Energy Trust of Oregon, Inc. 851 SW Sixth Avenue, Suite 1200 Telephone: 1-866-368 -7878

www.energytrust.org Portland, Oregon 97204 Facsimi le: 503-546-6862 

# Energy Trust of Oregon 2007 Annual Report April 15, 2008Energy Trust of Oregon 2007 Annual Report April 15, 2008

2 

## Table of Contents Page

I Message from the Executive Director 3

II Background, Mission and Goals 5

III 2007 Highlights 5

IV Revenues and Expenditures 7

V Savings and Generation 8

VI 2007 Performance Measures 9

VII Projects Completed 12

Appendix

2002-2007 Progress toward 2012 Goals 13 Energy Efficiency Program Descriptions 14 Renewable Energy Program Descriptions 15 2007 Energy Trust Board of Directors 16 Board Development Guidelines 18 2007 Advisory Council Members and Meetings 19

2007 Call Volumes and Web Visits 20

Audited Financial StatementsEnergy Trust of Oregon 2007 Annual Report April 15, 2008

3 

## I Message from the Executive Director

Over five years ago Energy Trust of Oregon, Inc., i ssued its first incentive payment. A $250 check, da ted June 10, 2002, was delivered to a contractor to sea l the heating ducts in a manufactured home. Since then, Energy Trust has cut thousands of incentive c hecks and provided personal assistance to help Oregonians make their homes and businesses more ene rgy efficient and to generate clean energy.

In March 2007, five years after opening its doors, Energy Trust proudly celebrated the progress Oregonians are making toward a clean energy future. During this past year, we’ve reflected on the dramatic turnaround in public opinion about global warming, evidenced by the variety of actions taken to create a more energy independent and sustainable Oregon.

Propelled by the powerful “green wave,” Energy Trus t made great gains in 2007. Our electric efficiency programs saved 35 average megawatts in 2007, with c umulative results equal to 59% of our goal of saving 300 average megawatts by 2012. While 2007 ga s savings remained constant compared to 2006, the three-year rolling average—the basis upon which the Oregon Public Utility Commission sets our minimum performance measures—increased by almost 40 %.

Renewable energy programs also gained significant g round in 2007, with generation exceeding any previous year. Solar electric and solar water heati ng installations increased 40-50%, depending upon t he type. One utility scale wind project, Biglow Canyon , was completed with PGE. Goodnoe Hills, our second utility scale wind project with PacifiCorp, is headed toward completion in mid-2008. When all projects committed and scheduled for completion by 2010 are tallied, our cumulative renewable energy generation is projected to equal 75% of our ambitio us 2012 direct acquisition goal of 150 average

megawatts.

In 2007 alone, total electric savings and generatio n is enough to power 64,000 homes, while we saved enough gas to heat 4,400 homes. Cumulatively, from 2002 through 2007 we have saved and generated enough clean electricity to power 173,000 homes and saved enough natural gas to heat 13,000 homes.

Remarkably, while both savings acquisition and gene ration grew in 2007, they did so at a lower cost. T he levelized cost of electric savings decreased to 1.4 cents per kilowatt hour, compared to 1.6 cents per kilowatt hour in 2006. Earlier in 2007, the Oregon Public Utility Commission approved increasing the levelized cost per annual therm saved from 30 cents to 40 cents; actual cost for annual therms saved i n 2007 was 33 cents.

While 2007 savings and generation topped all previo us years, there was some foreshadowing of a weakening economy. For instance, while the number o f ENERGY STAR® new homes certified in 2007 exceeded 2006 numbers, it fell short of the 2007 ta rget. By contrast, results for existing homes, exis ting and new buildings, and industrial projects remained stable. With energy costs continuing to rise while access to capital falls, the business case for ener gy efficiency keeps getting stronger.

Energy Trust’s operating model bodes well for Orego n’s economy and our environment. Participation in our trade ally network increased to over 800 in 200 7. Many trade ally businesses credit Energy Trust f or their stability and growth. The millions of dollars Energy Trust has invested in clean energy have off set over 450,000 tons of carbon dioxide generated by fo ssil fuels 1 , the equivalent of taking over 80,000 cars off the road for a year.

1 Source: Phil Carver, Oregon Department of Energy, 2 .08 lbs in Pacific Power service territory and 1.06 lbs in PGE’s service territory of carbon dioxide reduction per kWh of ene rgy saved or generation using renewable resources, 11.7 lbs of carbon dioxide reduction per therm saved.Energy Trust of Oregon 2007 Annual Report April 15, 2008

4 2007 was a pivotal year for Energy Trust. The 2007 Oregon Legislature passed an aggressive Renewable Energy Act, shifting Energy Trust efforts to smalle r scale renewable projects of 20 average megawatts or less. This same act paved the way for significant i nfusions of additional energy efficiency funds in 2 008. Going forward, Energy Trust will be able to serve e ven more Oregonians with our programs.

We thank all those we have worked with this past ye ar to successfully deliver our programs. In additio n, we wish to acknowledge our program participants, wh o demonstrate how to save, use and produce energy in a way that is better for us all. We look forward to building upon the momentum created in 2007, making the energy future for our state ever b righter.

Margie Harris, Executive DirectorEnergy Trust of Oregon 2007 Annual Report April 15, 2008

5 

## 11 Background, Mission and Goals

A. Background On March 1, 2007, Energy Trust marked five years of investing utility public purpose funds to help Oregonians benefit from energy efficiency improveme nts and renewable energy generation. We are funded by and provide services to Oregon customers of Portland General Electric, Pacific Power, NW
Natural, Cascade Natural Gas and Avista.

