Topic:"Program Evaluation" in M07544

- i. Capture and store measure-level information obtained from the recommended research activities and TRM process - ii. Perform short-term program design or incentive-level cost effectiveness screening - iii. Integrate the review protocol...

AI summary The text outlines steps for capturing data from research activities and the TRM process, performing cost-effectiveness screening, integrating a review protocol, and conducting a financial simulation of current incentives to evaluate their levels.

4. ONGOING REPORTING ON IMPLEMENTATION PROGRESS - EfficiencyOne is committed to keeping the Board and stakeholders informed of ongoing progress on the implementation of CLEAResult's recommendations. To this end, EfficiencyOne proposes the...

AI summary EfficiencyOne proposes quarterly and annual reporting, along with external evaluation, to inform the Board and stakeholders on implementing CLEAResult's recommendations. Reporting begins with the 2016 Q3 Report and continues until implementation is complete.

plate and an Excel-based tool) that prescribes both frequency and methodology of updates. The scope of the project focused on financial incentives, though the other types of incentives were discussed. The jurisdictional research involved p...

AI summary The project focused on financial incentives for energy conservation, involving jurisdictional research through primary/secondary sources and stakeholder interviews. ENS's performance was found comparable to or better than other jurisdictions, with unit costs aligning favorably. Despite best practices, minimal formalized documentation on incentive design was identified, though principles were derived from CLEAResult's experience.

Review of Efficiency Nova Scotia's Historical Performance A review of ENS's historical program performance was undertaken to determine the success of the current programs in market. To obtain detailed information on select programs and the...

AI summary A review of Efficiency Nova Scotia's (ENS) historical program performance was conducted to assess current program success. Interviews with program managers, analysis of program manuals, and evaluation reports were used to examine operations, maturity, success factors, and potential modifications.

MARKET TRANSFORMATION The ACEEE defines market transformation as the "strategic process of intervening in a market to create lasting change in market behaviour by removing identified barriers or exploiting opportunities to accelerate the a...

AI summary The ACEEE defines market transformation as a strategic process to remove barriers and accelerate cost-effective energy efficiency adoption. It emphasizes the technology adoption curve, highlighting the need for incentives during 'The Chasm' and early majority phases. Program review and adjustments to baselines are critical during the late majority period to ensure continued market transformation success.

Cost Effectiveness Cost effectiveness is usually determined using a benefit-cost analysis which explicitly or implicitly compares the cost of energy efficiency to other electricity or natural gas supply resources and may include other cons...

AI summary Cost effectiveness is evaluated via benefit-cost analysis, comparing energy efficiency costs to supply resources and considering factors like environmental benefits. Common tests include Total Resource Cost (TRC) and Program Administrator Cost (PAC).

Budget Impact Program administrators are not only affected by cost effectiveness concerns when determining their return on investment. From CLEAResult's experience, in several jurisdictions, the program budget is usually the limiting facto...

AI summary Program administrators face budget constraints that often limit expenditures more than cost-effectiveness. Budget impact must be evaluated alongside cost-effectiveness, considering per-unit, per-participant, and total impacts. Incentives may be cost-effective but may not fit within program budgets, necessitating ROI criteria that set ceilings but often result in lower incentive values.

Supply Chain and Stakeholder Discussion In designing and delivering any best-in-class energy efficiency program, it is important to involve the supply chain and key stakeholders such as industry associations, other government agencies and...

AI summary The discussion emphasizes involving supply chain and stakeholders in energy efficiency programs for customer and technology research, cost insights, and incentive analysis. It highlights the need to address supply chain barriers, review incentive changes, and consider external market incentives like tax rebates and low-cost financing.

Program Evaluation Review and Historical Experience The final consideration in determining perceived value is reviewing previous evaluation reports and accounting for historical experience. Program evaluations typically include an analysis...

AI summary The text emphasizes reviewing past program evaluations and historical experience to assess program effectiveness, including barriers, customer insights, and quantitative metrics like participation and savings. Historical data informs adjustments to incentives, such as reducing LED lamp incentives if uptake exceeds forecasts.

THEORETICAL LIMITS FOR INCENTIVES Based on the return on investment criteria as well as perceived value considerations, there are three theoretical limits for incentives. - 1. Percentage of Customer Cost - 2. PAC Benefits - 3. Budget Incen...

AI summary The document outlines three theoretical limits for incentives: percentage of customer cost, PAC benefits, and budget. These limits serve as reference points during program design, though incentives may exceed them. The limits are independent and contribute to determining maximum eligible incentives for measures.

SUMMARY OF INFLUENCES ON INCENTIVE RATES The different components involved in incentive setting are listed below in Table 2. The table lists how a change in each component can influence measure level incentives. This highlights the multipl...

AI summary The text outlines factors influencing measure-level incentives, noting that changes in components can create upward or downward pressure on incentives. Program administrators must consider multiple factors, with feedback from interviewees emphasizing that incentive setting is 'as much art as science.'

FINDINGS AND IDENTIFIED BEST PRACTICES Our jurisdictional research has shown that the majority of jurisdictions employ similar methodologies and approaches to setting incentives. All of the jurisdictions have broad program design, TRM and/...

AI summary Research indicates most jurisdictions use similar methodologies for setting incentives, though no consolidated process exists. TRM and program design are common, but nuances vary. EfficiencyOne performs high-level steps, so recommendations focus on detailed aspects.

Incentive Setting Best Practices Methodology Research and Engagement Customer Technology Supply Chain Consolidation of Findings Incentive Thresholds Other Considerations Data Analysis Participation Forecasts Cost-Effectiveness Testing Mode...

AI summary The document outlines best practices for incentive setting in energy efficiency, focusing on data analysis, cost-effectiveness testing, and implementation. Key organizations involved include the Nova Scotia Utility and Review Board (UARB) and the DSM Advisory Group (DSMAG), with methodologies informed by ACEEE and CEEA.

Table 3: Research Engagement Phase Research and Engagement Phase Financial Impacts & Risks Using preliminary incentive rates identified in the previous phase and participation forecast, the impact on the aggregate administrator budget and...

AI summary The document discusses the financial impacts and risks associated with incentive rates and program budgets, emphasizing the need to balance market barriers and participation forecasts. It outlines activities for program administrators to identify these impacts.

se of this, measures and projects that pass the TRC and PAC are only able to claim the benefit of avoided energy costs until 2020. After 2020, they can claim both avoided energy and capacity benefits. This can be a challenge since momentum...

AI summary The text discusses the transition of energy efficiency programs from claiming only avoided energy costs until 2020 to including capacity benefits afterward. Challenges in adjusting programs for annual variations in avoided costs are highlighted, with Oregon cited as an example of aligning cost effectiveness with policy goals. CLEAResult notes ENS's investigation into local avoided costs and discount/premium zones for electricity conservation.

OTHER CONSIDERATIONS Through the most recent program evaluation process, ENS has identified that some educational initiatives are incurring savings attribution issues, and have received tentative disallowance. This specifically was the cas...

AI summary ENS identified savings attribution issues in educational initiatives like the Home Energy Reports (HER) program, risking disallowance. This complicates shifting funding from financial to educational incentives. ENS uses average wattage for energy savings estimates instead of dual baselines, which may hinder lifetime savings tracking.

TECHNOLOGY RESEARCH Technology research can provide both the basis for the value of the incentive investment through understanding the energy savings and it can provide insight into how often the incentive should be reviewed. It is very im...

AI summary The text outlines parameters for evaluating energy-saving technologies and incentives, emphasizing the use of TRM and regular updates based on market penetration and other factors, with a focus on adjusting incentives when penetration exceeds 50%.

SUPPLY CHAIN AND SERVICE PROVIDER RESEARCH The supply chain and service providers should be engaged to support the customer and technology research efforts. It can be difficult to get firsthand information about customer motivations, price...

AI summary Engaging supply chain and service providers is critical for customer and technology research, as they provide insights into customer motivations, price elasticity, and technology parameters. They also offer reference data (e.g., sales, installations) to inform incentive setting and program design. Regular interactions with these stakeholders are emphasized for effective program management and stakeholder collaboration.

With respect to program budgets, there may be an acceptable incentive level threshold that is based on total expenditure or unit costs. For certain programs, this threshold is often set at a maximum incentive for a project, or on some kind...

AI summary The text discusses the importance of setting acceptable incentive level thresholds for program budgets, based on total expenditure or unit costs, and highlights the need for recommendations on absolute limits or suggested boundaries based on forecasted program expenditure after accounting for administration costs.

JURISDICTIONAL BENCHMARKING Jurisdictional benchmarking is not essential for existing incentives. The current program performance, historical experience and recommended research should provide a comprehensive analysis for incentive setting...

AI summary Jurisdictional benchmarking is not essential for existing incentives as current program performance and historical data suffice. For new incentives, it is recommended due to the lack of existing data. Periodic checks with other jurisdictions are advised as best practice.

sector, the updates should occur annually. o The updates should be reviewed by a committee, which consists of technical experts from EfficiencyOne's staff, and one external member. All members on the committee should have a technical backg...

AI summary The text discusses the need for annual updates to a program, to be reviewed by a committee of technical experts. The committee should include external members with experience in quantifying energy savings, penetrations, and costs. The review process should align with the program evaluation process to enhance collaboration and leverage research.

Understand Technology Savings, Price and Market Penetration For Instant Savings, EfficiencyOne gains an understanding of technology savings, price and penetration through the following activities: 1. Energy Efficiency Standards (Regulation...

AI summary The text discusses EfficiencyOne's approach to understanding technology savings, price, and market penetration for the Instant Savings Program. It highlights the use of energy efficiency standards, program evaluation, industry data, and specific studies. In 2014, EfficiencyOne removed CFLs from the program in response to new codes and standards. Program evaluation is used annually to review and update energy savings assumptions.

Program Evaluation Through the annual program evaluation process, participant surveys are conducted to determine free ridership and spillover savings . For the Custom Program, EfficiencyOne gains an understanding of technology savings, pri...

AI summary The document discusses the evaluation of a Custom Program, emphasizing the collection of energy savings and cost information through feasibility studies and project applications. It highlights the importance of tracking project type data, engaging the supply chain, and setting incentive screening thresholds based on energy savings persistence and avoided costs.

updated, consistent with the recommendations in the General Principles section. Understand Supply Chain and Service Provider Considerations For the Custom Program, EfficiencyOne gains an understanding of the supply chain and service provid...

AI summary The document discusses how EfficiencyOne gains understanding of supply chain and service provider considerations through program management and evaluation. It also outlines how financial impacts are assessed through project screening, program management, and evaluation. CLEAResult recommends continuing current activities and implementing General Principles to support the program.

Understand Customer Motivation and Barriers for Participation For the Business Energy Rebates Program, EfficiencyOne gains an understanding of customer motivations and barriers through: 1. Market Research; 2. Ongoing Program Management; 3....

AI summary EfficiencyOne outlines methods to understand customer motivation and barriers for participation in the Business Energy Rebates Program, including market research, ongoing program management, benchmarking, and program evaluation. Financial support was identified as a key factor influencing business participation in energy efficiency initiatives.

Other Considerations for Business Energy Rebates Program From reviewing program operations, the Business Energy Rebates program tracks retail pricing through the application process. This allows program managers to understand if incentive...

AI summary The Business Energy Rebates program uses retail pricing tracking and cost-based incentive thresholds to ensure cost-effectiveness. Program managers emphasize ongoing monitoring of budgets and prices to maintain effectiveness. Challenges include difficulty aligning Instant Rebates with local avoided costs due to limited customer data availability.

through the following activities: 1. Market Research; 2. Ongoing Program Management; 3. Program Benchmarking; and 4. Program Evaluation. Market Research EfficiencyOne conducted research with the participants in the Home Energy Assessment p...

AI summary EfficiencyOne conducted market research, program management, benchmarking, and evaluation for the Home Energy Assessment program. Research found that initial audits provided benefits and helped lower unit costs. A 25% incentive was found more effective than interest-free financing for encouraging major efficiency upgrades. Ongoing management involves interacting with contractors and analyzing customer motivations and barriers.

Other Considerations for the Home Energy Assessment Program The Home Energy Assessment program recently introduced an updated incentive structure, which featured an increased incentive for the initial audit, and premiums associated with bu...

AI summary The Home Energy Assessment Program updated its incentive structure with higher initial audit incentives and bundled incentives to boost participation and savings. CLEAResult data suggests increased savings and lower unit costs, though effects of bundling are mixed with concurrent audit changes. Bundling mirrors retail strategies, potentially offsetting higher unit costs via increased savings. Personal energy planning services also enhanced savings, with potential for localized incentive zones tied to avoided costs.

ONTARIO ENERGY EFFICIENCY PROGRAM INCENTIVE AND COST EFFECTIVENESS POLICY Conservation programs being delivered provincially though the IESO (formerly the OPA) started in 2006, through the delivery of third tranche programs by specific LDC...

AI summary Ontario's energy efficiency programs began in 2006 via the IESO (formerly OPA) through LDCs. By 2007, province-wide initiatives like 'Every Kilowatt Counts' (instant rebates), 'The Great Refrigerator Round Up' (appliance retirement), and business incentives via ERIP, BOMA, and MEER were introduced.

ONTARIO - ENERGY EFFICIENCY PROGRAMMING

AI summary The document outlines Ontario's energy efficiency programming initiatives, involving key stakeholders and regulatory bodies. It references programs, methodologies, and organizations involved in demand-side management and energy efficiency standards.

ONTARIO CORE PROGRAM OFFERINGS (RESIDENTIAL AND BUSINESS) Currently, the conservation programs in Ontario cover the residential, low income, small business, commercial and industrial, and large industrial sectors. The programs cover financ...

AI summary Ontario's conservation programs target residential, low-income, small business, commercial, and industrial sectors, offering incentives, coaching, and assessments. Rigorous five-year evaluations have raised energy efficiency baselines, with T8 lighting now standard. Ontario recently introduced a pay-for-performance framework for LDC-funded conservation programs, a North American first.

INCENTIVE RATE SETTING Union Gas is responsible for setting incentive levels for their programs. Periodic reviews of the appropriateness of incentive levels is conducted and adjustments to financial incentives are made. Below is an overvie...

AI summary Union Gas is tasked with establishing and periodically reviewing incentive levels for its programs. Adjustments to financial incentives are made based on evaluations of new measures or significant changes to existing ones, ensuring appropriateness through structured processes.

1. Market Research The process starts by performing both primary and secondary market research in order to determine the measure performance metrics and costs. The objective is to determine awareness, barriers and purchase decisions. Marke...

AI summary The process involves primary and secondary market research to assess measure performance metrics, costs, awareness, barriers, and purchase decisions. Factors like market penetration and technology age (e.g., new vs. widespread solutions) are evaluated.

INCENTIVE LEVEL-SETTING METHODOLOGY The following is a rough sketch of what we have seen in other territories. BC Hydro is responsible for setting incentive levels for their programs and introducing new measures and programs. This is perfo...

AI summary BC Hydro sets incentive levels through business cases for programs, reviewed every 2-3 years. The process involves evaluating new measures or significant changes to existing ones.

8. Technical Reference Manuals The engineering team, M&V team, program managers, evaluation group and other in-house BC Hydro resources approve/deny measures for TRMs which are used for savings and assumptions. They enable BC Hydro to incl...

AI summary BC Hydro's engineering, M&V, and program management teams approve/deny TRM measures for savings and assumptions, enabling program inclusion. All incentives undergo governance review.

COST EFFECTIVENESS REQUIREMENTS Total Resource Cost (TRC) is used by BC Hydro and the BCUC at the program level to evaluate performance. Programs must have a TRC of 1.0 or greater. There is an expectation of low-income programs. Internally...

AI summary BC Hydro and BCUC use Total Resource Cost (TRC) to evaluate programs, requiring a TRC of 1.0 or higher. Low-income programs are expected, and internal cost effectiveness tests like utility cost and ratepayer impact measure are also applied.

Savings PG&E's programs have proven very successful at reducing energy consumption and incentivizing energy efficient behaviours and investment decisions. In the 2013-2015 period, PG&E managed to achieve between 110-143 percent of annual g...

AI summary PG&E's energy efficiency programs exceeded their 2013-2015 savings goals, achieving 110-143% of annual gross energy savings and 130-164% of demand goals. The success highlights effective incentives for energy-efficient behaviors and investments.

History In 1999, Oregon lawmakers and citizens envisioned a future with Oregon homes and businesses powered by clean, affordable energy. They established stable, consistent funding to help Oregonians invest in energy efficiency and renewab...

AI summary In 1999, Oregon lawmakers and citizens established the Energy Trust of Oregon to invest in energy efficiency and renewable resources. Operated since 2002 under the Oregon Public Utilities Commission, the organization funds programs benefiting customers of four utilities across two states, focusing on cost-effective solutions and low administrative costs.

Energy Trust of Oregon Funding Through state legislation, tariffs and other requirements, Energy Trust is funded by customers of Portland General Electric, Pacific Power, NW Natural and Cascade Natural Gas. Customers of all four utilities...

AI summary Energy Trust of Oregon is funded by customer charges from Portland General Electric, Pacific Power, NW Natural, and Cascade Natural Gas. Established by a 1999 law, it collects a 3% public purpose charge for energy-efficiency and renewable programs. SB 838 (2013) expanded funding, leading to increased savings and a 2013 budget of $117 million. Programs focus on schools, low-income housing, and industrial demand-side management.

COST EFFECTIVENESS – NATURAL GAS The current market condition for natural gas prices (i.e., low price environment) has caused the Energy Trust and PUCs to reexamine gas measures over the last few years. The Energy Trust has been able to ca...

AI summary The Energy Trust and PUCs reevaluate natural gas measures due to low prices, referencing Order 94-950. Guidelines require a TRC ≥1.0 for gas efficiency portfolios, with exceptions for TRC 0.5-0.9. Measures below TRC 0.5 are excluded unless justified. This approach maintains program infrastructure and market momentum until gas prices rise.

