The Applicants have taken the following actions to comply with the EO standards:

Transcription

1 MECA Electric Cooperative Collaborative Energy Optimization Annual Report for 2015 MPSC Case s U 17778, U 17781, U 17782, U 17783, U 17784, U 17785, U 17786, and U INTRODUCTION Pursuant to 2008 Public Act 295 (PA 295), the Alger Delta Cooperative Electric Association, Cloverland Electric Cooperative, Great Lakes Energy Cooperative, Midwest Energy Cooperative, Ontonagon County Rural Electrification Association, Presque Isle Electric & Gas Co Op, Thumb Electric Cooperative, and HomeWorks Tri County Electric Cooperative (collectively, Applicants ), excluding Cherryland Electric Cooperative, are filing this annual energy optimization (EO) report with the Michigan Public Service Commission (MPSC). PA 295 SECTION 97 SUBSECTIONS 1 3 REQUIREMENTS Section 97 (1) Each provider shall submit to the commission an annual report that provides information relating to the actions taken by the provider to comply with the energy optimization standards. The Applicants have taken the following actions to comply with the EO standards: Filed a 4 year Energy Optimization plan with the MPSC on August 1, 2011 as required by PA 295 (See MPSC Docket Nos. U 16678, U 16681, U 16682, U 16683, U 16684, U 16685, U 16686, and U 16687). The EO Plan was approved by the MPSC on November 10, Overall administration of the EO programs was the responsibility of the Michigan Electric Cooperative Association (MECA). Began implementing the EO Plan on January 1, o WECC was selected to implement all Residential, Commercial, and Industrial Programs, the Applicant s Energy Optimization (EO) website the Tracking System, and Rebate Processing Center. Contracted with KEMA, Inc. (doing business as DNV GL) as the independent 3 rd party evaluation contractor for the certification of kwh savings. Contracted with Morgan Marketing Partners (MMP) to design the Energy Optimization Programs and perform the cost effectiveness test calculations. Section 97 (2) Annual reports under subsection (1) shall include the following: (a) the number of energy optimization credits that the provider generated during the reporting period. (b) Expenditures made in the past year and anticipated future expenditures to comply with this subpart. (c) Any other information that the commission determines necessary. The report is attached as consisting of 9 pages, Exhibit A 2 consisting of 1 page, and DNV GL 2015 Certification of achieved kwh consisting of 2 pages. Section 97 (3) Concurrent with the submission of each report under subsection (1), a cooperative electric utility shall submit a summary of the report to its members in a periodical issued by an association of rural electric cooperatives and to its board of directors. MECA EO Collaborative 2015 Annual Report Page 1

2 Alger Delta Cooperative Electric Association, Cloverland Electric Cooperative, Great Lakes Energy Cooperative, HomeWorks Tri County Electric Cooperative, Midwest Energy, Ontonagon County Rural Electrification Association, Presque Isle Electric & Gas Co Op, and Thumb Electric Cooperative will publish a summary of this report in the September issue of the Michigan Country Lines Magazine to be mailed on Friday, September 2, Separately in a direct mailing or in person, each cooperative will provide a copy of the annual report to its Board of Directors. This report will be posted to the MECA EO Collaborative website at energy.org. Section 71 (3)(i) Include a process for obtaining an independent expert evaluation of the actual energy optimization programs to verify the incremental energy savings from each energy optimization program for purposes of section 77. On December 28, 2010, MECA issued a Request for Proposal to 32 evaluation contractors for the independent 3 rd party evaluation of the MECA EO Collaborative Programs for 8 cooperatives and 4 Upper Peninsula municipals. On January 22, 2011, MECA received bids from 4 of those contractors, (2 contractors submitted 1 bid with the other working as a subcontractor) resulting in 3 viable bids from which KEMA was selected. MEETING WITH COMMISSION STAFF REGARDING TREATMENT OF kwh CARRY FORWARD On November 18, 2015 MECA met with Commission Staff to discuss how the kwh carryforward was reported in the Annual Report. Historically MECA had been reporting the carryforward by reducing or increasing the next year s kwh goal. The report made it appear as if MECA was reducing or increasing the statutory goal when in fact MECA was only showing the remaining kwh that needed to be achieved in the following year after considering the reporting year s over or under achievement (carry forward). MECA agreed to present the kwh achievement, statutory goal, and subsequent kwh carry forward in a way that retains the statutory goals approved in the 4 year plan. Previous reporting methodology: G A SD +or CF = FYG where: G = Either the Statutory Goal or the Adjusted Goal after applying the previous year s carryforward over achievement or under achievement A = Actual kwh Achieved in the reporting year SD = Self Direct members kwh achievement or carry forward CF = Carry Forward kwh FYG = Following Year achievable goal MECA EO Collaborative 2015 Annual Report Page 2

