**CONSERVATION**

**RESOURCE ENERGY DATA**

**(The RED Book)**

**INTRODUCTION:**

On December 5, 1980 the 96^th^ Congress passed the Pacific Northwest
Electric Power Planning and Conservation Act (Act), Public Law 96-501.
The overall purpose of the Act is "to assist the electrical consumers of
the Pacific Northwest through use of the Federal Columbia River Power
System to achieve cost-effective energy conservation, to encourage the
development of renewable energy resources, to establish a representative
regional power planning process, to assure the region of an efficient
and adequate power supply, and for other purposes".

The Bonneville Power Administration (BPA), in compliance with the Act,
has offered various energy conservation programs for the benefit of the
Pacific Northwest consumers for the past quarter of a century. These
energy conservation programs, sponsored and funded by BPA, have been
successful due to the cooperation and assistance of BPA's electric
utility customers.

**PURPOSE:**

This document summarizes data on costs and savings pertaining to the BPA
energy conservation acquisition programs and resources. The document
provides information and references for general audiences and for use in
preparing general publications.

**ORIENTATION**

The RED Book consists of six parts. The first and second parts provide
the reader with information on the total conservation savings since
1982. The third part of this document presents information on current
conservation programs as of 2001. The fourth part offers information on
the historical conservation achievements for the period 1982 through
2000. The fifth part of the document presents expended dollars in a
table format. The sixth part offers definitions to the terms that are
used within the text and tables of the document.

**IMPORTANT NOTE FOR THE USER:**

This information is sensitive to seemingly unimportant changes in the
assumptions surrounding it. *[Use data with care]{.underline}* to ensure
that the correct characterizations of the monetary and energy figures
are communicated.

The RED Book information is presented to the nearest tenth of an average
megawatt (aMW) in most of the tables. In the charts and graphs, the
information is rounded to the nearest 5 aMW. When presenting this
information to the public, however, we recommend using "rounded" numbers
because we recognize that these data are not precise and are subject to
adjustment over time. Prior to each support table a narrative is
presented. ***A glossary of terms is provided herein for readers who are
unfamiliar with some of the terminology used in the document.***

This book contains data available through BPA's fiscal year (FY) 2005 as
reported on January 17, 2006. These data should be used as "official
data" until an updated RED Book is published next year. Adjustments to
the data are captured annually in the RED Book as information from
evaluations or other sources prove savings estimates should be increased
or decreased. Also, dollar amounts may change from one year to the next
due to revised utility reports that are submitted for previous years.

If you have any questions about how to represent or use this
information, please call one of the individuals listed below:

> Kevin O'Sullivan at (503) 230-3693
>
> Roger Maddox at (509) 358-7454
>
> TABLE OF CONTENTS

**[CONSERVATION]{.underline} [PAGE]{.underline}**

[A QUICK OVERVIEW (FY 1982-2005)]{.underline}

> Figure 1 Graph of BPA's Historical Conservation Savings 1
>
> [TOTAL ADJUSTED HISTORICAL SAVINGS (FY 1982-2005)]{.underline}
>
> Figure 2 Graph of Cumulative Adjusted Savings 2
>
> Table A BPA's Total Historical Conservation Savings 3
>
> [CURRENT CONSERVATION PROGRAMS (FY 2001-2005)]{.underline}
>
> Figure 3 Graph of Cumulative Savings 4
>
> Figure 4 Graph of Incremental Annual Savings 5
>
> Figure 5 Graph by Market Sector of Incremental Savings 5
>
> Table B Conservation Savings by Program 6
>
> [HISTORICAL CONSERVATION SAVINGS (FY 1982-2000)]{.underline}
>
> Figure 6 Graph of BPA's Cumulative Conservation Savings 7
>
> Table C Annual Conservation Savings 8-9
>
> [CONSERVATION COSTS]{.underline}
>
> Table D BPA's Total Conservation Costs by Sector 12
>
> Table E Historical Conservation Costs by Sector (FY 1982-2000) 13
>
> [GLOSSARY]{.underline}
>
> Appendix A Glossary of Terms 16-22
>
> A QUICK OVERVIEW
>
> (Figure 1)
>
> Figure 1 is a graphic portrayal of BPA's total energy conservation
> savings (FY 1982 -2005). Some savings reported in the totals have
> reached the end of the accepted measure life for particular programs
> and projects. The RED Book includes an adjustment for energy savings
> or measures where it has been determined that the measure life has
> expired.
>
> **FIGURE 1**
>
> **BPA's Total Conservation Savings**[^1]
>
> **FY 1982 -- 2005**
>
> ![](media/image1.wmf){width="5.958333333333333in"
> height="3.9166666666666665in"}

**BPA'S TOTAL HISTORICAL CONSERVATION SAVINGS**

[TOTAL CUMULATIVE SAVINGS]{.underline}

Figure 2 represents BPA's total adjusted savings from 1982 -- 2005 which
are approximately 890 aMWs. (The aMWs in the following paragraphs are
rounded to the nearest 5 aMW.)

