### May 31, 2013

VIA HAND DELIVERY & ELECTRONIC MAIL

Luly E. Massaro, Commission Clerk
Rhode Island Public Utilities Commission
89 Jefferson Boulevard Warwick, RI 02888

RE: Docket 4295 – National Grid Electric and Gas Energy Efficiency Programs 2012 Year-End Report

Dear Ms. Massaro:

Enclosed please find ten (10) copies of National Grid’s 1 

### 2012 Energy Efficiency YearEnd Report. This report summarizes the gas a nd electric results, pr ogram highlights, and customer experiences over the 2012 program year. A copy of this report has also been provided to the parties in this proceeding.

Thank you for your attention to our filing. Plea se feel free to contact me if you have any questions regarding this matter at (401) 784-7288.

Very truly yours,

Jennifer Brooks Hutchinson

Enclosures

cc: Docket 4295 Service List RI Collaborative Members (electronic version)

1 The Narragansett Electric Company d/b/a National Grid (referred to herein as “National Grid” or the “Company”).

280 Melrose Street, Providence, RI 02907 T: 401-784-7288  jennifer.hutchinson@nationalgrid.com  www.nationalgrid.com Jennifer Brooks Hutchinson
Senior Counsel

### Certificate of Service

I hereby certify that a copy of the cover letter and/or any materials accompanying this certificate were electronically transmitted and sent via U.S. Mail to the individuals listed below. Copies of this filing were hand delivered to the RI Public Utilities Commission.

___________________________________ May 31, 2013



### National Grid - 2011 Energy Efficiency Program Plan – Docket No. 4295 Service list updated 12/5/11



## Name/Address E-mail Distribution List Phone/FAX Jennifer.hutchinson@us.ngrid.com Jennifer Brooks Hutchinson, Esq.
National Grid
280 Melrose St. Providence, RI 02907 Joanne.scanlon@us.ngrid.com 401-784-7288

Jhagopian@riag.ri.gov

Dstearns@ripuc.state.ri.us

Sscialabba@ripuc.state.ri.us

dmacrae@riag.ri.gov

mcorey@riag.ri.gov Jon Hagopian, Esq. Dept. of Attorney General
150 South Main St. Providence, RI 02903

Acontente@ripuc.state.ri.us 401-222-2424
ext. 2299

William H. Ferguson, Executive Director The Energy Council of RI (TEC-RI)
436 Armistice Blvd. Pawtucket, RI 02861 Bferguson2010@cox.net 401-722-7352

R. Daniel Prentiss, P.C. (for EERMC)
Prentiss Law Firm One Turks Head Place, Suite 380 Providence, RI 02903 dan@prentisslaw.com 401-824-5150

jmcdiarmid@env-ne.org Jeremy McDiarmid, Esq.
Environment Northeast 101 Tremont St., Suite 401 Boston, MA 02108 aanthony@env-ne.org 617-742-0054

Jerry Elmer, Esq.
Conservation Law Foundation jelmer@clf.org 401-351-1102

### 55 Dorrance Street Providence, RI 02903
Scudder Parker
VEIC sparker@veic.org

Tim Woof Synapse Energy Economics
22 Pearl Street Cambridge, MA 02139 twoolf@synapse-energy.com

Bob Fagan Synapse Energy Economics rfagan@synapse-energy.com

Lmassaro@puc.state.ri.us Anault@puc.state.ri.us Adalessandro@puc.state.ri.us Nucci@puc.state.ri.us Original & 10 copies file w/: Luly E. Massaro, Commission Clerk
Public Utilities Commission
89 Jefferson Blvd. Warwick, RI 02888 Dshah@puc.state.ri.us 401-941-4500
401-941-1691

# The Narragansett Electric Company

d/b/a National Grid

2012 Energy Efficiency Year-End Report

May 31, 2013National Grid 2012 Energy Efficiency Year-End Report 2 

## Table of Contents

Overview ....................................................................................................................... .........................................3

Residential Programs........................................................................................................... ...................................5

Overview ....................................................................................................................... .....................................5
Residential New Construc tion................................................................................................... .........................5 High Efficiency HVAC (electric & gas) .......................................................................................... ..................7 EnergyWise ..................................................................................................................... ...................................8
ENERGY STAR® Lighting.......................................................................................................... .....................9 ENERGY STAR® Appliances........................................................................................................ .................11 Income Eligib le Programs ....................................................................................................... .............................11

Overview ....................................................................................................................... ...................................11 Income Eligib le Serv ices....................................................................................................... ...........................11
Commercial & Indust rial Programs............................................................................................... .......................12

Overview ....................................................................................................................... ...................................12 Large Commercial New Construction.............................................................................................. ................13 Large Commerci al Retr ofit...................................................................................................... .........................14
Small Business Di rect Install.................................................................................................. ..........................16
Pilots and Ot her Initia tives ................................................................................................... ................................17

Residential Beha vior Pilot..................................................................................................... ...........................17
Residential Pro ducts Pilot..................................................................................................... ............................17 Regional Greenhouse Gas Initiativ e Pilots ...................................................................................... .................18 Residential Energy Effici ency Educatio n Programs............................................................................... ..........19 Community-based Initia tives.................................................................................................... ........................19 Jobs Impacts ................................................................................................................... ..................................19 System Reliability Procurement ................................................................................................. ......................20 Financing...................................................................................................................... ....................................21 Rhode Island Compre hensive Ma rketing ........................................................................................... ..................22

Shareholder Incentive.......................................................................................................... .................................22

Attachments :

Attachment 1: Electric Summary Tables of Year End Results Attachment 2: Gas Summary Tables of Year End Results
Attachment 3: Case Studies Attachment 4: 2012 Employment Supported by En ergy Efficiency in Rhode Island Report Attachment 5: 2012 RGGI Auction Proceeds ReportNational Grid 2012 Energy Efficiency Year-End Report 3 

## N ATIONAL 

## G RID


## 2012 E NERGY 

## E FFICIENCY 

## Y EAR 

## -E ND 

## R EPORT


## Overview

Program Year 2012 was a challenging and successful year for the Narragansett Electric Company d/b/a National Grid’s (the “Company” ) energy efficiency (EE) portfolio of programs and initiatives. This Year-End report summarizes the gas and elec tric results, program highlights, and customer experiences over the entire year. The electric and gas programs are described more fully in the “Settlement of the Parties,” filed in Docket No. 4295 on November 1, 2011, and approved by the
Rhode Island Public Ut ilities Commission (the “Commission”) in Order No. 20596, issued December
22, 2011.

The primary goal set forth in the 2012 “Settlement of Parties” was to “create economic value and cost savings for Rhode Islanders through energy efficiency. 1 ” The charts below summarize the electric and gas program benefit cost ratios, savi ngs, and expenditures comp ared to planned benefit cost ratios, savings goals and budgets respectively. The benefit cost ratios greater than 1 indicate that the Company’s programs created positive value out of every dollar invested in 2012. This value represents an estimated annual el ectric bill savings of $12.6 million and annual gas bill savings of $2.4 million for Rhode Island customers. Additional cost and savings information can be found in Attachment 1, tables E-1 and E-3, and Attachment 2, tables G-1 and G-3.

2012 Goal/Benchmark 2 2012 Actual 3 % of Goal

Electric Annual MWh Savings 128,570 119,666 93% Annual kW Savings 23,930 19,947 83% Lifetime Benefits ($Mil) $176.4 $140.1 79% Benefit/Cost Ratio 2.47 2.24 91%

Gas
Annual MMBtu 231,548 229,811 99% Lifetime Benefits ($Mil) $43.9 $36.2 82% Benefit/Cost Ratio 2.05 1.68 82% 2012 Budget ($Mil) 4 2012 Actual ($Mil) 5 % of Goal

Electric Total Expenditures 6 $61.4 $50.7 83% Total Expenditures Excluding Commitments 7 $59.4 $49.9 84%

Total Implementation Expenses 8 $55.9 $46.2 83%

Gas Total Expenditures 9 $13.7 $13.3 97% Total Implementation 10

Expenses $12.8 $12.2 95%

1 Energy Efficiency Program Plan (EEPP) for 2012, Settlement of the Parties, November 1, 2011, Docket 4295, page 2

2 See 2012 EEPP Settlement of the Parties, Docket No. 4295

3 Actual spending in 2012

4 See 2012 EEPP Settlement of the Parties, Docket No. 4295

5 Id , at p. 1

6 Includes implementation expenses, EERMC costs, shareholder incentive, co mmitments and evaluation expenses

7 Total expenditures excluding expenses from committed applications (electric programs only) as of December 2012

8 Includes all DSM program-related expenses, i.e. incentives, admini stration and general expenses, marketing, sales, technical as sistance and training. These are also net of the co -payment amounts paid directly by Small Business and Large Commercial program partic ipants.National Grid 2012 Energy Efficiency Year-End Report 4 To achieve the primary goal described above, th e Company employed four strategies initially introduced in the 2012-14 Energy Efficiency and Sy stem Reliability Procurement Plan (the “ThreeYear Plan”) in Docket 4284. The first strategy was “E nergy Efficiency is For Everyone.” It focused on broadening the portfolio of programs and removing pa rticipation barriers so that every Rhode Island customer could benefit and more would participate. The Company was successful in increasing participation in its programs throughout the year. The Residential New Construction program created a new gateway for participation through its renovation/rehabilitation p ilot. The EnergyWise program used Heat Loans to help many more cust omers afford to participate, the Energy Star Lighting program provided new fact sheets to help increase customer knowledge and awareness of lighting options, and the Energy Star Products program made participation fun through the “Oldest Refrigerator in Rhode Island” contest.

The second strategy was “Reaching Customers Where They Live and Work.” In this strategy, the Company focused on bringing energy efficiency offe rings to customers in ways that increased the value of energy efficiency specifically for them . In 2012, the Company worked diligently on its Strategic Energy Management Plan (SEMP) to help develop long-term relationships with its large customers and, thus, align with their typical way of doing business. Additionally, the residential HVAC program continued on its path to become mo re streamlined by extending the responsibilities of its electric lead vendor, Conservation Serv ices Group (CSG), to encompass the gas program operations.

The third strategy was innovation. The Company’s residential pilots provided the foundation for innovation by testing new methods and products like behavioral initiatives, communicating, Wi-Fi thermostats, and boiler load controls. Additionally, products that were tested in pilots in 2011, such as ECM pump motors and Wi-Fi ther mostats, were fully integrated into the programs for 2012. In addition, the System Reliability Procurement (SRP) initiative began piloting ways in which energy efficiency measures, such as Wi-Fi thermostats and smart plug-enabled window air conditioners, can provide load relief in a targeted area. More in formation on SRP can be found in the 2013 System Reliability Report, appr oved in Docket 4367.

The fourth strategy was economic growth. In additi on to the bill savings and benefits described on the previous page, the Company also looked for new ways to add Rh ode Island jobs. The EnergyWise program implemented a new model, in which a network of independent contractors completed all single family weatherization jo bs. Additionally, during 2012, a collaborative partnership between the State of Rhode Island and a new Single Family Income Eligible lead vendor defined the role for another Rhode Island industry partner.

Another goal of the 2012 Plan was to achieve electr ic and gas savings targets established in the 2012 EE Program Plan, which were consistent with the go als established for 2012 in the Three-Year Plan. The 2012 electric savings target was 128,570 MWh. At year’s end, the Company achieved 119,666 MWh energy savings, which represents 93% of that goal. The Company also established a benchmark of 23,930 annual kW savings, and at year’s end it had achieved 19,947 kW.

The 2012 gas savings target was 231,548 annual MMBtu. At year’s end, the Company achieved 229,811 annual MMBtu, which represents 99% of that goal. Detailed savings information can be found in Attachment 1, tables E-1, E-2 and Attachment 2, tables G-1 and G-2.

The following sections outline the highlights for the different programs and initiatives that comprise the 2012 Rhode Island Energy Efficiency Portfolio. Many activities undertaken in 2012 laid the foundation for inclusion in the 2013 Energy Effici ency Program Plan (EEPP), approved by theNational Grid 2012 Energy Efficiency Year-End Report 5 Commission in Docket 4366. Some of these activi ties are highlighted below as well, even though they are expected to yield results in 2013.



## Residential Programs

Overview

In 2012, the residential sector was cost-effective with total resource benefit cost ratios of 2.12 for electric programs and 2.23 for gas programs. The Company spent approximately 83% of the electric residential implementation budget, achieved 104% of electric targeted annual energy savings, and achieved 78% of electric targeted annual dema nd savings. The Company spent approximately 111% of the gas residential implementation budget and achieved 93% of gas targeted annual energy savings. While many of the gas and electric programs experienced a slow start, overall progress improved throughout the year. The Company was ab le to dynamically administer the programs so that the sector had a strong finish in both fuel type s. Additional details on spending and savings by program can be found in Attachment 1, tables E-1, E-2, E-3 and Attachment 2, tables G-1, G-2 and

G-3.



## Residential New Construction

The Rhode Island Residential New Construction (R NC) program promotes the construction of highperforming, energy efficient, single and multi-fam ily homes, as well as the education of builders, trades people, designers, and code officials. Th e program continuously advances caliber of building performance throughout the state, envisioning a housing market saturated with high-performing, zero-energy homes. Furthermore, the program is committed to reaching new builders and completing an increased number new cons truction projects across Rhode Island.

The program is fuel-neutral and provides participating builders with technical and marketing
assistance. It is also structured in tiers to maxi mize participation while still offering incentives that allow for increased energy efficiency.

Overview of Performance

Rhode Island RNC program had a very successful year in 2012. In spite of fairly flat construction starts, the program met its participation target , and both 2012 pilots, “Reno/Rehab” (renovation and rehabilitation) and lighting, were well-received by customers, and helped to inform future program direction.

The participation benchmarks for
Tiers I and II were exceeded and six projects qualified for Tier III, the highest tier of performance. Fewer 2012 units in the simpler Code Plus component of the program resulted in more units participating in higher Tiers, particularly Tier II, which delivers greater savings to both theNational Grid 2012 Energy Efficiency Year-End Report 6 program and Rhode Island customers. Overall, th e program reached more builders, architects, and developers than in past years, which led to increased participation in the program.

Highlights

The RNC program delivered several training sessions and presentations in 2012, addressing various topics and audiences. Examples include presentations to the Rhode Island Housing staff, advanced building training for builders, architects, and HVAC contractors, lunch and learn meetings with housing developers, code training for approximately 40 building officials, and full day training for vocational school
students on ENERGY STAR® Homes Version 3.

The program was also represented at Journal of Light Construction (JLC) Live, the Rhode Island Home Show, the Rhode Island Builders Association’s “Help the Heroes” golf tournament, and at the second Annual Home Show and Education Fair hosted by the Rhode Island Building Officials Association. These events provided great opportun ities for National Grid to both network amongst industry participants, and to cross-promote othe r residential energy efficiency offerings and

services.

Reno/Rehab Initiative: This effort proved to be a great point of entry into the larger program with initial engagement and subsequent discussions, a nd in some cases, influencing decisions to turn Reno/Rehab projects into full gut rehabilitations . Getting to the decision-makers early in the process ensured that whichever option was ch osen, the program requirements were seamlessly incorporated into the specifications. The meetings facilitated by National Grid with vendors and affordable housing project teams were helpful in growing participation.

Furthermore, many new builders participated in the program directly because of the extensive outreach efforts of the Reno/Rehab initiative. Overall, almost 500 units were touched and about 100 of these became full gut rehabilitations that were served by the program, with the remaining units being directed either to the EnergyWise or Commercial & Industrial (C&I) Retrofit programs or the Deep Energy Retrofit pilot.

One example of the many success stories from the Reno/Rehab initiative is the Phoenix Medina project. Initial outreach suggested that Code Plus might be the best option, but Reno/Rehab was then considered and having weighed all the options, the owners decided to gut the buildings. Two buildings were served by the Deep Energy Retrofit pilot and 83 units enrolled in the Rhode Island RNC Program. The 12 units completed in 2012 scored HERS 49-57 and qualified for Tier II incentives.National Grid 2012 Energy Efficiency Year-End Report 7 Noteworthy Program Projects

After seven years of trying to bring Green Hill Builders into the program, Code Plus finally motivated this company to enroll 50-60 units, some of which ma y achieve Tier I. These projects will allow the builder to gradually improve building practices and achieve higher tiers in the future.

The Program is also working with two projects that are incorporating monolithic structural slabs. This strategy will help decrease overall cons truction costs and make ENERGY STAR® Version 3 simpler to attain.



## High Efficiency HVAC (electric & gas)

The High Efficiency HVAC program (heating and coo ling) demonstrates to customers and contractors the benefits of high-efficiency heating, water heating, cooling, and system controls. In addition, it facilitates the purchase of efficient equipmen t by offering rebates to offset the premium equipment’s higher cost. The program offers an a rray of rebates ranging from ductless mini-splits to Wi-Fi thermostats to boiler reset controls. Many of these rebates are tiered in order to promote the most efficient heating and cooling equipment while also maximizing participation. Furthermore, the program provides installation services and quality co ntrol inspections, ensuring that all equipment is properly sized, installed, sealed and performing optimally. All rebates and services are provided with the goal of providing a seamless customer ex perience that seeks dire ct energy efficiency improvements.

Overview of Performance
In 2012, the program faced challenging gas and elec tric energy savings goals and participation targets. Although the program was not able to meet its electric or gas savings goals for the year, it performed very well in the latter half of the year as its newly-introduced measures and strategies began in the course of the year to help move the market and amass participation.

Highlights
Several new measures were introduced to the program in 2012, including the heat pump water heater and the Wi-Fi thermostat. The heat pump water heater, with high energy savings and a $1000 rebate, was very popular with contractors and Rhode Island customers. It was so popular, that for a period of time in the fall, units were on backorder from retail stores. Wi-Fi thermostats also did well, and will be heavily promoted in 2013. The Company remains committed to moving the market toward the mo st efficient HVAC equipment, including heat pump water heaters, mini-split heat pumps, and condensing gas boilers.

Another area of success in 2012 was the introduction of strategies, led by the Early Boiler Replacement (EBR) and the programmable thermostat buy-down, to spur program performance. The EBR rebate, a generous incentiv e for gas customers replacing their old, working gas boiler with a new, highly efficient model, genera ted significant participation in the program. The thermostat buy-down, which included retail discou nts at stores, such as Benny’s and Building 19,National Grid 2012 Energy Efficiency Year-End Report 8 and websites like EFI e-commerce, was also extr emely successful and represented a significant portion of the program’s total energy savings in 2012. The Company will continue to employ this buy-down model in 2013 for the Wi-Fi thermostat.

The electric component of the program continued to execute Quality Installation Verification (QIV) classes across the state, explaining to HVAC contractors the importance and benefits of the right-sizing and down-sizing of HVAC equipment. This effort is paying dividends, as the program saw an increase of 32% in duct sealing production levels. These types of trainings will also be offered around gas measures beginning in 2013.

Finally, in the latter months of the year, the Company selected a new vendor, Conservation Services Group (CSG), to implement th e gas component of the program. CSG, already the manager of the electric component of the prog ram, will oversee the entire program and will be responsible for all HVAC-related tr ainings and contractor outreach in 2013. This is an excellent opportunity for the Company to offer a single, comprehensive experience to its Rhode Island customers, and a renewed focus on building contractor engagement and confidence.



## Energy Wise

The EnergyWise program offers customers free home energy assessments of their homes and information on their actual electric usage. Participan ts in this program receiv e financial incentives to replace inefficient lighting fixtures , appliances, thermostats, and insu lation levels with models that are more energy efficient. The program addresses base load electric use as well as electric heat in all residential buildings. It also identifies additional energy saving measures in weatherization and heating system replacements.

Overview of Performance

The EnergyWise program had a successful year meeting and exceeding its 2012 electric and gas savings goals, respectively, despite a significant increase from goals in 2011. Lag times between initial customer contact and home energy asse ssments being performed were reduced to the targeted fifteen days by year’s end, and an impr essive average of over sixteen lighting products were installed in each single-family home.

Highlights
2012 was a highly successful year for the EnergyWi se program highlighted by program innovation and new product offerings. The program increase d electric savings within the home energy assessment by installing advanced power strips in applicable installations. To showcase the transformation in the lighting market, one or two LED lamps were introduced into some households so that customers could learn and familiarize themselves with the new technology.National Grid 2012 Energy Efficiency Year-End Report 9 The year began with a new implementation model that required all weatherization on single family homes to be completed by a qualified network of independent contractors. This new process was well-received and the year ended with approximately twenty contractors working within the network. Toward the end of the year, the Company also established a home performance contractor network. Through a Request for Pr oposal (RFP) process, the Company recruited contractors who would provide both home energy assessments and weatherization services to provide the customer with a co mprehensive experience. This effort will continue in 2013.

2012 was also the first full year of service for th e Company’s Heat Loan and it also was a major success. The Heat Loan provided zero-interest, ener gy efficiency financ ing to 548 residential customers. Over $3.3 million was loaned out, enabli ng projects that spanned from heating systems, water heaters, and weatherization to move forward. Toward the end of the year, loans
for customers with lower credit scores were introduced by the Capital Good Fund. This new collaboration provided financing to customers that may not have qualified for
traditional loans.

Another exciting program enhancement was the GetHouseFit campaign. Marketing materials, education packets, and two auditor
vehicles were labeled with the GetHouseFit message to encourage customers to make their house more energy efficient, or “fit” by requesting home energy assessments.

Customers were encouraged to take this step by the traditional phone method but also through a new, online request tool. Other program enhancemen ts included weatherization services extended to tenants in rental properties, and the developm ent of home energy assessment and Heat Loan videos to educate customers about the processes. The videos were posted on the Company’s
website.

Multifamily services greatly improved in 2012, su ccessfully serving over 2000 units (both market rate and income eligible). By the third quarter, multifamily customers were benefitting from efforts to better coordinate services and offerings availa ble through EnergyWise as well as other programs – most notably C&I Gas, the Reno/Rehab pilot of Residential New Construction, and High Efficiency Heating rebates. With coordinated meetings, including the integral involvement of Rhode Island Housing at many, customers were better able get a comprehensive view of all energy efficiency offers available to them. Owners of multifamily buildings were able to take advantage of new measures, including advanced smart strips and GU 24 pin-based LEDs for interior and exterior lighting.



## ENERGY STAR® Lighting

The ENERGY STAR® Lighting program is run in collaboration with other regional program administrators to give all customers the opport unity to participate in a comprehensive set of measures. Customers can purchase discounted li ghting equipment through catalogs and store buy-National Grid 2012 Energy Efficiency Year-End Report 10 downs, making it affordable for th em to have advanced and efficient lighting technologies in their
homes.

Overview of performance
The 2012 residential lighting program is another example of a well-implemented year of activity. It was able to reach over 150,000 customers in meeti ng its savings goals. De spite changing market conditions, the Company continues to administer the program in a way that keeps lighting at an attractive price point that demonstrates how easy it can be to save energy. This makes it an effective contributor to the Company’s “Energy Efficiency is For Everyone” objective.

Highlights
In 2012, National Grid promoted the light bulb finder application for smart phones which was awarded “Top 100 New Home Products for 2012” by This Old House . The application was featured
in the November issue of This Old House and online at www.thisoldhouse.com . Light bulb finder allows consumers to easily view and select effi cient lighting options to replace their traditional
bulbs.