3 Current and future reporting methodology: G +or CF A SD = T where: G = CF = A = SD = T = Statutory Goal approved in current 4 year plan Carry forward (either in excess that reduces the necessary achievable kwh or a deficit that increases the required achievable kwh to meet statutory goal by subtracting the previous year s Goal from the previous year s Total. Actual kwh achieved during the reporting period Self Direct member s kwh achievements or carry forward Sum of the carry forward, current year achieved, and current year self direct presents the actual kwh achieved and the self direct carry forward. The achieved carry forward from the previous year was either added to or subtracted from the 2015 Goal (as has been done previously), and also includes the EO expenditures and reporting year budgets. presents data for the eight cooperative EO Collaborative members. The four municipal EO Collaborative members reported previously under the Michigan Municipal Electric Association filing (MEEA). Exhibit A 2 presents the actual kwh achieved, self direct kwh contributions, and carry forward while preserving the original statutory goals that were approved in our EO Plan. Exhibit A 2 is also used in calculating our carry forward into Exhibit A 2 presents data for the eight cooperative EO Collaborative members as well as the four municipal EO Collaborative members as this exhibit is used for calculating the carry forward into 2016 for all 2015 EO Collaborative members. Table 1 below highlights 2015 data that is extracted from Exhibit A 2: MECA EO Collaborative 2015 Annual Report Page 3

4 Table 1: 2015 Cooperative / Municipal Goal Carry Forward Achieved Self Direct Total Alger Delta 572,254 30, , ,808 Cloverland Electric 7,929,262 1,043,559 7,647, ,691,501 Great Lakes Energy 13,210,313 3,510,024 10,184, ,694,421 HomeWorks Tri County 3,151, ,246 2,765,109 72,000 3,197,355 Midwest Energy 6,037, ,340 6,068, ,327,766 Ontonagon 248, ,030 18, ,318 Presque Isle Electric 2,329, ,326 2,053, ,391,956 Thumb Electric 1,534,006 14,676 1,681, ,696,066 Total Cooperatives 35,013,280 5,925,635 31,117,556 72,000 37,115,191 Escanaba 1,419, ,471, ,472,201 Marquette 3,070, ,261 2,727, ,126,429 Newberry 199,058 7, , ,274 Stephenson 58,628 1,677 88, ,495 Total Municipals 4,747, ,616 4,518, ,928,399 Total EO Collaborative 39,760,359 6,335,251 35,636,339 72,000 42,043,590 MECA EO Collaborative 2015 Annual Report Page 4

5 Carry forward into 2016 The carry forward into 2016 for the twelve MECA EO Collaborative members is 2,283 MW (exhibit A 2, column AB, line 18 and Table 1 below). This represents 5.6% of next year s 2016 Collaborative goal, and 5.7% of the 2015 Collaborative goal. Line # Table 2: 2015 Cooperative / Municipal Carry forward 1 into Alger Delta 156,554 3 Cloverland Electric 762,239 4 Great Lakes Energy 484,108 5 HomeWorks Tri County 45,734 6 Midwest Energy 289,844 7 Ontonagon 138,835 8 Presque Isle Electric 62,537 9 Thumb Electric 162, Total Cooperatives 2,101, Escanaba 52, Marquette 56, Newberry 40, Stephenson 31, Total Municipals 181, Total EO Collaborative 2,283,231 MECA EO Collaborative 2015 Annual Report Page 5