[SECTOR SPECIFIC CUMULATIVE SAVINGS]{.underline}

BPA's adjusted savings from the various energy savings programs (FY 1982
-- 2005) resulted in 365 aMWs from the **residential** sector (includes
130 aMWs from residential building codes); 225 aMWs from the
**commercial** sector (includes 60 aMWs from commercial building codes);
and 105 aMWs from the **industrial** sector. **Agricultural** sector
savings are 15 aMWs. **Multi-sector** programs (e.g. Billing Credits,
Competitive Acquisitions, Flex Agreements, etc.) have resulted in a
total of 105 aMWs. **Market Transformation** contributed 75 aMWs. The
total adjusted energy savings from all activities is 890 aMWs through FY
2005.

**FIGURE 2**[^2]

**BPA\'S Cumulative Adjusted Conservation Savings**

**aMW by Sectors**

**FY 1982 -- 2005**

![](media/image2.wmf){width="6.495833333333334in"
height="3.2847222222222223in"}

Table A provides the reader with information on the total incremental
energy savings for 1982 through 2005. The table includes an adjustment
column for those savings that have matured and are no longer providing a
benefit to the region.

**TABLE A**

**BPA's TOTAL CONSERVATION SAVINGS** [^3]**-**[^4]**-**[^5]**-**[^6]

**(FY 1982 -- 2005)**

**Incremental aMW**

![](media/image3.wmf){width="8.658333333333333in"
height="3.7284722222222224in"}

**[CURRENT CONSERVATION PROGRAMS]{.underline}**

In 2001 BPA offered new conservation programs to utility customers under
the Conservation Augmentation (ConAug) and the Conservation & Renewables
Discount (C&RD) Programs. Early acceptance by a few utilities provided
energy savings of those programs in the summer of 2001 albeit the
programs officially started in fiscal year 2002. In addition, the State
Low Income Weatherization Program is funded by BPA for the states of
Oregon, Washington, Idaho and Montana. Market Transformation continues
to be a viable energy savings opportunity for the Pacific Northwest
Region. There are Building Code savings through fiscal year 2004 that
accounts for savings within the region. BPA only reports savings that is
achieved within its service territory.

Figure 3 is a representation of the cumulative effect of the current
programs. ConAug has cumulative savings in the amount of 75 aMW; C&RD
has provided a total of 55 aMW; State Low Income Weatherization Program
achievement is 2 aMW; and Market Transformation has delivered 65 aMW.
The Building Code savings accounts for 35 aMW. The total savings
achieved during the period 2001 through 2005 is 230 aMW.

**FIGURE 3**

**Current Conservation Programs**

**Cumulative aMW Savings**

**FY 2001 -- 2005**

![](media/image4.wmf){width="5.84375in" height="3.2395833333333335in"}

Figure 4 depicts the annual energy savings attained by the current
conservation programs for fiscal years 2001 through 2005.

**FIGURE 4**

**Current Conservation Programs**

**aMW Savings**

**FY 2001 - 2005**

![](media/image5.wmf){width="6.492361111111111in"
height="2.9305555555555554in"}

Figure 5 represents the annual acquisition within each market sector for
the current programs.

**FIGURE 5**

**Current Conservation Programs**

**Annual Incremental aMW**

**FY 2001 -- 2005**

![](media/image6.wmf){width="6.496527777777778in"
height="3.3833333333333333in"}

Table B provides the reader with information on the total incremental
energy savings for 2001 through 2005. Adjustments to the savings occur
on an annual basis. These adjustments are a result of evaluations
performed or revised reports submitted by utilities for previous years.

**TABLE B**

**BPA's CURRENT CONSERVATION SAVINGS**

**BY PROGRAM (FY 2001 -- 2005)**

**Incremental aMW** [^7]

![](media/image7.wmf){width="6.49375in" height="7.315972222222222in"}

Figure 6 represents the annual acquisition within each market sector.

**FIGURE 6**[^8]

**Historical Conservation Programs**

**aMW Savings**

**FY 1982 - 2000**

![](media/image8.wmf){width="6.495138888888889in"
height="3.2916666666666665in"}

Table C provides information on the historical programs for the period
1982 through 2000. The total energy savings achieved during this time
period is 575 aMW.

**TABLE C**

**BPA's CONSERVATION SAVINGS (aMW)**

**FY 1982--2000**

![](media/image9.wmf){width="6.465972222222222in"
height="5.888888888888889in"}

**TABLE C (continued)**

**BPA's CONSERVATION SAVINGS (aMW)**

**FY 1982--2000**

![](media/image10.wmf){width="6.465972222222222in"
height="4.929861111111111in"}

**BPA'S HISTORICAL CONSERVATION SAVINGS** **FY** **1982-2000**

**NOTES ON TABLE C:**

[ACHIEVED SAVINGS:]{.underline}

The reported average megawatt (aMW) savings *are first year savings
only* and not the true measure life or program life savings. Measure
life is the estimated median time a measure will remain in place, or
whenever the structure in which a measure is installed ceases to exist.

