Working for OregoniansBuilding Our Energy FutureEnergy Trust 2003 Annual Reportto the Oregon Public Utility CommissionApril 15, 20042Table of ContentsPageI Message from the Executive Director 3II 2003 Highlights 4Table 1: Estimated 2003 Savings, Generation and Costs by Sector and Utility 5III About the Energy Trust 6Figure 1: Electric Program Progress Toward 2003 and 2012 Goals 7IV Planning and Evaluation 9V Our Vision: 2004 and Beyond 10AppendixEnergy Trust Programs 112003 Savings and Generation by Program, Sector and Utility 132003 Projects by Sector, Program and Utility 142003 Pollution Offsets 152003 Trade Ally Data 162003 Participant Data 17Board of Directors 18Board Development Guidelines 20Advisory Council Members and Meetings 22Energy Trust Service Territory Map 24Audited Financial Statements 253I Message from the Executive DirectorOregon’s energy future is bright. Acrossthe state, families, businesses and communities are lowering their energy bills, and clean, renewable energy isbeing generated with investments from the Energy Trust of Oregon,Inc. In 2003, its first full year of operation, Energy Trustprograms have made apositive and palpable difference in over 16,000 households andbusinesses, the economies of over 100 communities, and the environmental andeconomic health of our entire state.By the end of 2003, Energy Trust programs –developed and implemented with the supportof our utility partners, peer organizations, contractors andtrade allies – helped save or produce nearly 32average megawatts (aMW) of electricity and 208,000 therms of natural gas, enough energy to power23,000homes for a year. Our renewable energy investments supported more than 70 new grid-tied solar electric systems and a 41 megawatt wind farm.And that’s just the beginning.Our sights are set on the future. By 2012, our goal is to help Oregonians save 300 aMW of electricity and 19 million annual therms of natural gas and tomeet 10 percent of Oregon’s energy needs through renewable sources. Combined, that’s enough power to offset the need for one ormore new largeconventional fossil-fueled power plants.This annual report reviews the progress we made toward that goal in 2003, our first full year of operation. Impressive strideswere taken during thisinitial start-up phase, introducing programsacross the state and continuously improving their effectiveness. By year’s end, five new energy efficiencyprograms were fully implemented and two additional programs werein development. Completed projects – from energy efficient lighting to highefficiency gas furnaces – delivered 17.5 aMW in electricity savings and 208,223 therms. Coupled with committed projects, totalelectricity savings aredouble our 2003 goal of saving 21aMW.Energy Trust renewable resource programsexceeded our 2003 goal by over 1milllion kilowatt hours (kWh). We delivered 125,233,785 kWh through78 wind and solar projects, including the Combine Hills wind farm. The Solar Electricprogram, launched mid-year, reached its one-year objective ofdoubling the number of Oregon grid-tied photovoltaic systems by the end of 2003.It is exciting to see our work pay off in measurable kilowattsand therms, and gratifying to provide Oregonians with cash savings at home and at work.Also satisfying are the long-term benefits our investments aredelivering, including reduced environmental impacts such as greenhouse gas emissions, ahedge against future energy cost increases andpreservation of Oregon’s natural beauty.These are the results that drive us towardthe future. As we move into 2004, the Energy Trust is committed to its partnershipswith the utilities, theOregon Department of Energy and others to align our efforts to create an environmentally sound energy future for Oregon. We thank these partnersand all the others who are making our success possible – our volunteer board, staff, contractors,trade allies, the Oregon Public Utility Commission andespecially our first program participants.Sincerely,Margie HarrisExecutive Director4II2003 Highlights: More Services for More OregoniansCarpe diem was the Energy Trust motto in 2003.We seized all 365 days of the year, launching six new programs, expanding our customer base anddoubling program funding. With a lean staff of 26 and the support of four program contractors, three utilities, the Oregon Department of Energy,Northwest Energy Efficiency Alliance, a network of over 250 trade allies and numerousothers, we delivered cost-effective energy efficiency andrenewable energy programs throughout Oregon and set the pacefor the next eight years.We’re proud of the results.Savings for over 16,000 participantsWith cash incentives, we’ve made it affordable for Oregonians to reduce energy use and produce renewable power in homes and businesses across thestate. Improved efficiency and renewableenergy use provides utility customers witha hedge against future energy cost increases.Rapid launching of new servicesIn 2003, we mobilized diverse resources and initiated six major programs for Oregon customers of PGE and Pacific Power: Building Efficiency, HomeEnergy Savings, Production Efficiency, Solar Electric, New Building Efficiency and Solar Water Heating.Expansion into NW Natural territoryThrough an agreement with NW Natural, we expanded our residential and commercial programs to include gas customers.Support for Oregon businessesEnergy Trust programs helped our 257 trade allies build their Oregon-based businesses. Incentive payments allowed nearly 650 commercial andindustrial participants to make capital investments, manage energy payments and be more competitive.Meeting projections for 2012We’re well on our way to meeting our 2012 goals for energy savingsand renewable power production.Electric savings and commitments are nearlydouble our 2003 goal, natural gas savings are gaining momentum,and renewable energy produced and committed is on target.Collaboration and constant improvementThe Energy Trust enhanced program effectiveness by collaborating continuously with the three utilities, the Oregon Department of Energy and others,conducting independent program evaluations and making constant improvements.Cleaner air today and tomorrowWith the energy saved and renewable power produced to date, we’veoffset tons of pollutants that would have been generated by fossil-fuel powerplants – the equivalent of 309.5 million miles not driven.5Table 1: Estimated 2003 Savings, Generation and Costs by Sector and UtilityPGE Pacific Power NWNMWh aMW Costs $/kWhmil$/aMW MWh aMW Costs $/kWhmil$/aMW Therms Costs $/thermResidential 36,349 4.1 $3,964,293 $0.11 $0.96 17,718 2.0 $2,201,810 $0.12 $1.09 202,939 $800,121 $3.94Commercial +Industrial53,038 6.1 $8,378,852 $0.16 $1.38 46,528 5.3 $7,023,662 $0.15 $1.32 5,284 $57,315 $10.85Solar Thermal 0 0.0 $22,375 N/A N/A 0 0.0 $14,987 N/A N/A 0 $1,679 N/A