6 Michigan Public Service Commission Michigan Electric Cooperative Association (MECA) All Cooperatives Energy Optimization Plan Program Costs Portfolio Summary for the year ended December 31, 2015 Case : U & Page 1 of Actual 2015 Plan (O) U: Plan Actual USRC CEE KWh T Result KWh of KWh of Savings Cost Result ct./kwh Savings Applica Savings Applica Actual "O" Actual "O" s(1) (2) (3) Cost tions (3) Cost tions "(U)" Plan "(U)" Plan 1 Residential KWh savings and cost 2 Low income services 1,016,409 $ 294,138 20,594 1,142,327 $ 412,539 (125,918) $ (118,401) 3 Energy star products 6,973,593 1,178, ,256 4,753,662 2,422,037 2,219,931 (1,243,430) 4 Appliance recycling 2,707, ,651 2,302 7,563, ,087 (4,855,533) (59,436) 5 Efficient HVAC equipment 1,043, ,268 2,122 (168,896) 261,409 1,212,318 25,859 6 Audit / kits 216,879 42, ,542 42,426 (299,663) (376) 7 Farm services 573,535 63, ,403 86,710 (403,868) (23,404) 8 X Educational services 542,380 77, , ,040 - (69,207) 9 X Pilot programs 903, , , ,069-21, Co op self implemented, HVAC Y Co op self implemented, miscellaneous Total residential KWH savings and cost 13,977,844 2,592, ,964 16,230,577 4,059,317 (2,252,733) (1,466,853) 13 Commercial & industrial KWH savings and cost 14 X Self directed customers (1 customer) ^ 72, , General business services ** 16,009,081 1,798,315 26,796 11,195,091 1,998,308 4,813,990 (199,993) 16 X Educational services 423,988 57, ,988 80,907 - (23,450) 17 X Pilot programs 706,648 93, , ,847 - (41,761) 18 Y Co op self implement Total C & I KWH savings and cost 17,211,717 1,948,858 26,796 12,397,727 2,214,062 4,813,990 (265,204) 20 Portfolio level costs 21 MECA overall administration 308, ,355 19, Cooperative overhead / indirect 536, , , Tracking 119, ,728 (1,861) 24 Evaluation 26, ,735 (471,891) 25 Total portfolio level costs 991,866 1,324,894 (333,028) 26 Total, all costs / alloications $ 5,533, ,760 $ 7,598,273 $ (2,065,085) 27 Total KWH savings &revenue less costs 31,189,561 28,628,304 2,561, BTU equivalents for KWH amounts 29 Residential 47,694,388, ,381,033,466.0 (7,686,644,884.3) 30 Commercial & industrial 58,728,822, ,302,805, ,426,017, Total BTU equivalents 106,423,211, ,683,838, ,739,372,582.4 X Only charges from WECC are to be recorded for these programs. Y Only direct co op EO costs are to be charged to these programs. ** Planned KWH savings for general business services exclude planned KWH savings from self directed customer for firs five months of ^ Actual and planned KWH savings are computed at 6,000 per month for the first five months of 2015 as customer changed to a regular customer 06/01/15.

7 Report by Alger Delta for Michigan Electric Cooperative Association (MECA) Energy Optimization Monthly Progress Report for the year ended December 31, 2015 Case : U Page 2 of 9 USRC CEE 2015 Actual 2015 Plan Variance: Plan Actual KWh Revenue T Result KWh of KWh of Savings & Cost Result ct./kwh Savings Revenue Applica Savings Revenue Applica Actual "O" Actual "O" s(1) (2) (3) & Cost tions (3) & Cost tions "(U)" Plan "(U)" Plan 1 Revenues 2 Residential $ 114,757 $ 180,540 $ (65,783) 3 Low income at % of residential and C & I revenue 8,301 12,695 (4,394) 4 Plus self directed low income fees 5 Total low income revenue 8,301 12,695 (4,394) 6 Commercial & industrial 29,849 40,599 (10,750) 7 Total surcharge revenue 152, ,834 (80,927) 8 Residential KWh savings and cost 9 Low income services 7,303 5, ,805 10,626 (71,502) (5,204) 10 Energy star products 74,496 17,430 1,682 24,448 54,781 50,048 (37,351) 11 Appliance recycling 47,248 8, ,658 9,993 (93,410) (1,410) 12 Efficient HVAC equipment 94,646 7, ,780 5,973 74,866 2, Audit / kits 13,770 1,076 3, , Farm services 10,368 1, ,764 1,975 (28,396) (454) 15 X Educational services 12,352 1,716 12,352 3,953 (2,237) 16 X Pilot programs 20,587 2,952 20,587 6,589 (3,637) 17 Co op self implemented, HVAC 18 Y Co op self implemented, miscellaneous 19 Total residential KWH savings and cost 280,770 46,683 2, ,587 94,850 (57,817) (48,167) 20 Commercial & industrial KWH savings and cost 21 X Self directed customers 22 General business servicese 408,426 21, ,204 16, ,222 5, X Educational services 3, , (346) 24 X Pilot programs 5, ,737 1,337 (569) 25 Y Co op self implement 26 Total C & I KWH savings and cost 417,605 22, ,383 18, ,222 4, Portfolio level costs 28 MECA overall administration 18,233 16,903 1, Cooperative overhead / indirect 93,158 11,692 81, Tracking 1,992 2,041 (49) 31 Evaluation ,675 (14,058) 32 Total portfolio level costs 114,000 45,311 68, Total, all costs / applications 183,629 2, ,523 25, Total KWH savings &revenue less costs ,375 $ (30,722) 526,970 $ 75, ,405 $ (106,033) 35 BTU/hr equivalents for KWH amounts 36 Residential 958,027, ,155,306,923.4 (197,279,814.1) 37 Commerical & industrial 1,424,927, ,789, ,138, Total BTU/hr equivalents 2,382,954, ,798,096, ,858,199.4 X Only charges from WECC are to recorded for these programs Y Only direct co op EO costs are to be charges to these programs.