[ADJUSTED SAVINGS:]{.underline}

The adjusted savings reflect, in some cases, the end of a measure life
when BPA assumes the measures are no longer producing savings. In
addition, the adjusted savings may reflect findings from evaluations
that show savings are more or less than expected when the program was
initiated.

[LINE LOSS:]{.underline}

Reported savings include transmission and distribution line-loss credit
savings of 7.5 percent for direct acquisition programs and 2.5 percent
for ConMod. This adjustment is made to account for transmission and
distribution line losses avoided through the acquisition of
conservation.

During the transmission and distribution of electricity, a certain
amount of electricity is lost due to electrical resistance inherent in
conductors. Since conservation causes less electricity to be consumed by
the end-uses, less electricity is transmitted and, therefore, less
electricity is lost and less is needed to be generated. BPA credits its
conservation with the line-loss savings. This adjustment allows
conservation and generation savings to be compared from the same point
in the electrical system often referred to as the "bus bar".

[FUEL CHOICE:]{.underline}[^9]

In 1993, BPA analyzed the following programs for possible fuel choice
switching effects: Residential Weatherization, Manufactured Housing
Acquisition Program (MAP), New Residential, Energy Smart Design (ESD),
and Water Heating. These analyses concluded that the Residential
Weatherization program had no fuel choice effect and only a modest
effect on the Water Heating program.

However, a fuel choice effect was found in the New Residential sector
and MAP. This analysis concluded that the 1993 new residential program
incentives from Long Term Super Good Cents (LTSGC), Super Good Cents
(SGC), Washington State Energy Code, and/or Northwest Energy Code, and
the MAP program do affect fuel choice. The report states that the
incentives paid to build energy efficient electrically-heated homes
throughout the region appear to be causing approximately 8 percent of
the certified LTSGC homes and 6 percent of the new manufactured homes to
be built using electricity when, absent the incentives, natural gas
would have been the preferred fuel. The fuel choice impacts noted in the
report are the result of builders responding to the available incentives
from all the programs in their area.

In the Commercial Sector, a similar fuel choice impact was found in the
ESD program where analysis concluded that incentives did effect fuel
choice decisions for HVAC equipment and water heating units. The
incentives resulted in unintended fuel choice effects that accounted for
3 percent of the program savings occurring because the participants
selected electricity instead of natural gas. The above fuel choice
effects are incorporated into the program savings for LTSGC, MAP, and
ESD.

[BUILDING CODES:]{.underline}

Building Code savings are a result of new building codes that were
passed in 1985 and MCS (or codes close to MCS) that were implemented in
Washington in 1991 and in Oregon, Idaho, and Montana in 1992. Commercial
MCS were implemented in Washington in 1994 and in Oregon in 1996.
Savings from building codes and MCS are estimated through a
backward-looking methodology in the load forecast and, therefore, are
only approximate.

Residential Code savings from 2003 forward are no longer counted and the
Commercial Code savings are no longer counted as of 2005 since it is
likely that codes would have reached current standards by now. In 2003,
Idaho adopted a code equivalent to the 1988 MCS. Oregon and Washington
codes have gone beyond MCS at this point, and current practice in
Montana appears to be equivalent to the MCS. Although the national
energy codes and international energy codes upon which Idaho codes were
finally based may have been influenced by MCS efforts in the Pacific
Northwest, it is appropriate to stop counting additional new benefits
due to BPA's efforts in the 1980s and 1990s.

**TOTAL BPA CONSERVATION COSTS**

**(See Tables D & E)**

[TABLES D & E]{.underline}

BPA spent approximately \$2.1 billion on conservation efforts from FY
1982 -- 2005. Acquisition expenditures were: residential, \$1.1 billion;
commercial, \$403 million; industrial, \$180 million (includes \$48
million for ConMod); agricultural, \$32 million; and multi-sector
acquisitions, \$156 million. Conservation support and other costs make
up an additional \$235 million.

**Table D**

**Total BPA Conservation Costs**

**Dollars (\$000's)**

![](media/image11.wmf){width="6.893055555555556in" height="6.8in"}

**Table E**

**BPA Energy Conservation Costs**

**1982 - 2000**

**Dollars (000's)** [^10]

![](media/image12.wmf){width="9.666666666666666in"
height="4.934027777777778in"}

**NOTES ON TABLES D & E:**

The costs in the tables are "accrued" expenditures -- the amount
actually invoiced in a given year. The expenditures reported have been
"loaded" to include all direct costs (measure costs, installation,
administrative, and program evaluation costs) related to conservation,
indirect costs associated with BPA's Energy Efficiency Program (load
forecasting, planning, and economic analysis) and a share of other
corporate overhead. The costs reported in the table do not include
interest expense on conservation borrowing.