Videos and point-of-purchase information were used throughout the year to communicate changes in the lighting market. Instead of purchasing lighting based on the wattage, customers were being asked to purchase based on light output, or brightness, which is measured in lumens. Lighting
color also became a factor for customers to consider in their purchase. The Company’s tools and materials helped to increase knowledge and awareness around available lighting options. All these changes will continually be communicated to assist customers in selecting ideal lighting.

The Company also supported breast cancer research by sponsoring the Gloria Gemma Foundation and the Flames of Hope weekend. Additionally, special pink-based compact
fluorescent bulbs were sold in retail stores with proceeds going to the Gloria Gemma Foundation.

In 2012, the Company also began a school fundr aiser program promotin g compact fluorescent lighting and advanced power strips. Each participating school receives an overview of the program and tips on how to improve energy efficiency at ho mes. All proceeds of the sale go directly back to
the school.National Grid 2012 Energy Efficiency Year-End Report 11 

## ENERGY STAR® Appliances

The ENERGY STAR® Appliances program is also ru n in collaboration with other regional program administrators to give all customers the opport unity to participate in a comprehensive set of
measures. Customers can receive rebate s for qualifying, major appliances.

Overview of performance
The ENERGY STAR® Products program also had a very successful year highlighted by the “Oldest Fridge in RI” contest which promoted refrigerator recycling to customers in a fun and tangible manner. The program exceeded the planned goal while serving over 25,000 customers.

Highlights
The “Oldest Fridge in RI” competition was an effort conducted by the Company to promote refrigerator recycling. Customers turned in their old refrigerators and recorded the year they were
made to see who had the oldest on in the state. The contest ended in a tie with two refrigerators turned in that were from 1939. During the contes t period, more than 3,400 appliances were picked up and recycled. Almost 7,000 units were recycled during the program

year.

ENERGY STAR Appliances has the second largest number of residential participants after ENERGY STAR Lighting. The popularity of the program can be attributed to meeting
consumer demand for electronics and household goods.



## Income Eligible Programs

Overview

In 2012, the low income DSM sector was cost-effective with total resource benefit cost ratios of 2.09 for electric programs and 1.78 for gas programs . The Company spent approximately 63% of the electric low income implementation budget, achieved 86% of electric targeted annual energy savings, and achieved 74% of electric target ed annual demand savings. The Company spent approximately 62% of the gas low income implementa tion budget and achieved 72% of gas targeted annual energy savings. Additional details on spending and savings by program can be found in Attachment 1, tables E-1, E-2, E-3 and Attachment 2, tables G-1, G-2 and G-3.



## Income Eligible Services

The Income Eligible program was delivered by the State Energy Office and local Community Action agencies. It provided the same services as th e EnergyWise program, described below, but no customer contribution is required for equipment installation.National Grid 2012 Energy Efficiency Year-End Report 12 Overview of Performance

Performance in 2012 marks a year of steady progress in Income Eligible Serv ices. Energy savings and participation achievements were higher in 2012 compared with the past two years – a remarkable achievement considering higher program goals and so me lingering effects of a major challenge from late 2011. In particular, achievement in the Pr ovidence territory demonstrated the success of collaboration in the face of challenges.

Highlights
Despite some lingering effects from a federal in vestigation of Providence Community Action Program (ProCAP) in late 2011, the energy savings goals in 2012 for the Providence territory were met by the end of the year. Neighboring Comprehensive Community Action Program (CCAP) graciously provided support by delivering services in Providence during the first half of the year in addition to responsibilities in their own territory . Green & Healthy Homes Initiative also worked closely with ProCAP to deliver services in the Olneyville and Valley neighborhoods. Making tremendous strides, ProCAP has fully re-staffed an d trained new energy auditors to implement the program, and is at full capacity to continue work moving forward.

In 2012, National Grid initiated a Request for Info rmation (RFI) followed by a Request for Proposals (RFP) for a new lead vendor for this program. The result of careful consideration was a new approach to program management that shifts away from a sole, lead vendor, to a collaborative relationship between an Industry Partner and the Stat e of Rhode Island. Services will continue to be delivered through the CAPs and everyone is looking forward to the benefits this model will bring to customers, CAPs, and program impl ementation partners in 2013.

In light of production challenges in Providence, th e most densely populated territory, a transfer of funds from Low Income Gas to C&I Gas was made with approval by the Division and EERMC. The amount totaling $300,000 was used to serve low in come multifamily buildings, several affiliated with Rhode Island Housing. This transfer cont ributed to the underspending relative to budget.

The program implemented new measures in 2012 incl uding weatherization for mobile homes, heat pump hot water heaters, advanced power strips, and LED light bulbs, to expand the portfolio of offerings to this sector.

One customer’s story serves as an example of the benefits available to all income eligible customers
as well as the devotion and hard work of the CAPs . Tri-Town Community Action weatherization staff went above and beyond to serve a customer, who happened to be a Navy veteran, when he called with an emergency heating issue. Not only did th e weatherization representatives restore heat to his home by providing a new furnace and insulation, but they also believed he might benefit from Tri-Town’s other programs. As a result, they referred him to their Elder Care Management Department. National Grid applauds the efforts of Tri-Town and all the CAPs who provide the same
benefits for Rhode Island residents.



## Commercial & Industrial Programs

Overview

In 2012, the Commercial & Industrial (C&I) DSM sector was cost-effective with total resource benefit cost ratios of 2.32 for electric programs and 1.19 for gas programs. The Company spent approximately 88% of the electric C&I implementa tion budget, achieved 89% of electric targetedNational Grid 2012 Energy Efficiency Year-End Report 13 annual energy savings, and achieved 85% of electr ic targeted annual demand savings. The Company spent approximately 89% of the gas C&I implementa tion budget and achieved 106% of gas targeted annual energy savings. Strong gas program perfor mance was driven by both a number of large projects as well as the growing gas small business pr ogram, while electric energy savings appear to have been influenced by continuing economic conditions, as described in the next section. 9
Additional details on spending and savings by prog ram can be found in Attachment 1, tables E-1, E2, E-3 and Attachment 2, tables G-1, G-2 and G-3.



## Large Commercial New Construction

This program promotes energy efficient design an d construction practices in new and renovated commercial, industrial, and institutional buildings. It also promotes the installation of high efficiency equipment in existing facilities during building remo deling and at the time of equipment failure and replacement. The program offers technical a nd design assistance and rebates to reduce the incremental cost of high efficiency equipment over standard efficiency equipment. Large
Commercial New Construction is known as a “lost opportunities” program, because a customer who does not install energy efficient equipment at the time of new construction or equipment replacement will likely never make the investment fo r that equipment, or will make the investment at a much greater cost at a later time. Commissioni ng or quality assurance is also offered to ensure that the equipment and systems operate as intended.

Overview of Performance
The slow economic recovery environment in Rhod e Island that continued in 2012 was a challenge for the Company’s C&I energy efficiency programs es pecially in the new construction area. Despite these difficult circumstances the Company made impressive progress towards its 2012 electric savings goals and much of it is attributed to th e Bright Opportunities initiative, highlighted in a
section below.

Highlights
All savings achieved in this program, both electric and gas, were achieved in a very cost effective manner. The Company had several great projects this year. For example, gas savings at the Boston Scientific Corp in Coventry accounted for 23% of our new construction goals (approximately 92,500 therms).

In the first quarter of 2012, the Company launch ed the much anticipate d Bright Opportunities Rhode Island Commercial & Industrial Upstream Li ghting Initiative, more commonly referred to as “Upstream Lighting.” This initiative was designed to lower barriers to commercial and industrial customers adopting Energy Star certified LED lamps and CEE approved high performance linear fluorescent lamps by eliminating th e application required for a custom er to acquire these products.

Through an agreement with participating electrical di stributors, a portion of the higher cost of select eligible lamps is paid directly to the distributor by National Grid after the distributor successfully submits lamp and customer data. This means that commercial lighting customers get premium replacement technology for the price of a conventi onal product if they provide the required data. Customers have responded very positively to this new way to participate in the Company’s

initiatives.National Grid 2012 Energy Efficiency Year-End Report 14 In addition to being popular with customers, the initiative provided impressive savings for the Company’s New Construction Program in 2012. More than 50% of the New Construction Program’s goal, or 15,300 MWh, was achieved through this path.

In 2012, the Company completed the Rhode Island commercial buildings code compliance baseline study. This study was used as reference to deve lop a strategy for the Company’s code compliance support initiative to the State of Rhode Island for 2013. The Company also developed a long-term strategy and key implementation components of the codes and standards initiatives along with a methodology to claim savings as a result of this effort. Details of this strategy can be found in the 2013 Energy Efficiency Plan.

With NSTAR in Massachusetts, the Company conti nued to test the Advanced Energy Office (AEO) Initiative (also known as Office-of-the-Future or “OTF”) based on the guidelines developed by the AEO Consortium. There were some challenges in identifying tenant improvements sites that could be used as pilot spaces. The Company worked with two tenant spaces (both in Massachusetts) and created the design and savings package for these cu stomers, and also collected incremental cost data. In 2013, with the addition of at least four more test spaces, the Company will gather enough data on energy and cost savings for office tenant improvement spaces, and this will help establish an offering specific to this market sector, both in Rhode Island and Massachusetts.

In the fourth quarter of 2012, the Company reac hed out to new construction trade allies and conducted focus group discussions. The main purpose of this feedback is to understand the current needs of the new construction market and to alig n our new construction program offerings to fit those needs. The Company continued these focus gr oup discussions in the first quarter of 2013 and will make recommendations to modify the new construction offering.



## Large Commercial Retrofit

This is a comprehensive retrofit program designed to promote the installation of energy efficient electric equipment such as lighting, motors, and heating, ventilation, and air conditioning (HVAC) systems in existing buildings. All commercial, industrial, and institutional customers greater than 200 kW average demand are eligible to participate. The Company offers technical assistance to customers to help them identify cost-effective conservation opportunities, and pays rebates to assist in defraying part of the material and la bor costs associated with the energy efficient equipment.

Overview of Performance
Uncertainty in the business environment continued to affect customers’ willingness to invest in noncore business improvements even if paybacks we re attractive compared to other investments. However, efforts such as educating customer s, making a concerted effort to understand a customer’s needs, and enhanced incentives we re influential countermeasures that drove the success in both the gas and electric areas of this program in 2012.

Highlights
Lighting continues to be strong source of cost effe ctive savings. Indoor and outdoor applications of LEDs in 2012 continued their upward pattern. Examples of lighting and other projects are as follows:

• Biltmore Hotel, Providence saved approximat ely 1.6 Million kWh savings through a combination of lighting and Variable Speed Drive (VSD) retrofit.National Grid 2012 Energy Efficiency Year-End Report 15 • Aspen Aerogels gas retrofit accounting for 26% savi ngs of our Retrofit goal (197,049 Therms).

• The company assisted the Providence Place Mall install the newest energy efficient lighting equipment that benefits the Mall, shoppers a nd everyone using the Mall parking garage. The Parking garage was retrofitted with 2,000 of th e latest LED fixtures (replacing fluorescent fixtures), saving the Mall’s owners more than $165,000 in annual electric bills, with two million kWh savings. Company provided $400,000 incentiv es to offset the cost of upgrade.

In 2012, the Company pursued different strategies in pursuing energy efficiency for the following
market sectors:

• Manufacturing: The Company launched an initia tive targeted at the largest manufacturing
customers in Rhode Island. This initiative offe red two levels of scoping studies. Six customers have participated in the two levels of scoping study offered through this initiative. The Company also spent the latter half of 2012 developing a pilo t initiative with a dedicated vendor to serve
the industrial customers in 2013.

• SEMP: The Company signed Memorandum of Understanding (MOU) with two Rhode Island universities in 2012, to pursue multiyear strate gic energy management plans. Many energy efficiency projects were identified in 2012 for Brown University through this partnership. The Company had a kick-off meeting with University of Rhode Island (the second SEMP customer) in the first quarter of 2013.

• Grocery stores: The third party implemented Ener gySmart Grocer (ESG) Initiative was launched in the second quarter of 2012. The implementati on team spent a major portion of 2012 building connections with the RI grocery customers and conducting site surveys thus creating a robust pipeline of projects for 2013.

• Municipal Buildings: This pilot was launched in the latter half of 2012 and offered enhanced and fixed electric and gas incentives, with dedica ted technical resources and project expeditors (PEX). Along with Office of Energy Resource s (OER), the Company conducted a kick-off meeting with municipal officials. This pilot rolle d into a program offering beginning 2013.

• Multifamily Buildings: In 2012, there were severa l planning meetings co nducted internally and with stakeholders enabling the Company to offe r a stand alone multifamily initiative in 2013, integrating residential and commercial multifam ily spaces, with consistent offering between residential and commercial spaces, incorporating electric and gas measures.

• Datacenters: The Company conducted some exploratory projects with one vendor and developed new assessment tools and new ways to ca pture the interest of key customer decision makers. In addition, sites were identified to install wireless data loggers with the intention of creating a robust pipeline of projects in 2013.National Grid 2012 Energy Efficiency Year-End Report 16 

## Small Business Direct Install

This award winning program provides direct installa tion of energy efficient lighting and non-lighting retrofit measures, including gas measures. Customers with an average monthly demand of less than 200 kW or annual energy usage of less than 483,000 kW h are eligible to partic ipate. The customer pays 30% of the total cost of a retrofit. This am ount is discounted 15% for a lump sum payment or the customer has the option of spreading the payments over a two-year period interest-free.

Overview of Performance

2012 was another great year for the Small Business Di rect Install (SB/DI) program. It exceeded its savings aggressive goals with lower than expected im plementation expenses. This is an indicator of the Company’s productive and cost-effective relation ship with RISE Engineering Inc., its third-party vendor. In addition, the program was able to se rve hundreds more customers than was originally planned.

Highlights
In 2012, this program served a wide variety of customer types with many exciting projects. Successful projects were completed at restaurants, car dealerships, bakeries and small manufacturing facilities, just to name a few. Lighting Emitting Diode (LED) lighting technology was an important part of this success and will contin ue to be well into the future. Customers were excited by the light quality, low maintenance, and energy savings that LED lamps and fixtures can provide.

Below is a small sample of the projects we helped our customer s complete in 2012.

• Jan Companies : National Grid worked with the Jan Companies of Cranston and upgraded their nineteen (19) Burger King locations stat ewide with exterior LED parking lot fixtures. The combined estimated savings of th ese 19 locations is over 500,000 kWh.

• Chelo’s Restaurants : Chelo’s is a family-owned chain of restaurants in RI. National Grid was able to reduce electric and gas consumption at each of their nine (9) locations. We were able to install pre-rinse spray valves, and re place their incandescent lighting with screw-in LED bulbs. The annual estimated savings fo r the lighting upgrade is over 280,000 kWh.

• Westerly Toyota : Westerly was one of the hardest hit areas of Rhode Island from SuperStorm Sandy. National Grid worked quickly with Valenti Toyota of Westerly in the 4th quarter to upgrade exterior lighting at their facility. The upgrade at this site will save upwards of 500,000 kWh annually.

A larger list of project types and case studies in both Rhode Island and elsewhere in New England
can be found at: https://www1.nationalgridus.com/smallbusiness

The “Main Streets” approach, which is detailed on page 90 of the 2012 EEPP, was a big hit among all businesses in 2012 including those in economically disadvantaged ar eas of Pawtucket, Providence, Woonsocket, West Warwick and Cranston. Savings achieved through this initiative helped these businesses reduce costs and improve customer and employee comfort in an economy that continues to struggle.National Grid 2012 Energy Efficiency Year-End Report 17 

## Pilots and Other Initiatives

Residential Behavior Pilot

The Residential Behavior pilot was designed to determine the level of savings achievable through the integration of behavioral messaging and the installation of communicating mobile devices such as thermostats, in home displays (IHDs) and smar t outlets. The pilot also aimed to determine the extent to which demand response events could be successful by communicating with the
thermostats installed.

Launched in April, the Company recruited ninety pa rticipants. These partic ipants had the ability to view their electric usage in real time through an IHD or internet portal with its associated estimated cost. They could also control their HVAC systems remotely by using
mobile devices for communication. The Company was able to gather data on the frequency with which participants connected to the web portal to view their electrical usage as well as test the reliability and communication quality of the
different technical devices.

Demand response events were also
conducted in which actual data was
collected on reductions in air conditioning load and patterns in customers opting out were observed.
The load reductions were measured at each individual household. Different deployment strategies
and event structures were used during the events to ascertain the most effective methods.



## Residential Products Pilot

Three, new pilots began in 2012: the Boiler Load Control pilot, The Home Energy Monitoring pilot and the Automatic Temperature pilot.

The Boiler Load Control pilot completed site installations and evaluations throughout the year. The boiler controls performed flawlessly in the field and showed that significant energy savings can be achieved.

The other two pilots both involved thermostats but had distinct strategies and goals associated with each. The Home Energy Monitoring pilot used a thermostat to control the HVAC syst em and serve as the communication device for an existing electric meter to present usage and cost information on a web portal or thermostat user in terface. This enabled the participant to have a more in-depth knowledge of their energy consumption.National Grid 2012 Energy Efficiency Year-End Report 18 The Automatic Temperature pilot tested the savings potential of controlling temperatures based on projected weather conditions and allowing the uni ts to be controlled during demand response events. The units were also used to try to create a profile of each home’s thermal envelope and thereby identify
homes that needed additional air sealing or insulation. The units used advanced forecast modeling and profiling in addition to the standard communicating thermostat control parameters. This technology will also
be tested to determine if customers are more comfortable during demand response events than traditional thermostat control technology.



## Regional Greenhouse Gas
Initiative Pilots

The Deep Energy Retrofit pilot is designed to determine the energy savings and market potential for super insulation retrofits in Rhode Island. In 2011, the pilot held a full-day workshop and also recruited single-family and multi-family owners, builders, developers and architects in the program. Two projects began in 2011. They include a two-familyresidence in North Kingstown and a threefamily residence in Providence. Construction was completed in 2012. Two more projects are under review for a three-family in Providence and a single-family in Wakefield.
Additional information is included in the 2012 RGGI Report, Attachment 5.National Grid 2012 Energy Efficiency Year-End Report 19 

## Residential Energy Efficiency Education Programs

National Grid has again supported the energy education curriculum and teacher professional development in partnership with the National Energy Education Development (NEED) Project. Rhode Island teachers have the opportunity to at tend full-day workshops that focus on the science of energy, energy efficiency, and the generation of electricity. The workshops, hosted for up to 30 teachers, allow K-12 educators to improve and enha nce their science and energy skills while helping students understand energy and ways to more effi cient at home and at school. In 2012, 50 Rhode Island educators participated in 2 workshops hosted in Providence.

Teachers received hands-on kits for the classroom and curriculum. The kits provided to teachers included topics such as Exploring Wind, Explor ing Photovoltaics, Exploring Hydropower, Building Science and The Science of Energy. Educators were ab le to select the resources they felt were most appropriate for their classroom goals.



## Community-based Initiatives

In 2011 a Request for Information (“RFI”) was re leased to town pla nning departments and community-based organizations for participation in the Community-based Initiatives pilot. The goal of this pilot was to test the effectiveness of a lo cally focused, grassroots approach to promoting the residential and small business energy efficiency programs. The two participating organizations, People’s Power and Light and URI represented the towns of Cranston, East Providence, Warwick and South Kingstown in their outreach efforts and co ncluded all promotional activities on March 31,

2012.

Both organizations successfully engaged local poli ticians to promote energy efficiency, achieved local television and newspaper coverage, and ho sted events ranging from farmers markets to Chamber of Commerce events, mall events, and high school football games. Students from URI and Brown University also canvassed neighborhoods promoting EnergyWise. Both community organizations found it more difficult to approach and sell to the commercial and industrial sector.

Lessons learned from the pilot included a conclusion that it was easier to achieve program targets with the lighting program and refrigerator recycling than with EnergyWise and residential weatherization. The feedback from the two participating organizations will be considered in redesigning community-based initiatives in the future.



## Jobs Impacts

National Grid hired the New England Clean Energy Council (NECEC) Institute to conduct a study of the job impacts from National Grid’s energy effici ency programs in 2012. The study quantifies the number of workers or full time equivalent (FTE) employees in all aspects of energy efficiency in 2012, from independent contractors and plumbers to rebate processers and engineers. WAP/LIHEAP FTEs are mostly employed by the CA P agencies that deliver low income efficiency services. The study illustrates so me of the economic impacts that energy efficiency has contributed to the state, including the businesses that particip ate in the programs. The study includes a list of approximately 500 businesses partic ipating in energy efficiency. Approximately 70% of those
businesses are located in Rhode Island. The fo llowing table illustrates the study’s findings:National Grid 2012 Energy Efficiency Year-End Report 20 2012 EE PROGRAMS Total FTEs

Electric Programs

Commercial and Industrial 185.48

Residential Low-Income 20.51

Residential Non-Low Income 98.35

Gas Programs

Commercial and Industrial 65.38

Residential Low-Income 14.97

Residential Non-Low Income 85.42

National Grid EE Staffing 35.50

WAP/LIHEAP Low Income Programs 23.10

Total all 2012 Rhode Island FTEs 528.71

The study’s findings were determined through interviews with certain vendors and a detailed review of all energy efficiency measures installed in homes, apartment buildings, businesses and industries throughout the state in 2012. NECEC Institute calcul ated the direct labor hours for each installation based on industry standards and discussions with contractor experts.

One FTE equals 1,575 work hours, or the total of one person working 7.5 hours a day for the 210 work days in an average year. This means that th e number of actual workers spending at least some of their time on Rhode Island energy efficiency pr ograms is far greater than the 528 FTEs identified.

The study will benefit those who work in workforce development, training or those interested in the state’s green jobs. The study is included as Attachment 4.



## System Reliability Procurement

SRP is an important effort included in the Rhode Island Least Cost Procurement law, R.I.G.L. §39-1- 27.7, which entails identifying transmission or di stribution needs that can be deferred by non-wires alternatives (NWA) projects. These projects ar e customer-based and can include some measures
that are also offered throu gh the Company’s EE programs

In 2012, the Company launched its first SRP project in the form of a pilot in Little Compton and parts of Tiverton. Based on the plan detailed in the 2012 System Reliability Procurement Report, the pilot’s primary objective is to implement a combin ation of energy efficiency and demand response
measures in customer homes and businesses in order to reduce 1MW of load on a specific substation by the end of 2017, ther eby deferring the need to build a ne w substation by four years.National Grid 2012 Energy Efficiency Year-End Report 21 This pilot was approved by the Commission on February 29, 2012 and implemented throughout the remainder of the year. The Company collaborated with its statewide EnergyWise and Small Business Direct Install programs in the promotion and deliver y of this pilot. By the end of the 2012, 31 Wi-Fi programmable controllable thermostats were installe d in 26 residential homes. Additional SRP details on 2012 activities and 2013 plans can be found in the Company’s 2013 System Reliability Procurement Report filed in Docket 4367 and ap proved by the Commission on December 18, 2012.



## Financing

The Company offers a variety of fina nce options to all customers.

In 2012, the Company offered approximately $2.8 m illion in on-bill financing to 84 Large Commercial customers. Together, they saved more than 9,600 Annual MWh. The Providence School Department was able to complete lighting retrof its at 14 buildings, saving more than 1,600 Annual
MWh.

The Company continued capitalizing the sustainable loan fund for large C&I customers that began in 2011. The Company received $1.7 million in RGGI funds in January 2012 specifically for large customer finance with on-bill repayment. More information is included in the 2012 RGGI Auction Proceeds Report, included as Attachment 5. The RGGI funds were part of the revolving loan fund and lent to 64 of the 84 customers who will save 6,440 MWh annually. In December 2012, the Company added $1 million from the 2012 Plan that wa s intended for Outside Finance. These funds will be lent to customers in 2013 along with revo lving finance funds that were not committed to

customers.

