Report to Legislative Assembly on Public Purpose Expenditures. January 2013 December Final 2-Year Report. March 25, 2015!! !!!!!!!!! !!!!!!!!!!

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1 schooldistrict Report to Legislative Assembly on Public Purpose Expenditures January 2013 December 2014 Final 2-Year Report March 25, 2015

2 Evergreen Economics Portland, OR EvergreenEcon.com Prepared'For:' Brittany'Andrus' Senior'Utility'Analyst' Public'Utility'Commission'of'Oregon' 3930'Fairview'Industrial'Dr.'SE'' Salem,'OR'97302 Acknowledgements SteveGroverwastheEvergreenEconomicsprojectdirectorforthisanalysis,andJohnBoroski wastheprojectmanager.questionsregardingthisreportshouldbedirectedtomr.boroskiat weresarahmonohonandjohncornwell.

3 Table of Contents 1 EXECUTIVESUMMARY INTRODUCTION RECEIPTANDEXPENDITURESUMMARY PUBLICPURPOSECHARGE(PPC)OVERVIEW INTRODUCTION PPCFUNDDISTRIBUTION RECEIPTANDEXPENDITURESUMMARY ENERGYTRUSTOFOREGON,INC OVERVIEW ENERGYCONSERVATION MARKETTRANSFORMATION RENEWABLEENERGY OREGONHOUSINGANDCOMMUNITYSERVICES OVERVIEW LOW]INCOMEHOUSING LOW]INCOMEWEATHERIZATION(MULTI]FAMILYRENTALHOUSING) LOW]INCOMEWEATHERIZATION(ECHO) SCHOOLDISTRICTS OVERVIEW RECEIPTSANDEXPENDITURES RESULTS SELFODIRECTCUSTOMERS OVERVIEW RESULTS SUMMARY...36 ODOE/OPUC:PublicPurposeFundReport EvergreenEconomics

4 1 Executive Summary 1.1 Introduction InJuly1999,SenateBill1149(SB1149)wasenactedtointroducecompetitionintoOregon s electricitymarketswithintheportlandgeneralelectric(pge)andpacificorpservice territories. 1 AspartofSB1149,theseutilitieswererequiredtocollecta3percentchargeon theirretailelectricitysalesbeginninginmarch2002.thispublicpurposecharge(ppc)isused tofundcost]effectiveenergyconservationandtheabove]marketcostsofrenewableenergy resourcesandtohelpprovideweatherizationandotherenergyassistancetolow]income householdsandpublicschools. Oregonhasa30]yearhistoryofusingratepayerfundingforconservationandrenewable programspriortosb1149.before2002,utilitiesadministeredconservationprogramsusing ratepayerfunds.undersb1149,programsarestillfundedbyratepayers(throughthepublic purposecharge)butresponsibilityforrunningtheseprogramswastransferredtoenergy TrustofOregon.Theadministratorsofthevariousprogramsfundedwiththepublicpurpose chargeare: EnergyTrustofOregon,Inc.Thenon]profitEnergyTrustbeganadministeringfunds inmarch2002andseekstodevelopandimplementprogramsthatpromoteenergy conservation,lowerthecostsofrenewableenergyresourcesysteminstallationsand transformmarketstoefficientproductsandservicesintheserviceareasofportland GeneralElectricandPacifiCorp.EnergyTrustreceives73.8percentoftheavailable publicpurposechargefunds;56.7percentisdedicatedtoconservationprogramsand 17.1percentisdedicatedforrenewableenergyprojects. SchoolDistricts.Oregonhas112schooldistrictswithinPGEandPacifiCorpservice territories.thedistrictscollectivelyreceive10percentofpublicpurposechargefunds toimproveenergyefficiencyinindividualschools.priortojune2011,whenhousebill 2960(HB2960)waspassed,thesefundsweredistributedto16EducationalService Districts. OregonHousingandCommunityServices.OregonHousingandCommunityServices (OHCS)receivesandadministerspublicpurposechargefundsfortwolow]income housingprograms.fourandone]halfpercentofthepublicpurposechargefundsare dedicatedtolow]incomehousingdevelopmentprojectsinthepgeandpacificorp serviceareas;theseprojectsinvolveconstructionofnewhousingorrehabilitationof existinghousingforlow]incomefamiliesthroughtheohcshousingtrustfund.ohcs operatestwoweatherizationprograms,andanadditional11.7percentofthetotalppc fundscollectedareallocatedfortheweatherizationofdwellingsoflow]income residentsinthepgeandpacificorpserviceareas.oneprogramprovideshome 1SB1149,whichspecificallyaddressesthepublicpurposecharge,iscodifiedinORS ,et.seq.ORS ODOE/OPUC:PublicPurposeFundReport 1 EvergreenEconomics

5 weatherization(forsingle]andmulti]family,owneroccupied,andrentalhousing)and theotherprovidesforweatherizationofaffordablemulti]familyrentalhousing throughtheohcshousingdivision. Inadditiontoprojectsconductedbytheseagencies,largecommercialandindustrial customerscanimplementtheirownenergyconservationorrenewableenergyprojects.these self]direct customerscanthendeductthecostofprojectsfromtheconservationand renewableresourcedevelopmentportionoftheirpublicpurposechargeobligationtoutilities. InAugust2014,theOregonDepartmentofEnergy(ODOE)andtheOregonPublicUtility Commission(OPUC)hiredEvergreenEconomicstoprepareareporttotheOregonLegislature documentingppcreceiptsandexpendituresincompliancewithors (1)(a). Specifically,EvergreenEconomics DocumentedPPCdisbursementstoeachagencybyPGEandPacifiCorp; Demonstratedhoweachagencyutilizedfunds; Summarizedimportantprojectaccomplishments;and Documentedadministrativecostsusingacommoncostdefinitionacrossagencies. ThisreportdoesnotattempttoevaluatehowwellthevariousPPCprogramsarebeing implemented,norhaveweattemptedtoindependentlyverifytheenergysavings accomplishmentsreportedbytheppcfundadministrators.theseissuesareusually addressedthroughformalthird]partyprogramevaluationssuchasthosecurrentlybeing performedfortheenergytrustoforegonprograms. 1.2 Receipt and Expenditure Summary Table1showsPPCfunddisbursementstothevariousadministratorsandprogramsforthe January1,2013 December31,2014period.Thefarrightcolumnofthetableliststhelevelof expenditureforthesefundsoverthesameperiod,andshowsthatexpendituresweresimilar todisbursementsformostprograms.asshownatthebottomofthetable,ppcexpenditures totaled$164,266,828acrossallfundadministrators.administrativecostsforagencies receivingtheppcfundstotaled$9,083,119,or5.53percentofallexpendituresduringthis period. ODOE/OPUC:PublicPurposeFundReport 2 EvergreenEconomics

