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Submitted toSouthern California Edison Company8631 Rush Street, 2nd FloorRosemead, CA 91770Submitted byWest Hill Energy & Computing, Inc.23 Williamstown RoadChelsea, VT 05038In Association withRidge and AssociatesThe Energy Center of WisconsinWirtshafter Associates&Business Economic Research and AnalysisJune 17, 2005

Table of ContentsLIEE PY2002 Impact EvaluationTable of ContentsEXECUTIVE SUMMARY . 1E.1Objectives and Approach . 1E.2Overview of Methods. 1E.3Energy Education Literature Review . 2E.4Summary of Results. 2E.4.1Refrigerators . 5E.4.2Lighting . 5E.4.3Cooling. 5E.4.4Heating Systems . 6E.4.5Attic Insulation. 6E.4.6Other Space Heating Measures . 6E.4.7Water Heating Conservation Measures. 7E.4.8Energy Education. 71INTRODUCTION. 81.1Overview . 81.2Approach to the 2002 Impact Evaluation. 91.3Organization of the Report . 102PROGRAM DESCRIPTION. 122.1Overview . 122.2Income Eligibility . 122.3Program Measures. 122.4Other Services Provided by the LIEE. 133ENERGY EDUCATION LITERATURE REVIEW. 163.1Overview . 163.2Scope of Literature Review . 17Final ReportiWest Hill Energy and Computing

Table of ContentsLIEE PY2002 Impact EvaluationTable of Contents (Continued)3.3Findings. 173.3.1Penelec field test by the Alliance to Save Energy . 183.3.2Niagra Mohawk Persistence Study . 183.3.3Michigan Study . 193.3.4Ohio Study. 193.3.5Cinergy Study. 193.4Methodological Issues. 203.4.1Equivalence of groups. 203.4.2Sample size and statistical resolution . ers”. 233.4.4Weather normalization. 233.5Conclusions and Recommendations. 243.6References. 2544.1DATA COLLECTION AND ISSUES. 27Data Collection Process . 284.2Data Issues . 284.2.1Scope of data collected . 284.2.2Program Data Collection Procedures . 294.2.3Heating Fuel Types . 294.2.4Pre-installation conditions for selected equipment . 304.2.5Multifamily Buildings and Mobile Home Parks . 314.2.6Other Data Inconsistencies. 314.35Compliance with CPUC Decision 03-10-041 . 32APPROACHES TO LIEE IMPACT EVALUATION . 335.1Best Practices. 335.2Selecting the Unit of Measure . 345.3Selecting the Right Impact Model . 355.4Selecting the Right Billing Analysis. 355.5Model Specification. 365.6Engineering and Metering Methods. 39Final ReportiiWest Hill Energy and Computing

Table of ContentsLIEE PY2002 Impact EvaluationTable of Contents (Continued)5.76References (Chapters 5 & 6) . 39METHODS AND ANALYSIS . 426.1Sampling Plan and Weights . 426.2Simple Pre/Post Modeling . 426.3Modeling Approach: Regression . 436.3.1General Form. 436.3.2Dependent Variable . 446.3.3Independent Variables . 446.3.4Confidence Intervals . 456.3.5Model Diagnostics . 466.4Specification of the Regression Model . 476.4.1Identifying Fuel Types for Space and Water Heating. 486.4.2Model Variables. 496.5Results of Diagnostics . 596.5.1Outliers . 596.5.2Collinearity . 606.5.3Autocorrelation . 606.5.4Comparison of Bootstrap and Regression Results. 616.6Alternative Models. 626.7Simple Pre/Post Analysis: Selection of the Comparison Group . 636.8Premises v Accounts . 646.9Comparison to Previous Evaluations . 646.9.1Regression Models . 656.9.2Fuel Types. 666.9.3Precision . 666.107References. 66RESULTS . 697.1Overview . 697.2Program Activity. 72Final ReportiiiWest Hill Energy and Computing

