1. GET YOUR ENERGY
BILL DOWN!
A Fresh Look at
Residential Energy Efficiency
February 2010
Private & Confidential

2. Government recognizes the energy
reduction imperative
Example: Sonoma County’s ‘Climate Action Plan’
Goal is to reduce greenhouse gas (GHG) emissions 25 percent
below 1990 levels by 2015
• All nine Sonoma cities and the County established this goal in 2005
Over 90 percent of electricity and natural gas is used by the
County’s approximately 200,000 homes & 30,000 businesses
Action plan is for an aggressive efficiency retrofit program – 80%
adoption rate
150,000 residential accounts
20,000 commercial accounts
Source: McKinsey & Company, yoUtilBill 1 confidential – yoUtilBill llc 2009© - all rights reserved

3. Of course, less consumption lowers
emissions; residences are key
Emissions in United States By 2020, the residential sector will
consume 29% of energy in U.S.
• Growth of 0.4% driven by population
growth, larger homes, and more electrical
devices in homes
Residential
Transportation Buildings
(21%)
(32%) Over 28% of energy could be saved
with positive economic returns
• Energy Savings: If enacted all positive
Other NPV changes, could save $41Bn a year
Buildings and 360 million tons of CO2 emissions
(22%)
Industrial
• Upfront Investment: $229 Bn incremental
(25%)
which leads to overall NPV savings of
$395 Bn
Total in California – 492 Millions Tons of Carbon Emissions The U.S. average annual residential
energy bill is $2,000, but it could be
$1,200
Source: California Energy Commission, The Economist, yoUtilBill 2 confidential – yoUtilBill llc 2009© - all rights reserved

4. And efficiency is comparatively cost
effective
Cost of Cutting Carbon By Opportunity
Source: Wall Street Journal, McKinsey & Company 3 confidential – yoUtilBill llc 2009© - all rights reserved

5. After 30 years, why not more progress??
Even homes built after 1978 have poor energy efficiency
• Most homes still have little insulation, low performance windows, leaky duct
systems, and inefficient HVAC units
• This is despite huge government spending on energy conservation
awareness and direct subsidies and grants – and mandates!
The answer; good citizenship is a good goal – but homeowner
pocket book and market forces are the real motivators
• Most citizens espouse responsible ethics and wishful conservation intentions
• But the real driver of most homeowner actions is inspired by homeowner
economics
• BUT NO MARKET-BASED APPROACHES HAVE BEEN DEPLOYED TO
DATE TO ALTER CONSUMPTION PATTERNS
Source: California Energy Commission, yoUtilBill 4 confidential – yoUtilBill llc 2009© - all rights reserved

6. Problem: Bills are rising, but home prices
are down; everyone focused on bottom line
PG&E Electricity Prices Greater Bay Area Home Prices
Price
Dollars per kWh
$0.45
$0.40
$0.35
$0.30
Base
$0.25 101-130%
131-200%
$0.20 201-300%
>300%
$0.15
$0.10
$0.05
$0.00
Jan-04
Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
Source: PG&E, yoUtilBill 5 confidential – yoUtilBill llc 2009© - all rights reserved

7. Problem: Most homeowners have no idea
on home energy consumption economics
How should homeowners prioritize energy efficiency actions?
Inadequate insulation
in attic & walls
Leaky ducts
Inefficient light bulbs
Lack of programmable thermostat
Plug load from small appliances
Inefficient kitchen appliances
Inefficient washer & dryer
Inefficient furnaces &
water heaters
Source: yoUtilBill 6 confidential – yoUtilBill llc 2009© - all rights reserved

8. Problem: The economics are complex
Calculating the Economics
• Evaluate your current energy usage
as well as the prices you pay
• Identify all ways to save you energy
• Calculate the energy savings of each action
• Determine the equipment & installation cost to
perform action
• Determine the cost to finance each action
• Identify all rebates, tax credits, & recycling opportunities
Only Actions That Save Money Should Be Performed
Source: yoUtilBill 7 confidential – yoUtilBill llc 2009© - all rights reserved

9. If homeowners know what actions will be
economically wise, they will respond…
Actual example of savings - $2,500 every year
Do these Don’t do these
Old annual bill:
$6,0331
$6,000
$1,292
$5,000 $27 $55
$146 $44
$97
$684 $254
$334
$4,000 $159 $48 $115 $40
Expected new annual bill:
$3,4211
$3,000
$2,000
$1,000
$0
Baseline
Plug Loads
Air Sealing
Lighting
Attic Insulation
Wall Insulation
Crawlspace
Refrigerator 1
Pool Filter Pump
Dishwasher 1
Heat 1
Water Heater 1
Clothes Dryer 1
Clothes Washer 1
Insulation
1Based on cost of energy consumed in last 12 months; under today’s pricing 8 confidential – yoUtilBill llc 2009© - all rights reserved
Source: Equipment specifications, customer interviews, yoUtilBill analysis

10. Problem: Most homeowners don’t want to
invest, they want flexibility to move in 1 yr
Options are emerging that allow homeowners to invest in their
home’s energy systems without carrying the liability if they choose
to move anytime in the future
• California Assembly Bill (AB) 811 enables local governments to offer energy
efficiency loans to homeowners
– Sonoma County has launched this program with $100m in funds
– Improvement projects must be tied to the home (e.g. duct work, windows,
boilers)
– Loans are payable twice a year through property taxes; 7% now, to 3%?
• Utilities are considering on-bill financing for residences
– Include loan repayments on monthly bill
– Ongoing obligations stay with the meter, not the individual
Without the ongoing obligation to pay for improvements after
moving house, customers are now inspired to invest as efficient
homes have higher valuations
Source: yoUtilBill 9 confidential – yoUtilBill llc 2009© - all rights reserved

11. PV solar must be evaluated as part of a
whole house view
Example Customer View of PV Solar;
A Preliminary Look At Overall Savings
$35,000
Overall Energy Savings Over Time
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
Efficiency (Plus Solar if Cost Solar - Top 2 Tiers Solar - All Electricity
(Dollars)
($5,000) Effective)
($10,000)
($15,000)
($20,000)
10 confidential – yoUtilBill llc 2009© - all rights reserved
Source: yoUtilBill LLC analysis

12. The environmental impact of such
efficiency measures is significant
Example of the Annual CO2
Would Be Similar To…
Savings of One Home...
Driving 4,500 fewer miles
16,000
Flying 11,400 fewer miles
Annual Carbon Emissions
14,000
12,000
10,000
If 1000 People Joined You,
8,000 The Energy Savings Could…
Pounds
6,000
Provide power in Sonoma County for -
4,000
1,180 houses for 1 year
2,000
a hospital for 6 years
0
Today With Just Efficiency
a school for 13 years
Measures
Be equivalent to taking 375 cars off the
road a year
11 confidential – yoUtilBill llc 2009© - all rights reserved
Source: yoUtilBill, Chevron, Department of Energy