The Company has always offered financing to Small Business Customers to cove r their portion of the costs of completing an energy efficiency project. These customers have historically been able to pay back their financing through on-bill repayment. In previous years, the Small Business program funded the on-bill repayment using copayments from the DSM fund. In 2011, the Company successfully created a revolving loan fund for sm all business customers using $1.8 million of RGGI proceeds; this is in place of the copayments fr om the DSM fund. In 2012, the Company received $2.3 million from RGGI funds and included that in th e revolving loan fund. Those funds were lent to customers in 2012. The revolving loan fund continue s to receive payments from customers as they began their two-year terms. The revolving loan fund reached a point that additional funds were not requested in the 2013 Plan to offer small business customers on-bill copayments. At year end, the fund had $2.8 million revolving through it which will be lent to customers in 2013. Moving from the old system of copayments to this revolving loan fund has been successful and helped incrementally lower the EE Customer Charge in 2013.

1,707 customers participated in th e Small Business Direct Install program, the majority receiving finance totaling more than $2.3 million. Overall, the program was able to save 19,008 MWh.

The Company continued offering a 0% interest Heat Loan to residential customers to finance their portion of residential energy efficiency projec ts. The interest buy-down program was initially funded by RGGI funds in 2011. The RGGI funds were completed in 2012 and the Heat Loan continued using EE funds within the EnergyWise program.

There are currently two lenders participating in th e program, Navigant Credit Union and CitizensUnion Savings Bank. The Heat Loan can be used fo r Insulation and/or Air Sealing Upgrades, Energy Efficient Heating System Replacement, Duct Sealin g and Duct Insulation, En ergy Efficient DomesticNational Grid 2012 Energy Efficiency Year-End Report 22 Hot Water System, ENERGY STAR® Thermostat(s). Customers are eligible to receive 0% interest loans up to $25,000, for period of up to 7 years.

Five hundred forty-eight customers received Heat Loans in 2012, valued at approximately $3.3 million. They are promoted during the EnergyWise home assessment, as well as on the Company’s website, where customer-friendly guidance and prog ram FAQs also exist to keep customers well
informed. More information about the Small Busi ness Revolving Loan Fund and the Heat Loan are
available in Attachment 5.



## Rhode Island Comprehensive Marketing

In 2012, the Rhode Island Comprehe nsive Marketing program achieved its goal of increasing awareness of the availability of Energy Efficiency program offerings in Rhode Island. This
determination is based on market research testing conducted pre, mid and post campaign.

2012 was the second year that awareness wa s measured and a statewide campaign was implemented conveying a general message regarding th e EE programs to the customers. The use of mass media such as radio, and more tactical media such as outdoor and digital, served as conduits for leading customers to the Rhode Island EE page on the Company’s website.

This program amplified the efforts of the indi vidual program communication strategies in the market. The Rhode Island comprehensive media plan reached 88% of our target 5 times on average. The use of seasonal messages provided tactical support for the program communications in the market. Front-loading and consolidating the medi a activity provided greater support for the individual program messaging helping to generate participation and savings within the calendar

year.



## Shareholder Incentive

The Company’s Shareholder Incentive earnings are determined by its performance against the established annual savings goals documented in th e 2012 EEPP. The Company has earned a total of $3,055,447 for the successful implementation of its energy efficiency programs in 2012.

The Shareholder Incentive is earned by sector. An incentive is earned if savings in a sector fall between 60% and 125% of the savings goal for the se ctor. An enhanced incentive up to 125% of the target incentive is available for achieving greater s avings than the savings targ et. A cost efficiency feature of the incentive design can adjust the calculated incentive under certain conditions, for example if a sector achieves more than 100% of its savings while spending less than 95% of its budget 10 . All sectors earned an incentive for thei r 2012 performance. Two sectors (electric residential non-low income and gas commercial sectors) earned an e nhanced incentive.

More details on the Company’s Shareholder Incentive achievements can be found in Attachments 1 and 2, tables E-4 and G-4.

10 Full details on the incentive design are found in the 2011 EEPP, Settlement of the Parties, Docket No. 4209, pages 21 and 22.

# Attachment 1

Electric Summary Tables of Year End
Results(1)(2)(3)(4) (5) (6)(7)(8)(9)(10)(11) (12) (13) (14)Sector and ProgramDemand Reduction (Annual kW)Energy Savings (Annual MWh)Customer ParticipationCommercial & IndustrialTarget Actual Pct Achieved Target ActualPctAchievedApprovedTarget ActualPctAchieved Budget ActualPctAchieved Lifetime MWh $/kWhLarge Commercial New Construction8,011 5,23665.4% 30,346 20,898 68.9% 2,365 1,410 59.6% $8,834.4 $5,011.7 56.7% 237,013 $0.021Large Commercial Retrofit5,708 5,60698.2% 39,928 38,398 96.2%365529 144.9% $9,708.5 $11,231.7 115.7% 467,010 $0.024Small Business Direct Install3,982 4,246 106.6% 17,984 19,008 105.7% 1,443 1,707 118.3% $10,231.3 $9,014.8 88.1% 209,164 $0.043Community Based Initiatives - C&I$200.0 $43.6 21.8%Comprehensive Marketing - C&I$330.0 $304.4 92.2%Outside Financing Costs$1,000.0 $1,000.0 100.0%SUBTOTAL 17,701 15,08785.2% 88,258 78,305 88.7% 4,173 3,646 87.4% $30,304.1 $26,606.2 87.8% 913,188 $0.029Low Income ResidentialSingle Family Low Income Services48235573.6% 3,960 3,404 85.9% 2,501 2,654 106.1% $5,615.4 $3,549.0 63.2% 33,773 $0.105SUBTOTAL 48235573.6% 3,960 3,404 85.9% 2,501 2,654 106.1% $5,615.4 $3,549.0 63.2% 33,773 $0.105Non-Low Income ResidentialResidential New Construction24614458.6% 812 671 82.6%405406 100.2% $1,036.0 $1,259.0 121.5% 10,066 $0.125Electric HVAC2,08570133.6% 1,964 895 45.5% 3,709 1,397 37.7% $2,477.0 $1,868.0 75.4% 12,876 $0.145EnergyWise79873091.5% 8,432 8,361 99.2% 13,017 12,871 98.9% $7,541.5 $5,812.4 77.1% 86,933 $0.067ENERGY STAR ® Lighting2,1102,364 112.0% 20,174 22,533 111.7% 160,000 153,879 96.2% $4,507.4 $3,675.9 81.6% 187,771 $0.020ENERGY STAR ® Appliances507566 111.4% 4,971 5,499 110.6% 19,080 26,498 138.9% $2,045.4 $1,899.1 92.8% 43,719 $0.043Energy Efficiency Education Programs$75.0 $75.3 100.5%Residential Behavior Pilot$230.8 $216.2 93.7%Residential Products Pilot$314.7 $157.2 50.0%Community Based Initiatives - Residential$156.6 $127.6 81.5%Comprehensive Marketing - Residential$920.0 $847.6 92.1%SUBTOTAL 5,7474,50478.4% 36,352 37,958 104.4% 196,211 195,051 99.4% $19,304.3 $15,938.4 82.6% 341,365 $0.047Implementation Expenses ($ 000)Table E-1: Summary of 2012 Target and Year End ResultsNATIONAL GRID ENERGY EFFICIENCY PROGRAMS IN RHODE ISLANDSystem Reliability Procurement$221.0$61.827.9%SUBTOTAL$221.0 $61.8 27.9%TOTAL 23,930 19,94783.4% 128,570 119,666 93.1% 202,885 201,351 99.2% $55,444.8 $46,155.4 83.2% 1,288,325 $0.036Notes(1)(4) Approved Target from 2012 EEPP, Attachment 5, Table E-6(3) Pct Achieved is Column (2)/ Column (1).(6) Pct Achieved is Column (5)/ Column (4).(7) Approved Target from 2012 EEPP, Attachment 5, Table E-7(9) Pct Achieved is Column (8)/ Column (7).(10) Approved Implmentation Budget from 2012 EEPP, Attachment 5, Table E-5For Large Commercial New Construction and Large Commercial Retrofit, the implementation budget excludes commitment budgets of $1,000,000 and $1,000,000, respectively.(11) Year To Date Implementation Expenses are net of finance, TA Copay and Municipal Copays offered in 2012 to Large Commercial New Construction and Large Commercial Retrofit.(12) Pct Achieved is Column (11)/ Column (10).(14) $/lifetime kWh = Column (11)/Column (13)Commercial & IndustrialTotal Summer Winter On Peak Off Peak On Peak Off Peak DRIPE Winter Summer Lifetime Annual LifetimeLarge Commercial New Construction $26,419 $2,454 $0 $1,336 $5,613 $465 $6,295 $3,321 $3,784 $1,619 $1,633 ($100) 5,0743,5425,23658,04720,898237,013Large Commercial Retrofit $39,670 $3,097 $0 $1,532 $6,439 $744 $13,323 $6,028 $7,486 $2,863 $3,124 ($4,967) 5,6064,8855,60669,54638,398467,010Small Business Direct Install $20,522 $1,946 $0 $1,015 $4,265 $458 $7,200 $1,540 $4,287 $759 $1,510 ($2,457) 4,2462,4484,24645,88419,008209,164SUBTOTAL $86,611 $7,497 $0 $3,883 $16,317 $1,666 $26,818 $10,889 $15,557 $5,241 $6,268 ($7,525) 14,925 10,875 15,087 173,477 78,305 913,188Low Income ResidentialSingle Family Low Income Services $7,875 $173 $0 $81 $341 $26 $596 $733 $342 $363 $203 $5,017 3558063553,6993,40433,773SUBTOTAL $7,875 $173 $0 $81 $341 $26 $596 $733 $342 $363 $203 $5,017 355 806 355 3,699 3,404 33,773Non-Low Income ResidentialResidential New Construction $4,062 $202 $0 $61 $254 $18 $178 $218 $105 $109 $46 $2,871 1441261442,909671 10,066Electric HVAC $3,153 $351 $0 $182 $766 $61 $341 $160 $220 $97 $71 $903 7019697018,278895 12,876EnergyWise $16,791 $180 $0 $80 $335 $29 $1,575 $1,923 $878 $883 $557 $10,352 7301,2783007,0958,361 86,933ENERGY STAR ® Lighting $17,093 $608 $0 $427 $1,792 $125 $3,313 $4,123 $1,928 $2,022 $1,312 $1,446 2,3644,7272,36419,02122,533 187,771ENERGY STAR ® Appliances $4,517 $130 $0 $105 $441 $36 $764 $960 $460 $470 $335 $817 5666175664,6525,499 43,719SUBTOTAL $45,617 $1,471 $0 $854 $3,588 $268 $6,171 $7,384 $3,591 $3,581 $2,320 $16,389 4,504 7,717 4,074 41,955 37,958 341,365TOTAL $140,104 $9,141 $0 $4,819 $20,246 $1,960 $33,584 $19,006 $19,490 $9,185 $8,792 $13,881 19,785 19,399 19,517 219,131 119,666 1,288,325MaximumAnnualEnergyCapacityGenerationTrans MDC DRIPEWinter SummerNonElectricBenefitsNATIONAL GRID ELECTRIC ENERGY EFFICIENCY PROGRAMS IN RHODE ISLANDTable E-2: Summary of Value, kW, and kWh by Program2012 Program YearValue (000's)kW Saved MWh Saved(1) (2) (3) (4) (5) (6) Benefit/ Total Program Customer Evaluation Shareholder

Cost Value Implementation Contribution Expenses Incentive Commercial & Industrial Expenses Large Commercial New Construction 4.83 $26,419.1 $5,011.7 $386.8 $69.5 Large Commercial Retrofit 2.22 $39,670.1 $11,231.7 $6,287.8 $319.6 Small Business Direct Install 1.84 $20,522.2 $9,014.8 $2,112.2 $11.0 Community Based Initiatives - C&I $43.6 $0.0 Comprehensive Marketing - C&I $304.4 $0.0 Outside Financing Costs $1,000.0 EERMC - Large C&I $343.0 SUBTOTAL 2.32 $86,611.3 $26,949.3 $8,786.9 $400.0 $1,166.0

Low Income Residential Single Family Low Income Services 2.09 $7,875.2 $3,549.0 $0.0 $3.2 $212.4

Non-Low Income Residential Residential New Construction 3.07 $4,062.3 $1,259.0 $0.0 $63.7 Electric HVAC 1.47 $3,152.9 $1,868.0 $281.4 $1.4 EnergyWise 1.98 $16,791.2 $5,812.4 $2,568.8 $93.8 ENERGY STAR ® Lighting 3.76 $17,093.3 $3,675.9 $779.1 $86.1 ENERGY STAR ® Appliances 2.09 $4,517.5 $1,899.1 $257.9 $7.8 Energy Efficiency Education Programs $75.3 $0.0

Residential Behavior Pilot $216.2 $12.1

Residential Products Pilot $157.2 $3.8 Community Based Initiatives - Residential $127.6 $2.5 Comprehensive Marketing - Residential $847.6 $0.0
EERMC - Residential $289.0 SUBTOTAL 2.12 $45,617.2 $16,227.4 $3,887.2 $271.2 $1,091.1

TOTAL 2.24 $140,103.7 $46,725.7 $12,674.0 $674.5 $2,469.4

Notes:

(2) Year-End Value Total from Table E-2. (3) Year-End Implementation Expenses by Program from Table E-1. (5) Evaluation Costs include outside contractor services. (6) Shareholder incentives from Table E-4. NATIONAL GRID ELECTRIC ENERGY EFFICIENCY PROGRAMS IN RHODE ISLAND Table E-3: Summary of B/C Ratios, Value and Costs ($000's) 2012 Program Year

(1) RI Total Resource Cost test Benefit/Cost Ratio = Total Value/(Program Implementation Expenses + Customer Contribution + Ev aluation Cost + Shareholder Incentives).Incentive Rate: 4.40%

(1) (2) (3) (3a) (3b) (3c) (4)

Sector Approved Spending Budget Target
Incentive Annual kWh Savings Goal Actual Spending % of Approved Spending Budget adjusted target kWh savings Threshold kWh Savings

Low Income Residential $5,615,389 $247,077 3,960,083 3,552,220 $ 63.3% 3,960,083 2,376,050

Non -Low Income Residential $19,837,721 $872,860 36,352,102 16,209,690 $ 81.7% 29,703,831 17,822,298
Commerical & Industrial $29,868,045 $1,314,194 88,257,940 26,006,236 $ 87.1% 88,257,940 52,954,764 Total $55,321,155 $2,434,131 128,570,125 45,768,146 $ 121,921,854 73,153,112

(5) (5a) (6) (7) (8) (9) (10)

Sector Target Incentive
Per kWh Adj Target
Incentive Per
kWh Actual kWh % of Target Savings Savings Eligible
for Incentive Total Earned
Incentive % of Target
Incentive
Achieved

Low Income Residential $0.062 $0.062 3,403,528 86% 3,403,528 212,353 $ 86%

Non-Low Income Residential $0.024 $0.029 37,958,128 128% 37,129,788 1,091,075 $ 125%
Commerical & Industrial $0.015 $0.015 78,304,501 89% 78,304,501 1,165,984 $ 89%

Total 119,666,157 118,837,817 2,469,411 $ 101%

Notes

(3b) Column (3a)/ Column (1) (3c) Column (3) * (3b), only if 100% of Target Savings were achieved in Column (3) (4) 60% of Target kWh Savings (5) Column (2)/ Column (3) (5a) Column (2)/ Column (3c) (6) Year End Savings from Table E-1 (7) Column (6)/ Column (3c) (8) If Column (7) is less than 60%, Column (8) = 0, If Column (7) is between 60% and 125%, Column (8) = Column 6; If Column (7) is greater than 125%, Column (8) = 125% of Column (3c) due to the incentive cap. (9) Column (8)*Column (5a) (10) Column (9) / Column (2) NATIONAL GRID ELECTRIC ENERGY EFFICIENCY PROGRAMS IN RHODE ISLAND
Table E-4: National Grid 2012 EE Incentive Calculation

(3a) Actual spending includes actual Implementation Expenses from Table E-1 and Evaluation Expenses from Table E-3. It exclude s EERMC costs and Outside Finance
Costs. (2) Equal to the incentive rate (4.40%) x Column (1) (3) Approved savings goal from 2011 EEPP (1) Budget from 2012 EEPP. Includes Implementation and Evaluation Expenses; excludes EERMC Costs, Commitments and Copays and Outside Finance Costs.NARRAGANSETT ELECTRIC COMPANY

2012 DEMAND - SIDE MANAGEMENT ADJUSTMENT AND BALANCE 12 month(s) of actuals 0 month(s) of estimates

Total C&LM Revenue/Expense for Jan-Dec 2012

Actual Actual Actual Actual Actual Actual 6MTHS

JAN FEB MAR APRIL MAY JUNE Y.T.D

1. TOTAL REVENUE (A) $3,830,409 $3,692,537 $3,698,980 $3,484,968 $3,664,458 $4,059,656 $22,431,009

2. TOTAL EXPENSE (B) ($884,208) $3,083,928 $2,824,208 $72,348 $4,704,853 $2,322,842 $12,123,971

3. Cash Flow Over/(Under) $4,714,617 $608,609 $874,772 $3,412,619 ($1,040,394) $1,736,814 $10,307,038

4. Start of Period Balance (C) $14,670,934 $19,432,698 $20,097,345 $21,031,203 $24,510,224 $23,540,553 $14,670,934

5. End of Period Balance

Before Interest $19,385,551 $20,041,307 $20,972,117 $24,443,822 $23,469,830 $25,277,367 $24,977,972

6. TOTAL INTEREST (D) $47,147 $56,038 $59,085 $66,402 $70,723 $72,553 $371,948

7. End of Period Balance

After Interest $19,432,698 $20,097,345 $21,031,203 $24,510,224 $23,540,553 $25,349,920 $25,349,920

Actual Actual Actual Actual Actual Actual ANNUAL

JULY AUG SEPT OCT NOV DEC TOTAL

8. TOTAL REVENUE (A) $4,869,065 $4,940,935 $3,687,626 $3,702,527 $3,661,940 $3,723,637 $47,016,738

Program Expense $2,619,978 $3,141,079 $3,693,980 $5,129,727 $4,564,832 $15,181,349 $46,445,502 ISO FCM Expense $1,323 $404 ($964) $203 $542 $598 $11,520 RGGI 60% Expense $0 $0 $0 $0 $0 $0 $0 Other Expense $0 $0 $0 $0 $0 $0 $0

9. TOTAL EXPENSE (B) $2,621,301 $3,141,483 $3,693,015 $5,129,930 $4,565,375 $15,181,947 $46,457,022

10. Cash Flow Over/(Under) $2,247,764 $1,799,452 ($5,389) ($1,427,404) ($903,435) ($11,458,310) $559,716

11. Start of Period Balance (C) $25,349,920 $27,677,079 $29,562,739 $29,646,826 $28,307,281 $27,488,660 $14,670,934

12. End of Period Balance

Before Interest $27,597,685 $29,476,531 $29,557,350 $28,219,422 $27,403,846 $16,030,350 $15,230,651

13. TOTAL INTEREST (D) $79,394 $86,208 $89,476 $87,859 $84,814 $66,432 $866,131

14. End of Period Balance

After Interest $27,677,079 $29,562,739 $29,646,826 $28,307,281 $27,488,660 $16,096,782 $16,096,782

15. Total Incentives (D) $2,469,412

15a. End of Period Balance (minus incentive) (E) $12,627,370

15b. Commitments(D) $849,575

15c. FUND BALANCE AT YEAR-END (E) $11,777,795

(A) Revenue Report (B) Source: PeopleSoft query (C) "End of Period Balance Before Interest" from prior month. (D) Incentives and commitments are estimated until year-end (E) At Year End, $1,000,000 was moved from the Large C&I Program to the Large OBR program which has a separate fund balance.NARRAGANSETT ELECTRIC COMPANY DBA NATIONAL GRID

2012 RGGI FUNDED ENERGY EFFICIENCY ADJUSTMENT AND BALANCE

LARGE & MEDIUM COMMERCIAL & INDUSTRIAL REVOLVING LOAN FUND

Total Large C&I Revolving Loan Fund for Jan-Dec 2012

Actual Actual Actual Actual Actual Actual 6MTHS

JAN FEB MAR APRIL MAY JUNE Y.T.D

1. TOTAL PAYMENTS RECEIVED (A) $1,734,678 $0 $0 $0 $0 $0 $1,734,678

2. TOTAL EXPENSE (B) $0 $0 $0 $0 $0 $0 $0

3. Cash Flow Over/(Under) $1,734,678 $0 $0 $0 $0 $0 $1,734,678

4. Start of Period Balance (C) $945,000 $2,685,206 $2,693,396 $2,701,611 $2,709,850 $2,718,116 $945,000

5. End of Period Balance $2,679,678 $2,685,206 $2,693,396 $2,701,611 $2,709,850 $2,718,116 $2,718,116

Before Interest

6. TOTAL INTEREST $5,528 $8,190 $8,215 $8,240 $8,265 $8,290 $46,728

7. End of Period Balance

After Interest $2,685,206 $2,693,396 $2,701,611 $2,709,850 $2,718,116 $2,726,406 $2,726,406

Actual Actual Actual Actual Actual Actual ANNUAL

JULY AUG SEPT OCT NOV DEC TOTAL

8. TOTAL PAYMENTS RECEIVED (A) $0 $9,584 $16,825 $36,674 $15,305 $65,414 $1,878,481

9. TOTAL EXPENSE (B) $0 $217,984 $20,215 $19,261 $13,495 $1,945,430 $2,216,386

10. Cash Flow Over/(Under) $0 ($208,400) ($3,390) $17,413 $1,810 ($1,880,016) ($337,905)

11. Start of Period Balance (C) $2,726,406 $2,734,721 $2,534,344 $2,538,679 $2,563,862 $2,573,495 $945,000

12. End of Period Balance

Before Interest $2,726,406 $2,526,321 $2,530,954 $2,556,092 $2,565,672 $693,478 $693,478

13. TOTAL INTEREST $8,316 $8,023 $7,725 $7,770 $7,823 $4,982 $91,365

14. End of Period Balance After Interest (D) $2,734,721 $2,534,344 $2,538,679 $2,563,862 $2,573,495 $698,460 $1,698,460

15. FUND BALANCE AT YEAR-END (D) $1,698,460

(A) On-Bill Repayments received (B) New customer financing (C) "End of Period Balance Before Interest" from prior month. (D) Includes $1,000,000 transferred from the Large C&I DSM Program 12 month(s) of actuals 0 month(s) of estimatesNARRAGANSETT ELECTRIC COMPANY