Of Energy Trust’s 10 programs, six are managed inte rnally and four

— the residential and commercial efficiency programs

— are managed by contractors. Within most programs, s ervices are delivered by specialized providers who represent a network of ov er 800 business trade allies from around the state. Our work is shaped by two advisory councils and is led by a diverse board of directors who volunteer their time and expertise. Via contract with the Ore gon Public Utility Commission, we also comply with minimum requirements they establish for our perform ance.

B. Mission The Energy Trust mission is to “ change how Oregonians produce and use energy by inv esting in efficient technologies and renewable resources that save doll ars and protect the environment.”

C. Vision Imagine meeting the future energy needs of Oregonia ns in a way that lowers energy cost, adds comfort to homes, strengthens our economy and leaves our en vironment healthier for generations to come. This will happen when we choose to use energy more efficiently and develop renewable energy resources. The people at Energy Trust are committed to this future.

D. 2012 Goals 2

1. Save 300 average megawatts of electricity.

2. Save 21 million annual therms of natural gas.

3. Help Oregonians meet 10 percent of their electricit y needs from renewable resources.

4. Expand participation by customers that have been ha rd to reach historically.

5. Help businesses thrive by promoting energy efficien cy and renewable energy.

6. Encourage Oregonians to integrate energy efficiency and renewable energy in daily life.



## III 2007 Highlights

A. General

• Helped over 48,000 Oregon homeowners, renters and b usinesses save energy and money—

about even with the number served in 2006. In addit ion to these numbers, over 920 thousand compact fluorescent light bulb packages were sold a t retail outlets, installed during home energy reviews or otherwise provided—up threefold from 200 6, and influenced by efforts of the Northwest Energy Efficiency Alliance.

• Saved 35 average megawatts of electricity at a leve lized cost of 1.4 cents per kilowatt hour— significantly exceeding OPUC minimum performance me asures. Electric savings in 2007 were over one-third higher than in 2006.

2 The 2012 goals were adopted as part of Energy Trus t’s strategic plan and reflect the term of Energy T rust’s funding agreement with the Oregon Public Utility Commission. In 2007 t he Oregon Legislature extended the public purpose c harge, Energy Trust’s principal funding mechanism, through 2025. Anticipa ting its funding agreement to be extended, in 2008 and 2009 Energy Trust will establish and adopt new goals.Energy Trust of Oregon 2007 Annual Report April 15, 2008

6 • Saved nearly 2.3 million therms of natural gas at a levelized cost of 33 cents per therm, significantly exceeding OPUC performance measure. G as savings fell slightly in 2007 compared

to 2006.

• Completed the 47 average megawatt PGE Biglow Canyon Wind Project and Energy Trust’s first small hydro project.

• Nearly doubled the number of solar water heating in stallations over 2006, and increased the number of solar electric projects over 2006 by 40%.

• Launched a small wind program and dairy biogas init iative.

• Maintained low administrative costs, well within th e OPUC performance measure.

• Supported the growth of over 800 Oregon businesses that are strengthening the state’ s economy as trade allies, many of which are small bu sinesses in local communities.

• Generated $35 million in wages, $7.5 million in new business inco me and created 850 new jobs 3 as a result of 2007 program activity.

• In addition, Energy Trust participants continue to save money from the energy-savings measures they installed between 2002 and 2006. The cumulativ e effects of these savings generated an additional $43 million in wages, $6.9 million in ne w business income and over 1,300 new jobs.

• Cumulatively saved 178 average megawatts of electri city and 6.7 million annual therms of natural gas, equivalent to 59 percent and 32 percent of our respective, and ambitious, 2012 electric and gas saving goals.

• Cumulatively generated 64 average megawatts of rene wable energy, approximately 43 percent of the aggressive 2012 goal of 150 average megawatt s, continued construction of 30 more average megawatts, and have an additional 18.9 aver age megawatts already committed between 2008 and 2010. All these projects combined are equa l to 75 percent of the 2012 goal.

• Improved air quality by offsetting over 450,000 ton s of carbon dioxide generated by fossil fuels 4

, the equivalent of taking over 80,000 cars off the r oad for a year.

B. Residential efficiency programs

• Conducted 5665 energy reviews, installing 37,674 co mpact fluorescent light bulbs, 3,484 showerheads, and 7,278 aerators in these homes.

• Supported over 40,087 internet users employing the online Home Energy Analyzer.

• Helped fund the purchase of 19,878 energy efficient clothes washers in 8,761 homes with electric hot water and 11,117 homes with gas hot wa ter.

• Installed energy efficient measures such as sealed ducts, insulation, high efficiency space heating equipment and energy efficient windows in 10,478 si ngle family homes, 5,921 multifamily units, and 874 manufactured homes. Of these, 7,673 homes r eceived electric efficiency measures and 8,442 received gas efficiency measures, with 1,158 sites saving both gas and electricity.

• Installed solar water heating systems in 144 homes with electric hot water and 92 homes with gas hot water.

C. Commercial efficiency programs

• Installed high efficiency measures such as energy e fficient lights and efficient heating, ventilating and air conditioning equipment in 1,901 commercial buildings, resulting in an average incen tive payment per site of nearly $1,392. Of this total, 1 ,120 buildings received electric efficiency

3 Source: ECONorthwest 2007. Economic impact numbers are in addition to what would have occurred without Energy Trust’s investment of public purpose funds. This economic i mpact for 2007 includes a one time, large impact fr om construction of a utility scale wind farm project.

4 Source: Phil Carver, Oregon Department of Energy, 2 .08 lbs in Pacific Power service territory and 1.06 lbs in PGE’s service territory of carbon dioxide reduction per kWh of ene rgy saved or generation using renewable resources, 11.7 lbs of carbon dioxide reduction per therm saved.Energy Trust of Oregon 2007 Annual Report April 15, 2008

7 measures, 726 buildings received gas efficiency measures, and 55 buildings saved both gas and electricity.