6 Table1:PPCDisbursementsandExpenditures(1/ /2014) DisbursementSource Expenditure FundAdministrator/Program PGE PacifiCorp Total Total EnergyTrustofOregon Conservation $55,226,127 $41,368,501 $96,594,628 $82,694,307 RenewableEnergy $16,220,493 $11,694,649 $27,915,142 $20,259,158 AdministrativeExpenses $7,896,283 SchoolDistricts $10,442,330 $7,367,061 $17,809,391 $21,748,459 ODOEProgramExpenses $472,481 AdministrativeExpenses $235,224 OregonHousingand CommunityServices LowHIncomeWeatherization* $12,217,529 $8,624,778 $20,842,307 $16,185,403 LowHIncomeHousing $4,699,050 $3,317,323 $8,016,373 $5,784,026 AdministrativeExpenses $772,823 Evaluation,Training, TechnicalAssistance $447,952 EnergyEducation $1,484,126 SelfCDirectCustomers** Conservation $3,578,865 $139,384 $3,718,249 $3,718,249 RenewableEnergy $1,478,580 $826,110 $2,304,690 $2,304,690 ODOEProgramExpenses $84,859 AdministrativeExpenses $178,790 Totals $103,862,974 $73,337,806 $177,200,780 $164,266,828 AdministrativeCostsOnly $9,083,119 *Low]IncomeWeatherizationincludestheECHOprogramandtheLow]IncomeWeatherizationProgram(formulti]family rentalhousing). **TheamountslistedforSelf]Directrepresentpublicpurposechargesretainedandspentbytheparticipatingsitesinlieuof makingpaymentstotheutilities. Table2summarizestheexpendituresandresultsforPPCexpendituresfromJanuary2013 throughdecember2014.theagenciesspentacombinedtotalof$164,266,828onprograms andprojectscompletedduringthisperiod.annualenergysavingsandrenewableresource generationachievedfromprojectscompletedduringthistimereached1,273,754,144kwh (over145mwa).whenallfueltypesareincludedinadditiontoelectricity,ppcexpenditures resultedinannualsavingsof4,432,704millionbtu(mbtu),whichisenoughtoserve approximately44,300homes. 2 2CalculatedusingODOE sestimatethateachhomeuses100mbtuperyearonaverage. ODOE/OPUC:PublicPurposeFundReport 3 EvergreenEconomics

7 Table2:SummaryofPPCExpendituresandResults(1/ /2014) Results Agency/Program Expenditures kwhsavedor Generated MWa MBtu EnergyTrust Conservation* $89,116, ,682, ,619,617 EnergyTrust Renewables** $21,733,151 43,486, ,376 SchoolDistricts*** $22,456,163 6,620, ,139 OHCSLowCIncome**** $24,674,330 10,929, ,292 SelfCDirectCustomers***** $6,286, ,034, ,518,280 TotalExpenditures $164,266,828 1,273,754, ,432,704 *Energysavedexcludessavingsfromreducedtransmissionanddistributionlosses.SchoolsProjectssavingsof218,426 kwhhavebeensubtractedfromenergytrust Conservationsavingstopreventdoublecounting,sincebothEnergyTrust andtheschooldistrictssupportthiseffortandthereforeincludethesavingsintheirreports.energytrustdelivers additionalsavingstopgeandpacificorpthroughfundingauthorizedundersb838,andtonwnaturalandcascade NaturalGasunderthetermsofastipulationwiththeOPUC.EnergyTrustreportstotalsavingsforallexpenditurestothe OPUC. **Renewableenergygenerationisfromcurrentlyoperationalprojects. ***MBtuforSchoolDistrictsincludessavingsfromelectricity,naturalgas,andotherfuels. ****ExpendituresfortheOHCSLow]IncomeprogramincludeexpendituresfromtheHousingTrustFund,whichdoesnot trackenergysavingsforitsprojects. *****ExpenditureslistedforSelf]Directrepresentpublicpurposechargesretainedandspentbytheparticipatingsitesin lieuofmakingpaymentstotheutilities. ODOE/OPUC:PublicPurposeFundReport 4 EvergreenEconomics

8 2 Public Purpose Charge (PPC) Overview 2.1 Introduction InJuly1999,SenateBill1149(SB1149)wasenactedtointroducecompetitionintoOregon s electricitymarketswithintheportlandgeneralelectric(pge)andpacificorpservice territories. 3 AspartofSB1149,theseutilitieswererequiredtocollecta3percentchargeon theirretailelectricitysalesbeginninginmarch2002.thispublicpurposecharge(ppc)isused tofundcost]effectiveenergyconservationandtheabove]marketcostsofrenewableenergy resourcesandtohelpprovideweatherizationandotherenergyassistancetolow]income householdsandpublicschools. InAugust2014,theOregonDepartmentofEnergy(ODOE)andtheOregonPublicUtility Commission(OPUC)hiredEvergreenEconomicstoprepareareporttotheOregonLegislature documentingppcreceiptsandexpendituresincompliancewithors (1)(a). Specifically,EvergreenEconomics DocumentedPPCdisbursementstoeachagencybyPGEandPacifiCorp; Demonstratedhoweachagencyutilizedfunds; Summarizedimportantprojectaccomplishments;and DocumentedadministrationcostsusingacommoncostdefinitionacrossPPC administrators. TheremainderofthissectionprovidesanoverviewofthetotalPPCfundscollectedand disbursedfromjanuary2013throughdecember2014.additionaldetailonhoweach organizationutilizedfundsisprovidedinsubsequentsections. 2.2 PPC Fund Distribution ThePPCfundsarecollectedanddistributedacrossseveralorganizationsforadministrationof energyconservationandrenewableenergyprograms: EnergyTrustofOregon,Inc.Thenon]profitEnergyTrustbeganadministeringfundsin March2002;EnergyTrustseekstodevelopandimplementprogramsthatpromoteenergy conservation,lowerthecostsofrenewableenergyresourcesysteminstallationsand transformmarketstoefficientproductsandserviceswithintheserviceareasofpgeand PacifiCorp.EnergyTrustreceives73.8percentoftheavailablePPCfunds(56.7percent dedicatedtoconservationprogramsand17.1percentforrenewableenergyprojects). 3SB1149iscodifiedinORS ,et.Seq.ORS specificallyaddressesthepublicpurposecharge. ODOE/OPUC:PublicPurposeFundReport 5 EvergreenEconomics

9 SchoolDistricts.Oregonhas112schooldistrictswithinPGEandPacifiCorpservice territories.thedistrictscollectivelyreceive10percentofppcfundstoimproveenergy efficiencyinindividualschools.priortojune2011,whenhb2960waspassed,thesefunds weredistributedto16educationalservicedistricts. OregonHousingandCommunityServices.OregonHousingandCommunityServices (OHCS)receivesandadministersPPCfundsfortwolow]incomehousingprograms.Four andone]halfpercentoftheppcfundsarededicatedtolow]incomehousingdevelopment projectsinthepgeandpacificorpserviceareas.theseprojectsinvolveconstructionof newhousingorrehabilitationofexistinghousingforlow]incomefamiliesthroughthe OHCSHousingTrustFund.OHCSoperatestwoweatherizationprograms,andanadditional 11.7percentofthetotalPPCfundscollectedareallocatedfortheweatherizationof dwellingsoflow]incomeresidentsinthepgeandpacificorpserviceareas.oneprogram provideshomeweatherization(forsingle]andmulti]family,owneroccupied,andrental housing)andtheotherprovidesforweatherizationofaffordablemulti]familyrental housingthroughtheohcshousingdivision. Inadditiontoprojectsconductedbytheseagencies,largecommercialandindustrial customerscanimplementtheirownenergyconservationorrenewableenergyprojects.these self]direct customerscanthendeductthecostofprojectsfromtheconservationand renewableresourcedevelopmentportionoftheirppcobligationtoutilities. Figure1showshowtotalPPCfundswereallocatedacrossadministratorsfromJanuary2013 throughdecember2014(seetable4fordetailedutilitiesdisbursements). ODOE/OPUC:PublicPurposeFundReport 6 EvergreenEconomics

