35/square foot $0.35/square foot Notes for building envelope incentives for New Construction/Major Renovation projects: 1. Equipment that meets or exceeds the efficiency requirements listed for the equipment category in the above table may qualify for the listed incentive. 2. Building must be conditioned with mechanical cooling to be eligible for envelope incentives. 3. Energy performance of window assemblies and glazing products must be rated in accordance with NFRC. Sitebuilt metal window systems must include a thermal break within the frame or other appropriate NFRC certification to qualify for incentives. Skylights are not eligible to receive incentives. 4. Window square footage is determined by the dimensions of the entire window assembly, not just the window glass. 5. Compliance with the minimum efficiency requirements of roof/attic and wall Insulation measures may be demonstrated with equivalent U-factors and are subject Company approval. NFRC = National Fenestration Rating Council SHGC = Solar Heat Gain Coefficient Idaho wattsmart Business (Schedule 140) Effective Page 13 of 21

20 Incentives for food service equipment Equipment Type Commercial Dishwasher (High Temperature models w/electric boosters Only) Electric Insulated Holding Cabinet Electric Steam Cooker Equipment Category Undercounter Minimum Efficiency Requirement Incentive/Unit ( up to ) $100 Stationary rack, single tank, door type ENERGY STAR Qualified $400 Single tank conveyor $1,000 Multiple tank conveyor $500 Volume 28 cu. ft. $ Volume < 28 cu. ft. ENERGY STAR Qualified $300 Volume < 13 cu. ft. $200 3-, 4-, 5- and 6-pan or larger sizes - Tier 1 3-, 4-, 5- and 6-pan or larger sizes - Tier 2 ENERGY STAR Qualified $130 ENERGY STAR Qualified w/ Heavy Load Efficiency 68% Electric Convection Oven -- ENERGY STAR Qualified $350 Electric Griddle ENERGY STAR Tier 2 Qualified $150 Electric Combination Oven 6-15 pans ENERGY STAR Qualified $1, pans ENERGY STAR Qualified $275 Electric Commercial Fryer Ice Machines (Air-Cooled Only) Residential Refrigerator Commercial Transparent Door Refrigerator (See Note 3) Commercial Transparent Door Freezer (See Note 3) Demand Controlled Kitchen Ventilation Exhaust Hood (Retrofit Only) Anti-Sweat Heater Controls (Retrofit Only) $300 Tier 1 ENERGY STAR Qualified $200 Tier 2 Tier 1: Harvest rate < 500 lbs/day Tier 1: Harvest rate 500 lbs/day Tier 2: Harvest rate < 500 lbs/day Tier 2: Harvest rate 500 lbs/day Used in a business 0 < Volume < 15 cu. ft. ENERGY STAR Qualified w/cooking Efficiency 85%, Idle Energy Rate 860 Watts ENERGY STAR Qualified CEE Tier 2 Qualified See Home Energy Savings Program $300 $125 $150 $250 $400 See Note 2 15 Volume < 30 cu. ft. $50 30 Volume < 50 cu. ft. ENERGY STAR Qualified $75 $25 Volume 50 cu. ft. $125 Chest configuration $50 0 < Volume < 15 cu. ft. 15 Volume < 30 cu. ft. $50 30 Volume < 50 cu. ft. ENERGY STAR Qualified $75 $25 Volume 50 cu. ft. $100 Chest configuration $100 Must be installed on commercial kitchen exhaust system. Low-Temp (Freezing) Cases Med-Temp (Refrigerated) Cases Variable speed motors must be controlled to vary fan speed depending upon kitchen demand, as indicated by connected sensors. Technologies that reduce energy consumption of antisweat heaters based on sensing humidity. $0.15/kWh annual energy savings (See note 4) $20/linear foot (case length) $16/linear foot (case length) Idaho wattsmart Business (Schedule 140) Effective Page 14 of 21