• A total of 200 highly efficient new commercial buil dings were completed, with an average incentive payment per site of $13,520.

• Installed solar water heating systems in 11 busines ses with gas hot water.

D. Industrial efficiency programs

• Completed electric energy saving projects at 226 ma nufacturing firms, with an average incentive payment of $29,109.

• This included one “megaproject,” SP Newsprint.

E. Renewable energy programs

• Provided incentives to help install solar electric systems in 175 homes and 51 commercial buildings. Since 2002 Energy Trust has funded over 3 megawatts of new solar installations for Portland General Electric and Pacific Power in Oreg on.

• Provided financial support to Portland General Elec tric’s Biglow Canyon Wind Farm and our first small hydro project.

• Diversified our offerings by designing niche offeri ngs and marketing strategies serving the dairy industry and promoting small-scale wind development

.


## IV Revenues and Expenditures

• Received $63.3 million during 2007.

• Spent $56.53 million (including carryover funds from prior years).

• Paid $31.56 million in incentives to end users.

A. Revenues Total 2007 revenues received from each utility were very close to projections.

Source Actual revenues received Budgeted revenues Annual

Portland General Electric $32,414,944 $28,952,915

Pacific Power $20,196,049 $19,569,605

NW Natural $9,622,649 $9,247,863

Cascade Natural Gas $934,266 $889,636

Avista $160,163 $278,000
Conservation Rate Credit, PGE $550,000 $1,100,000
Conservation Rate Credit, PAC $0 $800,000

Total $63,878,071 $60,838,019

B. Expenditures Electric efficiency spending fell below budget by a bout 19% for the year. Despite under-spending, programs were able to exceed the best case savings goal, demonstrating our ability to acquire more electric savings at a lower cost. In addition, some project completions, along with carryover funds to support them, were transitioned into 2008. Gas spen ding was under budget by only 7%, with savings shy of the best case goal, suggesting gas savings cost slightly more to obtain than was budgeted.

Renewable program spending was also below budget fo r the year, as was corresponding generation. Renewable incentives (above market costs) and corre sponding generation are reported for programs upon completion. The Goodnoe Hills wind project, ex pected to be completed by year end 2007, was delayed until summer 2008. Despite the delay, the r enewables programs were able to achieve their highest ever annual generation.Energy Trust of Oregon 2007 Annual Report April 15, 2008

8 Type Actual Expenditures Annual Budgeted Expenditures Annual

Energy Efficiency programs $44,143,106 $52,947,134 Renewable Energy programs $9,928,524 $12,027,478

Administration $2,461,718 $2,982,708

Total $56,533,348 $67,957,320

Incentives Paid 2007

0 Energy Efficiency Renewable Energy Total

Quarter PGE Pacific

Power NW

Natural Cascade

Natural

Gas Avista PGE Pacific

Power 0
Q1 $712,751 $808,544 $548,707 $32,144 $6,181 $390,541 $182,368 $2,681,236

Q2 $1,607,257 $1,252,064 $1,049,745 $60,097 $5,954 $150,549 $233,167 $4,358,833

Q3 $3,920,123 $1,727,066 $1,170,782 $54,197 $9,099 $216,900 $295,061 $7,393,228

Q4 $4,765,811 $3,586,467 $1,884,071 $133,107 $16,812 $6,460,315 $276,796 $17,123,379

Total $11,005,942 $7,374,141 $4,653,305 $279,545 $38,046 $7,218,305 $987,392 $31,556,676



## V Savings and Generation

A. Electric efficiency savings In 2007, Energy Efficiency programs saved 35 averag e megawatts, achieving 107 percent of Energy Trust’s 2007 “best case” projection of 33 average m egawatts. Since March 1, 2002, these programs have cumulatively saved 178 average megawatts, or 59 per cent of Energy Trust’s 2012 goal 5 . The totals reflect the annual “true up” that takes into account evalua tion results, market research and other factors. 6

The cost of acquiring the 35 average megawatts was $1.03 million per average megawatt—a significant improvement over our best case target of $1.4 milli on per average megawatt.

Electric Efficiency Savings

Annual 2007
Residential 7.50 5.30 13.00 14,710,094 $1.20 1.60 ¢
Commercial 4.00 2.10 6.20 9,462,730 $1.50 1.80 ¢
Industrial 11.00 5.60 16.00 12,226,518 $0.75 1.10 ¢ Total Energy Efficiency programs 23.00 13.00 35.00 36,399,342 $1.00 1.40 ¢ mil $ /

aMW Levelized

Cost/kWh PGE aMW Pacific

Power

aMW Total

Savings

aMW Expenses

* Includes transmission and distribution savings

B. Gas efficiency savings In 2007, efficiency programs saved 2.3 million annual therms of natural gas, falling s lightly short of our 2007 best case projection of 2.4 million annual the rms. Since gas programs began in 2003, cumulative savings of 6.7 million annual therms have been real ized, accounting for 32 percent of the 2012 goal.

5 Savings from self-directed efficiency projects als o count toward the goal of achieving 300 aMW of savi ngs by 2012. To date, 18.9 aMW of savings have been achieved by industrial consumers via self-directed funding.