Energy Efficiency SavingsTotal EnergyEfficiency 89,386 10.2 $12,365,520 $0.14 $1.21 64,246 7.3 $9,240,459 $0.14 $1.26 208,223 $859,115 $4.13Open Solicitation 149 0.017 $135,818 $0.91 $8.01 5 0.001 $46,461 $9.73 $85.20 N/A N/A N/ASmall Wind 0 0.000 $68,042 N/A N/A 0 0.000 $45,574 N/A N/A N/A N/A N/ALarge Wind 0 0.000 $88,932 N/A N/A 124,830 14.250 $3,873,588 $0.03 $0.27 N/A N/A N/ASolar Renewable 45 0.005 $631,322 $14.11 $123.64 206 0.023 $902,202 $4.38 $38.41 N/A N/A N/A

Renewables GenerationTotalRenewables 193 0.022 $924,114 $4.78 $41.89 125,041 14.274 $4,867,825 $0.04 $0.34 N/A N/A N/ACombined- All TerritoriesMWh aMW Therms Costs $/kWh mil$/aMW $/thermResidential 54,067 6.2 202,939 $ 6,966,224 $0.11 $1.00 $3.94Commercial + Industrial 99,566 11.4 5,284 $15,459,829 $0.15 $1.36 $10.85Solar Thermal 0 0.0 0 $39,041 N/A N/A N/A

Energy Efficiency SavingsTotal Energy Efficiency 153,633 17.5 208,223 $22,465,094 $0.14 $1.23 $4.13Open Solicitation 153 0.017 N/A $182,279 $1.19 $10.42 N/ASmall Wind 0 0.000 N/A $113,616 N/A N/A N/ALarge Wind 124,830 14.250 N/A $3,962,520 $0.03 $0.28 N/ASolar Renewable 250 0.029 N/A $1,533,524 $6.12 $53.63 N/A

Renewables GenerationTotal Renewables 125,234 14.296 N/A $5,791,939 $0.05 $0.41 N/ATotal Energy Trust Programs$28,257,033Notes:Commercial and Industrial Sectorcosts and savings are combined.Utility Transition Programsavings not factored intoresidential and commercial/industrial programs.The costs reflected in this table are based upon audited financial transactions fromthe Energy Trust’s records. The audit scope did not include the specific program andservice territory allocations nor the individual calculations of$/aMW. However, at a summary level, the total program costs tie with the total audited numbers. Thesecosts do not include Energy Trust management and general nor general communications and outreach costs.$/kWh and mil$/aMW columns are derived by dividing cost values by savings valuesand therefore do not add within the column.6III About the Energy TrustOur missionThe Energy Trust is an independent nonprofit organization dedicated to energy efficiency and renewable energy production. We began work in March2002 with a mission to change how Oregonians produce and use energy.We serve, and are funded by, Oregon customers of Pacific Power, PortlandGeneral Electric and NW Natural. Through innovative programs, the Energy Trust invests in efficient technologies and renewableresources that:Develop new sources of clean energyHelp Oregonians lower their energy billsStimulate the economyProtect the environment.Our goalsThe Energy Trust is working to fulfill the State of Oregon’s vision to meet future energy needs through environmentally sound,clean energy sources.Our success is measured in kilowatt hours and therms saved andin renewable energy produced. Our 10-year goals come due in 2012.Goals for 2012Save 300 average megawatts of electricity through energy efficiencyinvestments, or enough to power two cities the size of Bend.Save 19 million annual therms of natural gasthrough energy efficiency investments, enough to fuel 79,000 home water heaters.Meet 10 percent of Oregon’s energy requirements (450 average megawatts) through renewable energy sources, compared to today’s level ofabout 1-2 percent1.Progress toward 2012 electricity goals2Approximately 18 percent toward 300 average megawatt electricitysavings goal, including completed projects and commitments.Approximately 3 percent toward renewable energy production goalof 450 average megawatts, including completed projects and commitments.Our approachAs a nonprofit organization, the Energy Trustis dedicated to operating as efficiently as possible. We manage our programs witha small staff, deliver themajority of our programs through contracts with service providers, and provide services through a network of several hundred small business tradeallies around the state. Our work is shaped by members of twoadvisory councils, overseen by a volunteer citizen board. We takepride in beingaccountable to the public through an open, accessible decisionmaking process.1Includes wind, geothermal, landfill and sewage gas, utility and utility customer green power purchases, and wood waste. Assumes small amount of grid-tied solar powerdoes not affect total. Sources: Portland GeneralElectric, PacifiCorp, Oregon Department of Energy.2Since Energy Trust services to NW Natural customers began after mid-2003, no annual goal was set. The 2012 goalwas adopted inDecember 2003. Tracking againstgas goals will begin in 2004.7Figure 1: Electric ProgramProgress Toward 2003 and 2012 Goals32003 Progress towards AnnualProjection186,845153,634358,334050,000100,000150,000200,000250,000300,000350,000400,000

