NorthWestern Energy Group, Inc. · NASDAQ:NWE
NorthWestern Energy — Technical Presentation (January 2013)
24 slides from NorthWestern Energy's technical presentation, Jan 24, 2013
Slide 1: Impact and Process Evaluation of NorthWestern Energy 2007-2011 DSM Programs
ENERGY + WATER + EFFICIENCY Impact and Process Evaluation of NorthWestern Energy 2007-2011 Demand Side Management Programs January 24, 2013 Presentation to: NorthWestern Energy Electric Technical Advisory Committee Presented by: Michael Baker, SBW Consulting, Inc. Dr. Marjorie McRae, Research Into A
Slide 2: Research Objectives
Research Objectives a= Impact 4 Gas and electric gross savings C1 Net savings C1 Measure persistence m1 Installation vs. measure rebate date uw Economic Analysis (2 Benefits, costs and cost-effectiveness u Process ti Program planning, design, and management (1 Branding, marketing, outreach, and medi
Slide 3: Evaluation Timing and Scope
sbwl Evaluation Timing and Scope Evaluation work conducted from Jan — Oct 2012 Portfolio of 24 programs (DSM and USB) Evaluation covered all program activity from 7-1-2006 thru 12-31-2011 Standardized program tracking database, covering all programs, all years, >300,000 records u Samples drawn from
Slide 4: Programs Evaluated
24 Programs Evaluated Building Operator Certification DEQ Appliance E+ Audit Home or Business E+ Building Blocks Pilot E+ Business Partners E+ Commercial Existing Electric Rebate E+ Commercial Existing Gas Rebate E+ Commercial Lighting E+ Commercial New Electric Rebate E+ Commercial New Gas Rebate E
Slide 5: Some Have More Than One Component
Sbvw Some Have More Than One Component mu E+ Audit Home or Business a E+ Residential Lighting c Home Electric Survey (1 In-Store Coupon «) Home On-site Audit f Trade Show 1 Small Business Electric & Mail-In Appraisal © Mail-Out a E+ Commercial Lighting O Residential CFL Direct Install 1 Commercial C
Slide 6: NEEA Had Many Plus Power Supply
_NEEA Had Many 80 Plus Power Supply Commercial Commissioning Public Buildings Commercial Verdiem Energy Codes 1997-2004 Energy Codes 1997-2011 Irrigation Soil Moisture Data Logger Residential Ductless Heat Pump Residential Energy Star CFL Bulbs Residential Energy Star CFL Fixtures Residential Energy
Slide 7: Data Collection - Samples and Methods
Sbvw Data Collection —- Samples and Methods « Participant Samples 2007-09 « File-Review Only — 1,181 cl 2010-11 a Site Visit — 638 a Light Loggers ~ 76 residences and 220 loggers a Telephone O Free-Ridership — 922 a Spillover — 508 ws Non-Participant Samples 1 Telephone - 231 m1 Residential, Irrigat
Slide 8: Free Ridership, Spillover, and Net-to-Gross Adjustments
Sov [ENERGY WATER - EFFICIENCY Free Ridership, Spillover, and Net-to- Gross Adjustments = Challenges in Estimating Free Ridership The Measurement Issues: Reliability and Validity 4 Established Approaches to Validity «Face Validity w= Internal Consistency O Doubts about the Face Validity of Self-Repo
Slide 9: Final Products of the Evaluation
Sov ENERGY - WATER «EFFICIENCY Final Products of the Evaluation w Report Volume 1 O Vol 1 NWE 2007-11 Impact and Process Evaluation.docx = Executive Summary and overall methodology, findings and recommendations «= Individual chapters for 24 programs a Chapters on special studies 1 CFL operating hour
Slide 10: Portfolio Impact (kWh and dkt) - Calendar Years 2007-11
Years (2007-11) All Programs Electric Electric Supply - DSM Electric - USB All Programs Electric Natural Gas Naiural Gas Supply - DSM Natural Gas - USB All Programs Natural Gas January 24, 2013 Units kWh kWh. kWh dkt dit dkt Reported Energy Savings 275,073,686 34,262,001 309,335,688 548,774 325,536
Slide 11: Portfolio Impact (kWh and dkt) - Tracker Years
sSbvw Portfolio Impact (kWh and dkt) — Tracker Years (2006-07 thru 2010-11) All Programs Net : ; Savings. Reported Evaluation Adjustment Units Energy Savings Energy Savings “Rate. Electric : ; oo Electric Supply - DSM kWh 255,525,303 235,093,603 0.92 Electric - USB kWh 35,163,422 23,038,815 | 0.66 A
Slide 12: Portfolio Cost-Effectiveness - Calendar Years 2007-11
ENERGY WATER - EFFICIENCY Portfolio Cost-Effectiveness — Calendar Years (2007-11) All Programs _— Societal TRC B/C: PAC B/C. RIM B/C. Cost B/C Units: . Ratio “Ratio Ratio. __Ratio™ Electric Electric Supply - DSM kWh 214. 366 181 2.86 Electric - USB kWh. 0.28 0.52 0.45 0.31 All Programs Electric kWh
