Community Energy and Efficiency Development Fund

Transcription

1 Community Energy and Efficiency Development Fund 2013 Draft Annual Report Submitted by Green Mountain Power November 14,

2 Community Energy and Efficiency Development Fund 2013 Draft Annual Report Table of Contents 2013 Annual Report 1. Introduction 2. Highlights 3. Service and Initiatives Summary 3.1 Electric Investments 3.2 Thermal Investments 4. Summary 5. Overall Services and Initiatives Results Services and Initiatives Summary Community Efficiency and Economic Development Fund Annual Report Appendices 2

3 1. INTRODUCTION This 2013 Community Energy and Efficiency Development Fund (CEED) Annual Report is submitted by Green Mountain Power (GMP) and the Vermont Energy Investment Corporation (VEIC) to the Vermont Public Service Board (Board). The CEED Fund was created as a result of the merger between Central Vermont Public Service (CVPS) and GMP. Under CEED, which was part of a Board-approved Memorandum of Understanding with the Vermont Public Service Department (PSD), GMP will invest in projects intended to result in positive net societal benefits (NSB) for customers located in the areas of the state formerly served by CVPS and now served by GMP. In this report, the areas in which these customers properties are located are described as former CVPS territory. Savings claims in this report have been verified by the PSD, as described in the Evaluation and Verification Plan jointly filed by GMP and the PSD in April 12, The plan was approved May 29, 2013 by PSD docket #7988. This document serves as a final, verified CEED program savings claim report and annual report for HIGHLIGHTS CEED initiatives delivered significant economic and energy savings benefits to residential and business customers in former CVPS territory. Here are some highlights from 2013 CEED investments: $8.0 million in net societal benefits (NSB) 1,702 megawatt hours (MWh) in annual electric savings 3,991 million British Thermal Units (MMBtu) in annual thermal savings 2013 CEED Benefits by Sector Benefit Residential Sector Business Sector Total 2013 Cumulative starting 6/15/2012 NSB $6.1 million $1.9 million $8.0 million $15.25 million NSB benefit-toinvestment 1.2 to to to to 1 ratio Investment $5.1 million $1.05 million $6.2 million $12.20 million Annual electric savings 53 MWh (associated 1,650 MWh 1702 MWh 1,702 MWh with thermal improvements) Annual thermal savings 3,168 MMBtu 822 MMBtu 3,991 MMBtu 3,991 MMBtu 3. SERVICES AND INITIATIVES SUMMARY CEED programs and services in 2013 represented a mix of electric and thermal efficiency investments. GMP considers this portfolio of programs to be a thoughtful balance of tested programs and 3

4 innovations, promoting reliable delivery of benefits, while allowing exploration of newer, creative approaches. Programs were coordinated with existing statewide entities and met all regulatory requirements. These included: VEIC; Efficiency Vermont; NeighborWorks of Western Vermont; Shelter Analytics; Common Sense Energy; Energy Futures Group; EnSave; Vermont Agency of Agriculture, Food & Markets; Vermont Fuel Dealers Association; Building Performance Professionals Association of Vermont, and the University of Vermont Extension. In addition, coordination of data collection, management, reporting, and evaluation and verification activities were maximized to the extent possible with protocols and schedules in existence for Efficiency Vermont. In cases where entities other than VEIC and its subcontractors were under contract to deliver CEED programs and services, GMP ensured coordination of data collection and reporting to provide a single deliverable to regulators. All services and programs with the exception of the Vermont Weatherization Program, served customers that were not eligible for weatherization assistance services. Weatherization services were provided through a direct investment by GMP to the Vermont Weatherization Program in 2012 and Electric Investments Savings acquired by Vermont businesses, institutions, and municipalities working within the CEED Business Electric Programs in 2013 totaled 1,642 megawatt hours (MWh) and 446 MMBtu delivering Societal Benefits of more than $1.6 million to approximately 600 customers. The average anticipated return on investment for commercial efficiency improvements in 2013 was 38%. Resulting CEED efforts began on April 1, Total of $819k invested, yielding $1.6 million in NSB NSB ratio for business electric investments in 2013: 1.9 to 1. Total energy savings for business electric investments: 1,642 MWh The above results were achieved through Efficiency Vermont s activities undertaken in service to existing commercial facilities. Highlights of efforts in existing buildings follow here Business Existing Facilities Mutual Fund Through the Business Existing Facilities (BEF) Mutual Fund, costs and savings associated with efficiency projects undertaken by existing businesses in former CPVS territory were allocated to both Efficiency Vermont and GMP. Through this approach, GMP investments in the Efficiency Vermont BEF program, enabled efficiency improvements, and related savings, beyond what would have been possible through Efficiency Vermont alone. Account Management Through the CEED BEF mutual fund, designated Efficiency Vermont staff, with specialized knowledge of working with large energy users, continued to establish and maintain long term, proactive professional relationships with individual businesses in former CVPS territory. Through this approach, an 4