2012 RGGI FUNDED ENERGY EFFICIENCY ADJUSTMENT AND BALANCE

SMALL COMMERCIAL & INDUSTRIAL REVOLVING LOAN FUND

Total Small C&I Revolving Loan Fund for Jan-Dec 2012

Actual Actual Actual Actual Actual Actual 6MTHS

JAN FEB MAR APRIL MAY JUNE Y.T.D

1. TOTAL PAYMENTS RECEIVED (A) $2,572,469 $104,873 $118,334 $129,826 $94,258 $87,055 $3,106,815

2. TOTAL EXPENSE (B) $423,382 $78,138 $162,467 $203,718 $144,165 $157,210 $1,169,080

3. Cash Flow Over/(Under) $2,149,088 $26,734 ($44,132) ($73,892) ($49,907) ($70,155) $1,937,735

4. Start of Period Balance (C) $1,044,086 $3,199,636 $3,236,170 $3,201,840 $3,137,601 $3,097,187 $1,044,086

5. End of Period Balance $3,193,174 $3,226,370 $3,192,037 $3,127,948 $3,087,693 $3,027,032 $3,027,032

Before Interest

6. TOTAL INTEREST (D) $6,462 $9,800 $9,803 $9,653 $9,494 $9,339 $54,550

7. End of Period Balance

After Interest $3,199,636 $3,236,170 $3,201,840 $3,137,601 $3,097,187 $3,036,371 $3,036,371

Actual Actual Actual Actual Actual Actual ANNUAL

JULY AUG SEPT OCT NOV DEC TOTAL

8. TOTAL PAYMENTS RECEIVED (A) $114,695 $138,926 $106,348 $193,515 $146,392 $179,572 $3,986,262

9. TOTAL EXPENSE (B) $116,091 $145,874 $260,900 $255,691 $180,809 $198,833 $2,327,279

10. Cash Flow Over/(Under) ($1,396) ($6,948) ($154,552) ($62,176) ($34,418) ($19,261) $1,658,983

11. Start of Period Balance (C) $3,036,371 $3,044,234 $3,046,560 $2,901,064 $2,847,641 $2,821,856 $1,044,086

12. End of Period Balance

Before Interest $3,034,975 $3,037,286 $2,892,008 $2,838,888 $2,813,224 $2,802,595 $2,802,595

13. TOTAL INTEREST (D) $9,259 $9,274 $9,056 $8,753 $8,633 $8,577 $108,103

14. End of Period Balance

After Interest $3,044,234 $3,046,560 $2,901,064 $2,847,641 $2,821,856 $2,811,172 $2,811,172

15. FUND BALANCE AT YEAR-END $2,811,172

(A) On-Bill Repayments received (B) New customer financing (C) "End of Period Balance Before Interest" from prior month. 12 month(s) of actuals 0 month(s) of estimates

# Attachment 2

Gas Summary Tables of Year End Results(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)Sector and Program Energy Savings (MMBtu) Customer Participation Implementation Expenses ($ 000)Commercial & IndustrialApprovedTarget ActualPctAchievedApprovedTarget ActualPctAchievedApprovedBudget ActualPctAchieved Lifetime MMBtu$/LifetimeMMBtuLarge Commercial New Construction 39,485 27,668 70.1% 51 120 233.9% 2,008.6$ 1,668.2$ 83.1% 468,898 3.56$Large Commercial Retrofit 75,814 95,485 125.9% 115 436 379.4% 2,700.5$ 2,587.4$ 95.8% 930,186 2.78$Small Business Direct Install 5,013 4,853 96.8% 158 160 101.1% 110.6$ 40.4$ 36.5% 33,707 1.20$Comprehensive Marketing - C&I121.0$ 102.3$ 84.5%EERMC Assessment-C&I59.3$ 67.3$ 113.5%SUBTOTAL 120,312 128,006 106.4% 324 716 220.7% 5,000.0$ 4,465.5$ 89.3% 1,432,7913.12$Income Eligible ResidentialSingle Family Low Income Services 7,697 5,51671.7%430 38890.2%1,765.8$1,090.2$ 61.7%110,314 9.88$SUBTOTAL7,6975,516 71.7% 43038890.2% 1,765.8$ 1,090.2$ 61.7% 110,314 9.88$Non-Income Eligible ResidentialEnergy Star®HVAC 79,712 56,631 71.0% 12,211 6,553 53.7% 2,975.9$ 2,796.1$ 94.0% 919,475 3.04$EnergyWise23,827 39,659 166.4% 2,000 4,024 201.2% 2,701.1$ 3,734.1$ 138.2% 838,003 4.46$Residential Products Pilot134.1$ 73.9$ 55.1%Comprehensive Marketing - Residential130.0$ 119.7$ 92.1%EERMC Assessment-Residential92.5$ 101.5$ 109.8%SUBTOTAL 103,540 96,290 93.0% 14,211 10,577 74.4% 6,033.6$ 6,723.8$ 111.4% 1,757,478 3.83$TOTAL 231,548 229,811 99.3% 14,965 11,681 78.1% 12,799.4$ 12,279.6$ 95.9% 3,300,583 3.72$NOTES(1) Approved Target from 2012 EEPP Attachment 6, Table G-6(3) Pct Achieved is Column (2)/ Column (1).(6) Pct Achieved is Column (5)/ Column (4).(8) Approved Budget from 2012 EEPP, Attachment 6, Table G-5(9) Pct Achieved is Column (8)/ Column (7).(11) $/ Lifetime MMBtu is Column (8)/ Column (10)NATIONAL GRID ENERGY EFFICIENCY PROGRAMS IN RHODE ISLANDTable G-1: Summary of 2012 Target and Year End Results(4) Approved Target from 2012 EEPP, Attachment 6, Table G-7. For C&I Programs, planned participation goal was the sum of planned measures. In 2012 reporting, C&I participation goal has been calculatedfrom the average savings per participant and program savings goal.(1) (2) (3) (4) (5)
Total Natural Gas Non-Gas
V alue Benefits Benefits A nnual Lifetime

Commercial & Industrial Large Commercial New Construction $3,894 $3,894 $0 27,668 468,898 Large Commercial Retrofit $8,487 $7,658 $829 95,485 930,186 Small Business Direct Install $614 $276 $338 4,853 33,707

SUBTOTA L $12,995 $11,828 $1,167 128,006 1,432,791

Low Income Residential Single Family Low Income Services $2,053 $976 $1,077 5,516 110,314

SUBTOTA L $2,053 $976 $1,077 5,516 110,314

Non-Low Income Residential
Energy Star ® HVAC $10,356 $8,032 $2,325 56,631 919,475 Energ y Wise $10,833 $7,428 $3,405 39,659 838,003

SUBTOTA L $21,189 $15,460 $5,729 96,290 1,757,478

TOTAL $36,237 $28,264 $7,973 229,811 3,300,583

Notes: (1) Total Benefits equal Natural Gas Benefits plus Non-Gas Benefits. (3) Non-Gas Benefits include electric benefits and non-resource benefits NATIONAL GRID NATURAL GAS ENERGY EFFICIENCY PROGRAMS IN RHODE ISLAND Table G-2: Summary of Value and MMBTU Saved by Program 2012 Program Year

Value ($000) MMBTU Gas Saved(1) (2) (3) (4) (5) (6) Program Benefit/ Total Implementation Customer Evaluation Shareholder

Cost Value Expenses Contribution Expenses Incentive
Commercial & Industrial Large Commercial New Construction 1.59 $3,894.2 $1,668.2 $636.2 $143.9 Large Commercial Retrofit 1.06 $8,486.6 $2,587.4 $5,245.6 $162.4 Small Business Direct Install 11.17 $614.4 $40.4 $5.7 $8.9 Comprehensive Marketing - C&I $102.3

EERMC - C&I $67.3 SUBTOTAL 1.19 $12,995.3 $4,465.5 $5,887.6 $315.1 $285.5

Income Eligible Residential Single Family Low Income Services 1.87 $2,052.7 $1,090.2 $0.0 $4.7 SUBTOTAL 1.78 $2,052.7 $1,090.2 $0.0 $4.7 $55.7

Non-Income Eligible Residential Energy Star® HVAC 2.42 $10,356.4 $2,796.1 $1,483.3 $0.0 EnergyWise 2.32 $10,832.8 $3,734.1 $911.2 $22.5

Residential Products Pilot $73.9 $0.1 Comprehensive Marketing - Residential $119.7

EERMC - Residential $101.5 SUBTOTAL 2.23 $21,189.3 $6,825.4 $2,394.5 $22.6 $244.9

TOTAL 1.68 $36,237.2 $12,381.1 $8,282.1 $342.4 $586.0

Notes:

(2) Year-End Value Total from Table G-2. (3) Year-End Implementation Expenses by Program from Table G-1. (5) Evaluation Costs include outside contractor services. (6) Shareholder incentives from Table G-4. 1) RI Total Resource Cost test Benefit/Cost Ratio = Total Value/(Program Implementation Expenses + Customer Contribution + Eval uation Cost + Shareholder Incentives). NATIONAL GRID NATURAL GAS ENERGY EFFICIENCY PROGRAMS IN RHODE ISLAND Table G-3: Summary of B/C Ratios, Value and Costs ($000's) 2012 Program YearIncentive Rate: 4.40%

(1) (2) (3) (3a) (3b) (3c) (4)

Sector Approved Spending Budget Target
Incentive Annual Savings

Goal (MMBTU) Actual Spending % of Approved Spending Budget Adjusted target MMBtu

Savings Threshold
MMBtu Savings

Low Income Residential 1,465,827 $ 77,696 $ 7,697 1,094,906 $ 74.7% 7,697 4,618
Non-Low Income Residential 5,983,762 $ 263,286 $ 103,540 6,746,333 $ 112.7% 103,540 62,124
Commercial & Industrial 5,513,505 $ 229,400 $ 120,312 4,713,352 $ 85.5% 102,851 61,711
Total 12,963,094 $ 570,382 $ 231,548 12,554,591 $ 96.8% 214,088 128,453

(5) (5a) (6) (7) (8) (9) (10)

Sector Target Incentive
Per MMBtu Adj Target
Incentive Per

MMBtu Actual
MMBtu % of Target Savings Savings Eligible for
Incentive Earned Savings
Incentive % of Target
Incentive
Achieved

Low Income Residential 10.09 $ $10.09 5,516 71.7% 5,516 $55,680 72% Non-Low Income Eligible Residential 2.54 $ $2.54 96,290 93.0% 96,290 $244,851 93%

Commercial & Industrial 1.91 $ $2.23 128,006 124.5% 128,006 $ 285,505 124%

Total 2.46 $ $2.66 229,811 107.3% 229,811 $586,036 103%

Notes:

(3b) Column (3a)/ Column (1) (3c) Column (3) * (3b), only if 100% of Target Savings were achieved in Column (3) (4) 60% of Target MMBtu Savings (5) Column (2)/ Column (3) (5a) Column (2)/ Column (3c) (6) Year End Savings from Table G-1 (7) Column (6)/ Column (3c) (8) If Column (7) is less than 60%, Column (8) = 0, If Column (7) is between 60% and 125%, Column (8) = Column 6; If Column (7) is greater than 125%, Column (8) = 125% of Column (3c) due to the incentive cap. (9) Column (8)*Column (5a) (10) Column (9) / Column (2) NATIONAL GRID NATURAL GAS ENERGY EFFICIENCY PROGRAMS IN RHODE ISLAND
Table G-4: National Grid 2012 EE Incentive Calculation

(3a) Actual spending includes actual Implementation Expenses Table G-1, and Evaluation Expenses from Table G-3 (1) Budget from 2012 EEPP. Includes Implementation and Evaluation Expenses. (2) Equal to the incentive rate (4.40%) x Column (1). (3) Approved savings goal from 2012 EEPPNATIONAL GRID - RHODE ISLAND GAS

2012 DEMAND - SIDE MANAGEMENT ADJUSTMENT AND BALANCE 12 month(s) of actuals 0 month(s) of estimates

Total C&LM Revenue/Expense for Jan-Dec 2012

Actual Actual Actual Actual Actual Actual 6 MTHS

JAN FEB MAR APRIL MAY JUNE Y.T.D

1. TOTAL REVENUE (A) $1,893,918 $2,002,496 $1,759,972 $1,134,782 $873,328 $522,793 $8,187,290

2. TOTAL EXPENSE (B) $235,149 $454,413 $1,271,326 $650,709 $873,128 $713,601 $4,198,326

3. Cash Flow Over/(Under) $1,658,769 $1,548,083 $488,646 $484,073 $200 ($190,808) $3,988,964

4. Start of Period Balance $5,229,643 $6,894,723 $8,450,795 $8,948,498 $9,442,145 $9,452,181 $5,229,643

5. End of Period Balance Before Interest $6,888,412 $8,442,807 $8,939,441 $9,432,571 $9,442,345 $9,261,373 $9,218,607

TOTAL INTEREST $6,311 $7,988 $9,057 $9,573 $9,836 $9,747 $52,513

7. End of Period Balance After Interest $6,894,723 $8,450,795 $8,948,498 $9,442,145 $9,452,181 $9,271,120 $9,271,120

Actual Actual Actual Actual Actual Actual 2012

JULY AUG SEPT OCT NOV DEC Y.T.D

8. TOTAL REVENUE (A) $470,793 $478,385 $489,088 $565,621 $1,189,802 $1,767,775 $13,148,754

Residential Expense $652,545 $438,589 $380,069 $715,404 $541,153 $1,596,719 $6,855,703 Low Income Residential Expense $91,182 $192,991 $107,537 $146,264 $89,599 $309,230 $1,179,958 Comm & Ind Expense $196,624 $183,551 $429,335 $693,654 $335,750 $1,517,936 $4,780,797
9. TOTAL EXPENSE (B) $940,351 $815,131 $916,940 $1,555,323 $966,502 $3,423,884 $12,816,458

10. Cash Flow Over/(Under) ($469,558) ($336,746) ($427,852) ($989,702) $223,300 ($1,656,109) $332,296

11. Start of Period Balance $9,271,120 $8,810,974 $8,483,230 $8,063,992 $7,082,175 $7,312,969 $5,229,643

12. End of Period Balance

Before Interest $8,801,561 $8,474,228 $8,055,378 $7,074,290 $7,305,475 $5,656,859 $5,561,939

TOTAL INTEREST $9,413 $9,003 $8,614 $7,885 $7,494 $6,755 $101,676

14. End of Period Balance

After Interest $8,810,974 $8,483,230 $8,063,992 $7,082,175 $7,312,969 $5,663,614 $5,663,614

15. 2012 Residential Incentive (C) $244,851 2012 Low Income Residential Incentive (C) $55,680 2012 Commercial & Industrial Incentive (C) $285,505 2012 Total Incentives (C) $586,036

16. End of Period Balance (minus incentive) $5,077,578

17. Commitments $0

18. FUND BALANCE AT YEAR-END $5,077,578

(A) Revenue Report (B) Source: PeopleSoft query (C) This is the amount credited to the Company's General Ledger during this year.

# Attachment 3

Case Studies

# Energy Wise Program

Single Family Home — North Providence, Rhode Island

Mary Hoffman had an in-home energy assessment completed at her Ranch style home located in North Providence, RI. The home has 1,350 square feet of living space. Upon completion of the work, Mary received over $1,900 in incentives and rebates towards the energy efficiency improvements made in her home. Project Cost $2,280.99

National Grid Incentive $1,903.19

Cost to Customer: $377.80

Annual Cost Savings: $229.51 Everyone was on time, knowledgeable, and polite. The work was well done and improved the efficiency, comfort, and quality of my home.

- Mary Hoffman, Homeowner 

# “

” Project Summary

◆ Air Sealing

◆ Insulation

◆ CFLs



## Savings Summary

The Need – Improve efficiency and reduce utility costs.

The Solution – Installed insulation, CFL light bulbs, and sealed air leaks throughout the home with the help of rebates and incentives from National Grid. As a National Grid customer, you may be eligible for a Home Energy Assessment, at no cost to you. The assessment will measure your home’s energy efficiency and put you on the path to reducing costs and saving big on home energy improvements.
You’ll receive a visit from an Energy Specialist who will:

◆ evaluate your home’s energy use,

from detecting air leakage to checking insulation levels and heating systems

◆ provide you with a personalized

summary of energy-saving
recommendations

◆ discuss available rebates and

incentives such as 25% or 75%, up to a maximum of $2750 depending on your fuel type,
for the cost of insulation and air sealing improvements

EE5241 (5/12) To schedule a home energy assessment: 1-888-633-7947 www.myngrid.com/energywise

# Energy Wise Program

Single Family Home — Cranston, Rhode Island

Cheryl Carbone had an energy assessment completed at her Colonial style home, which was built in the 1980s. The Energy Specialist found that the home could benefit from additional attic insulation, duct sealing, and air sealing. Upon completion of the work Cheryl received a rebate of $2,750 towards the cost of these energy efficiency improvements. In addition, she received replacement CFLs at no cost. Project Cost $3,253.90

National Grid Incentive $2,750.00

Annual kWh Savings 3,173 kWh

Annual Therm Savings 266 therms

Annual Cost Savings $892.76 (Electric & Gas) You were all cheerleaders for energy savings! From the Energy Specialist who taught me things about my home that I didn't know, to the courteous, on-time installers, to the enthusiastic final inspector. My heating and electric bills were astronomical, almost unaffordable. I'm really happy I called National Grid for their EnergyWise program.

- Cheryl Carbone, Homeowner 

# “

” Project Summary

◆ Duct Sealing

◆ Air Sealing

◆ Insulation

◆ CFLs 

## Savings Summary

The Need – Improve efficiency and reduce utility costs.

The Solution – Installed insulation, CFL light bulbs, and sealed air leaks throughout the home with the help of rebates and incentives from National Grid. As a National Grid customer, you may be eligible for a Home Energy Assessment, at no cost to you. The assessment will measure your home’s energy efficiency and put you on the path to reducing costs and saving big on home energy improvements.
You’ll receive a visit from an Energy Specialist who will:

◆ evaluate your home’s energy use,

from detecting air leakage to checking insulation levels and heating systems

◆ provide you with a personalized

summary of energy-saving
recommendations

◆ discuss available rebates and

incentives such as 25% or 75%, up to a maximum of $2750 depending on your fuel type,
for the cost of insulation and air sealing improvements

EE5293 (7/12) To schedule a home energy assessment: 1-888-633-7947 www.myngrid.com/energywise

# Attachment 4

2012 Employment Supported by Energy Efficiency in Rhode Island Report

# Direct Full

- Time Equivalent (FTE) Employment Supported by Energy Efficiency Programs in
Rhode Island in 2012

Prepared by!!!!!!!!



# May 23, 2013

### Table of Contents

Table of Contents Page

I. Acknowledgements 1

II. Executive Summary 2

III. 2012 Energy Efficiency Program Descriptions

A. Residential Programs

1. Residential Building Programs

a. Energy Wise (Gas and Electric) 3

- 6

b. Single Family Low

- Income (Gas and Electric) 7

- 8

c. Residential New Construction (Gas and Electric) 8

d. Other programs, pilots and initiatives 8

- 10

2. Residential Efficient Products Programs

a. ENERGYSTAR ® 

### Lighting (Electric Only) 10

b. ENERGYSTAR ® 

### Appliances (Electric Only) 10

- 11

c. ENERGYSTAR ® 

### HVAC (Gas and Electric) 11

- 12

B. Commercial and Industrial Programs 12

- 20

IV. Findings

A. Overview of FTE Totals: All Programs 20

- 22

B. Electric Programs

1. Total all Electric Programs 21

2. Commercial and Industrial Subtotal 22

3. Residential Non

- Low Income Subtotal 23

4. Low Income Program Subtotal 23

5. Other programs 24

C. Gas Programs

1. Total FTEs of all Gas Programs 24

2. Co mmercial and Industrial Subtotal 25

3. Residential Non

- Low Income Subtotal 25

4. Residential Low In come Program Findings and Methods 25

D. ARRA /LIHEAP Low Income Program Findings 26

E. Direct Report of National Grid Internal Energy Efficiency FTEs 26

- 28

V. Methodologies 28

- 31
VI. Appendix 32

- 43

### 1 I. Acknowledgements

This research would not have been possible without the engaged participation of people throughout the energy efficiency community in Rhode Island. A quick look at Appendix D reveals a committed group of nearly 600 companies, agencies and not

- for

- profit organizations working hard every day to bring the environmental, social and economic benefits of energy efficiency improvements to Rhode Island. We are all in their debt.

We would like to extend our gratitude to everyone who helped us understand the structure and delivery systems of energy efficiency programs in Rhode Island; and who assisted in the process of developing, refining, and testing methodologies for accurately

cou nting direct Full Time Equivalents (FTEs). To anyone whom we fail to mention, our deepest apologies. Please know that we appreciate your assistance, and your work.

Our first thanks goes to the Rhode Island energy efficiency program at National Grid.
Nati onal Grid also provided the funding that made this study possible. As noted in this report, there were fully 60 staff people at National Grid who contributed at least 15% of their time to energy efficiency in Rhode Island in 2012, totaling 35.5 FTE worker s.

We would like to especially acknowledge Rachel Henschel and Jeremy Newberger. Rachel was an indispensable source of information, critical analysis, help with networking, careful editing and technical assistance. Jeremy was an exceptional
contract offi cer who provided patient leadership and guidance to the project.

We extend our thanks also to Vin Graziano and the entire staff at RISE Engineering ; especially Brian Kearney, Domenic Musco, Paul Rad ion, and Ralph Carroccio

.

We are very grateful for th e help and encouragement we received from leadership and staff at the Rhode Island Office of Energy Resources and from many of Rhode Island ʼ s Community Action Program (CAP) agencies. Their help was essential to the project.

We were fortunate to have an ex cellent research team. A huge thanks to independent researchers Bruce Ledgerwood and Art Willcox, who have now assisted us with three energy efficiency FTE studies.

We deeply appreciate assistance received from Mary Hogan at Paradigm Partners and Rob Gou gh at Sproutreach. Abbey Strauss and Kelsey LaFreniere from the NECEC staff were invaluable. Kevin Doyle, Principal of Green Economy, led the research team, and managed the project for the Institute.

Andrew Wilson
Executive Director New England Clean Ener gy Council Institute

### 2 II. Executive Summary and Project Scope

In 2012, National Grid and its customers invested over $83,000,000 in a broad array of energy efficiency actions in Rhode Island aimed at reducing energy use, improving the environment, saving mone y for customers, and improving the health, comfort and safety of homes and businesses. In addition to these benefits, however, energy efficiency programs also directly supported jobs for people at hundreds of businesses, primarily in Rhode Island. These pr ofessionals and trades people plan, design, promote, manage, finance, install and evaluate energy efficiency upgrades through these programs.

In an effort to quantify the number of direct “Full Time Equivalent” workers supported by energy efficiency progr ams in Rhode Island in 2012, National Grid contracted with a workforce research team from the New England Clean Energy Council Institute. The NECEC Institute carried out a similar study in 2012 for the program administrators of energy efficiency programs a t utilities in Massachusetts, including National Grid.

The NECEC Institute team was also charged with identifying lead vendors, contractors and subcontractors involved in the 2012 energy efficiency programs; either as service providers or as participants in training and education efforts. National Grid delivers its programs through this extensive network of dedicated professionals. This study names and acknowledges these companies in Appendix D, with their locations noted.

Working from data about e nergy e fficiency work across all programs, we found that:

 528.71 direct Full

- Time Equivalent (FTE) workers were supported in 2012 by energy efficiency programs in Rhode Island (See Table on page 2 1 );

 598 companies and agencies were involved in the programs, inc luding 424 (71%) with headquarters or offices in Rhode Island;

 Commercial and Industrial energy efficiency programs (gas and electric) supported 48% of th e direct 2012 Rhode Island FTEs, while 35% of FTEs were supported by “non low

- income” Residential pro grams;

 The total energy efficiency payroll for Rhode Island programs was an estimated $27,181,115; with average annual earnings (including taxes) of $51,410 per FTE.