MWh82%192%2003 Progress Towards 2012Projection271,603476,3032,628,0000500,0001,000,0001,500,0002,000,0002,500,0003,000,000

MWh10%18%Renewable Energy GenerationProgress Toward 2003 AnnualProjection124,250125,234129,562020,00040,00060,00080,000100,000120,000140,000

MWh101%104%Renewable Energy GenerationProgress Toward 2012Projection3,942,000125,234129,5620500,0001,000,0001,500,0002,000,0002,500,0003,000,0003,500,0004,000,0004,500,000

MWh3% 3%Total Annual MWh SavedTotal + Committed Annual MWh SavedProgram Annual ProjectionNotes:Scales are different for all three graphs.Committed values represent a snapshot of kWh estimated to besaved from committed projects at the time of this report.3In 2003 Energy Trust programs saved 121,327gas therms and logged project commitments to save 121,327 additional therms. Gas programs began in mid year. Goalsfor gas were not established until December 2003.8Action PlanThe Energy Trust operates under a two-year action plan, firstdeveloped in October 2002 and updated in 2003. The original action plan called for theEnergy Trust to field five new energy efficiency programs and three new renewable energy programs in 2003. The following changes were made in 2003:The Solar Water Heating program was added to the roster of new programs, increasing the number of new programs to six.The residential new construction program scheduled for introduction in 2003 was divided into two programs, Efficient New Homesand EfficientHome Products, and rescheduled for launch in 2004.Biomass and small wind programs were delayed to allow the Energy Trust to assist PGE and Pacific Power in attracting large renewable energyprojects targeted for implementation in 2004 and 2005.RecognitionEnergy Trust was recognized with the following honors and awards in 2003:•U.S. EPA’s Green Power PartnershipAs a partner, the Energy Trust was recognized for its efforts to reduce emissions associated with U.S. power generation throughtheprocurement of green power.•2003 ENERGY STAR® Small Business AwardThe Energy Trust received one of five awardspresented by U.S. EPA in recognition of small businesses that prevent pollution and promoteenergy efficiency.•Oregon Restaurant Association Partner HonorThis trade association recognized the Energy Trust for supportingthe Oregon restaurant industry with energy efficiency incentives and services.Partnerships and OutreachThe Energy Trust relies on many other organizations and individuals to assist in developing, promoting and delivering programs.In 2003, we collaboratedwith many public and private sector organizations. Primary among them are the three utilities and the Oregon Department of Energy, along withNorthwest Energy Efficiency Alliance. Other collaborative relationships include American Institute of Architects, Bonneville Power Administration, Cityof Portland Office of Sustainable Development, EPA ENERGY STAR, Industrial Customers of Northwest Utilities (ICNU), Oregon RemodelersAssociation, Oregon Restaurant Association, Portland Building Owners and Managers Association, and the Renewable Northwest Project, among others.We welcome businesses providing energy-related products and services to join the hundreds of business trade allies who deliverEnergy Trust servicesto our participants. At year’s end the number of trade allies had reached 257 and was growing steadily.9IV Planning and EvaluationThe Energy Trust is dedicated to delivering cost-effective energy efficiency programs and affordable access to renewable energyfor a broad range ofOregonians. We operate under a cycle of continuous improvement, fine tuning programs based on frequent feedback and evaluationto ensure we’rereaching goals and providing consumer benefits.In 2003, the Energy Trust completed the following studies to guide program design and improvements:Energy Efficiency and Conservation Measure Resource Assessment for the Residential, Commercial, Industrial and AgriculturalSectorsJan. 2003. Provided direction for strategic planning.Market Assessment of Green Light-Emitting Diode (LED) Traffic LightsJan. 2003. Guided decision to continue green LED program.Existing Residential Single Family WindowRetrofit Free Ridership - Final ReportMar. 2003. Helped establish window incentive levels.Economic Impact Analysis of EnergyTrust of Oregon Program ActivitiesApril 2003. Included baseline datafor economic impact tracking.Natural Gas Efficiency and Conservation Measure Resource AssessmentAug. 2003. Shaped development of gas incentives.Oregon Photovoltaic Market Characterization - Final ReportSept. 2003. Guided solar electric program design.Restaurant Energy Efficiency Pilot Program Process Evaluation - Final ReportSept. 2003. Spurred continuation of restaurant incentivesand integration into the Building Efficiency program.Process Evaluation of the Building Efficiency ProgramSept. 2003. Supported modification of this program toinclude more outreach to prospective participants.Process Evaluation of the Open Solicitation ProgramOct. 2003. Recommended modification of this renewable energy program to include more support for proposers.10V Our Vision: 2004 and BeyondAn Oregon with...More jobsStronger businessesLower energy costsProductive work environmentsComfortable homesA cleaner environmentEnergy sources that allow us to preserve Oregon’sresources and natural beautyfor future generationsThis is the vision that will guide the Energy Trust in the year ahead. We’ve built a solid foundation that will grow stronger as we improve and sustainexisting programs and introduce new programs to serve more people.New initiatives will provide energy efficiencyservices and incentives for homebuilders,commercial builders and developers andconsumers whopurchase efficient home appliances. Renewable resource programs will increase theamount of utility-scale wind development, double the number ofsolar electric installations, continue tosupport innovative projects, stimulate small-scale wind and biomass resource acquisition, and develop plans forother renewable energy initiatives.We’ve only begun to meet the demand for energy savings and renewable power generation. As program visibility and accessibilitybuilds, our challengewill be not how to generate consumer interest, but how to meetdemand with responsive, cost-effective services. We welcome thatchallenge.11Energy Trust Programs4Energy