6 Uncertainty remains about savings for some larger in dustrial projects and will be resolved in the 2008 true-up.Energy Trust of Oregon 2007 Annual Report April 15, 2008

9 Gas Efficiency Savings Levelized

Cost/

Annual 2007 Therm
Residential 970,000 130,000 8,200 1,100,000 7,298,841 $6. 60 46 ¢
Commercial 1,100,000 19,000 0 1,100,000 2,412,365 $2.10 19 ¢
Industrial 3,100 0 0 3,100 39,307 $13.00 79 ¢ Total Energy Efficiency Programs 2,100,000 150,000 8,2 00 2,300,000 9,750,513 $4.30 33 ¢ Expenses $ /

Therm NWN

Therms Cascade

Natural

Gas Avista Total

Savings

Therms

C. Renewable energy generation Renewable energy programs progressed well during 20 07. Total generation for the year of 47 average megawatts greatly exceeded past years while falling short of 2007 goals. To date, cumulative renewable energy generation totals 64 average megawatts, or 4 3% percent of the 2012 aggressive direct acquisitio n goal of 150 average megawatts. Energy Trust’s final utility scale project 7 , Pacific Power’s Goodnoe Hills wind project, will come on line in 2008, producing 30 average megawatts. Another 19 average megawatts will be generated when commitments to pro jects come on line between 2008 and 2010.

Renewable Energy Generation

Annual 2007 Biopower 0.00 0.00 0.00 491,732 n/a n/a Open Solicitation 0.01 0.00 0.01 544,321 $54 n/a Solar Electric Program 0.06 0.08 0.14 2,497,003 $18 16 ¢

Utility Scale 47.00 0.00 47.00 6,434,926 $0.14 0.10 ¢ Wind Program 0.00 0.00 0.00 415,511 n/a n/a
Total Renewable Programs 47.00 0.08 47.00 10,383,493 $0.22 0.20 ¢ mil $ /

aMW Levelized

Cost/kWh PGE

aMW Pacific

Power

aMW Total

Generation

aMW Annual

2007 Expenses

* Projects completed and were operating in 2007.



## VI 2007 Performance Measures

Each year the Oregon Public Utility Commission esta blishes minimum performance measures for Energy Trust. Performance measures for energy efficiency p rograms and renewable energy programs are set at an aggregated level rather than at a sector level. This allows Energy Trust to pursue different progra m strategies in different sectors as market forces an d technological advances change.

The following minimum performance measures apply in 2007.

Electric Efficiency Performance Targets

• Electricity efficiency savings of at least 20 avera ge megawatts, computed on a three-year rolling

average

Exceeded, with 2005

- 2007 average annual electric efficiency savings = 3 4 average megawatts

• Average levelized life-cycle cost should be less th an 2 cents per kilowatt hour

Exceeded, with 2007 average levelized life-cycle cost = 1.4 cents per kilowatt hour

7 In 2007 the Oregon Legislature passed renewable po rtfolio standard legislation requiring utilities to meet renewable generation goals and limiting Energy Trust support to renewable projects to 20 MW or less.Energy Trust of Oregon 2007 Annual Report April 15, 2008

10 Natural Gas Efficiency Performance Targets

• Natural gas efficiency savings of at least 700,000 therms, computed on a three-year rolling

average

Exceeded, with 2005-2007 average annual gas efficiency savings = 2 .0 million annual therms

• Average levelized life-cycle cost should be less th an 40 cents per therm

Exceeded, with 2007 average levelized life-cycle co st = 33 cents per therm

Renewable Resource Development Targets

• From new utility-scale renewable resources, develop 9 average megawatts, computed on a three-year rolling average, and consistent with eac h utility’s acknowledged Integrated Resource

Plan

Exceeded, with 2005-2007 average annual renewable r esources = 16 average megawatts. This is consistent with each utility’s acknowledged Integra ted Resource Plan

• From a variety of smaller-scale projects, secure at least 3 average megawatts of new renewable resources per year, computed on a three-year rollin g average

Behind 2007 target (0.9 AMW). Additional large-scal e development more than exceeding this smallscale project shortfall; between 2008 and 2010 proj ects in the excess of 19 average megawatts have

been committed at this time

Financial Integrity

• Demonstrate financial integrity by obtaining an unq ualified financial audit opinion annually

Full compliance, with an unqualified financial audi t opinion for 2007.

Program Delivery Efficiency

• Keep administrative and program support costs 8 below 11 percent of annual revenues

Exceeded, with 2007 administrative and program supp ort costs at 6 percent of annual public purpose

revenues.

Customer Satisfaction

• Demonstrate reasonable customer satisfaction rates with Energy Trust services [1]

In 2007 and early 2008, evaluations incorporating c ustomer satisfaction measures were completed for Building Efficiency, New Building Efficiency, Produ ction Efficiency, Multifamily Home Energy Savings, Efficient New Homes and Home Energy Solutions.

In 2007, evaluations showed satisfaction with our c ommercial and industrial programs was high. Eightyfive percent of participants in the Building Effici ency and New Building Efficiency programs indicated they were satisfied or extremely satisfied. Ninety- four percent of Production Efficiency program participants indicated they were satisfied with the ir overall experience.

In the residential sector, 91 percent of participan ts in the Multifamily Home Energy Savings program reported being satisfied or extremely satisfied. Bu ilders participating in the Efficient New Homes

8 Program support costs are defined as all program c osts except the following accounts: program managem ent, program incentive, program payroll and related expenses, ca ll center and program outsource services.Energy Trust of Oregon 2007 Annual Report April 15, 2008

11 program were extremely satisfied; only one builder surveyed indicated an overall satisfaction rating o f less than 8 on a scale of 1 to 10. Eighty-six perce nt of participants in the Home Energy Solutions program reported being satisfied or extremely satis fied with the overall program experience.

Energy Trust recorded 7 customer complaints in 2006 , and 34 since beginning operations in 2002.