10 Figure1:PPCFundAllocationbyAdministratorandProgram(1/ /2014) 4 Low-Income Weatherization 12% Self-Direct Customers 3% Low-Income Housing 5% School Districts 10% Energy Trust Conservation 54% Energy Trust Renewables 16% Figure2showsthetotalPPCfundcollectionsfortheJanuary2013throughDecember2014 perioddividedbetweenresidentialandnon]residentialratepayersforeachutility. 5 Forboth utilities,publicpurposefundswerecollectedinnearlyidenticalproportionsfromthe residentialandnon]residentialsectors. 4Thisgraphincludesself]directexpenditures,andthustheallocationpercentagesdonotmatchthePPCdisbursements discussedpreviously,whichpertaintototalppcfundscollected'bytheutilities.thischartreflectstheutilities direct allocationstoschooldistricts;energytrustprovidesadditionalfundingforschooldistricts. 5ThesectorsharewascalculatedbyeachutilitybasedonrevenuesreceivedfromJanuary2013throughDecember2014. Becauseoftheseasonalnatureofenergyconsumption,thisdistributioncanvaryfrommonthtomonth. ODOE/OPUC:PublicPurposeFundReport 7 EvergreenEconomics

11 Figure2:SectorContributionofPPCFundsbyUtility(1/ /2014) 60% 50% 49% 51% 48% 52% 40% 30% Residential Non-Residential 20% 10% 0% PGE PacifiCorp Figure3showshowPPCfundexpendituresbythevariousagenciesandprogramswere distributedamongsectors.thenon]residentialsector(excludingschools)accountedfor45 percentofexpendituresfromjanuary2013todecember2014.overthesametimeframe, schoolsaccountedfor14percentofexpenditures,13percentofexpenditureswerespenton renewableresourcedevelopment,and28percentofexpenditureswerespentonprograms forresidentialcustomers(coveredbytheohcsandenergytrustresidentialconservation programs). 6 6Theseschoolsexpendituresarefromtheutilities directallocationsonly,andnotadditionalfundingfromenergytrust. ODOE/OPUC:PublicPurposeFundReport 8 EvergreenEconomics

12 Figure3:PPCExpendituresbySector(1/ /2014) Schools 14% Residential 28% Renewables 13% Non- Residential 45% 2.3 Receipt and Expenditure Summary ThisreportdetailspublicpurposechargeexpendituresfromJanuary1,2013toDecember31, 2014.Table3showsthetotalfundscollectedduringthisperiodfrombothPGEand PacifiCorp.Overthis2]yearperiod,PGEdisbursed$103,862,974inPPCfundsandPacifiCorp disbursed$73,337,806,foratotalof$177,200,780allocatedacrosstheagencies.theutilities spentacombinedtotalof$160,282onadministrativeexpensestocollectanddistributeppc fundstotheagencies.thisamountincludesfundsdistributedtotheoregonpuctohelp administertheprogram. Table3:TotalPPCFundDisbursements(1/ /2014) Source PPC Disbursements Administrative Expenses* PGE $103,862,974 $83,331 PacifiCorp $73,337,806 $76,951 Total $177,200,780 $160,282 *IncludesfeespaidtoOPUCtohelpadministerthePPCprogram. Table4providesadditionaldetailonthedisbursementsacrossthevariousprogramsforthe January2013 December2014period.Thefarrightcolumnofthetableliststhelevelof expenditureforthesefundsoverthesameperiod,andshowsthatexpendituresweresimilar ODOE/OPUC:PublicPurposeFundReport 9 EvergreenEconomics

13 todisbursementsformostprograms.asshownatthebottomofthetable,ppcexpenditures totaled$164,266,828acrossallfundadministrators.administrativecostsforagencies receivingtheppcfundstotaled$9,083,119or5.53percentofallexpendituresduringthis period. Table4:PPCDisbursementsandExpenditures(1/ /2014) DisbursementSource Expenditure FundAdministrator/Program PGE PacifiCorp Total Total EnergyTrustofOregon Conservation $55,226,127 $41,368,501 $96,594,628 $82,694,307 RenewableEnergy $16,220,493 $11,694,649 $27,915,142 $20,259,158 AdministrativeExpenses $7,896,283 SchoolDistricts $10,442,330 $7,367,061 $17,809,391 $21,748,459 ODOEProgramExpenses $472,481 AdministrativeExpenses $235,224 OregonHousingand CommunityServices LowHIncomeWeatherization* $12,217,529 $8,624,778 $20,842,307 $16,185,403 LowHIncomeHousing $4,699,050 $3,317,323 $8,016,373 $5,784,026 AdministrativeExpenses $772,823 Evaluation,Training, TechnicalAssistance $447,952 EnergyEducation $1,484,126 SelfCDirectCustomers** Conservation $3,578,865 $139,384 $3,718,249 $3,718,249 RenewableEnergy $1,478,580 $826,110 $2,304,690 $2,304,690 ODOEProgramExpenses $84,859 AdministrativeExpenses $178,790 Totals $103,862,974 $73,337,806 $177,200,780 $164,266,828 AdministrativeCostsOnly $9,083,119 *Low]IncomeWeatherizationincludestheECHOprogramandtheLow]IncomeWeatherizationProgram(formulti]family rentalhousing). **TheamountslistedforSelf]Directrepresentpublicpurposechargesretainedandspentbytheparticipatingsitesinlieuof makingpaymentstotheutilities. Table5showsthetimingofPPCreceiptsandexpendituressince2012foreachagency. Unexpendedfundsfrom2012arelisted,inadditiontonewreceiptsandexpendituresduring thejanuary2013 December2014period. 7 7TheSB1149SchoolsProgramoperatesonareimbursementmodel.Schooldistrictspayforeligibleprojectswithother fundssuchasbonds,andthenarereimbursedfromtheirsb1149funds.reimbursementcouldconsistofasinglepaymentifa district ssb1149balanceislargeenough,oritmayincludemultiplepaymentsasadditionalppcfundsaredisbursed.total reimbursementiscappedatprojectedtotaldisbursementthroughtheendof2025.anegativecarryforwardamount indicatesthataportionofthetotalcostofallinstalledmeasureswillbereimbursedfromfutureppcdisbursements. ODOE/OPUC:PublicPurposeFundReport 10 EvergreenEconomics

14 Table5:CumulativePPCReceiptsandExpenditures(1/ /2014) FundAdministrator/ Program 2012Carry Forward* 1/2013C6/2014 Receipts 1/2013C6/2014 Expenditures EnergyTrustofOregon Conservation $782,503 $96,594,628 $89,116,597 RenewableEnergy** $15,672,997 $27,915,142 $21,733,151 SchoolDistricts H$4,336,570 $17,809,391 $22,456,163 OregonHousingand $12,157,996 CommunityServices*** $28,858,680 $24,674,330 SelfCDirectCustomers**** $0 $6,022,939 $6,286,587 Totals $24,276,926 $177,200,780 $164,266,828 *2012carryoveramountscalculatedbyEvergreenEconomicsusingdatafromtheReport'to'Legislative'Assembly'on'Public' Purpose'Expenditures'for'the'Period'January'1,'2011' 'December'31,'2012(March29,2013). **Renewablescarryoverincludesuncommittedfundsandfundscommittedtoprojectinstallationsinfutureyears. ***ExpendituresfortheOHCSLow]IncomeprogramincludeexpendituresfromtheHousingTrustFund. ****TheamountslistedforSelf]Directrepresentpublicpurposechargesretainedandspentbytheparticipatingsitesin lieuofmakingpaymentstotheutilities. Theremainingsectionsinthisreportdescribehoweachorganizationuseditsallocatedfunds. Forcomparison ssake,administrativeexpenseshavebeenconsistentlydefinedas 1. Coststhatcannotbeotherwiseassociatedwithacertainprogrambutwhichsupport anagency sgeneraloperations.thesecostsmayincludeboardorexecutivedirector activities,generalbusinessmanagement,accounting,generalreporting,andoversight; 2. Generaloutreachandcommunication;and 3. Thefollowingdirectprogramsupportcosts: a. Supplies b. Postageandshipping c. Telephone d. Occupancyexpenses e. Printingandpublications f. Insurance g. Equipment h. Travel i. Meetings,training,andconferences j. Interestexpenseandbankfees k. Depreciationandamortization l. Dues,licenses,andfees m. Othermisc.expenses Theadministrativeexpensesprovidedforeachagencyallconformwiththisdefinition. ODOE/OPUC:PublicPurposeFundReport 11 EvergreenEconomics