Efficiency ProgramsHome Energy Savings ProgramResidential utility customers can take advantage of energy-saving recommendations, referrals to qualified contractors and cashincentives forqualified improvements from insulation to duct sealing to energy-efficient electric water heaters. The program started in March2003 and ismanaged by Ecos Consulting, Inc. Completed 2003 projects = 10,723.Double Your Savings Washer PromotionThis three-month promotion in spring 2003 offered a $100 discount on the purchase of a new qualified ENERGY STAR® clothes washer. Thediscount included both manufacturer and Energy Trust rebates. Partners in the promotion includedthe Energy Trust, appliance manufacturersand the Northwest Energy Efficiency Alliance. The promotion was managed by Portland Energy Conservation, Inc., as a precursor to the EfficientHome Products program approved at year’send. Completed 2003 projects = 2,610.Building Efficiency ProgramThis program provides a range of energy-saving services and incentives for Oregon businesses. Incentives are offered for qualified improvementssuch as lighting, HVAC, motors, controlsand natural gas space and water heaters. Services include energy surveys and technicalanalysis,contractor referrals, project management and post-installation assistance. The program began in February 2003 and is managed byAspenSystems, Inc. Completed 2003 projects = 258 (additional 80 committed projects).New Building EfficiencyFinancial incentives for high efficiency equipment, energy modeling, design assistance and building commissioning oversight help customersmaximize efficiency of commercial and industrial new constructionprojects, major renovations and additions to existing buildings. This programwas launched in October 2003 and is managed by Science Applications International Corporation (SAIC). One project was committedin 2003.LED Traffic Signal ProgramIn 2003 over 32 Oregon communities invested in long-term savings with incentives for replacinggreen incandescent traffic signals with LEDbulbs. These bulbs use 90.6% less electricity and last 3.5 timeslonger than conventional incandescent green traffic lights. The program ismanaged by the City of Portland Office of Sustainable Development. 2003 installations: 2,386 lamps.Production EfficiencyThis program provides technical assistance and incentives toimprove the efficiency of manufacturing processes, water and wastewater treatmentand agriculture. Measures include energy-efficient pumps, fans, refrigeration, controlsand material transport. Industrial markets have been4“Program” is a set of services and incentives for a particular group of utility customers. “Project” entails installing one ormore measures at one site in alimited time period. Exception: for the LED Traffic Signal Program, “project” is a participating community or agency and not each individual green trafficlamp installed. This list of Energy Trust programs includes only those designed bythe Energy Trust and does not include utility transition programs or theNorthwest Energy Efficiency Alliance, both of which were supported by and produced savings for the Energy Trust in 2003.12underserved in the past, so demand for this program is vigorous. The program launched in May 2003and is managed by Aspen Systems, Inc.Completed 2003 projects = 4 (additional 126 committed projects).Programs for NW Natural customersIn 2003 NW Natural, the gas utility, sought and received approvalfrom the Oregon Public Utility Commission to transition its energyconservation program to the Energy Trust. The Energy Trust included customers of NW Natural in the Home Energy Savings, Building Efficiencyand New Building Efficiency programs.Solar Water Heating programThe solar thermal program began in November 2003, and its first project, Stewart Aquatic Center inEugene, was approved for anincentive. Theprogram serves residential and commercial customers. It is managed by Energy Trust staff.Northwest Energy Efficiency AllianceThe Energy Trust supports the market transformation work of the Northwest Energy Efficiency Alliance, and an Energy Trust representativeserves on the Alliance board of directors. The Alliance influences energy-efficient design andpurchasing practices and is funded by BPA, EnergyTrust and regional utilities. Energy Trust funding support is second only to BPA.Renewable Resource ProgramsUtility-Scale Renewables programThe Utility-Scale Renewables program facilitates partnerships between utilities and winddevelopers and provides incentives tocover the abovemarket costs for wind generation. Projects are acquired througha competitive solicitation process in partnership with PacifiCorp and PortlandGeneral Electric. The first project, the Combine Hills Wind Farm, came online in late 2003.Solar Electric programThe Energy Trust is helping homeowners and businesses tap into the pollution-free power of the sun with cash incentives and referrals toqualified solar contractors. Completed 2003projects = 74 (additional 30 committed).Open Solicitation programThe Energy Trust’s Open Solicitation programprovides incentives for innovative applications of renewable technology. It was designed tosupport renewable energy projects that are not eligible for incentives through other established incentive programs. Three projects wereapproved through this program in 2003.Anemometer Loan programThe wind anemometer loan program helps farmers and other landowners determine whether specific sites have potential for wind generation. Itis a first step in identifying and evaluating locations for small-scale wind power installations. The program is managed by Oregon StateUniversity's Energy Resource Research Laboratory. In 2003, five anemometers were loanedfor installation around the state and asixth loan waspending.132003 Savings and Generation by Program, Sector and UtilityPGE Pacific Power NWN Combined- All Territories CommittedTotal kWh Installed +CommittedkWh aMW kWh aMW Therms kWh aMW Therms aMW Therms aMW ThermsHome Energy Savings 6,133,869 0.7 2,839,285 0.3 189,3468,973,154 1.0 189,346 0.2 0 1.2 189,346Efficient Home Products 600,059 0.1 614,411 0.1 13,5931,214,471 0.1 13,593 0.0 0 0.1 13,593PGE Utility Transition (Residential) 1,599,397 0.2 0 0.0 0 1,599,397 0.2 0 0.0 0 0.2 0Pacific Power Utility Transition(Residential) 0 0.0 775,549 0.1 0 775,549 0.1 0 0.0 0 0.1 0

