# BURLINGTON

# ELECTRIC

# DEPARTMENT 

# 2012 Energy Efficiency Annual Report

Burlington Electric Department 585 Pine Street • Burlington, VT 05401 Phone 802.658.0300 • Fax 802.865.7400

# Table of Contents
1Introduction & Summary .................................................................................................. 1 2Overview of EEU Services Results................................................................................ 14 2.1Non Resource Acquisition......................................................................................... 18 2.2Business Services Overview...................................................................................... 21 2.2.1 Business New Construction .............................................................................. 26 2.2.2Business Existing Facilities................................................................................ 32 2.3Residential Service Overview................................................................................... 37 2.3.1 Residential New Construction.......................................................................... 41 2.3.2Existing Homes................................................................................................... 47 2.3.3 Retail Products.................................................................................................... 53 3Heating and Process Fuels Activity............................................................................... 58 4Appendix............................................................................................................................ 62 4.1Definition and End Notes.......................................................................................... 62 4.2Design Review Guide ................................................................................................ 65

# List of Tables Table 1: All Business & Residential DSM History....................................................................... 11 Table 2: All Business DSM History.............................................................................................. 12 Table 3: All Residential DSM History .......................................................................................... 13 Table 4: EEU Business & Residential - Total Resource Benefits................................................. 15 Table 5: EEU Business & Residential - Summary........................................................................ 16 Table 6: EEU Business & Residential - End Use Summary ......................................................... 17 Table 7: Non-Resource Acquisition .............................................................................................. 20 Table 8: EEU Business - Total Resource Benefits........................................................................ 23 Table 9: EEU Business - Summary ............................................................................................... 24 Table 10: EEU Business - End-Use Summary .............................................................................. 25 Table 11: EEU Business New Construction - Total Resource Benefits........................................ 29 Table 12: EEU Business New Construction - Summary............................................................... 30 Table 13: EEU Business New Construction - End Use Summary ................................................ 31 Table 14: EEU Business Existing Facilities - Total Resource Benefits ........................................ 34 Table 15: EEU Business Existing Facilities - Summary ............................................................... 35 Table 16: EEU Business Existing Facilities - End Use Summary................................................. 36 Table 17: EEU Residential - Total Resource Benefits .................................................................. 38 Table 18: EEU Residential - Summary ......................................................................................... 39 Table 19: EEU Residential - End Use Summary........................................................................... 40 Table 20: EEU Residential New Construction - Total Resource Benefits .................................... 44 Table 21: EEU Residential New Construction - Summary ........................................................... 45 Table 22: EEU Residential New Construction - End Use Summary............................................. 46 Table 23: EEU Residential Existing Homes - Total Resource Benefits........................................ 50 Table 24: EEU Residential Existing Homes - Summary............................................................... 51 Table 25: EEU Residential Existing Homes - End Use Summary ................................................ 52 Table 26: EEU Efficient Products - Total Resource Benefits ....................................................... 55 Table 27: EEU Efficient Products - Summary .............................................................................. 56 Table 28: EEU Efficient Products - End Use Summary................................................................ 57 Table 29: Heating and Process Fuels Activity............................................................................... 61 Table 30: Summary Report Table Template ................................................................................. 62 Table 31: End Use Report Table Template ................................................................................... 63

# List of Figures Figure 1: Impact of DSM on Total City Energy Use ...................................................................... 3

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# 1 Introduction & Summary 2012 Highlights & Overview
The Burlington Electric Department (BED) is pleased to submit the following report to the Burlington Electric Commission, the Vermont Public Service Board and the Vermont Department of Public Service, summarizing the implementation of energy efficiency programs in the City of Burlington for the year 2012. BED remains committed to offering its customers high quality and affordable energy services and a secure, environmentally sound supply of electricity into the future. Energy efficiency continues to play a major role in achieving this goal, and is the cornerstone of the BED resource acquisition strategy that is described in its 2012 Integrated Resource Plan. Energy efficiency has been clearly shown to be Vermont’s least expensive future energy supply resource over time, and is every day a greater environmental imperative. The Burlington Electric Department is owned by all the citizens of Burlington, who have been unequivocally clear that the option for future supply that they prefer above all others is the pursuit of additional cost-effective energy efficiency. Burlington voters in 1990 approved an 11.3 million dollar bond to fund energy efficiency programs that supported successful program activities through 2002. Since 2003, BED customers (like all other Vermont electric customers) pay a small monthly charge that supports these “Energy Efficiency Utility” programs. When these funding sources are considered along with customers’ direct investment, $42 million has been invested in energy efficiency efforts sponsored by BED over the last 23 years. This is comprised of about $19.3 million spent by BED on all of its energy efficiency efforts during that period, combined with another $22.8 million in matching expenditures by its customers. The willingness to invest their private funds in these investments is a testament to the value that BED customers place on these services.

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### As Figure 1 indicates, the overall effect has been dramatic. Annual electricity consumption in 2012 was about 5.3% lower than in 1989 (it was 4.7% lower in 2011 and 2% greater in 2010 and 2009). During the same 2012 period, statewide use of electricity increased by 8.1%. It is important to recognize that population growth was similar for Burlington and the state (8% v. 11% respectively), but statewide job growth was greater than Burlington’s (17% v. 5%) which can explain some portion of the variance. However, the consistent delivery of affordable energy efficiency services has helped to meet the needs of a growing local economy over the last 23 years with less electricity than was used then! As a result, energy efficiency investments save Burlington consumers about $10 million of retail electric costs annually.
Energy efficiency expenditures are made almost entirely locally, typically in the form of professional services, skilled trades employment, and equipment purchases. Not only isthe value of the City’s building and energy-using equipment improved, but locallyretained dollars are “multiplied” many times over by subsequent consumer spending. Absent these energy efficiency expenditures, these funds would have gone toward the purchase of electricity and enhanced infrastructure to satisfy increased demands on the City’s electrical system. Most of these dollars would have been exported out of state, and many out of the country. Energy Efficiency is a win-win situation for the city of Burlington through increased local economic activity, and through the avoidance of increasingly costly electricity purchases, their associated infrastructure growth and capital expenses, and their environmental impacts.

### Figure1: Impact of DSM on Total City Energy Use

During 2012alone, BED saved measures installed, which will result in 7 installed measures (2012measures have a weighted average lifetime of equivalent to providing ener for12years. During 2012, total BED program spending was $ customers spent an additional $1, investments in their homes an Harder to quantify, but of increasing importance to the ratepayers of Burlington are the environmental impacts avoided by decreasing the need for electricity. Thanks to the energy savings (6,428MWh) generated by energy efficiency programs in Burlington will have avoided the release of Considering the difficult economic conditions our customers have been experiencing over the pastseveralyears,BED is

200 250 300 350 400 450 500

19791981198319851987 

### Gigawatt-hours 

### City Energy Use City Energy Use Without DSM

This chart demonstrates the impact BED's energy efficiency efforts have had on annual energy consumption in Burlington. The area between the purple and blue lines represents the amount of energy saved by Burlington consumers from 1989 through 2012 from energy efficiency implementation. 

### : Impact of DSM on Total City Energy Use

alone, BED saved6,428Megawatt hours (MWh) of energy from efficiency measures installed, which will result in 75,040MWh of savings over the useful life of the measures have a weighted average lifetime of12years). This is equivalent to providing energy to about 1,250average Burlington residential customers , total BED program spending was $1,756,743and participating customers spent an additional $1,968,113of their own to fund energy efficiency investments in their homes and facilities. Harder to quantify, but of increasing importance to the ratepayers of Burlington are the environmental impacts avoided by decreasing the need for electricity. Thanks to the ) generated by energy efficiency programs in201 Burlington will have avoided the release ofabout41,970tons of carbon dioxide (CO2) Considering the difficult economic conditions our customers have been experiencing BED isencouraged that it met90% of savings projections in

1989199119931995199719992001200320052007 

### City Energy Use City Energy Use Without DSM

This chart demonstrates the impact BED's energy efficiency efforts have had on annual energy consumption in Burlington. The area between the purple and blue lines represents the amount of energy saved by Burlington consumers from 1989 through 2012 from energy efficiency



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### Megawatt hours (MWh) of energy from efficiency MWh of savings over the useful life of the years). This is average Burlington residential customers and participating of their own to fund energy efficiency

Harder to quantify, but of increasing importance to the ratepayers of Burlington are the environmental impacts avoided by decreasing the need for electricity. Thanks to the 2012alone, tons of carbon dioxide (CO2)

. Considering the difficult economic conditions our customers have been experiencing % of savings projections in 200720092011 This chart demonstrates the impact BED's energy efficiency efforts have had on annual energy consumption in Burlington. The area between the purple and blue lines represents the amount of

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### 2012. BED projected 7,259 MWh savings and achieved 6,428 MWh. BED’s projected budget for 2012 was $1,879,931 and $1,756,743 was spent, about 6% less than projected. BED’s cost for saved energy was slightly higher than projections. BED estimated it would spend $259 per annualized MWh saved, and instead spent $273 per annualized MWh. BED’s administrative costs as a percentage of total program costs remained consistent with historical performance; about 17% of the budget was used to defray program operation costs. 83% was spent on direct technical assistance and incentives to customers. Annual fluctuations in any energy efficiency program’s performance depend on a variety of human and business cycle dimensions that are hard to quantify and even harder to predict with precision. The decision to move forward with an energy efficiency project is ultimately the individual customer’s. Customers consider a wide variety of factors in their decision-making process, including their perceptions of local and national economic conditions and trends, their availability of funds and competing interests for the use of those funds, fluctuations in their business functions and volumes, and the opinion of off-site consultants and decision makers. The decision to move forward with an energy efficiency project is ultimately the individual customer’s. Given the small size of BED’s system, the loss of only a few new construction projects can have a dramatic impact on its annual budgets and savings estimates. Year-to-year fluctuations in program results reflect the relative unpredictability of energy efficiency program timing, and support the notion thatannualprojections are no more than carefully-crafted estimates. In the long run, the performance of BED's energy efficiency programs continues to meet the expectations laid out in BED’s Integrated Resource Plan of 2012 and prior planning documents dating back more than 20 years. This report includes coverage of BED’s program activities related to the thirteenth year of operation of the State's — and the nation's — first Energy Efficiency Utility (EEU). Statewide energy efficiency programs are today operated by the non-profit service provider “Efficiency Vermont” (EVt). Thanks to a long history of successful program implementation, BED serves as the City’s own EEU and delivers the majority of these

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### programs within the City of Burlington, continuing to build on its past success in helping Burlington’s consumer-owners achieve energy efficient electric use. Since the inception of the EEU concept in 2000, BED has shared planning and program design work with EVt. This relationship has helped to shape a seamless and transparent set of programs to the mutual benefit of both organizations and Vermont ratepayers. BED and EVt annually update a detailed coordination plan that seeks to maximize the benefits of synergism to both organizations. The marketing and outreach power of Efficiency Vermont over the past thirteen years has helped to heighten the awareness of energy efficiency and building performance issues among all Vermonters, including Burlingtonians. BED recognizes that much of its success comes from effective working relationships not only with EVt, but also with its partners Vermont Gas Systems (VGS) and the Champlain Valley Weatherization Service (CVWS). A very cooperative relationship with the VGS has helped to develop a complete suite of thermal energy efficiency measures available to Burlington customers, and VGS’s willingness to work with BED to promote electrical energy efficiency programs to its natural gas customers has been a noteworthy strength of its joint energy efficiency program offerings. BED looks forward to continuing this partnership in 2013 and beyond. CVWS continues to successfully and cooperatively provide a comprehensive set of energy efficiency services to their customer base. BED and VGS will continue to work with CVWS in the coming years to gain more program participation from the always-challenging private landlord rental market, which comprises a large percentage of low-income housing in the Burlington

area. As part of our EEU responsibilities since 2010, the PSB has directed BED to offer technical assistance and incentives for weatherization improvements for BED customers that heat with oil, propane gas and wood (unregulated heating fuels). The program funds come from BED’s direct participation in the ISO-NE Forward Capacity Market and a portion of the statewide RGGI auction funds (FCM /RGGI). Based on Vermont statute, these funds are limited to energy efficiency projects.