5 understanding was gained about companies particular priorities. Customized services were tailored to each business. Such approaches aimed to best position businesses to: 1) deepen savings; 2) successfully complete multiple projects over time; 3) utilize best practices in energy use management, and 4) engage in continuous energy improvement, which helps customers look holistically at their energy use to obtain sustainable and verifiable energy savings. In 2013, over 175 projects were undertaken by businesses in former CVPS territory served through Account Management, garnering a combined savings of $123,000 in annual energy costs from measures completed in SMALL BUSINESSES Through the CEED BEF mutual fund, small businesses in former CVPS territory were able to take advantage of: technical guidance and education about efficiency opportunities, technologies, and financial solutions through direct customer interaction and strategic outreach via numerous avenues, including business media placements, chambers of commerce, business associations, and utility partners; phone consultations, through the Customer Support Department, designed to help small businesses identify savings opportunities Simplified rebate form and process to enable customers to access financial assistance easily and predictably EverGreen Revolving Loan Fund EverGreen Revolving Loan Fund The EverGreen Revolving Loan Fund, previously only available through the GMP Energy Efficiency Fund (EEF) was expanded to include legacy CVPS territory K-12 schools. The Evergreen Fund provides interest-free capital for energy efficiency projects developed by a school and approved by Efficiency Vermont. GMP provides on-bill financing. The loans are structured so that the annual savings from a project will equal or exceed the annual loan repayment amount. Loan repayments are used to fund the next round of projects in additional schools. By focusing on a project that assists schools and municipalities, the EverGreen Fund distributes CEED program benefits to a broad cross-section of legacy CVPS territory customers due to the fact that costs for schools and municipalities are borne by entire communities. There are approximately 140 schools in legacy CVPS territory, with more than six million square feet of combined facility space serving more than 30,000 students. Annual electrical usage from these schools is approximately 50,000 MWhs; nearly half of Vermont s entire K-12 school market. CEED investments in 2013 were used for program definition, outreach and marketing, technical assistance to customers, and to establish a pipeline of projects that will be implemented in Project Identification 5

6 Efficiency Vermont provided Forward Thinking Consultants with a list of active school lighting retrofit opportunities and terminated lighting retrofit projects in former CVPS territory. Outreach/Marketing Key contacts at each school were identified and initial contact was made by Forward Thinking Consultants. In addition, a letter and EverGreen Informational packet was sent to all key contacts (See Appendix II). Project Development/Technical Assistance to Schools Project development and technical assistance work included: assistance to schools with understanding of project economics, payback, lighting retrofit equipment, coordination with lighting designer and incentives available. This work was done collaboratively by Forward Thinking Consultants as well as VEIC staff involved in Engineering and Program Management. In 2013, project development work was completed with 20 schools representing five supervisory unions. Projects estimates totaled $355,000 with over $250,000 identified as EverGreen funding. As of December 31, 2013, ten schools were moving forward with plans to seek voter approval during Town Meeting Day Capitalization of the Evergreen Fund will occur in Program Development Program development activities included creation of an opportunity list for outreach, process development, and systems development. This work was completed by VEIC staff over the course of Farm Direct Installation The Farm Direct Installation program included direct installation of compact fluorescent light bulbs (CFLs) in both farm operation buildings and farm houses -- and timers for farm equipment engine block heaters. A subcontractor, EnSave Inc., traveled throughout the service territory to enroll participants, make installations, educate farmers on additional efficiency project opportunities and collect information about current equipment on site. Agricultural operations included dairy farms, livestock farms, greenhouse operations, maple producers, and others. In 2013, EnSave visited 93 farms installing over 1300 CFLs and 170 engine block timers Farm Greenhouse Biomass The Vermont Agency of Agriculture, Food, and Markets (AAFM) initiated efforts to ramp up a Farm Greenhouse Biomass program in partnership with the University of Vermont extension and VEIC. The program, slated for a 2014 implementation, was established to promote the installation of biomass heating systems for greenhouses. Efforts in 2013 included program planning, and customer outreach, and engagement, resulting in commitment from an initial four farmers for equipment installations in Installation and implementation of biomass systems was shifted to 2014 from its originally targeted timeframe of fall of 2013 in order to give farmers more time to plan, budget, and schedule projects. 3.2 Thermal Investments 6

7 Per Public Service Board order, Societal Benefits for thermal efficiency are deemed at 1.2 times GMP investments in thermal efficiency improvements completed by all residential customers, including those who qualify for Vermont s Weatherization Program, DPS Thermal Efficiency Evaluation activities, and other thermal efficiency investments Residential Thermal Investments Residential thermal savings acquired through 2013 CEED investments were over 3,000 MMBtu. These savings were equal to the energy used to heat more than 40 1 homes for more than a year. Over the lifetime of the thermal efficiency improvements installed in homes in 2013, as much energy will be saved as is used to heat more than 450 homes for a year. These results were achieved through the efforts described below: Home Performance with ENERGY STAR Through the Home Performance with ENERGY STAR Mutual Fund, efficiency projects undertaken by households were allocated to both Efficiency Vermont and GMP. Through this approach, GMP invested in the Efficiency Vermont Home Performance with ENERGY STAR program, and a share of the eligible program benefits and costs were allocated to CEED. CEED funding increased the number of households in former CVPS territory participating in Efficiency Vermont s Home Performance with ENERGY STAR program. Efficiency Vermont supports a network of more than 70 Home Performance with ENERGY STAR contractors serving Vermont homeowners. Efficiency Vermont provides contractor training, promotional support, project management and tracking tools for contractors and customers, and customer incentives. In 2013, 721 customers in legacy CVPS territory completed thermal retrofit projects; the projects saved a total of over 10,500 MMBtu with over 3000 MMBtu being allocated to GMP CEED. CEED-funded efforts promoted home energy retrofits through an innovative service delivery model in partnership with NeighborWorks of Western Vermont (NeighborWorks) in five counties of legacy CVPS territory (Addison, Bennington, Rutland, Windham, and Windsor counties). The NeighborWorks service model worked in conjunction with Efficiency Vermont incentive and reporting structures, ensuring that savings, costs, baseline assumptions, and but for claims were allocated across Efficiency Vermont and CEED budgets in a clear fashion, consistent with regulatory reporting requirements. The Vermont Home Energy Challenge In 2013, Efficiency Vermont partnered with the Vermont Energy and Climate Action work (VECAN; a network of town energy coordinators and committees) to launch the Vermont Home Energy Challenge. Seventy-nine communities competed with towns in their region to weatherize 3% of local homes by working with Home Performance with ENERGY STAR contractors. Building on this volunteer-driven foundation, CEED funding augmented the Efficiency Vermont effort through enhanced delivery of marketing, in partnership with town energy committees and other local and regional partners in legacy CVPS territory, to increase customer participation in thermal efficiency. 1 Based on approximately 75 MMBtu load per residence. 7