ResidentialNEEA (Residential) 28,015,196 3.2 13,488,798 1.5 N/A 41,503,995 4.7 N/A 0.0 0 4.7 N/ALED Traffic Signal 939,957 0.1 75,644 0.0 0 1,015,601 0.1 0 0.0 0 0.1 0Building Efficiency 10,042,219 1.1 7,104,192 0.8 5,284 17,146,411 2.0 5,284 10.6 40,550 12.5 45,834New Building Efficiency 0 0.0 0 0.0 0.0 0 0.0 0 0.5 75,000 0.5 75,000Production Efficiency 463,121 0.1 1,068,567 0.1 0 1,531,688 0.2 0 11.9 0 12.1 0PGE Utility Transition (Commercial& Industrial)35,161,539 4.0 0 0.0 0.0 35,161,539 4.0 0 0.0 0 4.0 0Pacific Power Utility Transition(Commercial & Industrial) 0 0.0 35,183,518 4.0 0.0 35,183,518 4.0 0 0.0 0 4.0 0

Commercial & IndustrialNEEA (Commercial & Industrial) 6,431,129 0.7 3,096,469 0.4 0.0 9,527,598 1.1 0 0.0 0 1.1 0Solar Thermal 0 0.0 0 0.0 0.0 0 0.0 0 0.0 5,777 0.0 5,777

Energy Efficiency SavingsTotal Energy EfficiencyPrograms 89,386,487 10.2 64,246,434 7.3 208,223 153,632,922 17.5 208,223 23.3 121,327 40.8 329,550Kettle Foods (Open Solicitation) 122,240 0.014 0 0.000 0 122,240 0.0 0 0.000 0 0.014 0Calapooia (Open Solicitation) 0 0.000 4,777 0.001 0 4,777 0.0 0 0.000 0 0.001 0Brewery Blocks (Open Solicitation) 26,280 0.003 0 0.000 0 26,280 0.0 0 0.000 0 0.003 0Combine Hills (Large Wind) 0 0.000 124,830,000 14.250 0 124,830,000 14.3 0 0.000 0 14.250 0Solar PV 44,730 0.005 205,758 0.023 0 250,488 0.0 0 0.011 0 0.040 0

Renewables GenerationTotal Renewable Programs 193,250 0.022 125,040,535 14.274 0 125,233,785 14.3 0 0.011 0 14.308 0Notes:Green LED Traffic Light pilot program combined with LED Traffic Signal program.Restaurant Energy Efficiency pilot program and SSELP buydown program combined withBuilding Efficiency program.Manufactured Homes Duct Sealing pilot program combined with Home Energy Savings program.142003 Projects by Sector, Program and UtilityPGE Pacific Power NWNCombined- AllTerritoriesHome Energy Savings 5,979 2,241 2,503 10,723Efficient Home Products 983 1,036 591 2,610PGE Utility Transition (Residential) 1,724 0 0 1,724Pacific Power Utility Transition (Residential) 0 427 0 427

ResidentialNEEA (Residential) N/A N/A N/A N/ALED Traffic Signal 8 1 0 9Building Efficiency 139 114 5 258New Building Efficiency 0 0 0 0PGE Utility Transition (Commercial) 310 0 0 310Pacific Power Utility Transition (Commercial) 0 23 0 23NEEA (Commercial) N/A N/A N/A 0Production Efficiency 2 2 0 4PGE Utility Transition (Industrial) 13 0 0 13Pacific Power Utility Transition (Industrial) 0 27 0 27