The NECEC Institute count of 528.71 direct “FTEs” supported by 2012 is not the same

as a count of all of the individual workers involved in delivering energy efficiency in Rhode Island. A single “FTE” represents 1,575 hours of work (the total number of work hours in an average year). It ʼ s usual that many people contribute only a portion of th eir work year to energy efficiency program activity. These hours are aggregated together in FTE counts. Therefore, the actual number of individual workers who contribute to energy efficiency success in Rhode Island is far greater than 528.71.

### 3 III. 2012 En ergy Efficiency Program and Program Delivery Descriptions

A. Residential Programs

National Grid and its partners offered a variety of different residential energy efficiency programs in Rhode Island in 2012, including:

Residential Buildings Efficiency P rograms Energy Wise Program (Gas and Electric) Single Family Low

- Income Services (Gas and Electric) Residential New Construction (Gas and Electric) Information and Education Programs (Electric Only) Community Initiative (Electric, cross

- sector with C&I ) Residential Pilots (Gas and Electric) Deep Energy Retrofit (RGGI) Residential Efficient Products Programs ENERGYSTAR ®



### - Lighting (Electric Only) ENERGYSTAR ®



### - - Appliances (Electric Only) ENERGYSTAR ®



### -- - HVAC Program (Gas and Electric) Comprehensive Marke ting

- Residential (Gas and Electric)

Each of these programs is described briefly below. The program descriptions in this section draw heavily from Natio nal Grid planning documents, marketing materials, and the Rhode Island energy efficiency section of Nat ional Grid ʼ s website at: https://www1.nationalgridus.com/EnergyEfficiencyPrograms

.

As will be seen, each of these programs in delivered through different networks of lead vendors, c ontractors and subcontractors to meet the energy efficiency needs of residential gas and electric customers throughout Rhode Island. The full list of all of the contractors in the 2012 system can be found in Appendix A

.

1. Residential Buildings Efficienc y Programs

a. Energy Wise Program (Gas and Electric) Description and Delivery

First offered in 1998, the Energy Wise Program provides energy efficiency improvements to customers in existing multifamil y and single

- family residences In Rhode Island.
Partic ipants receive compre hensive assessment of their energy use from expert auditors, followed by recommendations about va rious ways to improve the energy efficiency of their home or building.

Each assessment includes the “no cost ” installation of measures in cluding CFLs, low

flow showerheads and faucet aerators. Beginning with that assessment, the pro cess is designed to reinfor ce the benefits of implementing recommended measures.

### 4 Participants in the program are offered financial incentives for cost effective gas and electric measures to replace inefficient lighting fixtures, lamps, appliances, thermostats, and insulation levels with versions that are more energy efficient. Where appropriate, customers are also encouraged to participate in ENERGYSTAR ®



### --- HVAC Pr ogram

.

In addition to incentives for weatherization for electric and gas customers (see detail below), Energy Wise also offer ed incentives in 2012 to customers who heat w ith deliverable fuel sources.

RI Heat Loan, which provides 0% interest financing to e ligible customers, is offered through the program to support customer adoption of energy efficiency products and services that are recommended during the assessment. The Heat Loan program is described in greater detail, below.

The Energy Wise program also provides services to multifamily properties including low

income multifamily properties

. Multifamily faci lities of five or more units are eligible if they have not already participated in the program in the past five years. A ll customer co

payments are w aived for any measure installed in Public Housing A uthorities as well as
other low

- income state and federally funded multifamily facilities.

Energy Wise Program (Gas and Electric) Delivery

The single family component of this program is delivered in three steps: energy assessments, installation, and quality assuran ce/quality control. National Grid uses a

“ lead vendor ” ener gy assessment model, which is designed to minimize admi nistrative costs, and guarantee customer equity. The lead vendor for the Rhode I sland program is RISE Engineering (hereinafter RISE).

As the lead vendor, RISE is responsible for conducting all energy assessments of single and multifamily customers (which include the direct installation of selected measures); coordinating all work res ulting in additional energy efficiency measures offered through the progr am; and for performing all of the central administrative functions.

In 2012, more than 6,500 single family homes received energy assessments, and 96 unique multi

- family buildings had retrofits , including 39 low

- income buildings.

In 2012, independent, third party, BPI

- qualified, weatherization contractors worked a s subcontractors to the lead vendor for all single

- family post

- asse ssment work

. More than 1,600 single family buildings re ceived post

- assessment work during the year. This work
was distributed via a merit

- based process to the approved list of qualified contractors.

Weatherization contractors who participate d as subcontract ors to the lead vendor in the single f amily Energy Wi se program promote d and market ed the program through their own efforts and then were allowed to “tag ” identified customer s to provide services.

### 5 “Tagging” is achieved through appropriate signed documentation between the contractor and the customer, which is then provid ed to the lead vendor, who conduct s

an assessment on the home and assign s the work to the contractor

.

Approved, BPI

- certified participating contractors in the Energy Wise program included at least the following companies:

 Aten Energy Conservat ion, Providence, RI

 Beauchemin Design, Inc., North Smithfield, RI

 Bruin Corp. of Attleboro, North Attleboro, MA

 Cross Insulation, Cumberland, RI

 Ecologic Spray Foam Insulation, Inc., Jamestown, RI

 Globex Industries, Inc., Narragansett, RI

 Greenwich Insulat ion, Coventry, RI

 GreenSeal, Inc., North Kingston, RI

 Installed Measures, West Warwick, RI

 Insulate2Save, Fall River, MA

 Lantern Energy, LLC, Norwich, CT

 New England Insulation, Woonsocket, RI

 New England Weatherization, Attleboro, MA

 Retrofit Insulation, Inc., Seekonk, MA

 RI Insulation, Scituate, RI

 Richie ʼ s Insulation, Westport, MA

 Statewide Insulation and Siding Co., North Smithfield, RI

 Superior Insulation, Warwick, RI

 Sustainable Energy Solutions, LLC, Providence, RI

 Thermal Home Energy Solutions, LLC, Cranston, RI

The lead vendor perform s quality checks on weatherization jobs to ensure quality installation, energy savings maximization and customer satisfaction.

For larger multifamily facilities, major weatherization measures are put out to competitiv e bid. “ Major measures” include lighting upgrades, programmable thermostats, replacement of inefficient refrigerators, heat pump testing and tune ups, duct sealing and insulation for electrically and gas heated facilities.

All homes or facilities are elig ible to receive lighting fixture upgrades and refrigerator replacement measures as identified through the energy assessment.

National Grid does not require a co

- payment for lighting fixtur es/lamps installed in single

- family homes nor the living units of m ultifamily homes, to avoid lost opportunities.

As in recent years, National Grid ʼ s program in 2012 committed to delivering a comprehensive and seamless delivery model intended to maximize ease

- of

- use and

### 6 value to all customers. This has called for integr ation of services to both gas and electric customers. For single

- family households, customers are presented with an energy assessment, regardless of their heating fuel. After the assessment is completed, the energy as sessment vendor and National Grid compl ete necessary follow up actions

. Oil and propane customers are also eligible for weatherization incentives and the subcontractors listed above complete these assignments as well as those for gas and
electric customers.

For multifamily buildings, the com prehe nsive building analysis is funded by either gas or electric energy efficiency funds ( bu t not both), enabling National Grid to serve more buildings , through its lead vendor and that vendor ʼ s network of approved subcontractors. Electric or gas funds are used to provide funding for electric or gas measures including insulation, showerheads, aerators, air sealing, lighting, refrigerator replacement, duct insulation and duct sealing.

Master metered multifamily gas weatherization, heating system replacement s, or
comp rehensive gas retrofits are served through the Large Commercial Retrofit program. Individually metered m ultifa mily gas weatherization is served by Energy Wise

.

It ʼ s important to note that n ot all multifamily properties have the sam e attributes. The strategy in 2012 aimed to identify and deliver bundled residential and commercial energy efficiency measures, both gas and elec tric, seamlessly to customer s in a cost

effective, customer

- friendly way.

Finally, the delivery system for the Energy Wise pr ogram requires independent overview of quality control/quality assurance. Through a third party quality assurance system, National Grid closely monitors the audit and installation processes. The third party monitors 10% of the program goals for both singl e and multifamily dwellings.

Heat Loan Program (for Single Family 1

- 4 unit residences)

The Heat Loan program provided 0% interest loans for weatherization and high efficiency heating systems to residential customers in R hode Island. The primary goal of

t he Heat Loan program is to provide affordable financing for residents who do not qualify for low income heating assistance but cannot manage the upfront costs of efficiency measures on their own. National Grid works with local banks to ensure
cust omer sati sfaction and stimulate local economic growth. In 2012, the participating lenders in the program included Navigant Credit Union a nd Bay Coast Bank. These lenders handled more than 550 Heat Loans in 2012, with a total value of $3.6 million
lent to residents

. The program expanded to include additional lenders in 2013.

Customers who live in one to four unit single

- family residences are eligible for a 0% interest loan of a minimum of $2,000 up to $25,000 with terms up to seven years and
can b e applied towards a variety of energy efficienc y upgrades, including: insulation

### 7 and/or air sealing u pgrades , duct sealing and d uct Insulation

, ENERGYSTAR ® 

### thermostats, heating system replacements, and domestic hot water s ystems.

b. Si ngle Family Low Income Program (Gas a nd Electric)

The residential income eligible program provides eligible customers with a variety of energy savings measures insta lled in their homes at no cost. Heating and electricity bills frequently pose a difficult burden to income

- strapped customers who often pay a high percentage of their income to cover their energy costs. Customers who are eligible for the Low Income Heating Assistance Program (LIHEAP), also known as “ fuel assistance”, and who live in 1

- 4 unit buildings, are eligible. The program is a federal government program, administered by the State of Rhode Island.

In addition to this program, low

- income customers in multifamily units are served through the Energy Wise and Large C&I Retrofit programs. Low

- income new
construction is served th rough the Residential New Construction program.

Delivery

In 2012, the services of this program were administered by National Grid ʼ s partners at the State of Rhode Island. Energy efficiency funds from National Grid are bundled with federal government fu nds by Community Action Programs (see below) to serve the largest possible number of eligible customers with the widest array of energy saving opportunities, through a single program.

During the year, lead vendor responsibilities shifted from the Rhode Is land Office of Energy Resources ( OER ), to the Rhode Island Department of Human Services (DHS). The remainder of this section will refer to “the State” or “the State of Rhode Island” to reflect the involvement of both agencies.

The State has a long h istor y of working with local Community Action Programs (CAPs) across the state providing cost

- effective energy saving services to its residents. The State manages the work conducted by participating CAPs for the delivery of energy efficiency ser vices.

The CAP agencies include:

 Comprehensive Community Action Program, Cranston, RI

 Eastbay Community Action, East Providence, RI

 Tri

- Town Community Action, Johnston, RI

 Blackstone Valley Community Action Program Pawtucket, RI

 Providence Community Action Program, Pro vidence, RI

 South County Community Action, South Kingstown, RI

 Westbay Community Action, Warwick, RI

### 8 Local agencies are the primary link between program eligibility and the customers who can take advantage of the program. Once eligibility is determined by the local agency, the customer is informed of ste ps involved in gleaning energy savings in their homes.

Customers are also informed of the process to receive energy saving services, including the scheduling of any visits from local agencies, and any appr oved energy professionals who install energy s avings measures.

c. Residential New Construction Program

The Residential New Construction Program promotes education of builders, the trades and designers along with the construction of energy e fficient homes . The program is

“ fuel neutral ”, and therefore serves all electric, gas and oil energy efficiency needs.

It consists of tiered incentives and provides participating builders with technical and marketing assistance. The tiered incentive offering allows for increased energy efficiency and greater program participation. New Construction projects that fall outside
the residen tial guidelines are referred to the Commercial New Construction Program.

National Grid provides outreach and education of builders, cont ractors, architects, realtors, developers, “trade a llies ” and code o fficials regarding the energy saving benefits and value of p articipating in the New Construction Program.

Delivery

The program is administered through a Home Energy Rating System (HERS) implementation contractor (IC) selected through a competitive bid process. The IC oversees the day to day operations of the program, is responsible for tracking and reportin g program results to National Grid , performs field verificat ions and testing, and

a dvises on program enhancement opportunities. Quality a ssurance (QA) is performed by third party inspectors selected through a competitive bid process.

d. Other programs, pilots and initiatives

Community Initiative (Gas and Electric) Program

The Comm unity Initiative is designed to leverage existing community relationships such as local agencies, schools or church groups focused on saving energy to increase participation in energy efficiency programs . It promote s Energy Wise , Small Business, ENERGY STA R® Lighting and ENERGY STAR® Appliances, Refrigerator Recycling

. By using a grassroots approach, customers that have not been previously targeted will
hear the Rhode Island energy effi ciency message.

In 2012, University of Rhode Island and People ʼ s Power and Light deliver ed initiatives

### 9 aimed at achieving specific goals in selected local communities. The selected organizations attend ed appropriate tr aining at the program level, and collaborate d with National Grid to report progress and troubleshoot issues. The organizations also
coordinate d with National Grid ʼ s Jurisdictional Group and Media Relations.

As part of the pro gram design, each organization created a marketing approach to recruit customers using their unique community c hannels. A pproach es varied , but
include d press releases, involvement of local politicians such as Mayors or Representatives, d oor

- to

- door canvassing, energy efficiency events, piggy

- backing on community events, w eb site development for cities/towns, and other activities focused

on spre ading the word about available residential and small business programs.

I nformation and Education Programs (Electric Only)

In 2012, National Grid continue d to support energy efficiency education programs in schools with an objective of educating stu dents who will, in turn, teach their family and community members. The two programs targeted below use applied learning techniques. These keep students connected to their communities by promoting the application of their new knowledge to real life situatio ns.

National Grid continue d sponsorship of the National Energy Education Development (NEED) project in 2012. NEED is a nonprofit education association that works with
thousands of schoo ls nationwide to promote energy conscious education through its
“kids teaching kids ” model. National Grid support s NEED by providing educational materials to teachers and students. One of the notable topics included in the provided materials is Monitoring and Mentoring, which helps students learn about their personal
role i n energy consumption, based on their behavior and habits and what kind of impact they can affect through a change in those habits. Fu nds provided through this program

were used for training seminars for teachers, and materials for their stude nts. With
assi stance, NEED identified participant schools for implement ing the program.

Residential Pilots (Gas and Electric)

In 2012, National Grid ʼ s energy efficiency program used pilot programs (Home Energy Monitoring, Automatic Temperature Controls, etc.) to test new technologies. Delivered through technology vendors and installation companies (where installation was required), pilot programs provide valuable information about new technologies.

Deep Energy Retrofit Pilot

Th e Deep Energy Retrofit pilot provide d s ignificant financial incentives for deep energy retrofit projects involving super

- insulation upgrades and other measures in conjunction with customer planned projects such as re

- sidin g
, roofing and basement fit

- out

. Customers with 1

- to 4

- family buildings, rega rdless of heating fuel type were eligible.

### 10 A vendor supplied customer support and coordination. Customers chose contractors to work with.

2. Residential Efficient Products Programs

a. ENERGYSTAR® Lighting (Electric Only)

This program is run in c ollaboration with other regional program administrators to give all consumers the opportunity to participate in energy efficiency measures. Customers are able to purchase lower cost ENERGY STAR® lamps, fixtures and lighting through
instant and mail

- in coup ons, buydowns, markdowns and discounts. The program makes it affordable for customers to purchase the most cost effective, energy efficient products, including compact fluorescents and LEDs.

Delivery

This program is effectively implemented in conjunctio n with the ENERGY STAR® Appliances program. The collabora tive members are the same and National Grid leverage s ENERGY STAR® branding. Additionally, there are large numbers of overlapping retailers that carry and promote products, lighting and electronics. Also, both the Lighting and Products programs use a common outreach and marketing vendor, as well as a shared incentive processing vendor, resulting in streamlined administrative and marketing costs.

These vendors are included in the 2012 list of all vend ors and participating agencies
and not

- for

- profit organizations in Appendix A.

b. ENERGY STAR® Appliances (Electric Only)

This program is part of a regional, joint effort by Program Administrators and energy efficiency organizations to encourage the purc hase of ENERGY STAR® qualified major appliances and electronics, which include, but are not limited to, refrigerators, freezers, monitors, room ai r cleaners and televisions. The program includes rebates, buy

- downs, instant rebates and promotions.

Deliver y

Manufacturers build their products to meet or exceed energy efficiency performance specifications established by the ENERGY STAR® label. Together with manufacturers,
local reta ilers, CEE and EPA, National Grid works to help identify and promote the

purc hase of these high efficiency appliances to its customers.

The program is managed and marketed in conjunction with the ENERGY STAR® Lighting program. National Grid can achieve greater efficiencies in marketing and

### 11 outreach by overlapping participating ret ailers and outreach vendors. The program partners with other utilities in the region to create economies of scale.

In coordination wit h others, National Grid provides retailer training, advertising, education, codes and standards review and advocacy, and manufacturer labeling.

The names and locations of all of the vendors and contractors involved with these efforts are included in Appendix A . The names and locations of participating retail stores are not included because analysis indicates that no additi onal Full Time Equivalent (FTE) employment at retail outlets can be attributed to these efforts.

c. ENERGY STAR® HVAC Program (Gas and Electric)

In 2012, National Grid continue d to work on integrating heating and cooling programs in order to provide a se amless customer experience that allows for comprehensive energy efficiency home improvements. The HVAC Program is a combination of the Electric HVAC and the High

- Efficiency Heating, Water, Heating and Controls (HEHE) Programs.
Th e program offers equipment as well as quality installation services and duct sealing.

The purpose of the program s to make customers and contractors aware of the benefits of high

- efficiency heating, water heating, cooling, and system controls and to facilitate the purchase of effic ient equipment by offering rebates to offset the premium equipmen t ʼ s higher cost. The program offers an array of rebates including oil heating systems with electronic commutated motors (ECMs). Rebates are tiered to promote the
most efficient units in the high efficiency category.

Delivery

Installation contractors are the primary program delivery mechanism. Contractor training

a nd outreach was offered in 2012 with the joint purpose of broadening contractor skills and promoting the program. Proper installa tion, system sizing , and code requirements were emphasized at training along with offering compre hensive services to customers.

An external rebat e processing vendor is used by the program , resulting in lower administrative costs. The program also establis hed a reservation system for heating equipment to obtain a rebate. Customers can reserve a heating equipment rebate, contact their local installer for services, and then submit their rebate application

.

Many of the local installer companies listed in Appe ndix A performed these services for customers receiving rebates.

### 12 B. Commercial and Industrial Programs

National Grid ʼ s Rhode Island 2012 Commercial & Industrial (C&I) energy efficiency programs consisted of three prime programs in the C&I sector that addressed the Company ʼ s commercial and industrial customer needs:

 The Large Commercial Retrofit Program focused on addressing equipment and energy systems that provided electric and gas energy efficiencies in existing facilities;

 The Large Commercial an d Industrial New Construction Program was aimed at time dependent mechanical and electrical or thermal systems replacement, or equipment purchased for new construction or major renovation for electric and

gas measures , and;

 Th e Small Business Program targ eted customers with 200 KW or less billing demand or 483,000 k Whs through a turnkey delivery model that integrated both gas and electric energy efficiency measures in installations. National Grid provided 70% of the costs associated with the installation of these measur es.

The Large Commercial Retrofit and Large Commercial and Industrial New Construction programs are described in detail sta rting below. The Small Business Program is described in the last part of this section.

1. Large Commercial Retro fit Program

The Large Commercial Retrofit Program targets existing facilities and energy savings incentives to developers, customers, manufacturers, vendors and design professionals. Eligibility is determined by the presence of a non

- residential natural gas or electric account that contributes to the energy efficiency charge and will realize energy savings as a result of the project.

The Retrofit Program educates and raises awareness of the benefits of energy efficiency through investing in energy effi cient equipment today to save significant energy dollars in the future. The projects use the customer ʼ s existing facility conditions as a baseline and incentives are paid for projects that increase the operating efficiency of the facility.

The Retrofit P rogram provides technical consulting to identify better practices and efficiency improvement opportunities as well as incentives for the installation of high

performance mechanical, electrical and thermal energy equipment and systems.

Energy efficiency measures which are eligible for incentives include (but are not limited to): lighting fixtures and controls, gas burner controls, steam traps, energy management

### 13 systems, programmable thermostats, variable speed drives, refrigeration, industrial

process, co mpressed air, ventilation systems and circulation controls/process cooling.

2. Large Commercial New Construction Program

The Large Commercial New Construction Program targeted new construction, major renovations, remodeling and replacement of equipment t hat had reached the end of its useful life. Program implementation strategies included technical assistance and financial incentives to developers, customers, manufacturers, vendors and design professionals. Customer eligibility was determined by the prese nce of a non

- residential natural gas or electric account that contributes to the energy

- efficiency charge a would realize energy savings as a result of the project.

Large Commercial Retrofit and Large Commercial New Construction Programs Delivery

Cust omers interested in either the Large Commercial Retrofit or Large Commercial New Construction programs began with the customer contacting or a proactive outreach by National Grid staff through either the Inside Sales group, a dedicated account executive

or a third party vendor. The customer opportunity was qualified and passed along to the appropriate party.

If the energy efficiency opportunity was simply to apply for a prescriptive incentive for better performing equipment, the customer submitted applic ation information and the incentive was processed.

For more complex projects where the energy efficiency opportunity was deeper, the next step in the process for participating was through the custom path. This path was
often based on a technical assistan ce study that featured high performance equipment and systems analysis that integrated both gas and electric energy efficiency solutions that lead to better building practices. The technical assistance work may have involved a National Grid Technical Repre sentative, one of its qualified architectural and engineering firms, or a National Grid Account Manager and/or RISE Engineering.

If an engineering study was required to identify the technical and achievable potential in

a customer ʼ s facility for gas and electric energy efficiency measures, the customer was provided with a list of engineering firms that was qualified to provide this service. National Grid would provide co pay funding for the engineering study. If an energy assessment or walk through was al l that was needed to identify energy savings opportunities, National Grid would provide that service at no cost to the customer. Additional engineering services provided at no cost to the customer included a custom assessment, which included identifying so me custom measures including savings and incentive calculations and a custom review of an engineering study.

### 14 Once the engineering work was completed the study often identified deep custom measures and energy systems reduction opportunities. The customer signed an agreement with National Grid to complete the installations.

Once the work was completed, the customer contacted their Account Manager and the process continued with a post installation inspection. Then invoices were submitted, all
information f rom the transaction was collected and entered into the Company ʼ s work management system, and the remaining paperwork was completed. Upon completing these steps, the customer received their incentive.

As can be seen from the system overview above, delivery of Commercial and Industrial Programs involved hundreds of small and large contractors, the vast majority of whom have a physical presence in Rhode Island. These companies include electrical contractors, HVAC/R companies, weatherization firms, engineerin g and design consultants, rebate processers and more. The names and locations of all of these valuable contract partners are in Appendix A

.

Incentives

In 2012, National Grid offered integrated gas and electric energy efficient solutions and
incentives t o the customer. All projects were presented to customers as a single package of measures with a single incentive offer, allowing for a simple process for customers, thereby increasing participation. Through the Retrofit Program or the New Construction Pro gram, customers received financial incentives either prescriptively or through the custom approach depending on the project scope.

Incentivized Services Available for both Retrofit and New Construction Customers:

A. Technical Assistance Services:

C ustome rs planning new construction/major retrofit projects were offered technical assistance to help them understand the benefits of efficient design and the use of

energy

- efficient engineering practices. If the customer was interested, the technical
assistance included identifying and analyzing potential efficiency opportunities. Once these opportunities were identified and deemed cost effective, financial incentives were applied that covered the incremental cost of investing in the higher efficiency version of
the installation.