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### BED also continues to perform substantial analysis of energy efficiency and demand response impacts on its system as part of the BED Integrated Resource planning and reporting process. BED updates all of its energy efficiency and demand response planning assumptions on a 3-year basis. BED is responsible for reacting with appropriate program design modifications to the changing market conditions that impact customers’ decisions about undertaking energy efficiency upgrades. 

## 2013 Program Development Outlook
The difficult economic conditions that our customers have been facing over the past several years have presented BED with challenges that have required modifications to program incentives in particular to help motivate participation. BED (often in collaboration with EVT) began to increase incentives for mostly commercial custom projects in 2010 to encourage higher levels of overall participation and deeper savings per project. Given the uncertainty of a return to previous market conditions, BED estimates that higher incentives will be necessary in 2013, and potentially beyond, in order to approach meeting its savings targets. BED will continue to test all program design assumptions and pursue all strategies to make programs as cost-effective as possible. However, BED estimates that yield rates will be declining in coming years. Baselines, a term used to describe a state of energy efficient construction required by law, are increasing, due to more stringent state energy codes and federal standards. This results in declining increments of potential savings to pursue through advanced technology upgrades driven by program activities. As a result of changing market conditions, BED performed a great deal of planning and preparation in 2012 that will allow several efforts to begin in earnest in 2013 and beyond including: the Property Assessed Clean Energy (PACE) pilot program for residential customers, UVM’s $13 Million dollar Green Revolving Loan fund for energy efficiency upgrades and BED’s grant from the U.S. Depart of Commerce Economic Development Agency (EDA) that allows BED to offer on-the-bill financing for eligible electric energy efficiency measures to commercial customers.

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### For a number of years BED has investigated financing options for customers to help them more easily participate in our energy efficiency programs and comprehensively treat their energy footprint, including electric energy efficiency, fossil-fuel based weatherization, and the installation of renewable generation. BED has heard from its customers that, while they appreciate the technical assistance and cash incentives from BED to make electrical efficiency improvements, up-front capital is not always available to move forward with recommended efficiency projects. BED believes that creative financing tools will help customers get over this hurdle and help BED meet its aggressive energy savings targets. This issue is, of course, not unique to Burlington, and is under active discussion throughout Vermont.BED has tackled a portion of this problem with its recently- announced start of an OnBill financing (OBF) service for business customers to make electric energy efficiency upgrades. A $1 million dollar grant to BED from the U.S. Department of Commerce Economic Development Agency to start a revolving loan fund was made available with the assistance of Senator Sanders and his staff. OBF gives BED’s business customers the option to finance electric energy efficiency improvements, and repay the loan on the electric bill. This option requires no out-of-pocket expense and the loans can be structured so that the monthly energy savings are greater than the monthly loan payment, creating an immediate positive cash flow for the business.
Since 2009, BED has collaborated with Vermont Energy Investment Corporation (VEIC) and a coalition of energy efficiency advocates statewide to launch the PACE program allowing residential customers to finance eligible all-fuels energy efficiency and renewable energy projects and repay the loans through their property tax bills. For a number of administrative, financial and political reasons, PACE has been delayed throughout most of the Vermont, and, for that matter, nationwide. The statutory rulesgoverning Vermont’s PACE opportunity today have limited the program to owneroccupied residential buildings with a $30,000 project maximum and very strict underwriting guidelines.

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### The PSB has recently granted BED’s request to use a portion of its FCM /RGGI dollars ($175,000) to create a pilot PACE loan fund to test whether the PACE model can increase fossil fuel weatherization participation levels among the targeted population. BED has the authority to offer the PACE option to all eligible residential customers that meet the underwriting criteria. BED estimate that somewhat less than 30% of our residential consumers are eligible for the program and this will comprise the target of these efforts. In spite of these limits, the first project is underway in April 2013, and we plan to expand this effort as soon as we are sure the program mechanism is completely ready.
BED is pleased that it has a portion of the financing program capital provision solved, and is actively engaged in identifying the additional funding sources that would allow PACE-eligible customers to pursue eligible renewable energy projects. With this in place, PACE could be a program that would address all of our customers’ energyupgrade issues in one comprehensive financing program. While most energy efficiencybased PACE loan packages will feature a positive cash-flow design, in the case of certain renewable energy options, a small monthly customer subsidy may be required. This aspect is not unlike many “green” pricing products that utilities nationwide have recently offered, in which program participants pay a small premium to purchase renewable energy through their electric energy supplier. BED will continue to refine this effort in 2013. We hope also to offer the repayment of the PACE loans on the BED electric bill, much in the same way as we will for the OBF commercial program. BED is also continuing the focus on summer peak demand. The challenge for BED is to reduce its growing summer air-conditioning peak load, a goal that has increasingly absorbed the attention of BED’s resource planners. In 2012, BED was able to achieve 957 KW of summer coincident-peak demand reduction, about 7% higher than the projected target of 898 KW. Over the 2009-2011 EEU three-year program performance cycle, BED was able to achieve 3,203 KW of summer coincident-peak demand reduction, about 4% higher than the projected target of 3,087 KW. In addition to traditional energy efficiency measures that focus on reducing peak demand, BED initially engaged in 2007 in demand response (DR) efforts supported by

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### the New England Independent System Operator (ISO-NE). ISO-NE offers customers ongoing financial incentives to reduce peak electric use through load curtailment and the use of on-site generation during its peak load periods. BED worked in partnershipwith a demand services provider, EnerNoc, Inc., to help enroll key customers in the ISONE program. To date, this partnership has enrolled 10 BED accounts for about 2.1 MW of potential load reduction capability at peak load hours. New air quality standards may impact the viability of the DR program in the future. BED is also pleased to see a continually growing amount of photo-voltaic (PV) systems in Burlington. Like DR, this technology helps to alleviate the summer peak issues. Currently, there is about 950 KW of installed PV capacity through net-metering, standard offer or direct purchase power agreements. We currently have twenty-five customers taking advantage of BED’s solar rider tariff that was approved by the PSB in November 2011. Advanced metering infrastructure (AMI), smart grid and a new realm of potential customer energy use empowerment tools will be deployed over 2013. BED is excited to explore the extensive possibilities for enhanced interaction with its customers and the potential benefits and capabilities Smart Grid technology will bring them. BED is launching its customer energy education web presentment software (Energy Engage) during the early summer of 2013. This software includes “dashboards” that present energy usage details and energy efficiency- related technical advice and efficiency program opportunities to customers.
Energy Minderis a 3-year experimental collaboration between UVM and BED to integrate a “social networking tool” with BED’s meter data management and web presentment systems. The goal of this experiment is to evaluate the utility of an energy efficiency social network in which behavior is both tracked and driven by interactions (questions and answers) among participants within a web-based social network, without typical utility “expert” intervention.Social networks are known to be an important driver of behavior change. Their advent has had clear and measurable impacts on social behavior, but much of their use is currently limited to leisure activities. Social & peer pressure has been shown

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### to have some impact on energy efficiency behavior, but has not been extensively evaluated as a means of meeting energy efficiency goals. The remaining pages on this report provide details on BED’s delivery of the following EEU services in 2012:

Business New Construction

Business Existing Facilities

Residential New Construction

Existing Homes

Efficient Products

Heating and Process Fuels (Residential and Commercial)11 

### Table 1: All Business & Residential DSM History* -------- Participants -------- ------------------------------------------ Costs ----------------------------------------------- -------------------- Savings -------------------- Admin ServicesIncentiveEvaluation ParticipantProgram MwhLifetimeWinterSummer Total Mwh Kw Kw 1991 391 $356,563 $0 $273,437 $6,015 $1,091,190 $1,727,205 3,703 52,103 1,224 0 1992 330 $334,066 $0 $264,615 $14,711 $1,104,050 $1,717,442 3,595 72,723 1,385 0 1993 1,343 $344,326 $0 $501,991 $107,646 $2,052,045 $3,006,008 9,198 133,079 2,634 0 1994 734 $367,600 $0 $197,054 $46,172 $927,802 $1,538,628 3,304 32,558 991 0 1995 827 $255,770 $0 $149,865 $16,666 $1,584,811 $2,007,112 6,764 31,402 1,650 0 1996 774 $215,329 $0 $118,006 $44,318 $500,363 $878,016 2,285 38,654 0 358 1997 735 $143,184 $0 $122,189 $6,011 $848,380 $1,119,764 2,665 39,091 0 714 1998 692 $204,588 $0 $107,140 $353 $731,707 $1,043,788 3,202 43,971 0 822 1999 675 $214,782 $0 $101,224 $1,529 $331,985 $649,520 1,300 14,174 0 358 2000 1,364 $334,762 $97,067 $148,162 $0 $761,673 $1,341,664 3,130 37,211 443 387 2001 1,410 $425,123 $129,955 $208,178 $59,637 $609,115 $1,432,008 3,094 41,258 398 341 2002 1,824 $469,263 $192,143 $407,057 $2,352 $1,178,695 $2,249,510 4,438 63,159 444 520 2003 1,897 $305,283 $365,691 $236,762 $19,006 $538,589 $1,465,331 3,346 56,332 346 361 2004 1,484 $253,037 $302,017 $271,856 $19,067 $638,819 $1,484,796 3,500 46,856 625 557 2005 1,977 $242,385 $351,009 $260,806 $5,904 $970,437 $1,830,541 4,948 69,570 630 630 2006 2,188 $221,862 $352,886 $381,706 $42,057 $702,575 $1,701,086 6,254 83,951 813 891 2007 2,045 $255,856 $375,480 $441,352 $52,025 $1,353,651 $2,478,364 9,679 128,022 1,206 1,158 2008 6,392 $447,867 $412,037 $578,245 $65,159 $1,187,671 $2,690,979 7,299 72,402 1,178 889 2009 1,181 $317,257 $371,233 $452,901 $67,667 $1,959,977 $3,169,035 5,679 64,416 765 811 2010 1,638 $378,153 $339,569$1,102,597 $54,283 $781,528 $2,656,130 6,492 75,954 1,223 1,148 2011 1,027 $310,536 $381,043$1,372,682 $69,742 $1,020,842 $3,154,845 7,191 68,153 1,333 1,000 2012 1,244 $296,104 $425,616$1,035,051 $63,671 $1,968,113 $3,788,555 6,428 75,050 1,118 957 Total 32,172 $6,693,696$4,095,746$8,732,876 $763,991$22,844,018$43,130,327 107,4941,340,08918,406 11,903 (*Note: All tables in this report reflect a reduction in MWh savings claims as a result of the final VT-DPS annual savings verification process).12 