MEASURE DEVELOPMENT & INCENTIVE SETTING PROCESS The Energy Trust has created a standardized, four step process (see Appendix A for flow chart) by which to introduce new measures to their product portfolio and set their maximum eligible inc...

AI summary The Energy Trust outlines a four-step standardized process for introducing new measures and setting maximum eligible incentives. Program delivery agents determine incentives up to these levels while balancing delivery and administration expenses to meet program goals, as detailed in Appendix A.

Idea Generation & Vetting - •Identify new measure from multiple souces - •Determine if measure addresses the appropriate considerations\ \ - •Determine if measure is to be pursued/updated or "parked" for the future

AI summary The process involves identifying new measures from multiple sources, assessing their alignment with relevant considerations, and deciding whether to pursue, update, or defer them for future action.

Preliminary Measure Development - •Collection and analysis of preliminary measure information - •Internal Program Lead creates plan to develop measure - •Identify if any other program may use measure and identify potential crossprogram iss...

AI summary The Preliminary Measure Development process involves collecting and analyzing measure information, creating a development plan by the Internal Program Lead, identifying cross-program issues, conducting program criteria and engineering checks, and advancing suitable measures to detailed development.

Considerations for vetting ideas, measures and measure updates Below are the considerations taken by the Energy Trust and its program delivery agents when introducing a new measure into its program portfolio or updating a measure's metrics...

AI summary The Energy Trust and its program delivery agents evaluate new measures or updates based on factors including savings potential, budget impact, alignment with long-term strategy, stakeholder interest, risk analysis, market availability, timing, and prior experience. These considerations guide decisions in regulatory proceedings.

KEY PLAYERS

AI summary The document outlines key players in a Nova Scotia regulatory proceeding, including organizations, programs, and legislation related to energy efficiency, demand-side management, and utility regulation. Entities listed include regulatory bodies, industry groups, and energy programs.

Cost Effectiveness Requirements Cost effectiveness is evaluated at the program level by TRC. Fast track programs that were implemented early in the cycle had to score well above a TRC of 1.0. This was done to ensure that significant energy...

AI summary Cost effectiveness is evaluated using TRC at the program level. Fast track programs required a TRC above 1.0 to ensure significant energy savings, accounting for margins of error.

New York –Independent System Operator The NY-ISO operates the competitive wholesale markets that mange the flow of electricity across the state of New York. In addition to operating the markets, the NY-ISO prepares analyses, evaluations an...

AI summary The NY-ISO manages New York's competitive wholesale electricity markets and provides analyses, evaluations, and forecasts for system planning. This includes assessing reliability thresholds, identifying resource needs, evaluating projects, and supplying objective market planning data to ensure grid reliability and efficient resource allocation.

Cost Effectiveness Testing Under the EEPS, NYSEDRA was required to conduct cost effectiveness testing at the project level. The TRC is used as the cost effectiveness test. Prior to the implementation of the EEPS, the TRC was applied at the...

AI summary Under the Energy Efficiency Portfolio Standard (EEPS), NYSERDA must conduct cost effectiveness testing using Total Resource Cost (TRC) at the project level. Previously, under the Clean Energy Fund (CEF), TRC was applied at the program level, and this will continue under CEF.

INCENTIVE LEVEL SETTING METHODOLOGY Efficiency Vermont developed a new product development process about a year and a half ago. It involves a customer mapping and an engagement process that covers seven stages: - 1. Idea Solicitation - 2....

AI summary Efficiency Vermont's new product development process includes nine stages for designing incentive programs, with adjustments for expedited changes. Cost effectiveness uses a societal test, while incentives are primarily driven by customer behavior. Energy savings assumptions are reviewed annually or biennially, and data tracking is required monthly.

PORTFOLIO MATURITY AND HISTORICAL PERFORMANCE DSM programs were administered by electric utilities before 2002. Efficiency Maine was then established in 2002 to promote electricity efficiency, reduce energy costs and improve the environmen...

AI summary DSM programs transitioned from electric utilities to Efficiency Maine in 2002, which operated under MPUC until becoming an independent trust in 2009. From 2004-2010, Efficiency Maine achieved 4.65 billion MWh lifetime savings, a 2.92 benefit-to-cost ratio, and 3.6 cents/kWh cost.

TRC and PACT Both TRC and PACT tests are presented in Efficiency Maine's annual reports. However, only TRC is used to evaluate performance. PACT is used for program planning/stakeholder relationships. TRC and PACT by Efficiency Maine is ba...

AI summary Both TRC and PACT are used by Efficiency Maine, with TRC for performance evaluation requiring a net savings ratio over 1.0, while PACT is used for planning and stakeholder relations. The TRC methodology is based on a 2008 National Action Plan resource.

ion and innovation, achieving the full potential of the Green Communities Act, and generating significant and sustainable benefits for all Massachusetts' citizens. The EEAC's responsibilities include: - Collaborating with the utilities on...

AI summary The Energy Efficiency Advisory Council (EEAC) oversees energy efficiency plans, reporting, and evaluations in Massachusetts. It collaborates with utilities like National Grid, Eversource Energy, and Cape Light Compact, which operate under Mass Save. EEAC manages the EM&V process and publishes progress reports. Utilities have individual savings targets and budgets.

Inputs - Avoided Supply Costs (energy and capacity); - Local Avoided Supply Costs (energy and capacity); - Fixed Program Administration Costs; - Year of Implementation; - Measure Participation; - Variable Costs; - Measure Energy Savings (F...

AI summary The document outlines key inputs for analysis in a Nova Scotia regulatory proceeding, including avoided supply costs (energy and capacity), program administration costs, measure participation, energy savings, demand reduction, and financial factors like discount and inflation rates. These inputs inform evaluations of energy efficiency programs and their economic impacts.

1.1 Background During the 2016-2018 DSM Resource Plan regulatory process, Intervenor discussion emerged on the appropriateness of EfficiencyOne's incentive levels for Efficiency Nova Scotia electricity efficiency programs. As a consequence...

AI summary The 2016-2018 DSM Resource Plan regulatory process involved EfficiencyOne addressing stakeholder concerns about incentive levels for Nova Scotia's electricity efficiency programs. The UARB directed EfficiencyOne to develop a more rigorous incentive methodology by June 2016. CLEAResult was selected to conduct a jurisdictional review and analysis of Efficiency Nova Scotia programs, aligning with the Board's order and EfficiencyOne's Scope of Work.

- i. Capture and store measure-level information obtained from the recommended research activities and TRM process - ii. Perform short-term program design or incentive-level cost effectiveness screening - iii. Integrate the review protocol...

AI summary The text outlines steps for capturing data from research activities and integrating a review protocol into an Excel-based tool, with a focus on evaluating the financial effectiveness of current incentive levels in programs.

plate and an Excel-based tool) that prescribes both frequency and methodology of updates. The scope of the project focused on financial incentives, though the other types of incentives were discussed. The jurisdictional research involved p...

AI summary The project focused on financial incentives for demand-side management (DSM), with jurisdictional research revealing ENS's performance aligns with or exceeds other regions. Despite best practices, minimal formalized documentation on incentive design was found. CLEAResult's experience identified common principles across jurisdictions.

Jurisdictional Scans CLEAResult undertook jurisdictional scans of various provincial and state utilities and energy efficiency agencies to: - 1) identify the incentive level setting methodologies and best practices in other jurisdictions;...

AI summary CLEAResult conducted jurisdictional scans to identify incentive-setting methodologies and best practices for energy efficiency programs. Jurisdictions were selected based on geographical similarity, market maturity, and methodology applicability. Research combined secondary data analysis with primary insights to benchmark ENS's program incentives and performance against comparative metrics.

Review of Efficiency Nova Scotia's Historical Performance A review of ENS's historical program performance was undertaken to determine the success of the current programs in market. To obtain detailed information on select programs and the...

AI summary A review of Efficiency Nova Scotia's (ENS) historical program performance was conducted to assess current program success. Methods included interviews with program managers, analysis of program manuals, and evaluation reports to understand operations, maturity, success factors, and potential modifications.

Program Financial Simulation To test the recommendations, a program financial simulation was conducted for both the Instant Savings and Custom programs. The current incentives were evaluated against multiple criteria, with a recommendation...

AI summary A program financial simulation was conducted for Instant Savings and Custom programs to evaluate current incentives against multiple criteria, resulting in recommendations regarding their appropriateness.

Customer Research A critical component of determining participant perceived value is actually asking potential customers what they would pay for a product or service, and what their price points are for difficult technology options. Additi...

AI summary Customer research is critical for understanding perceived value and setting effective incentives. Barriers like price, light quality, and environmental concerns (e.g., CFLs) hinder adoption despite financial incentives. The principal-agent problem in rental units complicates incentive delivery due to conflicting motivations between tenants and landlords.

Supply Chain and Stakeholder Discussion In designing and delivering any best-in-class energy efficiency program, it is important to involve the supply chain and key stakeholders such as industry associations, other government agencies and...

AI summary The document emphasizes the importance of involving supply chain and stakeholders in energy efficiency programs to address market barriers, refine incentive structures, and ensure effective program delivery. Examples include adjusting incentives for commercial refrigeration programs and considering distributor barriers in midstream lighting initiatives. It also highlights the need to identify existing market incentives like tax rebates and financing options.

Program Evaluation Review and Historical Experience The final consideration in determining participant perceived value is reviewing previous evaluation reports and accounting for historical experience. Program evaluations typically include...

AI summary The text emphasizes using historical program evaluations to assess participant value, identify barriers, and adjust incentives based on past performance. For example, high participation rates for LED lamps may necessitate lower incentive rates to align with budget forecasts.

Application of Thresholds Incentives can exceed all three of these thresholds (and often do), but they provide a reference point that can be used during the design process. The thresholds are independent of one another. They can all contri...

AI summary The text explains that incentives in programs can exceed three independent thresholds, which serve as reference points during design. These thresholds help determine maximum eligible incentives for measures. Figure 5 illustrates theoretical limits for incentives, where any limit may be the lowest or highest value for a specific measure.

The Role of Financing If upfront costs are an issue, but not monthly or annual cash flows, the provision of low-interest or zero-interest financing may be valued by customers, either as a stand-alone incentive, or in combination with an up...

AI summary The text discusses financing options for customers facing upfront costs in energy efficiency projects. Low-interest or zero-interest financing is proposed as a solution when customers lack capital but can manage ongoing cash flows. CLEAResult notes customers typically prefer upfront incentives over financing if mutually exclusive.

SUMMARY OF INFLUENCES ON INCENTIVE RATES The different components involved in incentive setting are listed below in Table 6. The table lists how a change in each component can influence measure level incentives. This highlights the multipl...

AI summary The text outlines factors influencing incentive rates, noting that changes in components can create upward or downward pressure. Program administrators must balance multiple considerations, with interviewees emphasizing the complexity of setting incentives as both art and science.

Research and Engagement Phase Financial Impacts & Risks Using preliminary incentive rates identified in the previous phase and participation forecast, the impact on the aggregate administrator budget and the program budget can be determine...

AI summary The text discusses the financial impacts and risks associated with incentive rates in energy programs, emphasizing the need to balance administration and incentive funding to overcome market barriers. The Energy Trust of Oregon is highlighted as an example of an organization that considers these impacts during program development.

se of this, measures and projects that pass the TRC and PAC are only able to claim the benefit of avoided energy costs until 2020. After 2020, they can claim both avoided energy and capacity benefits. This can be a challenge since momentum...

AI summary Measures passing TRC and PAC can claim avoided energy costs until 2020, with capacity benefits added afterward. Adjusting programs for annual cost variations is challenging, though Oregon aligns policy with efficiency goals. ENS investigates local avoided costs and discount/premium zones for incentives.

OTHER CONSIDERATIONS Through the most recent program evaluation process, ENS has identified that some educational initiatives are incurring savings attribution issues, and have received tentative disallowance. This specifically was the cas...

AI summary Efficiency Nova Scotia (ENS) identified savings attribution issues in the Home Energy Reports (HER) program, leading to tentative disallowance and potential challenges in shifting funding from financial to educational incentives. ENS uses an average wattage approach for energy savings estimates, which may not effectively track lifetime savings, necessitating a revised methodology for program management. This highlights the need for improved approaches to ensure accurate long-term energy savings assessments.

Current Programs Mass Market programs (programs that do not target individual customers specifically) cover all types of program scenarios. For example, a retail program can cover all four of these scenarios (New Purchase/Installation, Rep...

AI summary Mass market programs in Nova Scotia cover all customer scenarios without targeting individuals, including New Purchase/Installation, Replacement on Failure, Early Replacement, and Replacement after Assumed Failure. CLEAResult and EfficiencyOne are highlighted in Table 15 as entities outlining predominant program design scenarios.

f Marginal Cheapness/Inexpensiveness (PMI) establishes the lower boundary. As the technology and consumer motivations for purchase evolve, the cumulative distribution curves will change, accordingly. The Van Westendorp Price Sensitivity Me...

AI summary The text discusses the Van Westendorp Price Sensitivity Meter as one of several methods to assess consumer price sensitivity. CLEAResult advises conducting price sensitivity research where appropriate, particularly for measures involving substantial incentive spending. The methodology's relevance evolves with technological and consumer changes.

TECHNOLOGY RESEARCH Technology research can provide both the basis for the value of the incentive investment through understanding the energy savings and it can provide insight into how often the incentive should be reviewed. It is very im...

AI summary The document outlines parameters for evaluating energy efficiency incentives, including technology penetration, costs, and energy savings. It emphasizes the importance of regular TRM updates and program evaluations to adjust incentives based on market conditions and cost-effectiveness, particularly when efficient technology penetration exceeds 50%.

SUPPLY CHAIN AND SERVICE PROVIDER RESEARCH The supply chain and service providers should be engaged to support the customer and technology research efforts. It may be difficult to directly contact customers and technology manufacturers to...

AI summary Engaging supply chain and service providers is critical for customer and technology research, providing access to contacts, customer insights, reference data for incentive analysis, and identifying barriers to program implementation. Regular interactions with these stakeholders are essential for effective incentive setting and program design.

Understand Technology Savings, Price and Market Penetration EfficiencyOne currently understands technology savings, price and market penetration through three different avenues: 1. Annual review through program evaluation process; 2. Speci...

AI summary The document discusses EfficiencyOne's current methods for understanding technology savings, price, and market penetration, and recommends the introduction of a formal measures assumption validation process and summary manual, similar to the TRM, to ensure the accuracy and periodic review of cost/price information.

Understand Technology Savings, Price and Market Penetration For Instant Savings, EfficiencyOne gains an understanding of technology savings, price and penetration through the following activities: 1. Energy Efficiency Standards (Regulation...

AI summary EfficiencyOne uses energy efficiency standards, program evaluation, industry data, and specific studies to understand technology savings, price, and market penetration for the Instant Savings Program. In 2014, CFLs were removed from the program in response to upcoming codes and standards. Recommendations include continuing current activities and implementing changes to support the program.

For the Custom Program, EfficiencyOne gains an understanding of customer motivations and barriers through: 1. Market Research; 2. Ongoing Program Management; 3. Program Benchmarking; and 4. Program Evaluation. Market Research In 2014, Effi...

AI summary EfficiencyOne conducted market research indicating that financial incentives alone were insufficient to drive participation in energy efficiency programs. Surveys revealed that businesses valued educational incentives, such as energy modeling and commissioning expertise, more than monetary incentives. This insight led to a shift in strategy, emphasizing education alongside financial support through other programs like Business Energy Rebates.

Program Evaluation Through the annual program evaluation process, participant surveys are conducted to determine free ridership and spillover savings . For the Custom Program, EfficiencyOne gains an understanding of technology savings, pri...

AI summary The document discusses the evaluation of a custom energy efficiency program, focusing on methods for capturing technology savings, market penetration, and cost information. It emphasizes the use of feasibility studies, project applications, and engagement with the supply chain to support program management and incentive setting.

Principles section. Understand Supply Chain and Service Provider Considerations For the Custom Program, EfficiencyOne gains an understanding of the supply chain and service provider considerations through: 1. Ongoing Program Management and...

AI summary The document discusses how EfficiencyOne understands supply chain and service provider considerations through program management and evaluation, and how it assesses financial impacts via project screening, program management, and evaluation. CLEAResult recommends continuing current activities and implementing general principles to support the program.

Distributors can provide insight on the contractor and customer program experience. EfficiencyOne also has dedicated Application Coordinators for application support and approval in the program. They work with both the distributors in the...

AI summary EfficiencyOne works with distributors and customers to provide insight into program experiences and manage applications. Program benchmarking and evaluation are conducted to understand customer motivations and barriers, with recommendations to continue market research and evaluation activities for the commercial and industrial sectors.

Other Considerations for Business Energy Rebates Program From reviewing program operations, the Business Energy Rebates program tracks retail pricing through the application process. This allows program managers to understand if incentive...

AI summary The Business Energy Rebates program monitors retail pricing and uses cost to the customer as an incentive screening threshold. High PAC is forecasted with continued monitoring ensuring effective incentive levels. However, the Instant Rebates stream lacks customer data, complicating alignment with local avoided costs.

Understand Customer Motivation and Barriers for Participation For the Home Energy Assessment Program, EfficiencyOne gains an understanding of customer motivations and barriers through the following activities: 1. Market Research; 2. Ongoin...

AI summary EfficiencyOne outlines activities to understand customer motivations and barriers for participation in the Home Energy Assessment Program, including market research, program management, benchmarking, and evaluation.

Other Considerations for the Home Energy Assessment Program The Home Energy Assessment program recently introduced an updated incentive structure, which featured an increased incentive for the initial audit, and premiums associated with bu...

AI summary The Home Energy Assessment Program updated its incentive structure, increasing initial audit incentives and introducing bundling premiums to boost participation and savings. CLEAResult data suggests bundling may improve savings and lower delivery costs, though effects are hard to isolate due to concurrent changes. Bundling is framed as a cost-effective strategy for customer acquisition, and personal energy planning services are credited with enhancing project savings. The text also notes potential for incentive zones aligned with local avoided costs.