21 Notes for food service equipment incentives: 1. Equipment that meets or exceeds the efficiency requirements listed for the equipment category in the above table may qualify for the listed incentive. 2. Refer to Company's Home Energy Savings program for efficiency requirements and incentives for listed residential appliances used in a business. 3. Incentives are paid at $0.15/kWh annual energy savings. Demand controlled kitchen ventilation exhaust hood energy savings subject to approval by Company. 4. Incentives for commercial refrigerators and freezers will no longer be available effective March 27, CEE = Consortium for Energy Efficiency MDEC = Maximum Daily Energy Consumption V = Association of Home Appliance Manufacturers (AHAM) Volume (cubic feet) Incentives for office equipment Equipment Type Minimum Efficiency Requirements Incentive ( up to ) Smart Plug Strip 1. Incentive applies to any plug strip that eliminates idle or stand-by power consumption of connected plug-load appliance through the use of an occupancy sensor, electric load sensor, or timer. 2. Applies only to electric plug-load applications (e.g. computer monitors, desk lamps, etc.) $15/qualifying unit Notes for office equipment incentives: 1. Equipment that meets or exceeds the efficiency requirements listed for the equipment category in the above table may qualify for the listed incentive. Incentives for appliances Equipment Type Equipment Category Minimum Efficiency Requirement Residential (used in a business) Incentive ( up to ) See Home Energy Savings program See Note 3 High-Efficiency Clothes Washer Heat Pump Water Heater Commercial (must have electric water heating) Residential (used in a business) ENERGY STAR Qualified $100 See Home Energy Savings Program Notes for appliance incentives: 1. Equipment that meets or exceeds the efficiency requirements listed for the equipment category in the above table may qualify for the listed incentive. 2. Equipment must meet the efficiency rating standard that is in effect on the date of purchase. 3. Refer to Company's Home Energy Savings program for efficiency requirements and incentives for listed residential appliances used in a business. Idaho wattsmart Business (Schedule 140) Effective Page 15 of 21

22 Incentives for Farm and Dairy Equipment Equipment Type Automatic Milker Takeoff (Retrofit only) Agricultural Engine Block Heater Timer High Efficiency Circulating Fan (See note 2) Equipment Category Minimum Efficiency Requirements Equipment must be able to sense milk flow and remove milker when flow reaches a pre-set level. The vacuum pump serving the affected milking units must be equipped with a VFD. Incentive is available for adding automatic milker takeoffs to existing milking systems, not for takeoffs on a brand new system where there was none before. Replacement of existing automatic milker takeoffs is not eligible for this listed incentive, but may qualify for a Custom Energy Efficiency Incentive. Timer must be a UL-listed device and rated for a minimum of 15 amps continuous duty. Incentive ( up to ) $235 each $10 each 12-23" Diameter Fan must achieve an efficiency level of 11 cfm/watt $25/fan 24-35" Diameter Fan must achieve an efficiency level of 18 cfm/watt $35/fan 36-47" Diameter Fan must achieve an efficiency level of 18 cfm/watt $50/fan 48" Diameter Fan must achieve an efficiency level of 25 cfm/watt $75/fan Heat Recovery -- Heat recovery unit must use heat rejected from milk cooling refrigeration system to heat water. Customer must use electricity for water heating. $0.15/kWh annual energy savings High-efficiency livestock waterer -- Must have two inches or more of insulation surrounding the inside of the waterer and an electric heating element. Waterers with a heating element greater than 250 watts must have an adjustable thermostat. Non-electric waterers do not qualify. $165 each 12-23" Diameter Fan must achieve an efficiency level of 11 cfm/watt $45/fan High Efficiency Ventilation Fan (See note 2) 24-35" Diameter Fan must achieve an efficiency level of 13 cfm/watt $75/fan 36-47" Diameter Fan must achieve an efficiency level of 17 cfm/watt $125/fan 48" Diameter Fan must achieve an efficiency level of 19.5 cfm/watt $150/fan Milk Pre-cooler (Retrofit Only) -- The equipment must cool milk with well water before it reaches the bulk cooling tank. New construction not eligible. $0.15/kWh annual energy savings Programmable Ventilation Controller -- The controller must control ventilation fans based on temperature or other applicable factors such as humidity, odor concentration, etc. $20/fan controlled Variable Frequency Drive for Dairy Vacuum Pump (Retrofit only) -- VFD must vary motor speed based on target vacuum level. Incentive available for retrofit only (i.e. new construction and replacement of existing VFD not eligible.) $165/hp Potato or onion storage fan VFD Add variable frequency drive to existing or new fan in potato or onion storage. $175/hp$0.15/ kwh annual energy savings Idaho wattsmart Business (Schedule 140) Effective Page 16 of 21