Benefit/Cost Ratios

• Report benefit/cost ratios for larger conservation acquisition programs for 2007. 9

Program Utility system benefit-cost ratio Societal b enefit-cost ratio

1. E xisting Homes 2.7 1.5

2. New Homes and P roducts 2.8 2.6 3. E xisting Buildings 4.3 1.4 4. New Buildings 6.4 2.8 5. P roduction E fficiency 7.7 3.0 6. NW E nergy E fficiency Alliance 12.0 4.0

9 By law, Oregon public purpose funds may be investe d only in cost effective energy efficiency measures —that is, efficiency measures must cost less than acquiring the energy f rom conventional sources.Energy Trust of Oregon 2007 Annual Report April 15, 2008

12 

## VII Projects Completed

0 0

0 0 Total Electric-only Gas-only Both

0 ENERGY EFFICIENCY 0 0 0 0

0 0 0 0

0 ENERGY STAR new homes constructed 974 178 68 728

0 ENERGY STAR new homes enhanced 1,721 12 396 1,313

0 Efficient new manufactured homes purchased 191 165 16 1 0

0 Home energy reviews conducted 5,665 2,861 374 2,430

0 Single family homes retrofitted 10,478 2,027 8,226 225

0 Manufactured homes retrofitted 874 853 19 2

0 Multifamily units retrofitted 5,921 4,793 197 931

0 New multifamily units enhanced 0 0 0 0

0 Residential solar water heating installations 236 144 92 0

0 ENERGY STAR clothes washer rebates 19,878 8,761 1,777 9 ,340

0 Refrigerator exchange pilot 213 211 0 2

0 CFL packages sold/provided 923,714 923,714 0 0

0 0 0 0

0 Existing buildings retrofitted 1,901 1,120 726 55

0 Efficient new buildings constructed 200 102 11 87

0 Solar water heating commercial installations 11 5 6 0

226 225 1 0

0 TOTAL EFFICIENCY 972,203 945,171 11,909 15,123

0 RENEWABLE ENERGY INSTALLATIONS 0 0 0 0

0 Biopower project installations 0 0 0 0

0 Open solicitation project installations 1 1 0 0

0 Solar electric residential installations 175 175 0 0

0 Solar electric commercial installations 51 51 0 0

0 Utility scale project installations 1 1 0 0

0 Wind project installations 0 0 0 0

0 TOTAL RENEWABLES 228 228 0 0 Residential projects

Commercial projects

Industrial projects

We define “projects” to be completed installations o r services at one location, with certain exceptions :

• A Home Energy Review, with CFL installation, counts as one project. If that home subsequently installs one or more measures, this installation counts as a separate pr oject.

• Each apartment unit treated counts as one project.

• Each manufactured home counts as one project.

• Measures installed in separate facilities within a large industrial complex count as separate projects

.Energy Trust 2007 Annual Report April 15, 2008

13 

# Appendix

2002

- 200 7 Progress towards 2012 Goals

32 %

43 % 59 % 150 aMW 21 Million

Therms 300 aMW

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Energy Efficiency aMW Gas Efficiency Therms Renewable Generation aMWGoalEnergy Trust 2007 Annual Report April 15, 2008

14 

## Energy Efficiency Program Descriptions

Existing Homes. Residential utility customers can take advantage of energy-saving recommendations, referrals to qualified contractors and cash incenti ves for qualified improvements from insulation to d uct sealing to energy efficient electric, gas and solar water heaters, furnaces and heat pumps. Other offe rings
include Home Performance with ENERGY STAR ® , a diagnostic audit conducted by Building Performa nce Institute-certified contractors, as well as energy efficiency improvements targeting multifamily and manufactured home dwellings. The program also offer s the web-based Home Energy Analyzer to help residential customers learn how they can improve th e efficiency of their homes. The program started in March 2003 and is implemented by Conservation Servi ces Group.

New Homes and Products. The new homes track seeks to expand the market shar e of ENERGY STAR qualified homes in Oregon by creating homebuye r demand for them and supporting contractors who build them. The program utilizes whole-house an d stand-alone incentives to aid builders in overcoming some of the larger hurdles, performance testing incentives and training, and overall marketing support. The program also promotes the sa le of energy efficient manufactured homes. The products track offers cash incentives for purchase of ENERGY STAR qualified clothes washers and lighting, provides compact fluorescent light bulbs to electric ratepayers who complete the online Home Energy Analyzer, and promotes the "Change a Light, Change the World" compact fluorescent light bulb fundraiser for schools and nonprofits. The program began in April 2004 and is implemented by Portland Energy Conservation, Inc.

Building Efficiency. This program provides a range of electric and gas e nergy-saving services and incentives for existing Oregon commercial and insti tutional facilities. Incentives are offered for qua lified improvements such as lighting, HVAC, motors, contro ls, energy efficient electric, gas and solar space and water heaters, restaurant equipment and insulat ion. Services include energy surveys and technical analysis, contractor referrals, project facilitatio n and post-installation assistance. The program beg an in February 2003 and is implemented by Lockheed Martin

.

New Building Efficiency. Financial incentives for high efficiency electric a nd gas equipment, energy modeling and design assistance help customers maxim ize efficiency of commercial and industrial new construction projects, major renovations and additi ons to existing buildings. Program participants can leverage incentives from four distinct program trac ks including: Custom Track, Standard Track, LEEDNC Track and ENERGY STAR Track. The program was launched in October 2003 and is implemented by Science Applications International Corporation.

Production Efficiency. This program provides technical assistance and ince ntives to improve the electrical process efficiency of manufacturing, wat er and wastewater treatment and agricultural system s. Measures include energy efficient pumps, fans, refr igeration, controls, compressed air systems and material transport. The program launched in May 200 3 and transitioned at the end of 2007 from management by Lockheed Martin to in-house managemen t.