Commercial & IndustrialNEEA (Industrial) N/A N/A N/A 0Solar Thermal 0 0 0.0 0

Energy Efficiency SavingsTotal Energy Efficiency Programs 9,158 3,871 3,099 16,128Kettle Foods (Open Solicitation) 1 0 N/A 1Calapooia (Open Solicitation) 0 1 N/A 1Brewery Blocks (Open Solicitation) 1 0 N/A 1Combine Hills (Large Wind) 0 1 N/A 1Solar PV 14 60 N/A 74

Renewables GenerationTotal Renewable Programs 16 62 N/A 78Notes:Green LED Traffic Light pilot program combinedwith LED Traffic Signal program. LED Traffic Signal projects represent individual communities oragencies served. Total 2,386 LED lamps were replaced in 2003.Restaurant Energy Efficiency pilot program and Small-Scale Energy Loan buydown program combined with Building Efficiency.Home Energy Savings projects represent home energy reviews performed, efficient gas furnaces installed, multi-family units treated, and manufacturedhome duct sealings performed.Efficient Home Products projects represent the number of rebates given.All other projects represent distinct retrofit or newconstruction projects performed at individual sites.152003 Pollution OffsetsCombined- All Territorieslbs CO2 lbs SO2 lbs NOxResidential 56,012,962 703 36,765Commercial & Industrial 103,150,745 1,321 60,691Solar Thermal 0 0 0

Energy Efficiency ProgramsTotal Energy Efficiency 159,163,707 2,024 97,457Open Solicitation 158,816 2 104Large Wind 129,323,880 1,623 84,884Solar Renewable 259,506 3 170

