Simple Steps – 2015 expanded programBPA Brown Bag presentation

Sarah F. Moore – BPA Residential Lead

David Murphy – BPA Appliance & Lighting Program Manager

Ryan Crews – CLEAResult Associate Manager

December 3, 2014

December 11, 2014

2

Program Overview

• 2015 Program Timing• Program Development Jan – Mar 2015

• Program Launch – April 1, 2015

• What's the same• CFLs, LEDs, showerheads (no interruption)

• Special Promotions

• What's new• Appliances (washers, refrigerators, freezers)

• Additional Measure Options – (APS, HPWHs, DHPs)

• To be coordinated with NEEA at a later date

• On-Line promotions and purchasing options

• Utility-Branded POP

• Savings based pricing

• Customizable measure portfolios and support services

3

Program Offer Summary

STANDARD SERVICES

• Field services and reporting• Basic marketing• Monthly activity reports• Retail promotional events• Manufacturer/retailer management• Rebate processing• Allocation implementation• Collaboration with regional programs

OPTIONAL SERVICES

• Tailored marketing• Additional measure options• Customized reporting dashboards• Call center services

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Appliances Overview

• Utility requests for midstream appliance promotions

• Clothes washers, refrigerators and freezers

• Beginning in June of 2015

• Will be offered as a midstream retail model

• Will operate in a similar manner to lighting & showerhead promotions – no rebate forms, utilize RSAT for allocations

• Delivery will be priced separately from lighting and showerheads

• Appliance program focused webinar to be held in January

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Pricing

Cost per claimable kWh, not per sales unit:

• Approx. $0.0981 per kWh for lighting and showerheads

• Approx. $0.3106 per kWh for appliances

Units sold will continue to be reported by product type, as they are now.

Why has the cost increased?

• Increased special promotions budget

• Growing LED market share

• Covers the cost of non-participating utility sales

Average Cost Per Lighting/Showerhead Item Sold

Current New Difference

$1.67 $1.84 $0.17

Average Delivery Cost Per Lighting/Showerhead Item Sold

Current New Difference

$0.25 $0.238 -$0.012

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Budgeting

Utilities can still limit budget amounts

• Separate budgets for lighting/showerheads and/or appliances

Progress towards budget or other goals will be tracked on monthly invoices

• Additional reporting metrics are available

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Progress Towards

Goal

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RSAT Allocations

Different allocations for lighting/showerheads and appliances

Methodology Considerations:

• Type of product

• Retailer environment

• Drive time

• Urban density near store

• Road networks

• Proximity of other retail locations

• Demographics of households

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The Benefits of Participating

• Inexpensive savings

• < $0.10/kWh for lighting/showerheads

• $0.30/kWh for appliances

• Potential for large savings volume

• 35+ utilities with over 500,000 kWh so far this year

• 20+ utilities over 1 million kWh

• Customer visibility

• Currently operate in 1,050 stores regionally

• Partnership opportunity with local retailers

• Flexible turnkey program

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Participation Examples

UTILITY #1

Characteristics• Large savings goals• Urban center w/many big

box stores• Some rural customers• Staff hasn’t had a lunch

break for weeks

Participation• Opt-in to lighting/SH and

appliance promo• Online offers• Extra focus on in-store

promotions• Pop-up retail events

UTILITY #2

Characteristics• Medium savings goals• One large town, rest are small

towns; some big box stores• Many rural customers• Staff likes to process

appliance rebates

Participation• Opt-in to lighting/SH; keep

appliance promo in-house• Online offers• Extra focus on small retailer

recruitment

UTILITY #3

Characteristics• Small savings goals;

customer touch is focus • All small towns; few

retailers• Rural customers

Participation Level• Opt-in to lighting/SH and

appliance promo• Extra focus on small

retailer recruitment• EE kit giveaways at local

events

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Opt-In Overview

• Opt-in Period

• Dec 3, 2014 through Jan 9, 2015

• Opt-in Process

• Contact Ryan Crews (email or phone)

• Determine goals and budgets

• Forecast and program agreements

• Advantage of joining during opt-in period

• Allows for best possible price based on volume

• Utilities will continue to have the option to join later

• Price will remain same as during opt-in period

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Unassigned Account

If desired, utilities can consider applying to the Unassigned Account for additional EEI funds, whether for Simple Steps or another program.

