2020 Annual Report
Energy Efficiency Investments Prove Resilient in 2020 — NEEA’s Annual Report highlights adaptation, innovation in advancing energy efficiency
Letter to the Region
Twenty-five years ago, the energy efficiency community in Idaho, Montana, Washington and Oregon created the Northwest Energy Efficiency Alliance (NEEA) based on a shared belief that together, the region could accomplish far more than it could alone. This past year has emphasized the importance of this unique, collaborative approach. Although the impacts of COVID-19 have reverberated throughout the country, the alliance has adapted to continue to pioneer the transformation of the Northwest’s energy market toward greater efficiency despite market disruptions and health challenges.
2020 marked a year of change that profoundly impacted the industry and energy efficiency in the region. Yet through this challenging and difficult year, the alliance remained committed to its purpose: to pool resources and share risks to transform the market for energy efficiency to the benefit of consumers in the Northwest. Working together in 2020, the alliance:
- Worked with water heating manufacturers to introduce the first Tier 4 water heater to the market – the highest level of efficiency currently available – using the alliance’s Advanced Water Heating Specification (AWHS). The Environmental Protection Agency has now updated its Residential Water Heaters Specification Version 4.0 to align closely with the AWHS as part of the Federal administration’s 2021 energy efficiency initiatives.
- Expanded alliance portfolio diversity, readying new concepts for Market Transformation including variable speed heat pumps and efficient fans.
- Completed the fourth Commercial Building Stock Assessment, a regional study that seeks to understand drivers of energy consumption by compiling data from more than 900 commercial buildings in the Northwest.
- Created a critical mass of support for the first North American gas heat pump water heater demonstration project and helped grow the North American Gas Heat Pump Collaborative to over a dozen gas utilities in Canada and the U.S. These combined efforts help the alliance to generate the market power needed to fast-track the development and adoption of efficient natural gas technologies.
- Increased alliance scale and influence on the consumer products market by adding two new Illinois utilities to the ENERGY STAR® Retail Products Portfolio (ESRPP) program. ESRPP partners now represent 16% of the U.S. market.
- Advanced the Ductless Heat Pump program to long-term monitoring and tracking. The program has laid the foundation for continued Market Transformation work in the residential HVAC market and the alliance will continue to leverage the infrastructure and lessons learned from the program to support launching its new Variable Speed Heat Pump initiative.
As a regional organization focused on long-term goals, the alliance remained well positioned to buffer against short-term market disruption – a testament to the resilience of Market Transformation. In times of uncertainty, energy efficiency remains a stabilizing force.
The alliance’s continued commitment to work together has made all of these accomplishments possible.
2020 Portfolio Highlights
Energy efficiency is a key pillar in Washington’s plan for a cleaner energy future. Not only does energy efficiency save money, it ensures a robust and resilient energy system. Thank you to the Northwest Energy Efficiency Alliance for serving as a guiding force for the region and helping to provide affordable energy-efficient products, services and practices to the Northwest and beyond.
– Jay Inslee, Governor of Washington
2020 Annual Report Success Stories:
2020 Annual Report: Ductless Heat Pumps
Setting a Market Transformation Standard Since 2006, the Ductless Heat Pump (DHP) program has served as a testament to the resilience, flexibility…
2020 Annual Report: ENERGY STAR® Retail Products Platform
Flexible Strength in the Face of Uncertainty: A Timely Expansion of Data Insight Simplicity is the strength of the ENERGY STAR® Retail…
2020 Annual Report Story: Water Heating
A Dual-Fuel Approach to Market Transformation For decades, the alliance has built lasting relationships across the supply chain to drive the adoption…
Impacts & Investments
2020 Energy Savings Results
2020 Co-Created Energy Savings
(All Investments)
NEEA estimates that the alliance delivered almost 37 average megawatts (aMW) of Co-Created energy savings in 2020, exceeding its goal of 26.8 aMW by almost 30%. With 2020 marking the first year of NEEA’s Cycle 6 Business Plan, most of those savings are the result of investments made during previous business cycles.
2020 Total Regional Natural Gas Savings
NEEA estimates that the alliance delivered .66 Million Therms (MM Therms) of Total Regional natural gas savings in 2020, exceeding its goal of .6 MM Therms by almost 10%.
The alliance’s natural gas portfolio is still in early development and several potential savings streams are not yet accounted for.
Co-Created Electric Energy Savings
Progress to 5-year goals (All Investments)
For its Cycle 6 Business Plan (2020-2024), the alliance is estimating it will deliver between 115-176 average megawatts (aMW) of Co-Created electric energy savings, enough energy to power more than 85,000 Northwest homes each year.
Co-Created – or shared – energy savings include all savings above the baseline that occur in the market due to the combined efforts of NEEA and its partners.
1 aMW = enough energy to power about 730 Northwest homes per year
Total Regional Natural Gas Energy Savings
Progress to 5-year goals (All Investments)
And, the alliance is estimating it will deliver between 6-13 Million (MM) Therms of Total Regional natural gas energy savings during its Cycle 6 Business Plan (2020-2024).