8 Vermont Fuel Dealers Association Partnership GMP helped customers to obtain thermal savings through coordination with Efficiency Vermont s partnership with the Vermont Fuel Dealers Association. Through this partnership, Efficiency Vermont launched the Efficiency Excellence work (EEN) in The EEN is designed to provide fuel dealers with training in home efficiency, enabling them to conduct home energy checkups and to advise customers looking for ways to reduce their heating bills. EEN dealers are trained to collaborate with Home Performance with ENERGY STAR contractors, who are qualified to provide more in-depth guidance on energy usage, and to complete audits and comprehensive home energy projects. In 2013, 58 heating and cooling technicians representing 19 fuel dealers were trained in basic building science and ten fuel dealers have signed partnership agreements to participate in Efficiency Vermont s Efficiency Excellence work in Heating and Cooling. Efficiency Vermont matched the GMP investment in this partnership in order to provide a statewide offering. Condominium Efficiency Initiative Pilot GMP launched the Condominium Efficiency Initiative pilot in service to a residential sector with ownership/management structures that present unique challenges to the completion of energy retrofits. The pilot was undertaken in partnership with Shelter Analytics, as implementer, and Energy Futures Group, serving in an advisory capacity. In 2013, the pilot delivered 136 audits and scheduled 45 resulting retrofit projects. Weatherization Following the Board's Docket 7770 Order approving the CEED Fund, GMP worked with the Office of Economic Opportunity (OEO) division of the Vermont Department for Children and Families to develop a weatherization services agreement. Under the agreement, OEO must ensure that the Vermont Weatherization Program (VWP) offices use the invested CEED funds for the benefit GMP customers in legacy CVPS territory. GMP delivered the required first year investment of $6 million to the VWP in November GMP delivered an additional $4 million investment in Business Thermal Investments CEED funding increased the number of businesses in legacy CVPS territory participating in Efficiency Vermont s Building Performance program. This program, the business-facility counterpart of Home Performance with ENERGY STAR, supplies thermal improvements to a class of commercial structures. A total of 17 CEED-funded projects were completed in 2013, acquiring over 900 MMBtu. In conjunction with expanded Building Performance participation, GMP implemented a pilot effort in partnership with Common Sense Energy to promote targeted thermal improvements in small- and medium-sized businesses. This activity explored how best to achieve thermal benefits in businesses that do not meet the current eligibility criteria of the Building Performance Program. The pilot targeted 20 inns, bed-and-breakfasts, and small grocery stores for audits and thermal improvements. Nine audits and three retrofits were completed in

9 3.2.3 Cold Climate Heat Pumps While the above CEED-funded efforts supporting thermal investments were targeted either to residential or commercial customers, CEED also funded a key program providing benefits to both residential and small business customers. The Cold-Climate Heat Pump (CCHP) program introduced customers and partners to this emerging, ultra-efficient heating technology, which provides space heating at about half the cost of oil, propane, or kerosene. Through the program, systems were installed in buildings that had been weatherized, or were scheduled to be weatherized through Efficiency Vermont s Home Performance with ENERGY STAR or Building Performance programs. The CCHP program supported two approaches to the application of heat pump technology: 1) Mini-split ductless heat pumps for targeted heating within a building, and 2) Whole-house heat pumps as a central space heating and water heating system. In this first year, 35 units were installed (33 in homes), with 10 of these including equipment installed to collect detailed temperature and operating data to support future understanding and analysis of the technology. Activities in 2013 included establishing program technology performance specifications, coordinating with installation contractors, and maximizing system installations within the available time frame. Focus was placed on outreach, marketing, and training, as well as on building partnerships between efficiency, renewable, and heating, ventilation, and air conditioning (HVAC) contractors. 4. Summary The GMP CEED Fund report 1,702 MWh in electric savings and 3,991 MMBtu in thermal savings in Business services participants realized overall energy savings with a net societal benefit to investment ratio of 1.8 to 1 and residential participants realized a ratio of 1.2 to 1. On average, for every dollar that GMP invested in energy efficiency services in 2013, those services generated approximately $1.25 in benefits. The table below summarizes the cumulative benefits and costs of all services to date across all sectors, providing a breakdown by type of efficiency (thermal versus electric) Cumulative Summary of Services All Services and Initiatives Subtotal Thermal Efficiency Services Subtotal Electric Efficiency Services Program-to-Date Benefits and Costs (2012$) Present Value of Societal Benefits $27,603,332 $24,982,021 $2,621,311 Present Value of Societal Costs $12,353,948 $11,355,464 $988,484 Societal Benefits (NSB) $15,249,385 $13,626,557 $1,622,828 Present Value of GMP Costs $12,199,569 $11,355,464 $844,105 (NSB/GMP Cost) Ratio

10 APPENDICES I CEED Services and Initiatives II. EverGreen Informational Packet 10

11 APPENDIX I 2013 CEED Services and Initiatives Annual Report 11

12 APPENDIX II: EverGreen Informational Packet 12

13 Community Energy and Efficiency Development Fund 2013 Draft Annual Report Table of Contents 2013 Annual Report 1. Introduction 2. Highlights 3. Service and Initiatives Summary 3.1 Electric Investments 3.2 Thermal Investments 4. Summary 5. Overall Services and Initiatives Results Services and Initiatives Summary Community Efficiency and Economic Development Fund Annual Report Appendices 2

