1. Performance Goals for Each City

The spreadsheets attached presented the city-specific budget detail that you request in the first bullet of the data request. The projections presented link the budget numbers presented on page 48 of our proposal and the performance goals presented on page 41. The spreadsheets present information for the six cities that we intend to serve with the REEI/Energy District approach for the delivery of energy efficiency. At your request, I have presented the customer segments, the number of participants, the types of measures, the cost per measure, the number of measures, the incentive per measure, the type of incentive, and the total incentive for each.

Customer Segments: In addition to the customer segments that you present in the Data Request, the REEI presents projected savings for two types of apartments - multi-family and owner-occupied - given our experiences with serving these two considerably different ownership patterns. We expect to spend considerably more money on multi-family (which we define as non-owner-occupied) to overcome the split incentive between the landlord who owns the facility and the tenant who generally pays the utility bills. Naturally, if your needs require a single multi-family distinction, our two categories can be added. Note also that our work with municipal facilities encompasses overall municipal energy management that extends beyond government buildings and services throughout the community, specifically related to city-wide energy management plans.

Inter-City Variations: While the data largely speaks for itself, there are subtle assumptions embedded in the projections presented. Given the demographics of the various cities, and the fact that we have "primed the pump" for energy efficiency in Irvine and Santa Monica, and the differences in climate between our coastal and inland communities, there are differences in the projections. For instance, we intend to do more retrofit work in mobile homes occupied by senior citizens on fixed incomes in Irvine than Santa Monica. We intend to reap greater savings from owner-occupied apartments in Irvine, and greater savings from multi-family apartments in Santa Monica where we are focusing on the less affluent Pico Neighborhood. We expect that Moreno Valley will carry out a Halogen Torchiere Exchange program given its predominantly middle-income demographics and the preponderance of this lighting technology in this income bracket.

We estimate greater penetration of "miscellaneous energy efficiency" measures (including weatherstripping, window films, shades, air conditioner tune-ups, insulation, etc.) and thermostats in the hotter cities of Palm Desert and Moreno Valley where electricity use is predominated by cooling, than Santa Monica and Irvine. In addition to these variables, our efforts have concentrated on different types of energy districts in Irvine and Santa Monica. In Santa Monica, we intend to reap greater small business savings given our viable partnerships with the small business community there. And we do not intend to repeat certain kinds of program activities in the two original cities, notably the sale of discounted CFLs to city employees and Halogen Torchiere Exchange events, as these technologies have been prepared for adoption through more common market-based purchases and the funds for these activities can now be better directed to the new program cities.

Incentive Types: Please note that in addition to the incentive type distinctions that you made in the Data Request of "rebate" and "direct install," I've added a few others: "Grants" are presented for items that are given to the cities and their constituents, for instance CFLs that are distributed to students through the PEAK Student Energy Actions program. We also provide "grants" for the PEAK curriculum to school districts and for the technical analysis and support that we provide to the cities so that they can craft energy management plans, specifically to get their "own houses in order" as they work with the REEI to promote energy efficiency throughout their communities. We also present "discounts" that pertain to CFLs that we bulk purchase and then distribute in the cities for resale at lower prices to allow for greater penetration, particularly among hard-to-reach customers. If these more literal terms do not synchronize with your needs, please substitute "direct install" for "grants," and "rebates" for "discounts."