Annual Report to the Oregon Public Utility Commission 

April 15, 2003
Table of Contents 

 

Executive Summary...............................................................................................1

1. Introduction .......................................................................................................3

2. Background.........................................................................................................3

3. Summary of 2002 Activities .......................................................................3

4. Energy Efficiency Program Accomplishments..................................5

5. Renewable Energy Program Accomplishments...............................8

6. Outreach and Communication Accomplishments.........................9

Appendices 

Appendix 1 

Audited Energy Trust of Oregon Financial Statements for the Fiscal Period 

October 1, 2001 – September 30, 2002

Appendix 2 

Unaudited Energy Trust of Oregon Income Statement for the Fiscal Period 

October 1, 2002 – December 31, 2002

Appendix 3 

Energy Trust 2002 Program and Project Descriptions

Appendix 4 

Energy Trust Progress in 2002 Toward Goals for 2002 and 2012

Appendix 5 

Energy Trust Board and Advisory Council Rosters

Appendix 6 

Energy Trust 2002 Board Development Guidelines

Appendix 7 

Partial List of Energy Trust Peer and Partner Organizations 
Energy Trust 2002 Annual Report to the Oregon Public Utility Commission April 15, 2003 

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Executive Summary 

The Energy Trust of Oregon, Inc., fulfills a vision held by a coalition of over one hundred 

community and social service organizations. In partnership with utilities and large Oregon 

industries, the coalition persuaded the 1999 Oregon legislature to set aside 3% of Portland 

General Electric and Pacific Power utility bills for energy-related “public purposes.” The measure 

is part of Oregon’s electric energy restructuring legislation. 

Starting March 1, 2002, three-quarters of these public purpose funds were directed to the 

nonprofit, independent Energy Trust under an agreement with the Oregon Public Utility 

Commission. The Energy Trust was created to streamline and stabilize energy conservation and 

renewable energy programs across PGE and Pacific Power service territories, delivering benefits 

to 1.3 million electricity users. 

In only 10 months of operation, the Energy Trust of Oregon, Inc., has initiated award-winning 

programs and delivered money-saving services to thousands of Oregonians. 

Energy Efficiency Results 

Total energy efficiency savings for 2002 exceed the Energy Trust’s 2002 goal by 7% and 

represent 4.5% of the Energy Trust’s goal to save 300 average megawatts by 2012. The 2012 

goal would meet nearly a third of the projected growth in Oregon’s electricity needs over 10 

years – enough to power a city twice the size of Bend. 

The Energy Trust invested $13.7 million in partnership with PGE and Pacific Power to continue 

efficiency services for their customers. These programs saved 9.0 average megawatts by year’s 

end. In addition, $519,344 was used to launch four initial Energy Trust quick-savings programs, 

achieving a savings of .3 average megawatts. The investment of $2.7 million in a market 

transformation partnership with the Northwest Energy Efficiency Alliance saved 4.1 average 

megawatts. 

While efficiency services to electric customers continued without pause, two of the Energy 

Trust’s quick-savings programs won national recognition from the American Council for an 

Energy Efficient Economy as examples of energy efficiency best practices. Two other major longterm programs were designed. By year end, one had been awarded to a competitively selected 

program management contractor. 

 

Renewable Energy Results 

Total 2002 renewable energy commitments exceed 2002 goals by 13% and represent 4% of the 

Energy Trust’s goal to provide one-tenth of Oregon’s electric energy from renewable energy 

resources by 2012. The 2012 goal represents an eight-fold increase in the amount of renewable 

energy available to Oregonians. 

Between March and December 2002, the Energy Trust approved six renewable energy projects 

expected to generate 18.1 average megawatts of clean energy. Three other projects were 

recommended for funding. 

In addition to funding solicitations and decisions, the Energy Trust began design of a 

comprehensive program to promote the widespread application of solar energy technology in 

Oregon homes and businesses. 
Energy Trust 2002 Annual Report to the Oregon Public Utility Commission April 15, 2003 

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Benefits to Oregonians from Energy Trust 2002 Programs 

• 12,567 homes and 1,583 businesses enjoy improved electric energy efficiency and 

related power bill savings 

• 13 Oregon communities received energy-saving green light-emitting-diode traffic lights 

• Nearly 1,000 manufactured home owners and residents in 23 Oregon communities save 

an average of 6 percent on their power bills 

• An Oregon restaurant saves 12% annually through a new energy management system 

• Funding is committed to increase Oregon energy from wind power by 20% 

• Solar power helps run the laundry in a Sutherlin affordable housing project and 

supplements a downtown Portland office building’s energy supply 

• Eight Habitat for Humanity-built homes in Bend use solar hot water systems 

• $7.8 million in wages, $1.5 million in new business income and creation of 204 new jobs 

related to energy efficiency investments in 2002, assuming these investments would not 

have occurred in the absence of the Energy Trust and public purpose collections 

• 166.2 thousand tons less carbon dioxide output, the equivalent of taking 33,244 cars off 

the road or planting nearly 45 thousand acres of trees 

A Transparent, Responsive Approach 

Meetings of the Energy Trust’s independent board of directors and its two standing advisory 

councils are announced in advance and open to the public. Meeting minutes and discussion 

documents are posted on the organization’s easy-to-use website, www.energytrust.org. Wideranging public outreach solicits participation by a variety of consumers, community 

representatives, trade organizations, unions, utilities, nonprofit organizations and government 

officials. Virtually all aspects of the Energy Trust’s operating framework, policies, strategic 

direction, programs, contracting, budgeting and other activities are developed with public input 

and review from diverse advisors. 

The Energy Trust’s commitment to open, accessible decision making led a journalist to note: 

“This organization is putting the public in public purposes.”1

 

1

 Mark Ohrenschall, editor of ConWeb on-line newsletter, writing in the May 2002 newsletter of the 

Northwest Energy Efficiency Council. 
Energy Trust 2002 Annual Report to the Oregon Public Utility Commission April 15, 2003 

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1. Introduction 

The mission of the Energy Trust of Oregon, Inc., is to change how Oregonians produce and use 

energy by investing in efficient technologies and renewable resources that save dollars and 

protect the environment. In its initial year of operation, the Energy Trust maintained services for 

PGE and Pacific Power customers while designing its own energy efficiency programs, approving 

major renewable energy projects and implementing several award-winning “quick savings” 

efficiency initiatives. The organization set up an office and hired a small staff. It created operating 

policies, principles and program designs in an open, public forum. It achieved significant results. 

This annual report was prepared to meet requirements of the Grant Agreement between the 

Energy Trust and the Oregon Public Utility Commission (OPUC). 

 

2. Background 

The nonprofit Energy Trust of Oregon, Inc., was established in March 2001 in keeping with 

Oregon’s electric energy restructuring law, SB 1149. The law, adopted by the Oregon legislature 

in 1999, directed the Oregon Public Utility Commission to select an organization to manage the 

investment of public purpose funds in programs that save electricity and develop renewable 

energy resources. In November 2001, OPUC signed an agreement with the Energy Trust for 

these services. 

OPUC and others shared the vision that an independent, nongovernmental organization could 

streamline management of conservation and renewable programs across the two utility service 

territories and provide stable funding over the 10-year life of the public purpose charge. 

Operating efficiencies and a market-based approach would maximize electricity savings and clean 

power production. 

Initial members of the Energy Trust citizen board of directors were named by the OPUC in 

March 2001. An interim executive director worked under contract to establish two advisory 

councils, draft an interim strategic plan and hire a permanent executive director. Margie Harris, 

selected as executive director in November 2001, began hiring staff and negotiated transition 

agreements with the two electric utilities collecting public purpose funds, Portland General 

Electric and PacifiCorp. Under these agreements, PGE and Pacific Power continued their energy 

conservation programs while the Energy Trust designed and began implementing its own 

programs. 

The Energy Trust officially opened its doors on March 1, 2002, the day designated by SB 1149 

for the start of public purpose charge collection. This annual report covers the period starting 

March 1 and ending December 31, 2002. Audited financials in the report cover the period from 

March 1 through September 30, 2002, then the designated end of the Energy Trust’s fiscal year. 

(Starting in 2003, the Energy Trust fiscal year shifts to a calendar year. The audit for 2003 will 

include the last three months of 2002.) 

3. Summary of 2002 Activities 

The new organization hired a small staff. The board of directors met monthly to develop 

operating policies and oversee program investments. 
Energy Trust 2002 Annual Report to the Oregon Public Utility Commission April 15, 2003 

4 

As required by its agreement with the OPUC, the Energy Trust created an action plan to guide 

its initial months of operation from March 1 through September 30, 2002. This initial action plan 

outlined an extensive process of public outreach to shape a five-year strategic plan and 

companion two-year action plan for the period starting October 1, 2002. The outreach effort 

included public meetings in 12 communities from Coos Bay to Enterprise. In addition, the 

Energy Trust met with stakeholder organizations and individuals, and held monthly meetings of 

two advisory groups, the Conservation Advisory Council and the Renewable Energy Advisory 

Council. 