23 Notes for Farm and Dairy equipment incentives: 1. Equipment that meets or exceeds the efficiency requirements above may qualify for the listed incentive. 2. Fan performance must be rated by an independent testing body in accordance with the appropriate ANSI/AMCA standards. 3. Incentives are capped at 70 percent of Energy Efficiency Project Costs, and incentives will not be available to reduce the Energy Efficiency Project simple payback below one year. Energy savings and Energy Efficiency Project Costs are subject to Company approval. 4. Except where noted, all equipment listed in the table is eligible for incentives in both new construction and retrofit projects. AMCA = Air Movement and Control Association International, Inc. ANSI = American National Standards Institute VFD = Variable Frequency Drive cfm = cubic feet per minute w = watt Idaho wattsmart Business (Schedule 140) Effective Page 17 of 21

24 Incentives for Compressed Air Equipment Equipment Category Replace With Limitations Unit Rated low pressure drop filter where: 1. Pressure loss at rated flow is 1 psi when new and 3 psi at element change. 1. Compressor system must be 25 hp and 2. Particulate filtration is Low- Standard 75 hp. 100% at 3.0 microns and Pressure coalescing 2. Compressor discharge pressure setpoint 99.98% at 0.1 to 3.0 microns, Drop Filter filter must be reduced by 2 psi or more after with 5ppm liquid carryover. installation of low pressure drop filter. 3. Filter is deep-bed mist scfm eliminator style, with element life 5 years. 4. Rated capacity of filter is 500 scfm. Receiver Capacity Addition Cycling Refrigerated Dryer VFD Controlled Compressor Zero Loss Condensate Drain Outside Air Intake Compressed air end use reduction Limited or no receiver capacity ( 2 gallons per scfm of trim compressor capacity) Non-cycling refrigerated dryer Fixed speed compressor Timer drain Compressor drawing intake air from compressor room Inappropriate or inefficient compressed air end use Total receiver capacity after addition must be > 2 gallons per scfm of trim compressor capacity Cycling refrigerated dryer 75 hp VFD controlled oilinjected screw compressor operating in system with total compressor capacity 75 hp, not counting backup compressor capacity Zero loss condensate drain (See note 4) Permanent ductwork between compressor air intake and outdoors Functionally equivalent alternatives or isolation valves 1. Compressor system size 75 hp, not counting backup compressor(s). 2. Trim compressor must use load/unload control, not inlet modulation or on/off control. 3. Systems with VFD compressor or using variable displacement compressor as trim compressor are not eligible. 1. Compressor system size 75 hp. 2. Rated dryer capacity must be 500 scfm. 3. Dryer must operate exclusively in cycling mode and cannot be equipped with the ability to select between cycling and non-cycling mode. 4. Refrigeration compressor must cycle off during periods of reduced demand. 1. Total compressor capacity in upgraded system is 75 hp, not counting backup compressor. 2. Compressor must adjust speed as primary means of capacity control. Drain is designed to function without release of compressed air into the atmosphere. Any size system is eligible there is no restriction on compressor size. 1. Compressor system size 75 hp. 2. Ductwork must meet manufacturer's specifications, which may include: (a) 0.25" W.C. pressure loss at rated flow, and (b) allow use of compressor room air during extremely cold outside air conditions. Any size system is eligible there is no restriction on compressor size. gal scfm each hp Incentive ( up to ) $2/scfm $3/gallon above 2 gallons per scfm $2/scfm $0.15/kWh annual energy savings $100 each $6/hp $0.15/kWh annual energy savings Idaho wattsmart Business (Schedule 140) Effective Page 18 of 21