14 1. INTRODUCTION This 2013 Community Energy and Efficiency Development Fund (CEED) Annual Report is submitted by Green Mountain Power (GMP) and the Vermont Energy Investment Corporation (VEIC) to the Vermont Public Service Board (Board). The CEED Fund was created as a result of the merger between Central Vermont Public Service (CVPS) and GMP. Under CEED, which was part of a Board-approved Memorandum of Understanding with the Vermont Public Service Department (PSD), GMP will invest in projects intended to result in positive net societal benefits (NSB) for customers located in the areas of the state formerly served by CVPS and now served by GMP. In this report, the areas in which these customers properties are located are described as former CVPS territory. Savings claims in this report have been verified by the PSD, as described in the Evaluation and Verification Plan jointly filed by GMP and the PSD in April 12, The plan was approved May 29, 2013 by PSD docket #7988. This document serves as a final, verified CEED program savings claim report and annual report for HIGHLIGHTS CEED initiatives delivered significant economic and energy savings benefits to residential and business customers in former CVPS territory. Here are some highlights from 2013 CEED investments: $8.0 million in net societal benefits (NSB) 1,702 megawatt hours (MWh) in annual electric savings 3,991 million British Thermal Units (MMBtu) in annual thermal savings 2013 CEED Benefits by Sector Benefit Residential Sector Business Sector Total 2013 Cumulative starting 6/15/2012 NSB $6.1 million $1.9 million $8.0 million $15.25 million NSB benefit-toinvestment 1.2 to to to to 1 ratio Investment $5.1 million $1.05 million $6.2 million $12.20 million Annual electric savings 53 MWh (associated 1,650 MWh 1702 MWh 1,702 MWh with thermal improvements) Annual thermal savings 3,168 MMBtu 822 MMBtu 3,991 MMBtu 3,991 MMBtu 3. SERVICES AND INITIATIVES SUMMARY CEED programs and services in 2013 represented a mix of electric and thermal efficiency investments. GMP considers this portfolio of programs to be a thoughtful balance of tested programs and 3

15 innovations, promoting reliable delivery of benefits, while allowing exploration of newer, creative approaches. Programs were coordinated with existing statewide entities and met all regulatory requirements. These included: VEIC; Efficiency Vermont; NeighborWorks of Western Vermont; Shelter Analytics; Common Sense Energy; Energy Futures Group; EnSave; Vermont Agency of Agriculture, Food & Markets; Vermont Fuel Dealers Association; Building Performance Professionals Association of Vermont, and the University of Vermont Extension. In addition, coordination of data collection, management, reporting, and evaluation and verification activities were maximized to the extent possible with protocols and schedules in existence for Efficiency Vermont. In cases where entities other than VEIC and its subcontractors were under contract to deliver CEED programs and services, GMP ensured coordination of data collection and reporting to provide a single deliverable to regulators. All services and programs with the exception of the Vermont Weatherization Program, served customers that were not eligible for weatherization assistance services. Weatherization services were provided through a direct investment by GMP to the Vermont Weatherization Program in 2012 and Electric Investments Savings acquired by Vermont businesses, institutions, and municipalities working within the CEED Business Electric Programs in 2013 totaled 1,642 megawatt hours (MWh) and 446 MMBtu delivering Societal Benefits of more than $1.6 million to approximately 600 customers. The average anticipated return on investment for commercial efficiency improvements in 2013 was 38%. Resulting CEED efforts began on April 1, Total of $819k invested, yielding $1.6 million in NSB NSB ratio for business electric investments in 2013: 1.9 to 1. Total energy savings for business electric investments: 1,642 MWh The above results were achieved through Efficiency Vermont s activities undertaken in service to existing commercial facilities. Highlights of efforts in existing buildings follow here Business Existing Facilities Mutual Fund Through the Business Existing Facilities (BEF) Mutual Fund, costs and savings associated with efficiency projects undertaken by existing businesses in former CPVS territory were allocated to both Efficiency Vermont and GMP. Through this approach, GMP investments in the Efficiency Vermont BEF program, enabled efficiency improvements, and related savings, beyond what would have been possible through Efficiency Vermont alone. Account Management Through the CEED BEF mutual fund, designated Efficiency Vermont staff, with specialized knowledge of working with large energy users, continued to establish and maintain long term, proactive professional relationships with individual businesses in former CVPS territory. Through this approach, an 4

16 understanding was gained about companies particular priorities. Customized services were tailored to each business. Such approaches aimed to best position businesses to: 1) deepen savings; 2) successfully complete multiple projects over time; 3) utilize best practices in energy use management, and 4) engage in continuous energy improvement, which helps customers look holistically at their energy use to obtain sustainable and verifiable energy savings. In 2013, over 175 projects were undertaken by businesses in former CVPS territory served through Account Management, garnering a combined savings of $123,000 in annual energy costs from measures completed in SMALL BUSINESSES Through the CEED BEF mutual fund, small businesses in former CVPS territory were able to take advantage of: technical guidance and education about efficiency opportunities, technologies, and financial solutions through direct customer interaction and strategic outreach via numerous avenues, including business media placements, chambers of commerce, business associations, and utility partners; phone consultations, through the Customer Support Department, designed to help small businesses identify savings opportunities Simplified rebate form and process to enable customers to access financial assistance easily and predictably EverGreen Revolving Loan Fund EverGreen Revolving Loan Fund The EverGreen Revolving Loan Fund, previously only available through the GMP Energy Efficiency Fund (EEF) was expanded to include legacy CVPS territory K-12 schools. The Evergreen Fund provides interest-free capital for energy efficiency projects developed by a school and approved by Efficiency Vermont. GMP provides on-bill financing. The loans are structured so that the annual savings from a project will equal or exceed the annual loan repayment amount. Loan repayments are used to fund the next round of projects in additional schools. By focusing on a project that assists schools and municipalities, the EverGreen Fund distributes CEED program benefits to a broad cross-section of legacy CVPS territory customers due to the fact that costs for schools and municipalities are borne by entire communities. There are approximately 140 schools in legacy CVPS territory, with more than six million square feet of combined facility space serving more than 30,000 students. Annual electrical usage from these schools is approximately 50,000 MWhs; nearly half of Vermont s entire K-12 school market. CEED investments in 2013 were used for program definition, outreach and marketing, technical assistance to customers, and to establish a pipeline of projects that will be implemented in Project Identification 5