### Table 2: All Business DSM History -------- Participants -------- ------------------------------------------ Costs ----------------------------------------------- -------------------- Savings -------------------- Admin ServicesIncentiveEvaluation ParticipantProgram MwhLifetimeWinterSummer Total Mwh Kw Kw 1991 3 $130,784 $0 $1,849 $0 $2,157 $134,790 31 93 30 0 1992 16 $149,138 $0 $119,535 $4,063 $454,104 $726,840 246 24,388 227 0 1993 164 $162,366 $0 $305,473 $35,559 $1,308,524 $1,811,922 5,587 72,218 1,421 0 1994 104 $238,153 $0 $163,733 $21,690 $630,639 $1,054,215 2,242 14,970 626 0 1995 163 $199,835 $0 $142,342 $9,480 $1,368,954 $1,720,611 6,137 21,386 1,615 0 1996 151 $151,409 $0 $50,423 $28,498 $355,217 $585,547 1,233 16,150 0 334 1997 160 $78,321 $0 $96,959 $5,612 $757,774 $938,666 2,300 33,565 0 669 1998 164 $141,258 $0 $65,048 $50 $615,144 $821,500 2,767 37,930 0 734 1999 162 $150,772 $0 $71,501 $0 $270,056 $492,329 1,051 10,895 0 338 2000 145 $176,552 $56,070 $80,108 $0 $613,597 $926,327 2,438 28,712 309 334 2001 127 $255,082 $99,310 $84,729 $43,248 $384,763 $867,132 2,064 26,581 240 240 2002 113 $284,826 $112,447 $238,866 $252 $912,280 $1,548,671 2,888 43,183 224 392 2003 144 $154,937 $243,386 $148,306 $9,503 $254,905 $811,037 2,193 32,975 122 162 2004 142 $115,796 $192,327 $140,234 $3,928 $507,253 $959,538 2,505 35,419 335 394 2005 133 $133,542 $208,860 $202,143 $0 $814,001 $1,358,546 3,751 57,787 342 397 2006 150 $112,917 $240,425 $261,310 $24,533 $575,467 $1,214,652 5,094 73,084 503 652 2007 151 $125,761 $244,030 $280,213 $33,320 $977,132 $1,660,456 6,530 104,174 482 763 2008 115 $113,641 $250,666 $304,252 $43,576 $904,640 $1,616,775 3,264 48,407 386 386 2009 105 $173,789 $224,900 $305,352 $44,608 $1,743,182 $2,491,831 3,781 51,336 336 555 2010 228 $168,765 $249,094 $849,801 $35,630 $458,549 $1,761,839 3,489 52,358 511 673 2011 220 $162,357 $277,034 $972,032 $47,704 $335,095 $1,794,222 2,787 37,950 421 521 2012 323 $153,822 $307,898 $721,047 $49,516 $1,667,503 $2,899,786 4,215 54,786 494 680 Total 3,183 $3,533,823$2,706,447$5,605,256 $440,770$15,910,936$28,197,23266,593 878,347 8,624 8,22413 

### Table 3: All Residential DSM History -------- Participants -------- ------------------------------------------ Costs ----------------------------------------------- -------------------- Savings -------------------- Admin ServicesIncentiveEvaluation ParticipantProgram MwhLifetimeWinterSummer Total Mwh Kw Kw 1991 388 $225,779 $0 $271,588 $6,015 $1,089,033 $1,592,415 3,672 52,010 1,194 0 1992 314 $184,928 $0 $145,080 $10,648 $649,946 $990,602 3,349 48,335 1,158 0 1993 1,179 $181,960 $0 $196,518 $72,087 $743,521 $1,194,086 3,611 60,861 1,213 0 1994 630 $129,447 $0 $33,321 $24,482 $297,163 $484,413 1,062 17,588 365 0 1995 664 $55,935 $0 $7,523 $7,186 $215,857 $286,501 627 10,016 35 0 1996 623 $63,920 $0 $67,583 $15,820 $145,146 $292,469 1,052 22,504 0 24 1997 575 $64,863 $0 $25,230 $399 $90,606 $181,098 365 5,526 0 45 1998 528 $63,330 $0 $42,092 $303 $116,563 $222,288 435 6,041 0 88 1999 513 $64,010 $0 $29,723 $1,529 $61,929 $157,191 249 3,279 0 20 2000 1,219 $158,210 $40,997 $68,054 $0 $148,076 $415,337 692 8,499 134 53 2001 1,283 $170,041 $30,645 $123,449 $16,389 $224,352 $564,876 1,030 14,677 158 101 2002 1,711 $184,437 $79,696 $168,191 $2,100 $266,415 $700,839 1,550 19,976 220 128 2003 1,753 $150,346 $122,305 $88,456 $9,503 $283,684 $654,294 1,153 23,357 224 199 2004 1,342 $137,241 $109,690 $131,622 $15,139 $131,566 $525,258 995 11,437 290 163 2005 1,844 $108,843 $142,149 $58,663 $5,904 $156,436 $471,995 1,197 11,783 288 233 2006 2,038 $108,945 $112,461 $120,396 $17,524 $127,108 $486,434 1,160 10,867 310 239 2007 1,894 $130,095 $131,450 $161,139 $18,705 $376,519 $817,908 3,149 23,848 724 395 2008 6,277 $334,226 $161,371 $273,993 $21,583 $283,031 $1,074,204 4,035 23,995 792 503 2009 1,076 $143,468 $146,333 $147,549 $23,059 $216,795 $677,204 1,898 13,080 429 256 2010 1,410 $209,388 $90,475 $252,796 $18,653 $322,979 $894,291 3,003 23,596 712 475 2011 807 $148,179 $104,009 $400,650 $22,038 $685,747 $1,360,623 4,404 30,203 912 479 2012 921 $142,282 $117,718 $314,004 $14,155 $300,610 $888,769 2,213 20,264 624 277 Total 28,989 $3,159,873$1,389,299$3,127,620 $323,221 $6,933,082$14,933,09540,901 461,742 9,782 3,679

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# 2 Overview of EEU Services Results
Similar to 2011 with the slower economic conditions, 2012 proved to be a challenge for achieving savings goals in all markets but overall we achieved about 90% of the total annual MWh goal and 107% of the summer coincident –peak KW goal. BED projected 7,259 annualized MWh savings and achieved 6,427 annualized MWh, 90% of the MWh annual goal. BED projected 898 coincident-peak summer KW savings and achieved 957 KW, 107% of the annual summer goal. BED spent $1,756,743 in 2012, which is about 6% less than the projected budget of $1,879,931. In total, BED’s EEU Services implementation saved 6,427 MWh of energy annually from installed measures that will result in 75,040 MWh savings over the equipment's useful life; 2012 measures have a weighted lifetime of 12 years. In the first thirteen years of the Vermont Energy Efficiency Utility both organizations have exceeded savings estimates in most years and have done so at a lower cost per MWh than anticipated. Energy efficiency is now being delivered at a total utility cost of about $.03 per kilowatt-hour statewide. When compared with other energy sources, energy efficiency remains the state’s best bargain for future supply and the expenditures stay largely in the Vermont economy. Avoiding electric generation also avoids the associated air emissions and other environmental impacts that impact Vermont and the region.

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### Table 4: EEU Business & Residential - Total Resource Benefits



## Avoided costs of Electricity $8,743,732.50 Fossil Fuel Savings $374,645.50 Water Savings $708,712.85 TRB Total $9,827,090.62

Annualized Lifetime Meter MWh 6,310 71,711 Generation MWh 6,427 75,041 Meter Demand Kw 3,758 38,010 Generation Peak Summer Kw 957 11,206 Generation Peak Winter Kw 1,118 11,886 Water Savings 7,421 79,457 Fuel Increase 991 35,031 O+M Savings $343,761 $2,786,916

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### Table 5: EEU Business & Residential - Summary Prior Year Current Program 2011 2012 to date Participants 1,067 1,387 23,815

--- Program Costs --- BED Administration Costs General $249,867 $250,020 $3,625,441 Implemntation $3,853 $18,547 $1,970,667 Planning $11,166 $1,650 $106,711 Marketing $39,426 $25,860 $773,098 IT $6,224 $0 $211,957 $310,537 $296,077 $6,687,875 BED Service Costs Participants $378,664 $425,616 $4,081,329 Trade Allies $0 $0 $11,761 $378,664 $425,616 $4,093,090 BED Incentive Costs Participants $1,302,846 $1,032,200 $8,676,636 Trade Allies $9,697 $2,850 $51,229 $1,312,543 $1,035,050 $8,727,865 BED Total Costs $2,001,743 $1,756,743 $19,508,830 Evaluation Costs $69,651 $63,671 $763,900 Participant Costs $936,239 $1,968,114 $22,761,775 Total Program Costs $3,007,633 $3,788,527 $43,034,505
--- Benefits --- Annualized mWh 7,208 6,428 107,512 Lifetime mWh 68,153 75,040 1,340,070 Winter peak Kw 1,333 1,118 18,405 Summer Peak Kw 1,100 957 12,002 mWh / Participant 7 5 5 Weighted Lifetime 9 12 1217 

