PLATTE RIVER POWER AUTHORITY EFFICIENCY PROGRAMS Wyoming Utility

PLATTE RIVER POWER AUTHORITY EFFICIENCY PROGRAMS Wyoming Utility Efficiency Exchange October 3, 2008

Platte River-City Relationship Residential Commercial Transmission Generation Distribution Industrial Platte River Power Authority • Sole Supplier • Joint Ownership / Equity • Local Governance Estes Park Fort Collins Longmont Loveland Customers

DSM Drivers – unregulated Public demand Public acceptance of new resources Cost effective (? ) No programs we have examined result in net cost savings But, we expect to get ~90% of our DSM expenditures back in savings Environmental benefits Best option for CO 2 mitigation

CO 2 Mitigation Cost Estimates

Efficiency Program Drivers Good for the environment Reduced fuel use Reduce emissions Potential to delay new generation and transmission

Efficiency Program Drivers Providing efficiency programs is expected of utilities Programs offered by our peers & our customers notice Xcel is increasing programs Tri-State coops are starting programs APPA increasing focus on efficiency

Efficiency Program Drivers Customer service / community service Help participating customers save money with lower electric bills Provides other benefits to participants Particularly helpful as rates are increasing Better comfort (visual/thermal) Improved productivity or sales Spurs local investment Sales of energy-efficient products and services $3. 2 million incentives $8 - $12 million local investment Provided by local trade allies

Program Selection Criteria Quantifiable/measurable/verifiable savings Savings must be “real” Action must really reduce energy use Programs must be able to influence customer decisions Cost effectiveness Cost effective to customer Market must exist / trade allies must exist Programs selected based on cost of conserved energy Value of conserved energy also a consideration Broad appeal Among customers Among member utilities

All Residential Efficiency Programs Estes Park Fort Collins Green Energy LWAT - CFLs Longmont Small wind w/ GEO Washers & Dishwashers Green Power Refrig recycling ZILCH AC Load Management ENERGY STAR Homes LWAT - CFLs Washers & Dishwashers Refrig recycling ENERGY STAR Homes Solar PV w/GEO Green Energy Home Performance Residential Energy with ES Audit Program Solar PV w/GEO Neighborhood Sweep Loveland LWAT - CFLs Partnering with Power (AC load Management) Green. Switch

Current Platte River Efficiency Programs Commercial Electric Efficiency Program (EEP) Cooling Rebate Program LIGHTENUP Retrocommissioning Pilot (new) Residential Lighting with a Twist (LWAT) Energy Star New Homes (new)

Platte River Efficiency Program Results

Key Efficiency Program Metrics: 2008 Projections Program Projected cost Gross energy savings (MWh) Net energy savings Net-to. Cost per Assumed Gross Ratio (MWh) annual k. Wh life Cost per k. Wh* (lifetime) LIGHTENUP $762, 454 7, 718 0. 78 6, 020 $0. 13 11 $0. 016 EEP $385, 828 6, 051 0. 85 5, 143 $0. 08 12 $0. 009 CRP $42, 964 88 0. 85 75 $0. 58 15 $0. 059 LWAT $420, 000 10, 608 0. 50 5, 304 $0. 08 8 $0. 013 TOTALS $1, 611, 246 24, 465 0. 68 16, 542 $0. 10 10. 4 $0. 013 IRP Goal: avg year $1, 170, 000 6, 360 $0. 18 10 $0. 025 * 6% discount rate

Financial Impact – Wholesale Utility Current efficiency projection (2009 -2014) ~$2 million/yr efficiency investment (~1. 2% of revenue) 93, 000 MWh total savings in 2014 (2. 6% energy savings) Minor rate pressure 1% higher rate in 2014 / 0. 6% in 2020 2% less collected from member utilities in 2014 Rest made up from increased surplus sales, avoided peaker fuel and purchases Benefits Presen t Worth $ $ Eff Increased surplus sales $10. 7 M $1. 13 Avoided peaker fuel $4. 7 M $0. 50 Avoided purchased power $1. 1 M Potential to delay G&T cap TOTALS Costs Prese nt Worth $ $ Eff $0. 12 Efficiency programs $9. 4 M $1. 00 - - Lost city wholesale revenue $7. 3 M $0. 77 $16. 5 M $1. 75 TOTALS $16. 7 M $1. 77

How Much Can Utility Efficiency Do?

THANK YOU Wyoming Utility Efficiency Exchange October 3, 2008