Organizational accomplishments during the Energy Trust’s first 10 months of operation, from 

March 1-December 31, 2002, include: 

• Assured utilities would continue providing energy efficiency services while the Energy 

Trust ramped up its own programs. 

• Hired core staff of 18 by December 31 (toward a maximum of 25 through the end of 

2003). 

• Established policies and procedures that: 

- Balance the risk of innovative approaches against the need for reliable results 

- Assure equitable distribution of benefits to residential, commercial and industrial 

electricity users 

- Assure funding goes toward cost-effective energy conservation and abovemarket costs of renewable power, as required by SB 1149 

- Define approach to evaluation, monitoring and verification of program results 

• Created initial action plan for first seven months. 

• Conducted wide-ranging public outreach to understand needs and seek ideas for Energy 

Trust programs. 

• Created a website and call center to share information. 

• Completed studies of energy efficiency “best practices” and renewable energy 

“innovative practices.” 

• Initiated an interim assessment of energy efficiency resources in Oregon. 

• Commissioned an analysis of the economic and multiplier effects of Energy Trust 

expenditures in 2002 and budgeted expenditures in 2003 to capture job creation and 

other non-energy benefits of Energy Trust activities. 

• Adopted a five-year strategic plan for 2002-2007 and two-year action plan for Oct. 1, 

2002 - Sept. 30, 2004. 

• Presented quarterly reports to the OPUC in May, September and December of 2002. 

• Conducted an independent audit of financial records and internal controls for the period 

from October 1, 2001 to September 30, 2002. See Appendix 1. (Note: financial report 
Energy Trust 2002 Annual Report to the Oregon Public Utility Commission April 15, 2003 

5 

for the additional fiscal period October 1, 2002, to December 31, 2002, is also attached 

– Appendix 2.) 

• Maintained average administrative costs at 3.4% of revenue for the 15-month period 

October 1, 2001 through December 21, 2002. 

4. Energy Efficiency Program Accomplishments 

By law, 56 percent of public purpose funds support energy efficiency in homes and businesses. 

Efficient buildings, lighting, appliances, manufacturing and farm equipment help businesses 

perform better with less electricity. Energy conservation programs in the Northwest began in 

the late 1970s. Over the ensuing 25 years, utility investment in conservation rose and fell in 

cycles. By helping stabilize investment levels, the Energy Trust and public purpose funds 

strengthen and help develop the energy efficiency service sector. In turn, they also strengthen 

the overall economy by helping businesses optimize their resources retain jobs and remain 

competitive. 

Goals 

The Energy Trust established a goal to help consumers save 300 average megawatts of 

electricity by 2012, emphasizing results from long-lasting energy efficiency measures. 

Accomplishing this goal would meet more than 30% of the projected growth in Oregon 

electricity needs for the next 10 years – enough to power a city more than twice the size of 

Bend. 

Two related goals would extend Energy Trust programs to consumers who historically have not 

benefited from such programs, and help create a stable economy in which businesses promoting 

energy efficiency (and renewable energy) succeed and thrive.

2002 energy efficiency program results 

1. Utility transition programs: To assure energy savings and to sustain service to electricity 

users, the Energy Trust contracted with PGE and PacifiCorp to continue their energy 

efficiency programs. By the end of December 2002 these “transition programs” had 

saved 9.0 average megawatts of electricity (79,116,826 million kilowatt hours) at a cost 

of $13.7 million. 

2. Quick-savings programs: Additionally, the Energy Trust implemented four “quick-savings” 

programs of its own design. By the end of December 2002, the $519,344 invested in 

these programs had saved .3 average megawatts of electricity (2,674,019 kilowatt 

hours). The quick-savings programs included green light-emitting-diode traffic lights, 

duct-sealing for mobile homes, restaurant energy management systems and low-interest 

energy efficiency loans for government buildings. 2

 

3. Market transformation: The Energy Trust invested $2.7 million in market transformation 

activities through the Northwest Energy Efficiency Alliance. These efforts saved 4.1 

average megawatts of electricity (36,177,950 kilowatt hours). 

 

2

 The American Council for an Energy-Efficient Economy (ACEEE) selected the duct-sealing and green 

light-emitting-diode streetlight programs to receive national recognition as two of America’s best 

energy efficiency programs. 
Energy Trust 2002 Annual Report to the Oregon Public Utility Commission April 15, 2003 

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(See Appendix 3 for descriptions of Energy Trust programs and projects in 2002.) 

2002 Energy Trust efficiency program benefits to Oregonians 

• 12,567 homes and 1,583 businesses improved their electric energy efficiency and 

enjoyed related reductions in their power bills. 

• 13 Oregon communities received 2,781 green light-emitting-diode traffic lights at onethird the typical cost. The bulbs use 90.6% less electricity and last 3.5 times as long as 

conventional incandescent green traffic lights. 

• Owners and residents of 967 manufactured homes in 23 Oregon communities saved an 

average of 6% of their home electric bills after the Energy Trust provided free duct 

sealing. 

• One Oregon restaurant had a newly installed energy management system, saving an 

estimated 12% annually. At least 59 other restaurants are eligible for the same benefit in 

2003. 

• A low-interest loan program (2%) was available to governments and other institutions 

for energy efficiency improvements. One commitment for a project at Oregon State 

University will install a chiller with lifetime energy savings estimated at 6,231 megawatt 

hours. 

• Oregon businesses and residents benefited from programs of the Northwest Energy 

Efficiency Alliance to promote energy efficient appliance sales, green building design, 

energy control systems and other programs to make affordable, energy-efficient 

products and services available in the marketplace. 

• A study of Energy Trust energy efficiency investments in 2002 by Eco Northwest 

concluded that these efforts generated $7.8 million in wages, $1.5 million in new 

business income and the creation of 204 new jobs, assuming these investments would 

not have happened in the absence of the Energy Trust and public purpose collections. 

• Energy Trust energy efficiency programs reduced carbon dioxide (CO2) output by nearly 

70.9 thousand tons, the equivalent of taking 14,180 passenger cars off the road or 

planting 19 thousand acres of trees to sequester CO2. 

Energy Trust energy efficiency savings in 2002 

Below is a breakdown of 2002 electric energy savings by service territory and market sector. 
Energy Trust 2002 Annual Report to the Oregon Public Utility Commission April 15, 2003 

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Energy Trust progress in 2002 toward energy efficiency goals 

Together, Energy Trust energy efficiency initiatives saved 13.5 average megawatts of electricity 

(117 million kilowatt hours) between March 1 and December 31, 2002. This savings represents 

4.5% of the Energy Trust’s 2012 goal of 300 average megawatts of electricity saved through 

energy efficiency measures, and 107.2% of our 2002 goal. See Appendix 4. 

Evaluations 

The Energy Trust established a policy and plan to evaluate all efficiency and renewable energy 

programs. Evaluations will establish reliable estimates of savings and suggest improvements in 

marketing and delivering programs. Evaluations of the green light-emitting diode streetlight and 

duct-sealing programs were begun in 2002, along with an evaluation of market status of 

residential energy-efficient windows. Evaluation results will be available in 2003. 

Status of Energy Trust efficiency program designs 

By end of 2002, the Energy Trust had defined our program approach to serving existing 

commercial facilities. A competitive request for proposals for the Building Efficiency program 

management contractor was issued in October. It attracted five responses, from which Aspen 

Systems Corporation was selected to run the program, set to start February 1, 2003. 

The Energy Trust also completed the program design for existing residences. A request for 

proposals for the Home Energy Savings program was issued in November. It drew six 

responses, and by year end the proposals were being reviewed. The program was set to start 

March 1, 2003. 

Planning for three more major energy efficiency programs began. Service delivery for the New 

Building Efficiency, Industrial Process Efficiency and New Home Energy Savings programs will 

begin by summer 2003. 

Status of NW Natural gas programs 

A decoupling settlement between the OPUC and NW Natural Gas (02-634, September 12, 

2002) directed NW Natural to fund the new energy efficiency programs and transfer existing 

energy efficiency programs to the Energy Trust or another independent entity approved by the 

OPUC. 

 

The Energy Trust and NW Natural entered into negotiations to fund new and enhanced 

programs, and define a Memorandum of Understanding to broadly govern the working 

relationships between the two parties in their efforts to promote energy efficiency. 

 

2002

kWh aMW kWh aMW kWh aMW

Residential 28,132,332 3.211 10,905,952 1.245 39,038,284 4.456

Commercial 42,621,949 4.866 18,781,635 2.144 61,403,584 7.010

Industrial 8,158,369 0.931 9,368,558 1.069 17,526,927 2.001

All sectors 78,912,650 9.008 39,056,145 4.458 117,968,795 13.467

PGE territory Pacific Power territory Combined

Note: Figures include energy savings for transition, quick savings and market transformation 

programs. 
Energy Trust 2002 Annual Report to the Oregon Public Utility Commission April 15, 2003 

8 

Additional funding will cover Energy Trust “successor programs” to take the place of existing 

NW Natural gas programs. That funding will be determined through settlement of NW 

Natural’s rate case with the OPUC and will become available late in 2003. 