### Table 6: EEU Business & Residential - End Use Summary Description Participants Gross NetLifetime Winter Summer Mwh Mwh Net Net Kw Net Kw MMBTUCCF Air Conditioning 212 200.38 184.68 2,804.71 12.98 97.68 2,373.25 0.00 Clothes Drying 13 70.97 79.38 1,111.28 9.34 7.04 -1,368.45 0.00 Clothes Washing 326 55.51 70.71 989.98 9.87 7.44 49.49 2,515.60 Consumer Electronics 1892 174.53 199.60 1,113.05 23.71 18.43 0.00 0.00 Dishwashing 9 0.28 0.32 4.11 0.04 0.02 1.08 10.35 Hot Water 197 139.42 85.73 1,071.76 36.65 18.78 362.68 4,794.80 HVAC 7 118.27 133.72 2,005.87 1.07 51.15 0.00 0.00 Lighting 1953 4,340.46 4,327.80 40,381.26 875.02 611.37 -2,022.86 0.00 Motors 2 28.29 31.84 477.60 0.00 0.00 0.00 0.00 Other 1 4.94 4.20 42.03 0.82 1.51 0.00 0.00 Other Efficiency 1 0.04 0.03 0.25 0.00 0.01 0.00 0.00 Refrigeration 292 79.01 87.84 1,403.40 11.65 10.00 1.47 9.40 Space Heating 24 62.65 66.43 1,071.55 20.55 0.83 -162.74 0.00 Ventilation 158 1,034.90 1,155.18 22,563.86 116.58 133.20 1,737.90 0.00 Total 6,309.64 6,427.46 75,040.70 1,118.29 957.45 971.82 7,330.15

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# 2.1 Non Resource Acquisition The following section highlights BED’s Non Resource Acquisition (NRA) activities for 2012. NRA activities are those that do not directly achieve immediate energy savings butare essential to the operation and administration of BED’s EEU services and to the longterm success of future efficiency savings and innovation. The NRA categories were developed collaboratively with the PSD and EVT as part of the Demand Resource Plan Process and approved by the Public Service Board.
BED NRA activities include: education, smart grid and AMI, applied research and development, planning and reporting, evaluation, policy and public affairs, information technology and general administration.

Education- This category captures BED’s work throughout the year on general energy efficiency education that is geared toward building awareness that leads customers to take action to reduce energy use through efficiency or conservation. BED provides education to – builders and contractors, real estate professionals, K-12 students and teachers, college and universities and the general public.
Advanced Metering Infrastructure (AMI)- Smart Grid- Advanced metering infrastructure (AMI), smart grid and a new realm of potential customer energy use empowerment tools are being deployed over 2013 in most of Vermont. BED is excited to explore the extensive possibilities for enhanced interaction with its customers and the potential benefits and capabilities AMI technology will bring them.
Applied Research and Development- This work includes BED’s collaboration with EVT or other entities on applied research and development activities designed to optimize the creation of cost

‐effective solutions to meeting BED’s long

‐term resource acquisition goals.

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### The main focus of applied R&D is in the following three areas:

• Field

‐testing new implementation strategies such as social networking • Technology demonstrations • Research of emerging technologies and innovative efficiency implementation

strategies Planning and Reporting - To help keep the Vermont Public Service Board, the Department of Public Service, and other stakeholders, informed about BED’s EEU activities, BED submits monthly, quarterly, and annual reports and an annual plan to the Board and DPS.

Evaluation- Determining the accuracy of BED’s savings claims, evaluation is a critical aspect of BED’s responsibilities as an EEU to Burlington rate payers. There are several evaluation activities that BED participates in to help BED continually improve savings quantification methods.
Policy and Public Affairs- This NRA activity captures BED’s participation in discussions about energy efficiency and EEU related issues that typically occur throughout the year with regulators and other stakeholders.
Information Technology (IT)-BED’s on-going IT initiative mainly consists of continuing the support of and improvement to the DSM database system for the collection and processing of project data and program information critical to tracking, reporting and planning functions. There is a fairly regular need to alter measure savings characterization, existing tools or add new tools and functionality to the system which helps us to better understand and respond to changes in the Burlington marketplace.

Administration-This NRA category captures BED’s annual activities and costs for the overall management of EEU programs not specific to the individual programs and includes: general staff meetings, coordination of program implementation across all program functions and managing and monitoring overall performance and spending.

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### Table 7: Non-Resource Acquisition
Program Year to Date CostsAnnual Budget % of Annual Budget Education and Training $34,094 $30,401 112% Smart Grid and AMI $4,765 $42,312 11% Applied R & D $3,978 $7,000 57% Planning and Reporting $22,442 $30,612 73% Evaluation $24,753 $27,327 91% Policy and Public Affairs $10,883 $12,352 88% Information Technology $22,408 $23,287 96% General Administration $26,017 $23,990 108% Total $149,340 $197,281 76%

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# 2.2 Business Services Overview This section of the report contains information on BED's Business EEU Services: Business New Construction and Business Existing Facilities (Market Opportunities & Retrofit). Overall, 2012 results in business services exceeded savings projections. BED projected 4,068 megawatt-hour (MWh) savings in 2012 while achieving actual annual energy savings of 4,215 MWh, 4% over projections. BED’s cost to deliver EEU business services in 2012 was $1,182,768, below the budgeted amount of $1,357, 770 by 13%.
Considering the weak national and statewide economic conditions over the past several years, the 2009-2011 EEU performance period results were relatively positive as BED achieved 92% of the three-year MWh goal and exceeded the summer cpKW goal by 7%. The positive savings results in 2012 indicate that the economy may be improving in the greater Burlington region. It is often difficult to forecast savings and expenses in the C&I sector in Burlington. This is due to the potential for completion of a few large unexpected projects by one or two customers, dramatically exceeding projections and budgets. On the other hand, savings goals may just as unpredictably be missed due to delays or cancellations of planned significant projects. As we look at the 2013-2014 period, commercial lighting technologies continue toimprove. Higher quality LED products are becoming more widely available and costeffective wireless lighting control systems are also emerging. BED will also continue field testing of acontinuous building monitoringmodel to help determine implementation costs and potential energy savings. The long term goal is to ensure that buildings continue to operate in an energy efficient mode long after the final building functional testing is completed and the contractors have left. A tool that helps to ensure the persistence of the energy savings over the life of the equipment is worth exploring.
It is not uncommon to find larger commercial buildings that suffer from energy performance issues that could have been quickly resolved if the building had the correct

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### automated processes in place to monitor energy usage trends, equipment failures or operator errors made to the energy management system. Often building operators, in an attempt to balance occupant comfort issues negatively impact energy performance. The correct set-up and monitoring of the building energy management system could help to optimize the balance between occupant comfort and energy performance.
It is an open question as to whether or notcontinuous building monitoringcould be developed into a measure to claim savings. However, even if a savings methodology cannot be developed, there is great value in understanding the process better to be able to inform customers of the value and for BED to have a better understanding of the persistence of savings over time.
The model is based on having a skilled entity monitor energy data (often the same 5 minute interval data being collected for the DR programs) from selected electrical meters, or building energy management systems, to help facility managers more promptly and accurately look at energy usage and trends. Key features include – benchmarking, load shedding, monthly energy analysis, real-time energy alerts and alarms. The potential is to help reduce demand and find low-cost/no-cost opportunities to shed usage in areas that may be using excessive electricity and to monitor usage to ensure the savings stay in place.

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### Table 8: EEU Business - Total Resource Benefits



## Avoided costs of Electricity $5,627,599.43 Fossil Fuel Savings $627,868.02 Water Savings $0.00 TRB Total $6,255,467.35

Annualized Lifetime Meter MWh 3,761 49,093 Generation MWh 4,215 54,776 Meter Demand Kw 966 12,001 Generation Peak Summer Kw 680 8,859 Generation Peak Winter Kw 494 6,317 Water Savings 0 0 Fuel Increase 2,575 56,711 O+M Savings $221,725 $1,908,345

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### Table 9: EEU Business - Summary Prior Year Current Program 2011 2012 to date Participants 221 323 1,518

--- Program Costs --- BED Administration Costs General $139,689 $122,413 $1,872,028 Implemntation $1,301 $13,880 $1,234,559 Planning $6,646 $834 $62,003 Marketing $10,457 $16,695 $249,926 IT $4,172 $0 $110,564 $162,266 $153,822 $3,529,080 BED Service Costs Participants $275,135 $307,899 $2,697,491 Trade Allies $0 $0 $6,780 $275,135 $307,899 $2,704,271 BED Incentive Costs Participants $991,285 $719,997 $5,754,385 Trade Allies $7,790 $1,050 $18,708 $999,075 $721,047 $5,773,093 BED Total Costs $1,436,475 $1,182,767 $12,006,444 Evaluation Costs $46,330 $49,516 $439,396 Participant Costs $318,764 $1,667,503 $14,933,120 Total Program Costs $1,801,570 $2,899,786 $27,378,960
--- Benefits --- Annualized mWh 2,804 4,215 66,610 Lifetime mWh 37,950 54,776 878,328 Winter peak Kw 421 494 8,623 Summer Peak Kw 521 680 8,223 mWh / Participant 13 13 44 Weighted Lifetime 14 13 1325 

### Table 10: EEU Business - End-Use Summary Description Participants Gross NetLifetime Winter Summer Mwh Mwh Net Net Kw Net Kw MMBTUCCF Air Conditioning 23 181.06 170.98 2,557.19 8.86 92.88 2,373.25 0.00 Hot Water 1 2.36 2.66 2.66 0.00 0.00 0.00 0.00 HVAC 7 118.27 133.72 2,005.87 1.07 51.15 0.00 0.00 Lighting 803 2,355.12 2,678.60 26,475.95 353.77 403.03 -1,462.91 0.00 Motors 2 28.29 31.84 477.60 0.00 0.00 0.00 0.00 Other 1 4.94 4.20 42.03 0.82 1.51 0.00 0.00 Other Efficiency 1 0.04 0.03 0.25 0.00 0.01 0.00 0.00 Refrigeration 12 19.28 20.61 262.74 3.80 1.83 0.00 0.00 Space Heating 2 46.20 49.92 748.74 12.98 0.07 -73.70 0.00 Ventilation 3 1,005.33 1,122.39 22,203.03 112.90 129.48 1,737.90 0.00 Total 3,760.89 4,214.94 54,776.06 494.21 679.95 2,574.54 0.00

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## 2.2.1Business New Construction Program Description This service helps commercial and industrial builders and developers incorporate the most energy efficient products and systems possible when building or renovating. It is designed to help customers exceed the City of Burlington's required Guidelines for Energy Efficient Construction (which adopted the statewide CBES energy code as of January 1, 2007). By working directly and early in the process with designers and owners, BED assists in the choice of energy efficient systems and construction techniques that meet business and energy needs. The program offers financial incentives for the installation of cost effective efficiency measures. Eligible participants gain technical assistance, verification services and financial incentives to help with efficient equipment costs. BED's Business New Construction service addresses all energy (especially electricity) consuming equipment,components or practices, including motors, lighting, heating, ventilation, airconditioning (HVAC) and control packages. Natural gas is almost universally available in Burlington. To insure comprehensiveness in building and system designs, BED coordinates with Vermont Gas Systems (VGS) on all projects. The two utilities notify each other when projects are identified or when major changes are considered by the developers or the design teams. This partnership is mutually beneficial to both organizations and the ratepayers. BED maximizes the adoption of energy efficient systems and techniques through proactive outreach and recruitment. As both an electric distribution utility and a municipal department with a role in the City’s design review process, BED is in a unique position to identify new construction and major renovation before significant design efforts begin. BED coordinates this effort with other city agencies including the city’s Planning & Zoning Department and its Department of Public Works. See the Design Review Guide (Attachment A) for an example of our coordinated efforts.