25 Notes for Compressed Air incentives: 1. Equipment that meets or exceeds the efficiency requirements above may qualify for the listed incentive. 2. Except for the zero loss condensate drain and compressed air end use reduction measures, eligibility for incentives is limited to compressed air systems with total compressor capacity of 75 hp or less, not including backup compressor capacity that does not normally run. 3. Incentives are capped at 70 percent of Energy Efficiency Project Costs, and incentives will not be available to reduce Energy Efficiency Project simple payback below one year. Energy savings and Energy Efficiency Project Costs are subject to Company approval. 4. Zero loss condensate drains purchased as an integral part of another measure are eligible for the incentive shown above. hp = horsepower ppm = parts per million psi = pounds per square inch scfm = cubic feet of air per minute at standard conditions (14.5 psia, 68 F, and 0% relative humidity) VFD = variable frequency drive Incentives for Wastewater and Other Refrigeration Energy Efficiency Measures Equipment Type Replace With Incentive ( up to ) Conventional controls (defrost timeclock, space thermostat, Adaptive refrigeration controller Adaptive refrigeration $0.15/kWh annual evaporator fan control, if any, and, in some instances, electric control energy savings thermal expansion valve in expansion valve some instances) Fast acting door Manually operated door, automatic door with long cycle time, strip curtain, or entryway with no door in refrigerated/conditioned space Fast acting door $0.15/kWh annual energy savings Wastewater low power mixer Excess aeration capacity Extended range circulator $0.15/kWh annual energy savings Notes for other energy efficiency measures incentives table 1. Equipment that meets or exceeds the efficiency requirements above may qualify for the listed incentive. 2. Incentives are capped at 70 percent of Energy Efficiency Project Costs and incentives will not be available to reduce the Energy Efficiency Project simple payback below one year. Energy savings and Energy Efficiency Project Costs are subject to Company approval. Eligible Customer Rate Schedules 6, 6A Incentives for Small Business Direct Installation (Retrofit Only) Eligibility Requirements Non-residential facilities not in excess of 200 kw demand monthly in the last twelve months Incentive up to Customer Co-pay up to Minimum Maximum $5,000 / facility 10% 25% 23, 23A $5,000 / facility 10% 25% 35, 35A Non-residential facilities not in excess of 200 kw demand monthly in the last twelve months $5,000 / facility 10% 25% Idaho wattsmart Business (Schedule 140) Effective Page 19 of 21