8 Report by Cloverland for Michigan Electric Cooperative Association (MECA) Energy Optimization Monthly Progress Report for the year ended December 31, 2015 Case : U Page 3 of 9 USRC CEE 2015 Actual 2015 Plan Variance: Plan Actual KWh Revenue T Result KWh of KWh of Savings & Cost Result ct./kwh Savings Revenue Applica Savings Revenue Applica Actual "O" Actual "O" s(1) (2) (3) & Cost tions (3) & Cost tions "(U)" Plan "(U)" Plan 1 Revenues 2 Residential $ 515,896 $ 572,754 $ (56,858) 3 Low income at % of residential and C & I revenue 66,675 79,778 (13,103) 4 Plus self directed low income fees 5 Total low income revenue 66,675 79,778 (13,103) 6 Commercial & industrial 645, ,940 (171,396) 7 Total surcharge revenue 1,228,115 1,469,472 (241,357) 8 Residential KWh savings and cost 9 Low income services 157,854 43,670 3, ,436 68,129 33,418 (24,459) 10 Energy star products 1,527, ,027 54, , , ,160 (161,199) 11 Appliance recycling 395,402 58, ,046,786 64,073 (651,384) (5,716) 12 Efficient HVAC equipment 276,947 48, ,750 38, ,197 10, Audit / kits 20,655 5,091 19,830 6, (1,061) 14 Farm services 45,528 8, ,130 12,661 (169,602) (4,550) 15 X Educational services 79,196 10,944 79,196 20,788 (9,844) 16 X Pilot programs 131,993 18, ,993 34,646 (15,854) 17 Co op self implemented, HVAC 18 Y Co op self implemented, miscellaneous 19 Total residential KWH savings and cost 2,635, ,828 59,414 2,581, ,970 53,614 (212,142) 20 Commercial & industrial KWH savings and cost 21 X Self directed customers 22 General business services 4,640, ,376 20,535 4,180, , ,392 (82,822) 23 X Educational services 139,652 18, ,652 26,088 (7,296) 24 X Pilot programs 232,754 31, ,754 43,480 (12,172) 25 Y Co op self implement 26 Total C & I KWH savings and cost 5,012, ,476 20,535 4,552, , ,392 (102,290) 27 Portfolio level costs 28 MECA overall administration 62,102 48,878 13, Cooperative overhead / indirect 43,155 73,474 (30,319) 30 Tracking 27,600 28,269 (669) 31 Evaluation 5,380 88,168 (82,788) 32 Total portfolio level costs 138, ,789 (100,552) 33 Total, all costs / applications 1,147,541 79,949 1,562,525 (414,984) 34 Total KWH savings &revenue less costs 4.7 7,647,942 $ 80,574 7,133,936 $ (93,053) 514,006 $ 173, BTU/hr equivalents for KWH 36 Residential 8,991,328, ,808,389, ,938, Commercial & industrial 17,104,535, ,533,612, ,570,922, Total BTU/hr equivalents 26,095,864, ,342,002, ,753,861,460.8 X Only charges from WECC are to be recorded for these programs. Y Only direct co op costs are to be charges to these programs.