17 Efficiency Vermont provided Forward Thinking Consultants with a list of active school lighting retrofit opportunities and terminated lighting retrofit projects in former CVPS territory. Outreach/Marketing Key contacts at each school were identified and initial contact was made by Forward Thinking Consultants. In addition, a letter and EverGreen Informational packet was sent to all key contacts (See Appendix II). Project Development/Technical Assistance to Schools Project development and technical assistance work included: assistance to schools with understanding of project economics, payback, lighting retrofit equipment, coordination with lighting designer and incentives available. This work was done collaboratively by Forward Thinking Consultants as well as VEIC staff involved in Engineering and Program Management. In 2013, project development work was completed with 20 schools representing five supervisory unions. Projects estimates totaled $355,000 with over $250,000 identified as EverGreen funding. As of December 31, 2013, ten schools were moving forward with plans to seek voter approval during Town Meeting Day Capitalization of the Evergreen Fund will occur in Program Development Program development activities included creation of an opportunity list for outreach, process development, and systems development. This work was completed by VEIC staff over the course of Farm Direct Installation The Farm Direct Installation program included direct installation of compact fluorescent light bulbs (CFLs) in both farm operation buildings and farm houses -- and timers for farm equipment engine block heaters. A subcontractor, EnSave Inc., traveled throughout the service territory to enroll participants, make installations, educate farmers on additional efficiency project opportunities and collect information about current equipment on site. Agricultural operations included dairy farms, livestock farms, greenhouse operations, maple producers, and others. In 2013, EnSave visited 93 farms installing over 1300 CFLs and 170 engine block timers Farm Greenhouse Biomass The Vermont Agency of Agriculture, Food, and Markets (AAFM) initiated efforts to ramp up a Farm Greenhouse Biomass program in partnership with the University of Vermont extension and VEIC. The program, slated for a 2014 implementation, was established to promote the installation of biomass heating systems for greenhouses. Efforts in 2013 included program planning, and customer outreach, and engagement, resulting in commitment from an initial four farmers for equipment installations in Installation and implementation of biomass systems was shifted to 2014 from its originally targeted timeframe of fall of 2013 in order to give farmers more time to plan, budget, and schedule projects. 3.2 Thermal Investments 6

18 Per Public Service Board order, Societal Benefits for thermal efficiency are deemed at 1.2 times GMP investments in thermal efficiency improvements completed by all residential customers, including those who qualify for Vermont s Weatherization Program, DPS Thermal Efficiency Evaluation activities, and other thermal efficiency investments Residential Thermal Investments Residential thermal savings acquired through 2013 CEED investments were over 3,000 MMBtu. These savings were equal to the energy used to heat more than 40 1 homes for more than a year. Over the lifetime of the thermal efficiency improvements installed in homes in 2013, as much energy will be saved as is used to heat more than 450 homes for a year. These results were achieved through the efforts described below: Home Performance with ENERGY STAR Through the Home Performance with ENERGY STAR Mutual Fund, efficiency projects undertaken by households were allocated to both Efficiency Vermont and GMP. Through this approach, GMP invested in the Efficiency Vermont Home Performance with ENERGY STAR program, and a share of the eligible program benefits and costs were allocated to CEED. CEED funding increased the number of households in former CVPS territory participating in Efficiency Vermont s Home Performance with ENERGY STAR program. Efficiency Vermont supports a network of more than 70 Home Performance with ENERGY STAR contractors serving Vermont homeowners. Efficiency Vermont provides contractor training, promotional support, project management and tracking tools for contractors and customers, and customer incentives. In 2013, 721 customers in legacy CVPS territory completed thermal retrofit projects; the projects saved a total of over 10,500 MMBtu with over 3000 MMBtu being allocated to GMP CEED. CEED-funded efforts promoted home energy retrofits through an innovative service delivery model in partnership with NeighborWorks of Western Vermont (NeighborWorks) in five counties of legacy CVPS territory (Addison, Bennington, Rutland, Windham, and Windsor counties). The NeighborWorks service model worked in conjunction with Efficiency Vermont incentive and reporting structures, ensuring that savings, costs, baseline assumptions, and but for claims were allocated across Efficiency Vermont and CEED budgets in a clear fashion, consistent with regulatory reporting requirements. The Vermont Home Energy Challenge In 2013, Efficiency Vermont partnered with the Vermont Energy and Climate Action work (VECAN; a network of town energy coordinators and committees) to launch the Vermont Home Energy Challenge. Seventy-nine communities competed with towns in their region to weatherize 3% of local homes by working with Home Performance with ENERGY STAR contractors. Building on this volunteer-driven foundation, CEED funding augmented the Efficiency Vermont effort through enhanced delivery of marketing, in partnership with town energy committees and other local and regional partners in legacy CVPS territory, to increase customer participation in thermal efficiency. 1 Based on approximately 75 MMBtu load per residence. 7