15 3 Energy Trust of Oregon, Inc. 3.1 Overview TheOregonPUCdesignatedEnergyTrustofOregon,Inc.toadministertheconservationand renewableresourceandmarkettransformationcomponentsoftheppc.energytrust sponsorsasuiteofprogramsthattargetnewandexistingresidential,commercial,and industrialelectricitycustomersinthepgeandpacificorpserviceareas.throughthese programs,energytrustprovidesinformationalassistanceandfinancialincentivestoinstall efficiencymeasuresandlowercostsofprojectsthatgenerateelectricityusingrenewable energyresources.aportionofthefundsfromenergytrustisalsoallocatedtothenorthwest EnergyEfficiencyAlliance(NEEA)tosupportitsongoingenergyefficiencymarket transformationprograms. 8 Table6providesasummaryofEnergyTrustPPCrevenuesandexpendituresfromJanuary1, 2013throughDecember31,2014.FundsreceivedbyEnergyTrustduringthisperiodtotaled $124,509,770andexpenditurestotaled$110,849,748.Administrativeexpensestotaled $7,896,283andcomprised7.1percentoftotalspendingbyEnergyTrustonelectric conservationandrenewableprogramsand6.3percentoftotalppcreceiptsduringthis period. 9 Table6:EnergyTrustReceiptandExpenditureSummary(1/ /2014) Transaction PGE PacifiCorp Total TotalFundReceipts $71,446,620 $53,063,150 $124,509,770 Expenditures EnergyConservation $47,939,801 $34,754,506 $82,694,307 RenewableEnergy $10,522,177 $9,736,981 $20,259,158 AdministrativeExpenses $4,647,641 $3,248,642 $7,896,283 TotalExpenditures $63,109,619 $47,740,129 $110,849,748 8EnergyTrustalsoadministersresidential,commercial,andindustrialconservationprogramsforNorthwestNaturalGas CompanyandCascadeNaturalGasCorporationunderthetermsofastipulationwiththeOPUC.AvistaUtilitiesalso contractedwithenergytrustin2006and2007todeliverthreeprogramsinitsserviceterritory.in2008,pgeandpacific Powerbeganprovidingadditionalfundsforachievablecost]effectiveenergyefficiencytoEnergyTrustpursuanttosection46 ofthe2007renewableenergyact(sb838). 9Administrativeexpensesusedhereandinsubsequenttablesaredefinedusingthecommonadministrativeexpense definitiondiscussedinsection2.3ofthisreport(receiptandexpendituresummary)andareforprogramdeliveryservices fundedthroughsb1149only.administrativecostsallocatedtonorthwestnaturalgas,cascadenaturalgas,andtopgeand PacifiCorpasauthorizedunderSB838,arenotincludedhere. ODOE/OPUC:PublicPurposeFundReport 12 EvergreenEconomics

16 3.2 Energy Conservation Receipts and Expenditures Table7showsEnergyTrustfundreceiptsandexpendituresforitsconservationprograms. DuringtheJanuary1,2013throughDecember31,2014period,$96,594,628inPPCfundswas distributedtoenergytrustforspendingontheseprograms.conservationexpenditures totaled$89,116,597duringthissameperiod.administrativecoststhatcouldbedirectly assignedtoenergytrustconservationprogramstotaled$6,422,290,or7.2percentoftotal conservationprogramspendingand6.6percentoftotalppcreceiptsforconservation programs. Table7:EnergyTrustConservationReceiptsandExpenditures(1/ /2014) Transaction PGE PacifiCorp Total FundReceipts $55,226,127 $41,368,501 $96,594,628 Expenditures ProgramExpenditures $47,939,801 $34,754,506 $82,694,307 AdministrativeExpenses $3,889,937 $2,532,353 $6,422,290 TotalExpenditures $51,829,736 $37,286,858 $89,116, Results 10 EnergyTrustconservationactivitiesconsistedofthedesignanddeliveryofconservation programstargetedtodifferentmarketsectorswithawiderangeofenergysavingmeasures. Table8showstheaccomplishmentsoftheindividualprogramssponsoredbyEnergyTrust. Duringtheperiodcoveredbythisreport,474,901,028kWhinenergysavingswereachieved acrossallmarketsectors.theindustrialsectoraccountedfor48percentofthesesavingswith 229,689,146kWhsaved.Commercialsectorsavingswere159,856,569kWh(34percentof EnergyTrustconservationsavings),andresidentialsectorsavingswere85,355,313kWh(18 percent). TheProductionEfficiencyProgramaccountedfor98percentofsavingsintheindustrial sector.inthecommercialsector,thebuildingefficiencyprogramwasthelargestcontributor andaccountedfor47percentoftheenergysavingsachievedinthissectorfollowedbythe NewBuildingEfficiencyProgram,whichaccountedforanadditional43percent. 10EnergyTrustdeliversadditionalsavingstoPGEandPacifiCorpthroughfundingauthorizedunderSB838,andtoNorthwest NaturalGasandCascadeNaturalGasunderthetermsofastipulationwiththeOPUC.EnergyTrustreportstotalsavingsforall expenditurestotheopuc. ODOE/OPUC:PublicPurposeFundReport 13 EvergreenEconomics

17 Table8:EnergyTrustConservationProgramsEnergySavingsByUtility(1/ /2014)* ProgramName PGESavings (kwh) PacifiCorp Savings(kWh) TotalSavings (kwh) AverageLifeof Savings(years) Residential HomeEnergySavings 9,520,726 9,832,088 19,352, NewHomes&Products 16,058,146 15,758,671 31,816, NEEA(MarketTransformation) 20,169,465 14,016,218 34,185, TotalResidential 45,748,336 39,606,977 85,355, Commercial BuildingEfficiency** 47,297,573 28,004,417 75,301, NewBuildingEfficiency 17,422,667 51,878,161 69,300, NEEA(MarketTransformation) 8,999,520 6,254,231 15,253, TotalCommercial 73,719,760 86,136, ,856, Industrial ProductionEfficiency 155,726,398 69,704, ,431, NEEA(MarketTransformation) 2,512,297 1,745,817 4,258, TotalIndustrial 158,238,695 71,450, ,689, TotalAllPrograms 277,706, ,194, ,901, *Savingsfromreducedtransmissionanddistributionlossesarenotcountedinthistable. **Savingsinclude218,426kWhforSchoolsprojectsthatutilizedODOE]managedSB1149fundsandreceivedEnergyTrust programsupporttoidentifyelectricandnaturalgasconservationopportunities.ofthisamount20,698kwhweresavedin PGEterritory197,737kWhweresavedinPacificPowerterritory. Table9providesadditionaldetailregardingthetypesofefficiencyimprovementsthatare beingimplementedforthevariousconservationprograms.intheresidentialsector,atleast 12,970ENERGYSTARappliancesreceivedrebates,andinthecommercialsector,1,452 existingbuildingsand1,148multifamilybuildingswereretrofitted. ODOE/OPUC:PublicPurposeFundReport 14 EvergreenEconomics