In 2012, the National Grid ʼ s Account Executives and Technical Representatives assisted customers in identifying energy efficiency opportunities. In addition, vendors were available to provide energy assessments, custom assessments and scoping studies to help identify opportunities at no charge to the customer . Where these assessments determined that a more detailed analysis was needed, this was provided through a formal Technical Assistance (TA) study.

### 15 A variety of expert vendors we re contracted to provide services through this program, and the names and locations of all of them can be found in the comprehensive vendor list contained in Appendix A.

In order to avoid duplication and delays, National Grid offered TA services that were integrated with the customer ʼ s own design team where this was an option. The TA studies covered all gas and electric opportunities that supported best practices in building design, and considered energy efficient measure identification, equipment
meterin g or monitoring, improved technical design solutions, customer presentations, and design and construction assistance.

TA provided customers and their design professionals with detailed engineering studies that identified alternative energy systems that su pport lower operating costs in the buildings and the operational benefits that come from this selection. The costs of these energy efficiency studies were usually shared 50% with customers.

The program used current RI energy code, IECC 2009, as a baseli ne for savings because customers are required to meet this at a minimum. Energy efficiency measures which were eligible for incentives included premium efficiency lighting and controls, variable speed drives, heating, ventilating and air conditioning syst ems (HVAC), efficient boiler and domestic hot water systems, heat recovery systems, digital energy management systems, process efficiency improvement projects, refrigeration, compressed air, combined heat and power, and any other cost effective improvement s.

B. Efficient Lighting:

The Company offered prescriptive incentives to support the promotion of the most energy efficient lighting equipment in new construction, major renovation, remodeling and replacement of equipment. Through the Retrofit and New Const ruction Programs, National Grid promoted high performance lighting practices and incentives that addressed the opportunity for customers to select better performing luminaries, controls for lamps, and ballasts combinations for their buildings that both imp roved the visual environment in their buildings and reduced energy costs.

C. Variable Frequency Drives:

National Grid promoted Variable Frequency Drives (VFDs) incentives in the RI Retrofit and New Construction Programs. The company offered a prescripti ve retrofit incentive for most HVAC

- related fan and pump motors. This program targeted facilities with older
motors that are not inverter

- duty rated, and therefore could not use VFDs. For customers that were unable to retrofit an existing motor, the combin ation incentive offered additional money to offset the cost of replacing the existing motor with a new NEMA premium motor. In addition to the prescriptive incentive available to all Large C&I customers, the Company expanded Project Expeditor services to i nclude VFD and

### 16 motor installations as a turnkey measure offered to large C & I and small business

customers.

Prescriptive Incentives Uniquely Available to Retrofit Customers:

Standardized prescriptive incentives for high efficiency equipment and system s were offered to Retrofit customers on a per unit basis.

Pre

- Rinse Spray Valve: National Grid promoted high efficiency pre

- rinse spray valves in the Retrofit Program. There were two paths for this offering: 1) National Grid provided and installed a hig h efficiency pre

- rinse spray valve at no cost to the customer; or 2) the customer purchased and installed a high efficiency pre

- rinse spray valve and received a $25 incentive.

Gas Heating Controls: National Grid promoted high efficiency gas heating cont rols in the Retrofit Program. The Company supported single and multi

- stage boiler outdoor temperature reset controls in addition to 7

- day programmable thermostats.

Refrigeration: S ome refrigeration equipment was replaced through the Retrofit Program. The se replacements required preapproval before the equipment was replaced.

Steam Traps: The Company promoted failed steam trap replacement through the Retrofit Program. The Program provided a prescriptive incentive that gave the customer
access to incenti ves for pro

- actively managing and repairing traps in their facilities. In 2012, there was a limit of 10 prescriptive steam trap incentives per customer. The goal of this cap was to encourage the customer to follow the more comprehensive method of engaging with the Company in a cost shared Steam Trap survey. This survey identified all traps and steam system improvements at the customer site. The customer was eligible to have 50% of the cost shared with the Company initially. The customer was incentivized up to 100% of the survey costs provided they committed to implementing at least 50% of identified measures from the survey.

Energy Management System (EMS): National Grid promoted the installation and expansion of Energy Management Systems (EMS) through t he Retrofit Program. EMS systems enable energy conserving strategies for HVAC equipment such as 7

- day scheduling, optimal start/stop, night setback, DDC temperature control, chilled water reset, and enthalpy economizing. In order to increase participation, the company provided training to controls contractors and vendors to help them understand which EMS components were eligible for an incentive, as well as show them how to complete and submit incentive applications.

### 17 Custom Incentives Available to Retrof it Customers:

Custom incentives were offered for any qualifying cost

- effective efficiency opportunity, based on the unique energy savings and cost criteria of a project. These incentives included projects that were outside the scope of standard prescripti ve equipment and offered the opportunity to identify deeper energy savings.

In general, incentives for Retrofit projects were designed to cover up to 50% of the total project cost to move to premium efficiency including labor and equipment, or to buy
down the cost of equipment or systems to the customer to a one year payback,
whichever is less.

Other custom incentives were offered on specific initiatives that are listed, but not described in detail, below. They included:

 Multi

- year Strategic Energy Mana gement Planning

 Combined Heat and Power

 Target Marketing

 Road map to Deeper Energy Savings from Existing Buildings

 Manufacturing Initiative

 Whole Building Assessment

 Financing Initiative

 Solid State Street Lighting

 Multifamily High

- Rise Initiative Targetin g Gas Energy Efficiency

 High Performance Commercial Lighting Design/Design Lights. TM Consortium

Prescriptive Incentives Uniquely Available to New Construction Customers:

Prescriptive incentives were standardized in terms of incentive level and minimum efficiency criteria. They addressed specific equipment measures like lighting, DHW, compressed air, and HVAC. Prescriptive incentives for high efficiency equipment and systems were offered to customers on a per unit basis. All prescriptive forms used common branding, format, look a nd feel and incentives were generally designed to be presented in a consistent format.

The Large Commercial New Construction Program prescriptive measures and incentive offerings covered the following measures:

Prescriptive Gas Space and Water Heating: National Grid promoted high gas efficiency space and water heating equipment in the New Construction Program. This included supporting such measures as hi efficiency boilers and hot water equipment.

Prescriptive Commercial Kitchen: National Grid promo ted high efficiency gas kitchen equipment in the New Construction Program. Incentives were available for combination

### 18 ovens, rack ovens, conveyer ovens, fryers, convection oven, steamers, griddles, and

pre

- rinse spray valves. In 2012, National Grid also su pported upgrading of electric kitchen equipment.

Prescriptive Motor Incentive : The New Construction Program c ustomers were eligible for motor incentives as part of the Retrofit VFD/Motor combination incentive.

Prescriptive Small HVAC Incentive: Nat ional Grid continued to support the Cool Choice program, a regional program that focuses on promoting the installation of energy efficient unitary HVAC equipment through the New Construction Program. The program featured consistent efficiency incentives re vised to follow the international Consortium of Energy Efficiency Tier 2 specifications for >5.4 Ton to <63 Ton units. Incentives were offered for dual enthalpy economizer controls, demand control ventilation, and electronically commutated motors (ECM fan motors) in packaged air conditioners and gas furnaces.

Prescriptive Chiller Incentive: National Grid promoted high efficiency chillers through the New Construction Program. The prescriptive incentive was available for single non

process chiller install ations. Process cooling chillers and multiple chiller installations
were handled as a custom incentive.

Custom Incentives

For Large Commercial New Construction customers, custom incentives were offered for any qualifying cost

- effective efficiency oppor tunity, based on the unique energy savings and cost criteria of a project. These included incentives for projects that were outside the scope of standard prescriptive equipment.

In general, incentives for large commercial new construction projects were de signed to cover up to 75% of the incremental cost between standard and premium efficiency or to buy down the cost of equipment to the customer to a 1

- year payback, whichever is less.

In addition to the Prescriptive and Custom incentive programs, the Larg e Commercial New Construction Program supported a variety of initiatives, which are listed (but not described in detail) below.

 Building Codes, Federal and State Standards

 Advanced Buildings, LEED and Sustainable Design

 High Performance Schools

 Building O perator Certification Training

 Improve efficiency in tenant spaces with Office of the Future (OTF)

 Commissioning

### 19 3. Small Business Program

The Small Business Program provided turnkey services to commercial and industrial customers with an average monthl y demand of less than or equal to 200 kW or annual energy use up to 483,000 kHz.

National Grid has delivered this Small Business Program for more than two decades through a local vendor (“Regional Program Administrator” or “RPA”), responsible for

progra m management, data entry, and quality control.

The RPA is located in Rhode Island, employing local staff, local electricians, and energy efficiency lighting materials procured through a competitive bid process. Customers served by natural gas were also e ligible for direct installation of natural gas energy
conservation measures.

Delivery of these services involved an extensive network of contractors, the vast majority of whom are either Rhode Island companies, or have a physical presence in
Rhode Island . The names and locations of all of these companies can be found in Appendix A.

Customers were provided turnkey services consisting of:

• Energy audit; • Direct installation of measures; • National Grid incentive contribution of 70% of the total project cost; • On

- bill repayment option for customers ʼ share of the project costs, either over 24 months at interest free or lump sum payment with a 15% discount, resulting
in most customers ʼ projects having a positive cash flow when they chose the 24
month re payment option; • Cost

- effective “custom.” electric and gas measures; • Time dependent opportunities such as replacing roof top HVAC units and heating systems; • Participation in residential programs where the building owner may have both
commercial and residential properties in the building; • Installation of energy efficient fluorescent ballasts, lamps, and fixtures;
• Hard

- wired and screw

- in compact fluorescent systems; • LED lighting; • Occupancy sensors and controls; • Energy management systems;

• Thermostats; • Insulation; • Hot water resets; • Low flow pre

- rinse spray valves;

### 20 • Refrigeration measures such as evaporator fan controls, efficient evaporator fan motors, automatic door closers and door heater control devices for walk

- in coolers;
• Boil er reset controls (single stage); and, • Pipe insulation.

### 21 IV

. Findings : Review of 2012 Energy Efficiency FTEs

A. Overview of FTE Totals: All Programs

As seen in the table on the next page , the NECEC Institute research team (NEC EC)
found that at least 528.71 direct Full

- Time Equivalent (FTE) workers were supported by energy efficiency programs in Rhode Island in 2012.

The remainder of this section describes the distribution of these direct FTE workers to specific programs. The programs themselves are described in detail in Section III.

In keeping with the organization of the table , this section describes findings and methodologies for :

 Electric Programs

 Gas Programs

 National Grid EE Staffing

 WAP/LIHEAP

- funded Low Income Progra m

Within the Electric and Gas Program sections, the findings are discussed under narrower program headings related to Commercial and Industrial Programs, Residential
Low

- Income Programs, and Residential Non

- Low Income Programs.

B. Electric Programs

1. Tota l all Electric Programs

NECEC found that 304.34 direct FTEs in Rhode Island in 2012 were supported by Electric Programs, including:

185.48 in Commercial and Industrial Programs
20.51 in Residential Low

- Income Programs
98.35 in Residential Non

- Low Income Programs

A wide range of contractors and workers were needed to implement the 2012 energy efficiency programs. Although installation of measures was at the heat of the program (requiring the skills of auditors, electricians, plumbers, HVAC techs, weathe rization workers, and related trades and professions), the programs also engaged the expertise of trainers and educators, marketing professionals, engineers and project design specialists, rebate processors, and more. Finally, these energy efficiency work ers were supported by customer support, administrative, finance, IT, and management staff.

### 22 Direct Full

- Time Equivalent (FTE) Employment Supported by Energy Efficiency Programs in Rhode Island in 2012 (Source: NECEC Institu te)

PROGRAMS Total FTEs

Electric Programs

Commercial and Industrial
Large Commercial New Construction
Large Commercial Retrofit

Small Business Program

Other 185.48

Residential Low

- Income
Single Family

- Low Income Services 20.51

Residential Non

- Low Income

Residential New Construction

Energy Wise Program

ENERGYSTAR ® 

### Programs

Other 98.35

Gas Programs

Commercial and Industrial
Large Commercial Retrofit
Large Commercial New Construction

Small Business Program

Other 65.38

Residential Low

- Income
Single Family Low

- Income Services 14.97

Residential Non

- Low Income

Energy Wise Program

ENERGYSTAR ® 

### Programs

Other 85.42

National Grid EE Staffing 35.50

WAP/LIHEAP Low Income Funded 23.10

Total all 2012 Rhode Island FTEs 528.71

### 23 2. Commercial and Industrial FTE Subtotals

The NECEC team found that 185.48 FTEs were supported in 2012 by the Commercial
and Industr ial Electric Programs, including:

75.9 FTEs were involved in planning and installing Lighting measures
102.6 FTEs were involved in installing Non

- Lighting measures
6.98 FTEs were supported by remaining programs and initiatives

NECEC examined data from th e following Commercial and Industrial Electric Programs
to arrive at a 2012 direct FTE count:

 Large Commercial New Construction

 Large Commercial Retrofit

 Small Business Direct Install

 Community Based Initiatives

 Comprehensive Marketing

All of these progr ams were delivered through an extensive network of con tracted experts and installers, and all of them are described in detail in Section III

. The names of these contractors are incorporated into the list of all 2012 vendors and program participants in Appe ndix A

.

3. Residential Non

- Low Income Programs Subtotal Findings

NECEC e xamined data from the Residential Non

- Low Income Programs listed below to

ar rive at a 2012 direct FTE count. These programs, and their delivery systems, are described in Section III

.

Using methodologies described in the Methodology section , NECEC found that 98.35 FTEs were supported in 2012 by Residential Non

- Low Income Programs, including:

Energy Wise Program (Single & Multi

- Family) 70.67 FTEs
Residential New Construction 6.00 FTEs Other Programs 17.68 FTEs ENERGYSTAR ® 

### Programs 4.00 FTEs

4. Low

- Income Program Subtotal: Findings

Rhode Island ʼ s low

- income program and its service delivery system through the State of Rhode Island (contractor to National Grid) an d a network of Community Action Program (CAP) agencies and subcontractors is described in Section III. The name and locations
of all low

- income program subcontractors can be found in Appendix A.

### 24 Using the method described in the Methodology section, we confirmed that 20.51 FTEs were supported by that portion of the low

- income residential (electric) program in Rhode Island in 2012 that was supported by National Grid funding. The portion of the low

income program supported by federal government funds is a ccounted for in a separate section, below.

5. Findings: Residential “Other” Program Areas

The Non

- Low Income Residential programs within the Electric Program also included some program investments in Energy Efficiency Educational Programs, EERMC
Residen tial, Residential Behavior Pilots, Residential Products Pilots, Residential Community Based Initiatives, and Residential Comprehensive Marketing. Using year

- to

- date expenditures from National Grid ʼ s Preliminary 4 th 

### Quarter Results Report from February 14, 2013, we estimated that at least $1,768,100 was related to
these efforts. The NECEC Team found that 17.68 additional FTEs were supported by
the 2012 R esidential E lectric Energy Efficiency Prog rams.

C. Gas Programs

1. Total of all Gas Programs

NECEC fou nd that 165.77 direct FTEs in Rhode Island in 2012 were supported by Gas Programs. The table below indicates the distribution of FTEs to different residential and commercial and industrial programs. A description of all programs can be found in Section II I.

The names and locations of all contractors involved in, and/or trained by, the Gas Programs, can be found in the comprehensive list in Appendix A

.

Because several of the programs below served both gas and electric customers, there is some duplication with the program description s from the Electric Program s

The distribution of 2012 FTEs supported by Gas Programs was found to be:

65.38 in Commercial and Industrial Programs

 Large Commercial Retrofit

 Large Commercial New Construction

 Small Business Progr am 14.97 in Residential Low

- Income Programs
85.42 in Residential Non

- Low Income Programs

 Energy Wise ( Single Family and Multi

- Family)

 ENERGY STAR® HVAC Program

### 25 2. Commercial and Industrial FTE Findings

The NECEC team found that 65.38 FTEs were supported in 2012 by the Co mmercial and Industrial Gas Programs, including:

22.00 FTEs supported by the Large Commercial Retrofit Program 18.00 FTEs supported by the Large Commercial New Construction Program
25.38 FTEs supported by the Small Business Program

All o f these programs were delivered through an extensive network of con tracted experts and installers, the names of whom have been incorporated into the list of all 2012 vendors and program participants in Appendix A

.

3. Residential Non

- Low Income Programs Su btotal Findings

Using the methodologies described in the Methodology section , NECEC found that 85.42 FTEs were supported in 2012 by Residential Non

- Low Income Programs, including:

Energy Wise Program ( Single & Multi

- Family ): 47.68 FTEs ENERGY STAR .® HVAC : 34.93 FTEs

4. Residential Low Income Program Subtotal (Ratepayer funded)

Rhode Island ʼ s low

- income program and its service delivery system through the State of Rhode Island (contractor to National Grid) and a network of Community Action Program (CAP ) agencies and subcontractors is described in Section III . The names and locations of all low

- income program subcontractors are in Appendix A. As noted in the description, the low

- income program is funded by both government funds and National Grid funds.

Using th e method described in the methodology section , we confirmed that 14.97 FTEs were supported specifically by the low income program (gas) in Rhode Island in 2012

, exclusive of selected federal government funds.

5. Residential Non

- Low Income Gas FTEs from programs other than Energy Wise
and ENERGY STAR

. ® 

### HVAC.

The Non

- Low Income Residential programs within the Gas Programs included some program investments in Pilot Programs, Comprehensive Marketing and other activities. Using year

- to

- date expendi tures from National Grid ʼ s Preliminary 4 th 

### Quarter Results Report from February 14, 2013, we estimated that at least $281,000 was related to these efforts, supporting 2.81 FTEs.

### 26 C. Low Income Program Findings and Methods : Federal Funding Only

Rhode Island ʼ s low

- income program and its service delivery system through the State of Rhode Island (contractor to National Grid) and a network of Community Action Program (CAP) agencies is described in Section III

.

This program receives funding from sources beyond National Grid and the federal Weatherization Assistance Program (WAP). In 2012, funds also came from the Low Income Heating Assistance Program (LIHEAP), and the American Recovery and Reinvestment Act (ARRA).

To determine FTEs supported specifically by these funding sources, we received direct assistance from the State of Rhode Island

, and the CAP agencies. Payroll and other records kept by these agencies allowed them to provide us with an accurate account of hours worked, allowing us to generate an FTE count using the same calculations of an average work hour used in the other FTE assessments throughout the study.

From these records, we confirmed that 23.10 FTEs in the low

- income program were supported specifically from selected federal government fund s.

E. National Grid Staff Serving Rhode Island Energy Efficiency Programs

1. Methodology

The assessment of direct National Grid FTEs committed to Rhode Island energy efficiency programs in 2012 was carried out through direct reporting based on time

account ed to Rhode Island energy efficiency programs in National Grid ʼ s internal processes. Information from National Grid records was made available to the NECEC Institute research team upon request.

We did not make an effort to assign the identified National Grid staff people to individual electric, gas, residential and/or commercial and industrial programs. We did analyze the FTE counts in each of the Rhode Island programs in our study to assure that the work of National Grid staff was not already accounted for in any of the FTE counts of the individual programs.

2. Findings

In 2012, National Grid had sixty (60) individual staff people devoting at least 15% of their time to energy efficiency program in Rhode Island. 34 of these individuals (57%) were physica lly located in Rhode Island. These 60 staff people devoted total work hours resulting in 35.5 Full Time Equivalent (FTE) workers.

### 27 3. National Grid EE Staff Distribution and Activities

a. Customer and Business Strategy

Of N ational Grid ʼ s 2012 Rhode Island F TEs , 11.9 were devoted to the activity of Customer and Business Strategy for serving the energy efficiency (EE) needs of Rhode Island customers. The FTEs serving this need were responsible for:

 Preparing strategy for residential and commercial EE program s;

 Carrying ou t planning, evaluation, measurement and verification;

 Identifying, researching and deploying new EE technologies/strategies;

 Developing community and business partnerships to promote EE;

 Carrying out outreach activities to the EE community, i ncluding customers

, stakeholders

, businesses and regulators.

Of the 11.9 FTEs in this area, 7.63 were attributed to a group of nine National Grid staff people in the “Rhode Island Program Strategy” team, each of whom devoted more than
70% of their time in 2012 to energy efficiency program delivery and support for Rhode
Island customers.

b. Marketing and Customer Experience

Marketing and Customer Experience programs and activitie s supported 1.7 of National Grid ʼ s 2012 Rhode Island FTEs These individuals wer e engaged in managing and delivering residential, commercial and statewide energy efficiency marketing campaigns, including EE events throughout the state , websites, and social media promotion . The people contributing work hours to the total of 1.7 FTEs a lso supported research efforts aimed at developing customer targeting strategies.

c. Sales and Program Operations

The largest group of National Grid staff serving Rhode Island energy efficiency programs in 2012 (19.0 FTEs) was in Sales and Program Operation s. Staff people involved with this activity were largely responsible for deliver energy efficiency savings goals and managing programs. The team includes sales representatives, technical experts and engineers, residential and commercial program managers, vendor managers, account developers, and C&I sales processors. They developed commercial relationships with large and medium sized businesses, responded to inquiries for
assistance , and expedited customer projects

. The team also provide d technical expert ise and engineering for custom C&I projects. They also manage the residential
and commercial program s including managing vendors.

### 28 d. Customer and Market Analytics

Customer and Market Analytics work contributed 2.9 FTEs to the 2012 energy efficiency
effor t

. This team managed and analyzed customer data related to energy efficiency and managed information technology that supported energy efficiency efforts. People contributing to these FTEs also provided accounting support and developed customer
and sales forecasts.

e. Jurisdiction

The Jurisdictional team provide s a direct connection between regulatory and community priorities and National Grid, and coordinated activities with cities, towns and key

accounts. The team directed the equivalent of 1 FTE to ene rgy efficiency initiatives.

Section V. Methodologies

The NECEC Institute research team used four different methods to accurately assess
the number of Full

- Time Equivalent (FTE) workers supported by different energy efficiency programs in Rhode Island in 2012.

Method One: Direct reporting from employers This method was used to calculate FTEs at National Grid and FTEs related to
low

- income program work funded directly by federal programs, including the American Recovery and Reinvestment Act (ARRA) and t he Low

- Income Heating Assistance Program (LIHEAP).

In addition, the research team received information about direct FTE estimates in 2012 from the firm of Rise Engineering which were used as a cross check and
addition to the methods below.

Method Two: RS Means labor time estimates + adjusted multiplier This method was used to calculate FTEs from the following programs:

• Residential Non

- Low Income Energy Wise Program

• Residential Low

- Income Program (excluding federal funded only)

• Residential ENERGYSTAR Pr ograms

• Residential New Construction Program

• Commercial and Industrial Programs designated “Lighting”

Method Three: Variation for C/I “Electric Non

- Lighting” Work

Method Four: Estimate based on 1 FTE per $100,000 spent
This method was used to calculat e FTEs for community

- based programs, pilot programs, comprehensive marketing programs, and the paid consultant portion of the EERMC program.

### 29 Each of these methods is described below.

A. Direct reporting from employers

1. National Grid Energy Efficiency Staffing

National Grid tracks staff labor hours by individual name and by program. The reported total of partial FTEs worked by many different staff people allows for a calculation of total FTEs by all staff toward energy efficiency programs.