Table of ContentsLIEE PY2002 Impact EvaluationTable of Contents (Continued)7.3Attrition . 737.3.1Other Demographics. 767.4Regression Results . 777.4.1Participation Effects . 787.4.2Overall Trend in Energy Use. 797.4.3Electric Space Heating Measures. 797.4.4Electric DHW package . 807.4.5Cooling Model . 807.4.6Measures with Higher Energy Use . 807.4.7Gas Model. 817.5Program Savings by Utility and Fuel Type . 837.6Impacts of Measures with Increased Use. 8988.1MEASURE-LEVEL SAVINGS. 91Scope of Measures Level Review . 928.2Lighting. 938.2.1PY2002 Analysis . 948.2.2Alternative Strategies for Assessing Savings . 958.3Refrigerators . 958.3.1PY2002 Analysis . 968.3.2Alternative Strategies for Assessing Savings . 978.4Evaporative Coolers. 978.4.1Evaporative Cooler Installation . 978.4.2Factors Affecting Savings . 978.4.3PY2002 Analysis Results. 988.4.4Approaches to Assessing Savings . 988.5Evaporative Cooler Maintenance. 998.5.1PY2002 Analysis Results. 998.6Air Conditioning Installation. 1008.6.1Central Systems. 1008.6.2Window/Wall Air Conditioners. 1018.6.3PY2002 Analysis Results. 1018.6.4Alternative Strategies for Assessing Savings . 101Final ReportivWest Hill Energy and Computing

Table of ContentsLIEE PY2002 Impact EvaluationTable of Contents (Continued)8.7Furnace Replacement/Repair . 1028.7.1PY2002 Analysis Results. 1038.7.2Alternative Strategies for Assessing Savings . 1048.8HVAC Filters. 1048.8.1PY2002 Analysis Results. 1058.9Water Heating Measures. 1058.9.1PY2002 Analysis Results for the Hot Water Package. 1068.9.2Showerheads . 1068.9.3Aerators. 1078.9.4Water Heater Wrap. 1088.9.5Alternative Strategies for Assessing Savings . 1098.10 Attic Insulation. 1098.10.1PY2002 Analysis Results. 1108.10.2Alternative Strategies for Assessing Savings . 1108.11 Air Sealing: Caulking, Weatherstripping and Outlet Gaskets. 1108.11.1PY2002 Analysis Results. 1128.11.2Alternative Strategies for Assessing Savings . 1128.12 Programmable Thermostats . 1128.12.1PY2002 Analysis Results. 1148.12.2Alternative Strategies for Assessing Savings . 1148.139References. 114DISCUSSION . 1179.1The California Energy Crisis. 1179.2Other Considerations. 1209.3Conclusion . 1219.4References. 122Final ReportvWest Hill Energy and Computing

Table of ContentsLIEE PY2002 Impact EvaluationTable of Contents (Continued)1010.1RECOMMENDATIONS. 123Improve On Site Data Collection. 12410.2 Establish Priorities for the Next Evaluation. 12610.2.1Household Approach . 12610.2.2Measure-level Approach. 12710.2.3Deemed Savings . 12810.3Establish an Appropriate Time Line . 12810.4Define the Scope of the Sample Plan . 12910.5Consider Qualitative Methods to Assess Savings from Energy Education . 12910.6Applying the Results of this Evaluation. 12910.7Postpone the Next LIEE Impact Evaluation Until PY 2005 . 13110.8Conclusion . 131List of AppendicesAppendix A Supporting DocumentationA-1: Regression Output for the Final ModelsA-2: Alternative ModelsA-3: Pre/Post Sample SelectionA-4: Analysis of OutliersA-5: Attrition by House TypeAppendix B Results by Climate ZoneB-1: Results by Climate ZoneAppendix C M&E Protocols Tables 6 and 7C-1: Table 6C-2: Table 7Appendix D Public Workshops: Minutes & CommentsFinal ReportviWest Hill Energy and Computing