9 Report by Great Lakes for Michigan Electric Cooperative Association (MECA) Energy Optimization Monthly Progress Report for the year ended December 31, 2015 Case : U Page 4 of 9 USRC CEE 2015 Actual 2015 Plan Variance: Plan Actual KWh Revenue T Result KWh of KWh of Savings & Cost Result ct./kwh Savings Revenue Applica Savings Revenue Applica Actual "O" Actual "O" s(1) (2) (3) & Cost tions (3) & Cost tions "(U)" {lan "(U)" {lan 1 Revenues 2 Residential $ 1,536,425 $ 2,124,728 $ (588,303) 3 Low income at % of residential and C & I revenue 138, ,097 (45,643) 4 Plus self directed low income fees 5 Total low income revenue 138, ,097 (45,643) 6 Commercial & industrial 875,395 1,082,165 (206,770) 7 Total surcharge revenue 2,550,274 3,390,990 (840,716) 8 Residential KWh savings and cost 9 Low income services 297, ,415 5, , ,371 (58,693) (41,956) 10 Energy star products 2,276, ,700 78, , ,965 1,713,338 (542,265) 11 Appliance recycling 1,189, ,390 1,004 2,757, ,934 (1,568,756) (21,544) 12 Efficient HVAC equipment 261, , , , ,528 6, Audit / kits 112,914 15, ,862 16,605 (37,948) (1,416) 14 Farm services 154,394 23, ,166 33,769 (403,772) (10,170) 15 X Educational services 211,230 28, ,230 57,154 (29,026) 16 X Pilot programs 352,050 48, ,050 95,257 (46,981) 17 Co op self implemented, HVAC 18 Y Co op self implemented, miscellaneous 19 Total residential KWH savings and cost 4,854, ,359 85,544 5,043,411 1,572,414 (189,303) (687,055) 20 Commercial & industrial KWH savings and cost 21 X Self directed customers 22 General business services 4,921, ,944 2,699 3,908, ,875 1,013,053 (120,931) 23 X Educational services 153,375 21, ,375 29,253 (7,708) 24 X Pilot programs 255,625 32, ,625 48,755 (15,880) 25 Y Co op self implement 26 Total C & I KWH savings and cost 5,330, ,364 2,699 4,317, ,883 1,013,053 (144,519) 27 Portfolio level costs 28 MECA overall administration 112,578 87,999 24, Cooperative overhead / indirect 148, ,549 (21,357) 30 Tracking 45,576 45,931 (355) 31 Evaluation 10, ,459 (193,082) 32 Total portfolio level costs 316, ,938 (190,215) 33 Total, all costs / applications 1,858,446 88,243 2,880,235 (1,021,789) 34 Total KWH savings &revenue less costs ,184,397 $ 691,828 9,360,647 $ 510, ,750 $ 181, BTU/hr equivalents for KWH amounts 36 Residential 16,562,905, ,208,834,496.4 (645,928,717.1) 37 Commercial & industrial 18,187,702, ,731,022, ,456,680, Total BTU/hr equivalents 34,750,608, ,939,856, ,810,751,972.4 X Y Only charges from WECC are to be recorded for these programs. Only direct co op EO costs are to be charges to thses programs.