BPA's historical conservation costs have not always been reported
consistently from year to year. Prior to 1988, costs were allocated to
specific sectors and to resource planning. Starting in 1988, some
resource planning costs were allocated to specific sectors. In addition,
two new cost categories were created: multi-sector acquisitions and
miscellaneous costs. (Misc. costs have now been replaced with other
categories.) Although this change in categories makes it difficult to do
a year-by-year comparison of sector costs, the change more accurately
reflects expenditures. Multi-sector Acquisitions cover more than one
sector and include costs for billing credits, competitive acquisitions,
and financial and technical assistance programs. Program and support
costs are not sector specific and consist of resource planning costs and
various overhead costs associated with conservation activity through FY
1986. Program and support costs shown in FY 1996 are costs related to
the new Energy Efficiency organization. In FY 1995, BPA was reorganized
and also implemented a new accounting system. This resulted in some
changes in how costs were accounted for and reported. Every attempt was
made to allocate the appropriate costs to the correct categories.

BPA has performed a thorough review of conservation costs. Third party
costs have been realigned to show them consistent with Federal Treasury
borrowing (capital costs) which are tracked as the money is spent. Third
party financing costs have been reassigned to the first five years after
the bonds proceeds were made available.

SPECIAL NOTE:

To get an estimate of per-unit conservation costs, it is tempting to
divide the dollars in Tables D and E by the energy savings in Tables A,
B or C. This would supposedly yield an "average cost per megawatt".
While this may seem useful, BPA generally considers this to be an
inappropriate way to measure resource costs. First, this method of
estimation does not take into consideration the varying lifetimes and
characteristics of energy resources. For example, 1 aMW of energy
savings from a new residential building code program having an expected
lifetime of 70 years cannot be equated with 1 aMW of savings from a
program having a much shorter life.

Secondly, the simple division method is inappropriate because:

Some savings were achieved in Pay for Performance or Competitive
Acquisition contracts. These savings are reported as first year savings
while the cost is paid from year-to-year expense budgets over a number
of years.

Most savings were paid for from the capital budget and costs were
amortized through federal borrowing. Our cost for these projects shows
up as the capital cost and not the year-to-year amortization payments.
The way we treat savings, therefore, is consistent year-to-year while
the costs are a mixture of predominantly capital with a substantial
expense component.

Our cost tables make no distinction between capital and expense
payments. This means not all year-to-year costs can be directly compared
to any single year savings reported.