Slide 13: Levelized Cost of Energy - Calendar Years 2007-11
sbvw ENERGY -VHATER - EFL Levelized Cost of Energy - Calendar Years (2007-11) All Programs Cost of Saved Energy (CSE) Net Adjusted. Based on Total Based on Program Energy Resource Costs..Administrator Costs Units Savings (TRC) (PAC) Electric Electric Supply - DSM kWh 248,463,014 0.028 . 0.016 Electr
Slide 14: Findings from Special Studies of CFLs
sbvw ENERGY -\WATER - EFFICIER Findings from Special Studies of CFLs = Operating hours Cl Residential a Light Logger study a 76 residences and 220 light loggers tm Sample represents 2010-11 program activity Average of 2.02 hours per day « Hours before 2010 adjusted based on earlier metering studies
Slide 15: Savings Persistence
Savings Persistence w Methodology 1 Site visit sample selected from 2007-08 installations in 17 programs (1 119 projects inspected / surveyed to determine if still operational and saving energy 0 Literature review conducted for a set of measures not included in site visit sample # Findings and Recom
Slide 16: Impact of Install vs. Rebate Date
ENERGY -warER -EFFITIENCY - Impact of Install vs. Rebate Date a Methodology (1 Obtained rebate date from program tracking data 4 Install date either from tracking data or project files t1 Computed number of days between install and rebate [1 Noted when that interval crossed into new tracker year a F
Slide 17: Process Finding
Process Finding a Activity Areas 4 Program Planning and Design 1 Management © Branding, Marketing, Outreach, and Media Use C1 Quality Control and Data Tracking 1 Evaluation # Nonparticipant Findings January 24, 2013 ENERGY -WATEA - EFFICIENCY 17
Slide 18: Program Planning and Design
Sbvwr [ENERGY -WATEN -EFFICRENCY Program Planning and Design a Service Territory Context ms Follows More than 12 Best © Rural, mountainous, noncontiguous, Practices for Planning and Design “islands” of communities 4 Develops sound program plans, O 75% of customers are residential, but responsive to
Slide 19: Program Management and Administration
sbvwyr ENERGY WATER « EFFECIENCY Program Management and Administration a Program Management and u Follows more than 12 Best Administration Practices for Management and a Program staff extremely lean Administration compared to 39 program administrators (LBNL study) Efficiency staff supported by Corp
Slide 20: Branding, Marketing, Outreach, and Media Use
sow GY - ATER + EFESCENCY Branding, Marketing, Outreach, and Media Use a Branding, Website, and Other Services Cl Careful branding, use of logos Corporate Communications staff are valued members of efficiency team Website evolution; in 2010 efficiency pages reworked with ad agency a Marketing and Ou
Slide 21: Quality Control and Data Tracking
Sov [ENERGY - WATER - EFFICIENCY Quality Control and Data Tracking = Quality Control # Data Tracking and Reporting {a Automated and manual checking of 1 30 databases, including cross- application forms, invoices, incentives program databases that interact with a Audit results reviewed by technical o
Slide 22: Evaluation
Evaluation s Data Tracking for Evaluability ™ Recommendations offered for: « Date tracking — savings start date » Cost tracking — measure & participant costs » Unique identifiers — file naming conventions, grouping of project-specific files # Evaluation Practices O Conducts regular, independent eval
Slide 23: Nonparticipant Findings
Swi Nonparticipant Findings a Residential, Small Commercial, Large Commercial, Irrigation nonparticipants « High awareness of Energy Star a Most contacts knew about pertinent qualifying measures a Most learned about NWE programs through publications and advertisements a In general, majorities aware
Slide 24: Portfolio Recommendations
Portfolio Recommendations a Impact ia) Increase marketing to make customer more aware of NWE offerings Collect customer e-mail addresses for future evaluations Use consistent program names Update UES values a Process o oO Planning and design «Prepare written program plans a Reduce the frequency of u
NorthWestern Energy — Technical Presentation (January 2013) on 6ix