 

5. Renewable Energy Program Accomplishments 

SB 1149 dedicates 17 percent of public purpose funds to generating electricity from renewable 

energy resources like wind, solar, animal and plant waste, and underground hot water 

(geothermal). 

Goals 

The Energy Trust established a goal to provide 10% of Oregon’s electric energy from renewable 

resources by 2012. This represents an eight-fold increase in the amount of renewable energy 

available to Oregonians. At least 450 average megawatts of new clean power is needed to meet 

the goal, enough to meet more than half of Oregon’s anticipated electricity growth over the 

next decade. 

2002 renewable energy programs 

There were no ready-to-go renewable energy programs for the Energy Trust to support on 

March 1, 2002. Central power stations that produce electricity for many thousands of homes 

and businesses can take months or years to site and build. Advance planning is needed to ready 

technologies like solar electric for widespread application. Installer networks must be trained. 

The benefits, in terms of renewable power generated, typically follow the initial investment by 

months or years. 

The Energy Trust approved several renewable energy projects in 2002: 

 

1. Combine Hills Turbine Ranch: In June the Energy Trust issued a request for proposals for 

one or more large wind turbine developments. By the end of the year negotiations were 

moving forward on a 41-megawatt (14.25 average megawatt) wind central station near 

Milton-Freewater. The developer, Eurus Oregon Wind Power, plans to begin generating 

power by December 2003, pending a power purchase agreement with PacifiCorp.

2. Three-Mile Canyon Farms Biogas Project: In June the Energy Trust approved funding for a 

4.1-megawatt (3.85 average megawatt) biogas project at a large dairy farm near 

Boardman. An unexpected delay in the power purchase agreement between the farm 

and PGE had not been resolved by the end of 2002. 

3. Unsolicited Proposals: The Energy Trust sets aside a portion of its renewable energy 

budget for unsolicited proposals. Nineteen unsolicited renewable energy proposals were 

received in 2002, of which four had been approved for funding by the end of 2002. The 

approved projects were: 

• 22.4 kilowatt photovoltaic installation on an office building in Portland’s Brewery 

Blocks development. 

• Solar hot water systems for eight Habitat for Humanity homes in Bend. 

• Wind anemometer loan program to measure and test suitability of wind for 

small to mid-sized wind turbines. 

• 3.9 kilowatt solar photovoltaic system in Sutherlin to produce 4,700 kilowatt 

hours per year to power laundry facilities in an affordable housing project 
Energy Trust 2002 Annual Report to the Oregon Public Utility Commission April 15, 2003 

9 

 Other unsolicited projects recommended for funding in 2002 were: 

• A small hydro project with the City of Albany to revive 511 kilowatts of 

generation, producing 2,561,000 kilowatts per year at their municipal water 

facilities. 

• 60-kilowatt microturbine demonstration project using waste biogas from the 

Durham Water Treatment facility in Tigard to produce 442,000 kilowatt hours 

per year 

• 25-kilowatt small wind turbine to help power an irrigation system for an 

orchard in Hood River producing 40,000 kilowatt hours per year 

See Appendix 3 for descriptions of Energy Trust programs and projects in 2002. 

Energy Trust progress in 2002 toward renewable energy goals 

For the most part, renewable energy projects do not begin generating power for months or 

years after financing is approved. Looking forward, Energy Trust renewable energy projects 

approved in 2002 are expected to generate 18.1 average megawatts of electricity. This 

achievement would represent 4% of our renewable energy goal for 2012, and 113% of our 2002 

goal for renewable energy generation. See Appendix 4. 

2002 Energy Trust renewable energy benefits to Oregonians 

Projecting forward, Energy Trust renewable energy projects approved in 2002 will benefit 

Oregon’s economy and environment. 

• Energy Trust renewable energy programs reduced carbon dioxide (CO2) output by 

nearly 95.3 thousand tons, the equivalent of taking 19,064 passenger cars off the road or 

planting nearly 26 thousand acres of trees to sequester CO2. 

Status of planning for more Energy Trust renewable energy programs 

In fall 2002, the Energy Trust conducted statewide focus groups with representatives of the 

Oregon solar energy industry as a first step in designing a comprehensive program to promote 

widespread application of solar technology in Oregon homes and businesses. The program was 

being readied for launch in spring 2003. A baseline analysis of the solar industry and market in 

Oregon was launched in preparation for the final drafting of an integrated solar program for 

PacifiCorp and PGE ratepayers. 

Programs to promote small to mid-sized wind turbines, geothermal power and biomass projects 

are scheduled for implementation in 2003 and 2004. 

6. Outreach and Communication Accomplishments 

Commitment to open, public decision making is a cornerstone of the Energy Trust’s operations, 

The Energy Trust drew an early characterization by the energy conservation news organization 

Con-Web: “This organization is putting the “public” in public purposes.” 

Goals 

One of the Energy Trust’s goals is to encourage Oregonians to integrate energy efficiency and 

renewable resources into their daily lives. In part this is achieved by effective communications 

that explain and attract participation in Energy Trust programs. 
Energy Trust 2002 Annual Report to the Oregon Public Utility Commission April 15, 2003 

10 

2002 communication tools 

The Energy Trust’s chief communications vehicle is its web page, www.energytrust.org. Agendas 

and pertinent documents are posted there in advance of advisory council and board meetings. 

Minutes, board actions and reports are kept in the archives section. Information requests are 

encouraged and promptly answered. 

By year end, the organization had procured a toll-free telephone number, 1-866-ENTRUST. A 

contract call center was engaged to refer callers to Energy Trust programs as they begin coming 

on line starting February 2003. 

Following a competitive selection, won by a small advertising agency based in Salem, the Energy 

Trust logo was redesigned and guidelines developed for the family of print materials to be 

developed in 2003 and used by program management contractors. 

Board and Advisory Councils 

The Energy Trust’s two advisory councils, the Conservation Advisory Council (CAC) and the 

Renewable Energy Advisory Council (RAC), meet monthly and are open to all. Notice of each 

meeting is sent to anyone expressing interest, a list that by year end comprised 46 individuals 

interested in the Renewable Energy Advisory Council and 155 on the Conservation Advisory 

Council’s distribution list. Agendas, meeting notes and packet materials are posted on the web. 

The two groups reviewed and discussed every major Energy Trust policy and program initiative. 

The CAC considered proposed energy efficiency policies and programs, while the RAC focused 

on renewable energy policies and projects. 

The Energy Trust Board of Directors met nine times in 2002. Notice of board meetings is sent 

via email to a growing list totaling several hundred individuals by the end of 2002. Board 

agendas, minutes and packet materials are posted in advance on the web. 

Membership rosters of the board and advisory councils are included in Appendix 5. 

2002 outreach 

The Energy Trust executive director and lead staff traveled to 12 communities around the state 

in 2002. In each community, meetings open to the public were announced in local papers and by 

advance email and regular mail notice to a list of nearly 2,000 potentially interested individuals. 

An initial set of meetings in April and May sought to gather ideas for the Energy Trust’s strategic 

and action plans. Draft plans were discussed at the second round of meetings in September. 

Communities hosting meetings included Bend, Coos Bay, Enterprise, Hermiston, Klamath Falls, 

Medford, Pendleton, Portland, Roseburg, Salem, Seaside and Tigard. 

Energy Trust staff maintains ongoing communications and working partnerships with a wide 

range of organizations throughout the state. In addition, we exchange information and 

participate in a number of national and international organizations. A partial list is included in 

Appendix 7. 
Appendix 1 Energy Trust of Oregon, Inc. 

Financial Statements as of and for 

the Year Ended September 30, 2002 

and Report of Independent Accountants 
E N E R G Y T R U S T O F O R E G O N , I N C . 

TABLE OF CONTENTS 

Page 

Report of Independent Accountants 3

Financial Statements: 

 Statement of Financial Position 4 

 Statement of Activities 5 

 Statement of Cash Flows 6 

 Notes to Financial Statements 7 

Supplementary Financial Information: 

 Schedule of Functional Expenses 12 

Other Information: 

Governing Board and Management 13 

Inquiries and Other Information 14 

4

E N E R G Y T R U S T O F O R E G O N , I N C . 

STATEMENT OF FINANCIAL POSITION 

S E P T E M B E R 3 0 , 2 0 0 2 

( W I T H C O M P A R A T I V E A M O U N T S F O R 2 0 0 1 ) 

2002 2001 

Assets: 

 Cash and cash equivalents $ 54,413 7,553 

 Short-term investments (note 4) 8,950,260 – 

 Accrued interest receivable 8,835 – 

 Advances paid to contractor 225,484 – 

 Prepaid expenses 27,923 1,856 

 Office furnishings and equipment (note 5) 163,343 4,338 

 Long-term deposit 10,412 – 

Total assets $ 9,440,670 13,747 

Liabilities: 

 Accounts payable and accrued expenses 2,284,468 56,666 

 Accrued payroll and related expenses 82,271 – 

Total liabilities 2,366,739 56,666 

Unrestricted net assets: 

 Available for programs and general operations 6,910,588 (47,257) 

 Net investment in capital assets 163,343 4,338 

Total unrestricted net assets 7,073,931 (42,919) 

Commitments (notes 6, 9, 10 and 11)

Total liabilities and net assets $ 9,440,670 13,747 

See accompanying notes to financial statements. 
5

E N E R G Y T R U S T O F O R E G O N , I N C . 