ONTARIO ENERGY EFFICIENCY PROGRAM INCENTIVE AND COST EFFECTIVENESS POLICY Conservation programs being delivered provincially though the IESO (formerly the OPA) started in 2006, through the delivery of third tranche programs by specific LDC...

AI summary Ontario's energy efficiency programs began in 2006 through LDCs and expanded province-wide from 2007 with initiatives like 'Every Kilowatt Counts' and 'The Great Refrigerator Round Up.' These programs, delivered via the IESO (formerly OPA), included instant rebates, appliance retirement, and business incentives through partners such as ERIP, BOMA, and MEER.

ONTARIO CORE PROGRAM OFFERINGS (RESIDENTIAL AND BUSINESS) Currently, the conservation programs in Ontario cover the residential, low income, small business, commercial and industrial, and large industrial sectors. The programs cover financ...

AI summary Ontario's conservation programs target residential, low-income, small business, commercial, and industrial sectors, offering incentives, coaching, and training. Rigorous evaluations over five years have raised energy efficiency baselines, with T8 lighting now standard. A new pay-for-performance framework for LDC funding marks a North American first.

MARKET STRUCTURE OVERVIEW DSM is a core part of the conservation first policy in Ontario as per the 2013 Long-Term Energy Plan. In 2014, the Minister of Energy issued a directive to the Ontario Energy Board (OEB) for the development of a n...

AI summary The document outlines Ontario's Demand Side Management (DSM) framework, mandated by the 2013 Long-Term Energy Plan and a 2014 Ministerial directive. The Ontario Energy Board (OEB) developed this framework to align natural gas DSM with electricity conservation efforts, establish cost-effective principles, and ensure program evaluation. Utilities like Union Gas and Enbridge must submit DSM plans for OEB approval, with mid-term reviews and evaluations starting in 2016.

Technical Reference Manual The EC reviews and proposes updates to the OEB with regards to data within the TRM. This occurs yearly. This review and update includes input assumptions to reflect the findings of the annual DSM evaluation and a...

AI summary The Evaluation Contractor (EC) annually reviews and updates the Technical Reference Manual (TRM) for the Ontario Energy Board (OEB), incorporating findings from annual Demand Side Management (DSM) evaluations, audits, and new technologies to refine assumptions and improve accuracy.

INCENTIVE RATE SETTING Union Gas is responsible for setting incentive levels for their programs. Periodic reviews of the appropriateness of incentive levels is conducted and adjustments to financial incentives are made. Below is an overvie...

AI summary Union Gas is responsible for setting and periodically reviewing incentive levels for their programs, adjusting financial incentives as needed. The process involves evaluating new measures or significant changes to existing ones to ensure appropriateness.

1. Market Research The process starts by performing both primary and secondary market research in order to determine the measure performance metrics and costs. The objective is to determine awareness, barriers and purchase decisions. Marke...

AI summary The process involves primary and secondary market research to determine performance metrics, costs, awareness, barriers, and purchase decisions. Factors like market penetration and technology age (new vs. widespread solutions) are also evaluated.

INCENTIVE LEVEL-SETTING METHODOLOGY The following is a rough sketch of what we have seen in other territories. BC Hydro is responsible for setting incentive levels for their programs and introducing new measures and programs. This is perfo...

AI summary BC Hydro sets incentive levels through business cases every 2-3 years, as part of their program management process. The text outlines a general approach used in other jurisdictions for evaluating and adjusting program incentives.

10. Incentive Rate Finalized Once the incremental measure cost is finalized, BC Hydro will set a standard incentive using the above considerations. Other considerations include: - Interaction with conservation rates - Interaction with code...

AI summary BC Hydro will finalize an incentive rate after determining incremental measure costs, considering interactions with conservation rates, codes/standards, and free-ridership/spillover effects. Low incentives may result from no free ridership, impacting program effectiveness.

COST EFFECTIVENESS REQUIREMENTS Total Resource Cost (TRC) is used by BC Hydro and the BCUC at the program level to evaluate performance. Programs must have a TRC of 1.0 or greater. There is an expectation of low-income programs. Internally...

AI summary BC Hydro and BCUC require programs to have a Total Resource Cost (TRC) of 1.0 or greater. Additional internal cost-effectiveness tests, such as utility cost and ratepayer impact measures, are used. Low-income programs are expected to meet these criteria.

BACKGROUND Efficiency Nova Scotia has contracted CLEAResult to conduct energy conservation and energy efficiency program incentive research. The project covers the following areas: - Identification of best practices for incentive rate sett...

AI summary Efficiency Nova Scotia contracted CLEAResult to research best practices for setting energy program incentives, focusing on jurisdictional comparisons. The project aims to develop guidelines for optimizing energy conservation programs, with findings submitted to Nova Scotia's Utility and Review Board (UARB). The process includes interviews with jurisdictional contacts and public disclosure of final documents.

Customer Class Breakdown The chart below highlights PG&E's consumption by customer class as identified by California's Energy Consumption Data Management System 12 . The total annual energy consumption in 2014 was 86TWh. 10 PG&E Company Pr...

AI summary PG&E's 2014 annual energy consumption by customer class totaled 86TWh, as reported by California's Energy Consumption Data Management System. The data is sourced from PG&E's company profile and related earnings slides.

Savings PG&E's programs have proven very successful at reducing energy consumption and incentivizing energy efficient behaviours and investment decisions. In the 2013-2015 period, PG&E managed to achieve between 110-143 percent of annual g...

AI summary PG&E's energy efficiency programs exceeded their 2013-2015 savings goals, achieving 110-143% of annual gross energy savings and 130-164% of annual demand goals, excluding Codes & Standards savings.

12. Work Paper Once measure level data is acquired from the market, the Products organization will engage its engineering staff to produce a Work Paper. The Work Papers, similar to TRMs found in other jurisdictions, are documents which det...

AI summary The Work Paper process involves creating documents to calculate measure savings and costs, approved by the Commission. Incentive rates are determined separately by the PA and CPUC. PG&E's incentives cover 75-100% of incremental equipment costs, with different calculations for Replace on Burnout and Retrofit/Direct Install measures.

13. Incentive Rate Finalized Once the incremental measure cost is finalized, the Products team will set a standard incentive using the above considerations. Currently, PG&E is attempting to standardize this process in order to cascade the...

AI summary PG&E finalizes incentive rates for energy efficiency programs, standardizing processes for utility and third-party administered programs. Incentives are based on historical costs, payback periods (targeting under 5 years), and cost-effectiveness at the program level. Third-party programs may offer higher incentives ('kickers') to boost participation, while variable incentives (e.g., $/kWh) are updated less frequently.

Energy Trust of Oregon Funding Through state legislation, tariffs and other requirements, Energy Trust is funded by customers of Portland General Electric, Pacific Power, NW Natural and Cascade Natural Gas. Customers of all four utilities...

AI summary Energy Trust of Oregon is funded by customers of PGE, Pacific Power, NW Natural, and Cascade Natural Gas through legislation and tariffs. Key programs include K-12 school energy conservation, low-income housing assistance, and renewable energy initiatives. SB 838 enabled expanded funding, leading to increased energy savings and budget growth from $63M in 2008 to $117M in 2013.

Cost Effectiveness - Electricity When evaluating cost effectiveness, the OPUC defined in Docket UM-551 that the following cost effectiveness tests are to be used: - Utility System Test - Societal Cost Test (similar to TRC) Programs and mea...

AI summary The OPUC, in Docket UM-551, outlines cost-effectiveness tests (Utility System Test and Societal Cost Test, similar to TRC) for qualifying energy programs. Measures passing both tests (benefit-cost ratio ≥1.0) are eligible for Energy Trust Investment, with portfolio-level cost-effectiveness reported ex post.

Portfolio vs. Measure Level Cost Effectiveness As mentioned above, cost effectiveness is calculated at both the measure and program levels. It is important to note that there are fundamental differences in what costs are included when test...

AI summary The text discusses cost effectiveness analysis at measure and program levels. Measure-level testing excludes administration and delivery costs, while program-level testing includes them to ensure a benefit-cost ratio over 1 for UCT and TRC tests. The Energy Trust performs program-level testing to balance measure-level exclusions.

MEASURE DEVELOPMENT & INCENTIVE SETTING PROCESS The Energy Trust has created a standardized, four step process (see Appendix A for flow chart) by which to introduce new measures to their product portfolio and set their maximum eligible inc...

AI summary The Energy Trust outlines a four-step standardized process for introducing new measures and setting maximum eligible incentives, using a flow chart in Appendix A. This process allows the Energy Trust and program delivery agents to balance measure incentives with delivery and administration expenses to meet program goals.

Idea Generation & Vetting - •Identify new measure from multiple souces - •Determine if measure addresses the appropriate considerations\ \ - •Determine if measure is to be pursued/updated or "parked" for the future

AI summary The process involves identifying new measures from multiple sources, assessing their relevance to key considerations, and deciding whether to pursue, update, or defer measures for future action. The focus is on systematic evaluation and prioritization of initiatives.

Preliminary Measure Development - •Collection and analysis of preliminary measure information - •Internal Program Lead creates plan to develop measure - •Identify if any other program may use measure and identify potential crossprogram iss...

AI summary The process outlines steps for developing preliminary measures, including information collection, internal planning, cross-program evaluation, criteria checks, and promotion to detailed development if suitable. Focuses on systematic measure assessment and program alignment.

Detailed Measure Development - •Identify technical guidelines and data, identify any data gaps and create research plan for gaps - •Stakeholder outreach - •Facilitation of crossprogram coordination - •Cost Effectiveness testing - •Draft Me...

AI summary The process involves identifying technical guidelines, addressing data gaps, stakeholder engagement, cross-program coordination, cost-effectiveness testing, and drafting a Measure Approval Document (MAD). Measures with sufficient data and stakeholder support are promoted for approval, while those with gaps may be piloted.

Measure Assumptions Document (MAD) What is a MAD: It is the decision of record determining measure cost effectiveness and authorizing use of a measure. The measure is clearly defined along with the conditions under which it is approved. Th...

AI summary The Measure Assumptions Document (MAD) defines energy efficiency measures, their cost-effectiveness, and approval conditions. It outlines sections like Valid Date, Program, Market Segment, and Cost Effectiveness, with final assumptions and requirements. Energy Trust engineering staff approve MADs, though initial analysis often comes from Energy Trust delivery contractors.

Incentive Setting Considerations When setting a measure incentive the following components are some of the key considerations taken by the Energy Trust and their program delivery agents: - Relationship of incentive to measure Incremental E...

AI summary The Energy Trust considers factors like incremental equipment cost, market impact, and portfolio cost when setting incentives. Guidelines for LUEC are outlined, with performance measures set by OPUC. The process is seen as complex, requiring regular updates. Financial standards include 8% budget for administration.

KEY PLAYERS

AI summary The 'KEY PLAYERS' section outlines key organizations, programs, and regulatory bodies involved in Nova Scotia's energy and utility proceedings. It includes acronyms for entities such as Nova Scotia Utility and Review Board (UARB), Demand Side Management (DSM), and Efficiency Nova Scotia (ENS), along with other provincial, national, and international stakeholders.

Cost Effectiveness Requirements Cost effectiveness is evaluated at the program level by TRC. Fast track programs that were implemented early in the cycle had to score well above a TRC of 1.0. This was done to ensure that significant energy...

AI summary Cost effectiveness is evaluated at the program level using Total Resource Cost (TRC). Fast-track programs required scores above a TRC of 1.0 to ensure significant energy savings, accounting for margins of error.

INCENTIVE RATE SETTIN[G](#page-166-1) 2 The incentive setting process involves collaborative discussions between the utilities, NYSERDA and other interested stakeholders. The goal is to achieve statewide uniformity in terms of qualifying t...

AI summary The incentive rate setting process involves collaboration between utilities, NYSERDA, and stakeholders to achieve statewide uniformity in qualifying technologies and incentives. However, program designs remain tailored to individual utilities' customer needs despite this goal.

Electric Utilities The following electric utilities operate in the state of New York. Customers of these utilities are eligible for their own utility programs as well as NYSERDA programs. Double-dipping of incentives by customers is not al...

AI summary The document lists electric utilities operating in New York, including Central Hudson, Con Edison, National Grid, NYSEG, Orange and Rockland, and RG&E. Customers are eligible for both utility-specific and NYSERDA programs, but double-dipping of incentives is prohibited.

TRC and PACT Both TRC and PACT tests are presented in Efficiency Maine's annual reports. However, only TRC is used to evaluate performance. PACT is used for program planning/stakeholder relationships. TRC and PACT by Efficiency Maine is ba...

AI summary Efficiency Maine uses TRC (Total Resource Cost) for performance evaluation and PACT (Program Administrator Cost) for program planning and stakeholder engagement. TRC requires a net savings ratio above 1.0, while PACT is not used for performance testing. Both frameworks are based on a 2008 National Action Plan for Energy Efficiency report.

3. Incremental Equipment Cost Design Based on the market research and technology, Efficiency Maine will attempt to incentivize the Incremental Equipment Cost based on what is determined as a reasonable return on investment. For ―Replace on...

AI summary Efficiency Maine calculates Incremental Equipment Cost for energy efficiency measures, using the difference between measure cost and standard measures for 'Replace on Burnout' programs, and full measure cost (including labor) for Retrofit/Direct Install measures, based on reasonable ROI assumptions.

ion and innovation, achieving the full potential of the Green Communities Act, and generating significant and sustainable benefits for all Massachusetts' citizens. The EEAC's responsibilities include: - Collaborating with the utilities on...

AI summary The document outlines the Energy Efficiency Advisory Committee (EEAC)'s responsibilities, including collaboration with utilities on energy efficiency plans, publishing progress reports, and managing EM&V processes. It also notes National Grid's role in Massachusetts, Eversource Energy's consolidation of NSTAR and WMECO, and Cape Light Compact's service area. A map and external link are referenced.

NATIONAL GRID – UTILITY OVERVIEW

AI summary The document provides an overview of National Grid's utility operations, referencing regulatory bodies, energy efficiency programs, and technical standards relevant to Nova Scotia. Key entities include Nova Scotia Utility and Review Board (UARB), Demand Side Management (DSM), and Efficiency Nova Scotia (EN). Topics focus on utility regulation and energy efficiency initiatives.

High Level Specifications

AI summary The document outlines a regulatory proceeding in Nova Scotia, listing acronyms and entities involved in energy efficiency, demand-side management, and utility regulation. Key organizations include Nova Scotia Utility and Review Board (UARB) and Efficiency Nova Scotia (EN), with references to programs like DSM and EEPS.

1. Measure Library Section (from TRM process recommendation in report) This section should include the details of each measure in the portfolio, or measures being considered. - Efficient Technology Name; - Efficient Technology Description;...

AI summary The Measure Library Section outlines parameters for evaluating energy efficiency measures, including technology details, costs, energy savings, and program evaluation criteria. It emphasizes metrics like TRC (Total Resource Cost), PAC (Program Administrator Cost), and cost-effectiveness thresholds for assessing measure viability.

Inputs - Avoided Supply Costs (energy and capacity); - Local Avoided Supply Costs (energy and capacity); - Fixed Program Administration Costs; - Year of Implementation; - Measure Participation; - Variable Costs; - Annual Operating Costs (F...

AI summary The document outlines key input parameters for a regulatory proceeding, including avoided supply costs, program administration expenses, measure participation rates, energy savings persistence, and financial factors like discount rates. These inputs are critical for evaluating energy efficiency programs and their associated costs and benefits.

Outputs - Total Gross Energy Savings; - Total Gross Demand Reduction; - Total Net Energy Savings; - Total Net Demand Reduction; - TRC Benefits; - TRC Costs; - TRC Net Benefits; - TRC Ratio; - PAC Benefits; - PAC Costs; - PAC Net Benefits;...

AI summary The document outlines key output metrics for evaluating energy efficiency programs, including total energy and demand reductions, TRC (Total Resource Cost) and PAC (Program Administrator Cost) benefits and ratios, and levelized unit costs. These metrics support cost-benefit analysis and program performance evaluation.

- i. Capture and store measure-level information obtained from the recommended research activities and TRM process - ii. Perform short-term program design or incentive-level cost effectiveness screening - iii. Integrate the review protocol...

AI summary The text outlines steps for capturing data from research and the TRM process, performing cost-effectiveness screening, integrating a review protocol, and simulating program financials to evaluate current incentive levels.

Ibid. 1 3. EFFICIENCYONE'S IMPLEMENTATION PLAN 2 EfficiencyOne agrees with CLEAResult's three recommendations. 3 4 The five general principles CLEAResult suggests for incentive setting are: 5 1. Customer motivations and barriers for partic...

AI summary EfficiencyOne agrees with CLEAResult's recommendations and outlines a plan for implementing changes, including the development of an Incentive Setting Manual, market research, and a consolidated calculator for incentive setting, with a focus on transparency and compliance.

EFFICIENCYONE INCENTIVE SETTING METHODOLOGY FILING (E-ENS-R-16) 1 EfficiencyOne commits to developing a market research plan for 2017-2018 2 within the 2016 calendar yearfirst quarter of 2017 to address CLEAResult's 3 recommendations. 4 5...

AI summary EfficiencyOne is developing a market research plan and an electronic Targeted Resource Management (TRM) tool as part of its incentive setting methodology filing. The TRM is expected to be completed by September 30, 2017, with a print version also planned for regulatory use. The company acknowledges the value of a consolidated calculator for incentive design.

plate and an Excel-based tool) that prescribes both frequency and methodology of updates. The scope of the project focused on financial incentives, though the other types of incentives were discussed. The jurisdictional research involved p...