Glossary of Terms

+--------------+-------------------------------------------------------+
| aMW:         | Average megawatts (aMW) refers to unit of energy      |
|              | output over a year, equivalent to the energy produced |
|              | by the continuous operation of one megawatt of        |
|              | capacity over a period of time; also an average of    |
|              | one million watts transferred over a period of time   |
|              | (often a year, thus average annual megawatts). One    |
|              | aMW is the equivalent of 8,760,000 kWh (24            |
|              | hrs/day\*365 days/year\*1000).                        |
+--------------+-------------------------------------------------------+
| Billing      | Adjustment to the BPA customer's electric power bill  |
| Credit       | or the equivalent cash payment for a reduction in the |
|              | customer's net requirement of capacity and energy     |
|              | purchased from BPA resulting from a conservation      |
|              | activity independently undertaken.                    |
+--------------+-------------------------------------------------------+
| C&I:         | This refers to the Commercial and Industrial (C&I)    |
|              | sectors and programs that serve both sectors.         |
+--------------+-------------------------------------------------------+
| C&RD:        | The Conservation and Renewable Discount (C&RD) is a   |
|              | component of BPA's 2002 Wholesale Power Rates. C&RD   |
|              | is a credit that is available to BPA's regional       |
|              | wholesale power customers that take action to further |
|              | conservation and renewable resource development in    |
|              | the region.                                           |
+--------------+-------------------------------------------------------+
| CFL:         | This refers to an efficient electric light used       |
|              | primarily in residential applications. The initials   |
|              | are from the name compact fluorescent light (CFL), a  |
|              | fluorescent bulb that normally can be screwed into    |
|              | any normal lighting fixture in homes. There are some  |
|              | models that can only be screwed into special fixtures |
|              | designed to insure the lights are not replaced with   |
|              | normal incandescent light bulbs.                      |
+--------------+-------------------------------------------------------+
| Competitive  | BPA's process of soliciting and selecting             |
| Acquisition: | conservation and generating resources from customers  |
|              | and non-customers for long-term use by means of       |
|              | systematic criteria.                                  |
+--------------+-------------------------------------------------------+
| > ConAug:    | Conservation Augmentation (ConAug) is a resource      |
|              | acquisition component of BPA\'s system augmentation   |
|              | effort intended to reduce BPA\'s load obligation      |
|              | through mechanisms for delivering energy savings.     |
+--------------+-------------------------------------------------------+
| ConMod:      | Conservation Modernization (ConMod) is a legacy       |
|              | conservation program designed to save energy in the   |
|              | Northwest aluminum industry. The program was designed |
|              | to save energy by offering a 5-mill incentive for     |
|              | every kWh of energy saved to produce 1 pound of       |
|              | aluminum.                                             |
+--------------+-------------------------------------------------------+
| Conservation | Conservation means any reduction in electric energy   |
|              | consumption resulting from an increase in the         |
|              | efficiency of electric energy use, production, or     |
|              | distribution, or the direct application of a          |
|              | renewable resource.                                   |
+--------------+-------------------------------------------------------+
| Conservation | A project or program deemed as a conservation effort. |
| activity     |                                                       |
+--------------+-------------------------------------------------------+
| Co           | Consumer-owned utility can include a municipal        |
| nsumer-owned | electric utility, a public utility district, an       |
| utility      | irrigation district, a cooperative, a mutual          |
|              | corporation or association that is engaged in the     |
|              | business of distributing electricity to one or more   |
|              | retail electric customers.                            |
+--------------+-------------------------------------------------------+
| CREUS:       | This was a Commercial and Residential End Use Study   |
|              | (CREUS) that provided electric energy usage           |
|              | information on various types of loads typically found |
|              | in either commercial or residential buildings.        |
|              | Businesses and homes were randomly selected           |
|              | throughout the region and various end use loads were  |
|              | monitored for several months. The data was collected  |
|              | and analyzed. A few businesses installed some         |
|              | measures during 1989 based on the energy use data.    |
+--------------+-------------------------------------------------------+
| Direct       | This refers to programs that pay for energy           |
| Acquisition: | efficiency measures that result directly from actions |
|              | taken, such as installing measures, rather than by    |
|              | paying someone for activities like code enforcement   |
|              | or other programs that indirectly cause conservation  |
|              | to occur. Acquisition is a term from the regional act |
|              | and is used in conservation where that activity is    |
|              | equivalent to and as reliable as acquiring actual     |
|              | generation produced energy. Under the regional act    |
|              | acquisition of energy, whether through conservation   |
|              | or through generation, must be done under contracts   |
|              | that allow for rigorous verification.                 |
+--------------+-------------------------------------------------------+
| Directly     | Direct-service industries and also Federal agencies   |
| Served       | that buy electricity from BPA for their own use.      |
| Customer     |                                                       |
+--------------+-------------------------------------------------------+
| Direct       | Industrial customers, primarily aluminum smelters,    |
| Service      | which purchase power directly from BPA.               |
| Industries   |                                                       |
| (DSI)        |                                                       |
+--------------+-------------------------------------------------------+
| Energy       | Materials or equipment installed or activities        |
| Conservation | implemented to produce electric energy savings. A     |
| Measures     | specific action or installed device that saves        |
| (ECMs):      | energy. Also referred to as a conservation measure.   |
+--------------+-------------------------------------------------------+
| Energy       | A conservation program that acquires energy savings   |
| Savings Plan | specifically from conservation projects in the        |
| (ESP):       | industrial sector.                                    |
+--------------+-------------------------------------------------------+
| ESD:         | Energy Smart Design (ESD) was a legacy program        |
|              | initially designed to award builders for significant  |
|              | savings features in new commercial building. It       |
|              | eventually became a standard design program to        |
|              | increase efficiency above codes and to change         |
|              | building practices to bring about codes enforcing     |
|              | higher building efficiency standards.                 |
+--------------+-------------------------------------------------------+
| ESO          | This stands for the Expanded Standard Offer (ESO) for |
|              | commercial and industrial lighting under ConAug based |
|              | upon set payments for specific lighting measures that |
|              | save energy above standard lighting practices.        |
+--------------+-------------------------------------------------------+
| ESP:         | Energy Savings Program (ESP) was a legacy             |
|              | conservation program that provided incentives for     |
|              | improvements in energy efficiency in industrial       |
|              | processes (other than in the aluminum industry, see   |
|              | Con Mod). This program served both new and existing   |
|              | industries. The program depended upon good audits or  |
|              | design reviews to identify potential cost effective   |
|              | savings. Actual savings and the amount of incentive   |
|              | paid were determined through pre and post metering    |
|              | for existing industrial processes or between          |