STATEMENT OF ACTIVITIES 

Y E A R E N D E D S E P T E M B E R 3 0 , 2 0 0 2 

( W I T H C O M P A R A T I V E T O T A L S F O R T H E P E R I O D F R O M 

M A R C H 1 , 2 0 0 1 ( D A T E O F I N C E P T I O N ) T H R O U G H S E P T E M B E R 3 0 , 2 0 0 1 ) 

2002 2001 

Revenues, gains and other support: 

 Public purpose funding (note 7) $ 19,160,688 395,216 

 Private contributions 6,998 – 

 In-kind contributions 99,191 3,145 

 Interest income 31,650 37 

Total revenues, gains and other support 19,298,527 398,398 

Expenses (note 8):

 Program services: 

 Energy efficiency 10,923,304 47,653 

 Renewables 211,976 20,774 

 Communication and outreach 323,652 – 

 Capacity building – 225,618 

 Total program services 11,458,932 294,045 

 Management and general 722,745 147,272 

Total expenses 12,181,677 441,317 

Increase (decrease) in net assets 7,116,850 (42,919) 

Net assets at beginning of year (42,919) – 

Net assets at end of year $ 7,073,931 (42,919) 

See accompanying notes to financial statements. 
6

E N E R G Y T R U S T O F O R E G O N , I N C . 

STATEMENT OF CASH FLOWS 

Y E A R E N D E D S E P T E M B E R 3 0 , 2 0 0 2 

( W I T H C O M P A R A T I V E T O T A L S F O R T H E P E R I O D F R O M 

M A R C H 1 , 2 0 0 1 ( D A T E O F I N C E P T I O N ) T H R O U G H S E P T E M B E R 3 0 , 2 0 0 1 ) 

2002 2001 

Cash flows from operating activities: 

 Cash received in public purpose funding $ 19,160,688 395,216 

 Interest received 31,650 37 

 Cash from contributions and other sources 29,813 – 

 Cash paid to contractors, suppliers and employees (9,966,613) (383,107) 

 Interest expense (61,952) – 

Net cash provided by operating activities 9,193,586 12,146 

Cash flows from investing activities: 

 Capital expenditures (164,816) (4,593) 

 Net purchases of short-term investments (8,950,260) – 

 Reinvestment of interest income (31,650) – 

Net cash used in investing activities (9,146,726) (4,593) 

Net increase in cash and cash equivalents 46,860 7,553 

Cash and cash equivalents at beginning of year 7,553 – 

Cash and cash equivalents at end of year $ 54,413 7,553 

See accompanying notes to financial statements. 
7

E N E R G Y T R U S T O F O R E G O N , I N C . 

NOTES TO FINANCIAL STATEMENTS 

Y E A R E N D E D S E P T E M B E R 3 0 , 2 0 0 2 

1. Organization 

The Energy Trust of Oregon, Inc. (the Energy 

Trust) began operations as a nonprofit organization in March of 2001 to fulfill a mandate to invest “public purpose funding” for energy efficiency and renewable energy resources in Oregon. 

The mandate emerged from 1999 energy restructuring legislation (Oregon Senate Bill 1149) that 

included a 3.0% public purposes investment to 

the rates collected in Oregon by the two largest 

investor-owned utility companies. Subsequent action by the Oregon Public Utility Commission encouraged the start-up of a new nonprofit organization to administer the energy efficiency and renewable resource portions of these funds. 

On November 20, 2001, the Energy Trust entered 

into a grant agreement with the Public Utility 

Commission of Oregon to control the manner in 

which the Energy Trust will receive and expend 

funds for the statutory purposes and in conformity with the requirement and intent of the Oregon Senate Bill 1149. The agreement is effective 

as of March 1, 2002 for a term of three years from 

the effective date, with provisions for an automatic extension for one additional year for a rolling three-year commitment through 2012. 

When fully operational, the Energy Trust expects 

the public purpose funding described above to 

generate approximately $45 million annually. 

2. Program Services 

The Energy Trust seeks a future that includes reliable and affordable power for all consumers, informed energy consumers whose consumption 

patterns are efficient and responsible, energy supplies that have the lowest possible environmental 

impacts, and increasing reliance on renewable resources and corresponding reductions in greenhouse gas emissions. The Energy Trust will 

evaluate efficiency and renewable programs to ensure reliability of energy savings and renewable 

generation estimates. The evaluation function 

will also aid in enhancing the management, marketing, and overall effectiveness of all programs. 

To that end, during the year ended September 30, 

2002 the Energy Trust incurred development costs 

to guide future investment in the following major 

categories: 

Energy Efficiency – Investments in cost effective 

energy efficiency, including programs that include 

all classes of electrical consumers; that stimulate 

innovation and quality service in the development 

and delivery of efficiency products and services; 

that make “state-of-the-art” energy technology 

commonplace; that integrate direct use energy 

applications into energy efficiency efforts; that reduce peak loads and transmission and distribution 

costs; and that include partnership opportunities 

for energy efficiency activities with other energy 

providers. 
8 

Renewables – Programs to diversify Oregon’s 

renewable energy resources, including investments that reduce the production costs and eliminate other barriers of generating renewable energy by and for Oregon consumers; that demonstrate technologies and opportunities for distributed generating systems; that promote innovation 

and quality service within the renewable industry 

supporting Oregon; that promote the integration 

of renewable resources with sustainable buildings 

and other energy efficiency projects; and that attract new private investment to renewable 

technologies. 

Communication and Outreach − Programs to 

provide the public with general information, 

awareness and outreach activities associated with 

communicating about the Energy Trust and the 

purpose and benefits of its mission. This includes 

the timely involvement of key citizens and stakeholders in program development, the coordination of messages and marketing strategies to promote energy efficiency and renewable energy programs, and the development of a centralized information energy clearinghouse function. 

Management and General − Management and 

general expenses, sometimes referred to as administrative and general expenses, represent supporting services costs that are not identified with a 

single program activity, but that are indispensable 

to the conduct of those activities and to the organization’s existence. They include oversight, 

business management, general recordkeeping, 

budgeting, and all management and administration except for the conduct of program services. 

3. Summary of Significant Accounting 

Policies 

The significant accounting policies followed by 

the Energy Trust are described below to enhance 

the usefulness of the financial statements to the 

reader. 

Basis of Accounting – The accompanying financial statements have been prepared on the accrual 

basis of accounting in accordance with generally 

accepted accounting principles. 

Basis of Presentation – Net assets and all balances and transactions are presented based on the 

existence or absence of donor-imposed restrictions. Accordingly, the net assets of the Energy 

Trust and changes therein are classified and reported as follows: 

• Unrestricted net assets – Net assets not subject 

to donor-imposed stipulations. 

• Temporarily restricted net assets – Net assets 

subject to donor-imposed stipulations that will 

be met either by actions of the Energy Trust 

and/or the passage of time. 

The Energy Trust did not receive or hold any 

temporarily restricted net assets during the year 

ended September 30, 2002. 

Use of Estimates – The preparation of financial 

statements in conformity with generally accepted 

accounting principles requires that management 

make estimates and assumptions that affect the 

reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the 

date of the financial statements, and the reported 

amounts of revenues and expenses during the reporting period. Actual results could differ from 

those estimates. 
9 

Investments – Investments are carried at market 

value. Net appreciation in the fair value of investments, which consists of the realized gains or 

losses and the unrealized appreciation (depreciation) of those investments, is shown in the statement of activities. Interest income is accrued as 

earned. 

Grants and Contributions – During the year 

ended September 30, 2002, the Energy Trust received $6,998 in contributions restricted for the 

underwriting of interest costs, and $99,191 in 

various in-kind contributions (see the following 

paragraph). Grants and contributions, which include unconditional promises to give (pledges), 

are recognized as revenues in the period the commitment is received. Conditional promises to give 

are not recognized until they become unconditional, that is when the conditions on which they 

depend are substantially met. Contributions of 

assets other than cash are recorded at their estimated fair value. 

In-Kind Contributions – Significant services received which create or enhance a non-financial asset or require specialized skills that the Energy 

Trust would have purchased if not donated are 

recognized in the statement of activities. During 

the year ended September 30, 2002, contributed 

services valued at approximately $43,525 were recorded. 

In-kind donations of equipment and other materials are recorded when there is an objective basis 

upon which to value the contribution and where 

the contribution is an essential part of the Energy 

Trust’s activities. During the year ended September 30, 2002, $55,666 in contributed software and 

other materials were recorded. 

Capital Assets and Depreciation – Equipment is 

carried at cost, and at market value when acquired by gift. Depreciation is provided on a 

straight-line basis over the estimated useful lives 

of the respective assets, which is generally 3 to 5 

years. 

Revenue Recognition – All contributions and 

grants are considered available for unrestricted 

use unless specifically restricted by the donor. 