AI summary The project focused on financial incentives for conservation programs, involving jurisdictional research through primary/secondary sources and stakeholder interviews. ENS's portfolio performance aligns with or exceeds other jurisdictions, though minimal formalized documentation on incentive design was found. Principles were identified via CLEAResult's experience and research.

Jurisdictional Scans CLEAResult undertook jurisdictional scans of various provincial and state utilities and energy efficiency agencies to: - 1) identify the incentive level setting methodologies and best practices in other jurisdictions;...

AI summary CLEAResult conducted jurisdictional scans to identify incentive-setting methodologies and best practices in energy efficiency programs, focusing on geographical similarity, market maturity, and program delivery mechanisms. Research combined primary and secondary data to benchmark Nova Scotia's Energy Nova Scotia (ENS) program against other jurisdictions, revealing multiple criteria for incentive design.

Review of Efficiency Nova Scotia's Historical Performance A review of ENS's historical program performance was undertaken to determine the success of the current programs in market. To obtain detailed information on select programs and the...

AI summary A review of Efficiency Nova Scotia's historical program performance was conducted to assess current program success. Methods included interviews with program managers, analysis of program manuals, and evaluation reports to understand operations, maturity, success factors, and potential modifications.

Program Financial Simulation To test the recommendations, a program financial simulation was conducted for both the Instant Savings and Custom programs. The current incentives were evaluated against multiple criteria, with a recommendation...

AI summary A financial simulation evaluated the Instant Savings and Custom programs' incentives against multiple criteria, assessing their appropriateness. The analysis tested recommendations for these demand-side management initiatives within Nova Scotia's regulatory framework.

ral, all direct install is another example of a convenience incentive. In these programs, there are financial and examples of convenience incentives that are often, combined with financial incentives. The costs associated with providing co...

AI summary The text discusses convenience incentives in energy efficiency programs (e.g., appliance retirement, direct install), where costs are quantified financially. It distinguishes these from customer service improvements (e.g., online systems) not classified as incentives. Educational/technical assistance incentives address knowledge barriers, with some activities tied to financial incentives. ENS, ACEEE, and UARB are involved.

Budget Impact Program administrators are not only affected by cost effectiveness concerns when determining their return on investment. From CLEAResult's experience, in several jurisdictions, the program budget is usually the limiting facto...

AI summary The text emphasizes that program budgets, not just cost effectiveness, often limit expenditures in energy efficiency programs. While incentives may be cost-effective, they must align with budget constraints. Budget impact analysis should consider per-unit savings, per-participant costs, and total budget limits. ROI criteria set incentive ceilings but are often adjusted based on perceived value.

Program Evaluation Review and Historical Experience The final consideration in determining participant perceived value is reviewing previous evaluation reports and accounting for historical experience. Program evaluations typically include...

AI summary The text emphasizes using historical program evaluation data to assess participant value, including barriers, customer insights, and quantitative metrics like participation rates and savings. Historical experience informs adjustments to incentives, such as reducing LED lamp incentives if uptake exceeds forecasts.

Application of Thresholds Incentives can exceed all three of these limits thresholds (and often do), but the limitsthey provide a reference point that can be used during the design process. The limitsthresholds are independent of one anoth...

AI summary The document discusses the application of incentive thresholds in program design, noting they serve as reference points but are independent. It highlights differences between PAC (capturing incentive costs) and TRC, and mentions considerations for customer cost limits based on retail price, incremental cost, or payback. Figures illustrate theoretical limits for incentives.

SUMMARY OF INFLUENCES ON INCENTIVE RATES The different components involved in incentive setting are listed below in Table 26. The table lists how a change in each component can influence measure level incentives. This highlights the multip...

AI summary The text outlines components affecting incentive rates, referencing Table 26 and highlighting program administrators' considerations. It notes factors influencing incentives and quotes feedback from interviewees describing incentive setting as 'as much art as science.'

Research and Engagement Phase can set the stage for incentive adjustments in order to properly balance the incentive rate vs. the identified market barriers and the requirements to adequately deliver the program to meet savings goals. Many...

AI summary The text discusses the importance of adjusting incentive rates to balance market barriers and program delivery strategies, emphasizing the need to assess the impact of incentive rates on program budgets and identify potential budget constraints that may hinder achieving savings goals.

RESIDENTIAL SECTOR There are more than 390,280 residential households in Nova Scotia. 15 The majority of customers are on flat-billing residential electricity purchase agreements. Only 1,000 customers are on residential time-of-use pricing...

AI summary Nova Scotia's residential sector has 390,280 households, with 75% single-family homes and 31% electric heating. Incandescent lamps dominate (51%), while LED adoption is low. Electric water heaters (61%) and heating systems present significant energy efficiency opportunities, though cooling demand is minimal. DSM studies highlight potential for electricity savings through heating and lighting upgrades.

OTHER CONSIDERATIONS Through the most recent program evaluation process, ENS has identified that some educational initiatives are incurring savings attribution issues, and have received tentative disallowance. This specifically was the cas...

AI summary ENS faces savings attribution challenges in educational initiatives like the Home Energy Reports (HER) program, risking disallowance and complicating shifts from financial to educational incentives. ENS avoids dual baselines, using an average wattage approach for annual savings, but this may hinder accurate lifetime energy savings tracking.

Current Programs Mass Market programs (programs that do not target individual customers specifically) cover all types of program scenarios. For example, a retail program can cover all four of these scenarios (New Purchase/Installation, Rep...

AI summary Mass Market programs cover scenarios like New Purchase/Installation and Replacement on Failure without targeting individual customers. CLEAResult and EfficiencyOne outlined these scenarios in Table 15 as part of program design considerations.

The following table contains an analysis of the barriers and the associated incentive strategy for the four investigated programs. Program Identified Barriers Incentive Strategy Business Energy Rebates 2) Commercial and industrial customer...

AI summary The table outlines barriers and incentive strategies for the Business Energy Rebates program. A key barrier is the lack of education among commercial and industrial customers about energy-efficient projects. The incentive strategy involves engaging distributors to educate contractors, who are influential in promoting energy efficiency awareness.

TECHNOLOGY RESEARCH Technology research can provide both the basis for the value of the incentive investment through understanding the energy savings and it can provide insight into how often the incentive should be reviewed. It is very im...

AI summary The text outlines parameters for evaluating technology incentives, including penetration estimates, costs, and energy savings. It emphasizes ongoing research and updates via the TRM process and Program Evaluations to adjust incentives based on market changes.

SUPPLY CHAIN AND SERVICE PROVIDER RESEARCH The supply chain and service providers should be engaged to support the customer and technology research efforts. It may be difficult to directly contact customers and technology manufacturers to...

AI summary The document emphasizes the importance of engaging supply chain and service providers in customer and technology research, as they can facilitate access to contacts, provide reference data, and offer insights for incentive setting. Challenges include administrative barriers that may limit the effectiveness of incentives, even if they are financially attractive. Regular interactions with supply chain stakeholders are recommended for program design and management.

JURISDICTIONAL BENCHMARKING Jurisdictional benchmarking is not essential for existing incentives. The current program performance, historical experience and recommended research should provide a comprehensive analysis for incentive setting...

AI summary Jurisdictional benchmarking is not essential for existing incentives due to sufficient historical data and program performance. However, it is recommended for new incentives to understand other jurisdictions' approaches, considering factors like market size and delivery methods. Periodic checks with other regions are advised as best practice.

Understand Technology Savings, Price and Market Penetration EfficiencyOne currently understands technology savings, price and market penetration through three different avenues: 1. Annual review through program evaluation process; 2. Speci...

AI summary EfficiencyOne collects technology savings, price, and market penetration data through program evaluations, specialized research, and program delivery. It is recommended that EfficiencyOne maintain current activities and introduce a formal measures assumption validation process, including a Technology Readiness Model (TRM), supported by research and reviewed periodically by a committee.

For the Instant Savings Program, CLEAResult has the following recommendations: General Principle Current Activities Recommended Activities

AI summary CLEAResult provides recommendations for the Instant Savings Program, focusing on general principles, current activities, and recommended activities. The table outlines areas for improvement and potential changes to enhance the program's effectiveness.

Understand Customer Motivation and Barriers for Participation For the Custom Program, EfficiencyOne gains an understanding of customer motivations and barriers through: 1. Market Research; 2. Ongoing Program Management; 3. Program Benchmar...

AI summary EfficiencyOne conducted market research to understand customer motivations and barriers for participation in the Custom Program. The research found that financial incentives were not effective in driving participation, and educational incentives combined with access to financial support were more valuable. Ongoing program management is also emphasized for improving participation.

Program Evaluation Through the annual program evaluation process, participant surveys are conducted to determine free ridership and spillover savings . For the Custom Program, EfficiencyOne gains an understanding of technology savings, pri...

AI summary The document discusses the evaluation of energy efficiency programs, emphasizing the collection of energy savings and cost data through feasibility studies and project applications. It highlights the importance of understanding market penetration, engaging the supply chain, and setting incentive thresholds based on energy savings persistence.

Principles section. Understand Supply Chain and Service Provider Considerations For the Custom Program, EfficiencyOne gains an understanding of the supply chain and service provider considerations through: 1. Ongoing Program Management and...

AI summary The document discusses how EfficiencyOne gains an understanding of supply chain and service provider considerations through program management and evaluation. It also covers financial impacts through project screening, program management, and evaluation. CLEAResult recommends continuing current activities and expanding cost-effectiveness screening to include the Program Administrator Cost.

For the Business Energy Rebates program, CLEAResult has the following recommendations:  For the Business Energy Rebates Program, EfficiencyOne gains an understanding of especially for customer motivations and barriers through: underperfor...

AI summary CLEAResult recommends that EfficiencyOne conduct market research, ongoing program management, benchmarking, and program evaluation to understand customer motivations and barriers for the Business Energy Rebates program. Research from 2014 highlighted the importance of financial support for business participation in energy efficiency initiatives.

Other Considerations for Business Energy Rebates Program From reviewing program operations, the Business Energy Rebates program tracks retail pricing through the application process. This allows program managers to understand if incentive...

AI summary The Business Energy Rebates program monitors retail pricing to set appropriate incentive levels, relying on cost-to-customer thresholds. High Program Administrator Costs (PAC) are forecast but deemed manageable with active budget tracking. The Instant Rebates stream lacks customer data, complicating alignment with local avoided costs. Effective program oversight is emphasized to ensure cost-effectiveness.

ants in the Home Energy Assessment program. It was found that some customers were implementing a subset of recommended measures after receiving an audit report, although they did not complete a final audit to receive the incentives. The re...

AI summary The Home Energy Assessment program has seen customer participation with some implementing recommended measures but not completing final audits for incentives. Research found that initial audits lower unit costs through spillover savings, leading to increased audit subsidies. A 2014 study by EfficiencyOne showed a 25% incentive was more effective than interest-free financing for major efficiency upgrades. Ongoing management involves understanding customer motivations and benchmarking against federal programs.

INSTANT SAVINGS PROGRAM FINANCIAL SIMULATION For the Instant Savings Program, the program financial simulation analysis included the following six steps for each measure: - 1. Identify the current (2015) participation and incentive level;...

AI summary The Instant Savings Program's financial simulation involves six steps: assessing participation levels, market penetration, cost thresholds, budget thresholds, effectiveness thresholds, and comparing current incentives to these thresholds. Data for measure parameters was sourced from EfficiencyOne.

Cost to Customer Incentive Level Threshold As discussed in the Financial Impact Analysis section of the General Principles recommendations, a program that features residential customers making small purchases at retailers should use retail...

AI summary The document discusses setting a 50% cost-to-customer threshold for residential incentives using retail prices, as suggested by CLEAResult. EfficiencyOne's 2014 research is referenced, with a note that updates are needed for more accurate 2016 retail prices.

ONTARIO CORE PROGRAM OFFERINGS (RESIDENTIAL AND BUSINESS) Currently, the conservation programs in Ontario cover the residential, low income, small business, commercial and industrial, and large industrial sectors. The programs cover financ...

AI summary Ontario's conservation programs serve residential, low-income, small business, commercial, and industrial sectors through incentives, coaching, and training. Rigorous five-year evaluations have raised energy efficiency baselines, with T8 lighting now standard. A new pay-for-performance framework for LDC funding marks a first in North America.

MARKET STRUCTURE OVERVIEW DSM is a core part of the conservation first policy in Ontario as per the 2013 Long-Term Energy Plan. In 2014, the Minister of Energy issued a directive to the Ontario Energy Board (OEB) for the development of a n...

AI summary Demand Side Management (DSM) is central to Ontario's conservation-first policy, guided by the 2013 Long-Term Energy Plan. The Ontario Energy Board (OEB) developed a DSM framework in 2014 to reduce natural gas consumption, align with electricity conservation efforts, and ensure cost-effective programs. Utilities like Union Gas and Enbridge submit proposals for OEB approval, with mid-term reviews in 2018 and ongoing evaluation by the OEB starting in 2016.

The gas utilities have developed and submitted their annual DSM program budgets for all proposed programs for OEB approval 2015-2020. The budgets are comprehensive including financial, marketing and communications, administration and staff...

AI summary The gas utilities have submitted annual DSM program budgets for 2015-2020 to the OEB for approval. These budgets include financial, marketing, administration, staffing, and evaluation components. The OEB has approved these budgets with modifications.

Cost Effectiveness Requirements The gas utilities' overall DSM goals are to achieve all the cost-effective DSM available in its market. The OEB determined that cost effectiveness should be based on the Total Resource Cost-plus (TRC-plus) t...

AI summary Nova Scotia gas utilities must achieve all cost-effective Demand Side Management (DSM) programs. The Ontario Energy Board (OEB) mandates the Total Resource Cost-plus (TRC-plus) test for screening, with a 0.7 threshold for low-income programs and 1.0 for Resource Acquisition programs. Market transformation programs are exempt from cost-effectiveness testing.

INCENTIVE RATE SETTING Union Gas is responsible for setting incentive levels for their programs. Periodic reviews of the appropriateness of incentive levels is conducted and adjustments to financial incentives are made. Below is an overvie...

AI summary Union Gas is responsible for establishing and periodically reviewing incentive levels for energy efficiency programs. Adjustments to financial incentives are made based on evaluations of new measures or significant changes to existing ones, ensuring appropriateness through structured processes.

INCENTIVE LEVEL-SETTING METHODOLOGY The following is a rough sketch of what we have seen in other territories. BC Hydro is responsible for setting incentive levels for their programs and introducing new measures and programs. This is perfo...

AI summary BC Hydro sets incentive levels for energy programs through business cases, updating every 2-3 years. The process involves evaluating new measures or significant changes to existing ones, though specific methodologies are not detailed in the excerpt.

10. Incentive Rate Finalized Once the incremental measure cost is finalized, BC Hydro will set a standard incentive using the above considerations. Other considerations include: - Interaction with conservation rates - Interaction with code...

AI summary BC Hydro will finalize an incentive rate after determining incremental measure costs, considering interactions with conservation rates, codes, and free-ridership estimates. Free-ridership analysis is critical to avoid setting incentives too low if no free riders are present.

Savings PG&E's programs have proven very successful at reducing energy consumption and incentivizing energy efficient behaviours and investment decisions. In the 2013-2015 period, PG&E managed to achieve between 110-143 percent of annual g...

AI summary PG&E's energy efficiency programs exceeded their 2013-2015 savings goals, achieving 110-143% of annual gross energy savings and 130-164% of demand goals. The document references tables and external data sources to support these claims.

All California PAs must deliver energy efficiency portfolios which have a TRC and PAC greater than 1. Below is PG&E's historical cost effectiveness for its 2013 and 2014 program portfolio. PG&E 2013-2015 Incentive-to-Administrative Spendin...

AI summary The text outlines requirements for California PAs to deliver energy efficiency portfolios with TRC and PAC greater than 1, and provides PG&E's historical cost effectiveness data for its 2013 and 2014 program portfolio, showing TRC and PAC values.

12. Work Paper Once measure level data is acquired from the market, the Products organization will engage its engineering staff to produce a Work Paper. The Work Papers, similar to TRMs found in other jurisdictions, are documents which det...

AI summary The Work Paper process involves engineering staff calculating measure savings using EM&V protocols, approved by the Commission. Incremental Equipment Cost is incentivized at 75-100% by PG&E, with methods varying for 'Replace on Burnout' and Retrofit/Direct Install measures. Incentive rates are determined separately via Program Implementation Plans reviewed by CPUC.

13. Incentive Rate Finalized Once the incremental measure cost is finalized, the Products team will set a standard incentive using the above considerations. Currently, PG&E is attempting to standardize this process in order to cascade the...

AI summary PG&E is standardizing incentive rates for its programs and third-party administrators, using historical costs, payback periods, targeted incentives, and program-level cost effectiveness. Incentives are updated less frequently, with the last update three years ago.

APPENDIX A-5: OREGON & WASHINGTON (ENERGY TRUST OF OREGON)

AI summary Appendix A-5 discusses energy efficiency initiatives in Oregon and Washington, focusing on the Energy Trust of Oregon. It outlines regulatory considerations, program structures, and evaluation methodologies relevant to demand-side management and energy efficiency resource standards.

Energy Trust of Oregon Funding Through state legislation, tariffs and other requirements, Energy Trust is funded by customers of Portland General Electric, Pacific Power, NW Natural and Cascade Natural Gas. Customers of all four utilities...

AI summary Energy Trust of Oregon is funded by customer charges from Portland General Electric, Pacific Power, NW Natural, and Cascade Natural Gas. Established by a 1999 law, it supports energy efficiency and renewables. SB 838 (2007) expanded funding, enabling increased savings from 27 to 58 average megawatts (2009–2013) and doubling expenditures from $63M to $117M. Programs include K-12 schools, low-income housing, and gas conservation.

MEASURE DEVELOPMENT & INCENTIVE SETTING PROCESS The Energy Trust has created a standardized, four step process (see Appendix A for flow chart) by which to introduce new measures to their product portfolio and set their maximum eligible inc...