Table of ContentsLIEE PY2002 Impact EvaluationTable of FiguresFigure 7-1: Annual Household Savings and Penetration of Efficient Refrigerators . 71Figure 9-1: Monthly Average Variation in Electric Use . 118Figure 9-2: Natural Gas Demand in California. 119Figure 9-3: CARE Rate Penetration from 2000 to 2004. 121Figure A-3.1: Analysis of Post-Installation Reads per Month for Electric Use . A-16Table of TablesTable E-1: PY 2002 Total Program Savings. 2Table E-2: Summary of Household Savings, PY00 through PY02 . 3Table E-3: Summary of Recommendations. 8Table 2-1: Eligible Measures for PY 2002 . 14Table 4-1: Water and Space Heating Fuel Types for Final Sample . 30Table 4-2: Measure Installation Protocols . 31Table 6-1: Common Variables in All Models. 50Table 6-2: Base Model Sampling . 51Table 6-3: Variables in the Base Electric Model Only . 51Table 6-4: Cooling Model Sample. 52Table 6-5: Variables in the Cooling Model Only . 53Table 6-6: Variables in the Gas Model Only . 55Table 6-7: Deemed Savings for DHW Measures . 57Table 6-8: Report Measure Categories and DEER Measures. 58Table 6-9: Comparison of Bootstrap and Regression Standard Errors. 62Table 6-10: Modeling Similarities between PY2002 and Previous Evaluations. 65Table 6-11: Comparison of PY2002 Evaluation Methods to Previous Evaluations. 67Table 7-1: Comparison of Household Savings and Selected Measures . 69Table 7-2: Comparison of Household Savings, PY2000 to PY2003. 70Table 7-3: PY 2002 Total Program Savings . 70Table 7-4: PG&E Summary of Program Activity by Household . 72Table 7-5: SCE Summary of Program Activity by Household. 73Table 7-6: SoCalGas Summary of Program Activity by Household. 73Table 7-7: SDG&E Summary of Program Activity by Household . 73Table 7-8: Attrition from the Electric Model by Utility . 75Table 7-9: Attrition from the Gas Model by Utility . 76Table 7-10: Regression Results and Precision Table. 77Table 7-11: Comparison of Participation Effects by Utility. 78Table 7-12: Comparison of PG&E Gas Savings from 2000 to 2002. 82Table 7-13: PGE Electric Measure and Program Savings . 83Table 7-14: SCE Electric Measure and Program Savings . 84Table 7-15: SDG&E Electric Measure and Program Savings . 85Table 7-16: PG&E Gas Measure and Program Savings . 86Table 7-17: SDGE Gas Measure and Program Savings . 87Table 7-18: SoCalGas Gas Measure and Program Savings. 88Table 7-19: PG&E Electric Measures with Increased Use. 89Final ReportviiWest Hill Energy and Computing

