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Residential Retrofit Perspective Pat Stanton, SVP Policy & Advocacy

Conservation Services Group

AESP WebinarScreening Energy Efficiency:

Best Practices

November 8, 2012

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Framework / Evolution

Original Task: • Set priorities for allocation of very limited resources

committed to energy efficiency

Current Tasks: • Identify all cost effective efficiency measures • Promote energy efficiency as “first fuel” • Mitigate risk, hedge against price volatility

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Cost of Getting to the Door

• Current framework in residential sector encourages“low hanging fruit” programs

• Creates lost opportunities• Inefficient use of program overhead:

homeowners not “buying” maximum energy efficiency during their (likely) single event shopping experience

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Discount RateProjected Utility Generation Resources in 2015

Relative Cost and Relative Risk

Source: CERES

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Measure/Program/Portfolio

• Homes: many components – Lighting – Electronics – HVAC – Building shell

• insulation • air sealing• windows

• Measure level application of Cost Effectiveness creates extreme – lost opportunities

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TRC: “Jack of all trades, master of none”

• TRC performed without full consideration of OPIs is internally inconsistent, undervalues EE

• Is it worth the extra costs to do TRC correctly in all cases?

• PAC test requires much less data – a lower cost alternative

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Food for Thought

• Should we use the lower cost PAC test as a screening test? – Any program that passes gets a green light

• Reserve full TRC test, including valuation of OPIs, only for programs with significant non-regulated energy benefits (i.e., low income programs or programs that create significant non-regulated energy savings)

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Thank you!

Pat Stantonpatricia.stanton@csgrp.com508.365.3297 www.csgrp.com