Renewable ProgramsTotal Renewables 129,742,201 1,628 85,159Notes:Utility Transition Program savings factored into Residential,Commercial, and Industrial sectors.Emission factors: 1.036 lbs CO2/kWh, 0.013 lbs SO2/kWh, 0.68 lbs NOx/kWh. Source: Phil Carver, Oregon Department of Energy.CO2 = carbon dioxide SO2 = sulphur dioxide NOx = nitrogen oxide162003 Trade Ally Data172003 Participant Data2003 Visits to www.energytrust.org02,0004,0006,0008,00010,000Visits3369 3360 5243 5682 5597 6864 7319 6126 6019 7854 8111 6668Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec2003 Incoming Calls to 1-866-ENTRUST02004006008001,0001,2001,4001,600Calls In0 46 323 525 490 622 1165 1139 1195 1440 1142 1083Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec18Board of DirectorsCurrent December 31, 2003PRESIDENT - Steven Schellis an attorney at Black Helterline whohandles environmental, land use, real estate and construction issues. He servedon the Land Conservation & DevelopmentCommission from 1973-1976 and on the Energy Facility Siting Council from 1990-1998.VICE-PRESIDENT - John Klostermanis vice-president of manufacturing at Rejuvenation Inc., and has been with the company for eight years. Aspart of a state pilot project, he led his company's implementation of an ISO 14001-based energy management system following thesustainabilityprinciples of The Natural Step. He serveson the board of Business for Social Responsibility and is responsible for implementing socially responsiblepolicies and programs at Rejuvenation.SECRETARY – Christine Ervinis President and CEO of the US GreenBuilding Council, a national coalitionof 600 leaders from across the buildingindustry to advance buildings that are environmentally responsible, profitable, andhealthy places to live and work. She servedas assistant secretary forthe 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 1991-93and chaired Barbara Roberts’ Livable Communities Task Force.**Christine resigned in 2004.** **5**TREASURER - Tom Foleyhas over 26 years of experience in the field of energyanalysis and management, including 10 years as manager ofconservation and generating resources analyses for the Northwest Power Planning Council and 10 years at Battelle Northwest. Hepresently runs TomFoley Consultants, which provides resource planningand consultation with utilities throughout the country.Rick Applegateis the superfund coordinator at the City of Portland Bureau ofEnvironmental Services. He has worked for more than 18 years onenergy and environmental issues as an advocate for salmon and their watersheds. Rickwas the fish and wildlife director for theNorthwest PowerPlanning Council from 1987 to 1995. Before that, he was the chair ofthe US Southern Stakeholders Pacific Salmon Treaty Negotiations, a member ofthe Pacific Northwest Comprehensive Energy Review, on the executive committee of For the Sake of Salmon, and on the board of directors for theSustainable Fisheries Foundation. Currently Rick serveson the board of the Pacific Salmon Watershed Fund.**Rick was appointed to a three-year term in 2003.** Jason Eisdorferis legal counsel and energy program director for the Citizen's Utility Board. He served asthe public interest representativeinworksessions of the Oregon Legislature's House Committee on Power Deregulation in 1997, and in 1999 helped author Oregon's electricity industryrestructuring legislation, which passed into law in July 1999. Heis on the executive boards of the Fair and Clean Energy Coalition, the Northwest EnergyCoalition and the Renewable Northwest Project.5Debbie Kitchinwas appointed to a three-year term in 2004. She fillsChristine Ervin’s board position. Rick Applegate succeeded Christine as secretary in 2004.Other new officers in 2004 are: Cheryl Perrin,vice-president; John Klosterman, treasurer.19Julie Hammondis the vice president of operations atSage Insurance Center in Bend. She has over 15 years experience in the insurance industry. Juliecurrently serves on the Safeco Advisory Council and Deschutes United Way. She brings a customerservice orientation, small business perspective andregional representation to Energy Trust program delivery.**Julie was appointed to a three-year term in 2003.**Rick Kroonis the Oregon site corporate services manager for Intel Corporation. His broad responsibilities include utility management andenergyconservation. Prior to moving toOregon in 1992, Rick worked in California and New Mexico. Rick has an MBA in addition to an engineering degreefrom the University of Wisconsin. He also represents Intelon the International SEMATECH facilities council, whose members represent globalsemiconductor manufacturers and scope includes worldwide utility/energy management.Cheryl Perrinis the executive director of Campaign for America, a nonprofitorganization focused on campaignfinance reform. She served asa seniorexecutive officer with Fred Meyer, Inc., for 22 years, where she was responsible for the company's government and political activities, news mediarelations, community and civic activities and environmental programs. She was a commissioner and vice-president of the Port ofPortland, and serves onthe board of STARS, the Willamette River Initiative, the Lewis& Clark 2005 Committee, Portland Public Schools Foundation and the Lewis & ClarkCollege Board of Trustees.John Reynoldsis professor of architecture emeritus at the University of Oregon and has been involved in energy issues in Oregon since 1972,when hewas elected to the Eugene Water and Electric Board. Since then hehas served as the president ofthe Pacific Northwest Solar Energy Association and ofthe subsequent Solar Energy Association of Oregon. He also serves on the Energy Committee of the Building Codes Structures Board.ex-officioJohn Savagerepresents the Oregon Public Utility Commission. Now one of three OPUC commissioners, hejoined the OPUC staff in 2003 as directorof its utility program, after having served as director of theOregon Department of Energy forthe previous decade. He was administrator of theODOE’s policy and planning division from 1987-1993. John received a masters degreein natural resource economics from Oregon State University in1979 and a bachelor of science degree from OSU in 1975.**John assumed his ex-officio position in 2003, replacing Lynn Kittilson, who served from 2001-2003.** Oregon Department of Energy Special AdvisorWilliam Nesmithis the assistant director for conservation at the Oregon Department of Energy. Bill has a master of science degree and over 20yearsexperience in the field of energy efficiency.He has worked as a land use planner for local government, been a program managerwith state government,and served as a public utilities specialistwith the Bonneville Power Administration. Inhis current position he directs energyefficiency and renewableresource programs for Oregon homeowners,businesses, and public institutions that have a combined budget of over $10 million.**Bill was appointed in 2003.