AI summary The Energy Trust outlines a four-step standardized process for introducing new measures and setting maximum eligible incentives. This process allows the Energy Trust and its delivery agents to balance measure incentives with delivery and administration expenses to meet program goals.

Idea Generation & Vetting - •Identify new measure from multiple souces - •Determine if measure addresses the appropriate considerations\ \ - •Determine if measure is to be pursued/updated or "parked" for the future

AI summary The process involves identifying new measures from various sources, evaluating their alignment with relevant considerations, and deciding whether to pursue, update, or defer (park) them for future action. This stage focuses on initial screening and prioritization of potential initiatives.

Preliminary Measure Development - •Collection and analysis of preliminary measure information - •Internal Program Lead creates plan to develop measure - •Identify if any other program may use measure and identify potential crossprogram iss...

AI summary The preliminary measure development process involves collecting and analyzing measure information, creating a development plan, checking program compatibility, and conducting engineering and criteria evaluations. Measures deemed suitable are advanced to detailed development stages.

Considerations for vetting ideas, measures and measure updates Below are the considerations taken by the Energy Trust and its program delivery agents when introducing a new measure into its program portfolio or updating a measure's metrics...

AI summary The Energy Trust and its program delivery agents evaluate new measures or updates based on criteria including savings potential, budget impact, alignment with long-term strategy, stakeholder interest, risk analysis, market availability, acceptance, timing, and prior experience with the measure.

Incentive Setting Considerations When setting a measure incentive the following components are some of the key considerations taken by the Energy Trust and their program delivery agents: - Relationship of incentive to measure incremental c...

AI summary The Energy Trust considers factors like incremental costs, market impact, and portfolio cost effectiveness when setting incentives. They use guidelines for LUEC and performance measures set by Oregon's OPUC, with specific targets for utilities like PGE and PacifiCorp. Regular updates to incentives are recommended as markets evolve.

INCENTIVE RATE SETTING [22](#page-173-1) The incentive setting process involves collaborative discussions between the utilities, NYSERDA and other interested stakeholders. The goal is to achieve statewide uniformity in terms of qualifying...

AI summary The incentive rate setting process involves collaboration between utilities, NYSERDA, and stakeholders to achieve statewide uniformity in technology and incentives. However, program designs remain tailored to individual utility customer needs despite this goal.

Previous Results (Savings, Expenditure, Cost Effectiveness) Year Electricity Savings Expenditure Cost Effectiveness 2013 Not Available Not Available Not Available 2014 Not Available Not Available Not Available 2015 Not Available Not Availa...

AI summary The document provides a summary of previous results related to electricity savings, expenditure, and cost effectiveness from 2013 to 2015, with data not available for these years. It also outlines future targets for 2016 to 2018, with similarly missing data. The section on incentive level setting methodology is mentioned but not detailed.

VERMONT ENERGY EFFICIENCY PROGRAM INCENTIVE AND COST EFFECTIVENESS POLICY Vermont is viewed as one of the leading jurisdictions for promoting conservation in North America. Vermont Energy Investment Corporation (VEIC) has won multiple awar...

AI summary Vermont's energy efficiency program, managed by Efficiency Vermont, sets three-year energy savings targets and budgets negotiated between the PSB and VEIC. The 2015-2017 cycle targets 321,800 MWh of savings and a total resource benefits target of $336.3 million. Performance is measured through an EM&V process, with payments contingent on meeting targets.

Avoided Costs 2 Any updates to the avoided costs for Vermont are led by the PSB. Periodically, the avoided costs are updated. The last update occurred in 2015, based on a report by Synapse Energy Economics, which investigated the avoided e...

AI summary Vermont's avoided costs are updated periodically by the PSB, with the last update in 2015 based on Synapse Energy Economics' report. Calculations include categories like Avoided Capacity Costs and Avoided Energy Costs tied to RPS compliance. Changes require board approval, and costs are calculated regionally for New England, including Vermont.

EFFICIENCY VERMONT –OVERVIEW

AI summary Overview of Efficiency Vermont (EV), focusing on energy efficiency programs, regulatory proceedings, and related entities. Highlights key stakeholders, methodologies, and initiatives in demand-side management and energy conservation.

INCENTIVE LEVEL SETTING METHODOLOGY Efficiency Vermont developed a new product development process about a year and a half ago. It involves a customer mapping and an engagement process that covers seven stages: - 1. Idea Solicitation - 2....

AI summary Efficiency Vermont outlines a nine-stage New Product Development (NPD) process for designing incentive programs, emphasizing customer behavior over cost-effectiveness. The process is used for new programs but not for existing ones with unchanged delivery. Data tracking, societal cost-effectiveness tests, and annual evaluations of energy savings assumptions are key components.

PORTFOLIO MATURITY AND HISTORICAL PERFORMANCE DSM programs were administered by electric utilities before 2002. Efficiency Maine was then established in 2002 to promote electricity efficiency, reduce energy costs and improve the environmen...

AI summary DSM programs transitioned from electric utilities to Efficiency Maine in 2002, which became an independent Trust by 2009. From 2004-2010, Efficiency Maine achieved 4.6 million MWh lifetime savings, a 2.92 benefit-to-cost ratio, and 3.6 cents/kWh cost, administered under the Maine Public Utilities Commission (MPUC).

2. Technical Reference Manual Efficiency Maine has Residential TRMs and Commercial TRMs. These are documentation for energy and demand savings calculations of energy efficiency measures along with all the typically associated technology in...

AI summary Efficiency Maine maintains Residential and Commercial Technical Reference Manuals (TRMs) to document energy and demand savings calculations for energy efficiency measures, including associated technology information and assumptions.

ion and innovation, achieving the full potential of the Green Communities Act, and generating significant and sustainable benefits for all Massachusetts' citizens. The EEAC's responsibilities include: - Collaborating with the utilities on...

AI summary The document outlines the Efficiency and Energy Advisory Committee (EEAC)'s responsibilities, including collaborating with utilities on energy efficiency plans, managing EM&V processes, and publishing progress reports. It notes National Grid's service territory, Eversource Energy's consolidation of NSTAR and WMECO, and Cape Light Compact's role. Utilities under Mass Save have individual savings targets and budgets.

Cost Effectiveness Testing As per the 2016-2018 plan, there are three key elements to cost effectiveness: - 1. Each program is supposed to be screened for cost effectiveness. For Massachusetts, the TRC test is used for screening. There is...

AI summary The 2016-2018 plan outlines three cost effectiveness criteria: screening programs using the TRC test (specifically in Massachusetts), minimizing program administration costs, and employing competitive procurement processes.

Outputs - Total Gross Energy Savings; - Total Gross Demand Reduction; - Total Net Energy Savings; - Total Net Demand Reduction; - TRC Benefits; - TRC Costs; - TRC Net Benefits; - TRC Ratio; - PAC Benefits; - PAC Costs; - PAC Net Benefits;...

AI summary The document outlines key output metrics for evaluating energy efficiency programs, including energy and demand savings, TRC (Total Resource Cost) and PAC (Program Administrator Cost) benefits and costs, and cost ratios. These metrics help assess program effectiveness and economic viability.

Inputs - Incentive screening threshold in terms of cost to the customerCustomer Cost (From Measure Library); - Incentive screening threshold in terms of the program budget (From Measure Library); - Incentive screening threshold in terms of...

AI summary The document outlines key inputs for evaluating energy efficiency programs, including customer cost thresholds, program budget limits, cost-effectiveness criteria, sector categorization, delivery channels, and financial impact assessments. These parameters are used to screen incentives and guide program implementation in regulatory proceedings.

M07544 EfficiencyOne Incentive Setting Methodology (E-ENS-R-16) Further to the Board's letter of April 6, 2017 regarding the EfficiencyOne ("E1") Revised Incentive Setting Methodology report, participant comments were received on April 27,...

AI summary The Nova Scotia Utility and Regulatory Authority (NSURA) reviews EfficiencyOne's (E1) Incentive Setting Methodology report, incorporating stakeholder feedback. Key developments include a Consolidated Calculator for evaluating incentives, a Technical Reference Manual (TRM), and clarification on cost thresholds. The Board accepts E1's report and implementation plan, noting collaboration with stakeholders.

General Principles for Incentive Rate Setting Generally, the five principles discussed on page 40 of the report are appropriate considerations for setting incentive levels. However, greater emphasis should be placed on the financial impact...

AI summary The text acknowledges the appropriateness of five principles for incentive rate setting but emphasizes the need for stronger focus on financial impact analysis and incremental cost. Concerns are raised about methodological ambiguities and insufficient examples in the report.

Incremental Costs as Incentive Thresholds CLEAResult provides three theoretical limits for incentives: (1) percentage of customer cost, (2) PAC benefits, and (3) budget. 3 On page 44 of the report, CLEAResult discusses in detail acceptable...

AI summary CLEAResult outlines three incentive limits (customer cost percentage, PAC benefits, budget) but is criticized for overemphasizing project cost and underemphasizing customer cost/ROI. The analysis argues that CLEAResult's framework is inappropriate for setting incentive levels, citing experience with energy efficiency programs across jurisdictions.

Acceptable incentive threshold On page 44 of the report, Table 13 provides absolute limits and suggested incentive boundary/ceilings based on various cost types for various programs. As discussed above, we believe that the basis for all pr...

AI summary The document critiques Table 13's incentive thresholds, questioning the basis for absolute limits and the derivation of suggested boundaries. Concerns include unclear application of thresholds for programs like HVAC installations and residential energy efficiency, where high percentages of retail prices may lead to excessive incentives. CLEAResult's evaluation of EfficiencyOne's incentives is also questioned due to lack of premium price or incremental cost data.

Analysis of supply chain and service provider In various places, CLEAResult's report explores ways that supply chain research can yield helpful information for setting incentive levels. For example, the report mentions how supply chain res...

AI summary CLEAResult's report highlights how supply chain research can inform incentive levels by providing supplier cost insights, customer barriers, and sales data. However, it lacks clarity on integrating supply chain findings into incentive decisions. The report acknowledges the need for more guidance to prevent supplier manipulation of incentives while suggesting data on sales and market saturation could justify incentive adjustments.

Role of financing Low-cost, attractive financing options such as on-bill financing or the Property Assessed Clean Energy (PACE) bond reduce the barriers to adopting energy efficiency measures. They are likely to increase the measure adopti...

AI summary The text highlights that low-cost financing options like on-bill and PACE bonds can increase energy efficiency adoption and influence utility incentives. However, the CLEAResult report lacks discussion on financing's role and should integrate it into incentive-setting processes, citing existing programs such as Green Heat and Business Energy Rebates.

Direct incentive design The scope of CLEAResult's report solely addresses how to set "incentive levels." However, as noted in the appendix on NYSERDA, "[o]ne of the key considerations for incentive level setting is to match the incentive t...

AI summary CLEAResult's report focuses on setting incentive levels but suggests expanding to include direct incentive targets and performance-based incentives. Guidance is needed on targeting market actors (e.g., builders, property owners) and supply chain focus (e.g., manufacturers). Performance-based incentives can encourage deeper energy savings, with examples in lighting and HVAC programs.

Incentive Optimization Tools Once incentives have been initially established, Synapse also states as factors for optimization: "[f]actors to consider include simple payback years, benefit cost ratios under the PAC and participant cost test...

AI summary Synapse suggests multiple factors for optimizing incentives, but EfficiencyOne argues only customer surveys and benchmarking programs directly influence customer uptake. Other metrics, like benefit-cost ratios and evaluation studies, may not accurately reflect customer value. EfficiencyOne also supports using historical program experience as a key consideration.

Direct Incentive Design Synapse suggests expanding the scope of the Report to include commentary on new "direct incentive design" mechanisms, as well as program design considerations, including which market actors to target with incentives...

AI summary Synapse proposes expanding the report's scope to cover direct incentive mechanisms and program design considerations, while EfficiencyOne argues the current scope meets the Board's Order and that expansion would offer limited value.

Other Issues Please refer to the below quotations from Synapse's letter of comment, with EfficiencyOne and CLEAResult's responses below: "First, we recommend CLEAResult offer a detailed definition of the theoretical limits. CLEAResult ment...

AI summary Synapse Energy Economics Inc. recommends CLEAResult clarify definitions of 'theoretical limits,' adjust terminology in Figure 4, and revise Table 2 examples. EfficiencyOne and CLEAResult agree to some changes but argue against using PAC benefits to adjust incentives, emphasizing the PAC ratio's role as a 'check' rather than an optimization tool. EfficiencyOne also highlights risks of misaligning incentives with PAC tests.

PERCEIVED VALUE VS. BENEFITS TO PARTICIPANTS E1 disagrees with Synapse's suggestion to change "perceived value" to "benefits to participants," because E1 assumes that "benefits to participants" is only intended to reflect participants' per...

AI summary E1 disputes Synapse's proposal to replace 'perceived value' with 'benefits to participants,' arguing the latter should encompass financial and non-financial benefits. A suggested modification is changing 'perceived value' to 'participants' perceived value.' Alternative strategies like targeted marketing and incentive design are highlighted as ways to boost participation without altering incentive levels. The text references EfficiencyOne's franchise under Efficiency Nova Scotia.

Consultation with DSMAG The issues and consensus positions as set out in relation to the above issues, were presented to stakeholders in a meeting with the DSMAG on November 3, 2016. At that time no additional issues, concerns or objection...

AI summary Stakeholders met with DSMAG on November 3, 2016, with no new objections raised. The SBA provided comments to EfficiencyOne on November 14, requesting clarification on customer participation rates in Slide 8 and more detailed discussion on customer research in Slide 10. These requests do not impact the consensus but require further dialogue.

n its understanding of how to do a better job of incentive level setting. Instead, EfficiencyOne proposes to take an even longer time (an additional two years) to reach this goal, rather than making a 3 Excel-Based Tool for Considerations...

AI summary EfficiencyOne proposes a two-year delay in finalizing incentive-setting methodology, while the SBA argues this delays benefits for small businesses. The SBA emphasizes urgency for actionable tools and cost-effective programs, expressing interest in reviewing improvements with EfficiencyOne and DSMAG. The SBA seeks timely progress for small business stakeholders.

Use of Participant Cost Test In our comments on the initial report, we indicated that "we consider the Participant Cost (PC) test an important metric that can be weighed against the results of the Program Administrator Cost (PAC) and Total...

AI summary The Participant Cost (PC) test is highlighted as a key metric in evaluating a participant's perceived value, included in the revised incentive setting report. However, it is omitted from Table 5, which lists customer cost considerations. The DSMAG argues for its inclusion in Table 5 to align with the report's new narratives on pages 19 and 26.

Incremental Equipment Costs In the appendices (as elsewhere in the revised report), "incremental costs" was universally changed to "Incremental Equipment Costs." If the program administrators in these case studies use a different definitio...

AI summary The term 'incremental costs' was universally changed to 'Incremental Equipment Costs' in appendices and the revised report. However, if program administrators use a different definition, these changes may be inaccurate. CLEAResult is advised to verify the appropriateness of these changes.

he selected American utilities are all in the top fifteen of the 2015 ACEEE scorecard, which indicates top performance in best practices Privileged and Confidential Prepared at the Request of Counsel and leadership. Identifying and compari...

AI summary The text compares Nova Scotia's energy efficiency programs to top American utilities using the ACEEE scorecard, noting that CLEAResult's analysis suggests Nova Scotia's performance is comparable or better. However, the text argues that this comparison is not valid for several reasons, though specific reasons are not detailed.

1 6. REPLY TO NS POWER ON OTHER ISSUES 2 NS Power Comment 3 "The CLEAResult Report focused on financial incentives and did not evaluate the merits 4 of non-financial incentives, such as educational programs and outreach. Co-optimizing 5 al...

AI summary EfficiencyOne responds to NS Power's comments on the CLEAResult Report, emphasizing that the Board's original direction focused solely on financial incentives, not education/outreach. The report provides upper limits for incentives, with education considered below those limits. NS Power argues that EfficiencyOne's DSM costs imply a later stage in energy efficiency adoption, leading to lower potential and higher costs.

1 EfficiencyOne Response 2 After discussing NS Power's comment with program staff, it seems the project in 3 question was likely an illustrative example of a recommissioning project that could 4 proceed through the Building Optimization (B...

AI summary EfficiencyOne discusses the Building Optimization (BO) service under the Custom program, which provides incentives for recommissioning projects. ENS covers 100% of study costs up to $2,500 and may offer additional incentives. BO is a new service with limited uptake, used to engage commercial customers. Free-ridership was evaluated at 0% in 2016, as customers relied on ENS support for studies.

Re: M07544 – EfficiencyOne – Incentive Setting Methodology (E-ENS-R-16) CLEAResult has reviewed the letters of comment filed by Nova Scotia Power Inc., the Industrial Group, the Small Business Advocate, and Synapse Energy Economics Inc. in...

AI summary CLEAResult responds to feedback on its revised incentive methodology report, emphasizing a framework approach rather than prescriptive methods. The report outlines five principles for incentive setting, addressing stakeholder comments from Nova Scotia Power, the Industrial Group, the Small Business Advocate, and Synapse Energy Economics Inc.

1) Customer Research The customer research is intended to capture the understanding of the customer's motivations and barriers to participate. The identification of the barriers will inform the incentive design, and broader program design...

AI summary Customer research aims to identify motivations and barriers to participation, informing incentive and program design. Understanding customer valuation methods (e.g., upfront costs, lifecycle costs) ensures aligned incentives. Barriers may require education or non-financial incentives to address.

2) Technology Research The key to the technology research is understanding a product or service's energy savings, price and market penetration. These three elements provide key insight into understanding options for the program design, and...

AI summary Technology research focuses on evaluating energy savings, price, and market penetration of products/services. These factors inform program design and incentive levels, with a Technical Reference Manual (TRM) serving as a key tool for documenting and updating data.

4) Financial Impact Analysis The financial impact analysis requires the answering of six questions: - i. What is the current incentive, forecasted participation and forecast incentive expenditure? - ii. What is the market penetration ( obt...