10 Report by HomeWorks for Michigan Electric Cooperative Association (MECA) Energy Optimization Monthly Progress Report for the year ended December 31, 2015 Case : U Page 5 of 9 USRC CEE 2015 Actual 2015 Plan Variance: Plan Actual KWh Revenue T Result KWh of KWh of Savings & Cost Result ct./kwh Savings Revenue Applica Savings Revenue Applica Actual "O" Actual "O" s(1) (2) (3) & Cost tions (3) & Cost tions "(U)" Plan "(U)" Plan 1 Revenues 2 Residential $ 356,958 $ 494,570 $ (137,612) 3 Low income at % of residential and C & I revenue 29,945 40,182 (10,237) 4 Plus self directed low income fees Total low income revenue 30,448 40,685 (10,237) 6 Commercial & industrial 164, ,385 (40,715) 7 Total surcharge revenue 552, ,640 (188,564) 8 Residential KWh savings and cost 9 Low income services 118,974 30,285 2, ,404 40,314 10,570 (10,029) 10 Energy star products 1,084, ,007 30, , , ,427 (96,881) 11 Appliance recycling 226,323 40, ,358 47,958 (705,035) (6,985) 12 Efficient HVAC equipment 52,643 25, (51,146) 28, ,789 (3,190) 13 Audit / kits 20,655 3,928 76,399 4,605 (55,744) (677) 14 Farm services 17,982 3, ,426 9,365 (45,444) (5,458) 15 X Educational services 58,578 9,473 58,578 15,659 (6,186) 16 X Pilot programs 97,630 13,476 97,630 26,099 (12,623) 17 Co op self implemented, HVAC 18 Y Co op self implemented, miscellaneous 19 Total residential KWH savings and cost 1,677, ,522 33,944 1,642, ,551 34,563 (142,029) 20 Commercial & industrial KWH savings and cost 21 X Self directed customers (1 customer) ^ 72,000 72, Geneal business services ** 1,012, , , , ,733 (24,459) 23 X Educational services 28,407 3,732 28,407 5,550 (1,818) 24 X Pilot programs 47,345 6,216 47,345 9,250 (3,034) 25 Y Co op self implement 26 Total C & I KWH savings and cost 1,159, , ,053, , ,733 (29,311) 27 Portfolio level costs 28 MECA overall administration 34,317 30,485 3, Cooperative overhead / indirect 39,421 37,007 2, Tracking 10,812 10,826 (14) 31 Evaluation 2,457 44,408 (41,951) 32 Total portfolio level costs 87, ,726 (35,719) 33 Total, all costs / applications 499,903 34, ,962 (207,059) 34 Total KWH savings &revenue less costs 4.2 2,837,110 $ 52,173 2,695,814 $ 33, ,296 $ 18, BTU/hr equivalent for KWH amounts 36 Residential 5,723,233, ,605,299, ,933, Commercial & industrial 3,957,388, ,593,200, ,188, Total/hr BTU equivalents 9,680,622, ,198,500, ,122,016.1 X Only charges from WECC are to be recorded for thses programs. ** Planned KWH savings for general business services exclude planned KWH Y Only direct co op EO costs are to be charged to thses programs. savings from self directed customer for first five months of ^ Annual and planned KWH savings are computed at 6,000 per month for first five months of 2015 as that customer change to a regular customer 06/01/15.

11 Report by Midwest for Michigan Electric Cooperative Association (MECA) Energy Optimization Monthly Progress Report for the yearended December 31, 2015 Case : U Page 6 of 9 USRC CEE 2015 Actual 2015 Plan Variance: Plan Actual KWh Revenue T Result KWh of KWh of Savings & Cost Result ct./kwh Savings Revenue Applica Savings Revenue Applica Actual "O" Actual "O" s(1) (2) (3) & Cost tions (3) & Cost tions "(U)" Plan "(U)" Plan 1 Revenues 2 Residential $ 617,076 $ 804,869 $ (187,793) 3 Low income at % of residential and C & I revenue 64,581 74,443 (9,862) 4 Plus self directed low income fees 5 Total low income revenue 64,581 74,443 (9,862) 6 Commercial & industrial 490, ,905 (1,443) 7 Total surcharge revenue 1,172,119 1,371,217 (199,098) 8 Residential KWh savings and cost 9 Low income services 201,534 55,021 4, ,044 65,481 (58,510) (10,460) 10 Energy star products 1,062, ,480 29,803 1,336, ,998 (273,972) (202,518) 11 Appliance recycling 327,743 60, ,773,967 77,896 (1,446,224) (17,149) 12 Efficient HVAC equipment 238,959 62, (235,229) 46, ,188 15, Audit / kits 11,705 10, ,037 7,480 (184,332) 3, Farm services 65,086 14, ,274 15,211 (257,188) (397) 15 X Educational services 95,146 13,673 95,146 25,161 (11,488) 16 X Pilot programs 158, , ,576 41, , Co op self implemented, HVAC 18 Y Co op self implemented, miscellaneous 19 Total residential KWH savings and cost 2,161, ,650 35,143 3,907, ,718 (1,746,038) (113,068) 20 Commercial & industrial KWH savings and cost 21 X Self directed customers 22 General business services 3,716, ,829 1,560 1,528, ,994 2,187,951 9, X Educational services 71,501 9,236 71,501 13,668 (4,432) 24 X Pilot programs 119,169 15, ,169 22,780 (7,324) 25 Y Co op self implement 26 Total C & I KWH savings and cost 3,907, ,521 1,560 1,719, ,442 2,187,951 (1,921) 27 Portfolio level costs 28 MECA overall administration 24,475 42,911 (18,436) 29 Cooperative overhead / indirect 121,814 68,561 53, Tracking 20,400 20, Evaluation 5,318 82,273 (76,955) 32 Total portfolio level costs 172, ,126 (42,119) 33 Total, all costs / applications 1,137,178 36,703 1,294,286 (157,108) 34 Total KWH savings &revenue less costs 4.4 6,068,427 $ 34,941 5,626,514 $ 76, ,913 $ (41,990) 35 BTU/hr equivalents for KWH amounts 36 Residential 7,373,710, ,331,440,110.4 (5,957,729,593.4) 37 Commercial & industrial 13,332,624, ,867,024, ,465,599, Total BTU/hr equivalents 20,706,334, ,198,464, ,507,869,907.7 X Only charges from WECC are to be recorded for these programs. Y Only direct co op EO costs are to be charged to these programs.