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### BED continues to support enforcement and provide administration of the Guidelines for Energy Efficient Construction for the City of Burlington, VT (adopted CBES), the energy code for all new construction and renovation in the City. The benefits of the Business New Construction program have evolved into a very important facet of the city’s economic development efforts. Because BED is involved in the very earliest stages of project development, the benefits of energy efficiency are packaged along with other attractive elements that entice businesses to locate facilities in the city, enhancing employment growth and economic development in Burlington.


## Project Highlights The annualized megawatt-hour (MWh) savings for 2012 were 505, about 15% higher than the projection of 439 MWh. Total BED program costs were $245,377, 26% greater than the budgeted amount of $193,977.
2012 saw a slight improvement in the economy and construction permits. As we noted in recent Annual Reports, the poor economy dramatically impacted new construction starts. The expansion and renovation of the Community Health Center, on Riverside Avenue, was the largest completed project in 2012 followed by the renovation of UVM’s Aiken building and the expansion at the ECHO aquarium and science center.

Variance Discussion Customers make business decisions independent of BED’s program budgeting efforts, and we fully anticipate that year to year efforts will be “lumpy”, and show dramatic swings in performance. Long-term average results are a better indicator of what can be expected on an annual basis than any given year’s data.
Program Changes


## For 2013, BED will continue to advance the “building energy model” approach option for new construction projects. In order to best estimate the energy efficiency potential of a project, building energy modeling software is used to compare the energy performance of

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## a building that meets CBES to a model of the final energy efficient building design. The energy savings claimed for a project is a result of comparing the two building model runs along with final inspection of the buildings. This approach assumes that the efficient model correctly knows the occupancy rates, hours of operation, set-points for temperature, lighting control schedules and plug-loads from various equipment.
BED is initiating a tiered incentive approach that pays part of the incentive at project completion and then the remaining incentives after about one year of comparing actual billing history data to the energy efficient model. It often takes a year or longer for commercial buildings to be fully occupied, equipped and debugged of any performance issues. This approach will allow for more accurate savings claims and ensure that the building operator is encouraged to optimize the performance of the building.

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### Table 11: EEU Business New Construction - Total Resource Benefits



## Avoided costs of Electricity $1,068,907.40 Fossil Fuel Savings $396,356.00 Water Savings $0.00 TRB Total $1,465,263.40

Annualized Lifetime Meter MWh 472 6,789 Generation MWh 505 7,243 Meter Demand Kw 191 2,802 Generation Peak Summer Kw 154 2,288 Generation Peak Winter Kw 59 854 Water Savings 0 0 Fuel Increase 2,290 34,343 O+M Savings $1,962 $29,344

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### Table 12: EEU Business New Construction - Summary Prior Year Current Program 2011 2012 to date Participants 6 15 162

--- Program Costs --- BED Administration Costs General $52,145 $42,635 $317,747 Implemntation $1,222 $0 $126,485 Planning $2,097 $205 $15,847 Marketing $3,306 $8,906 $156,473 IT $1,179 $0 $41,038 $59,949 $51,746 $657,591 BED Service Costs Participants $58,164 $44,906 $818,913 Trade Allies $0 $0 $0 $58,164 $44,906 $818,913 BED Incentive Costs Participants $39,042 $148,724 $1,061,386 Trade Allies $0 $0 $336 $39,042 $148,724 $1,061,722 BED Total Costs $170,155 $245,377 $2,538,225 Evaluation Costs $0 $0 $34,579 Participant Costs $1,598 $367,199 $3,586,389 Total Program Costs $158,753 $612,576 $6,159,193
--- Benefits --- Annualized mWh 148 505 13,725 Lifetime mWh 2,223 7,243 217,931 Winter peak Kw 22 59 1,096 Summer Peak Kw 28 154 1,742 mWh / Participant 25 34 85 Weighted Lifetime 15 14 1631 

### Table 13: EEU Business New Construction - End Use Summary Description Participants Gross NetLifetime Winter Summer Mwh Mwh Net Net Kw Net Kw MMBTUCCF Air Conditioning 1 147.02 137.50 2,062.57 8.36 69.09 2,373.25 0.00 Lighting 16 325.41 367.69 5,180.28 50.97 85.15 -83.72 0.00 Total 472.43 505.20 7,242.86 59.33 154.23 2,289.53 0.00

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## 2.2.2 Business Existing Facilities (Market Opportunities & Retrofit Services)
Program Description Business Existing Facilities, Market Opportunity Service (MOP)targets naturallyoccurring equipment changeovers to secure energy savings in the equipment replacement market. Targeted equipment includes lighting, heating, ventilation, cooling, water heating, refrigeration, motors and drives, controls and industrial process applications. This program offers prescriptive and custom tracks, with technical assistance and financial incentives that encourage the adoption of cost effective, high efficiency alternatives to standard efficiency equipment. BED and EVt offer prescriptive incentives (fixed incentives for specific eligible measures) for building lighting, refrigeration economizers and controls, motors, unitary HVAC equipment and dual enthalpy economizers for unitary HVAC units. BED and EVt also participate jointly in the Northeast Energy Efficiency Partnership to further themarket transformation of motors, lighting and HVAC equipment. Incentives for aboveaverage energy efficient equipment are supplied to wholesalers, contractors, and customers at the time of equipment replacement. Non-prescriptive cost-effective measures or combinations of measures are eligible for custom incentives. Custom incentives are designed to capture as many potential lost opportunity resources as possible, while maximizing program delivery resources. BED staff and trade allies serving Burlington (including: equipment vendors, manufacturers, suppliers, contractors, architects and engineers) market the program to potential participants. As natural gas is the predominant heating fuel in Burlington, BED works closely with Vermont Gas Systems (VGS) to encourage a comprehensive approach to energy savings. BED and VGS staff is committed to bringing appropriate projects to each other’s

### 33 

### attention. This partnership is mutually beneficial to both organizations and our mutual ratepayers. Business Existing Facilities, Retrofit Serviceoffers energy efficiency services that have been provided by BED staff for well almost two decades. Building retrofit entails BED staff and/or trade allies examining customer buildings and systems to identify energy efficiency opportunities for the customer. When promising projects are identified, BED staff prepares analyses for the customer showing the costs and benefits of potential energy efficiency measures. This service is offered to all business customers – from the smallest retail store to the largest commercial and industrial facility. Given BED’s long history of delivering this service, the program has reached a high level of maturity and customer acceptance. Facility managers have learned to rely on the program benefits and the technical assistance offered by BED staff.
Program Highlights The annualized megawatt-hour (MWh) savings for 2012 were 3,710, about 2% higher than the projection of 3,629 MWh. Total BED program costs were $937,971, 19% under the budgeted amount of $1,157,793.
The Business Existing Facilities 2012 End-Use Activity table shows diversity in the end use savings but lighting and controls was once again the leader. Commercial lighting measures are strongly coincident with summer loads and thus provide significant avoided peak energy costs to BED. BED projected 415 coincident-peak KW savings and achieved 526 coincident-peak KW, 27% over the goal for 2012. For the 2009-2011 program EEU performance period, the three-year MWh goals were exceed by 12% and the summer cp-KW goal by 34%.

Variance Discussion Overall, the Business Existing Facilities services performed well in the 2009-2011 performance period considering the weak economy and continued to perform fairly well in 2012. As close to 75% of all kWh sales are to the commercial class these are important

### 34 

### markets to work effectively with and this was one of the main drivers in BED applying for the EDA On-Bill financing grant. Strategies that encourage these customers to pursue energy efficiency improvements are crucial to helping BED meet savings projections in the years to come.

Table 14: EEU Business Existing Facilities - Total Resource Benefits



## Avoided costs of Electricity $4,558,692.03 Fossil Fuel Savings $231,512.02 Water Savings $0.00 TRB Total $4,790,203.95

Annualized Lifetime Meter MWh 3,288 42,305 Generation MWh 3,710 47,533 Meter Demand Kw 776 9,199 Generation Peak Summer Kw 526 6,571 Generation Peak Winter Kw 435 5,462 Water Savings 0 0 Fuel Increase 285 22,368 O+M Savings $219,764 $1,879,001

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### Table 15: EEU Business Existing Facilities - Summary Prior Year Current Program 2011 2012 to date Participants 215 308 1,356

--- Program Costs --- BED Administration Costs General $87,544 $79,777 $1,554,281 Implemntation $79 $13,880 $1,108,074 Planning $4,549 $629 $46,156 Marketing $7,152 $7,790 $93,453 IT $2,993 $0 $69,526 $102,316 $102,076 $2,871,489 BED Service Costs Participants $216,971 $262,992 $1,878,578 Trade Allies $0 $0 $6,780 $216,971 $262,992 $1,885,358 BED Incentive Costs Participants $939,243 $571,273 $4,692,999 Trade Allies $7,790 $1,050 $18,372 $947,033 $572,323 $4,711,371 BED Total Costs $1,266,321 $937,391 $9,468,219 Evaluation Costs $46,330 $49,516 $404,817 Participant Costs $330,166 $1,300,304 $11,346,732 Total Program Costs $1,642,816 $2,287,211 $21,219,767
--- Benefits --- Annualized mWh 2,656 3,710 52,885 Lifetime mWh 35,727 47,533 660,397 Winter peak Kw 399 435 7,527 Summer Peak Kw 493 526 6,481 mWh / Participant 12 12 39 Weighted Lifetime 13 13 1236 

### Table 16: EEU Business Existing Facilities - End Use Summary Description Participants Gross NetLifetime Winter Summer Mwh Mwh Net Net Kw Net Kw MMBTUCCF Air Conditioning 22 34.04 33.47 494.62 0.50 23.79 0.00 0.00 Hot Water 1 2.36 2.66 2.66 0.00 0.00 0.00 0.00 HVAC 7 118.27 133.72 2,005.87 1.07 51.15 0.00 0.00 Lighting 787 2,029.71 2,310.91 21,295.67 302.80 317.88 -1,379.18 0.00 Motors 2 28.29 31.84 477.60 0.00 0.00 0.00 0.00 Other 1 4.94 4.20 42.03 0.82 1.51 0.00 0.00 Other Efficiency 1 0.04 0.03 0.25 0.00 0.01 0.00 0.00 Refrigeration 12 19.28 20.61 262.74 3.80 1.83 0.00 0.00 Space Heating 2 46.20 49.92 748.74 12.98 0.07 -73.70 0.00 Ventilation 3 1,005.33 1,122.39 22,203.03 112.90 129.48 1,737.90 0.00 Total 3,288.46 3,709.74 47,533.20 434.88 525.72 285.02 0.00

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# 2.3 Residential Service Overview This section of the report contains information on BED's Residential EEU Services: Residential New Construction, Existing Homes, Efficient Retail Products and Heating and Process Fuels services. In 2012, BED projected 3,191 annualized MWh residential savings while achieving annual energy savings of 2,213 MWh or 70% of the projected goal. BED’s cost to deliver residential services in 2012 was $573,975 which was 9% over budget for the year’s projected spending of $528,161.
As BED explains in more detail in each program below, there are a number of factors that influence year to year budgets and savings projections in Burlington’s residential markets. The residential class presents particular challenges as about 60% of BED’s residential customers are renters and about 85% of these customers pay their electric and gas heating bills directly. Rental apartments are typically smaller with fewer appliances and lighting opportunities. BED also turns over about 35% of residential accounts each year due to the high percentage of students. About 85% of residential buildings use natural gas for space heating and domestic hot water. BED’s residential consumption is about 24% less than the average Vermont residential customer, 34% less than the average New England residential customer and 55% less than the national average. BED will continue to test all program design assumptions and pursue all strategies to make programs as cost-effective as possible. Development of a PACE financing service can help to encourage some customers to take a more comprehensive approach to improving the energy performance of their buildings. The energy consumption information, and guidance, that will soon be available through BED’s smart grid web presentment tool (Energy Engage) may also help encourage more customers to take steps to reduce usage.