|              | estimated use and actual metered use in new           |
|              | industrial plants.                                    |
+--------------+-------------------------------------------------------+
| Federal      | A key principle in Federal is that BPA funds must     |
|              | produce incremental conservation that would otherwise |
|              | not be delivered. Its start in late January 2001      |
|              | began to develop load reduction projects at federal   |
|              | properties in Pacific Northwest load following        |
|              | service areas.                                        |
+--------------+-------------------------------------------------------+
| Finance CIPP | Commercial Incentive Pilot Program (CIPP) was payment |
|              | for performance endeavor under BPA sponsorship that   |
|              | provided financial reimbursement to utilities for     |
|              | energy conservation measures installed by commercial  |
|              | customers.                                            |
+--------------+-------------------------------------------------------+
| First Year   | Most Bonneville programs are reported in terms of the |
| Savings:     | savings that occur in one year's time. In fact, the   |
|              | cost effectiveness of measures is based on the        |
|              | expected life of the measure. Measures often last 10, |
|              | 20 or mores years. Therefore to calculate total       |
|              | savings one must take the first year savings times    |
|              | the measure life.                                     |
+--------------+-------------------------------------------------------+
| Fiscal Year  | A twelve-month accounting period used by the Federal  |
| (FY)         | Government that goes from October 1st to September    |
|              | 30th.                                                 |
+--------------+-------------------------------------------------------+
| Flex         | This refers to contracts with Utilities to use money  |
| Agreements:  | "flexibly" from one program or sector to another      |
|              | without seeking approval on each change. This         |
|              | provided utilities with the opportunity to move funds |
|              | provided by Bonneville from sector to another where   |
|              | there are cost effective opportunities without going  |
|              | through an approval process. The program required     |
|              | that the average cost per kWh saved would be equal to |
|              | or less than the average cost for conservation were   |
|              | it allocated out into the various individual programs |
|              | that had been available to the utilities. For         |
|              | example, residential weatherization cost more than    |
|              | industrial so if the utility increased expenditures   |
|              | on residential above the allocated budget it must     |
|              | find other less costly kWh savings or repay the       |
|              | difference to Bonneville.                             |
+--------------+-------------------------------------------------------+
| Fuel Choice: | This term refers to the possible unintended result    |
|              | that someone might choose to use electrical energy    |
|              | rather than gas or another fuel due to incentives for |
|              | energy efficiency measures for electrically heated    |
|              | homes or electrical industrial and commercial uses.   |
+--------------+-------------------------------------------------------+
| HVAC:        | Heating, ventilation and air conditioning systems     |
|              | (HVAC) include furnaces, ducts, air control system    |
|              | filters, baffles, motors, vents, sensors and          |
|              | chillers. These systems present many different        |
|              | efficiency improvement opportunities. HVAC systems    |
|              | are found in houses and industries but the primary    |
|              | use of the term is associated with cooling, heating   |
|              | and venting of air within large commercial            |
|              | structures.                                           |
+--------------+-------------------------------------------------------+
| Incremental  | A certain amount of conservation may take place       |
| Savings:     | without Bonneville acquisition. Incremental           |
|              | conservation is that reduction in loads below that    |
|              | which would have occurred due to the actions of       |
|              | others and in the absence of a particular program.    |
|              | The ConAug and C&RD programs are designed to capture  |
|              | incremental savings.                                  |
+--------------+-------------------------------------------------------+
| In           | Investor-owned utility means a corporation owned by   |
| vestor-owned | investors that meets the definition of electrical     |
| utility      | company and is engaged in distributing electricity to |
| (IOU)        | more than one retail electric customer.               |
+--------------+-------------------------------------------------------+
| IRLC:        | This refers to the Conservation Augmentation contract |
|              | that utility customers began signing in FY 2001. It   |
|              | stands for "Invitation to Reduce Load through         |
|              | Conservation" (IRLC). Various energy conservation     |
|              | measures are authorized for installation through the  |
|              | IRLC portion of contracts. The umbrella contract for  |
|              | each utility is a Purchase of Conservation Agreement  |
|              | (PCA).                                                |
+--------------+-------------------------------------------------------+
| Irrigation   | Conservation measures to reduce operating pressure,   |
| Hardware:    | pipeline and pump modifications. The equipment can    |
|              | include items such as sprinklers, pumping plants,     |
|              | fittings, and mainlines.                              |
+--------------+-------------------------------------------------------+
| Irrigation   | By careful measurement of soils for water content,    |
| Scheduling:  | air temperatures, wind speed and other weather        |
|              | information irrigation can be scheduled in such a way |
|              | that crop growth is optimized and water use reduced.  |
|              | By using less water, electricity is saved and less    |
|              | water must be pumped up to the fields and forced      |
|              | through the sprinkler system.                         |
+--------------+-------------------------------------------------------+
| Legacy:      | Legacy refers to all conservation activities started  |
|              | prior to the year 2000, of which, only a few are      |
|              | still operating. Among those are the "Low-Income      |
|              | Weatherization Program", "The Energy Northwest" pay   |
|              | for performance contract, the "Tacoma Fort Lewis"     |
|              | program and some others with minor savings impacts.   |
+--------------+-------------------------------------------------------+
| Line Loss:   | The electric energy lost (dissipated) in transmission |
|              | and distribution lines. Varies with the current       |
|              | (amperes) of the line.                                |
+--------------+-------------------------------------------------------+
| Lo           | Load-following generally refers to automatic          |
| ad-following | adjustments in generation which follow changes in     |
|              | customer load in order to maintain a continuous       |
|              | balance between loads and generation.                 |
+--------------+-------------------------------------------------------+
| Long Term    | This is the final version of the New Residential      |
| Super Good   | Construction program that was designed to save energy |
| Cents:       | and to influence code development. The Long Term      |
|              | refers to the fact that this program was increased    |
|              | above the existing code standards and was to be       |
|              | available for some years after codes were achieved.   |
+--------------+-------------------------------------------------------+
| Low income   | Low income means household income that is at or below |
|              | one hundred twenty-five percent of the federally      |
|              | established poverty level.                            |
+--------------+-------------------------------------------------------+
| Low Income   | Weatherization of the residences of low-income        |
| Residential  | households helping conserve energy resources in       |
| We           | states and reducing the need to obtain energy from    |
| atherization | more costly conventional energy resources. The        |
| (States)     | program mitigates the rising energy costs that make   |
|              | it difficult for low-income citizens of a state to    |
|              | afford adequate fuel for residential space heat.      |
+--------------+-------------------------------------------------------+
| LSO          | Limited Standard Offer (LSO) was the first Standard   |
|              | Offer made to utilities within the ConAug program. It |