AI summary The financial impact analysis outlines six questions regarding incentives, participation, and thresholds, and discusses jurisdictional benchmarking for existing and new incentives. Benchmarking is recommended for new incentives to address knowledge gaps, while existing incentives rely on other performance parameters.

Application of Incentive Limits When conducting the financial impact analysis, there are three thresholds that can be used to help quantify an incentive's financial performance: - 1) Cost to Customer - 2) Program Budget - 3) Cost Effective...

AI summary The document outlines three financial thresholds (Cost to Customer, Program Budget, Cost Effectiveness) for evaluating incentive performance. CLEAResult recommends EfficiencyOne use these to assess incentives transparently, with upper limits serving as guidelines rather than prescriptive rules. Broader program design rules may also be considered, allowing flexibility in incentive setting.

Financing The need for financing as a program design element will surface during the customer research and the identification of barriers. If upfront costs are an issue, while lifetime costs and cash flow are not a concern to customers, fi...

AI summary The document discusses financing as a program design element, noting its relevance when upfront costs are barriers. The project methodology was updated to exclude upfront cost analysis, while Table 6 now includes financing as a parameter affecting incentive levels. The Net Present Value of financing costs is to be incorporated into budget and cost-effectiveness analyses, potentially reducing incentives.

- 2 c) Develop a consolidated calculator that can conduct the 3 analysis that supports the incentive-level setting process. 4 The calculator should have the following functionality: - 6 i. Capture and store measure-level information obtain...

AI summary The text outlines the need to develop a consolidated calculator for analyzing incentive-level settings in programs. It specifies functionality requirements, including capturing measure-level data, performing cost-effectiveness screening, and integrating a review protocol. It also calls for a financial simulation of current incentives using a defined methodology.

9 Ibid. 1 3. EFFICIENCYONE'S IMPLEMENTATION PLAN 2 EfficiencyOne agrees with CLEAResult's three recommendations. 3 4 The five general principles CLEAResult suggests for incentive setting are: 5 1. Customer motivations and barriers for part...

AI summary EfficiencyOne agrees with CLEAResult's recommendations and outlines its implementation plan, including the development of an Incentive Setting Manual to ensure transparency and consistency in setting and revising incentive levels. Key actions include completing market research, developing a manual, and ensuring compliance through internal controls and external oversight.

plate and an Excel-based tool) that prescribes both frequency and methodology of updates. The scope of the project focused on financial incentives, though the other types of incentives were discussed. The jurisdictional research involved p...

AI summary The project focused on financial incentives for demand-side management, involving jurisdictional research comparing ENS's performance to Nova Scotia's Achievable Potential study. Findings highlight ENS's comparable or better performance, minimal formalized incentive design documentation, and principles identified through research and CLEAResult's experience.

Review of Efficiency Nova Scotia's Historical Performance A review of ENS's historical program performance was undertaken to determine the success of the current programs in market. To obtain detailed information on select programs and the...

AI summary A review of Efficiency Nova Scotia's (ENS) historical program performance was conducted to assess program success. Methods included interviews with program managers, analysis of program manuals, and evaluation reports to understand operations, maturity, success factors, and potential modifications.

Customer Research A critical component of determining participant perceived value is actually asking potential customers what they would pay for a product or service, and what their price points are for difficult technology options. Additi...

AI summary Customer research is vital to understanding perceived value, barriers, and incentives for energy-efficient technologies like LED lamps. Financial considerations alone may not address non-financial barriers (e.g., light quality, mercury concerns in CFLs). The principal-agent problem in rental units highlights conflicting motivations between tenants and landlords regarding energy efficiency upgrades.

Supply Chain and Stakeholder Discussion In designing and delivering any best-in-class energy efficiency program, it is important to involve the supply chain and key stakeholders such as industry associations, other government agencies and...

AI summary The document emphasizes involving supply chain and stakeholders in energy efficiency programs to address market barriers, adjust incentives, and ensure effective delivery. Examples include adapting financial incentives for commercial refrigeration programs and understanding distributor barriers in midstream lighting initiatives. Stakeholders also help identify external incentives like tax rebates and low-cost financing.

Program Evaluation Review and Historical Experience The final consideration in determining participant perceived value is reviewing previous evaluation reports and accounting for historical experience. Program evaluations typically include...

AI summary The document discusses using historical program evaluation data to assess participant value, including analysis of barriers, customer insights, and adjustments to incentive rates based on past participation outcomes, such as reducing incentives if uptake exceeds forecasts.

PAC Benefits (Cost Effectiveness) Threshold The PAC is the cost effectiveness test that reflects a program administrator's financial expenditure for a measure, program or portfolio. It is calculated by dividing the PAC benefits, which are...

AI summary The PAC (Program Administrator Cost) threshold evaluates cost-effectiveness by comparing avoided supply/distribution costs (PAC benefits) to program administrator costs (incentives, overhead). Jurisdictions often set a minimum PAC of 1.0, but higher thresholds (e.g., 2.0) may limit incentives to 50% of PAC benefits, ensuring cost-effectiveness in program design.

Application of Thresholds Incentives can exceed all three of these thresholds (and often do), but they provide a reference point that can be used during the design process. The thresholds are independent of one another. They can all contri...

AI summary The text explains that incentives in program design can exceed three independent thresholds, which serve as reference points for determining maximum eligible incentives. These thresholds are not interdependent and collectively inform the incentive-setting process for energy efficiency measures.

JURISDICTION IDENTIFICATION AND SELECTION The selected jurisdictions were as follows: - Ontario (IESO); - Ontario (Union Gas); - British Columbia (BC Hydro); - California (PG&E); - Oregon (Energy Trust of Oregon); - Washington (Energy Trus...

AI summary Nova Scotia selected jurisdictions like Ontario (IESO, Union Gas), BC Hydro, and California (PG&E) for their best-in-class status, similarity in size, market structure, energy efficiency policies, program delivery models, and climate to Nova Scotia.

Research and Engagement Phase Financial Impacts & Risks Using preliminary incentive rates identified in the previous phase and participation forecast, the impact on the aggregate administrator budget and the program budget can be determine...

AI summary The text discusses the financial impacts and risks associated with incentive rates in a program, emphasizing the need to balance these rates with market barriers. It outlines steps that program administrators should take to identify these financial impacts.

OTHER CONSIDERATIONS Through the most recent program evaluation process, ENS has identified that some educational initiatives are incurring savings attribution issues, and have received tentative disallowance. This specifically was the cas...

AI summary ENS identified savings attribution issues in educational initiatives like Home Energy Reports (HER), leading to tentative disallowance. This complicates shifting funding from financial to educational incentives. ENS also uses average wattage methods instead of dual baselines for energy savings, which may hinder accurate lifetime savings tracking.

Current Programs Mass Market programs (programs that do not target individual customers specifically) cover all types of program scenarios. For example, a retail program can cover all four of these scenarios (New Purchase/Installation, Rep...

AI summary Mass Market programs in Nova Scotia cover all customer scenarios without targeting individuals. Retail programs handle scenarios like New Purchase/Installation and Replacement on Failure. CLEAResult and EfficiencyOne outlined these scenarios in Table 15 of the program design.

f Marginal Cheapness/Inexpensiveness (PMI) establishes the lower boundary. As the technology and consumer motivations for purchase evolve, the cumulative distribution curves will change, accordingly. The Van Westerndorp Prince Sensitivity...

AI summary The text discusses price sensitivity research methodologies, noting that PMI establishes a lower boundary. It highlights evolving technology and consumer motivations affecting distribution curves, mentions the Van Westerndorp Prince Sensitivity Meter as one tool among many, and emphasizes CLEAResult's recommendation to conduct such research where appropriate, particularly for high-incentive measures.

TECHNOLOGY RESEARCH Technology research can provide both the basis for the value of the incentive investment through understanding the energy savings and it can provide insight into how often the incentive should be reviewed. It is very im...

AI summary Technology research is critical for evaluating energy efficiency incentives by analyzing parameters like technology penetration, costs, and savings. Parameters include technology details, market forecasts, and financial metrics. High efficient technology penetration (>50%) may warrant reducing incentives. The TRM process and Program Evaluations enable annual updates to these parameters.

SUPPLY CHAIN AND SERVICE PROVIDER RESEARCH The supply chain and service providers should be engaged to support the customer and technology research efforts. It may be difficult to directly contact customers and technology manufacturers to...

AI summary The document emphasizes engaging supply chain and service providers to support customer and technology research, as direct contact with customers and manufacturers may be challenging. Supply chain involvement can provide insights into customer motivations, price elasticity, and technology parameters, as well as reference data for incentive analyses. Regular interactions with supply chain stakeholders are highlighted as critical for program design, incentive setting, and overcoming administrative barriers.

Substantiation for Upper Limits The values for the upper limits have been recommended from the jurisdictional studies and CLEAResult's experience from program design and incentive setting activities. The concept of setting Upper Limits for...

AI summary The document outlines recommended upper limits for energy efficiency incentives, suggesting 50% for small purchases and 70-100% for small business programs. These recommendations are based on jurisdictional studies and CLEAResult's experience, with EfficiencyOne tasked with future adjustments as market conditions evolve.

JURISDICTIONAL BENCHMARKING Jurisdictional benchmarking is not essential for existing incentives. The current program performance, historical experience and recommended research should provide a comprehensive analysis for incentive setting...

AI summary Jurisdictional benchmarking is not essential for existing incentives due to sufficient program performance data but recommended for new incentives lacking historical data. Periodic checks with other jurisdictions are advised as best practice to understand incentive levels and influencing factors like market size and delivery approaches.

Understand Technology Savings, Price and Market Penetration EfficiencyOne currently understands technology savings, price and market penetration through three different avenues: 1. Annual review through program evaluation process; 2. Speci...

AI summary EfficiencyOne collects technology savings, price, and market penetration information through program evaluation, specialized research, and program delivery. It is recommended that EfficiencyOne continue current activities and introduce a formal measures assumption validation process, similar to a TRM, with periodic updates and expert review.

For the Instant Savings Program, CLEAResult has the following recommendations: General Principle Current Activities Recommended Activities Understand Customer Motivation and Barriers for Participation For Instant Savings, EfficiencyOne gai...

AI summary CLEAResult recommends conducting annual price sensitivity research for high-expenditure program measures and continuing annual participant and non-participant surveys to understand customer motivation and barriers for the Instant Savings Program. A semi-annual survey for residential LED technology is also suggested.

Program Evaluation Through the annual program evaluation process, participant surveys are conducted to determine free ridership and spillover savings . For the Custom Program, EfficiencyOne gains an understanding of technology savings, pri...

AI summary The document outlines the program evaluation process for the Custom Program, emphasizing the collection of energy savings and cost data through feasibility studies and project applications. It also highlights the importance of tracking project type data, engaging the supply chain, and setting incentive screening thresholds based on energy savings persistence.

updated, consistent with the recommendations in the General Principles section. Understand Supply Chain and Service Provider Considerations For the Custom Program, EfficiencyOne gains an understanding of the supply chain and service provid...

AI summary EfficiencyOne gains insights into supply chain and service provider considerations through program management and evaluation. Financial impacts are understood via project screening, program management, and evaluation. CLEAResult recommends continuing current activities and expanding cost-effectiveness screening to include the Program Administrator Cost.

and customer program experience. EfficiencyOne also has dedicated Application Coordinators for application support and approval in the program. They work with both the distributors in the midstream program and customers who access the down...

AI summary EfficiencyOne manages the Business Energy Rebates program with dedicated support and application coordinators. Program design was influenced by Efficiency Vermont, and annual evaluations assess free ridership and spillover savings. Recommendations include continuing market research and segmentation analyses to better understand customer motivations and barriers in the commercial and industrial sectors.

Other Considerations for Business Energy Rebates Program From reviewing program operations, the Business Energy Rebates program tracks retail pricing through the application process. This allows program managers to understand if incentive...

AI summary The Business Energy Rebates program monitors retail pricing to set appropriate incentives, relying on Program Administrator Cost (PAC) forecasts and ongoing tracking. Challenges include difficulty in aligning Instant Rebates with local avoided costs due to limited customer data.

Understand Customer Motivation and Barriers for Participation For the Home Energy Assessment Program, EfficiencyOne gains an understanding of customer motivations and barriers through the following activities: 1. Market Research; 2. Ongoin...

AI summary EfficiencyOne aims to understand customer motivations and barriers for participation in the Home Energy Assessment Program through activities such as market research, program management, benchmarking, and evaluation.

Other Considerations for the Home Energy Assessment Program The Home Energy Assessment program recently introduced an updated incentive structure, which featured an increased incentive for the initial audit, and premiums associated with bu...

AI summary The Home Energy Assessment Program introduced updated incentives, including increased initial audit incentives and bundled incentives to boost participation. Early data from CLEAResult suggests higher savings per home and lower delivery costs, though isolating bundling's impact is challenging. Bundling is framed as a cost-effective strategy for programs with high customer acquisition costs, while personal energy planning services and localized incentive zones are proposed to enhance savings and align with avoided costs.

INSTANT SAVINGS PROGRAM FINANCIAL SIMULATION For the Instant Savings Program, the program financial simulation analysis included the following six steps for each measure: - 1. Identify the current (2015) participation and incentive level;...

AI summary The Instant Savings Program's financial simulation analysis involves six steps: assessing participation levels, market penetration, cost-to-customer thresholds, program budget thresholds, cost-effectiveness thresholds, and comparing current incentives to these thresholds. Data for measures was sourced from EfficiencyOne.

ONTARIO - ENERGY EFFICIENCY PROGRAMMING

AI summary The document pertains to Ontario's energy efficiency programming, though no specific content or details are provided in the text. It includes a list of acronyms and entities relevant to energy regulation and efficiency initiatives.

MARKET STRUCTURE OVERVIEW DSM is a core part of the conservation first policy in Ontario as per the 2013 Long-Term Energy Plan. In 2014, the Minister of Energy issued a directive to the Ontario Energy Board (OEB) for the development of a n...

AI summary DSM is integral to Ontario's conservation-first policy, with the OEB developing a 2014 framework to align natural gas DSM with electricity CDM efforts. The framework includes guiding principles for cost-effective programs, utility cost recovery, and long-term energy savings. Utilities submit annual budgets and reports, with mid-term reviews in 2018 and program evaluations starting in 2016.

Figure 23: Union Gas Targets & Performance Metric[s](#page-125-0) 4 Resource Acquisition Scorecard Large Volume Large Volume Large Volume - Revised Large Volume Overhead - Revised Evaluation - Revised Administrative costs - Revised Large V...

AI summary The text presents a table with various cost categories and amounts associated with Union Gas's Resource Acquisition Scorecard, including items like administrative costs, evaluation costs, and program budgets. These figures are presented across different sections and years, highlighting financial allocations for market transformation, energy efficiency, and program administration.

Avoided Supply Cost (Benefits) Given the differences between Union Gas' and Enbridge's geography, system and customers and such, it is expected the avoided supply cost will be different between the two gas utilities. Under the TRC-plus tes...

AI summary Avoided supply costs differ between Union Gas and Enbridge due to geographic and operational differences. The TRC-plus test includes avoided natural gas costs, transmission/distribution costs, and a 15% non-energy benefit adder for environmental, economic, and social benefits.

INCENTIVE RATE SETTING Union Gas is responsible for setting incentive levels for their programs. Periodic reviews of the appropriateness of incentive levels is conducted and adjustments to financial incentives are made. Below is an overvie...

AI summary Union Gas is responsible for setting and periodically reviewing incentive levels for their programs, adjusting financial incentives as needed for new measures or significant changes to existing ones.

EXISTING MAIN PROGRAMS – UNION GAS [4](#page-125-1) Program Area Program Name Description Incentives Links Strategic Energy Management Large Volume The Strategic Energy Management is a long-term and deep savings initiative for large custom...

AI summary The Strategic Energy Management program is a long-term initiative aimed at large customers, focusing on continuous energy efficiency improvements through tracking energy use against baseline performance. Incentives are provided to support initial start-up costs and measured energy efficiency improvements over a 5-year period.

INCENTIVE LEVEL-SETTING METHODOLOGY The following is a rough sketch of what we have seen in other territories. BC Hydro is responsible for setting incentive levels for their programs and introducing new measures and programs. This is perfo...

AI summary BC Hydro sets incentive levels through business cases for programs, reviewed every 2-3 years. The process involves evaluating new measures or significant changes to existing ones, with a focus on structured program management.

1. Benchmarking BC Hydro reviews other jurisdictions and evaluates their measures and incentives relative to what is offered in other territories. Other factors such as Incremental Equipment Costs are investigated. Benchmarking is usually...

AI summary BC Hydro evaluates measures and incentives from other jurisdictions, considering factors like Incremental Equipment Costs. Benchmarking involves direct contact with utilities to compare programs and their offerings across territories.

2. Market Research Market research depends on the sector/incentive. It can either be achieved by broad primary research or by one-onone consultations for larger customers. The objective is to determine awareness, barriers and purchase deci...

AI summary Market research methods vary by sector and incentive, utilizing broad primary research or targeted one-on-one consultations for larger customers. The goal is to assess awareness, barriers, and purchasing decisions related to energy efficiency programs.

Savings PG&E's programs have proven very successful at reducing energy consumption and incentivizing energy efficient behaviours and investment decisions. In the 2013-2015 period, PG&E managed to achieve between 110-143 percent of annual g...

AI summary PG&E exceeded energy and demand savings goals (110-143% gross energy, 130-164% demand) from 2013-2015 through programs, excluding codes & standards. Achievements highlight program effectiveness in reducing consumption and incentivizing efficiency.

2. Work Paper Once measure level data is acquired from the market, the Products organization will engage its engineering staff to produce a Work Paper. The Work Papers, similar to TRMs found in other jurisdictions, are documents which deta...