Public purpose funding is accounted for on the 

cash basis. Other service revenues are recognized 

at the time services are provided and the revenues 

are earned. 

Advertising Expenses − Advertising and promotional costs are charged to expense as they are incurred. 

Income Taxes − The Energy Trust is exempt 

from federal and state income taxes under Section 

501(c)(3) of the Internal Revenue Code and comparable state law. 

Concentrations of Credit Risk − The Energy 

Trust’s investments generally consist of money 

market funds and other investments in cash 

equivalents. These financial instruments may 

subject the organization to concentrations of 

credit risk as, from time to time, balances may exceed amounts insured by the Federal Deposit Insurance Corporation, the market value of securities are dependent on the ability of the issuer to 

honor its contractual commitments, and the investments may be subject to changes in market 

values. However, the Energy Trust strictly limits 

the banking institutions holding its funds to large 

money center banks and considers the attendant 

risks to be minimal. 

Conflict of Interest Policies – Included among 

the organization’s Board members, committee 

members, and executives are volunteers from the 

community who provide valuable assistance to 

the Energy Trust in the development of policies 

and programs, and in the evaluation and oversight of services. The Energy Trust has established a conflict-of-interest policy whereby Board 

and committee members must advise the Board of 

Directors of any direct or indirect interest in any 

transaction or relationship with the Energy Trust, 

and do not participate in discussions and decisions regarding any action affecting their individual, professional, or business interests. 
10 

Summarized Financial Information for 2001 – 

The accompanying financial information as of 

and for the period from March 1, 2001 (date of 

inception) through September 30, 2001 is presented for comparative purposes only and is not 

intended to represent a complete financial statement presentation. 

Other Significant Accounting Policies – Other 

significant accounting policies are set forth in the 

financial statements and the following notes. 

4. Short-Term Investments 

At September 30, 2002, the Energy Trust held 

$8,950,260 in funds invested in money market instruments. 

5. Office Furnishings and Equipment 

A summary of office furnishings and equipment at 

September 30, 2002 is as follows: 

Computer equipment and software $ 18,065 

Leasehold improvements 88,460 

Office equipment and furniture 62,885 

 169,410 

Less accumulated depreciation (6,067) 

 $ 163,343 

6. Line of Credit 

At September 30, 2001, the Energy Trust has 

available an unsecured line of credit in the 

amount of $4,000,000. Interest is at prime rate 

less 0.25%. The line matures on April 1, 2003. 

As of September 30, 2002, no balances were outstanding under the line of credit. 

7. Public Purpose Funding 

Public purpose funding received during the year 

ended September 30, 2002 is summarized as follows: 

Portland General Electric: 

 Energy efficiency $ 9,005,606 

 Renewables 2,774,138 

 11,779,744 

PacifiCorp: 

 Energy efficiency 5,657,037 

 Renewables 1,723,907 

 7,380,944 

 $ 19,160,688 

The above figures are net of advances received for 

start-up costs incurred during the period ended 

September 30, 2001 and repaid. 

8. Expenses 

The costs of providing the various programs and 

other activities of the Energy Trust have been 

summarized on a functional basis in the statement 

of activities. Accordingly, certain costs have been 

allocated among the programs and supporting 

services benefited. 
11 

9. Operating Lease Commitments 

The Energy Trust leases its administrative offices 

under an operating lease agreement which expires 

in August of 2007. At September 30, 2002, the aggregate annual commitments under the terms of 

this lease are payable as follows: 

Years ending September 30, 

2003 $ 109,323 

2004 109,323 

2005 110,624 

2006 124,940 

2007 114,528 

 $ 568,738 

Rental expense for the year ended September 30, 

2002 totaled $30,594. 

10. Retirement Plan 

The Energy Trust provides all employees with a 

qualified profit sharing retirement plan as described under Section 401(k) of the Internal Revenue Code. Generally, employees who have completed at least three consecutive months of work 

may elect to make voluntary contributions to the 

plan on a pre-tax basis, up to the limits allowed 

by law. Employees select from various investment options. On a discretionary basis as determined annually by the Board of Directors, the Energy Trust may make matching contributions to 

the plan. During the year ended September 30, 

2002, the organization accrued an amount equal 

to 6.0% of the compensation of each eligible employee earned for the nine-month period ended 

September 30, 2002. Contributions to the plan 

from both the employees and the Energy Trust 

vest as accrued. Retirement plan expense recorded by the Energy Trust totaled $25,047 for 

the year ended September 30, 2001. 

11. Contractual Commitments 

As of September 30, 2002, the Energy Trust had 

entered into contract commitments totaling 

$29,136,674. Of this total, $20,872,184 is expected to be paid during the year ended September 30, 2003. 

12. Statement of Cash Flows Reconciliation 

The following presents a reconciliation of the increase in net assets (as reported on the statement 

of activities) to net cash provided by operating activities (as reported on the statement of cash 

flows): 

Increase in net assets $ 7,116,850 

Adjustments to reconcile increase 

 in net assets to net cash provided 

 by operating activities:

 Depreciation 5,811 

 Reinvestment of interest 

 income 31,650 

 Net changes in: 

 Accrued interest receivable (8,835) 

 Advances paid to contractor (225,484) 

 Prepaid expenses (26,067) 

 Long-term deposit (10,412) 

 Accounts payable 

 and accrued expenses 2,227,802 

 Accrued payroll and related 

 expenses 82,271 

Total adjustments 2,076,736 

Net cash provided by 

 operating activities $ 9,193,586 

13. Subsequent Event 

Pursuant to an order by the Oregon Public Utility 

Commission in September of 2002, Northwest 

Natural filed a tariff implementing public purpose 

funding from residential and commercial customers with an effective date of October 1, 2002. Part 

of this funding will be forwarded to the Energy 

Trust for the creation of enhanced energy efficiency programs. A funding agreement between 

Northwest Natural and the Energy Trust will be 

dated October 1, 2002 for the purpose of establishing the transfer of funds and initial expenses. 

The first receipt of public purpose funds is expected on November 20, 2002. A program implementation and transition agreement regarding 

the programs to be funded is planned for execution in the first calendar quarter of 2003. 

 
Communi- ManageEnergy cation and ment and

efficiency Renewables outreach Total general Total 2001

Payroll and related 

expenses $ 190,057 67,155 141,279 398,491 213,164 611,655 − 

Professional services 482,737 85,775 90,649 659,161 378,339 1,037,500 19,314

Contract services 1,887 1,887 − 3,774 11,684 15,458 387,542

Grants and contracts 10,137,966 17,385 − 10,155,351 − 10,155,351 − 

Supplies 3,395 1,343 4,851 9,589 5,170 14,759 448

Postage and shipping 609 229 731 1,569 691 2,260 399

Communications 3,722 1,379 2,782 7,883 3,835 11,718 600

Printing 1,613 548 4,571 6,732 1,548 8,280 6,388

Occupancy 12,347 4,882 9,543 26,772 13,584 40,356 − 

Insurance 1,119 443 865 2,427 1,232 3,659 279

Equipment 38,006 15,030 29,378 82,414 42,691 125,105 5,462

Travel 3,964 1,253 5,321 10,538 4,102 14,640 3,395

Meetings 10,485 4,568 13,736 28,789 5,921 34,710 10,515

Training 3,009 241 471 3,721 1,026 4,747 − 

Interest 18,954 7,495 14,651 41,100 20,852 61,952 − 

Depreciation 1,778 703 1,374 3,855 1,956 5,811 − 

Other 11,656 1,660 3,450 16,766 16,950 33,716 6,975

Total expenses $ 10,923,304 211,976 323,652 11,458,932 722,745 12,181,677 441,317

12

E N E R G Y T R U S T O F O R E G O N , I N C .

SUPPLEMENTARY FINANCIAL INFORMATION -

SCHEDULE OF FUNCTIONAL EXPENSES

Y E A R E N D E D S E P T E M B E R 3 0 , 2 0 0 2

2002

( W I T H C O M P A R A T I V E T O T A L S F O R T H E P E R I O D F R O M

M A R C H 1 , 2 0 0 1 ( D A T E O F I N C E P T I O N ) T H R O U G H S E P T E M B E R 3 0 , 2 0 0 1 )

Program services
13 

E N E R G Y T R U S T O F O R E G O N , I N C . 

GOVERNING BOARD AND MANAGEMENT 

Board of Directors 

Steven Schell, President

Attorney, Black Helterline 

John Klosterman, Vice-President

Vice-President of Manufacturing 

Rejuvenation Inc. 

Tom Foley, Treasurer

Tom Foley Consultants 

Christine Ervin, Secretary

President and Chief Executive Officer 

US Green Building Council 

Jason Eisdorfer 

Legal Counsel and Energy Program Director 

Citizen’s Utility Board 

Cheryl Perrin 

Executive Director 

Campaign for America 

John Reynolds 

Professor of Architecture Emeritus 

University of Oregon 

Lynn Kittilson, ex-officio 

Senior Economic Analyst 

Electric & Natural Gas Division 

Oregon Public Utility Commission 

Management 

Margie Harris 

Executive Director 

Fred Gordon 

Director of Planning and Evaluation 

Steven Lacey 

Director of Energy Efficiency 

Peter West 

Director of Renewable Energy 

Jan Schaeffer 

Director of Communications and Marketing 

Monica Gruher 

Director of Finance and Operations 
14 

E N E R G Y T R U S T O F O R E G O N , I N C . 

