NARUC Joint Panel on Decoupling

July 17, 2007

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Oregon Energy Sources

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1990’s – First System Benefit Charges

• 25 states plus the District of Columbia utilize this similar funding mechanism

• Total energy efficiency spending ranges from $2-240 million/year

• Martin Kushler and Dan York of the American Council for an Energy-Efficient Economy called this movement “perhaps the most significant new policy vehicle for energy efficiency in a decade.”

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A Brief Energy Trust Primer

• Product of 1996 Regional Review and 1999 Oregon Legislation establishing a 3% public purpose charge on two electric investor owned utilities

• A 501(c)(3) nonprofit organization investing ~$48.5M/year to:

– Acquire cost-effective electric efficiency/conservation savings

– Contribute up to 100% of renewable energy project above market costs

• Separate public purpose charge for residential and commercial customer programs for 3 gas utilities = +$10.4M

• ~1.4M Oregon electricity and gas customers with annual savings of 25-28 aMW and 1.2M therms

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What We Offer

• Stable, consistent funding• Comprehensive services • Objective energy information • Technical information and support • Financial incentives

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Energy Trust Mission

To change how Oregonians produce and use energy by investing in efficient technologies and renewable resources that save dollars and protect the

environment.

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Initial 10-Year Strategic Goals

1. Save 300 average megawatts of electricity and 21 million therms of natural gas by 2012

2. Provide 10% of Oregon’s electricity from renewable sources by 2012

3. Expand participation by those previously underserved

4. Support growth of the clean energy industry5. Encourage Oregonians to incorporate energy

efficiency and renewable energy into their daily lives

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Cumulative Accomplishments

• Saved and generated over 1.2 billion kWh of electricity• Saved over 4 million annual therms of natural gas • Generated 16.8 aMW by renewables; +40 aMW online in

‘07• Served 220,000 consumers • Retrofitted 70,000 residences and 4,000 commercial

buildings • Constructed 2,400 Energy Star homes and 440

commercial buildings• Improved efficiency at 570 industrial sites• Installed 1,000 electric and solar water systems • Provided incentives for 95,000 efficient clothes washers  • Sold 530,000 CFL packages

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Organization Structure

Oregon PublicUtility

Commission

RenewableResources

Advisory Council

ConservationAdvisory Council

Energy TrustStaff

EnergyEfficiency

RenewableEnergy

Marketing andCommunications

Planning andEvaluation

Finance andAdministration

Legal andContracts

Policy, Finance,Strategic

Planning, andAudit Committees

Board ofDirectors

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OPUC Oversight Role

• Contracts with Energy Trust• Establishes minimum performance measures• Reviews annual budget, 2-year action plan and 5-

year strategic plan• Requires quarterly and annual reports• Requires management audit every 5 years• Liaison to legislature• Ex officio board role• Participates in advisory councils and board

strategic planning committee • Can issue a “notice of concern”• Authority to terminate contract

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Energy Trust Board Role

• Independent, non-stakeholder board with volunteer membership

– Oregon Department of Energy special advisory seat

• Fulfills fiduciary responsibilities• Establishes policy• Determines strategic direction and goals• Reviews and approves annual budgets and plans• Liaison to advisory councils• Prohibited from lobbying

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Energy Trust Staff Role

• Conducts strategic analyses • Plans for and designs programs • Manages staff and contractors• Supports trade allies • Engages stakeholders• Manages finances and incentive payments• Ensures quality control and quality assurance• Contracts for independent 3-party evaluations• Prohibited from lobbying

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Strength of the Model

• Mission focused and driven• Stable, consistent funding• Comprehensive and integrated services• Program management contractor delivery model• Trade ally leverage• Stakeholder and public involvement • High degree of transparency and accountability • Measurable outcomes• Low administrative costs• Utility collaboration

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Portland General Electric Collaboration• Fall 2006 joint heat

pump campaign• Newspaper and

magazine ad• Bill insert and PGE

newsletter story • Direct mail letters to

electric heat customers

• Heat pump sweepstakes with Carrier

• “Do the math” solar calculator promotion

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Pacific Power Collaboration

• Spring 2007 joint heat pump campaign

• Bill insert to all residential customers

• Pacific Power residential newsletter story

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Cat Heat

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NW Natural Collaboration

• Fall 2006 residential heating/weatherization campaign

• Bill insert to all residential customers

• NW Natural newsletter stories

• 6-week radio campaign

• 6-week TV campaign

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Regional Utility Conservation Acquisitions

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20

40

60

80

100

120

140

160

1978 1982 1986 1990 1994 1998 2002

Conse

rvat

ion A

cquis

itio

ns

(aM

W)

Response to West Coast

Energy CrisisResponse to

NW Recession

Response to “Restructuring

Discussions”

Creating Mr. Toad’s Wild Ride for the PNW’s Energy Efficiency IndustryCreating Mr. Toad’s Wild Ride for the PNW’s Energy Efficiency Industry

Short Term Memory Loss?

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Oregon Renewable Energy Act

• Requires 25 percent of Oregon’s electricity to be produced by renewable energy sources by 2025

• Shifts Energy Trust renewable energy investments to projects 20 MW or less

• Allows utilities to seek Oregon Public Utility Commission approval for additional energy efficiency investment

• Extends the public purpose charge through 2025

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Global Warming “Mainstreamed”

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At Work For Oregon

1-866-ENTRUST

www.energytrust.org