26 Enhanced Incentives for Small Businesses (Retrofit only) 9 Measure Category Eligibility Requirements T8 Fluorescent T5 Fluorescent LED Lighting Control Retrofit (Lamp/Ballast) Delamp T12 Conversion (Kit/Lamp/Ballast) Relamp Replacement High Bay (Fixture/Lamp/Ballast) Replacement T5 Standard (Fixture/Lamp/Ballast) Relamp Replacement High Bay (Fixture/Lamp/Ballast) Replacement/Retrofit - Recessed Downlight (Fixture or Kit) Replacement - Exit Signs Wall Occupancy Sensor Retrofit Ceiling Occupancy Sensor Retrofit 4 CEE Qualified Reduced Wattage Lamp and CEE Qualified Ballast included on qualified ballast list 4 CEE Qualified Reduced Wattage or High Performance Lamp and CEE Qualified Ballast. Must remove one or more lamps. To delamp an existing fixture, the lamp and all corresponding sockets must be permanently disabled. 8 T12 to (2) 4 CEE Qualified Reduced Wattage or High Performance T8 Lamps and CEE Qualified Ballast. Lamp wattage reduction 3 Watts, No ballast retrofit Fixture with less than six (6) lamps: 4 CEE Qualified High Performance Lamp. Must replace T12HO/VHO, Incandescent or HID Fixture with six (6) or more lamps: 4 CEE Qualified High Performance Lamp. Must replace T12HO/VHO, Incandescent or HID Incentive 10 ( up to ) $140/Fixture $120/Fixture $150/Fixture $15/Lamp Installed $300/Fixture $350/Fixture 4 Nominal Lamp 28 Watts, Ballast Factor 1.0 $250/Fixture Lamp wattage reduction 3 Watts, No ballast retrofit Fixture with less than six (6) lamps: Must replace T12HO/VHO, Incandescent or HID Fixture with six (6) or more lamps: Must replace T12HO/VHO, Incandescent or HID Must replace existing incandescent or fluorescent, LED must be listed on qualified equipment list Must replace incandescent or fluorescent PIR, Dual Tech PIR, Dual Tech $22/Lamp Installed $375/Fixture $450/Fixture $150/Fixture $100/Sign $100/Sensor $220/Sensor Notes for enhanced incentives for small business direct installation customers: 1. To be eligible for the incentives listed, the new lighting system must use less energy than the existing lighting system replaced or the baseline lighting system as determined by the Company. 2. Incentives are capped at 80 percent of Energy Efficiency Project Costs. Energy Efficiency Project Costs are subject to Company approval. 3. Incentives for T8 Fluorescent Premium Delamps may not be combined with other linear fluorescent lamp or fixture incentives. Complete fixture removals are not eligible. 4. Incentives for T8 and T5 Fluorescent Relamps may not be combined with other linear fluorescent lamp or fixture incentives and will only be paid once per facility Qualified equipment lists referenced in the above table are posted on the Idaho energy efficiency program section of the Company s website. BF = Ballast Factor CEE = Consortium for Energy Efficiency CFL = Compact Fluorescent Lamp 9 Incentives for measures in this table are available only to Small Business customers as defined in the incentives table on page Actual incentives are subject to change and will be determined by Company on a component level basis on no less than an annual basis, will not exceed the values in this table, and will be posted on the Company website. Idaho wattsmart Business (Schedule 140) Effective Page 20 of 21

27 CMH = Ceramic Metal Halide HID = High Intensity Discharge (e.g. Mercury Vapor, High Pressure Sodium, Metal Halide) HO = High Output LED = Light-Emitting Diode PSMH = Pulse-Start Metal Halide VHO = Very High Output Idaho wattsmart Business (Schedule 140) Effective Page 21 of 21

28 MEMORANDUM To: Eli Morris From: Brian Hedman and Byron Boyle Subject: ID Wattsmart Business Small Business Direct Install Cost-Effectiveness Date: July 12, 2016 The tables below present the cost-effectiveness findings for the ID Wattsmart Business Small Business Direct Install (SBDI) program, based on costs and savings estimates provided by PacifiCorp in the spreadsheet entitled wsb C-E Inputs.xlsx ; and in an from Eli Morris on June 20, The utility discount rate is from the 2015 PacifiCorp Integrated Resource Plan. For the SBDI program, cost-effectiveness was tested using the 2015 IRP East Commercial Lighting 53% Load Factor Decrements. Table 1 lists modeling inputs. Table 2 list the costs and incentives and Table 3 lists the annual energy savings for each year. shows the complete cost-effectiveness results for the SBDI program. The SBDI program is cost-effective from all test perspectives except the RIM. Table ID Wattsmart Business SBDI Program Financial Inputs Parameter Value Discount Rate 6.66% Commercial Line Loss 10.75% Commercial Energy Rate ($/kwh) base rate $ Inflation Rate 1.90% Table ID Wattsmart Business SBDI Program Costs Program Year Admin Delivery Incentives Total Utility Costs Participant Incremental Cost Small Business 2016 $6,036 $136,125 $29,300 $171,461 $38,600 Small Business 2017 $12,876 $207,923 $468,800 $689,599 $617,600 Small Business 2018 $13,734 $207,923 $498,100 $719,757 $656,200