2. Low

- Income Program Work (federal funding portion only)

The State of Rhode Island provided direct information from pay records kept as part of required record keeping to receive federal funding under the American Recovery and Reinvestment Act (ARRA). These re cords allow for calculation of total hours worked, and thus total FTEs supported.

B. RS Means labor time estimates + adjusted multiplier s

Step One: National Grid and/or a lead vendor provided the NECEC Team with a comprehensive list of the number/type of energy efficiency measure s installed in the noted program.

Step Two: RS MEANS Online 2013 (Providence local) was researched to identify the hours necessary to install the specific measure(s)installed through the noted p rogram.

Step Three: Where ther e was not an exact mat ch of RS MEANS information to National Grid energy efficiency measure, averages of labor time for the closest matches were developed f or that specific measure with the assistance of experienced professionals.

Step Four: On the recomm endation of expert s consulted , the NECEC Team increased
the hours id entified through RS MEANS by an agreed upon multiplier to a ccount for two
additional time r equirements not sufficiently captured by RS MEANS installation times:

a. A dditional time to cover c ompany office labor, including design, administrative and managemen t time ; b. A dditional time to cover activities associated with the primary task of installing the specific measure. This included tasks such as moving equipment and furniture, talking with te nants to explain the procedures, disposal of the old items being replaced, and other associated activities.

### 30 Step Five: Once the primary and associated times had been calculated for each measure, then the sum for all of the hours for installing energ y eff iciency measures was
calculated

.

Step Six: The sum of the total hours for gas energy efficiency measures was then divided by the number of hours available for working

– 1575 hours per year. The 1575 number was calculated by deducting weekends, holidays, vacation days, sick days, and weather, etc. interruptions, from 365 days per year.

The su m of total hours to install energy efficiency measures was divided by 1575 available hours per year to produce th e total estimated number of energy efficiency

measur e FTEs.

Step Seven: Resulting FTE estimate tables are cross

- checked by research team for reliability and to identify any FTE estimates that seem questionable.

C. Variation for C/I “Electric Non

- Lighting” Work

1. Findings and Methods: FTE Counts Done by “ Lighting” and “Non

- Lighting”

To arrive at an FTE estimate for the Commercial and Industrial Electric Programs we requested data from National Grid on the number and types of all installed measures across all Commercial and Industrial El ectric Programs per formed in 2012.

It is important to note that we did not disaggregate data about installed measures into its component programs. Therefore, we did not generate separate counts for Large Commercial New Construction, Large Commercial Retrofit, an d Small Bus iness
P rograms.

Instead, after an analysis of data received, we carried out two different kinds of analysis

– one regarding lighting measures in the Electric C/I, and one regarding non

- lighting

mea sures.

For lighting measures, we found that our “RS MEAN S plus multiplier” was appropriate
and accurate. For “Non

- Lighting” measure design and installation work, however, a method variation was required to accurately capture FTEs.

2. C/I Non

- Lighting Measures Methodology Variation

Step One : National Grid pr ovided the NECEC a list of the number and type of non

lighting electric measures (NLEM) installed in the 2012 Program, as mentioned above.

Step Two : Using additional National Grid data the team developed estimated total project costs for each measure on the National Grid measures installed list.

### 31 Step Three : NECEC solicited the participation of two contractors with experience in Commercial and Industrial energy efficiency electrical projects. With their assistance,
we arrived at a reliable determinatio n that the average labor cost (installer, management, and administrative) can be assessed for the purposes of FTE estimation at 25% of a NLEM project. In addition, many projects require engineering support ranging from 5

- 10% of total costs, thus an additi onal 7.5% was added to the labor cost of the projects resulting in a labor rate of 32.5% of total project costs.

Step Four : The estimated total project costs for each measure on the National Grid measures installed list was multiplied by 32.5% to produce the total labor cost for each
set of measures.

Step Five : Estimated labor hours for each measure on the National Grid measures installed list was calculated by dividing the total cost of the measure projects by an hourly rate of $45, the blended hourl y rate fo r NLEM projects determined through consultation with two experienced contractors.

Step Six: The number of hours for each measure on the National Grid measures installed list was then divided by 1575 hours (the total number of work hours in a y ear) to produce the FTE per unit factor for each measure.

Step Seven : The FTE per unit factor was multiplied times the quantity of NLEMs for each measure sector to produce the number of FTEs for that sector.

Step Eight : The FTEs for each NLEM measure were summed to produce the total estimated FTEs for all NLEMs.

D. FTE Estimates based on 1 FTE per $100,000 of program expenditure

This method was used to assess 2012 FTEs in the following programs:

• Community

- Based Initiatives

• EERMC (consultant services)

• Comprehensive Marketing

• Behavior Pilot Programs

• EE Educational Programs

Dollar amounts for 2012 were derived from “Table 1: Summary of 2012 Target and Preliminary 4 th 

### Quarter Results” (National Grid, December 14, 2012)

### 32 APPENDIX A

LIST OF CONTRAC TORS AND SUBCONTRACTORS INVOLVED IN 2012 RHODE ISLAND ENERGY EFFICIENCY PROGRAMS (INCLUDES BOTH COMPANIES AND AGENCIES PERFORMING WORK AND THOSE RECEIVING TRAINING AND/OR OTHER FORMS OF ASSISTANCE)

This list is organized first by state (alphabetically), a nd then alphabetically by company name. To find the Rhode Island companies, move the first appearance of “RI” in the far right column.

Of the 598 companies, agencies and not

- for

- profit organizations listed here, 424 (71%) are either headquartered in Rhod e Island, or have a physical presence in Rhode Island. The list includes contractors and subcontractors performing work directly for National Grid Energy Efficiency programs in 201 2. It also includes contractors performing work
for RI customers who receiv ed energy efficiency incentives rebates , for example HVAC contractors who installed efficient equipment

. It also includes the Community Action Program agencies and their subcontractors involved with the delivery of the low

- income

program
, whether under Nat ional Grid funding or WAP/LIHEAP/ARRA funding.

If we have left any companies off of this list, incorrectly named a company, or listed it under an incorrect location, please contact the NECEC Institute Workforce Development team by email (kevinldoyle@gmail .com).

BT Ins Santa Clara CA FTS Lighting Orange CA Interviewing Service of America Van Nuys CA Noribachi Corporation Hawthorne CA West Coast Lighting & Energy Lake Elsinore CA E Source Companies Boulder CO Competitive Resources Yalesville CT Cutter Enterprises LLC Tolland CT DDLC Energy New London CT
ICON International Stamford CT KBE Building Corporation Farmington CT Lantern Energy LLC Norwich CT Lightstat Pleasant Valley CT
Steven Winter Associates Norwalk CT Thames Valley Vinnelso n Co Groton CT Alliance to Save Energy Washington DC American Council for an Energy

- Efficient Economy Washington DC
Einhorn Yaffee Prescott Architecture Washington DC Energy Source Miami FL
J L Roth and Associates Palm Harbor FL
Pro Unlimited Boca Raton FL
Enercon Kennesaw GA American Energy Solutions Leawood KS A&M Compressed Air Products Uxbridge MA ACTION, Inc. Fall River MA

### 33 Advantage Weatherization Quincy MA Air Energy South Easton MA Alternative Creative Energy & HVAC Blackstone MA
Ameresco Framingham MA American Green Building Services Dedham MA American Refrigeration Company Andover MA Andelman and Lelek Engineering Norwood MA
Anderson Mechanical LLC North Grafton MA Anthony F. Vieira III Heating and Air Conditioning Attleb oro MA Applied Energy Engineering & Commissioning Manchester MA Applied Proactive Technologies Springfield MA Aten Energy Conservation LLC Swansea MA Atlantic Refrigeration of Hudson Hudson MA Aztec Energy Partners Braintree MA B2Q Associates North Andover MA Bay Coast Bank Swansea MA Berubes Plumbing Heating and Remodeling Somerset MA
Biello Electric Fall River MA Bluestone Energy Services Ltd Norwell MA Boston Light Source Boston MA Briggs Mechanical North Attleboro MA Bruin Corporation of Attleboro North Attleboro MA Building Science Corporation Westford MA
Callahan Bridgewater MA
Carrier Canton MA Chet's Welding Uxbridge MA
Classic Sheet Metal Swansea MA Conservation Services Group Westborough MA Consolidated Marketing Services B urlington MA Consortium for Energy Efficiency Boston MA
CPS Electric Marlborough MA Dagher Consulting Lexington MA David Parnes Photography Concord MA
Delta Electric Medford MA
DMI Needham MA Don Dalpe Plumbing Blackstone MA
Electric Wholesalers Bo ston MA
EMC Hopkinton MA Emond Plumbing and Heating Taunton MA Energy & Resource Solutions North Andover MA Energy Consumers Alliance of New England Boston MA Energy Engineering & Design Framingham MA Energy Federation Westborough MA Energy Machine ry Rockland MA
Enviro Service Norwell MA
Fraunhofer USA Cambridge MA
Gettens/Nesco Canton MA Granite City Electric Pawtucket MA
GreenerU Cambridge MA Groom Energy Solutions Salem MA Guardian Energy Management Solutions Marlborough MA
Hamel & McAl ister Burlington MA Hope Air Systems Northborough MA Horizon Lighting & Energy Services Taunton MA

### 34 IBM Corporation Cambridge MA ICF Consulting Lexington MA Industrial Control Service Corporation Chelmsford MA Inner Workings Amesbury MA
Insulate 2 Save Fall River MA
Interstate Electrical Services North Billerica MA
JACO Environmental Franklin MA Jay Leblanc Plumbing Blackstone MA JMF Services DBA Improved Illumination Medfield MA JMP Plumbing and Heating Rehoboth MA Kaeser Compressors South Easton MA KCG Energy LLC Lexington MA
Kelliher Samets Volk Boston MA
KEMA Burlington MA Larry's Heating & BCI Rehoboth MA
Lennox Industries Wilmington MA Lighting Retrofit Services Wilmington MA Lime Energy Boston MA
Litemor Norwood MA
Lock heed Martin Services Burlington MA Medford Wellington Medford MA Mike Dupree Mansfield MA MJ Heating and Air Conditioning Fall River MA National Resource Management Canton MA NMR Group Somerville MA
Noresco Westborough MA
NorthEast Electrical Dist ributors Brockton MA Northeast Energy Efficiency Partnerships Lexington MA Northern Energy Services Northborough MA
O'Brien & Neville Holliston MA
Omnilite Burlington MA Opinion Dynamics Corporation Waltham MA Prism Energy Services Quincy MA
PRS E lectric Dighton MA Reilly Electric South Easton MA Renova Lighting Systems Mansfield MA Rethinking Power Management LLC Boston MA
Retrofit Insulation Fall River MA River Energy Consultants Fall River MA Robinson Supply Co. Fall River MA
Rouleau Cons ulting Group LLC Gloucester MA
Sacks Exhibits Wilmington MA
SMOC Framingham MA Standard Electric Supply Boston MA
Stateline Fuel and Burner Seekonk MA Steve Brown Plumbing and Heating LLC Webster MA Steve Dessert The Heating Man Swansea MA Supply Ne w England

- Uxbridge Uxbridge MA Synergy Investment Westborough MA T and J Heating and Conditioning and Plumbing Bellingham MA
Tech Resources Milford MA
Tendril Networks Newton Lower Falls MA
Tetra Tech MA Boston MA The Cadmus Group Waltham MA

### 35 The Elcon Group /CCMS Lighting Hopkinton MA TNZ Energy Consulting Stoughton MA Towne Heating Co Swansea MA
Veolia ES Technical Solutions LLC Boston MA Victory Heating & Air Conditioning Co Bellignham MA Whites Plumbing and Heating Swansea MA Wipr o Ltd Boston MA World Energy Solutions Worcester MA
Earth Networks Germantown MD Helgeson Enterprises White Bear Lake MN
Electrical Distributors Charlotte NC Ingersoll Rand Company Davidson NC
Carter Events Plus Hampton NH Sylvania Lighting Servi ces Exeter NH
Weller & Michal Architects Harrisville NH
Amerlux LLC Fairfield NJ
BriteSwitch LLC Princeton NJ Ideas Agency Blairstown NJ Buro Happold Consulting Engineers PC New York NY
Gardner Nelson and Partners New York NY Integral Group New Y ork NY
KS Electric LLC East Greenbush NY Natek Corporation Saratoga Springs NY News America Marketing New York NY RAM Marketing Saint James NY Scales Industrial Technologies Carle Place NY
Commercial Electric Cleveland OH Compressed Air Technologies Monroe OH Illumetek Corp Cuyahoga Falls OH Questline Columbus OH Energy

- One Tulsa OK
Ecobee Toronto ON CGI Technologies & Solutions Montreal QC
A and C Burner Service HVAC East Providence RI
A Plus Electric Warwick RI A. Perry Plumbing and Heat ing Coventry RI A&P Fire Systems East Providence RI
Abline Oil Service Cranston RI
Acme Electric North Providence RI Advanced Comfort Systems North Smithfield RI
AECOM Providence RI
Aero Mechanical Johnston RI Affordable Heating North Providence R I
Affordable Insulation Pawtucket RI AH Robert Plumbing and Heating Warwick RI Air Conditioning Systems of New England Cranston RI
Air Flow Coventry RI Air Synergy Providence RI Al and Sons Construction Company Warwick RI
Aladdin Electric Johnston RI Aldanti and Son Plumbing Glocester RI All in One Plumbing & Heating Scituate RI All Seasons Heating and Air Johnston RI All Temps Mechanical LLC Warwick RI

### 36 Alliance Plumbing and Heating Cumberland RI Allied Electrical Group Providence RI
Allie d Plumbing and Heating North Providence RI Almedia Plumbing and Heating Smithfield RI Alpha Mechanical East Providence RI American Development Institiute Warwick RI American Plumbing & Heating North Providence RI
Amos House Providence RI
Anchor Plu mbing and Heating Company Providence RI
Andreozzi Associates East Providence RI
Andrew White Coventry RI Any Time Plumbing Harrisville RI AR Heating and Cooling Providence RI Arden Engineering Pawtucket RI Ardente Supply Company Woonsocket RI
Armo r Plumbing Exeter RI
Arthur Desautels West Greenwich RI Arthur DiPetrillo Plumbing and Heating Johnston RI
Arthur Lettieri Providence RI Atlantic Supply LLC Coventry RI Atlantis Comfort Systems Corp Smithfield RI Atlas Copco Johnston RI
Autiello Pl umbing and Heating Cranston RI Automatic Heating Equipment Providence RI Automatic Temperature Control Cranston RI B and B Plumbing Warwick RI Barlow Heating LLC Warwick RI Bay Plumbing North Kingstown RI
Beacon Mechanical Glocester RI
Beam Electr ic Coventry RI Beauchemin Designs North Providence RI Bell and Piasczyk Plumbing and Heating Narragansett RI Beneficial Energy Products CO Pawtucket RI Berard Heating and Plumbing Warwick RI Bermudez Plumbing Pawtucket RI
Besco Electric Woonsocket R I Big Dog Plumbing and Heating Hopkinton RI Bill Ellis Plumbing and Heating West Kingstown RI Bill Gardnier Plumbing and Heating LLC East Providence RI
Bill Linehann Warwick RI Blackstone Valley Community Action Program Pawtucket RI
Bob Larisas Plumb ing and Heating Barrington RI Bodell Plumbing and Heating South Kingstown RI Boss Heating Westerly RI Bousquet Oil Woonsocket RI Braswell's Plumbing & Heating North Kingstown RI Brennan Oil DBA Energy & Mech North Providence RI
Briarwood Meadows Ea st Greenwich RI Bristol Aluminum & Vinyl Bristol RI Bristol County Plumbing & Heating Bristol RI
Bruno & Son Electric Providence Ri Bryant University Smithfield RI Buckley and Son Fuel Johnston RI Buckley Heating & Cooling South Kingstown RI

### 37 Burban k's Plumbing & Heating North Kingstown RI Butler Property Services Providence RI C & K Electric Company Providence RI C W Cummings Plumbing CO Coventry RI Cal Supply Company Cranston RI
CAM HVAC & Construction Smithfield RI
Canal Electric Johnst on RI Capitol Plumbing and Heating Cumberland RI Carbone Plumbing and Heating Cranston RI Carjon AC and Heating Smithfield RI Carl Pecchia Heating Cont. LLC Warwick RI
Carter Bros. Burrillville RI
Cassana HVAV LLC Cranston RI
Castle Construction J ohnston RI Cavaco Brothers Plumbing and Heating East Providence RI CCAP Heating Service Cranston RI CD Heating Cranston RI
Central Street Contractor Central Falls RI Century Heating Smithfield RI Charland Enterprises Pawtucket RI Charlies Heating LLC North Kingstown RI Chaves Plumbing & Heating Middletown RI Cheaper Sweepers Warwick RI Cipriano Plumbing and Heating South Kingstown RI
Climate Air Providence RI
Coastal Electric Newport RI Cola Plumbing and Heating North Kingstown RI
Coldmas ters Providence RI Comfort Systems West Kingston RI Commercial Heating Service and Sale Cumberland RI Comprehensive Community Action Program Cranston RI Continental Engineering Johnston RI
Contractor Arthur Desautels West Greenwich RI Corey Lane DBA A

- All Services Providence RI
Cross Insulation Cumberland RI Crystal Plumbing and Heating Providence RI
CSV Mechanical South Kingstown RI Cummings Plumbing Co Coventry RI D and J Plumbing and Heating Charlestown RI
D and V Mechanical Westerly RI
D&D Metal Works Cranston RI Dave Parillo Plumbing and Heating Cranston RI David Garrahan DBA Pipe Fixer Coventry RI
David Iannucci Providence RI
DBA Marciano Electric West Warwick RI Delektra Plg and Htg Co Warren RI Deltufo and Sons Plumbing and He ating Co West Greenwich RI DFS Plumbing Services West Greenwich RI
Dimezza Const Warwick RI Dionne and Sons Piping Dynamics Ltd Coventry RI Dirocco Plumbing Services LLC. North Providence RI Don Jestings and Sons LLC Middletown RI
Donovan and Sons M iddletown RI Douglas Oil CO Providence RI

### 38 Drivers Plumbing and Heating Providence RI
DSA Mechanical Barrington RI DSL & Sons Heating & Cooling LL Bradford RI
Dudek Oil Co Warren RI Dupuis Oil Co Pawtucket RI Dynamic Air Systems East Providence RI
E A Marcoux and Son Woonsocket RI
E M Greco and Son Warwick RI East Bat Chimney Works Warren RI East Bay Plumbing and Heating Bristol RI Eastbay Community Action East Providence RI Ed Beaudoin Plumbing and Heating Cranston RI Eddy's Construction

- DBA Providence RI Elmhurst Engineering East Providence RI Emergency Response Plumbing & Heating Warwick RI Eurotech Climate System Pawtucket RI Evergreen Plumbing and Heating Warwick RI
F G Lees Providence RI Falcon Hydraulics and Boiler Services Wes t Kingston RI FCI Engineering Group LLC Providence RI
Feather HVAC Cumberland RI Feula Plumbing and Heating Johnston RI Fletcher Heating Hopkinton RI Flou Heating and AC Narragansett RI
Foremost Electrical Service Cranston RI G and G Technology No rth Kingstown RI G Hill Plumbing Westerly RI
Gas Doctor Cranston RI
Gas Master Little Compton RI
Gas Pro Pawtucket RI
Gasman Warwick RI Geiselman Plumbing and Heating Pawtucket RI
Gem Air Services Pawtucket RI Gem Plumbing & Heating Services L incoln RI Gerard Levesque Plumbing and Heating Coventry RI Giammarcoi Plumbing North Providence RI
Gilbane Construction Providence RI
Gilbert Gizzarelli Warwick RI Ginger's Oil Company Westerly RI
Glendale Oil CO Burrillville RI
Globex Industries N arragansett RI
Goldon Goncalves East Providence RI
Goulart Petroleum Little Compton RI Green and Healthy Homes Initiative Providence RI
Green Seal North Kingstown RI
Greenwich Insulation West Warwick RI Groves Energy Scituate RI Guy Clemont Plumbin g and Heating Johnston RI H H Heating Lincoln RI H K Heating Coventry RI
HAABCO Construction Jamestown RI Harbor Controls Corporation North Kingstown RI Harmony Design & Const LLC Providence RI Hart Engineering Corporation Cumberland RI

### 39 Haven Plumb ing and Heating Co Cranston RI Hawkes Plumbing CO Glocester RI
HC Woodmansee and Son Hopkinton RI
Henderson Electric Pawtucket RI Heroica's Painting Providence RI Holgate Plumbing and Heating Warwick RI Hope Oil Scituate RI Houle Plumbing and H eating Coventry RI Houstyns Remodeling Lincoln RI Howard's Heating Service North Kingstown RI Iasimone Plumbing Hetaing and Drain Cleaning North Providence RI
IMichael Rinaldi Narragansett RI
Industrial Burner Service Providence RI
Industrial Electr ic Cranston RI Industrial Pump Tiverton RI InQuest Technologies Providence RI J and M Plumbing Coventry RI J Joyce Plumbing and Heating Co Warwick RI
J.J. McNamara & Son Providence RI
Jae Yoon Richmond RI Jay's Electric Providence RI
JD Mechanic al Smithfield RI Jeff Berard Plumbing and Heating Warwick RI Jenkins Heating Smithfield RI Jim Steitz Plumbing and Heating LLC Coventry RI JKL Engineering Co Providence RI JMAC Plumbing and Heating Warwick RI
JMB Mechanical Johnston RI
John C Fl etcher Hopkinton RI
John Nicholson Providence RI John S Babcock Plumbing Westerly RI Johnny's Oil & Heating Providence RI Johnson and Johnson Plumbing and Heating Narragansett RI Johnson Controls Lighting Services Lincoln RI Joseph Giorno Plumbing an d Heating Cranston RI Jr's Plumbing Service Warwick RI JRQ Heating Warwick RI
Just Heat Portsmouth RI Kafin Oil Company Woonsocket RI Kans Plumbing Bristol RI
Ken Adams Cranston RI
Kenahan Construction West Warwick RI Kens Heating LLC Providence R I
Kessler's Sheet Metal Providence RI
Koolco South Kingstown RI Kwik Plumbing and Heating Johnston RI L and F Plumbing LLC Cranston RI Lapierre Electric Woonsocket RI Lawrence Air Systems Barrington RI Lemay Framing & Remodeling North Smithfield R I Light House Propane East Greenwich RI Lighthouse Consulting Warren RI LJ Giorgi Plumbing and Heating North Providence RI Loln Energy Mechanical Services West Warwick RI