INQUIRIES AND OTHER INFORMATION 

Administrative Offices 

ENERGY TRUST OF OREGON, INC. 

733 S.W. Oak Street, Suite 200 

Portland, Oregon 97205-3712 

(503) 493-8888 

(503) 546-6862 

info@energytrust.org 

Website 

www.energytrust.org 
Appendix 2

Unaudited Energy Trust of Oregon Income StatementYear to Date by Program/Service Territory For the Three Months Ending December 31, 2002 

ENERGY EFFICIENCY RENEWABLE RESOURCES 

PGE PacifiCorp NW Natural Total PGE PacifiCorp Total 

REVENUESPublic Purpose Funding $5,011,149 $3,291,540 $379,495 $8,682,184 $1,535,882 $1,011,418 $2,547,Wind - Restricted 226,686 226,Revenue from Investments 

------------------ ------------------ -------------------------------------- ------------------ ------------------ -------------

 TOTAL PROGRAM REVENUE 5,011,149 3,291,540 379,495 8,682,184 1,762,568 1,011,418 2,773,

------------------ ------------------ -------------------------------------- ------------------ ------------------ -------------

EXPENSES Program Mgmt and Implementation 3,367,676 2,364,032 95 5,731,803 77,000 5,385 82, Incentives to Participants 96,550 65,996 1,314 163,860  Technical Assistance Subcontractors 4,079 2,680 309 7,068  Utility Incentives-PGE & Pacif 531,000 222,339 753,339  Evaluation and Planning Services 42,674 27,306 3,823 73,803  Outsourced Services 22,377 14,698 2,087 39,161 22,414 14,760 37, Salaries & Related Expenses 73,487 48,269 15,034 136,790 17,772 11,703 29, Other Program Expenses 40,327 26,488 7,607 74,422 9,912 6,527 16,

------------------ ------------------ -------------------------------------- ------------------ ------------------ -------------

 TOTAL DIRECT PROGRAM EXPENSES 4,178,169 2,771,808 30,269 6,980,246 127,098 38,375 165,

------------------ ------------------ -------------------------------------- ------------------ ------------------ -------------

ALLOCATION OF ADMINISTRATIVE EXPENSES (Note 5) Management & General 117,141 84,682 896 202,719 4,819 1,259 6, Communication & Outreach 53,530 35,319 4,616 93,465 18,370 10,873 29,

------------------ ------------------ -------------------------------------- ------------------ ------------------ -------------

 Total Allocations 170,671 120,001 5,512 296,184 23,189 12,132 35,

------------------ ------------------ -------------------------------------- ------------------ ------------------ -------------

 TOTAL PROGRAM EXPENSES 4,348,840 2,891,809 35,781 7,276,430 150,287 50,507 200,

------------------ ------------------ -------------------------------------- ------------------ ------------------ -------------

TOTAL REVENUE LESS EXPENSES 662,309 399,731 343,714 1,405,754 1,612,281 960,911 2,573,

========= ========= ========== ========= ========= ========= =======

Note 1) Shared territory expenses have been allocated based on Public Purpose Revenue from each TerritoryNote 2) Shared program expenses have been allocated based on direct labor incurred on each program area, including administrativeNote 3) Management and General (Administrative) Expenses, net of interest income, have been allocated based on total expensesNote 4) General Communication and Outreach expenses have been allocated based on Public Purpose Revenue from each TerritoryNote 5) Mgmt & General and Communication & Outreach are 2.88% of revenue
Energy Trust 2002 Annual Report to the Oregon Public Utility Commission April 15, 2003 

1 

Appendix 3 

Energy Trust 2002 Program and Project 

Descriptions 

Energy Efficiency Programs and Projects 

1. Utility Transition Programs 

Portland General Electric and Pacific Power. In its initial year of operation, the Energy Trust 

maintained services for PGE and Pacific Power customers while designing its own energy 

efficiency programs. By the end of December 2002 these transition programs had saved 9.0 

average megawatts of electricity (79,116,826 million kilowatt hours) at a cost of $13.7 million. 

Through the transition program the Energy Trust funds Pacific Power’s Home Energy Efficiency, 

Energy FinAnswer and Small and Large Retrofit Incentive programs for existing residential 

dwellings, new and existing commercial buildings and industrial and agricultural facilities. For 

PGE, the utility transition program funds their Energy-Efficient Equipment and Information, 

Multi-family Direct Installation, Residential Weatherization, Earth Advantage Home and 

Nonresidential Energy Efficiency programs for new and existing residential dwellings, and new 

and existing commercial buildings and industrial facilities. The utility transition programs will be 

phased out throughout 2003 and 2004 as the Energy Trust launches and implements its own 

programs. 

2. “Quick Save” Projects/Programs 

Green LED Traffic Light. This program offered an incentive of $60 per lamp for installation of 

green LED traffic lights. The incentive covered approximately one-third the typical cost. Green 

LEDs use 90.6% less electricity and last 3.5 times as long as conventional traffic lights. 

Participating municipalities and agencies included Albany, Bend, Corvallis, Cottage Grove, 

Klamath Falls, Lake Oswego, Lebanon, Medford, Multnomah County, Oregon City, Oregon 

Department of Transportation’s Region One, Port of Portland, Tigard, and Washington County. 

The program was administered for the Energy Trust by the City of Portland Office of 

Sustainable Development. The 2,781 bulbs installed, at a cost of $205,559, are estimated to save 

.169 average megawatts for seven years. Additional LEDs were installed in early 2003; related 

costs and results will be included in the 2003 annual report. The Energy Trust Board of 

Directors approved funding for the program on April 3, 2002. 

Manufactured Home Duct Sealing. This program offered free testing and sealing of furnace/air 

conditioning ducts for manufactured homes. Leaking ducts account for a loss of up to a third of 

heated or cooled air. The program treated 967 manufactured homes in 23 municipalities for a 

total cost of $307,770. Locations included Beaverton, Bend, Benton, Carus, Chiloquin, 

Clackamas, Fairview, Jacksonville, Keno, Klamath Falls, Medford, Milwaukie, Myrtle Creek, 

Newburg, North Plains, Phoenix, Portland, Roseburg, Salem, Sutherlin, Talent, Troutdale and 

Yamhill. Estimated electricity savings are .132 average megawatts. Additional homes were 

treated in early 2003; related costs and results will be included in the 2003 annual report. 

Funding for the program was approved by the Energy Trust Board of Directors on April 3, 

2002. 
Energy Trust 2002 Annual Report to the Oregon Public Utility Commission April 15, 2003 

2 

Small-scale Energy Loan Program Buy-down. This program buys down the interest rate on Oregon 

energy loans for government buildings from 5.75% to 2%. It is available only to projects that do 

not receive utility rebates. As of the end of 2002, one commitment for a buy-down of $50,200, 

with expected energy savings of .047 average megawatts, had been processed through this 

program. Additional commitments were received in early 2003; related costs and results will be 

included in the 2003 annual report. Based on a budget of $500,000, expected electricity savings 

are .9 average megawatts. The Energy Trust Board of Directors approved the program on April 

3, 2002. 

Restaurant Energy Efficiency. This program provides an incentive of $2,750 for installation of 

qualified energy management systems in 60 restaurants using at least 250,000 kilowatt hours of 

electricity per year. Combined with the Oregon Business Energy Tax Credit, the incentive 

reduces the installed cost of an EMS by about 50 percent, and lowers electricity used by about 

10%. The Energy Trust works closely with the Oregon Restaurant Association to reach 

restaurants with the incentive offer and other information about energy-saving strategies and 

practices. As of the end of 2002, one system had been installed in a locally-owned McDonald’s in 

Portland, saving an estimated .003 average megawatts. The program is expected to save 0.21 

average megawatts and continues through June 2003. The Energy Trust Board of Directors 

approved $237,000 in funding for the project on May 22, 2002. 

Renewable Energy Projects 

1. Combine Hills Turbine Ranch project 

The Combine Hills Turbine Ranch project, to be built by Eurus Oregon Wind Power, is located 

west of Milton-Freewater, Oregon, at the eastern end of the Vansycle Ridge in Umatilla County. 

The project would generate up to 41 megawatts in the approved first phase and could be 

expanded to produce an additional 63 megawatts. Turbines are likely to be sized at 1 megawatt, 

probably with 195-foot towers and 90-foot blades. The project is planned to be operational by 

the end of 2003. A power purchase agreement with PacifiCorp is pending. The project will 

provide as many as 120 construction jobs and permanently employ up to 6 full-time operators. 

The project originated from a request for proposals issued by the Energy Trust on July 12, 2002. 

Out of seven proposals received, two finalists were selected. One finalist dropped out when it 

could not assemble financing. The Energy Trust Board of Directors approved up to $4.15 million 

in funding for the Eurus Oregon project on December 12, 2002. 