29 Program Table ID Wattsmart Business SBDI Program Annual Savings Year Gross KWh Savings Realization Rate Adjusted KWh Savings Net-to- Gross Percentage Net KWh Savings Measure Life Small Business ,000 98% 98,000 90% 88, Small Business ,600,000 98% 1,568,000 90% 1,411, Small Business ,700,000 98% 1,666,000 90% 1,499, Cost-Effectiveness Test Total Resource Cost Test (PTRC) + Conservation Adder Total Resource Cost Test (TRC) No Adder Table ID Wattsmart Business SBDI Program Cost-Effectiveness Levelized $/kwh Costs Benefits Net Benefits Benefit/Cost Ratio $0.062 $1,619,015 $1,963,322 $344, $0.062 $1,619,015 $1,784,838 $165, Utility Cost Test (UCT) $0.056 $1,450,679 $1,784,838 $334, Rate Impact Test (RIM) $3,834,679 $1,784,838 ($2,049,841) 0.47 Participant Cost Test (PCT) Discounted Participant Payback (years) Lifecycle Revenue Impact ($/KWh) $1,194,447 $3,555,554 $2,361, $

30 MEMORANDUM To: Eli Morris From: Brian Hedman and Byron Boyle Subject: ID Wattsmart Business Portfolio Cost-Effectiveness Date: July 12, 2016 The tables below present the cost-effectiveness findings for the ID Wattsmart Business Portfolio, based on costs and savings estimates provided by PacifiCorp in the spreadsheet entitled wsb C-E Inputs.xlsx ; and in an from Eli Morris on June 20 and June 30, The utility discount rate is from the 2015 PacifiCorp Integrated Resource Plan. For the Wattsmart Business Portfolio, cost-effectiveness was tested using the 2015 IRP East Commercial Lighting 53%, the East Commercial Cooling 14%, and East Industrial 40% Load Factor Decrements depending on delivery channel. Table 1 lists modeling inputs. Table 2 list the costs and incentives and Table 3 lists the annual energy savings for each year. shows the complete cost-effectiveness results for the Wattsmart Business Portfolio. The Wattsmart Business Portfolio is cost-effective from all test perspectives except the RIM. Table ID Wattsmart Business Portfolio Financial Inputs Parameter Value Discount Rate 6.66% Commercial Line Loss 10.75% Industrial Line Loss 7.52% Commercial Energy Rate ($/kwh) base rate $ Industrial Energy Rate ($/kwh) base rate $ Inflation Rate 1.90%

31 Table ID Wattsmart Business Portfolio Program Costs Program Year Admin Delivery Incentives Total Utility Costs Participant Incremental Cost Wattsmart Portfolio 2016 $200,000 $807,109 $2,281,866 $3,288,975 $6,999,518 Wattsmart Portfolio 2017 $200,000 $858,023 $1,524,477 $2,582,500 $4,209,569 Wattsmart Portfolio 2018 $200,000 $944,323 $1,594,501 $2,738,824 $4,402,440 Program Wattsmart Portfolio Wattsmart Portfolio Wattsmart Portfolio Table ID Wattsmart Business Portfolio Annual Savings Year Gross KWh Savings Realization Rate Adjusted KWh Savings Net-to- Gross Percentage Net KWh Savings Measure Life ,651, % 16,214, % 12,681, ,900, % 9,597, % 7,708, ,700, % 10,396, % 8,308, Cost-Effectiveness Test Total Resource Cost Test (PTRC) + Conservation Adder Total Resource Cost Test (TRC) No Adder Table ID Wattsmart Business Portfolio Cost-Effectiveness Levelized $/kwh Costs Benefits Net Benefits Benefit/Cost Ratio $0.054 $14,736,146 $22,849,022 $8,112, $0.054 $14,736,146 $20,771,839 $6,035, Utility Cost Test (UCT) $0.030 $8,117,691 $20,771,839 $12,654, Rate Impact Test (RIM) $31,640,706 $20,771,839 ($10,868,867) 0.66 Participant Cost Test (PCT) Discounted Participant Payback (years) Lifecycle Revenue Impact ($/KWh) $14,816,051 $34,799,812 $19,983, $