Northwest Energy Efficiency Alliance. Energy Trust supports the market transformation wor k of the Northwest Energy Efficiency Alliance. An Energy Tru st representative serves on the Alliance board of directors, with Margie Harris taking over for Fred Gordon in November of 2007. The Alliance influences regional energy efficient design and pur chasing practices by providing training and coordin ating regional marketing activity. The Alliance is funded by BPA, Energy Trust and regional utilities.Energy Trust 2007 Annual Report April 15, 2008

15 

## Renewable Energy Program Descriptions

Utility Scale. The Utility Scale renewables program facilitates pa rtnerships between utilities and developers of wind and other large-scale renewable energy projects and provides incentives to cover the above-market costs for generation. Projects are acquired through a competitive solicitation processes in partnership with Portland General Elec tric and Pacific Power.

Solar Electric . This program provides cash incentives, quality as surance, industry support and referrals to qualified solar contractors to help homeowners a nd businesses generate on-site, pollution-free powe r from the sun.

Open Solicitation. The Open Solicitation program provides incentives and support for renewable energy projects using commercial technologies that are not eligible for incentives through Energy Trus t’s other renewables programs. It also helps provide ex perience in renewable energy sectors that may in the future merit their own programs.

Biopower. The Biopower program provides financial incentives, cost-shared grants for feasibility studies, and other support for projects that genera te electric power from organic wastes. Eligible fue ls include digester gas from sewage treatment faciliti es or dairies, wood waste from mills or forest operations, and landfill gas, among others.

Wind. The wind program’s four ongoing elements include: 1 ) funding support for on-site use as well as local projects in clusters up to 20 megawatts that deliver power to the grid; 2) resource assessment through anemometer loans, managed by Oregon State U niversity's Energy Resource Research Laboratory, to help landowners determine whether si tes have sufficient wind generation potential; 3) co-funding for specific feasibility studies and pro ject technical analyses; and 4) guidebooks for wind project development. A fifth element, support for u tility scale wind projects, will end with completio n in
2008 of the Goodnoe Hills wind farm.Energy Trust 2007 Annual Report April 15, 2008

16 

## 2007 Energy Trust of Oregon Board of Directors

PRESIDENT – Tom Foley has over 26 years of experience in the field of ene rgy analysis and management, including 10 years as manager of conser vation and generating resources analyses for the Northwest Power Planning Council and 10 years at Ba ttelle Northwest. He presently runs Tom Foley Consultants, which provides resource planning and c onsultation with utilities throughout the country. Tom retired from the board in 2008.

VICE PRESIDENT – John Reynolds is professor of architecture emeritus at the Unive rsity of Oregon. He has been involved in energy issues in Or egon since 1972, when he was elected to the Eugene Water and Electric Board. Since then he has served as the chair of the American Solar Energy Society and president of the Solar Energy Associati on of Oregon. He has served on the Oregon Alternate Energy Commission and the Energy Committe e of the Building Codes Structures Board. John was re-elected to a new three year term in 2007 and was elected President in 2008.

SECRETARY – Debbie Kitchin is the co-owner of InterWorks, L.L.C., a constructi on company providing commercial tenant improvement and renovat ion and residential remodeling services. InterWorks is an award-winning company specializing in sustainable building practices. Prior to joinin g the family business in 1996, Debbie served as senio r economist for the Northwest Power Planning Council for 15 years and was a regional economist f or the Bonneville Power Administration for 3 years.

Debbie also serves on the boards of the Portland Bu siness Alliance, Portland Building Owners and Managers Association and the Oregon Remodelers Asso ciation. She is past president of the Portland Commercial Real Estate Women (CREW) Board of Direct ors. Debbie was re-elected to a new three year

term in 2007.

TREASURER – John Klosterman is vice president of operations at Rejuvenation In c., having served the company for 14 years. As part of a state pilot project, he led his company's implementation of an International Organization for Standardization 1400 1-based energy management program based on the sustainability principles of The Natural Step. For the past 7 years he has worked directly with Asian suppliers to reduce their environmental impacts, wh ile implementing socially responsible policies and programs in Rejuvenation’s Portland operations.

Julie Hammond is the president of Sage Insurance Center in Bend. She has over 20 years experience in the insurance industry. Julie currently serves D eschutes United Way as campaign chair. She brings a customer service orientation, small business perspe ctive and regional representation to Energy Trust program delivery.

Al Jubitz is a native Oregonian, recently retired from the fa mily business, the Jubitz Corporation. He is president and founder of the Jubitz Family Foundati on and serves as director of two private start-up companies. He is also past president and an active member of the Rotary Club of Portland, a board member of the Portland Schools Foundation, director emeritus of Morrison Child and Family Services,

and a trustee of Outward Bound West Wilderness Scho ol. Al has an extensive business background and brings a strong business sense to the board. He has a bachelor of science degree from Yale University and an MBA from the University of Oregon School of Business.

Preston Michie has more than 25 years experience working in the el ectric power industry, most of which was spent working as an attorney in the Offic e of General Counsel at the Bonneville Power Administration (BPA). Currently he works as a consu ltant with BPA to help develop Grid West, an electric energy transmission organization, support BPA's demand response programs, and assess the potential for hydrogen in Northwest power applicati ons. He is on the boards of the Northwest Hydrogen Alliance, Inc., the Wetlands Conservancy, and Ridgeline Energy, LLC (a start-up wind developer). Before his time at the BPA, Preston was a research chemist. He is a graduate of Lewis and Clark Law School and the University of Oregon Schoo l of Business.Energy Trust 2007 Annual Report April 15, 2008

17 Rick Applegate is the Portland Harbor Superfund Administrator at the City of Portland Bureau of

Environmental Services. He served as staff director in the U.S. Senate and House of Representatives. Since then, he has worked for nearly 25 years on en ergy and environmental issues, principally as an

advocate for salmon and their watersheds. Rick was the fish and wildlife director for the Northwest Power Planning Council, west coast conservation dir ector for Trout Unlimited and administrator of the

Habitat Conservation Division at National Marine Fi sheries Service (NOAA). He was the chair of the U.S. Southern Stakeholders Pacific Salmon Treaty Ne gotiations and a member of the Pacific Northwest Comprehensive Energy Review. He has also served on the executive committee of For the Sake of Salmon, and on the boards of the Pacific Salmon Wat ershed Fund and the Sustainable Fisheries

Foundation

.