2. Three-mile Canyon Farms Biogas project 

The Three-Mile Canyon Farms project in Boardman will generate 4.1 megawatts of electric 

power from biogas. It will convert animal wastes from three dairies with 21,000 cows into 

electric energy. An anaerobic digester facility will generate methane gas for recovery from the 

waste stream. The methane will be captured and combusted in reciprocating engines to produce 

electricity. The project is expected to operate 95% of the time, providing 3.85 average 

megawatts per year for 15 years. It is planned to begin producing electricity in 2004. PGE will be 

the turn-key developer and will operate the completed project. The Energy Trust Board of 

Directors approved $1.5 million in funding for the project on May 22, 2002. 

3. Brewery Blocks Building #4 

Solar photovoltaic panels on this office building in the Brewery Blocks development in 

downtown Portland will generate 22.4 kilowatts of electricity. The project consists of 192 
Energy Trust 2002 Annual Report to the Oregon Public Utility Commission April 15, 2003 

3 

amorphous solar panels on the face of the building and 77 polycrystalline panels on the roof. 

The PV panels were procured in partnership with Bonneville Energy Foundation, which packaged 

the procurement with panels for an installation at White Bluffs in Hanford, Washington. Power 

production began in early 2003. The system is net-metered into the PGE grid. The project 

originated in an unsolicited proposal by Gerding/Edlen Developers, developers of the Brewery 

Blocks. The Energy Trust Board of Directors approved $167,000 in funding for the project on 

January 30, 2002. 

4. Habitat for Humanity solar hot water systems 

In September 2002 the Energy Trust committed $15,000 to place solar hot water installations 

on eight Habitat for Humanity homes served by Pacific Power in Bend. Estimated annual energy 

savings is 2,100 kilowatts per home. Habitat and New Path Renewables, Inc., managed the 

installation. Several of the initial installations were conducted as training sessions for solar 

installers. The co-developers agreed to provide further community marketing, training and 

outreach to build public awareness of the benefits of solar hot water. The Energy Trust received 

credit for the green tags from this project in return for providing funding support. 

5. Anemometer Loan Program 

This program partners with the Energy Resources Research Laboratory at Oregon State 

University to install loaned anemometers for 12 months at up to 19 Oregon locations over 

three years. The anemometers are automated wind measurement stations, about 30 feet tall and 

very slender. OSU maintains the application process, screens prospective borrowers, evaluates 

candidate sites, selects final sites, assists the landowner with installation, performs initial testing, 

conducts monthly checks of data received, and assists in evaluating wind resources at each site. 

The Energy Trust will establish a program for small-scale wind projects that will be a potential 

source of funding for wind projects on favorable sites. The anemometer loan program 

originated in an unsolicited proposal by Oregon State University. The Energy Trust Board of 

Directors approved $210,000 over three years for the program on July 24, 2002. 

5. Calapooia Crossing Affordable Housing Photovoltaic Project 

The Energy Trust committed $20,664 in December 2002 to help fund a 3.9-kilowatt 

photovoltaic system for an Umpqua Community Development Corporation affordable housing 

development in Sutherlin. The project is in Pacific Power territory. The development, to be 

completed in May 2003, consists of five single-family homes for first-time homebuyers and 11 

rental units for low-income residents. The PV array helps power a community laundry facility 

and is net-metered. The development has numerous other energy-efficient elements, including 

passive solar orientation, active solar water heating, radiant in-floor heating, heat recovery 

piping to capture waste heat from shower drains, and heat-recovery air-exchange ventilators. 
Appendix 4

Energy Trust Progress in 2002 Toward Goals for 2002 and 2012

K

Estimate Progr

aMW 300 aMW 13.47 aMW 4.49%

kWh 2,628,000,000 kWh 117,968,795 kWh 4.49% Unless noted all numbers 

Programs

Calendar 

Year Month PGE PacifiCorp NEEA

Restaurant 

Energy 

Efficiency 

Program

Manufactured 

Home Duct 

Sealing 

Program

Green LED 

Traffic Light 

Program S

March 3,078,060 4,054,779 3,954,514 N/A N/A N/A April 1,345,780 3,902,322 3,954,514 N/A 0 N/A May 2,641,534 1,036,656 3,954,514 N/A 0 0 June 4,173,745 1,093,959 3,954,514 N/A 76,800 0 July 2,167,835 706,764 3,954,514 N/A 247,200 0 August 3,597,538 1,698,317 3,954,514 N/A 271,200 0 September 4,743,411 924,672 3,954,514 N/A 290,400 26,674 October 2,667,078 5,099,586 2,832,117 30,000 223,200 378,774 November 2,882,418 1,824,924 2,832,117 0 38,400 234,199 December 25,420,585 6,056,863 2,832,117 0 13,200 843,972 

Total 52,717,984 26,398,842 36,177,950 30,000 1,160,400 1,483,619 

Annual Goal 43,800,000 27,604,530 28,344,246 61,320 1,003,418 1,280,362 

% of Annual 

Goal 120.36% 95.63% 127.64% 48.92% 115.64% 115.87% 

2002 Progress Toward 2012 Energy Savings Goal

To Date/Yearly To

2002 SummaryEnergy Savings To Date Energy To Date Energy Goal by 2012 Savings Savings % of Goal

Version 2.0
Appendix 4 (continued)

Energy Trust Progress in 2002 Toward Goals for 2002 and 2012

2002 Progress Toward 2012 Energy Savings Goal

2002 Program Energy Savings Actuals and Goals 

Program Actuals

Program Goals

0

5,000,000

10,000,00015,000,00020,000,00025,000,00030,000,00035,000,00040,000,00045,000,00050,000,000

PGE PacifiCorp NEEA Restaurant Energy

Efficiency Program

Manufactured Home

Duct Sealing Program

Green LED Traffic Light

Program

SELP

kWh

500

1,0001,5002,0002,5003,000

kWh

Version 2.0
Appendix 4 (continued)

Energy Trust Progress in 2002 Toward Goals for 2002 and 2012

aMW 450 aMW 18.11 aMW 

kWh 3,942,000,000 kWh 158,606,408 kWh 

Calendar 

Year Projects

Combine Hills 

Turbine Ranch

Threemile 

Canyon Farms 

Biogas

Brewery Blocks 

Solar PV

Calapooia 

Crossing 

Affordable 

Housing Solar PV

Bend Habitat 

for Humanity 

Solar Thermal

Total of 

Projects 

2002 kWh 124,830,000 33,726,000 28,908 4,700 16,800 158,606,408 

Unless noted all numbers are in kWh

Key Summary Solicited Projects Unsolicited Projects

Renewable Energy Progress Toward 2012 Generation Goal

Generation Goal by 2012

Renewable Energy To Date Approved Renewable

Energy Generation

To Date A

Energy G

Version 1.0
Appendix 4 (continued)

Energy Trust Progress in 2002 Toward Goals for 2002 and 2012

2002 Progress Toward 2012 Renewable Energy Generation Goal

Approved Generation

2002 Approved Renewable Energy Generation 

0

10,000,00020,000,00030,000,00040,000,00050,000,00060,000,00070,000,00080,000,00090,000,000

100,000,000110,000,000120,000,000130,000,000

Combine Hills Turbine Ranch Threemile Canyon Farms Biogas Brewery Blocks Solar PV Calapooia Crossing Affordable

Housing Solar PV

Bend Habitat for Humanity Solar

Thermal

kWh

500,000

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Energy Trust 2002 Annual Report to the Oregon Public Utility Commission April 15, 2003 

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Appendix 5 

Energy Trust Board and Advisory Council Rosters 

Membership as of December 31, 2003 

Board of Directors 

PRESIDENT - Steven Schell is an attorney at Black Helterline focusing on environmental, 

land use, real estate and construction issues. He served on the Land Conservation & 

Development Commission from 1973-1976 and on the Energy Facility Siting Council from 1990-

1998. 

VICE-PRESIDENT - John Klosterman is the vice-president of manufacturing at 

Rejuvenation Inc., and has been with the company for 10 years. As part of a state pilot project, 

he led his company’s implementation of an ISO 14001-based EMS with the sustainability 

principles of The Natural Step. His involvement with Business for Social Responsibility includes 

board membership, along with practical implementation of socially responsible policies and 

programs at Rejuvenation. 

SECRETARY - Christine Ervin is president and chief executive officer of the US Green 

Building Council, a national coalition of 600 leaders from across the building industry to advance 

buildings that are environmentally responsible, profitable, and healthy places to live and work. 

She served as assistant secretary for the Clinton Administration’s $1 billion portfolio of energy 

efficiency and renewable energy programs for buildings, vehicles, major industries and utilities. 

Christine directed the Oregon Department of Energy from 1991-93 and chaired former 

Governor Barbara Roberts’ Livable Communities Task Force. 

TREASURER - Tom Foley has over 26 years of experience in the field of energy analysis and 

management, including 10 years as manager of conservation and generating resources analyses 

for the Northwest Power Planning Council and 10 years at Battelle Northwest. He presently 

runs Tom Foley Consultants, providing resource planning and consultation with utilities 

throughout the country. 