|              | provided incentives for commercial buildings based    |
|              | upon set payments for specific lighting measures that |
|              | saved energy above standard lighting practices.       |
+--------------+-------------------------------------------------------+
| MAP:         | This is a program for Manufactured home building. The |
|              | program requires Super Good Cents building standards  |
|              | be certified at the factory. The home is then subject |
|              | to a site "set up" inspection as well in many         |
|              | instances. The acronym stands for Manufactured Home   |
|              | Acquisition Program (MAP).                            |
+--------------+-------------------------------------------------------+
| > Major      | Energy conservation projects that involved industrial |
| > Plants     | plants with significant electric loads.               |
+--------------+-------------------------------------------------------+
| > Market     | This is a program designed to cause new technologies  |
| > Tra        | to be built or accepted as standard practice. The     |
| nsformation: | Super Good Cents would be an example of a program     |
|              | designed to change the home building standards and    |
|              | thus the market. The term now refers to a specific    |
|              | programmatic effort that is done by Bonneville, the   |
|              | IOUs and a few large Public Power Utilities called    |
|              | the Regional Forum. The standards for new             |
|              | technologies and the programs to be implemented are   |
|              | designed and approved through the Regional Forum.     |
|              | Each of the member utilities contributes funds for    |
|              | programs and serves on the Forum.                     |
+--------------+-------------------------------------------------------+
| Mill         | A unit of monetary value equal to 1/10^th^ of a cent. |
+--------------+-------------------------------------------------------+
| MCS:         | This is the abbreviation for the Model Conservation   |
|              | Standards (MCS). These standards were called for in   |
|              | the Regional Power Planning and Conservation Act (The |
|              | Regional Act.) The Regional Council, the policy group |
|              | authorized through the act to set standards and plan  |
|              | for future conservation and power acquisition, and    |
|              | Bonneville Power worked to set the Model Conservation |
|              | Standards and to encourage utilities to create        |
|              | programs to begin promoting such standards. The MCS   |
|              | was designed as an early step in bringing around the  |
|              | Energy Efficiency Code Standards which three of the   |
|              | four Northwest States served by Bonneville eventually |
|              | adopted.                                              |
+--------------+-------------------------------------------------------+
| M            | Multi-sector is a catch all term for a pseudo         |
| ulti-sector: | "sector" in contracts that make no distinct           |
|              | identification for application within a specific      |
|              | sector from which the energy savings are achieved.    |
+--------------+-------------------------------------------------------+
| ODOE -       | BPA's support of the Oregon Department of Energy      |
| Schools      | (ODOE) program for conservation assistance for        |
|              | schools.                                              |
+--------------+-------------------------------------------------------+
| Payment for  | Mechanism wherein payments are made over time as      |
| performance  | energy savings are verified and gives utilities the   |
|              | autonomy they have requested and builds their         |
|              | capability to be a reliable source of conservation.   |
+--------------+-------------------------------------------------------+
| PECI         | Alternative service provider, Portland Energy         |
|              | Conservation, Inc (PECI) is in the business to assist |
|              | in the delivery of commercial and industrial lighting |
|              | conservation.                                         |
+--------------+-------------------------------------------------------+
| PSP&L (PSE): | These are initials for Puget Sound Power and Light    |
|              | (now doing business as Puget Sound Energy), an        |
|              | investor owned utility (IOU) that serves some of the  |
|              | larger cities and denser communities in the Puget     |
|              | Sound region.                                         |
+--------------+-------------------------------------------------------+
| Sector:      | This is a marketing term used to refer to some        |
|              | segment of a market. For example, in Energy           |
|              | Efficiency, this term refers to Residential,          |
|              | Commercial, Industrial and Agricultural customers.    |
|              | Each sector implies a different approach and program  |
|              | design specific to its contents.                      |
+--------------+-------------------------------------------------------+
| Super Good   | This was the very successful marketing and incentive  |
| Cents:       | based program that transformed the market for         |
|              | building homes in the Northwest. The program was      |
|              | marketed with award winning commercials and marketing |
|              | campaigns. Houses built to the standards also were    |
|              | sold with an incentive to encourage more acceptances. |
|              | This program was a key part of the code programs that |
|              | followed.                                             |
+--------------+-------------------------------------------------------+
| System       | BPA's System Efficiencies refers to transmission line |
| Efficiencies | and transformer improvements that save energy, such   |
|              | as lower loss transformers (silicon core),            |
|              | reconductoring distribution lines with higher         |
|              | voltage - lowering losses, CVR - conservation voltage |
|              | reduction - lowering the voltage on distribution      |
|              | lines during low load time periods to save energy.    |
+--------------+-------------------------------------------------------+
| Targeted     | A contract providing flexibility both to determine    |
| Acquisition: | the pace of a utility's delivery of conservation and  |
|              | to select the type of conservation produced.          |
+--------------+-------------------------------------------------------+
| Targeted     | Local utilities create and offer commercial           |
| Acquisition  | conservation programs for their customers and BPA     |
| Process      | purchases verified energy savings.                    |
| (TAP)        |                                                       |
+--------------+-------------------------------------------------------+
| TAS's Tech.  | Technical Assistance Information was provided by the  |
| Assist.      | various State Energy Offices for the Institutional    |
| Info.        | Program (primary and secondary schools). This was a   |
|              | DOE sponsored effort with support from BPA and the    |
|              | States.                                               |
+--------------+-------------------------------------------------------+
| Third Party  | A financial arrangement between BPA and other         |
| Financing:   | entities to use sources of capital other than BPA's   |
|              | borrowing authority from the US Treasury or           |
|              | congressional appropriations to fund new capital      |
|              | assets.                                               |
+--------------+-------------------------------------------------------+
| Utility      | Electric utility that is either a consumer-owned or   |
|              | investor-owned utility.                               |
+--------------+-------------------------------------------------------+
| Vending      | A program to install energy savings controllers       |
| Miser:       | called the "Vending Miser" which cycles vending       |
|              | machines off and on during times in which usage has   |
|              | been minimal. The on/off cycle does maintain the      |
|              | necessary refrigeration quality of the products sold. |
+--------------+-------------------------------------------------------+
| Water/Waste  | Bonneville began this program in wastewater treatment |
| Water        | plants in locations served by load-following          |
|              | customers in March 2001 to reduce energy use. Water   |
|              | and wastewater facilities are the largest or second   |
|              | largest energy user in a community.                   |
+--------------+-------------------------------------------------------+
| We           | Weatherization means materials or measures, and their |
| atherization | installation that are used to improve thermal         |
|              | efficiency.                                           |
+--------------+-------------------------------------------------------+