18 Table9:EnergyTrustExampleEfficiencyImprovements(1/ /2014) ImprovementType Numberof AverageLifeof Projects* Savings(Years) Commercialprojects Existingbuildingsretrofitted 1, Efficientnewbuildingsconstructed Multifamilybuildingsretrofitted 1, Newmultifamilybuildingsconstructed Solarwaterheatingcommercialinstallations Industrialprojects Efficientmanufacturingprocesses,waterand wastewatertreatment,andagriculture 1, Residentialprojects Efficientnewhomesconstructed Efficientnewmanufacturedhomespurchased Homeenergyreviewsconducted 901 N/A SingleHfamilyhomesretrofitted Manufacturedhomesretrofitted Residentialsolarwaterheatinginstallations ENERGYSTARappliancerebates 12,970 13to22** *Numberofprojectsisnotthesameasnumberofmeasures.Multiplemeasuresareofteninstalledforindividual projects. **Dishwashers:13years,ClothesWashers:14years,Freezers:20years,Refrigerators:22years Table10showsEnergyTrust scostforeachconservationprogramandthelevelizedenergy coststhathavebeenachieved.themostenergytrustfundswerespentontheindustrial ProductionEfficiencyProgram($32.0million)followedbytheCommercialBuildingEfficiency Program($22.6million)andtheCommercialNewBuildingEfficiencyProgram($9.7million). Theindustrialsectorattainedthelowestoveralllevelizedenergycost,withanaveragecostof 1.6centsperkWh.Theresidentialandcommercialsectorshadhigheraveragelevelizedcosts at2.8and2.1centsperkwh,respectively. ODOE/OPUC:PublicPurposeFundReport 15 EvergreenEconomics

19 Table10:EnergyTrustConservationCostsandLevelizedEnergyCosts(1/ /2014) ProgramName EnergyTrustCost(all LevelizedCost electricfunders)* (dollars/kwh)** Residential HomeEnergySavings $6,966, EfficientNewHomes/Products $8,796, NEEA(MarketTransformation) $4,821, TotalResidential $20,585, Commercial BuildingEfficiency $22,568, NewBuildingEfficiency $9,712, NEEA(MarketTransformation) $3,009, TotalCommercial $35,290, Industrial ProductionEfficiency $32,000, NEEA(MarketTransformation) $1,240, TotalIndustrial $33,240, *EnergyTrustCostincludesallocatedadministrativecosts.Seefootnote9. **LevelizedcostswerecalculatedbyEnergyTrustandincludesavingsforreducedtransmissionand distributionlosses. Table11showshowtheenergyefficiencyincentivespaidbyEnergyTrustweredistributed acrossthegeographicregionsoforegon.about62percentofallincentives($28.1million) werepaidtocustomersintheportlandarea,and28percentwasdividedbetweenthe WillametteValleyandSouthernOregon.Theindustrialsectorreceivedthelargestshareof incentivepaymentsat43percent. Table11:EnergyTrustEnergyEfficiencyIncentivePaymentsbySectorandRegion,Thousands ofdollars(1/ /2014) Sector Central/ East NW/Coast Portland Area Southern Willamette Valley Total Commercial $1,946 $225 $12,861 $1,648 $1,772 $18,452 Industrial $1,610 $29 $11,498 $1,811 $4,533 $19,480 Residential $831 $152 $3,793 $1,674 $1,385 $7,834 Total $4,386 $406 $28,152 $5,132 $7,690 $45,766 ODOE/OPUC:PublicPurposeFundReport 16 EvergreenEconomics

20 3.3 Market Transformation Actions and Processes NEEAisfundedbyelectricutilitiesinOregon,Washington,Idaho,andMontana,andEnergy TrustprovidesfundingonbehalfofPGEandPacifiCorp sratepayers.neeahelpspromote electricefficiencythroughmarkettransformation,i.e.,changeinsales,selection,design, installation,operation,andmaintenancepracticesforhomes,equipment,buildingsand industrialfacilities.neea sprogramsarecloselyintegratedwiththoseofenergytrustbutare morefocusedonlong]termmarketchange.amongitscurrentinitiativesareprogramsfor ductlessheatpumps,heatpumpwaterheaters,luminaire]levellightingcontrols,efficient consumerelectronics(includingtvs),existingbuildingrenewal,strategicenergy Management(SEM)andefficientresidentialhomeconstruction Participating Firms and Organizations ThroughNEEA,EnergyTrust seffortsarecoordinatedwiththoseofalltheelectricutilitiesof thenorthwest(foractivitiesbeyondthepgeandpacificorporegonserviceterritories)and thestateenergyofficesandpublicutilitycommissionsoforegon,montana,idahoand Washington.NEEAalsohelpscoordinatesomeprogrameffortswiththeFederalGovernment, forexample,bynegotiatingwiththeusenvironmentalprotectionagency(epa)tocreatethe NorthwestENERGYSTARnewhomeefficiencyprogram.ThroughtheConsortiumforEnergy Efficiency,EnergyTrustandNEEAalsocoordinatewithsimilarprogramsnationally. Table12showsEnergyTrust scostforeachmarkettransformationprogram.totalenergy Trustcostsformarkettransformationwereapproximately$9.1million,withthegreatest share(53percent)spentintheresidentialsector. Table12:EnergyTrustMarketTransformationCosts(1/ /2014) ProgramName EnergyTrustCost NEEACommercial $3,009,409 NEEAIndustrial $1,240,487 NEEAResidential $4,821,721 Total $9,071,617 Table13showstheenergysavingsaccomplishmentsoftheprogramsdeliveredbyNEEA. Duringtheperiodcoveredbythisreport,over53,500,000kWhinenergysavingswere achievedacrossthethreemarketsectors,withtheresidentialsectoraccountingfor64 percentofthesavings. ODOE/OPUC:PublicPurposeFundReport 17 EvergreenEconomics