AI summary The Work Paper process involves engineering staff calculating measure savings using EM&V protocols and measure costs, approved by the Commission. Incentive rates are determined by PAs and reviewed by CPUC. PG&E incentivizes 75-100% of incremental costs, with different methods for 'Replace on Burnout' and Retrofit/Direct Install measures.

Portfolio vs. Measure Level Cost Effectiveness As mentioned above, cost effectiveness is calculated at both the measure and program levels. It is important to note that there are fundamental differences in what costs are included when test...

AI summary The text explains that measure-level cost effectiveness excludes administration and delivery costs, while program-level testing includes them. The Energy Trust conducts both approaches, requiring programs to achieve a benefit-cost ratio greater than 1 for UCT and TRC tests to ensure total benefits exceed costs.

Idea Generation & Vetting - •Identify new measure from multiple souces - •Determine if measure addresses the appropriate considerations\ \ - •Determine if measure is to be pursued/updated or "parked" for the future

AI summary The process involves identifying new measures from multiple sources, evaluating their alignment with key considerations, and deciding whether to pursue, update, or defer measures for future action.

Preliminary Measure Development - •Collection and analysis of preliminary measure information - •Internal Program Lead creates plan to develop measure - •Identify if any other program may use measure and identify potential crossprogram iss...

AI summary The preliminary measure development process involves collecting and analyzing measure information, creating development plans, checking program criteria, and promoting viable measures to detailed development stages. Cross-program issues and engineering checks are also evaluated.

Detailed Measure Development - •Identify technical guidelines and data, identify any data gaps and create research plan for gaps - •Stakeholder outreach - •Facilitation of crossprogram coordination - •Cost Effectiveness testing - •Draft Me...

AI summary The process for developing detailed measures includes identifying technical guidelines, addressing data gaps, stakeholder outreach, cross-program coordination, cost-effectiveness testing, and drafting a Measure Approval Document (MAD). Measures with sufficient data and stakeholder support are promoted for approval, while those with insufficient data may be piloted.

Considerations for Vetting Ideas, Measures and Measure Updates Below are the considerations taken by the Energy Trust and its program delivery agents when introducing a new measure into its program portfolio or updating a measure's metrics...

AI summary The Energy Trust evaluates new measures or updates based on savings potential, budget impact, strategic alignment, stakeholder interest, risk analysis, market availability, acceptance, timing, and prior experience. These considerations guide program portfolio decisions.

Incentive Setting Considerations When setting a measure incentive the following components are some of the key considerations taken by the Energy Trust and their program delivery agents: - Relationship of incentive to measure incremental c...

AI summary The Energy Trust considers factors like incremental costs, market impact, and portfolio budget when setting incentives. Incentives are guided by LUEC thresholds (3-3.5 cents/kWh for electricity, 50 cents/therm for gas) and annual performance targets set by Oregon's Commission. The process is deemed 'more art than science,' requiring regular updates. Financial standards mandate 8% of the budget for administration.

INCENTIVE RATE SETTIN[G](#page-166-1) 2 The incentive setting process involves collaborative discussions between the utilities, NYSERDA and other interested stakeholders. The goal is to achieve statewide uniformity in terms of qualifying t...

AI summary The incentive rate setting process involves collaboration between utilities, NYSERDA, and stakeholders to achieve statewide uniformity in qualifying technologies and incentives while tailoring program designs to individual utility customers.

VERMONT ENERGY EFFICIENCY PROGRAM INCENTIVE AND COST EFFECTIVENESS POLICY Vermont is viewed as one of the leading jurisdictions for promoting conservation in North America. Vermont Energy Investment Corporation (VEIC) has won multiple awar...

AI summary Vermont's energy efficiency programs are managed by Efficiency Vermont, which operates under budgets and targets negotiated with the PSB. These targets aim for 'all reasonably available, cost effective energy efficiency' and are set in three-year cycles. The 2015-2017 cycle had a savings target of 321,800 MWh and a total resource benefits target of $336.3 million, with funding contingent on performance verified through an EM&V process.

INCENTIVE LEVEL SETTING METHODOLOGY Efficiency Vermont developed a new product development process about a year and a half ago. It involves a customer mapping and an engagement process that covers seven stages: - 1. Idea Solicitation - 2....

AI summary Efficiency Vermont outlines a nine-stage product development process for new incentive programs, emphasizing data tracking, societal cost testing, and regular energy savings reviews. Incentives are adjusted based on customer behavior rather than cost effectiveness, with free-ridership assessments and annual market research informing updates.

PORTFOLIO MATURITY AND HISTORICAL PERFORMANCE DSM programs were administered by electric utilities before 2002. Efficiency Maine was then established in 2002 to promote electricity efficiency, reduce energy costs and improve the environmen...

AI summary Efficiency Maine, established in 2002 under the Maine Public Utilities Commission (MPUC), transitioned to an independent Trust by 2009. From 2004-2010, its DSM programs achieved 486,342 annual and 4,646,248 lifetime MWh savings, a 2.92 benefit-to-cost ratio, and 3.6 cents/kWh cost.

ion and innovation, achieving the full potential of the Green Communities Act, and generating significant and sustainable benefits for all Massachusetts' citizens. The EEAC's responsibilities include: - Collaborating with the utilities on...

AI summary The Energy Efficiency Advisory Committee (EEAC) oversees energy efficiency plans, reporting, and evaluation processes in Massachusetts. It collaborates with utilities like National Grid, Eversource Energy, and Cape Light Compact, which operate under Mass Save. The EEAC manages annual EM&V studies and publishes progress reports. National Grid's service territory is illustrated in a map.

Cost Effectiveness Testing As per the 2016-2018 plan, there are three key elements to cost effectiveness: - 1. Each program is supposed to be screened for cost effectiveness. For Massachusetts, the TRC test is used for screening. There is...

AI summary The 2016-2018 plan outlines three cost effectiveness criteria: screening programs using the TRC test, minimizing program administration costs, and employing competitive procurement. Massachusetts uses the TRC test for screening, while administration costs and procurement methods are emphasized for efficiency.

Inputs - Avoided Supply Costs (energy and capacity); - Local Avoided Supply Costs (energy and capacity); - Fixed Program Administration Costs; - Year of Implementation; - Measure Participation; - Variable Costs; - Annual Operating Costs (F...

AI summary The document outlines key inputs for evaluating energy efficiency programs, including avoided supply costs, program administration expenses, measure participation rates, energy savings persistence, and financial factors like discount and inflation rates. These parameters inform cost-benefit analyses and program effectiveness assessments.

Outputs - Total Gross Energy Savings; - Total Gross Demand Reduction; - Total Net Energy Savings; - Total Net Demand Reduction; - TRC Benefits; - TRC Costs; - TRC Net Benefits; - TRC Ratio; - PAC Benefits; - PAC Costs; - PAC Net Benefits;...

AI summary The document outlines key outputs from a regulatory proceeding, including energy and demand savings metrics, TRC (Total Resource Cost) and PAC (Program Administrator Cost) analyses, and cost ratios. These outputs evaluate the financial and operational impacts of energy efficiency initiatives.

- 2 c) Develop a consolidated calculator that can conduct the 3 analysis that supports the incentive-level setting process. 4 The calculator should have the following functionality: - 6 i. Capture and store measure-level information obtain...

AI summary The text discusses the development of a consolidated calculator to support the incentive-level setting process, including functionality to capture measure-level information, perform cost-effectiveness screening, and integrate a review protocol. It also calls for a program financial simulation of current incentives to evaluate their levels.

1 4. ONGOING REPORTING ON IMPLEMENTATION PROGRESS - 2 EfficiencyOne is committed to keeping the Board and stakeholders informed of 3 ongoing progress on the implementation of CLEAResult's recommendations. 4 To this end, EfficiencyOne propo...

AI summary EfficiencyOne proposes quarterly, annual, and external evaluation reporting mechanisms to update the Board and stakeholders on implementing CLEAResult's recommendations, starting with the 2016 Q3 Report and continuing until full implementation.

plate and an Excel-based tool) that prescribes both frequency and methodology of updates. The scope of the project focused on financial incentives, though the other types of incentives were discussed. The jurisdictional research involved p...

AI summary The project focused on financial incentives for demand-side management, involving research across jurisdictions. ENS's performance was comparable to other regions, though minimal formalized incentive design documentation exists. Principles were identified through interviews and CLEAResult's experience, despite lacking consolidated resources.

Jurisdictional Scans CLEAResult undertook jurisdictional scans of various provincial and state utilities and energy efficiency agencies to: - 1) identify the incentive level setting methodologies and best practices in other jurisdictions;...

AI summary CLEAResult conducted jurisdictional scans to identify incentive level methodologies and best practices in energy efficiency programs, focusing on geographical similarity, portfolio maturity, and ACEEE recognition. The study used primary and secondary research to compare Nova Scotia's programs with others, resulting in benchmarking metrics for ENS's incentives.

Review of Efficiency Nova Scotia's Historical Performance A review of ENS's historical program performance was undertaken to determine the success of the current programs in market. To obtain detailed information on select programs and the...

AI summary A review of Efficiency Nova Scotia's (ENS) historical program performance was conducted to assess program success. Methods included interviews with program managers, analysis of program manuals, and evaluation reports to examine operations, maturity, success factors, and potential modifications.

Incentive Setting for Energy Efficiency Programs Energy conservation programs feature different types of incentives to attract participation. The underlying theory behind the design of energy conservation programs is that some energy effic...

AI summary Energy conservation programs use financial, convenience, and educational/technical assistance incentives to overcome barriers like cost, time, and lack of knowledge. Financial incentives are emphasized as a key component in jurisdictions studied to encourage energy-efficient choices for residential and business customers.

Customer Research A critical component of determining participant perceived value is actually asking potential customers what they would pay for a product or service, and what their price points are for difficult technology options. Additi...

AI summary Customer research is essential to determine perceived value and barriers to adopting energy-efficient technologies like CFLs and LED lamps. Financial incentives alone may not address non-financial barriers (e.g., light quality, mercury concerns). Upfront costs remain a hurdle for LED lamps despite popularity. The principal-agent problem in rental units highlights conflicting motivations between tenants and landlords regarding energy upgrades and incentives.

Program Evaluation Review and Historical Experience The final consideration in determining participant perceived value is reviewing previous evaluation reports and accounting for historical experience. Program evaluations typically include...

AI summary The text emphasizes using historical program evaluation data to assess participant perceived value, including barriers, customer insights, and quantitative metrics like participation rates and savings. Historical experience informs incentive adjustments, as illustrated by an example where excessive LED lamp uptake prompted a reduction in incentive rates.

Table 4: Cost Effectiveness Tests and Relationship to Incentive Setting from a Return on Investment Perspective Cost Effectiveness Test General Description and Features Implication for Incentive Setting The TRC is an evaluation of the tota...

AI summary This table outlines the Total Resource Cost (TRC) method for evaluating cost-effectiveness in programs, considering both utility and participant benefits and costs. It explains that TRC does not directly include incentives but accounts for them as a subset of participant costs, provided the incentive is less than the participant cost. Program administration costs are also considered separately.

Budget Impact Program administrators are not only affected by cost effectiveness concerns when determining their return on investment. From CLEAResult's experience, in several jurisdictions, the program budget is usually the limiting facto...

AI summary The text emphasizes that program budgets, not cost-effectiveness, often limit energy efficiency programs. While incentives may be cost-effective, they must align with budget constraints. Budget impact analysis should consider per-unit savings, per-participant costs, and total program budgets. Return on investment criteria set incentive ceilings, but actual incentives are often lower due to participant value perceptions.

Application of Thresholds Incentives can exceed all three of these thresholds (and often do), but they provide a reference point that can be used during the design process. The thresholds are independent of one another. They can all contri...

AI summary The text explains that incentives can exceed three independent thresholds, which serve as reference points for determining maximum eligible incentives during program design. Each threshold can be the lowest or highest for a specific measure.

The Role of Financing If upfront costs are an issue, but not monthly or annual cash flows, the provision of low-interest or zero-interest financing may be valued by customers, either as a stand-alone incentive, or in combination with an up...

AI summary Low-interest or zero-interest financing may help customers with upfront costs in energy efficiency projects, especially when PC test ratios exceed 1.0 and payback targets are met. CLEAResult notes customers prefer upfront incentives over financing if mutually exclusive. NPV of financing costs should be included in program budget and PAC analyses.

SUMMARY OF INFLUENCES ON INCENTIVE RATES The different components involved in incentive setting are listed below in Table 6. The table lists how a change in each component can influence measure level incentives. This highlights the multipl...

AI summary The document outlines components affecting incentive rates, noting that factors can exert upward or downward pressure on measures. Program administrators must consider multiple variables, with feedback emphasizing the complexity of setting incentives as both art and science.

Incentive Setting Component Factors that can Place Upwards Pressure on Incentive Rates Factors that can Place Downwards Pressure on Incentive Rates Budget Impact • Reduction in administration costs, leaving additional space in the budget....

AI summary The table outlines factors influencing incentive rates in programs, including budget impact, customer and technology research, supply chain discussions, benchmarking, program evaluation, financing, and education. Upward and downward pressures on incentives are identified based on various considerations such as cost changes, customer participation, and market conditions.

INCENTIVE RATE REVIEW PROTOCOL After determining incentive values by analyzing the considerations that determine the two influences (perceived value, return on investment) of incentive setting, the final requirement is to establish and fol...

AI summary The document outlines a periodic review protocol for incentive rates in energy efficiency programs, emphasizing the need for regular assessments based on market dynamics, stakeholder engagement, and technology evolution. Reviews should occur annually or biennially, with more frequent checks for rapidly changing technologies. Factors like customer pricing, technology penetration, and financial impacts are central to the evaluation process.

FINDINGS AND IDENTIFIED BEST PRACTICES Our jurisdictional research has shown that the majority of jurisdictions employ similar methodologies and approaches to setting incentives. All of the jurisdictions have broad program design, TRM and/...

AI summary The document outlines findings and best practices for setting energy efficiency incentives, noting that most jurisdictions use similar methodologies. While there is no single consolidated process, general frameworks and best practices are identified, with a focus on detailed nuances rather than high-level steps already performed by EfficiencyOne.

Figure 7: Identified Incentive Setting Best Practices Methodology Research and Engagement Phase To de ine he im f t he te t t o rm p ac m ea su re he l s ing d bu dg it t to ta ta t a t, on av s rg e n e is it ica l to ic ip ion te t t cr...

AI summary This figure outlines a methodology for identifying best practices in incentive setting, focusing on the research and engagement phase, including the development of programs, stakeholder input, and the creation of a framework for implementation.

OTHER CONSIDERATIONS Through the most recent program evaluation process, ENS has identified that some educational initiatives are incurring savings attribution issues, and have received tentative disallowance. This specifically was the cas...

AI summary ENS faces savings attribution issues in educational initiatives like HER, leading to tentative disallowance. Shifting to educational incentives may be challenging. ENS uses average wattage instead of dual baselines for energy savings, which may hinder lifetime savings tracking.

Current Programs Mass Market programs (programs that do not target individual customers specifically) cover all types of program scenarios. For example, a retail program can cover all four of these scenarios (New Purchase/Installation, Rep...

AI summary Mass Market programs in Nova Scotia cover multiple customer scenarios without targeting individuals. Examples include New Purchase/Installation and Replacement scenarios. CLEAResult and EfficiencyOne outlined these scenarios in Table 15, which is referenced in the document.

Incentive Setting Methodology Analysis and Recommendations CLEAResult's analysis and recommendations for incentive level setting methodology will focus on the following areas: - 1. General Principles; - 2. Formal and Documented Incentive S...

AI summary CLEAResult's analysis outlines incentive-setting methodology for Nova Scotia's energy programs, focusing on general principles, formal processes, program-specific recommendations (Instant Savings, Custom, Business Energy Rebates, Home Energy Assessment), a complementary Excel tool, and financial simulations for Instant Savings and Custom programs.

CUSTOMER MOTIVATIONS AND BARRIERS As discussed, understanding customer motivations and barriers to participation are important. A key component of the customer research is understanding how customers view costs associated with the efficien...

AI summary The document emphasizes the importance of understanding customer motivations and barriers through research methods like price sensitivity and conjoint analysis. These methods help design incentives and programs, with a recommendation to use them only for high-value expenditures exceeding $400,000 annually, based on Efficiency Nova Scotia's evaluations.

SUPPLY CHAIN AND SERVICE PROVIDER RESEARCH The supply chain and service providers should be engaged to support the customer and technology research efforts. It may be difficult to directly contact customers and technology manufacturers to...

AI summary The document emphasizes the importance of engaging supply chain and service providers in customer and technology research, highlighting their role in facilitating access to contacts, providing data for incentive analysis, and identifying program barriers. Regular interactions with these entities are recommended to enhance program design and management.

Substantiation for Upper Limits The values for the upper limits have been recommended from the jurisdictional studies and CLEAResult's experience from program design and incentive setting activities. The concept of setting Upper Limits for...

AI summary The document outlines CLEAResult's recommendations for setting upper limits on incentive levels, citing jurisdictional studies and industry trends. It suggests 50% for small purchases and 70-100% for cost-sharing programs, noting the need for annual reviews. EfficiencyOne is tasked with ensuring these limits remain effective as market conditions evolve.

JURISDICTIONAL BENCHMARKING Jurisdictional benchmarking is not essential for existing incentives. The current program performance, historical experience and recommended research should provide a comprehensive analysis for incentive setting...

AI summary Jurisdictional benchmarking is not essential for existing incentives due to current program performance and historical data. For new incentives, it is recommended to compare with other jurisdictions, considering factors like market size and delivery approaches.

su p p or s p rog ra m. res ea rc co n e v he inc ive ha l d ire ic ip in he f fe t t t t c to to t te t en us me rs wo req p ar a o r. u u An l ly, hro h he lua ion ic ip d ic ip t t t t t t t nu a ug p rog ra m ev a p roc es s, p ar an a...