[^1]: All numbers are rounded to the nearest 5 aMW. Previous RED Book
    versions of this graph contained ConMod Savings. We have removed
    that component from the RED Book as of the April 2004 production.
    The Region is no longer receiving conservation benefits from the
    aluminum industry due to the economic downturn of the industry.

[^2]: ConMod savings have been removed from the graph. The Region no
    longer receives conservation savings from the aluminum industry due
    to the economic downturn of the industry.

[^3]: Includes transmission line loss credit savings.

[^4]: The savings achieved related to irrigation scheduling are not
    included in the total column. These are one year savings and do not
    carry over to other years.

[^5]: Market Transformation includes only BPA's share and not regional
    market transformation savings.

[^6]: The numbers may not agree when added vertically and horizontally
    due to rounding effects and irrigation savings (see Footnote 4).

[^7]: Under the Agricultural Sector, irrigation scheduling projects have
    a one-year life cycle. Therefore, 12.4 aMW has been adjusted in
    order to exclude it from the total column.

[^8]: Multi-Sector is a term used as a pseudo "sector" that makes no
    distinction in a specific sector for the savings achieved.

[^9]: Fuel choice effects occur when a consumer decides to change fuel
    sources from what would have been done absent the program. Of
    concern here is a decision to stay with electricity due to the
    increased efficiency when the consumer may have decided to use
    natural gas or another fuel instead.

[^10]: Program and Program Support Costs includes the overhead costs of
    the Energy Efficiency Group and other conservation support costs.