21 Table13:MarketTransformationEnergySavingsByProgramandUtility(1/ /2014)* ProgramName PGESavings (kwh) PacifiCorp Savings(kWh) TotalSavings (kwh) AverageLife ofsavings (years) NEEAResidential 20,169,465 14,016,218 34,185, NEEACommercial 8,999,520 6,254,231 15,253, NEEAIndustrial 2,512,297 1,745,817 4,258, Total 31,681,282 22,016,267 53,697, *Savingsfromreducedtransmissionanddistributionlossesarenotcountedinthistable Technology Advancement ThissectionprovidessomeexamplesofthemanyprojectsthatNEEAisundertakingto validate,refine,andintroducenewpotentiallycost]effectivetechnologiestonorthwest markets. Beginningin2012,NEEAworkedwithtechnicalbuildingexpertstocreateadraftNextStep Homespecification,whichwillincludeasetofadvancedenergy]efficientbuildingpractices andtechnologiestohelpaccelerateresidentialnewconstructioncodechanges.neeatested thespecificationin2013todemonstratebuilders abilitytomeettheseadvancedbuilding practicesandtesttheperformanceofpilothomes.aftermakingfinalrefinementstothe specification smixofpracticesandproducts,neea semerginginitiativewillresultinnew homesthatareapproximately30percentmoreefficientthanthosecomplyingwithcurrent statebuildingcodes. Inaddition,NEEA scontinuousenergymonitoringinthenextstephomepilotsrevealedthat ductlessheatpumps(dhps)cycledonandofffrequently,wastingenergy,increasingenergy costsandreducingequipmentlife.neeasharedthefindingsandworkedwithmanufacturers tooptimizeproductenergyefficiencyandproduction.basedonneea sresearch,new firmwarecoulddeliveranadditional300to500kwhofannualsavingsfromeachsystem,and onemajormanufacturerhasalreadyimplementedaglobal,product]widefirmwareupgrade toincreaseenergysavings.neeawillbeworkingwiththeairconditioning,heating& RefrigerationInstitutetodesignatestprocedurethatwillreflectreal]worldconditions encounteredinthemonitoringproject. 11 Inthecommerciallightingcontrolsmarket,NEEAishelpingtodevelopanewgenerationof products]luminairelevellightingcontrols(lllc)]thatmaybeabletodeliverhighenergy savingsforthenorthwestusingmicro]zonesensingandcontrol.neea slllcinitiative developstieredspecificationstoserveasaroadmapforthelightingindustryandconducts functionaltestingtovalidatelllcproductperformance.in2011,neeapartneredwith Enlighted,Inc.toinstallandstudyitssystematthreeNorthwestsites.Thestudy,completed 11NEEA2013AnnualReport. ODOE/OPUC:PublicPurposeFundReport 18 EvergreenEconomics

22 andreleasedin2013,showedthesystemdelivered42percentaggregateenergysavingsand, insomecases,60to70percentsavings.theproductisthefirsttomeetneea slllc specification.neea sfindingswillfurtherboostmarketconfidenceinthisnewtechnology, whichhasmorethan20millionsquarefeetofinstalledspace.neeawillalsouseitsresearch todevelopastrategytoincreasemarketadoptionofthisemergingtechnology Renewable Energy Receipts and Expenditures Table14showsthePPCfundreceiptsandexpendituresdedicatedtoEnergyTrustrenewable energyprogramsfromjanuary1,2013throughdecember31,2014.duringthisperiod, $27,915,142inPPCfundswasallocatedtoEnergyTrustforrenewableenergyprojects,and renewableenergyprogramspendingtotaled$20,259,158.administrativecostsrelatedtothe renewableenergyprogramtotaled$1,473,993andcomprised6.8percentoftotalrenewable energyprogramspendingbyenergytrustand5.3percentoftheppcreceiptsdesignatedfor therenewableenergyprograms. Table14:EnergyTrustReceiptsandRenewableExpenditures(1/ /2014) Results Transaction PGE PacifiCorp Total FundReceipts* $16,220,493 $11,694,649 $27,915,142 Expenditures ProgramExpenditures $10,522,177 $9,736,981 $20,259,158 AdministrativeExpenses $757,704 $716,289 $1,473,993 TotalExpenditures $11,279,882 $10,453,271 $21,733,153 *Unspentfundsarecarriedoverintofutureyearseitherasuncommittedfundsorfundscommittedtocontracted projectinstallationsinfutureyears.noincentivepaymentsaremadetocontractedprojectsuntilprojectshave achievedoperationalstatus. Table15listsalltheactiverenewableenergygenerationprojectsfundedbyEnergyTrust fromjanuary2013throughdecember2014.thelargestamountofannualrenewableenergy generationwasachievedthrougha1.7mwbiopowerprojectinwashingtoncounty.another biopowerproject,anabovegroundcontinuousflowstirred]tankreactor(cstr)inlane County,achieved1.4MW.Thisbiopowerprojectdigests25tonsofpost]consumerfoodwaste fromportland,andotherhighstrengthfoodwastefromthewillamettevalley.furthermore, four(4)windprojectswerecompletedinwashington,marion,polk,andumatillacounties, withacapacityof0.01mweach. Uponcompletion,alloftheprojectslistedwillprovideatotalof66,247MWhinrenewable energyperyear.projectsthatarecurrentlyoperationalareproviding39,381mwhperyear. TheSolarElectricProgram,whichprovideshomeownersandbusinesseswithfinancial 12Ibid. ODOE/OPUC:PublicPurposeFundReport 19 EvergreenEconomics

23 incentivestoadoptpowerapplications,hascompleted2,174projectsthatarenow operational,andincludedintheaboveenergy. Table16showsallofthefeasibilitystudiesandotherdevelopmentprojectsthatwere approvedforfundingbyenergytrust'srenewableenergyprogramsfromjanuary2013 throughdecember2014.atotalof39projectswereactiveduringthereportperiod:31were completedand8areongoing.projecttypesrangefromfeasibilitystudiesandgrantwriting assistancetowindmonitoringequipment. ODOE/OPUC:PublicPurposeFundReport 20 EvergreenEconomics

24 Table&15:&Energy&Trust&Renewable&Energy&Projects&Summary&(1/2013& &12/2014)& Project #)of) Projects Status Year County Estimated) Life)Years Generating) Capacity)(MW) Annual)Energy) (MWh/yr) Project)Cost) ($/MWh) Cost)to)Energy) Trust)($/MWh) Percent)of)Above) Market)Cost)Paid Utility)Service) Territory Biopower(#1 1 Contracted 2013 Multnomah ,226 1, % PGE Biopower(#2 1 Contracted 2013 Washington ,108 1, % PGE Biopower(#3 1 Completed 2013 Tillamook , % PAC Biopower(#4 1 Contracted 2013 Hood(River ,070 2, % PAC Biopower(#5 1 Completed 2014 Lane ,614 1, % PGE Other(Renewables(#1 1 Contracted 2013 Deschutes ,951 1, % PAC Other(Renewables(#2 1 Contracted 2013 Clatsop , % PAC Other(Renewables(#3 1 Completed 2013 Multnomah , % PGE Other(Renewables(#4 1 Completed 2013 Hood(River , % PAC Other(Renewables(#5 1 Completed 2014 Klamath ,349 2,264 95% PAC Other(Renewables(#6 1 Completed 2014 Deschutes , % PAC Wind(#1 1 Completed 2013 Washington ,844 1,594 51% PGE Wind(#2 1 Completed 2013 Marion ,484 3,255 51% PGE Wind(#3 1 Completed 2013 Polk ,126 9,549 67% PAC Wind(#4 1 Completed 2014 Umatilla ,947 1,707 51% PAC Solar(#1 1 Contracted 2014 Multnomah , % PGE Solar(#2 1 Contracted 2013 Klamath ,800 1, % PAC Solar(Electric(in(PAC 356 Completed 2013 n/a ,612 3, n/a PAC Solar(Electric(in(PAC 399 Completed 2014 n/a ,759 3, n/a PAC Solar(Electric(in(PGE 525 Completed 2013 n/a ,677 4, n/a PGE Solar(Electric(in(PGE 894 Completed 2014 n/a ,310 4, n/a PGE Total(Completed ,381 Total(Contracted ,866 Total ,247 *Costsinthistablereflectfullincentivescommittedtoprojects,notexpendituresduringthistimeperiod.PleasereferenceTable14foractualexpenditures. **ThepercentofaboveHmarketcostpaiddoesnotnecessarilyreflectthepercentofgreentagsownedbyEnergyTrust.Greentagownershipisdeterminedbasedongreen tagpolicy,whichcanbefoundathttp:// ***CapacityforBiopower#4is0;theprojectimprovedtheexistingcapacityofthefacilitywithadditionalpiping,butnonewcapacitywasclaimed. ****CapacityforOtherRenewables#1is0;theprojectimprovedtheexistingcapacityofthefacilitywithadditionalpiping,butnonewcapacitywasclaimed. ODOE/OPUC:PublicPurposeFundReport 21 EvergreenEconomics