AI summary The text discusses the Instant Savings Program and CLEAResult's recommendations, including the need for program measures, surveying participants, and addressing barriers to program implementation. It also mentions the importance of surveying participants to ensure the program's effectiveness and affordability.

Program Evaluation Through the annual program evaluation process, participant surveys are conducted to determine free ridership and spillover savings. For the Custom Program, EfficiencyOne gains an understanding of technology savings, pric...

AI summary The document discusses the program evaluation process, emphasizing the collection of energy savings and cost data through feasibility studies and project applications. It also outlines the need for tracking project type data, engaging the supply chain, and setting incentive screening thresholds based on energy savings persistence.

Principles section. Understand Supply Chain and Service Provider Considerations For the Custom Program, EfficiencyOne gains an understanding of the supply chain and service provider considerations through: 1. Ongoing Program Management and...

AI summary The document discusses how EfficiencyOne understands supply chain and service provider considerations through program management and evaluation, and how it gains insight into financial impacts through project screening and evaluation. It recommends continuing current activities and expanding to include the PAC.

Su C Un de d ly ha in ta rs n p p d Se ice Pr i de an rv ov r Co i de ion t ns ra s Fo he Bu ine En Re ba E f f ic ien On ins de d ing f r t tes ta s ss er g y p rog ra m, cy e g a a n un rs n o he ly ha in d s ice i de i de ion hro h: t t...

AI summary CLEAResult provides recommendations for the Business Energy Rebates program, focusing on program management, evaluation, and alignment with broader initiatives like the Business Development Management program and the Efficiency Nova Scotia initiative.

Other Considerations for Business Energy Rebates Program From reviewing program operations, the Business Energy Rebates program tracks retail pricing through the application process. This allows program managers to understand if incentive...

AI summary The Business Energy Rebates program monitors retail pricing to set appropriate incentive levels using the Participant Cost (PAC) threshold. It assumes high PAC won't breach cost-effectiveness thresholds if tracked properly. Challenges include limited data for Instant Rebates and difficulty aligning with local avoided costs.

r>ac n er es e nc an ex am p o co n o a na s w re re ne o lua d de ine he ir in d iv i du l c i bu ion lue fo he te to te t tr t to r t to p rog ra m we re ev a rm a on va cu s me r. E f f ic ien On du d de h ic h t de d he ha is ics f t h...

AI summary CLEAResult provides recommendations for the Home Energy Assessment program, focusing on efficiency, program management, and participant cost considerations. The text emphasizes the need for improved program structure, stakeholder engagement, and cost-effective implementation strategies.

Other Considerations for the Home Energy Assessment Program The Home Energy Assessment program recently introduced an updated incentive structure, which featured an increased incentive for the initial audit, and premiums associated with bu...

AI summary The Home Energy Assessment Program introduced updated incentives, including increased audit incentives and bundled incentives to encourage larger projects. Early data suggests higher savings per home and lower delivery costs, though bundling's impact is hard to isolate due to concurrent changes. Bundling is seen as effective for customer acquisition, and personal energy planning services have enhanced savings. Zone-based incentive adjustments may align with local avoided costs.

Each measure in the Instant Savings program has its associated program budget incentive level threshold listed below. Measure Current Incentive ($) Per Unit Net Energy Savings (kWh) Program Budget Incentive Level Threshold at 30% Program A...

AI summary The Instant Savings program outlines various energy efficiency measures with their corresponding incentive levels, energy savings, and program budget thresholds. The table compares current incentives with budget thresholds at different administration expenditure levels.

CUSTOM PROGRAM FINANCIAL SIMULATION For the Custom Program Retrofit track, the program financial simulation analysis included the following steps: - 1. Identify the average project parameters for the analysis; - 2. Determine an appropriate...

AI summary The financial simulation for the Custom Program Retrofit track involves five steps: identifying project parameters, setting incentive thresholds, and comparing current incentives to these thresholds to determine if adjustments are needed.

ONTARIO CORE PROGRAM OFFERINGS (RESIDENTIAL AND BUSINESS) Currently, the conservation programs in Ontario cover the residential, low income, small business, commercial and industrial, and large industrial sectors. The programs cover financ...

AI summary Ontario's conservation programs cover residential, low-income, small business, commercial, and industrial sectors, offering incentives, coaching, and training. Five years of evaluations have raised efficiency baselines, with T8 lamps now standard. A new pay-for-performance framework for LDC funding of conservation programs is a North American first.

MARKET STRUCTURE OVERVIEW DSM is a core part of the conservation first policy in Ontario as per the 2013 Long-Term Energy Plan. In 2014, the Minister of Energy issued a directive to the Ontario Energy Board (OEB) for the development of a n...

AI summary The document outlines Ontario's DSM framework, developed by the OEB in 2014 under the 2013 Long-Term Energy Plan. It emphasizes cost-effective DSM aligned with electricity CDM, guiding principles for utilities, and evaluation processes. Utilities submit proposals for OEB approval, with mid-term reviews and annual reporting requirements.

Cost Effectiveness Requirements The gas utilities' overall DSM goals are to achieve all the cost-effective DSM available in its market. The OEB determined that cost effectiveness should be based on the Total Resource Cost-plus (TRC-plus) t...

AI summary Nova Scotia gas utilities must achieve all cost-effective Demand Side Management (DSM) programs. The Ontario Energy Board (OEB) mandates the Total Resource Cost-plus (TRC-plus) test for screening, with a 0.7 threshold for low-income programs and 1.0 for Resource Acquisition programs. Market transformation programs are exempt from cost-effectiveness testing.

S ic tra te g En er g y M t an ag em en S T he ic En M is tra te t g er g y an ag em en a lon d de ing in i ia ive fo te t t g- rm a n ep s av s r lar T he 's to to g e cu s m er s. c us m er en er g y i l l be ke d d d ins tra t w c an m...

AI summary The text discusses existing main programs related to energy strategy and management, focusing on initiatives for customer energy efficiency, performance measurement, and incentives for energy conservation. It outlines the roles of various entities and mentions evaluation processes and technical references.

1. Benchmarking BC Hydro reviews other jurisdictions and evaluates their measures and incentives relative to what is offered in other territories. Other factors such as Incremental Equipment Costs are investigated. Benchmarking is usually...

AI summary BC Hydro evaluates other jurisdictions' measures and incentives, considering Incremental Equipment Costs, through direct contact with utilities for benchmarking.

2. Market Research Market research depends on the sector/incentive. It can either be achieved by broad primary research or by one-onone consultations for larger customers. The objective is to determine awareness, barriers and purchase deci...

AI summary Market research methods vary by sector and incentive, utilizing broad primary research or targeted one-on-one consultations for larger customers to assess awareness, barriers, and purchase decisions.

3. Technical Reference Manuals The engineering team, M&V team, program managers, evaluation group and other in-house BC Hydro resources approve/deny measures for TRMs which are used for savings and assumptions. They enable BC Hydro to incl...

AI summary BC Hydro's engineering and M&V teams, along with program managers and evaluation groups, approve/deny measures for Technical Reference Manuals (TRMs). TRMs are used to include solutions in programs and require governance reviews for proposed incentives.

5. Incentive Rate Finalized Once the incremental measure cost is finalized, BC Hydro will set a standard incentive using the above considerations. Other considerations include: - Interaction with conservation rates - Interaction with codes...

AI summary BC Hydro finalizes incentive rates considering interactions with conservation rates, codes/standards, and factors like free-ridership and spillover effects. The text notes that no free ridership might indicate an incentive rate that is too low.

COST EFFECTIVENESS REQUIREMENTS Total Resource Cost (TRC) is used by BC Hydro and the BCUC at the program level to evaluate performance. Programs must have a TRC of 1.0 or greater. There is an expectation of low-income programs. Internally...

AI summary BC Hydro and BCUC require programs to have a Total Resource Cost (TRC) of 1.0 or higher for evaluation. Low-income program expectations and internal cost-effectiveness tests like utility cost and ratepayer impact measures are also applied.

BACKGROUND Efficiency Nova Scotia has contracted CLEAResult to conduct energy conservation and energy efficiency program incentive research. The project covers the following areas: - Identification of best practices for incentive rate sett...

AI summary Efficiency Nova Scotia has engaged CLEAResult to research best practices for setting energy program incentives, aiming to optimize conservation and efficiency programs. The project includes interviews with jurisdictions and a public submission to the Nova Scotia Utility and Review Board (UARB).

Savings PG&E's programs have proven very successful at reducing energy consumption and incentivizing energy efficient behaviours and investment decisions. In the 2013-2015 period, PG&E managed to achieve between 110-143 percent of annual g...

AI summary PG&E's energy efficiency programs (2013-2015) exceeded energy savings goals by 110-143% and demand goals by 130-164%. Success attributed to incentivizing energy-efficient behaviors and investments. Data sources include PG&E reports and CPUC's database.

History In 1999, Oregon lawmakers and citizens envisioned a future with Oregon homes and businesses powered by clean, affordable energy. They established stable, consistent funding to help Oregonians invest in energy efficiency and renewab...

AI summary In 1999, Oregon lawmakers and citizens established Energy Trust of Oregon to promote clean, affordable energy through energy efficiency and renewable resources. Launched in 2002 by the Oregon Public Utilities Commission, the Trust focuses on cost-effective programs, renewable energy support, low administrative costs, and customer satisfaction, benefiting customers of four utilities across two states.

Energy Trust of Oregon Funding Through state legislation, tariffs and other requirements, Energy Trust is funded by customers of Portland General Electric, Pacific Power, NW Natural and Cascade Natural Gas. Customers of all four utilities...

AI summary Energy Trust of Oregon is funded by customer charges from PGE, Pacific Power, NW Natural, and Cascade Natural Gas, with legislation like SB 838 expanding funding for energy efficiency. Post-2008, savings doubled due to legislative changes and program expansion, increasing expenditures from $63M in 2008 to $117M in 2013.

2013 2014 2015 2016 Incentive Costs $85,792,815 $87,475,385 $81,650,474 $90,618,627 Administration $68,482,871 $71,734,454 $72,025,504 $77,017,143 Incentive-to Administration Ratio 56:44 55:45 53:47 65:35 2015-2019 STRATEGIC PLAN 13

AI summary The table presents incentive costs and administration costs from 2013 to 2016, along with the incentive-to-administration ratio. The Strategic Plan for 2015-2019 is mentioned as a reference.

Portfolio vs. Measure Level Cost Effectiveness As mentioned above, cost effectiveness is calculated at both the measure and program levels. It is important to note that there are fundamental differences in what costs are included when test...

AI summary The document explains that cost effectiveness is evaluated at both measure and program levels. Measure-level testing excludes administration and delivery costs, while program-level testing includes them. The Energy Trust requires programs to achieve a benefit-cost ratio greater than 1 for UCT and TRC tests.

MEASURE DEVELOPMENT & INCENTIVE SETTING PROCESS The Energy Trust has created a standardized, four step process (see Appendix A for flow chart) by which to introduce new measures to their product portfolio and set their maximum eligible inc...

AI summary The Energy Trust has established a four-step standardized process for introducing new measures and setting maximum eligible incentives. This process allows the Energy Trust and its program delivery agents to determine incentives up to the maximum level while balancing delivery and administration expenses to meet their goals. The flow chart is detailed in Appendix A.

Idea Generation & Vetting - •Identify new measure from multiple souces - •Determine if measure addresses the appropriate considerations\ \ - •Determine if measure is to be pursued/updated or "parked" for the future

AI summary The process involves identifying new measures from multiple sources, assessing their relevance to key considerations, and determining whether to pursue, update, or defer them for future action. The focus is on systematic evaluation and prioritization of initiatives.

Idea Generation & Vetting - •Identify new measure from multiple souces - •Determine if measure addresses the appropriate considerations\ \ - •Determine if measure is to be pursued/updated or "parked" for the future

AI summary The process involves identifying new measures from multiple sources, assessing their alignment with relevant considerations, and determining whether to pursue, update, or defer the measure for future action.

Detailed Measure Development - •Identify technical guidelines and data, identify any data gaps and create research plan for gaps - •Stakeholder outreach - •Facilitation of crossprogram coordination - •Cost Effectiveness testing - •Draft Me...

AI summary The process outlines steps for developing energy efficiency measures, including identifying technical guidelines, stakeholder outreach, cross-program coordination, cost-effectiveness testing, and drafting a Measure Approval Document (MAD). Measures with sufficient data and stakeholder support are promoted for approval, while those with data gaps may be piloted.

Considerations for vetting ideas, measuresVetting Ideas, Measures and measure updatesMeasure Updates Below are the considerations taken by the Energy Trust and its program delivery agents when introducing a new measure into its program por...

AI summary The Energy Trust evaluates new measures or updates using criteria including savings potential, budget impact, alignment with long-term strategy, stakeholder interest, risk analysis, market factors, and prior experience. These considerations guide program portfolio decisions.

Incentive Setting Considerations When setting a measure incentive the following components are some of the key considerations taken by the Energy Trust and their program delivery agents: - Relationship of incentive to measure Incremental E...

AI summary The document outlines key considerations for setting energy efficiency measure incentives, emphasizing incremental costs, market impact, portfolio cost-effectiveness, and adherence to LUEC guidelines (3-3.5 cents/kWh for electricity, 50 cents/therm for gas). It highlights the Energy Trust's performance measures, including 85% savings goals and 8% budget allocation for administration. The process is described as 'more of an art than a science,' requiring regular updates as markets evolve.

INCENTIVE RATE SETTING 2 The incentive setting process involves collaborative discussions between the utilities, NYSERDA and other interested stakeholders. The goal is to achieve statewide uniformity in terms of qualifying technology and i...

AI summary The incentive rate setting process involves collaboration between utilities, NYSERDA, and stakeholders to achieve statewide uniformity in qualifying technology and incentive levels, though program designs are tailored to individual utilities' needs.

Efficiency Vermont is not held to a direct cost effectiveness metric, but the plan must meet associated savings, spending and total resource benefit targets. The annual savings verification process captures program to these targets. The la...

AI summary Efficiency Vermont is not required to meet a direct cost effectiveness metric, but must meet savings, spending, and total resource benefit targets. Annual savings verification ensures compliance with these targets, and an independent audit for the 2011-2013 period provided results.

INCENTIVE LEVEL SETTING METHODOLOGY Efficiency Vermont developed a new product development process about a year and a half ago. It involves a customer mapping and an engagement process that covers seven stages: - 1. Idea Solicitation - 2....

AI summary Efficiency Vermont employs a nine-stage product development process for new incentive programs, emphasizing data tracking, cost-effectiveness via the societal test, and regular energy savings evaluations. The process is adapted for existing programs, with expedited changes possible. Incentives are adjusted based on customer behavior, not solely cost-effectiveness, and savings assumptions are reviewed annually or biennially.

MARKET STRUCTURE OVERVIEW The Efficiency Maine Trust Act came in effect in 2009 and is responsible for Efficiency Maine's inception as an independent Trust. Their purpose is to develop, plan, coordinate, and implement energy efficiency/alt...

AI summary The Efficiency Maine Trust Act (2009) established Efficiency Maine as an independent trust to implement energy efficiency programs, aiming for 100% residential weatherization by 2030 and 100 MW peak-load reduction by 2020. The Maine Public Utilities Commission (MPUC) approves triennial plans, which outline cost-effective savings targets and funding from ratepayers and the Forward Capacity Market. Energy efficiency is highlighted as the lowest-cost resource, with average savings costs of 4.3 cents/kWh for electricity and $12.96/MMBtu for heating fuels.

PORTFOLIO MATURITY AND HISTORICAL PERFORMANCE DSM programs were administered by electric utilities before 2002. Efficiency Maine was then established in 2002 to promote electricity efficiency, reduce energy costs and improve the environmen...

AI summary Efficiency Maine, established in 2002, administered energy efficiency programs from 2004-2010, achieving 486,342 MWh annual savings and a 2.92 benefit-to-cost ratio. Initially part of the Maine Public Utilities Commission (MPUC), it became an independent Trust in 2009.

High Level Specifications

AI summary The document outlines high-level specifications for a Nova Scotia regulatory proceeding, listing numerous acronyms related to energy efficiency, utility regulation, and demand-side management. Key entities include regulatory bodies, programs, and technical methodologies relevant to energy policy and resource planning.

1. Measure Library Section (from TRM process recommendation in report) This section should include the details of each measure in the portfolio, or measures being considered. - Efficient Technology Name; - Efficient Technology Description;...

AI summary The Measure Library Section outlines data requirements for evaluating energy efficiency measures, including technology details, costs, savings, and screening thresholds. It emphasizes metrics like TRC (Total Resource Cost), PAC (Participant Cost), and PC test, alongside parameters for forecasting penetration and pricing. The section supports DSM (Demand Side Management) program evaluation and cost-effectiveness analysis.

Inputs - Avoided Supply Costs (energy and capacity); - Local Avoided Supply Costs (energy and capacity); - Fixed Program Administration Costs; - Year of Implementation; - Measure Participation; - Variable Costs; - Annual Operating Costs (F...

AI summary The document outlines key input factors for energy efficiency program analysis, including avoided supply costs, program administration expenses, measure participation rates, energy savings persistence, and incremental equipment costs. These inputs are used for evaluating cost-effectiveness, energy savings, and long-term financial impacts of efficiency measures.

M07544 EfficiencyOne Incentive Setting Methodology (E-ENS-R-16) Further to the Board's letter of April 6, 2017 regarding the EfficiencyOne ("E1") Revised Incentive Setting Methodology report, participant comments were received on April 27,...

AI summary The Nova Scotia Utility and Review Board considers EfficiencyOne's revised Incentive Setting Methodology, addressing stakeholder comments and incorporating amendments. Key developments include a Consolidated Calculator for evaluating incentives, a Technical Reference Manual (TRM), and Synapse's recommendation for TRM review. The Board accepts the methodology and implementation plan, emphasizing their role in funding demand-side management (DSM) programs.