19 Vermont Fuel Dealers Association Partnership GMP helped customers to obtain thermal savings through coordination with Efficiency Vermont s partnership with the Vermont Fuel Dealers Association. Through this partnership, Efficiency Vermont launched the Efficiency Excellence work (EEN) in The EEN is designed to provide fuel dealers with training in home efficiency, enabling them to conduct home energy checkups and to advise customers looking for ways to reduce their heating bills. EEN dealers are trained to collaborate with Home Performance with ENERGY STAR contractors, who are qualified to provide more in-depth guidance on energy usage, and to complete audits and comprehensive home energy projects. In 2013, 58 heating and cooling technicians representing 19 fuel dealers were trained in basic building science and ten fuel dealers have signed partnership agreements to participate in Efficiency Vermont s Efficiency Excellence work in Heating and Cooling. Efficiency Vermont matched the GMP investment in this partnership in order to provide a statewide offering. Condominium Efficiency Initiative Pilot GMP launched the Condominium Efficiency Initiative pilot in service to a residential sector with ownership/management structures that present unique challenges to the completion of energy retrofits. The pilot was undertaken in partnership with Shelter Analytics, as implementer, and Energy Futures Group, serving in an advisory capacity. In 2013, the pilot delivered 136 audits and scheduled 45 resulting retrofit projects. Weatherization Following the Board's Docket 7770 Order approving the CEED Fund, GMP worked with the Office of Economic Opportunity (OEO) division of the Vermont Department for Children and Families to develop a weatherization services agreement. Under the agreement, OEO must ensure that the Vermont Weatherization Program (VWP) offices use the invested CEED funds for the benefit GMP customers in legacy CVPS territory. GMP delivered the required first year investment of $6 million to the VWP in November GMP delivered an additional $4 million investment in Business Thermal Investments CEED funding increased the number of businesses in legacy CVPS territory participating in Efficiency Vermont s Building Performance program. This program, the business-facility counterpart of Home Performance with ENERGY STAR, supplies thermal improvements to a class of commercial structures. A total of 17 CEED-funded projects were completed in 2013, acquiring over 900 MMBtu. In conjunction with expanded Building Performance participation, GMP implemented a pilot effort in partnership with Common Sense Energy to promote targeted thermal improvements in small- and medium-sized businesses. This activity explored how best to achieve thermal benefits in businesses that do not meet the current eligibility criteria of the Building Performance Program. The pilot targeted 20 inns, bed-and-breakfasts, and small grocery stores for audits and thermal improvements. Nine audits and three retrofits were completed in

20 3.2.3 Cold Climate Heat Pumps While the above CEED-funded efforts supporting thermal investments were targeted either to residential or commercial customers, CEED also funded a key program providing benefits to both residential and small business customers. The Cold-Climate Heat Pump (CCHP) program introduced customers and partners to this emerging, ultra-efficient heating technology, which provides space heating at about half the cost of oil, propane, or kerosene. Through the program, systems were installed in buildings that had been weatherized, or were scheduled to be weatherized through Efficiency Vermont s Home Performance with ENERGY STAR or Building Performance programs. The CCHP program supported two approaches to the application of heat pump technology: 1) Mini-split ductless heat pumps for targeted heating within a building, and 2) Whole-house heat pumps as a central space heating and water heating system. In this first year, 35 units were installed (33 in homes), with 10 of these including equipment installed to collect detailed temperature and operating data to support future understanding and analysis of the technology. Activities in 2013 included establishing program technology performance specifications, coordinating with installation contractors, and maximizing system installations within the available time frame. Focus was placed on outreach, marketing, and training, as well as on building partnerships between efficiency, renewable, and heating, ventilation, and air conditioning (HVAC) contractors. 4. Summary The GMP CEED Fund report 1,702 MWh in electric savings and 3,991 MMBtu in thermal savings in Business services participants realized overall energy savings with a net societal benefit to investment ratio of 1.8 to 1 and residential participants realized a ratio of 1.2 to 1. On average, for every dollar that GMP invested in energy efficiency services in 2013, those services generated approximately $1.25 in benefits. The table below summarizes the cumulative benefits and costs of all services to date across all sectors, providing a breakdown by type of efficiency (thermal versus electric) Cumulative Summary of Services All Services and Initiatives Subtotal Thermal Efficiency Services Subtotal Electric Efficiency Services Program-to-Date Benefits and Costs (2012$) Present Value of Societal Benefits $27,603,332 $24,982,021 $2,621,311 Present Value of Societal Costs $12,353,948 $11,355,464 $988,484 Societal Benefits (NSB) $15,249,385 $13,626,557 $1,622,828 Present Value of GMP Costs $12,199,569 $11,355,464 $844,105 (NSB/GMP Cost) Ratio