Contacts

Aimée Brown

Senior Manager

503.467.2101

aimee.brown@clearesult.com

Ryan Crews

Associate Manager

503.688.1569

ryan.crews@clearesult.com

Additional Support Slides(as needed)

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Product Type DescriptionSavings (kwh/yr)

Payment ($/unit)

S4 2015 Unit Cost

S4 2014 Unit Cost

Price Difference

Payment Difference

CFL General Purpose and Dimmable 1440- 2600 lumens 15 $1.00 $1.47 $0.75 $0.72 -$0.47CFL General Purpose and Dimmable 250- 664 lumens 8 $1.00 $0.78 $0.75 $0.03 $0.22CFL General Purpose and Dimmable 665- 1439 lumens 8 $1.00 $0.78 $0.75 $0.03 $0.22CFL Decorative and Mini-Base 1440- 2600 lumens 22 $2.25 $2.16 $2.25 -$0.09 $0.09CFL Decorative and Mini-Base 250- 664 lumens 10 $2.25 $0.98 $2.25 -$1.27 $1.27CFL Decorative and Mini-Base 665- 1439 lumens 17 $2.25 $1.67 $2.25 -$0.58 $0.58CFL Globe 1440- 2600 lumens 16 $2.25 $1.57 $2.25 -$0.68 $0.68CFL Globe 250- 664 lumens 6 $2.25 $0.59 $2.25 -$1.66 $1.66CFL Globe 665- 1439 lumens 8 $2.25 $0.78 $2.25 -$1.47 $1.47CFL Reflectors and Outdoor 1440- 2600 lumens 50 $2.25 $4.91 $2.25 $2.66 -$2.66CFL Reflectors and Outdoor 250- 664 lumens 12 $2.25 $1.18 $2.25 -$1.07 $1.07CFL Reflectors and Outdoor 665- 1439 lumens 20 $2.25 $1.96 $2.25 -$0.29 $0.29CFL Three-Way 1440- 2600 lumens 36 $2.25 $3.53 $2.25 $1.28 -$1.28CFL Three-Way 250- 664 lumens 6 $2.25 $0.59 $2.25 -$1.66 $1.66CFL Three-Way 665- 1439 lumens 14 $2.25 $1.37 $2.25 -$0.88 $0.88LED Decorative and Mini-Base 1440- 2600 lumens 31 $4.00 $3.04 $3.00 $0.04 $0.96LED Decorative and Mini-Base 250- 664 lumens 14 $4.00 $1.37 $3.00 -$1.63 $2.63LED Decorative and Mini-Base 665- 1439 lumens 10 $4.00 $0.98 $3.00 -$2.02 $3.02LED General Purpose and Dimmable 1440- 2600 lumens 24 $4.00 $2.35 $3.00 -$0.65 $1.65LED General Purpose and Dimmable 250- 664 lumens 11 $4.00 $1.08 $3.00 -$1.92 $2.92LED General Purpose and Dimmable 665- 1439 lumens 12 $4.00 $1.18 $3.00 -$1.82 $2.82LED Globe 1440- 2600 lumens 23 $4.00 $2.26 $3.00 -$0.74 $1.74LED Globe 250- 664 lumens 9 $4.00 $0.88 $3.00 -$2.12 $3.12LED Globe 665- 1439 lumens 13 $4.00 $1.28 $3.00 -$1.72 $2.72LED Reflectors and Outdoor 1440- 2600 lumens 66 $4.00 $6.47 $3.00 $3.47 -$2.47LED Reflectors and Outdoor 250- 664 lumens 17 $4.00 $1.67 $3.00 -$1.33 $2.33LED Reflectors and Outdoor 665- 1439 lumens 30 $4.00 $2.94 $3.00 -$0.06 $1.06LED Three-Way 1440- 2600 lumens 66 $4.00 $6.47 $3.00 $3.47 -$2.47LED Three-Way 250- 664 lumens 17 $4.00 $1.67 $3.00 -$1.33 $2.33LED Three-Way 665- 1439 lumens 30 $4.00 $2.94 $3.00 -$0.06 $1.06LED Fixture Downlight Retrofit Kit 24 $10.00 $2.35 $8.25 -$5.90 $7.65Showerhead 1.5 or less Gallons Per Minute (GPM) 171 $12.00 $16.78 $7.25 $9.53 -$4.78Showerhead 1.75 or less Gallons Per Minute (GPM) 132 $12.00 $12.95 $7.25 $5.70 -$0.95Showerhead 2 or less Gallons Per Minute (GPM) 88 $12.00 $8.63 $7.25 $1.38 $3.37

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RSAT Allocations

Retailer Class

Product Type

Urban Density DRIVE TIME

Drive Time GIS TRADE

AREA

Trade Area

Customer Segment

House Counts

Utility Territory

RETAIL SALES ALLOCATION