Jason Eisdorfer is legal counsel and energy program director for the Citizen’s Utility Board. 

He served as the public interest representative in worksessions of the Oregon Legislature’s 

House Committee on Power Deregulation in 1997, and in 1999 helped author Oregon’s 

electricity industry restructuring legislation, which passed into law in July 1999. He is on the 

executive boards of the Fair and Clean Energy Coalition, the Northwest Energy Coalition and 

the Renewable Northwest Project. 

Rick Kroon is the Oregon site corporate services manager for Intel Corporation, where his 

responsibilities include utility management and energy conservation. Prior to moving to Oregon 

in 1992, Rick worked in California and New Mexico. Rick has an MBA in addition to an 

engineering degree from the University of Wisconsin. He also represents Intel on the 

International SEMATECH facilities council, whose membership represents global semiconductor 

manufactures and scope includes worldwide utility/energy management. 

Cheryl Perrin is the executive director of Campaign for America, a nonprofit organization 

focused on campaign finance reform. She served as a senior executive officer with Fred Meyer, 
Energy Trust 2002 Annual Report to the Oregon Public Utility Commission April 15, 2003 

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Inc., for 22 years, where she was responsible for the company’s government and political 

activities, news media relations, community and civic activities and environmental programs. She 

is a commissioner and vice-president of the Port of Portland, and serves on the board of STARS, 

the Willamette River Initiative, the Lewis & Clark 2005 Committee, Portland Public Schools 

Foundation and the Lewis & Clark Board of Trustees. 

John Reynolds is professor of architecture emeritus at the University of Oregon and has been 

involved in energy issues in Oregon since 1972, when he was elected to the Eugene Water and 

Electric Board. Since then he has served as the president of the Pacific Northwest Solar Energy 

Association and of the subsequent Solar Energy Association of Oregon. He also serves on the 

Energy Committee of the Building Codes Structures Board. 

Lynn Kittilson (ex officio) is a senior economic analyst in the Electric & Natural Gas Division 

of the Oregon Public Utility Commission. She has worked for the commission on energy-related 

issues since 1984. Her work experience over the last 10 years has focused primarily on review 

of investor-owned utility conservation programs. Lynn is also the commission’s non-voting 

member of the Northwest Energy Efficiency Alliance Board of Directors. 

 (The following two board members joined the Energy Trust in January and April 2003, respectively.)

Rick Applegate is the superfund coordinator at the City of Portland Bureau of Environmental 

Services. He has worked for more than 18 years on energy and environmental issues as an 

advocate for salmon and their watersheds. Rick was the Fish and Wildlife Director for the 

Northwest Power Planning Council from 1987 to 1995. Before that, he was the chair of the US 

Southern Stakeholders Pacific Salmon Treaty Negotiations, a member of the Pacific Northwest 

Comprehensive Energy Review, on the executive committee For the Sake of Salmon, and on the 

board of directors for the Sustainable Fisheries Foundation. Currently Rick serves on the board 

of the Pacific Salmon Watershed Fund. 

Julie Hammond is the vice president of operations at Sage Insurance Center in Bend. She has 

over 15 years experience in the insurance industry. Julie currently serves on the Safeco Advisory 

Council and Deschutes United Way. She brings a customer service orientation, small business 

perspective and regional representation to the Energy Trust. 

Conservation Advisory Council 

Susan Anderson, Portland Office of Sustainable Development 

Jeff Bissonnette, Fair and Clean Energy Coalition 

Julie Brandis, Associated Oregon Industries 

Carol Brown, Portland General Electric 

Jeff Bumgarner, PacifiCorp 

Gary Curtis, D&R International 

Thomas Eckhart, UCONS LLC 

Tom Eckman, Northwest Power Planning Council 

Terry Egner, Micro Grid 

Margie Gardner, Northwest Energy Efficiency Alliance 

Ken Keating, Bonneville Power Association 

Steve McCoid, Oregon Restaurant Association 

Bill Nesmith, Oregon Office of Energy 

Mat Northway, Eugene Water & Electric Board 
Energy Trust 2002 Annual Report to the Oregon Public Utility Commission April 15, 2003 

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Sara Patton, Northwest Energy Coalition 

Stan Price, Northwest Energy Efficiency Council 

Renewable Resources Advisory Council

Doug Boleyn, Consultant 

George Darr, Bonneville Power Association 

Angus Duncan, Bonneville Environmental Foundation 

Thor Hinkley, Portland General Electric 

Jeff King, Northwest Power Planning Council 

David McClain, Geothermal Consultant 

Virinder Singh, PacifiCorp 

Lisa Schwartz, Oregon Office of Energy 

Sonja Ling, Renewable Northwest Project 

Frank Vignola, Solar Monitoring, University of Oregon 

Alan Zelenka, Emerald People’s Utility District 
Energy Trust 2002 Annual Report to the Oregon Public Utility Commission April 15, 2003 

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Appendix 6 

Energy Trust 2002 Board Development Guidelines 

This appendix refers to board development guidelines as specified in the OPUC grant agreement 

with the Energy Trust, section 5, guideline 'k', referring to the Energy Trust retaining the skills, 

broad representation, and diversity necessary to achieve its mission. Background of board 

development is provided. 

The initial board of directors included nine9 members and one ex-officio member from the 

OPUC. The nine diverse members represented a variety of perspectives on energy matters 

combined with business acumen. Of the nine voting members and one ex-officio member, six 

provided collective strength, insights and experience relevant to energy policy and planning, 

program implementation and evaluation, facility siting, consumer advocacy, renewable energy 

development and sustainable practices. The remaining four members were all business 

community representatives, reflecting a subset of future commercial and industrial program 

participants. This latter group provided complementary skills and financial perspectives as 

marketers, energy consumers and users of anticipated Energy Trust goods and services. 

During the first year, the board evolved from a start-up organization to one focused on program 

delivery. Two of the four initial business representatives resigned for personal reasons. A board 

subcommittee initiated a broad recruitment effort to attract new members and fulfill board 

development guidelines. In addition to soliciting input through advisory councils and at public 

board meetings, over a dozen individuals and partner organizations were specifically asked to 

identify candidates with the following expertise: business experience and "bottom line" financial 

orientation, industrial/manufacturing expertise, marketing awareness and skills, familiarity with 

renewable energy and demographic and geographic representation. 

At this same time, the board expanded its size to 12 members to allow further diversity and 

representation. The targeted recruitment effort resulted in the selection of two new board 

members to fill vacancies, one of whom is employed by an international high tech manufacturing 

firm and brings a user/beneficiary industry perspective. The second member adds analytical skills 

appropriate to energy efficiency and renewable energy as well as relevant energy policy and 

program implementation experience. 

Additional candidates were identified and are being pursued from outlying, smaller communities 

in eastern, central and southern parts of Energy Trust service territories. Anticipated 

membership will provide geographic and demographic complements to existing members and 

further expand and reflect the true diversity of customers throughout the service areas. 

All new board members participate in an orientation session and are provided board handbooks 

containing historical information, policies, plans, budgets and program descriptions. The majority 

of board members also participate on the advisory councils and finance and policy committees. 

All such meetings are public, with relevant information accessible in advance on the web site. 

Advisory council and board meetings are well attended, with public comment a standard part of 

all meetings. 

In addition, all board members complete and sign conflict of interest forms, retained on file and 

updated annually. Once a year, board and staff members jointly participate in a planning session 

to review and update the strategic direction of the organization and to compare program 

accomplishments and goals to results. Board development is a part of this planning session, as 

needed.
Energy Trust 2002 Annual Report to the Oregon Public Utility Commission April 15, 2003 

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Appendix 7 

Partial List of Energy Trust Peer and Partner 

Organizations 

AFL-CIO 

American Council for an Energy-Efficient Economy 

American Solar Energy Society 

American Wind Energy Association 

Associated Oregon Industries 

Bonneville Power Administration 

Building Owners and Managers Association 

California Energy Commission 

Clean Energy Fund Network 

Community Action Directors of Oregon 

Efficiency Vermont 

Florida Solar Energy Center 

Homebuilders Association of Oregon 

IBEW 

Industrial Customers of Northwest Utilities 

Interstate Renewable Energy Council 

Lane Community College 

National Renewable Energy Laboratory 

New York State Energy Research & Development Authority 

North Carolina University Solar Center 

Northwest Energy Efficiency Alliance 

Northwest Energy Efficiency Council 

Northwest Power Planning Council 

Oregon Energy Coordinators Association 

Oregon League of Cities 

Oregon Office of Energy 

Oregon Restaurant Association 

Oregon Solar Energy Industry Association 

Oregon State University Energy Resources Research Laboratory 

Oregon Wind Working Group 

PacifiCorp 

Portland Energy Conservation, Inc. 

Portland General Electric 

Portland Office of Sustainable Development 

Remodelers Association of Oregon 

Solar Energy Association of Oregon 

Solar Energy Industry Association 

University of Oregon Solar Resource Monitoring Laboratory 

U.S. Department of Energy 

Utility Wind Interest Group