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### Table 17: EEU Residential - Total Resource Benefits



## Avoided costs of Electricity $3,116,133.07 Fossil Fuel Savings ($253,222.52) Water Savings $708,712.85 TRB Total $3,571,623.27

Annualized Lifetime Meter MWh 2,549 22,617 Generation MWh 2,213 20,265 Meter Demand Kw 2,792 26,009 Generation Peak Summer Kw 278 2,347 Generation Peak Winter Kw 624 5,569 Water Savings 7,421 79,457 Fuel Increase -1,584 -21,680 O+M Savings $122,044 $878,625

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### Table 18: EEU Residential - Summary Prior Year Current Program 2011 2012 to date Participants 846 1,064 22,297

--- Program Costs --- BED Administration Costs General $110,178 $127,607 $1,753,413 Implemntation $2,551 $4,668 $736,108 Planning $4,521 $815 $44,709 Marketing $28,969 $9,164 $523,172 IT $2,052 $0 $101,393 $148,271 $142,254 $3,158,794 BED Service Costs Participants $103,529 $117,717 $1,383,838 Trade Allies $0 $0 $4,981 $103,529 $117,717 $1,388,819 BED Incentive Costs Participants $311,561 $312,203 $2,922,251 Trade Allies $1,907 $1,800 $32,521 $313,468 $314,003 $2,954,773 BED Total Costs $565,268 $573,975 $7,502,387 Evaluation Costs $23,321 $14,155 $324,504 Participant Costs $617,474 $300,611 $7,828,655 Total Program Costs $1,206,063 $888,741 $15,655,545
--- Benefits --- Annualized mWh 4,404 2,213 40,902 Lifetime mWh 30,203 20,264 461,742 Winter peak Kw 912 624 9,782 Summer Peak Kw 579 277 3,779 mWh / Participant 5 2 2 Weighted Lifetime 7 9 1140 

### Table 19: EEU Residential - End Use Summary Description Participants Gross NetLifetime Winter Summer Mwh Mwh Net Net Kw Net Kw MMBTUCCF Air Conditioning 189 19.31 13.71 247.51 4.13 4.80 0.00 0.00 Clothes Drying 13 70.97 79.38 1,111.28 9.34 7.04 -144.89 0.00 Clothes Washing 326 55.51 70.71 989.98 9.87 7.44 19.05 2,515.60 Consumer Electronics 1892 174.53 199.60 1,113.05 23.71 18.43 0.00 0.00 Dishwashing 9 0.28 0.32 4.11 0.04 0.02 1.08 10.35 Hot Water 196 137.05 83.07 1,069.10 36.65 18.78 362.68 4,794.80 Lighting 1150 1,985.34 1,649.20 13,905.31 521.25 208.34 1,574.67 0.00 Refrigeration 280 59.74 67.23 1,140.67 7.84 8.17 1.47 9.40 Space Heating 22 16.45 16.51 322.81 7.56 0.76 159.96 0.00 Ventilation 155 29.57 32.80 360.83 3.68 3.72 0.00 0.00 Total 2,548.75 2,212.52 20,264.64 624.08 277.50 1,974.02 7,330.15

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## 2.3.1 Residential New Construction Program Description This service aims to improve the efficiency of all new homes, and buildings undergoingsubstantial renovation. This includes single-family homes, multi-family homes and lowincome multi-family projects. It addresses all major end uses: space heating, water heating, central cooling (if applicable), ventilation, major appliances and lighting for high use areas. Residential New Construction (RNC) encourages builders and consumers to build to the Vermont Energy Star Home standard. This standard specifies that homes meet the Energy Star performance standard (representing over 20% savings in heating, cooling and hot water consumption relative to the Vermont Residential Building Energy Standard (RBES). The Vermont Energy Star Homes (VESH) standard is promoted to developers, architects, builders, building supply centers, equipment suppliers and consumers through a combination of marketing, technical assistance to builders, provision of energy ratings, and a package of incentives for efficient lighting fixtures, major appliances and ventilation equipment. EVt and Vermont Gas Systems continue to do great work over the years promoting VESH which has had direct benefits to BED. As most of the trade allies mentioned above build inside and outside of Burlington it has been helpful to have a joint program with identical participation requirements. BED uses several additional methods to encourage participation in this sometimes difficult to influence market. These include: BED staff attends local monthly Technical Review meetings where all new construction and virtually all substantial renovation projects are introduced to the Burlington Planning and Zoning Department staff as part of the City’s local project approval process. At these meetings BED explains the RNC program to the permit applicant and gives them program literature. BED then forwards the project information toVermont

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### Wise Energy Servicesto follow-up with the customer. For larger multi-family projects BED staff (in partnership with Vermont Gas Systems) work directly with the property

owner.

BED receives monthly “Development Case Load” updates from the Department of Planning and Zoning that track the progress of each of the development projects in Burlington.

New and revised electric service and line extension applications help us track smaller renovation projects that may have bypassed the City’s permit approval process. All “ability to serve” letters from BED include information about energy efficiency services.

BED receives a weekly electronic report from the Department of Public WorksBuilding Inspection Division (DPW) listing all trades permits issued.

The Burlington DPW refers projects to BED to help them ensure compliance with RBES (and CBES) and to assess opportunities for exceeding requirements. DPW requires a compliance memo from BED Energy Services before issuing the building permit.
Program Highlights In 2012, a majority of RNC savings came from three large multi-family affordable housing projects. This is a departure from recent years where a majority of the savings has come from single-family major gut rehabilitation projects
.In recent years, Burlington saw more gut-rehab type of building activity than brand new construction projects. These three projects, along with several others in the permit approval process, suggest that the economy is improving.

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### Variance Discussion The RNC service achieved 237 MWh in annualized electricity savings for the year which was considerably higher than the projected 33 MWh goal. At $112,646, spending was also considerably higher than the projected spending of $59,480.
As BED has reported in previous Annual Reports, RNC is a difficult market to predict year to year as it only takes a few projects in Burlington to adjust savings projections andbudgets dramatically. As BED mentioned in the 2011 Annual report, “residential singlefamily building activity remains slow but multi-family activity is increasing and we have over a 100 units of housing enrolled at this time.” Fortunately, the building owners participated heavily in the program generating strong savings for 2012.
Program Changes In 2013, BED, EVT and VGS will continue to assist the residential market with exceeding RBES and will also promote low-load and net-zero building practices. BED’s residential new construction market is dominated by multi-family structures and most of the single-family work is with gut-rehabilitation projects so we will continue to develop strategies to work effectively with both of these markets.

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### Table 20: EEU Residential New Construction - Total Resource Benefits



## Avoided costs of Electricity $358,665.19 Fossil Fuel Savings ($174,286.35) Water Savings $43,867.55 TRB Total $228,246.40

Annualized Lifetime Meter MWh 215 3,575 Generation MWh 237 3,938 Meter Demand Kw 246 3,915 Generation Peak Summer Kw 15 275 Generation Peak Winter Kw 39 693 Water Savings 366 5,113 Fuel Increase -1,165 -14,571 O+M Savings $1,297 $23,468

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### Table 21: EEU Residential New Construction - Summary Prior Year Current Program 2011 2012 to date Participants 14 52 420

--- Program Costs --- BED Administration Costs General $8,617 $26,753 $206,241 Implemntation $0 $0 $96,638 Planning $262 $132 $11,195 Marketing $1,678 $3,442 $80,325 IT $37 $0 $34,241 $10,594 $30,327 $428,639 BED Service Costs Participants $10,498 $32,457 $440,149 Trade Allies $0 $0 $2,700 $10,498 $32,457 $442,849 BED Incentive Costs Participants $23,182 $49,863 $313,333 Trade Allies $0 $0 $2 $23,182 $49,863 $313,335 BED Total Costs $51,274 $112,646 $1,184,823 Evaluation Costs $4,162 $3,048 $43,318 Participant Costs $1.022 $35,821 $272,625 Total Program Costs $49,459 $151,515 $1,500,766
--- Benefits --- Annualized mWh 15 237 1,189 Lifetime mWh 177 3,938 19,520 Winter peak Kw 4 39 297 Summer Peak Kw 1 15 208 mWh / Participant 1 5 3 Weighted Lifetime 12 17 1646 

### Table 22: EEU Residential New Construction - End Use Summary Description Participants Gross NetLifetime Winter Summer Mwh Mwh Net Net Kw Net Kw MMBTUCCF Air Conditioning 1 0.39 0.46 11.47 0.00 1.87 0.00 0.00 Clothes Drying 5 63.15 70.89 992.49 7.56 5.69 -1,341.81 0.00 Clothes Washing 4 0.91 -0.11 -1.47 -0.06 -0.04 33.49 355.60 Dishwashing 9 0.28 0.32 4.11 0.04 0.02 1.08 10.35 Lighting 56 139.01 152.92 2,702.67 29.00 6.42 -17.86 0.00 Refrigeration 50 9.70 10.92 185.61 1.27 1.33 0.00 0.00 Space Heating 8 1.46 1.73 43.21 0.91 0.00 159.96 0.00 Total 214.90 237.13 3,938.09 38.72 15.29 -1,165.14 365.95

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## 2.3.2 Existing Homes Program Description This service aims to improve the efficiency of all existing residential buildings including low-income single family, market-rate single-family and all multi-family projects (market-rate and low-income). BED offers the same existing homes service as Efficiency Vermont (EVt) and also works closely with Vermont Gas Systems (VGS) and the Champlain Valley Weatherization Service (CVWS) on many of its projects. Low-income buildings are addressed by a partnership with the state’s Low-income Weatherization Assistance Program (WAP). This partnership provides electric efficiency measures (including fuel switching of electric hot water and electric space heating) to Burlington’s low-income electricity consumers. Electrical efficiency measures are delivered to income-eligible electric customers at the time they receive thermal shell, space heating and water heating improvements from CVWS. This service also works closely with high usage households for energy efficiency improvements that can significantly reduce their energy bills. On-site energy audits, customer education, appliance meter loans, technical assistance, project management and cash incentives are all part of this service. In some cases, the high usage is driven by electric domestic hot water and\or electric resistance space heating. Electric space heat and domestic hot water have been rapidly decreasing markets in Burlington but the opportunity to convert to natural gas is available to the owners of some of these housing units, providing significant energy and cost savings. Over the past several years, BED and EVt have been collaborating to work more successfully in the private (market-rate) rental housing market (customers not eligible for low-income energy services) to increase both participation and the depth of savings per participant. Traditionally, renters (60% of Burlington’s residential customers are renters) have not been strong participants and the same holds true for property-owners where the tenants pay the energy bills directly which is the case in about 85% of Burlington’s dwellings.