Jason Eisdorfer

is legal counsel and energy program director for t he Citizen's Utility Board. He served as the public interest representative in work sessi ons of the Oregon Legislature's House Committee on Power Deregulation in 1997, and in 1999 helped auth or Oregon's electricity industry restructuring legislation. He is on the executive boards of the F air and Clean Energy Coalition, the Northwest Energ y Coalition and the Renewable Northwest Project.

Vickie Liskey is a native of Klamath Falls and vice president of Liskey Farms, a 1,500-acre ranch that uses geothermally heated water to heat ranch houses , greenhouses, tropical fish ponds, cattle watering ponds and irrigated pastures. She has 17 years expe rience managing commercial greenhouses and a degree in horticulture from North Dakota State Univ ersity. Vicki brings a small business perspective a nd regional representation to the Energy Trust Board. Vickie was re-elected to a new three year term in 2 007.

Caddy McKeown is the southern region supervisor for the ASPIRE P rogram, Oregon Student

Assistance Commission. She is active in her communi ty serving as a commissioner and vice chair for the Oregon International Port of Coos Bay. She serv ed on the Coos Bay School District Board of Directors for 11 years and on the budget committee for 15 years. She serves on the board of directors of the nonprofit organization that manages Mingus P ark Municipal Pool, serves the Oregon Community Foundation as a volunteer grant evaluator, and rece ntly stepped down after 17 years on the board of Bob Belloni Ranch, Inc., a residential treatment fa cility for adolescent offenders. Caddy brings priva te, nonprofit and economic development experience, year s of community service and a South Coast perspective to her service to Energy Trust.

Alan Meyer is the director of energy management for Weyerhaeus er Company, a diversified pulp, paper and forest products manufacturing company. He is responsible for coordinating energy management activities at hundreds of manufacturing facilities throughout North America. Prior to joining Weyerhaeuser, he was director of energy for Willamette Industries, holding similar responsibilities. He also worked for PacifiCorp as the Oregon Large Industrial Accounts Manager. He brings this extensive experience in the energy indu stry plus sales and marketing experience to the Energy Trust board. Alan was re-elected to a new three year term in 200 7.

ex-officio

John Savage is one of three commissioners serving the Oregon Public Utility Commission. He joined the OPUC staff in 2003 as director of its utility p rogram, after having served as director of the Oreg on Department of Energy for the previous decade. He wa s administrator of the ODOE’s policy and planning division from 1987 to 1993. John received a master’s degree in natural resource economics from Oregon State University in 1979 and a bachelor of science degree from Oregon State University in

1975.

Oregon Department of Energy Special Board Advisor

William Nesmith was the assistant director for conservation at the Oregon Department of Energy until February 2008. Bill has a master of science d egree and over 20 years experience in the field ofEnergy Trust 2007 Annual Report April 15, 2008

18 energy efficiency. He has worked as a land use plan ner for local government, been a program manager with state government, and served as a public utili ties specialist with the Bonneville Power Administration. In his ODOE position he directed en ergy efficiency and renewable resource programs for Oregon homeowners, businesses, and public insti tutions that have a combined budget of over $10

million. Bill resigned from ODOE and therefore no longer ser ves as ODOE’s Special Board Advisor. Betty Merrill was named to replace Bill in April 2008.



## Board Development Guidelines
April 16, 2007

The Energy Trust / Oregon Public Utility Commission grant agreement calls for the Energy Trust board to include the skills, broad representation and div ersity necessary to achieve its mission.

The initial board of directors included nine member s and one non-voting ex-officio member from the OPUC. The nine members represented a variety of ene rgy and business perspectives, including energy policy and planning, program implementation and eva luation, facility siting, consumer advocacy, renewable energy development and sustainable practi ces, and commercial and industrial sectors.

The board has experienced expected turnover, and as this has occurred the board has taken steps to broaden its membership further. In addition to soli citing input through advisory councils and at publi c board meetings, over a dozen individuals and partne r organizations were polled to identify candidates with appropriate experience from throughout the sta te. At this same time, the board expanded its size to 12 voting members to allow further diversity.

Through these efforts and targeted recruitment, the current board includes voting members with background in business (agriculture, industry, tran sportation, construction, manufacturing/retail and insurance), government and nonprofit energy sectors and higher education. Members come from Coos Bay, Bend, Eugene, Klamath Falls and the Portland a rea. Of the voting membership, four are women and eight are men. The board’s Oregon Public Utility Co mmission (OPUC) ex-officio member is Commissioner John Savage. The board created an addi tional non-voting position for an appointee of the Oregon Department of Energy (ODOE). Bill Nesmith, O DOE Assistant Director for Conservation Programs, was appointed to fill this “special advis or” position. Bill resigned from his position at OD OE

in 2008.

All new members participate in an orientation sessi on and are provided handbooks containing historical information, policies, plans, budgets and program d escriptions. The majority of board members also participate on advisory councils and board committe es. All regular board and advisory council meetings and background information are public. Advisory cou ncil and board meetings are well attended, and public comment is included in every meeting.