21 APPENDICES I CEED Services and Initiatives II. EverGreen Informational Packet 10

22 APPENDIX I 2013 CEED Services and Initiatives Annual Report 11

23 1.1 Services and Initiatives Summary Cumulative Summary of Services All Services and Initiatives Subtotal Thermal Efficiency Services Subtotal Electric Efficiency Services Business Residential Business Residential Program-to-Date Benefits and Costs Present Value of Societal Benefits $ 27,603,332 $ 24,982,021 $ 2,621,311 $ 514,269 $ 24,467,752 $ 2,621,311 $ - Present Value of Societal Costs (incl GMP) $ 12,353,948 $ 11,355,464 $ 998,484 $ 233,759 $ 11,121,705 $ 998,484 $ - Societal Benefits (NSB) $ 15,249,385 $ 13,626,557 $ 1,622,828 $ 280,510 $ 13,346,047 $ 1,622,828 $ - Present Value of GMP Costs $ 12,199,569 $ 11,355,464 $ 844,105 $ 233,759 $ 11,121,705 $ 844,105 $ - (NSB/GMP Cost) Ratio Monthly Summary of Services All Services and Initiatives Subtotal Thermal Efficiency Services Subtotal Electric Efficiency Services Thermal Efficiency 1 Business Residential Business Residential Present Value of Societal Benefits Results (2012 $) PV of Societal Benefits Year-to-Date $ 14,392,130 $ 11,770,818 $ 2,621,311 $512,178 $11,258,641 $2,621,311 $0 PV of Societal Benefits Cumulative Starting 6/15/2012 $ 27,603,332 $ 24,982,021 $ 2,621,311 $514,269 $24,467,752 $2,621,311 $0 MWh Savings Results MWh Year-to-Date 1, , ,642 - MWh Cumulative Starting 6/15/2012 1, , ,642 - MMBtu Savings Results MMBtu Year-to-Date 3,991 3, , MMBtu Cumulative Starting 6/15/2012 3,991 3, , Present Value of Electric Benefits Results (2012 $) Summer Coincident Peak kw Year-to-Date Summer Coincident Peak kw Cumulative Starting 6/15/ Present Value of Scoietal Benefits Results (2012 $) NSB Year-to-Date $ 8,043,274 $ 6,420,446 $ 1,622,828 $ 279,370 $ 6,141,077 $ 1,622,828 $ - NSB Annual Goal $ 10,373,586 $ 6,738,573 $ 3,635,013 $ 361,910 $ 6,376,663 $ 3,635,013 $ - NSB % of Annual Goal 78% 95% 45% 77% 96% 45% 0% NSB Cumulative Starting 6/15/2012 $ 15,249,385 $ 13,626,557 $ 1,622,828 $ 280,510 $ 13,346,047 $ 1,622,828 $ - Investments in Implementation & Administration Subtotal Thermal Subtotal Electric All Services and Efficiency Efficiency Initiatives Services Services Investments Year-to-Date $ 6,169,406 $ 5,350, ,034 Annual Budget Estimate $ 6,813,444 $ 5,615,444 1,198,000 Unspent Annual Budget Estimate $ 644,038 $ 265, ,966 Thermal Efficiency 1 Business Thermal Residential Thermal Business Electric Residential Electric $ $ 232,808 $ 5,117,564 $ 819,034 $ - $ $ 301,592 $ 5,313,852 $ 1,198,000 $ - $ $ 68,784 $ 196,288 $ 378,966 $ - % Annual Budget Estimate Unspent 9% 5% 32% 23% 4% 32% 0% Investments Cumulative Starting 6/15/2012 $ 12,178,274 $ 11,355,464 $ 822,810 $ 233,759 $ 11,121,705 $ 822,810 $ - * Present Values where applicable are expressed in 2012 dollars. Totals Totals Totals Thermal Efficiency 1 Electric Efficiency Electric Efficiency Electric Efficiency 1 Per Public Service Board order, Societal Benefits for Thermal Efficiency are deemed at 1.2 times GMP investments in thermal efficiency improvements completed by customers who do and do not

24 1.2 Services and Initiatives Summary Prior Year Current Year 2013 Cumulative starting 1/1/12 # participants with installations 0 1,976 1,976 Implementation Costs $1,500,000 $1,237,314 $2,737,314 Technical Assistance Costs $0 $1,107,028 $1,107,028 Incentive Costs Incentives to Participants 1 $4,500,000 $3,584,498 $8,084,498 Incentives to Trade Allies $0 $0 $0 Subtotal Incentive Costs $4,500,000 $3,584,498 $8,084,498 Other Non-Implementation Costs DPS Evaluation $0 $98,000 $98,000 Other Non-Implementation $8,868 $142,566 $151,434 Subtotal Non-Implementation Costs $8,868 $240,566 $249,434 Total CEED Costs $6,008,868 $6,169,406 $12,178,274 Total Participant Costs $0 $1,471,765 $1,471,765 Total Third Party Costs $0 $0 $0 Total Costs $6,008,868 $7,641,171 $13,650,040 Societal Benefits $7,206,111 $8,043,274 $15,249,385 Annualized MWh Savings - 1,702 1,702 Lifetime MWh Savings - 20,921 20,921 Annualized MMBtu Savings - 3,991 3,991 Lifetime MMBtu Savings - 71,900 71,900 Summer Coincident Peak kw Savings Weighted Lifetime Costs in this table include investments in Low Income Weatherization. These investments were assumed to be split 25% to Implementation and 75% to Incentives to Participants which are not included in the table 1.3.