Table of ContentsLIEE PY2002 Impact EvaluationTable of Tables (Continued)Table 7-21: SoCalGas Measures with Increased Use . 90Table 7-22: SDG&E Gas Measures with Increased Use . 90Table 8-1: Measure-level Issues and Approaches . 92Table 8-2: Reported CFL Savings . 94Table 8-3: Refrigerator Savings by Age of Existing Unit . 96Table 8-4: Reported Refrigerator Replacement Savings . 96Table 8-5: Reported Evaporative Cooler Installation Savings . 99Table 8-6: Reported Evaporative Cooler Maintenance Savings. 99Table 8-7: Reported Air Conditioner Installation Savings . 101Table 8-8: Reported Furnace Replacement Savings. 103Table 8-9: Reported Furnace Repair Savings . 104Table 8-10: Reported HVAC Filter Savings. 105Table 8-11: Reported Showerhead Savings. 107Table 8-12: Reported Aerator Savings . 108Table 8-13: Reported Water Heater Wrap Savings . 109Table 8-14: Reported Attic Insulation Savings. 110Table 8-15: Reported Savings for Caulking and Weatherstripping. 111Table 8-16: Reported Setback Thermostat Savings. 114Table 10-1: Summary of Recommendations . 123Table 10-2: Summary of Recommended Data Collection Improvements. 125Table A-1.1: PG&E Base Model . A-2Table A-1.2: SCE Base Model. A-3Table A-1.3: SDG&E Base Model . A-3Table A-1.4: PG&E Cooling Model . A-4Table A-1.5: SCE Cooling Model . A-4Table A-1.6: Gas Model . A-5Table A-1.7: Variables in Both Electric and Gas Models . A-5Table A-1.8: Variables in the Electric Model Only. A-6Table A-1.9: Variables in the Gas Model Only . A-6Table A-2.1: Program Effects . A-8Table A-2.2: Coincidence of Electric Water and Space Heating. A-9Table A-2.3: Comparison of DHW Alternative Models (Combined Utilities) . A-9Table A-2.4: Number of Homes with Existing Central Air Conditioning (PG&E) . A-10Table A-2.5: PG&E Cooling Model for Homes with Central A/C. A-11Table A-2.6: Number of Homes with Existing Air Conditioning (SCE) . A-11Table A.2-7: Comparison of Gas Models . A-12Table A-3.1: Usage Categories . A-15Table A-4.1: Outlier Analysis for the PG&E Cooling Model . A-19Table A-4.2: Outlier Analysis for the SCE Cooling Model. A-19Table A-4.3: Outlier Analysis for the PG&E Base Model . A-20Table A-4.4: Outlier Analysis for the SCE Base Model. A-20Table A-4.5: Outlier Analysis for the SDG&E Base Model . A-21Final ReportviiiWest Hill Energy and Computing

Table of ContentsLIEE PY2002 Impact EvaluationTable of Tables (Continued)Table A-5.1: Attrition from the Electric Model by House Type . A-23Table A-5.2: Attrition from the Gas Model by House Type. A-23Table C-1: Total Gross Electric Savings . C-2Table C-2: Total Gross Gas Savings. C-3Table C-3: Gross Electric Savings by Designated Unit. C-3Table C-4: Gross Gas Savings by Designated Unit . C-4Table C-5: Measure Counts . C-5Table C-6: Distribution of Participants by Climate Zone. C-6Table C-7: Descriptive Statistics for the Electric Sample . C-9Table C-8: Descriptive Statistics for the Gas Sample. C-10Final ReportixWest Hill Energy and Computing

Executive SummaryLIEE PY2002 Impact EvaluationExecutive SummaryThis report comprises an impact evaluation of the California Low Income EnergyEfficiency Program (LIEE) for program year 2002 (PY02). It was commissioned by thefour participating utilities, Southern California Edison (SCE), Pacific Gas and Electric(PG&E), San Diego Gas and Electric (SDG&E) and Southern California Gas(SoCalGas), as required by the California Public Utilities Commission (CPUC) inDecision 03-10-041, dated October 16, 2003. The study team, led by West Hill Energy &Computing, includes the Energy Center of Wisconsin, Ridge and Associates, m.”E.1 Objectives and ApproachThis study was commissioned to meet three main objectives:1) to investigate methods to estimate savings relating to the energy educationcomponent of the program2) to review impact evaluation strategies and approaches for estimating measurelevel savings in the context of the LIEE program3) to estimate impacts of the LIEE program during program year 2002The first component of the evaluation consists of a literature review to identify thestrategies used for estimating savings impacts from energy education, presented inChapter 3.The second goal is addressed through a review of the California Evaluation Frameworksand other resources, culminating in the discussion of a

Southern California Edison Company 8631 Rush Street, 2nd Floor Rosemead, CA 91770 Submitted by West Hill Energy & Computing, Inc. 23 Williamstown Road Chelsea, VT 05038 In Association with Ridge and Associates The Energy Center of Wisconsin Wirtshafter Associates & Business Economic Research and Analysis June 17, 2005