All regular board members complete and sign conflic t of interest forms each year. The OPUC ex officio board member and the special advisor from ODOE do n ot receive confidential information. Once a year, board and staff members participate in a plan ning session to review progress and discuss the Energy Trust’s strategic direction. Board developme nt is a part of this public planning session, as ne eded.Energy Trust 2007 Annual Report April 15, 2008

19 

## 2007 Advisory Council Members and Meetings

Conservation Advisory Council

Steve Bicker, NW Natural

Jeff Bissonnette, Fair and Clean Energy Coalition

Julie Brandis, Associated Oregon Industries

Gary Curtis, D&R International

Suzanne Dillard, Oregon Department of Energy

Michael Early, Industrial Customers of Northwest Ut ilities

Thomas Eckhart, UCONS LLC

Tom Eckman, Northwest Power Planning Council

Andria Jacob, City of Portland, Office of Sustainab le Development

Don Jones, PacifiCorp

Ken Keating, Bonneville Power Administration

Lori Koho, Oregon Public Utility Commission

Mat Northway, Eugene Water & Electric Board

Paul Olson, Oregon Remodelers Association

Stan Price, Northwest Energy Efficiency Council

Lauren Shapton, Portland General Electric

Susan Steward, BOMA

Steve Weiss, Northwest Energy Coalition

Energy Trust board members who regularly attend CAC : Jason Eisdorfer

Debbie Kitchin

Alan Meyer

John Reynolds

2007 Meeting Dates CAC Major Discussion Topics January 17 Business Energy Solutions – Existing Bui ldings 2007 Incentive Changes Summary, Business Energy Solutions – Production Efficiency 2 007 Proposed Incentive Changes Summary, Available Incentive Funding Web Posting, H ome Energy Solutions – Existing Homes 2007 Proposed Incentive Changes Summary February 21 Business Energy Solutions – Existing Bu ildings 2007 Incentive Changes Summary, Business Energy Solutions – Production Efficiency 2 007 Proposed Incentive Changes Summary, Available Incentive Funding Web Posting, H ome Energy Solutions – Existing Homes 2007 Proposed Incentive Changes Summary March 14 Program Delivery Model Update, Budget Real location of 2006 Carryover Funds, Efficiency Program Savings Potential Forecast April 18 Program Delivery Model Evaluation Prelimin ary Findings, New Gas Efficiency Measures May 16 Program RFP Schedules, Program Delivery Mode l Enhancement Exploration, Exclusive Residential Trade Ally Network, 1 st Quarter Program Results Highlights June 20 Residential Code Change Implications for Ne w Homes Program, Residential Trade Ally Exclusive Network, Board Strategic Planning Worksho p Results September 19 2nd Quarter Program Results, Existing Buildings and Existing Homes Recompete Status,Energy Trust 2007 Annual Report April 15, 2008

20 Renewable Energy Act Incremental Funding Program Im pact, Energy Trust Trade Ally Network Oversight October 17 2008 Draft Budget, 2008 New Buildings In centive Changes Oversight, Electric Utility Incremental Funding Rate Filing Update November 28 2008 Budget and Action Plan, 2008 PUC P erformance Measures and Avoided Costs, Existing Buildings 2008 Incentive Changes, Biofuel Efficiency Projects



### Renewable Energy Advisory Council

Doug Boleyn, Cascade Solar Consulting

Debra Malin, Bonneville Power Association

Angus Duncan, Bonneville Environmental Foundation

Thor Hinkley, Portland General Electric

Jeff King, Northwest Power & Conservation Council

Justin Klure, Oregon Department of Energy

Troy Gagliano, Renewable Northwest Project

Kyle Davis, Pacific Power

Lori Koho, Oregon Public Utility Commission

Frank Vignola, Solar Monitoring, University of Oreg on Chris Taylor, Horizon Wind Energy

Energy Trust board members who regularly attend RAC : Alan Meyer

John Reynolds

2007 Meeting Dates RAC Major Discussion Topics

January 17 Portland Habilitation Center Large-scale Solar Proj ect, Small-scale Wind Project, Community Renewable Energy Association, Regulatory Update

March 14 Solar Impact Evaluation, PMC & Process Evaluation, Green Tag Policy, Program & Budget Updates

April 18 Legislative Update, Wind Integration, Oregon Green Power Options, PMC Model Evaluation, Not-for-profit Solar Incentive May 16 Legislative Update, Strategic Issues

June 20 Legislative Update, Strategic Planning Follow-up, P ortland Community Center, Small Wind Program Draft Design, Hydropower Policy Recommendations

July 18 Swalley Irrigation District, Green tag exemption fo r PV on new homes, Demonstration Project Policy, Renewable Energy Goal s

September 19 Large Scale Solar Electric Project, Small Scale Hyd ro Project, SB838 Rulemakings, Renewable Program Activities 2008-2009 October 17 Emerging technologies, Draft 2008 Renewa ble Energy Program Budgets

November 28 Marketing Solar to Residential Customers, 2008-2009 Renewable Energy Program BudgetsEnergy Trust 2007 Annual Report April 15, 2008

21 500 1000 1500 2000 2500 3000 3500 4000

Calls 2077 1931 1745 3839 1718 2259 1476 1485 2260 3267 3729 2189

Jan 07 Feb 07 Mar 07 Apr 07 May 07 Jun 07 Jul 07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07

40000 45000 50000 55000 60000 65000 70000 75000 80000 85000

Visits 50995 47761 56098 55013 54050 73795 75952 66131 73259 82837 78527 68417

Jan 07 Feb 07 Mar 07 Apr 07 May 07 Jun 07 Jul 07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07 

## 2007 Call Volumes

2007 Web Visits