12 Report by Ontonagon for Michigan Electric Cooperative Association (MECA) Energy Optimization Monthly Progress Report for the year ended December 31, 2015 Case : U Page 7 of 9 USRC CEE 2015 Actual 2015Plan Variance: Plan Actual KWh Revenue T Result KWh of KWh of Savings & Cost Result ct./kwh Savings Revenue Applica Savings Revenue Applica Actual "O" Actual "O" s(1) (2) (3) & Cost tions (3) & Cost tions "(U)" Plan "(U)" Plan 1 Revenues 2 Residential $ 50,546 $ 81,920 $ (31,374) 3 Low income at % of residential and C & I revenue 3,666 5,621 (1,955) 4 Plus self directed low income fees 5 Total low income revenue 3,666 5,621 (1,955) 6 Commercial & industrial 11,785 16,003 (4,218) 7 Total surcharge revenue 65, ,544 (37,547) 8 Residential KWh savings and cost 9 Low income services 1,812 45,327 5,718 (45,327) (3,906) 10 Energy star products 4,725 (339,062) 24, ,062 (19,546) 11 Appliance recycling 2, ,656 4,670 (107,656) (2,222) 12 Efficient HVAC equipment 13 Audit / kits 300 (12,504) ,504 (125) 14 Farm services , (19,206) (549) 15 X Educational services 5, ,539 1,903 (1,207) 16 X Pilot programs 9,231 1,200 9,231 3,172 (1,972) 17 Co op self implemented, HVAC 18 Y Co op self implemented, miscellaneous 19 Total residential KWH savings and cost 14,770 11,517 (164,607) 41, ,377 (29,527) 20 Commercial & industrial KWH savings and cost 21 X Self directed customers 22 Geneal business services 7,459 34,195 6,219 (34,195) 1, X Educational services 1, , (166) 24 X Pilot programs 2, , (289) 25 Y Co op self implement 26 Total C & I KWH savings and cost 3,518 7,927 37,713 7,142 (34,195) Portfolio level costs 28 MECA overall administration 14,658 14, Cooperative overhead / indirect 7,000 5,177 1, Tracking (6) 31 Evaluation 292 6,213 (5,921) 32 Total portfolio level costs 22,802 26,791 (3,989) 33 Total, all costs / applications 42,246 74,977 (32,731) 34 Total KWH savings &revenue less costs ,288 $ 23,751 (126,894) $ 28, ,182 $ (4,816) 35 BTU/hr equivalents for KWH amounts 36 Residential 50,397,337.3 (561,662,458.2) 612,059, Commercial & industrial 12,003, ,682,111.2 (116,678,195.6) 38 Total BTU/hr equivalents 62,401,252.9 (432,980,347.0) 495,381,599.9 X Only charges from WECC are to be recorded for these programs. Y Only direct co op EO costs are to be charges to these programs.