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### The “Rental Properties Owners” service offers free tank wraps (electric tanks only), pipe insulation, water saving devices, enhanced rebates for the early retirement of eligible refrigerators, incentives for improving mechanical ventilation along with up to fifteen free screw-in CFL’s per apartment. This service provides savings directly to the tenant but also water savings, and potentially maintenance savings via ventilation fans to the property owner. This service allows us the opportunity to develop long-lasting relationships with property-owners to help identify further savings from refrigeration replacements, common area lighting and laundry equipment improvements, weatherization and ventilation.BED continues to offer a robust energy education service for customers that includes onsite energy audits, lending of appliance meters and custom billing history analysis. BED also continues to provide energy efficiency information in a variety of forums. BED staff also visited several classrooms in the Burlington School District to discuss energy efficiency with faculty and schoolchildren. Also, starting in 2009 and continuing today, BED contracted with VGS to install CFL’s and collect potential electrical energy efficiency savings information while performing normal VGS energy audits.
Program Highlights In 2012, 44 fuel switch projects were completed. 35 electric hot water tanks were switched to natural gas, 1 dwelling replaced electric heat with natural gas space heating equipment and 8 electric clothes dryers were switched to natural gas units. 13 customers and their contractors took advantage of rebates for ENERGY STAR furnaces with ECM fans and 5 more customers took advantage of incentives for ENERGY STAR central AC systems. 68 refrigerators were retired early and replaced with ENERGY STAR models, 811 CFL’s were provided and 151 automatically controlled ENERGY STAR bathroom exhaust fan systems were installed.

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### BED and EVt offer incentives to the contractor and the building owner to install this equipment. Vermont Gas Systems offers additional incentives to install high efficiency space and water heating equipment along with thermal shell upgrades.

Variance Discussion The Existing Homes service achieved 230 MWh in annualized electricity savings for the year, about 44% less than the projected 409 MWh. At $234,109 spending was 9% less than BED’s projected spending of $260,325.
It is worth noting that electric resistance space and water heating are disappearing markets (helped by many years of technical assistance incentives from BED to fuel switch to natural gas) in Burlington along with the savings from screw-in CFL’s as the Federal energy standards take effect. In 2012, these measures accounted for about 61% of the total savings. BED will continue to work with EVT and VGS on developing services that leverage as much cost-effective total resource benefit as possible in an increasingly challenging market. The market- rate rental property owner program has been beneficial to program goals as we have been able to access a greater number of rental units. However, the savings per unit are lower when compared to other services such as electric hot water fuel switching to natural gas and the cost per MWh saved is considerably higher. BED will continue with the campaign as about 60% of BED’s residential customers live in rental housing and about 85% pay their electric and heating costs directly. About 90% of BED’s residential rental customers use natural gas for space heating and domestic hot water. We will continue to leverage common area energy savings, building water savings, ice dam and moisture damage solutions for property-owners as part of the service to help develop long-term relationships with building owners.

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### BED will also continue working with UVM’s office of off-campus services. BED and VGS conducted energy workshops for students, staff and faculty living off-campus in 2011 and 2012 they will be offered again in 2013. VGS energy specialists will continue to install CFL’s and collect potential electrical energy efficiency savings information for BED while performing VGS energy audits.

Table 23: EEU Residential Existing Homes - Total Resource Benefits



## Avoided costs of Electricity $531,169.10 Fossil Fuel Savings ($44,426.08) Water Savings $405,490.15 TRB Total $892,233.17

Annualized Lifetime Meter MWh 271 3,466 Generation MWh 230 2,895 Meter Demand Kw 268 3,459 Generation Peak Summer Kw 34 454 Generation Peak Winter Kw 64 836 Water Savings 4,895 44,104 Fuel Increase 108 -4,500 O+M Savings $3,406 $17,423

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### Table 24: EEU Residential Existing Homes - Summary Prior Year Current Program 2011 2012 to date Participants 280 423 7,969

--- Program Costs --- BED Administration Costs General $59,818 $60,547 $1,183,017 Implemntation $2,551 $4,668 $549,214 Planning $3,402 $697 $19,067 Marketing $10,925 $2,029 $307,454 IT $1,986 $0 $45,049 $78,683 $67,940 $2,103,802 BED Service Costs Participants $92,978 $85,196 $622,643 Trade Allies $0 $0 $0 $92,978 $85,196 $622,643 BED Incentive Costs Participants $88,145 $79,173 $1,525,186 Trade Allies $1,907 $1,800 $32,493 $90,052 $80,973 $1,557,679 BED Total Costs $261,712 $234,109 $4,284,124 Evaluation Costs $6,101 $5,180 $194,883 Participant Costs $84,879 $47,746 $4,851,507 Total Program Costs $352,692 $287,036 $9,330,514
--- Benefits --- Annualized mWh 331 230 20,246 Lifetime mWh 4,635 2,895 313,427 Winter peak Kw 134 64 5,572 Summer Peak Kw 55 34 887 mWh / Participant 1 1 3 Weighted Lifetime 14 13 1552 

### Table 25: EEU Residential Existing Homes - End Use Summary Description Participants Gross NetLifetime Winter Summer Mwh Mwh Net Net Kw Net Kw MMBTUCCF Air Conditioning 5 0.47 0.48 7.26 0.00 1.12 0.00 0.00 Clothes Drying 8 7.82 8.48 118.79 1.79 1.35 -26.64 0.00 Hot Water 196 137.05 83.07 1,069.10 36.65 18.78 362.68 4,794.80 Lighting 143 39.20 42.72 254.80 10.05 2.78 0.00 0.00 Refrigeration 64 42.19 47.48 804.97 5.54 5.76 1.47 9.40 Space Heating 14 14.99 14.78 279.60 6.65 0.76 -249.00 0.00 Ventilation 155 29.57 32.80 360.83 3.68 3.72 0.00 0.00 Total 271.29 229.81 2,895.34 64.37 34.28 88.51 4,804.20

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## 2.3.3Retail Products Program Description The Efficient Products Program (EP) aims to increase sales of DOE\EPA ENERGY STAR ®

### qualified lighting products, Compact Fluorescent (CFL) screw-in bulbs, CFL hardwired fixtures, a growing selection of LED screw-in bulbs and fixtures and ENERGY STAR®

### appliances such as clothes washers, refrigerators, freezers, and ceiling fans with lights, room air conditioners, dehumidifiers and televisions. Over recent years, EP also promotes advanced power strips for home entertainment centers, controls for computer internal power supplies and ultra efficient LCD computer monitors. This is accomplished primarily through retail stores with on-site and mail-in consumer rebates, but also by arranging retailer buy-downs and manufacturer mark-downs for products. The program pursues this objective with extensive outreach to retailers, such as efforts to encourage Vermont lighting showrooms to increase the number and variety of energy efficient fixtures stocked and displayed. EP uses a variety of marketing and promotion efforts in addition to its prominently displayed in-store rebate coupons including a catalog, and an on-line purchase web site in order to build consumer awareness and participation in the program.
Program Highlights In 2012 alone, BED customers purchased 47,937 CFL and LED bulbs, 253 CFL lighting fixtures, 200 ENERGY STAR ®

### clothes washers, 46 ENERGY STAR ®

### refrigerators, 41 ENERGY STAR®

### dehumidifiers, 179 internal power supply units, 444 ultra efficient LCD computers monitors and 906 efficient televisions.

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### Variance Discussion Savings of 1,746 annualized MWh was under the projection of 2,749 annualized MWh for 2013 by 37%. Annual expenditures were $227,220 which is about 9% higher than of the projected budget of $208,355.
BED believes that the large disparity in savings and costs from year to year in this program can be attributed to a number of factors including: economic conditions for customers, the high percentage of renters (60%) in Burlington where specialty bulb and appliance opportunities are more limited and the decrease in savings claims for CFL measures due to gross to net adjustments in the Technical Resource Manual calculations.
Program Changes 2013 will see a continued focus on promoting appliances that are the most efficient within the ENERGY STAR rating and a

## continued focus on promoting specialty bulbs and emerging LED products.

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### Table 26: EEU Efficient Products - Total Resource Benefits



## Avoided costs of Electricity $2,226,298.77 Fossil Fuel Savings ($34,510.09) Water Savings $259,355.14 TRB Total $2,451,143.70

Annualized Lifetime Meter MWh 2,063 15,577 Generation MWh 1,746 13,431 Meter Demand Kw 2,278 18,635 Generation Peak Summer Kw 228 1,619 Generation Peak Winter Kw 521 4,041 Water Savings 2,160 30,240 Fuel Increase -526 -2,609 O+M Savings $117,341 $837,734

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### Table 27: EEU Efficient Products - Summary Prior Year Current Program 2011 2012 to date Participants 552 589 13,908

--- Program Costs --- BED Administration Costs General $41,742 $40,307 $364,155 Implemntation $0 $0 $90,256 Planning $857 ($13) $14,447 Marketing $16,365 $3,694 $135,393 IT $29 $0 $22,103 $58,994 $43,988 $626,353 BED Service Costs Participants $53 $65 $321,047 Trade Allies $0 $0 $2,281 $53 $65 $323,328 BED Incentive Costs Participants $193,235 $183,168 $1,083,733 Trade Allies $0 $0 $26 $193,235 $183,168 $1,083,759 BED Total Costs $252,281 $227,220 $2,033,440 Evaluation Costs $13,058 $5,927 $86,303 Participant Costs $538,574 $217,043 $2,704,523 Total Program Costs $803,913 $450,190 $4,824,265
--- Benefits --- Annualized mWh 4,058 1,746 19,467 Lifetime mWh 25,391 13,431 128,795 Winter peak Kw 774 521 3,913 Summer Peak Kw 523 228 2,684 mWh / Participant 7 3 1 Weighted Lifetime 6 8 757 