Total Regional Savings include all savings calculated above the pre-intervention market starting point due to the combined efforts of NEEA and its partners.
20 Year Levelized Cost:
Current Portfolio = .61 cents/kWh
20-year Electric Benefit-Cost Ratio*: 2.1
*Reflects the 20-year value of the regional investment in Market Transformation efforts. The alliance only advances a program into the market if it meets the minimum benefit-cost ratio threshold of 1.
2020 Regional Peak Demand Savings:
8.4 MW winter peak (current investments in market development)
2020 Avoided CO2 Emissions:
- Electric – 214,000 tons
- Natural Gas – 3,800
Additive Co-Created Savings (aMW): 1997–2020
Market Transformation is a long-term process that delivers permanent market change. Alliance activities during any one business cycle continue to deliver energy savings after the 5-year investment period has ended. This chart shows energy savings associated with the funding cycle as well as how savings continue to grow and/or contribute to regional savings goals well into the future.
Working together, the region has delivered more than 850 average megawatts (aMW) of Co-Created energy savings since 1997 – equivalent to enough energy to power more than 620,000 Northwest homes each year.
2020 Investments
$21.8 Million
Market Development & Transformation
$4.1 Million
Analytics, Research & Evaluation
$5 Million
Business Administration
$1.6 Million
Stakeholder Engagement, Corporate Strategy & Communications
$2.6 Million
Natural Gas
$1.1 Million
End Use Load Research
Balance Sheet
As of December 31, 2020
| Assets | |
| Cash and cash equivalents | $1,512,136 |
| Short-term investments | $14,175,272 |
| Funder and other receivables | $461,845 |
| Prepaid expenses | $735,543 |
| Property and equipment | $1,711,900 |
| Total Assets | $18,596,696 |
| Liabilities and net assets | |
| Accounts payable and other liabilities | $4,893,640 |
| Advances from funders | $10,122,773 |
| Total liabilities | $15,016,413 |
| Net Assets | |
| Unrestricted | $2,368,783 |
| Temporarily restricted | $1,211,500 |
| Total Net Assets | $3,580,283 |
| Total Liabilities and Net Assets | $18,596,696 |
Statement of Activities
Year ending December 31, 2020
| Revenues | |
| Electric contributions | $29,775,981 |
| Natural Gas contributions | $3,355,251 |
| End Use Load Research Contributions | $1,840,213 |
| Special fund contributions | $2,703,330 |
| Interest and other income | $183,729 |
| Total Revenue | $37,858,504 |
| Expenses | |
| Compensation and benefits | $12,839,206 |
| General administration | $2,508,186 |
| Direct project costs | $20,832,841 |
| Total Expenses | $36,180,233 |
| Change in net assets | $1,678,271 |
NEEA Board of Directors
Dan Bedbury
Clark Public Utilities
Director, Energy Resources
Stephen Bicker
Tacoma Power
Sr. Manager, Customer Energy Programs
Holly Braun
NW Natural
Manager, Energy Policy and Sustainability
John Chatburn
Idaho Office of Energy and Mineral Resources
Administrator
Scott Coe
NEEA Board Treasurer
Emerald PUD
General Manager
Michael Colgrove
NEEA Board Vice Chair
Energy Trust of Oregon
Executive Director
Monica Cowlishaw
Cascade Natural Gas
Manager, Energy Efficiency Community Service
Theresa Drake
NEEA Board Secretary
Idaho Power
Sr. Manager, Customer Relations and Energy Efficiency
Suzanne Frew
Snohomish County PUD
Sr. Program Manager
Andrew Grassell
Chelan County PUD
Manager, Energy Development and Conservation
Nycole Hydzik
(joined in 2021)
Avista Utilities
Manager, Energy Solutions and Efficiency
Dan Johnson
(served in 2020)
Avista Utiltiies
Director, Energy Efficiency
Lauren McCloy
(served in 2020)
Washington Governor’s Representative, Washington Governor’s Office
Energy Policy Advisor
Lori Moen
Seattle City Light
Manager, Solutions Design
Patrick Oshie
(joined in 2021)
Northwest Power and Conservation Council
Washington Governor’s Representative, Washington Governor’s Office
Ben Otto
Public Interest Representative, Idaho Conservation League
Attorney
Bonnie Rouse
Montana Governor’s Representative, Montana Energy Office
Recycling, Energy and Compliance Assistance
Ruchi Sadhir
Oregon Governor’s Representative, Oregon Department of Energy
Associate Director, Strategic Planning
Cory Scott
NEEA Board Chair
Pacific Power
Director, Customer Solutions
Bob Stolarski
Puget Sound Energy
Director, Customer Energy Management
Kim Thompson
Bonneville Power Administration
Northwest Requirements Marketing Vice President
Deb Young
NorthWestern Energy
Program Consultant