25 Table&16:&Energy&Trust&Feasibility&Studies&and&Other&Projects&(1/2013& &12/2014)& Title Status Year Projcet0Type County Utlity0Service0 Cost0to0Energy0 Energy0Trust0 Territory Trust Share Biopower(#1 Completed 2013 Feasibility(Analysis Klamath PAC $45,971 50% Biopower(#2 Completed 2014 Feasibility(Analysis Washington PGE $7,468 50% Other(Renewables(#1 Completed 2014 Feasibility(Analysis Yamhill PGE $4,559 50% Other(Renewables(#2 Initiated 2013 Feasibility(Analysis Jefferson PAC $68,373 50% Other(Renewables(#3 Completed 2013 Feasibility(Analysis Jefferson PAC $15,877 48% Other(Renewables(#4 Completed 2014 Feasibility(Analysis Deschutes PAC $3,623 50% Other(Renewables(#5 Completed 2013 Feasibility(Analysis Deschutes PAC $40,000 39% Other(Renewables(#6 Completed 2013 Feasibility(Analysis Lake PAC $39,351 38% Other(Renewables(#7 Completed 2014 Feasibility(Analysis Wallowa PAC $500 50% Other(Renewables(#8 Completed 2014 Feasibility(Analysis Klamath PAC $75,000 50% Other(Renewables(#9 Completed 2014 Feasibility(Analysis,(Grant(Writing(Assistance Wallowa PAC $11, % Other(Renewables(#10 Completed 2013 Feasibility(Analysis Klamath PAC $750 50% Other(Renewables(#11 Completed 2013 Feasibility(Analysis Washington PGE $2,244 50% Other(Renewables(#12 Completed 2014 Feasibility(Analysis Deschutes PAC $39,413 50% Other(Renewables(#12 Initiated 2013 Feasibility(Analysis Deschutes PAC $80,587 31% Other(Renewables(#13 Completed 2013 Feasibility(Analysis Washington PGE $5,033 50% Other(Renewables(#14 Completed 2014 Feasibility(Analysis Klamath PAC $57,482 49% Other(Renewables(#14 Initiated 2014 Feasibility(Analysis Klamath PAC $106,984 50% Other(Renewables(#15 Completed 2014 Feasibility(Analysis Multnomah PGE $1,000 50% Other(Renewables(#16 Completed 2014 Feasibility(Analysis Wallowa PAC $1, % Other(Renewables(#16 Initiated 2014 Feasibility(Analysis Wallowa PAC $18, % Other(Renewables(#17 Completed 2014 Feasibility(Analysis Klamath PGE $63,000 50% Other(Renewables(#17 Initiated 2014 Feasibility(Analysis Klamath PGE $49,874 50% Other(Renewables(#18 Completed 2014 Feasibility(Analysis Klamath PAC $6,644 50% Other(Renewables(#19 Initiated 2014 Feasibility(Analysis Marion PAC $30,025 50% Other(Renewables(#20 Completed 2014 Feasibility(Analysis Deschutes PAC $6,416 50% Wind(#1 Completed 2013 Feasibility(Analysis Morrow PAC $4,188 50% Wind(#1 Completed 2013 Feasibility(Analysis Morrow PGE $2,938 50% Wind(#1 Initiated 2013 Feasibility(Analysis Morrow PAC $65,300 50% Wind(#2 Completed 2014 Feasibility(Analysis Morrow PAC $6,441 50% Wind(#2 Completed 2013 Feasibility(Analysis Morrow PGE $900 50% Wind(#2 Initiated 2013 Feasibility(Analysis Morrow PAC $2,421 50% Wind(#3 Completed 2013 Wind(Monitoring(Equipment Deschutes PGE $2, % Wind(#4 Completed 2013 Wind(Monitoring(Equipment Marion PGE $1,480 50% Wind(#5 Completed 2013 Wind(Monitoring(Equipment Marion PGE $1,265 50% Wind(#6 Completed 2013 Wind(Monitoring(Equipment Marion PGE $1,188 50% Wind(#7 Completed 2013 Wind(Monitoring(Equipment Marion PGE $1,455 50% Wind(#8 Completed 2013 Wind(Monitoring(Equipment Yamhill PGE $500 61% Wind(#9 Completed 2013 Wind(Monitoring(Equipment Marion PGE $434 50% ODOE/OPUC:PublicPurposeFundReport 22 EvergreenEconomics

26 4 Oregon Housing and Community Services 4.1 Overview OregonHousingandCommunityServices(OHCS)receivesandadministersPPCfundsforlowF incomehousingprograms.fourandonefhalfpercentoftheppcfundsarededicatedtolowf incomehousingdevelopmentprojects,eitherforconstructionofnewhousingor rehabilitationofexistinghousingforlowfincomefamiliesthroughtheohcshousingtrust Fund.OHCSoperatestwoweatherizationprograms,andanadditional11.7percentofthetotal PPCfundscollectedareallocatedforlowFincomeweatherization.Oneprogramprovideshome weatherization(forsinglefandmultiffamily,owneroccupied,andrentalhousing)andthe otherprovidesforweatherizationofaffordablemultiffamilyrentalhousing.ineithercase, housingprojectssupportedbyppcfundsforweatherizationarerequiredtohavea conservationelement. Table17providesasummaryoftheTrustFundandWeatherizationportionofPPCfund receiptsandexpendituresfromjanuary1,2013throughdecember31,2014.fundsreceived byoregonhousingandcommunityservicesduringthisperiodamountedto$28,858,680&and expendituresincludingcommitmentstotaled$30,583,482.administrativeexpenses comprised3.5percentoftotalspendingbetweenthethreeprogramsduringthisperiod. ODOE/OPUC:PublicPurposeFundReport 23 EvergreenEconomics