25 1.3 Services & Initiatives - End Use Breakdown End Use # of Participants MWH Gross MWH Lifetime MWH Winter KW Summer KW Other Fuel MMBTU Water CCF Participant Incentives Paid Participant Costs Air Conditioning Eff $2,053 Cooking and Laundry $550 Design Assistance $24,962 Electronics $11 Hot Water Efficiency $317 Hot Water Fuel Switch $194 Industrial Process Eff , $23,586 Lighting , $94,567 Motors , $32,972 Other Efficiency $20,476 Other Indirect Activity $2,052 Refrigeration , $11,693 Space Heat Efficiency 1, , ,470 0 $369,755 Space Heat Fuel Switch $0 Ventilation $1,310 $14,590 $2,307 $11,639 $0 $12,401 $3,100 $73,993 $213,931 $53,650 -$7,138 $2,800 $65,174 $951,925 $53,250 $20,149 Totals 1,702 1,664 20, , $584,498 $1,471,770

26 1.4 Business Thermal Summary Prior Year Current Year 2013 Cumulative starting 1/1/12 # participants with installations Implementation Costs $0 $79,955 $79,955 Technical Assistance Costs $0 $13,833 $13,833 Incentive Costs Incentives to Participants $0 $42,974 $42,974 Incentives to Trade Allies $0 $0 $0 Subtotal Incentive Costs $0 $42,974 $42,974 Other Non-Implementation Costs DPS Evaluation $0 $49,000 $49,000 Other Non-Implementation $951 $47,047 $47,997 Subtotal Non-Implementation Costs $951 $96,047 $96,997 Total CEED Costs $951 $232,808 $233,759 Total Participant Costs $0 $115,498 $115,498 Total Third Party Costs $0 $0 $0 Total Costs $951 $348,306 $349,257 Societal Benefits $1,141 $279,370 $280,510 Annualized MWh Savings Lifetime MWh Savings Annualized MMBtu Savings Lifetime MMBtu Savings - 8,554 8,554 Summer Coincident Peak kw Savings Weighted Lifetime

27 1.5 Business Thermal - End Use Breakdown End Use # of Participants MWH Gross MWH Lifetime MWH Winter KW Summer KW Other Fuel MMBTU Water CCF Participant Incentives Paid Participant Costs Other Efficiency $0 Space Heat Efficiency $42,974 $0 $115,498 Totals $42,974 $115,498

28 1.6 Business Electric Summary Prior Year Current Year 2013 Cumulative starting 1/1/12 # participants with installations Implementation Costs $0 $320,622 $320,622 Technical Assistance Costs $0 $235,675 $235,675 Incentive Costs Incentives to Participants $0 $215,690 $215,690 Incentives to Trade Allies $0 $0 $0 Subtotal Incentive Costs $0 $215,690 $215,690 Other Non-Implementation Costs DPS Evaluation $0 $0 $0 Other Non-Implementation $3,776 $47,047 $50,823 Subtotal Non-Implementation Costs $3,776 $47,047 $50,823 Total CEED Costs $3,776 $819,034 $822,810 Total Participant Costs $0 $434,547 $434,547 Total Third Party Costs $0 $0 $0 Total Costs $3,776 $1,253,581 $1,257,357 Societal Benefits $0 $1,622,828 $1,622,828 Annualized MWh Savings - 1,642 1,642 Lifetime MWh Savings - 19,740 19,740 Annualized MMBtu Savings Lifetime MMBtu Savings - 5,894 5,894 Summer Coincident Peak kw Savings Weighted Lifetime

29 1.7 Business Electric - End Use Breakdown End Use # of Participants MWH Gross MWH Lifetime MWH Winter KW Summer KW Other Fuel MMBTU Water CCF Participant Incentives Paid Participant Costs Air Conditioning Eff $2,053 Cooking and Laundry $550 Design Assistance $24,962 Electronics $11 Hot Water Efficiency $317 Hot Water Fuel Switch $194 Industrial Process Eff , $23,586 Lighting , $94,567 Motors , $32,972 Other Efficiency $20,476 Other Indirect Activity $2,052 Refrigeration , $11,693 Space Heat Efficiency $947 Ventilation $1,310 $8,457 $1,904 $11,639 $0 $863 $1,332 $73,993 $213,931 $53,368 -$7,138 $0 $65,174 $3,039 $7,987 Totals 1,642 1,604 19, $215,690 $434,550

30 1.8 Residential Thermal Summary Prior Year Current Year 2013 Cumulative starting 1/1/12 # participants with installations 0 1,324 1,324 Implementation Costs $1,500,000 $836,737 $2,336,737 Technical Assistance Costs $0 $857,521 $857,521 Incentive Costs Incentives to Participants 1 $4,500,000 $3,325,833 $7,825,833 Incentives to Trade Allies $0 $0 $0 Subtotal Incentive Costs $4,500,000 $3,325,833 $7,825,833 Other Non-Implementation Costs DPS Evaluation $0 $49,000 $49,000 Other Non-Implementation $4,141 $48,472 $52,614 Subtotal Non-Implementation Costs $4,141 $97,472 $101,614 Total CEED Costs $6,004,141 $5,117,564 $11,020,092 Total Participant Costs $0 $921,721 $921,721 Total Third Party Costs $0 $0 $0 Total Costs $6,004,141 $6,039,285 $11,941,812 Societal Benefits $7,204,970 $6,141,077 $13,346,047 Annualized MWh Savings Lifetime MWh Savings Annualized MMBtu Savings - 3,168 3,168 Lifetime MMBtu Savings - 57,452 57,452 Summer Coincident Peak kw Savings Weighted Lifetime Costs in this table include investments in Low Income Weatherization. These investments were assumed to be split 25% to Implementation and 75% to Incentives to Participants which are not included in the table 1.9.

31 1.9 Residential Thermal - End Use Breakdown End Use # of Participants MWH Gross MWH Lifetime MWH Winter KW Summer KW Other Fuel MMBTU Water CCF Participant Incentives Paid Participant Costs Air Conditioning Eff $0 Cooking and Laundry $0 Hot Water Efficiency $0 Hot Water Fuel Switch $0 Motors $0 Other Efficiency $0 Other Indirect Activity $0 Space Heat Efficiency 1, ,037 0 $325,833 Space Heat Fuel Switch $0 Ventilation $0 $6,133 $402 $11,537 $1,768 $282 $0 $2,800 $833,388 $53,250 $12,162 Totals ,168 0 $325,833 $921,722