** 20Board Development GuidelinesDecember 31, 2003This appendix refers to board developmentguidelines as specified in the Oregon Public Utility Commission grant agreement withthe Energy Trust,section 5, guideline 'k', referring to the Energy Trust retaining the skills, broad representation, and diversity necessary toachieve its mission. Backgroundof board development is provided.The initial board of directors included ninemembers and one non-voting ex-officio member from the OPUC. The nine diverse members represented avariety of perspectives on energy matters combined with business acumen. Of the ninevoting members and one ex-officio member,six providedcollective strength, insights and experiencerelevant to energy policy and planning, program implementation and evaluation, facility siting, consumeradvocacy, renewable energy development and sustainable practices.The remaining four members wereall business community representatives, reflectinga subset of future commercial and industrial program participants. This latter group providedcomplementary skills and financial perspectives asmarketers, 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 businessrepresentatives resigned for personal reasons. A board subcommittee initiated a broad recruitmenteffort to attract new membersand fulfill boarddevelopment guidelines. In addition to soliciting input throughadvisory councils and at publicboard meetings, over a dozen individuals and partnerorganizations were specifically asked toidentify candidates with the following expertise: business experience and "bottom line" financial orientation,industrial/manufacturing expertise, marketing awareness and skills, familiarity withrenewable energy and demographic and geographic representation.At this same time, the board expanded its size to 11 voting members to allow further diversity and representation. Targeted recruitment efforts resultedin the selection of two new board members to fill vacancies, one ofwhom is employed by an international high tech manufacturing firm and brings auser/beneficiary industry perspective. The second member adds analytical skills appropriate to energy efficiency and renewableenergy as well as relevantenergy policy and program implementation experience.Additional candidates were identified andare being pursued from outlying, smaller communities in eastern, central and southernparts of Energy Trustservice territories. In 2003, Julie Hammondwas appointed as a board member, bringinga customer service orientation, small business perspective, andregional representation. Additionally, OPUC Commissioner JohnSavage replaced Lynn Kittilson as the ex-officio board member from the OPUC.The board created an additional non-voting position for an appointee of the Oregon Department of Energy. Bill Nesmith, ODOE Assistant Director forConservation Programs, was appointed to fill this “special advisor” position. The board is currently recruiting to fill remaining vacancies. Anticipatedmembership will provide further geographic and demographic complements to existing members and further expand and reflect the true diversity ofcustomers throughout the service areas.All new board members and ex-officio membersparticipate in an orientation session andare provided board handbooks containinghistoricalinformation, policies, plans, budgets and program descriptions. The majority of board members also participate on the advisorycouncils and board21finance and policy committees. All regular board and advisory council meetings are public, withrelevant information accessiblein advance on the EnergyTrust website. Advisory council and board meetings are well attended, with public comment a standard part of all meetings.In addition, all regular board members complete and sign conflict of interest forms, retained on file and updated annually. Exofficio board members fromthe Oregon Public Utility Commission and the ODOE do not receiveconfidential information. Once a year, board and staff membersjointly participatein 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.222003 Advisory Council Members and MeetingsConservation Advisory CouncilSusan Anderson, Director Energy Office, City of PortlandSteve Bicker, NW NaturalJeff Bissonnette, Fair and Clean Energy CoalitionJulie Brandis, Associated Oregon IndustriesCarol Brown, Portland General ElectricGary Curtis, D&R InternationalThomas Eckhart, UCONS LLCTom Eckman, Northwest Power Planning CouncilTerry Egner, Micro GridJason Eisdorfer, Energy Trust Board of DirectorsJoe Esmonde, International Brotherhood of Electrical WorkersJanet Fairchild, Oregon Public UtilityCommission (replaced Lynn Kittlilson)Margie Gardner, Northwest Energy Efficiency AllianceDon Jones, PacifiCorpKen Keating, Bonneville Power AssociationRick Kroon, Energy Trust Board of DirectorsDean Lemman, North Coast Electric CompanySteve McCoid, Oregon Restaurant AssociationBill Nesmith, Oregon Department of EnergyMat Northway, Eugene Water & Electric BoardSara Patton, Northwest Energy CoalitionStan Price, Northwest Energy Efficiency CouncilJohn Reynolds, Energy Trust Board of Directors2003 Meeting Dates CAC Major Discussion TopicsJanuary 15 NW Natural gas program;industrial process design programFebruary 19 Industrial process design; commercial/industrial new construction initial designMarch 19 New building efficiency program designApril 16 Residential new construction program designMay 14 Residential new construction program design; home energy savings supplemental multi-family fundingJune 19 Nexus home analyzer, trade ally insurance requirements, residential natural gas weatherization program designAugust 13 Gas programs, gas strategicgoals, new residential construction program design, appliances designSeptember 17 Oregon contractor preference, building operations and recommissioning program; efficient home products program design update;new home energy savings program design updateOctober 15 Building operations & recommissioning program; solarprogram consolidation; eligibility of self-generating users forET programsNovember 12 Building ops & recommissioning prgrm; pilot/demo project policy; eligibility of self-generators; strategic plan, 2004 action plan/budgetDecember 8 Building operations & recommissioning program; eligibility of self-generating users;strategic plan and 2004 actionplan and budget23Renewable Resources Advisory CouncilRick Applegate, EnergyTrust Board of DirectorsDoug Boleyn, ConsultantGeorge Darr, Bonneville Power AssociationAngus Duncan, Bonneville Environmental FoundationJanet Fairchild, Oregon Public Utility CommissionKatherine Hardy, OregonDepartment of EnergyThor Hinkley, Portland General ElectricJeff King, Northwest Power Planning CouncilJanet Fairchild, Oregon Public Utility Commission (replaced Lynn Kittilson)Justin Klure, Oregon Department of EnergySonja Ling, Renewable Northwest ProjectJim Maloney, Eugene Water & Electric BoardDavid McClain, Geothermal ConsultantJohn Reynolds, Energy Trust Board of DirectorsVirinder Singh, Pacific PowerLisa Schwartz, Oregon Department of EnergyFrank Vignola, Solar Monitoring, University of OregonAlan Zelenka, Emerald People’s Utility District2003 Meeting Dates RAC Major Discussion TopicsFebruary 19 Solar program outline,solar monitoring project proposalMarch 19 Baseline Oregon Solar Market Assessment, Solar PV program final reviewApril 16 Recruitment of new RAC members, status of PV program training, community initiatives for PV, value of green tags, andupdates onlarge wind contract, Calapooia Crossing, Brewery Blocks kiosk, BPA Brightway and PVMay 14 Community initiatives for PV, PGE RFP participation, solarelectric program launch, green tags, updates on open solicitationproposal process, large wind contract, Calapooia Crossing, Brewery Blocks kiosk, Albany hydro, Appeasay OrchardJune 18 PV program website and information, open solicitation PVproposal, PV demonstration RFP, and updates on large wind contract,PGE RFP board action, BPA Brightway discussions and RAC membership criteriaAugust 20 Strategic planreview, City of Portland open solicitation for small wind, City of Hillsboro open solicitation for micro hydro, newRAC member nomination, updates on PV incentives increase,BPA Brightway and Oregon preference for projects/companiesSeptember 17 Solar program marketing plan review, Oregon preference, green tag policyOctober 15 Board action to increase solar budget, market analysis of solar market motivators, green tag policy discussionNovember 12 2004 renewable budget and strategic/action plan, green tag policy discussion, open solicitation evaluation, solar program update24Energy Trust Service Territory MapWILL BE INCLUDED IN FINAL REPORT25Audited FinancialsWILL BE INCLUDED IN FINAL REPORT