June 16, 2017

Presentation to the NH Energy Efficiency and Sustainable Energy Board

Vision for Energy Efficiency Energy Efficiency is a key strategy for building a

modern and sustainable energy future Market Transformation Capturing all cost-effective energy efficiency Delivering the value of energy efficiency to the NH

economy

Vision for the 2018-2020 Plan The 2018-2020 Plan makes significant progress toward

the larger vision Expanding the reach of NH’s successful programs Delivering increased energy savings Serving more customers Implementing new initiatives Deepening relationships with contractor and

stakeholder partners Serving as trusted advisors

Increase Energy Savings

2018 2019 2020 2018-20200.8% 1.0% 1.3%

10,782,973 86,264 107,830 140,179 334,272

Electric Savings Statewide Target (MWH)2014 Delivery Sales

(MWH)2018 2019 2020 2018-2020

0.70% 0.75% 0.80%23,352,672 163,469 175,145 186,821 525,435

2014 Delivery Sales (MMBtu)

Natural Gas Savings Statewide Target (MMBtu)

Increased Peak Savings

8

10.2

12.8 13.8

0

2

4

6

8

10

12

14

16

2017 2018 2019 2020

Summer Peak MW Savings

Summer Peak MWSavings

Serving and Engaging More Customers

172,575 215,493

314,184

432,951

- 50,000

100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000

2017 2018 2019 2020

Electric Projects

Serving and Engaging More Customers

43,419

50,031 50,379 50,677

38,000

40,000

42,000

44,000

46,000

48,000

50,000

52,000

2017 2018 2019 2020

Natural Gas Projects

Increase Customer Savings

$148

$219

$271

$349

$0

$50

$100

$150

$200

$250

$300

$350

$400

2017 2018 2019 2020

Total Customer Savings ($ Millions)

Economic and Environmental Benefits

Customers will save more than $838 million dollars on

energy costs, which can be reinvested in the NH economy

The 2018-2020 Plan will support 2,100 full time equivalents or 4.4 million work hours.

A reduction of more than 2.4 million tons of greenhouse gas emissions – the equivalent of taking 520 thousand

passenger vehicles off the road for one year

Funding Sources - Electric Program (in Millions)

$-

$10

$20

$30

$40

$50

$60

$70

2017 2018 2019 2020

$21.60 $30.39

$40.78 $57.32

$2.61

$2.61

$2.61

$2.61

$4.30

$6.38

$6.26

$6.34

FCMRGGISBC

EE SBC 2017 - $0.00198 Settlement,

2018 – $0.00309 Draft Plan,

2018 - $0.00282

Funding Sources – Natural Gas Program (in Millions)

$7.70

$9.5 $10.5

$11.4

$-

$2

$4

$6

$8

$10

$12

2017 2018 2019 2020

Local Delivery Adjustment Charge

LDAC

Budget Allocation by Sector

17%

31% 52%

Electric - percent of budget allocated

IncomeEligibleResidential

C&I andMunicipal

17%

33%

50%

Natural Gas - percent of budget allocated

IncomeEligibleResidential

C&I andMunicipal

Residential NHSaves Programs ENERGY STAR® Homes provides incentives to

customers or builders who are constructing highly efficient new homes.

Home Performance with ENERGY STAR (HPwES) provides comprehensive energy efficiency improvements for existing homes.

Home Energy Assistance provides energy-saving support to income eligible residents.

ENERGY STAR Products provides rebates and markdowns to encourage customers to purchase energy-saving products such as lighting, appliances, and heating systems.

Commercial NHSaves Programs Large Business Energy Solutions provides incentives to

large commercial and industrial customers who are retrofitting existing facilities or equipment, constructing new facilities, adding equipment, or replacing equipment that is at the end of its useful life.

Small Business Energy Solutions provides incentives for new and retrofit projects and also includes turn-key energy services to small commercial customers who lack the time, resources, or expertise to implement energy saving solutions.

Municipal Energy Efficiency Program provides incentives to municipal customers who are constructing new facilities or retrofitting existing facilities.

Additional Offerings Home Energy Reports compare energy performance

among homes and encourage greater efficiency. Energy Rewards RFP encourages customers to submit

comprehensive projects as part of a competitive bid process.

Customer Engagement Platform utilizes self-service tools to help customers learn more about energy efficiency and develop a customized energy savings plan.

Customer Financing helps some customers move forward with energy efficiency projects

Residential Program Expansions

Expanded Markdowns

Increased Investment

Cross Promoting Programs

Reaching More

Customers

Leveraging Partnerships

Streamline Customer

Experience

Commercial Program Expansions

Segment Customer

Types

Technical Assistance

Increased Investment

Affinity Groups &

Trade Allies

Tailored Offerings

Workshops and

Trainings

2018-2020 Innovations

Residential New Homes – multiple offerings HPwES – new audit option and new software HEA – capture more electric savings Products – Ready to adjust with the market

C&I - Long-term planning - Multi-year commitments -Performance Based Incentives - CHP Custom Measure

2018 – 2020 Innovations Portfolio • -Enhanced Stakeholder • Engagement • -EM&V Framework • -Market Research • -Increased emphasis on • marketing and communication

Stimulating Customer Investment

Electric Programs Natural Gas Programs

$116.984 44% $146.490

CustomerContributionProgramBudget

$16.714 36%

$29.897

CustomerContributionProgramBudget

Investment in EE Measures 2018-2020 (Millions)

*Note: Program Budgets includes all elements of the budget, not just rebate dollars. Customer Contribution includes only program co-pays, which for some measures are based on incremental cost.

Customer Focused Financing Options 3rd Party Financing connects customers with EE

projects to significant capital available from local lenders and builds awareness of EE in the lending community

On-bill offering creates simple repayment for small residential loans and some commercial loans

Municipal Options – Smart Start and on-bill offerings help municipalities move forward

Moderate Income offering can help make financing an option for more customers

Partnering with NH’s product and service providers Qualification standards and quality assurance process

encourage and ensure skilled service providers Trainings and workshops develop knowledge Expanded reach of the programs requires stronger

partnerships with more service providers

The NHSaves programs work with approximately 1,200 retailers, electricians, energy auditors, engineers, builders

and other clean technology professionals.

Sustained, Orderly Market Development

The comprehensive approach used by the programs helps homeowners, business owners and service providers understand a broad set of opportunities for reducing energy use.

Building on successful existing programs maintains a positive and steady presence in the market place so that customers and contractors have the confidence to plan ahead.

Continuous review of measures and incentive levels allows for mid-course adjustments as the market evolves.

We look forward to additional stakeholder discussion!

Thank you

Kate Peters katherine.peters@eversource.com

6/16/17