### Table 28: EEU Efficient Products - End Use Summary Description Participants Gross NetLifetime Winter Summer Mwh Mwh Net Net Kw Net Kw MMBTUCCF Air Conditioning 183 18.45 12.77 228.78 4.13 1.80 0.00 0.00 Clothes Washing 322 54.60 70.82 991.45 9.93 7.48 16.00 2,160.00 Consumer Electronics 1892 174.53 199.60 1,113.05 23.71 18.43 0.00 0.00 Lighting 951 1,807.13 1,453.56 10,947.83 482.20 199.14 -542.10 0.00 Refrigeration 166 7.85 8.83 150.09 1.03 1.08 0.00 0.00 Total 2,062.56 1,745.58 13,431.21 520.99 227.93 -526.10 2,160.00

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## 3Heating and Process Fuels Activity (Residential and Commercial)
Program Description The PSB has charged the EEU’s with providing thermal shell and heating system energy efficiency services to customers who use unregulated fossil fuel for their heating energy needs. This service is funded by revenues from the ISO-NE Forward Capacity Market (FCM) and Regional Greenhouse Gas Initiative (RGGI) auction proceeds. BED and EVT established a working partnership in early 2009 that serves BED’s HPF customers. BED customers have access to the same services and incentives as those customers in the rest of the state including:



### Home Performance with ENERGY STAR-The EEU’s collaborate to deliver HPF savings to residential customers through a network of Building Performance Institute (BPI) certified contractors installing comprehensive home energy thermal improvements. The unregulated fossil fuel residential market is relatively small in Burlington due to the high saturation of natural gas (over 85% of residential buildings use natural gas for space heating and domestic hot water) but there are streets and neighborhoods that Vermont Gas Systems does not serve mostly due to rock ledge issues.



### Replacement of Commercial Heating Systems –BED customers are eligible for the same incentives as EVT customers for the installation of oil and propane boilers and furnaces in commercial buildings up to 10,000 square feet at time of replacement. BED and EVT share the same rebate form which helps to inform all contractors and distributors that this is a statewide offer. BED estimates that this is a very small market within Burlington as over 95% of commercial buildings are served by natural gas.



### Commercial Building Performance-Technical assistance and incentives to assist small businesses and rental property owners in improving the insulation and comfort of their buildings. Energy audits and improvements are performed by a participating Building Performance Institute (BPI) certified contractor.

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### Program Highlights There were seven residential HPwES completions in 2012 and one commercial completion with total savings of 245 MMBTU’s. The residential projects consisted of five single-family homes, one owner-occupied two-family home and one condominium.

Variance Discussion The limited unregulated fossil fuel market in Burlington, as well as the housing characteristics of the potential unregulated fuels market, has presented challenges in meeting savings targets in 2012.
The potential single-family market is made up of homes that are predominately located in the more affluent Burlington neighborhoods where the properties have been well maintained and updated over the years. The City of Burlington’s energy efficiency code (established in 1991) for new construction and renovation may also be a contributing factor. There is a limited potential condominium market (heated mostly by LP-gas) but it also presents challenges as there are a higher percentage of renters in the two largest associations so the rental property–owner will need to participate.
BED is exploring several ways to increase participation. The majority of the oil and LP users are in condominiums. Redrocks and Ledgewood condominium associations include about 250 units that represent the largest concentration of unregulated heating fuel users in Burlington.VGS has been clear that they will not serve these neighborhoods due the rock ledge issues.
As we have not been successful in reaching this market with our normal outreach efforts, we have designed a pilot effort for 2013 to see if a more direct and hands-on approach with condominium associations increases participation.
Shelter Analytics has been working for the past two years with South Burlington’s Climate Action Committee and VGS on a focused condominium weatherization effort that has shown good results. Shelter acts as communications agent between the

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### program and the condominium associations (and individual owners). They help them to get weatherization proposals from qualified weatherization contractors, understand the incentive program and help to manage the work.
BED is also finalizing preparations to launch the Burlington PACE pilot effort using Board approved HPF (Non- Resource Acquisition) funds up to $175,000.00 to capitalize projects. Pilot participants will meet all PACE program statewide eligibility requirements, including underwriting requirements and placement of a property lien. PACE pilot projects will be backed by the statewide loan loss reserve fund.
VGS customers are eligible to participate in this PACE pilot effort but they only have access to the standard incentives available from VGS and not augmented by BED’s HPF funds.
BED planned to begin the PACE pilot earlier in 2012 but there were several delays mostly due to the establishment of agreed upon statewide underwriting requirements.

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### Table 29: Heating and Process Fuels Activity Period Costs for HPF Savings 

### ResidentialCommercial Total Year to Date Costs $16,908 $1,871 $18,779 Annual Budget $54,898 $18,299 $73,197 % of Annual Budget 31% 10% 26% HPF Savings Results MMBTU Year To Date 181 64 245 MMBTU Annual Goal 408 148 556 % of MMBTU Annual Goal 44% 43% 44%
HPF Non-Resource Acquisition

Program Year to Date Costs Annual Budget % of Annual Budget Education and Training $2,073 $2,500 83% Applied R & D $0 $300 0% Planning and Reporting $522 $650 80% Evaluation $63 $650 10% Policy and Public Affairs $4,726 $3,600 131% Information Technology $492 $500 98% General Administration $602 $850 71% PACE $1,447 $175,000 1% Total $9,925 $184,050 5%

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# 4 Appendix 4.1 Definition and End Notes Tables 30 and 31 are templates to help explain the appropriate footnotes for each program and summary table throughout this report.
Table 30: Summary Report Table Template
Prior Year Current Year 2012Projected Year 2012Projected Year 2012Program To Date (1) (2) (3) Par ticipants (4)

Program Costs BED Administration Costs (9) General (10) Implementation (11) Planning (12) Marketing (13) IT Development (14) BED Service Costs (15) Service to Participants (16) Service to Trade Allies (17) BED Incentive Costs (18) Participants (19) Trade Allies (20) BED Total Costs (8) Evaluation Costs (23) Participant Costs (21) Total Program Costs (26) Benefits Annualized MWh (27) Lifetime MWh (28) Winter Peak KW (29) Summer Peak KW (30) MWh/Participant (31) Weighted Lifetime (32)

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### Table 31: End Use Report Table Template DescriptionParticipantsGross MWh Net MWhLifetime MWhWinter Net KWSummer Net KWMMBTUCCF (33) (35) (36) (34) (37) (38) (39) (40)



## Footnotes for the report table templates: (1) Verified activity for the current reporting year. For savings this figure will be the estimated savings for measures actually implemented and verified for the current report period. Savings should be reported in MWH, at generation and net of all approved adjustment factors, except as otherwise noted. (2) Estimated portion of the three-year savings and costs projected for the current report year. This footnote should identify the source of the projections. Projections for categories footnoted (4) to (7), (21) to (26) and (28) to (32) will be provided if available. (3) Program to date activity. For participation [(4) to (7)], the program to date column should count each customer (premise) only once, regardless of participation in previous years. The executive summary should count each customer (premise) only once, even if a customer was served by more than one program. (4) Number of customers with verified installations during the current report period. Customer is defined as a unique premise as defined by the utility, with one exception. For master-metered, multifamily buildings, customer is defined as a dwelling unit. (8) Total costs incurred by Burlington Electric Department during the current report period. All costs in nominal dollars, (9) + (15) + (18). (9) Subtotal of all administrative costs detailed in the categories below, (10) + (11) + (12) + (13) + (14). (10) Costs include general management, budgeting, financial management and legal costs directly associated with program implementation (such as contract review). (11) Implementation management and administrative costs include costs related to business development and customer service, data management, and other program administrative costs directly related to implementation. (12) Costs related to program design and planning, program screening and other similar functions. (13) Costs related to marketing and outreach. (14) IT development and maintenance costs do not need to be broken out by program, i.e., this category may be filled in only on the executive summary page. (15) Subtotal reflecting total implementation costs, (16) + (17). (16) Costs related to conducting audits or analyses, preparing the package of efficiency measures, contract management and post project follow up. (17) Costs related to educational or other support services provided to entities other than individual program participants, such as trade allies, manufacturers, wholesalers, builders, and architects. (18) Subtotal reflecting total incentive costs, (19) + (20). (19) Direct payments made to participants to defray the costs of specific efficiency measures. If a program employs a shared savings mechanism or loan system, this category should include the utility share of the measure and carrying costs projected over the payment period, net of all projected participant payments. (20) Incentives paid to manufacturers, wholesalers, builders, or other stakeholders. (21) Total costs incurred by participants related to BED activities during the current report period. Thiscategory includes the participant contribution to the capital costs of installed measures and to specific DSMrelated services, such as technical assistance or energy ratings.

### 64 (23) Evaluation costs, excluding tracking and reporting expenditures. (24) Total program costs, (8) + (21) + (22) + (23). (26) Total expenditures associated with the delivery of direct services to participants and trade allies, including all BED, participant and third party costs. (27) Annualized MWH savings at generation and net of all approved adjustment factors (e.g., free riders, spill over) for measures installed and verified during the current report period. (28) The lifetime estimated MWH savings for measures installed and verified during the current reporting year, at generation and net of all approved factors. (Estimated annualized savings times the life of the measure). (29) Estimated impact of measures at time of winter system peak, at generation, net of adjustment factors. (30) Estimated impact of measures at time of summer system peak, at generation, net of adjustment factors. (31) Annualized MWH savings per participant, net at generation, i.e., (27) / (4). (32) Average lifetime, in years, of measures in the program weighted by savings, i.e., (28)/(27). (33) Number of customers with verified installations of measures within the end use, utility grouping. (34) The total annualized MWH saved, at generation, net of adjustment factors, should add up to the savings reported in the line item footnoted as (27). (35) The total lifetime MWH saved, at generation, net of adjustment factors, should add up to the savings reported in the line item footnoted as (28). (36) The total annualized MWH saved, gross at the customer meter. (37) The total winter coincident KW, at generation, net of adjustment factors, should add up to the savings reported in the line item footnoted as (29). (38) The total summer coincident KW, at generation, net of adjustment factors, should add up to the savings reported in the line item footnoted as (30). (39) Total MMBtu estimated to be saved (positive) or used (negative) for alternative fuels as a result of measures installed in the end use. (40) Total water saved (CCF) (positive) or used (negative) due to measures installed in the end use.

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# 4.2 Design Review Guide

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