Tacoma Power Background

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2. 2 Tacoma Power Background Tacoma Power established in 1893 with public purchase of Tacoma Light & Water Company Number of Customers: 162,587 Number of Employees: 800 Service Territory: approximately 180 square miles Governed by five member Public Utility Board Average Cost of Power to Customers: approximately 6.19 cents

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5. 5 Key Objective from our 2004 IRPEvaluate Conservation Acquisition Opportunities Develop a Conservation Potential Assessment (CPA) to identify available conservation acquisition opportunities The CPA is a road map that estimates the type, amount, and cost of conservation opportunities within the Tacoma Power service area Tacoma Power retained a consulting firm, Quantec to conduct the CPA Completed in January 2007, the CPA estimates about 54 aMW of achievable conservation over the next 10 years

6. 6 I-937 � The Energy Independence Act Passed by public vote in 2006 With regard to conservation, this new law requires Washington utilities to acquire all �cost-effective� conservation (starting in 2010) The Law specifies administrative penalties to be assessed for shortfalls - $50 per megawatt hour (2006 dollars subject to inflation) As a result of this law, the 54 aMW of achievable conservation over 10 years identified in the CPA has been transformed into an enforceable annual conservation target of 5.4 aMW Tacoma Power has begun an update to that CPA which may change the conservation target

7. 7 Effect of Conservation Acquisitions on Tacoma Power�s Load and Resource Balance

8. 8 How Will We Achieve This Energy Conservation? Energy Conservation is the ability to achieve the same amount of work with less energy It is not shivering in the dark, or shuttering businesses Guiding principles: Meet customer needs Meet cost effectiveness tests Be consistent with neighboring utilities PSE, SCL and SnoPUD Maximize use of trade allies Program Challenges: Infrastructure to deliver conservation Competition for trade allies, equipment and qualified staff Economic conditions may impact conservation results Customer and contractor acceptance of new technologies

9. 9 How Will We Achieve This Energy Conservation? Residential Example

10. 10 Residential Customer Research The GIS picture on the right is a color coded example of the combination of presence of residential electric heat, and conservation accomplishments. We are refining this presence of heat research right now. The table isn�t meant to show all the data, but just to show that we have linked customer account data with county assessor data The GIS picture on the right is a color coded example of the combination of presence of residential electric heat, and conservation accomplishments. We are refining this presence of heat research right now. The table isn�t meant to show all the data, but just to show that we have linked customer account data with county assessor data

11. 11 Proposed ProgramsResidential Energy Efficient Showerheads & Aerators High Efficiency Water Heaters Program Residential Lighting Program Residential New Construction

12. 12 Proposed ProgramsResidential Weatherization (Low Income & Non Low Income) High Efficiency Heat Pump Program Appliances Energy Star Washwise Refrigerator Decommissioning

13. 13 Proposed ProgramsCommercial & Industrial Expanded Bright Rebates Program (lighting) Efficiency Options Program (custom projects) Energy Smart Grocer Program (contracted delivery) Fort Lewis & McChord Conservation Project Several of these programs are expanded versions of current offerings and others are new. Some of these we are considering an RFP for conservation program proposals. Bright Rebates - expanded program Good lighting design can solve both efficiency and workplace environment quality concerns. We have capability to computer model, or physically mock up many types of situations and compare the affects of various lighting options The Expanded Bright Rebates will include an more lighting options and the ability to go into an expanded range of building types Into office, retail, Industrial, warehouse, schools Efficiency options - new program This program will focus on energy efficient equipment and permanent improvements that require custom analysis Energy Smart Grocer - new program It would target existing grocery and convenience stores, and may expand to restaurant Fort Lewis Tacoma Power, BPA, and the Fort recently signed an agreement to identify and acquire energy savings. Several of these programs are expanded versions of current offerings and others are new. Some of these we are considering an RFP for conservation program proposals. Bright Rebates - expanded program Good lighting design can solve both efficiency and workplace environment quality concerns. We have capability to computer model, or physically mock up many types of situations and compare the affects of various lighting options The Expanded Bright Rebates will include an more lighting options and the ability to go into an expanded range of building types Into office, retail, Industrial, warehouse, schools Efficiency options - new program This program will focus on energy efficient equipment and permanent improvements that require custom analysis Energy Smart Grocer - new program It would target existing grocery and convenience stores, and may expand to restaurant Fort Lewis Tacoma Power, BPA, and the Fort recently signed an agreement to identify and acquire energy savings.

14. 14 Proposed ProgramsCommercial & Industrial Equipment Rebates Program (VFDs, motors, HVAC) Enhanced Compressed Air Program New Construction Program Building Retro-Commissioning Program Resource Conservation Manager Program Equipment Rebates � New Program: A very simple program to participate in. A company would submit an application prior to installation. No energy analysis required. Rebates are fixed amounts. A wide range of equipment will be eligible-motors, certain appliances, HVAC, even office equipment. Compressed Air � Enhanced Program: This is a comprehensive program that includes training for company staff, system analysis, and incentives. Though primarily geared to large industrial, it is also avaiable to mid size and commercial facilities. New Contrstruction � New program: Equipment Rebates � New Program: A very simple program to participate in. A company would submit an application prior to installation. No energy analysis required. Rebates are fixed amounts. A wide range of equipment will be eligible-motors, certain appliances, HVAC, even office equipment. Compressed Air � Enhanced Program: This is a comprehensive program that includes training for company staff, system analysis, and incentives. Though primarily geared to large industrial, it is also avaiable to mid size and commercial facilities. New Contrstruction � New program:

15. 15 Implications for Local Communities? First, utilities will aggressively promote conservation to their customers. It is important for local governments to support these efforts. Second, Conservation costs money so rates are likely to rise. However, customer bills should be less affected due to the energy savings. Moreover, increased conservation will reduce the need for new and expensive generating resources and expanded �transmission and distribution� facilities.

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