27 Table&17:&OHCS&Receipt&and&Expenditure&Summary&(1/2013& &12/2014)& Transaction* PGE* PacifiCorp* Total* Receipts* * * * Low6Income*Weatherization* * * * Administration+ $610,876+ $431,239+ $1,042,115+ Evaluation,+Training,+and+Technical+ Assistance+ $610,876+ $431,239+ $1,042,115+ ECHO+ $9,207,636+ $6,500,384+ $15,708,020+ MultiEFamily+Rental+Housing+ $1,788,141+ $1,261,916+ $3,050,057+ Total*Low6Income*Weatherization* $12,217,529* $8,624,778* $20,842,307* Low6Income*Housing* ** ** ** ****Administration+ $234,953+ $165,866+ $400, Program* $4,464,097+ $3,151,457+ $7,615,554+ Total*Low6Income*Housing* $4,699,050* $3,317,323* $8,016,373* Total*Fund*Receipts* $16,916,579* $11,942,101* $28,858,680* Expenditures* LowEIncome+Weatherization*+ $10,075,374+ $6,110,029+ $16,185,403+ Committed+but+unexpended+ $2,888,643+ $1,707,947+ $4,596,590+ LowEIncome+Housing** $5,784,026+ Committed+but+unexpended $520,000+ Administrative+Expenses** $772,823+ +Evaluation,+Training,+Technical+ Assistance** $447,952+ Committed+but+unexpended $89,990+ Energy+Education+ $744,313+ $739,813+ $1,484,126+ Committed+but+unexpended+ $408,608+ $293,964+ $702,572+ Total*Expenditures*(w/o*Committed)*** $10,819,687* $6,849,842* $24,674,330* Total*Expended*and*Committed*** $14,116,938* $8,851,753* $30,583,482* *IncludestheECHOprogramandtheLowFIncomeWeatherizationProgram(formultiFfamilyrentalhousing). **LowFIncomeHousing,Administrative,andEvaluationTrainingandTechnicalAssistanceexpendituresarenottracked byutility. SpecificdetailonthelowFincomehousingprogramandlowFincomeweatherizationactivities isprovidedsubsequently. ODOE/OPUC:PublicPurposeFundReport 24 EvergreenEconomics

28 4.2 Low-Income Housing Receipts and Expenditures TheHousingDevelopmentGrantProgram(HDGP),commonlyknownastheHousingTrust Fund,wascreatedin1991toexpandtheState ssupplyofhousingforlowandverylowf incomefamiliesandindividuals.theprogramprovidesgrantsandloanstoconstructnew housingortoacquireand/orrehabilitateexistingstructures.seventyffivepercentofprogram fundsmustdevelopaffordablehousingtosupporthouseholdswhosegrossincomeisator below50percentoftheareamedianincome(ami);thebalanceofthefundscandevelop affordablehousingtosupporthouseholdswithincomesupto80percentoftheareamedian income.themajorityofprogramresourcesareawardedthroughacompetitiveapplication processthatoccurstwiceannually,onceforthespringandonceforthefallfundingcycle. Fundingpreferenceisgiventoprojectapplicantswhoprovideservicesappropriateforthe targetedtenantpopulation. Table18showsPPCfundreceiptsandexpendituresforthelowFincomehousingprogram. DuringtheJanuary2013 December2014period,atotalof$7,615,554inPPCfundswere allocatedtooregonhousingandcommunityservicestosupportlowfincomehousingprojects throughoutthestate.expendituresfromppcrevenueforprojectsdevelopedduringthis periodwere$5,784,026.fundstopayprojectcoststotaling$520,000obligatedbutnotspent asofdecember31,2014. Table&18:&LowNIncome&Housing&Program&Receipts&and&Expenditures&& (1/2013& &12/2014)&& Transaction* Total* Fund*Receipts* $7,615,554* Expenditures* * Committed+but+unexpended+ $520,000+ Expenditures+ $5,784,026+ Total*Expended*and*Committed* $6,304,026* Results DuringtheJanuary2013 December2014period45housingunitsinLaneCountywerefully fundedwithppcrevenuethattargetedfamiliesatorbelow60percentoforegon smedian income.inprioryears,ohcsgrantedfundstopartnerspriortothereceiptofresources,based onprojections.in2012,thedecisionwasmadetoceaseforwardallocationofresourcestothe lowfincomehousingprogram.asaresult,fewerdollarswereavailableduringthisreporting period,andfewerprojectswereallocatedfunding.infutureyears,ohcswillcontinuetogrant fundsastheyarereceivedandwillreturntotypicalunitproduction. ODOE/OPUC:PublicPurposeFundReport 25 EvergreenEconomics

29 4.3 Low-Income Weatherization (Multi-Family Rental Housing) Receipts and Expenditures TheLowFIncomeWeatherizationprogramisdesignedtoreducetheenergyusageandutility costsoflowerincometenantsresidinginaffordablerentalhousing.theprogramprovides grantfundingfortheconstructionorrehabilitationofaffordablerentalhousingthatislocated inpgeorpacificorpserviceterritories.useofthesefundsrequiresthatatleast50percentof theunitsintheprojectberentedtohouseholdswhoseincomeisatorbelow60percentofthe areamedianincome(adjustedbyfamilysize)asdefinedbyhud.projectsreceivingfunds mustalsoremainaffordableforatleast10years. Foreachdollarinvested,theprojectmustdemonstrateatleastonekilowattFhourinenergy savingsinthefirstyearofoperation.programresourcesmaybeusedforshellmeasuressuch aswindows,doors,andinsulationaswellasenergyefficientappliancesandlighting. Table19showsthePPCfundreceiptsandexpendituresallocatedforlowFincomehome weatherization.duringthisperiod,atotalof$3,050,057inppcfundswasallocatedtooregon HousingandCommunityServicestosupportweatherizationofrentalhousingprojectswithin thestate.actualprojectexpenditureswere$1,532,387duringthisperiodwhilefunds committedtoprojectstotaledanadditional$1,342,301.expenditurescanbelessthan committedfundsashousingdevelopmentprojectscantakeupwardsoftwoyearstocomplete andfundsthereforeneedtobereservedovermultipleyears Results Table&19:&LowNIncome&Weatherization&(MultiNFamily&Rental&Housing)&& Receipts&and&Expenditures&(1/2013& &12/2014)&& Transaction* PGE* PacifiCorp* Total* Fund*Receipts* $1,788,141* $1,261,916* $3,050,057* Expenditures* Committed+but+unexpended+ $1,039,349+ $302,952+ $1,342,301++ Expenditures*+ $1,101,117+ $431,270+ $1,532,387+ Total*Expended*and*Committed* $2,140,466* $734,222* $2,874,688* *Includesexpendituresforallprojectsregardlessoffundingyear. ThelowFincomeweatherizationaccomplishmentsaresummarizedinTable20.Thesefifteen completedprojectsareexpectedtoproduceover1.5millionkwhinelectricitysavingsintheir firstyearofoperation. ODOE/OPUC:PublicPurposeFundReport 26 EvergreenEconomics

30 Table&20:&LowNIncome&Weatherization&(MultiNFamily&Rental&Housing)&Accomplishments& (1/2013& &12/2014)&& Accomplishment* Total* Number*of*Projects** 15* Number*of*Housing*Units* 867* Estimated*Annual*kWh*Savings** 1,532,461* Population*Served*(#*of*housing*units)*** + Elderly Families Special*Needs*(#*of*housing*units)* + Special+Needs+Groups Farm+Workers+ 0+ Units+where+household+income+is+between+61+and+80+ percent+of+the+area+median+income+ 91+ Units+where+household+income+is+between+51+and+60+ percent+of+the+area+median+income Units+where+household+income+is+between+41+and+50+ percent+of+the+area+median+income Units+where+household+income+is+between+31+and+40+ percent+of+the+area+median+income+ 5+ Units+where+household+income+is+equal+or+less+than+30+ percent+of+the+area+median+income+ 7+ *Inthisreportingperiod,thesefifteenprojectsaccountedfor$1,388,175inexpenditures. Table21showshowthelowFincomeweatherizationprojectsweredistributedamong Oregon scounties. Table&21:&LowNIncome&Weatherization&Program&by&County&(1/2013& &12/2014)& County* Number*of*Projects* Number*of*Units*in*County* Jefferson Marion Multnomah Washington Benton Deschutes Clackamas Jackson *counties* 15*Projects* 867*Units* ODOE/OPUC:PublicPurposeFundReport 27 EvergreenEconomics