### 40 Lubera Plumbing Coventry RI Luso Plumbing and Heating Cumberland RI
Lutz Ai r Co East Providence RI Major Electric Supply Pawtucket RI Malone Plumbing and Heating Cranston RI Maloney's Oil Company Pawtucket RI
Mansi Warren RI Manuppelli Plumbing LLC Warwick RI Martel Plumbing & Heating Central Falls RI
Mathew Cedarfield Warwick RI
Mathews Bros DBA Arizona Oil Cranston RI
Mc Kee Brothers Oil Cumberland RI Mechanical HVAC Systems South Kingstown RI
Mendez Contractors Providence RI
Merit Mechanical Warwick RI Michael Freitas Plumbing and Mechanical Burrillville RI Michael Lundy Tiverton RI
Micheletti Oil Service Johnston RI MJ Bouchard Heating and AC Smithfield RI
Modern Mechanical LLC Woonsocket RI
Montella Oil Providence RI Mr Rooter Plumbing Warwick RI Munro Distributing Cranston RI Murray Plumbing and He ating Smithfield RI Mutual Development Corp West Warwick RI N E Electric Distribution (NEED) Amity Electric Richmond RI National Refrigeration Warwick RI Navigant Credit Union Smithfield RI New England Insulation Woonsocket RI New England Restorati on and Construction Services Exeter RI New England Supply Pawtucket RI Newport Plumbing and Heating Gas Co Portsmouth RI
NexGen Mechanical Warwick RI Nightingale Plumbing and Heating Providence RI
Nite Oil Tiverton RI North Atlantic Heating Coventr y RI Northeast Energy Reduction Lincoln RI
Northeast Noise Abatement Warwick RI Ocean State Heating Service LLCY Richmond RI
On The Side HVAC Cranston RI P and T Plumbing and Heating Coventry RI
P Mandarini Cranston RI
Patrick Martin Bristol RI
Pa triot Plumbing Coventry RI
Patriot Sheet Metal HVAC Pawtucket RI Pellegrino Plumbing Westerly RI People's Power and Light Providence RI
Percivalle Electric Warwick RI Perez Plumbing and Heating Cranston RI
Peter Paolino Johnston RI Peter Skeffingto n East Providence RI
Petro Providence RI Petronelli Plumbing and Heating Johnston RI

### 41 Phalanx Engineering Cranston RI Phil Paul Plumbing and Heating North Smithfield RI
Phil's Bottled Gas Service Co. Tiverton RI Phillip Rott Plumbing and RI Coventry R I Phillips Plumbing and Mechanical Cranston RI Piazza Enterprises Warwick RI Pickles Plumbing and Heating LLC Burrillville RI Pingitore Plumbing and Heating Co Johnston RI Pinnacle Plumbing and Heating Smithfield RI Plumbing & Heating Solutions LLY Providence RI Plumbing Solutions Cranston RI Potvin Enterprises Warwick RI
Premair HVAC Warwick RI Priority One Hopkinton RI Projects Can Happen Pawtucket RI Providence Community Action Program Providence RI
Providence Mechanical Services Smithfi eld RI R B Queern & Co Middletown RI R E Coogan Heating Warwick RI Ralph Ferra Plumbing North Smithfield RI Rambone & Sprague Oil Service Scituate RI Randy Pomeroy Burrillville RI Ray Ciampanelli Plumbing and Heating Co Peacedale RI Rayco Electric Providence RI Raymond Degnan North Providence RI Reddy Piping Concepts Cranston RI Regan Heating & Air Conditioning Providence RI Regency Plaza Providence RI
Reichert & Sons Fuel Oil Glocester RI Reinhold Plumbing and Heating Johnston RI
Reinsan t Heating Lincoln RI
Reliable Electric Coventry RI Reliable Plumbing and Mechanical Providence RI Resendes Heating Service LLC Coventry RI Restivo Heating and Air Conditioning Johnston RI Rhode Island Community Action Association Cranston RI
Rhode Is land Green Building Council Providence RI RI Analytical Warwick RI
RI Gutter Warwick RI
RI Insulation Scituate RI RI Plumbing and Heating Lincoln RI Ricahrd's Oil Company Coventry RI Richard A Lavey Warren RI RISE Engineering Cranston RI
RJL Insul ation Co. Middletown RI
RK Electric LLC North Kingstown RI Robert E Bang DBA Raymong J Reinsant Plumbing Lincoln RI Robert Martel Plumbing Central Falls RI Robert Squizzero Plumbing and Heating Cranston RI
Robs Oil Burner Service West Warwick RI
Rola nd & Sons Narragansett RI
Rossi Electric Cranston RI
Roto Rooter Services Providence RI

### 42 RST Sheetmetal Foster RI
Ruotolo Fuel Johnston RI RW Bruno Heating and Cooling Lincoln RI
S & S Electric Glocester RI S B Carbone Plumbing & Heating Cranston RI Sal Maggiacomo Plumbing and Heating Cranston RI Sal Manzi and Son Plumbing and Heating Co Cranston RI Sam Bliven Jr Plumbing & Heating Westerly RI
Sandler Services LLC East Providence RI
Sanoco DBA Santoro Providence RI Sasa Energy LLC Johnston RI
Savard Oil Co East Providence RI
Schneider Laboratories Richmond RI Seekonk Supply Providence RI
Shearman Oil Tiverton RI Sherman Plumbing East Providence RI Siemens Industry Cranston RI Simons Supply Warwick RI Sine Plumbing and Heating East P rovidence RI South County Community Action South Kingstown RI South County Gas Service Narragansett RI St. Angelo Plumbing Barrington RI Stack Design Build LLC Providence RI
Standish Brothers HVAC LLC Coventry RI
State of Rhode Island Providence RI
Statewide North Smithfield RI Stedman Kazounis Plumbing Charlestown RI Stephen C Girard East Providence RI Steven Plumbing Barrington RI Sun Systems Narragansett RI
Sunshine Oil Co Bristol RI Superior Comfort Bristol RI Superior Electric Warwick R I Superior Insulation LLC Warwick RI Superior Plumbing and Heating Cranston RI Sustainable Energy Solutions LLC Providence RI Sylvander Heat and AC East Greenwich RI T A Gardiner Plumbing and Heating Bristol RI T Gomes Heating & Cooling LLC Providen ce RI
Tadco Electric Johnston RI TH Malloy and Sons Cumberland RI The Plumber Company Johnston RI Thermal Home Energy Solutions Cranston RI Therrien Mechanical Systems Lincoln RI
Thomas Federicci Warwick RI Todd Delmonico Plumbing East Providence RI Tom Peters Plumbing and Heating Portsmouth RI Total Comfort Heating and Cooling Tiverton RI
Total Construction Services Providence RI
Trane Providence RI Travers Plumbing and Heating orporated Portsmouth RI
Tri

- Town Community Action Johnston RI
UG Nasons Middletown RI
United Mechanical Cranston RI

### 43 United Oil Burners Service Warwick RI
Universal Insulation North Providence RI University of Rhode Island South Kingstown RI
V & G Electric Westerly RI
V & L Construction Providence RI
Valcou rt Heating Little Compton RI Valley Heating and Cooling Richmond RI Valley Plumbing and Heating Cumberland RI Vaughn Oil Co Smithfield RI
Vernon's Oil Burner Service Warwick RI VICMIR Heating and Air Conditioning East Providence RI Viking Supply We sterly RI Vivona Plumbing & Heating Portsmouth RI Wakefield Heating Service LLC South Kingstown RI
Walco Electric Co. Providence RI Waldo Plumbing and Heating Lincoln RI Warner Appliance Service Cumberland RI Wesco Oil & Propane Smithfield RI
West bay Community Action Warwick RI Wickford Appliance Pawtucket RI William Barberry Scituate RI Wojcik Electric Narragansett RI Woods Heating Service East Providence RI Zawadzki Plumbing and Heating Warwick RI
Zerodraft Insulation LLC North Smithfield RI All Energy Services LLC Pawtucket RI L & B Remodeling Warwick RI
Mike's Oil Tiverton RI Facility Solutions Group Austin TX
NexRev Plano TX Vermont Energy Investment Corporation Burlington VT
Ecova Spokane WA New Buildings Institute White Salmon WA Northwest Energy Efficiency Council Seattle WA



### For More Information about the NECEC Institute or this Study, contact:

Kevin Doyle Principal, Green Economy Workforce Development Contractor, NECEC Institute 125 Summer Street, Suite 1020
Bosto n, MA 02110 kevinldoyle@gmail.com www.nececinstitute.org
617

- 500

- 9996
617

- 877

- 5804 (cell)

# Attachment 5

2012 RGGI Auction Proceed Report

## Rhode Island Regional Greenhouse Gas Initiative , Inc. Auction Proceeds Report Presented by National Grid May 31, 2013

Introduction Since 2008, Rhode Island (RI) has recei ved approximately $19.7 million from CO 2 

### Allowance Auctions through the Regional Greenhouse Gas Initiative, Inc. (RGGI). 1 

### As of January 2012, National Grid received $10.6 mill ion of those funds in order to expand energy efficiency (EE) efforts throughout the state. This report is in accordance with the RI Office of Energy Resource’s (OER) 2011 Plan for the Allocation and Distribution of RGGI Proceeds (‘2011 Plan’), which calls for an annual report that describes results for expanded and supplemental EE activities. This report demonstrates the successes
National Grid has had in the use of the RGGI auction proceeds that have been allocated to it, and provides justifi cation for continued allocation of RGGI funds to support the objectives of cost effective Least Cost Pr ocurement through implementation of National Grid’s energy efficiency programs and services.

Background The following table illustrates the RGGI pr oceeds that National Grid has received:

Auctions Auction
Year Net
Proceeds EE Funding Status EE Initiatives

$3,950,152 Received
March 2010 Funded all 2010 EE Programs Saved 115,540 Lifetime MWh in 2010

$2,633,434 Received
December 2010 Deep Energy Retrofit Pilot
New Homes Tier III Pilot
Heat Loan
Small Business Revolvin g Loan Fund

6-10 2009 -
2010 $5,043,347 $4,034,678 Received January 2012 Small Business Revolving Loan Fund Large Commerical Revolving Loan
Fund 1-5 2008 -
2009 $6,581,188



### Under the OER’s 2009 Plan for the Allocation and Distribution of RGGI Proceeds (‘2009 Plan’) sixty percent of RGGI auction proceeds were allocated to utility energy efficiency programs to be used to fund all energy efficiency programs in 2010. Those funds were used to save 115,540 lifetime MWh. Preliminary results were reported to RGGI, Inc. in February, 2011, and to the OER in the RGGI Auction Proceeds Report submitted on March 1, 2011.

National Grid received forty percent of RGGI auction proceeds from Auctions 1-5 in
December 2010. Those funds were used to la unch the Deep Energy Retrofit pilot, Heat Loan and Small Business Revolving Loan fund in early 2011. National Grid provided results for 2011 in RGGI Auction Proceeds Report submitted in May 2012. The Deep

1 Source: http://www.rggi.org/market/co2_auctions/results

### Energy Retrofit pilot, Heat Loan and the Small Business Revolving Loan fund continued in 2012 and this report provides results for these initiatives.

Additionally, under the OER’s 2011 Plan, the Company received eighty percent of proceeds from Auctions 6-10 in January, 2012. The proceeds were used to continue
innovative finance initiativ es, including capitalizing the existing Small Business Revolving Loan fund and establishing a Larg e Commercial Revolving Loan fund. This report provides results from both of those initiatives in 2012.

Deep Energy Retrofit The Deep Energy Retrofit (DER) pilot was designed to determine the energy savings and market potential for super insula tion retrofits in Rhode Islan d. The goal of the DER pilot was to achieve significant energy reductions of 50% or more in a home and learn how DER measures can be applied to retrofit programs in the future for all customers.

The pilot began with recruitment in 2010 with construction be ginning in 2011. In 2012, the pilot held a full-day workshop and also recruited single-family and multi-family owners, builders, developers and architects in the program. A total of four buildings, which have 9 dwelling units, were completed in the DER Pilot. They include a twofamily residence in North Kingstown, two three-family residences in Providence, and a single family home in Wakefield.

The pilot was successful because data gathered and evaluate d during the pilot determined that components of the DER are cost-effec tive under Least Cost Procurement benefitcosts tests. The Company r eceived Public Utility Commi ssion (PUC) approval to begin offering Roof, Exterior Wall, and Basement DER measures in 2013 as part of the Residential New Construction Program. A cu stomer can include these measures when they are re-roofing, re-siding, and upgrading their basement.

Two projects were accepted in 2011 and completed constructionin 2012. They included a twofamily residence in North Kingstown and a three-family
residence in Providence. Two more projects began and completed construction in 2012, including a three-family in Providence and a single family in
Wakefield. Pictured below are before and after images from construction on the three-family in Providence. Additional images from the project are included in
Attachment 1. During Construction Near Completion

### Heat Loan In 2011, the Company partnered with Navigant Credit Union and Citizens-Union Savings
Bank in order to offer customers 0% financi ng for energy efficiency improvements. The
Heat Loan can be used for Insulation and/ or Air Sealing Upgrades, Energy Efficient Heating System Replacement, Duct Seali ng and Duct Insulation, Energy Efficient Domestic Hot Water System, ENERGY STAR ® 

### Thermostat(s). Customers are eligible for 0% interest loans up to $25,000, for period of up to 7 years. Customers must receive an EnergyWise home assessment in order to be eligible for the Heat Loan. During the home assessment, auditors recommend the H eat Loan and leave behind customer-friendly information about taking the next steps.

The Heat Loan was actively promoted to customers in 2012. For example, National Grid developed a video that explains frequently asked questions about applying for a Heat Loan, as
illustrated here. The video can be
viewed at: https://www1.nationalgridus.com/
HomeRI-RI-RES.

In 2012, National Grid used the remaining RGGI funds to buy down the inte rest for 330 customers, administer the program, and also conduct quality assura nce inspections. Us ing just over $300,000 in RGGI funds to buy down interest to 0%, customers received a total amount of $1,878,352 in loans. The average loan was approxi mately $5,700. After the RGGI funds were exhausted in September 2012, the Company c ontinued to offer Heat Loan through EE funds, as approved by the PUC as part of the 2012 EE Plan. Combining the RGGI and EE funds, Heat Loan provided a total of 548 customers with a to tal loan value of $3,360,440 in 2012.

The annual and lifetime energy savings, as we ll as the benefits and cost savings, from equipment that Heat Loan financed are attri buted to the programs in which the borrowing customers participate, for example EnergyWise or High Efficiency Heating.

The RGGI Heat Loan pilot was a success. It demonstrated a finance model that customers liked, partnered with local RI banks and cr edit unions, and was implemented in a costeffective way as part of the EnergyWise program. The Company is expanding Heat Loan to more banks in 2013 such as Coventry Cred it Union and Baycoast Bank, as well as the Capitol Good Fund which is a non-profit lende r designed for customers with less-thanperfect credit.

### Small Business Revolving Loan Fund The Small Business Direct Install program helps businesses reduce their energy costs with energy efficient equipment such as lig hting upgrades, lighting occupancy sensors, walk-in cooler efficiency measures, and site -specific custom projects. National Grid offers incentives for up to 70% of the cost of the installation of qualified equipment and
then finances the customers’ share of the cost with interest-free financing up to 24
months. The finance can be re paid on monthly electric bills.

In 2011, the Company successfully created a revolving loan fund for small business customers using $1.8 million of RGGI proceeds. An additional $2.3 million in RGGI funds was received in January 2012 to help capitalize the loan fund so that it may continue to revolve and support cu stomer finance in the future.

The Small Business Direct Install program had 1,707 customers participate in 2012. The majority of these customers elected to r eceive finance and repay it on their bills and received a total of $2.3 million. During 2012, $1.6 million was repaid to the revolving
loan fund from customers who received finan ce previously. A fund ba lance report for the Revolving Loan Fund is included as Attachment 2. The fund balance report includes all of the Company’s Small Business fina nce activity, not just RGGI.

Overall, the program was able to sa ve 19,008 annual MWh and 209,164 lifetime MWh. The program created a to tal lifetime bene fit of $20.5 million which includes $14.8 million in reduced capacity and summer and winter energy benefits over the life of the
measures. For more information about bene fits please see the RI 2012 Energy Efficiency Year End Report, Table E-2, filed with the PUC in May 2013.

Large Business Revolving Loan Fund The Large Business Revolving Loan Fund help s large commercial and industrial (LC&I)
customers overcome financial barriers to inves ting in energy efficiency by financing their portion of the project cost, to be repaid on th eir bill over the next two years. Projects included the Providence School Department whic h was able to complete lighting retrofits in 14 schools. Together, the projects w ill save the school system 1,695 MWh annually.

In January, $1.7 million of the RGGI funds we re added to the Company’s existing Large Business Revolving Loan Fund. In 2012, 64 customers received $1.7 million from the RGGI funds. A fund balance report for the Large Business Revolving Loan Fund is
included as Attachment 3. The fund balance report includes all of the Company’s Large
Commercial and Industrial finan ce activity, not just RGGI.

Overall, the RGGI funds helped custom ers save 6,442 annual MWh and approximately 78,339 lifetime MWh. It also helped created a total lifetime benefit of $6.8 million which includes $5.3 million in capacity and summer a nd winter energy benefits over the life of
the measures. For more information about benefits please see the RI 2012 Energy Efficiency Year End Report, Table E-2, filed with the PUC in May 2013.

### Spending & Reporting The following table illust rates the 2011 and 2012 budgets and spending through December 31, 2012.

Auctions Received EE Funding Initiative Budget 2011 Spend 2012 Spend

Heat Loan 449,463 $ 146,698 $ 302,765 $

Homes Tier III Pilot 65,000 $

- $

- $ Deep Energy Retrofit Pilot 260,000 $ 27,848 $ 297,152 $ Small Bus. Revolving Loan Fund 1,858,971 $ 1,843,371 $ 15,600 $ Small Bus. Revolving Loan Fund 2,300,000 $ n/a 2,300,000 $ Large Bus. Revolving Loan Fund 1,734,678 $ n/a 1,734,678 $ 6,668,112 $ 2,017,917 $ 4,650,19 5 $ Total 1 - 5 December

2010 $2,633,434

6 -10 January 2012 $4,034,678



### Additionally, the Company submitted prelimin ary 2012 results of the RGGI initiatives and finance programs to OER in December 2012.

### ATTACHMENTS Attachment 1 – Deep Energy Retrofit Open House Presentation Attachment 2 – 2012 Small Business Revolving Loan Fund Balance Attachment 3 – 2012 Large Business Revolving Loan Fund Balance

### Phoenix Apartments LLC

26 Buildings, 83 Units of HUD Section 8 Housing 

# Deep Energy Retrofit Open House

523 Cranston Street, Providence, RI

During Construction Near CompletionBefore

Before BeforeDuring Construction

During ConstructionDuring ConstructionDuring Construction

During ConstructionDuring Construction

During ConstructionDuring Construction

Near CompletionNear Completion

Near CompletionAfterNARRAGANSETT ELECTRIC COMPANY

2012 RGGI FUNDED ENERGY EFFICIENCY ADJUSTMENT AND BALANCE

SMALL COMMERCIAL & INDUSTRIAL REVOLVING LOAN FUND

Total Small C&I Revolving Loan Fund for Jan-Dec 2012

Actual Actual Actual Actual Actual Actual 6MTHS

JAN FEB MAR APRIL MAY JUNE Y.T.D

1. TOTAL PAYMENTS RECEIVED (A) $2,572,469 $104,873 $118,334 $129,826 $94,258 $87,055 $3,106,815

2. TOTAL EXPENSE (B) $423,382 $78,138 $162,467 $203,718 $144,165 $157,210 $1,169,080

3. Cash Flow Over/(Under) $2,149,088 $26,734 ($44,132) ($73,892) ($49,907) ($70,155) $1,937,735

4. Start of Period Balance (C) $1,044,086 $3,199,636 $3,236,170 $3,201,840 $3,137,601 $3,097,187 $1,044,086

5. End of Period Balance $3,193,174 $3,226,370 $3,192,037 $3,127,948 $3,087,693 $3,027,032 $3,027,032

Before Interest

6. TOTAL INTEREST (D) $6,462 $9,800 $9,803 $9,653 $9,494 $9,339 $54,550

7. End of Period Balance

After Interest $3,199,636 $3,236,170 $3,201,840 $3,137,601 $3,097,187 $3,036,371 $3,036,371

Actual Actual Actual Actual Actual Actual ANNUAL

JULY AUG SEPT OCT NOV DEC TOTAL

8. TOTAL PAYMENTS RECEIVED (A) $114,695 $138,926 $106,348 $193,515 $146,392 $179,572 $3,986,262

9. TOTAL EXPENSE (B) $116,091 $145,874 $260,900 $255,691 $180,809 $198,833 $2,327,279

10. Cash Flow Over/(Under) ($1,396) ($6,948) ($154,552) ($62,176) ($34,418) ($19,261) $1,658,983

11. Start of Period Balance (C) $3,036,371 $3,044,234 $3,046,560 $2,901,064 $2,847,641 $2,821,856 $1,044,086

12. End of Period Balance

Before Interest $3,034,975 $3,037,286 $2,892,008 $2,838,888 $2,813,224 $2,802,595 $2,802,595

13. TOTAL INTEREST (D) $9,259 $9,274 $9,056 $8,753 $8,633 $8,577 $108,103

14. End of Period Balance

After Interest $3,044,234 $3,046,560 $2,901,064 $2,847,641 $2,821,856 $2,811,172 $2,811,172

15. FUND BALANCE AT YEAR-END $2,811,172

(A) On-Bill Repayments received (B) New customer financing (C) "End of Period Balance Before Interest" from prior month. 12 month(s) of actuals 0 month(s) of estimatesNARRAGANSETT ELECTRIC COMPANY DBA NATIONAL GRID

2012 RGGI FUNDED ENERGY EFFICIENCY ADJUSTMENT AND BALANCE

LARGE & MEDIUM COMMERCIAL & INDUSTRIAL REVOLVING LOAN FUND

Total Large C&I Revolving Loan Fund for Jan-Dec 2012

Actual Actual Actual Actual Actual Actual 6MTHS

JAN FEB MAR APRIL MAY JUNE Y.T.D

1. TOTAL PAYMENTS RECEIVED (A) $1,734,678 $0 $0 $0 $0 $0 $1,734,678

2. TOTAL EXPENSE (B) $0 $0 $0 $0 $0 $0 $0

3. Cash Flow Over/(Under) $1,734,678 $0 $0 $0 $0 $0 $1,734,678

4. Start of Period Balance (C) $945,000 $2,685,206 $2,693,396 $2,701,611 $2,709,850 $2,718,116 $945,000

5. End of Period Balance $2,679,678 $2,685,206 $2,693,396 $2,701,611 $2,709,850 $2,718,116 $2,718,116

Before Interest

6. TOTAL INTEREST $5,528 $8,190 $8,215 $8,240 $8,265 $8,290 $46,728

7. End of Period Balance

After Interest $2,685,206 $2,693,396 $2,701,611 $2,709,850 $2,718,116 $2,726,406 $2,726,406

Actual Actual Actual Actual Actual Actual ANNUAL

JULY AUG SEPT OCT NOV DEC TOTAL

8. TOTAL PAYMENTS RECEIVED (A) $0 $9,584 $16,825 $36,674 $15,305 $65,414 $1,878,481

9. TOTAL EXPENSE (B) $0 $217,984 $20,215 $19,261 $13,495 $1,945,430 $2,216,386

10. Cash Flow Over/(Under) $0 ($208,400) ($3,390) $17,413 $1,810 ($1,880,016) ($337,905)

11. Start of Period Balance (C) $2,726,406 $2,734,721 $2,534,344 $2,538,679 $2,563,862 $2,573,495 $945,000

12. End of Period Balance

Before Interest $2,726,406 $2,526,321 $2,530,954 $2,556,092 $2,565,672 $693,478 $693,478

13. TOTAL INTEREST $8,316 $8,023 $7,725 $7,770 $7,823 $4,982 $91,365

14. End of Period Balance After Interest (D) $2,734,721 $2,534,344 $2,538,679 $2,563,862 $2,573,495 $698,460 $1,698,460

15. FUND BALANCE AT YEAR-END (D) $1,698,460

(A) On-Bill Repayments received (B) New customer financing (C) "End of Period Balance Before Interest" from prior month. (D) Includes $1,000,000 transferred from the Large C&I DSM Program 12 month(s) of actuals 0 month(s) of estimates