13 Report by Presque Isle for Michigan Electric Cooperative Association (MECA) Energy Optimization Monthly Progress Report for the year ended December 31, 2015 Case : U Page 8 of 9 USRC CEE 2015 Actual 2015 Plan Variance: Plan Actual KWh Revenue T Result KWh of KWh of Savings & Cost Result ct./kwh Savings Revenue Applica Savings Revenue Applica Actual "O" Actual "O" s(1) (2) (3) & Cost tions (3) & Cost tions "(U)" Plan "(U)" Plan 1 Revenues 2 Residential $ 360,083 $ 462,161 $ (102,078) 3 Low income at % of residential and C & I revenue 28,007 34,593 (6,586) 4 Plus self directed low income fees 5 Total low income revenue 28,007 34,593 (6,586) 6 Commercial & industrial 127, ,438 (12,630) 7 Total surcharge revenue 515, ,192 (121,294) 8 Residential KWh savings and cost 9 Low income services 80,100 32,351 1,182 64,337 46,724 15,763 (14,373) 10 Energy star products 713, ,341 23, , ,336 (62,939) (86,995) 11 Appliance recycling 368,995 35, ,927 36, ,068 (676) 12 Efficient HVAC equipment 39,758 20, ,411 21,625 35,347 (979) 13 Audit / kits 30,983 3,426 46,916 3,474 (15,933) (48) 14 Farm services 111,370 11, ,141 7,236 (27,771) 3, X Educational services 45,261 6,324 45,261 12,831 (6,507) 16 X Pilot programs 75,436 10,848 75,436 21,385 (10,537) 17 Co op self implemented, HVAC 18 Y Co op self implemented, miscellaneous 19 Total residential KWH savings and cost 1,465, ,460 25,472 1,378, ,793 87,535 (116,333) 20 Commercial & industrial KWH savings and cost 21 X Self directed customers 22 General business services 537,243 76, ,082 89,693 35,161 (13,619) 23 X Educational services 19,031 2,580 19,031 3,742 (1,162) 24 X Pilot programs 31,718 4,296 31,718 6,237 (1,941) 25 Y Co op self implement 26 Total C & I KWH savings and cost 587,992 82, ,831 99,672 35,161 (16,722) 27 Portfolio level costs 28 MECA overall administration 11,227 26,687 (15,460) 29 Cooperative overhead / indirect 30,274 31,860 (1,586) 30 Tracking 7,403 8,194 (791) 31 Evaluation 1,187 38,232 (37,045) 32 Total portfolio level costs 50, ,973 (54,882) 33 Total, all costs / applications 364,501 26, ,438 (187,937) 34 Total KWH savings &revenue less costs 4.1 2,053,631 $ 151,397 1,930,935 $ 84, ,696 $ 66, BTU/hr equivalents of KWH amounts 36 Residential 5,000,968, ,702,286, ,681, Commercial & industrial 2,006,312, ,886,337, ,974, Total BTU/hr equivalents 7,007,280, ,588,624, ,656,174.8 X Y Only charges from WECC are to be recorded for these programs. Only direct co op EO costs are to be charges to these programs.

14 Report by Thumb for Michigan Electric Cooperative Association (MECA) Energy Optimization Monthly Progress Report for the year ended December 31, 2015 Case : U Page 9 of 9 USRC CEE 2015 Actual 2015 Plan Variance: Plan Actual KWh Revenue T Result KWh of KWh of Savings & Cost Result ct./kwh Savings Revenue Applica Savings Revenue Applica Actual "O" Actual "O" s(1) (2) (3) & Cost tions (3) & Cost tions "(U)" Plan "(U)" Plan 1 Revenues 2 Residential $ 264,056 $ 281,937 $ (17,881) 3 Low income at % of residential and C & I revenue 18,387 19,279 (892) 4 Plus self directed low income fees 5 Total low income revenue 18,387 19,279 (892) 6 Commercial & industrial 56,241 53,904 2,337 7 Total surcharge revenue 338, ,120 (16,436) 8 Residential KWh savings and cost 9 Low income services 153,362 22,162 2, ,999 30,176 48,363 (8,014) 10 Energy star products 234,991 58,897 5,037 1,129, ,572 (894,193) (96,675) 11 Appliance recycling 152,877 24, ,013 28,381 (426,136) (3,734) 12 Efficient HVAC equipment 79,349 12, (60,054) 16, ,403 (4,292) 13 Audit / kits 6,197 2,170 35,809 2,725 (29,612) (555) 14 Farm services 168, (378,704) 5, ,511 (5,608) 15 X Educational services 35,078 6,879 35,078 9,591 (2,712) 16 X Pilot programs 58,463 19,044 58,463 15,986 3, Co op self implemented, HVAC 18 Y Co op self implemented, miscellaneous 19 Total residential KWH savings and cost 889, ,445 8,393 1,503, ,977 (614,664) (118,532) 20 Commercial & industrial KWH savings and cost 21 X Self directed customers 22 Beneral business services 772,905 59, (42,768) 34, ,673 25, X Educational services 7, ,261 1,458 (522) 24 X Pilot programs 12,101 1,879 12,101 2,431 (552) 25 Y Co op self implement 26 Total C & I KWH savings and cost 792,267 62, (23,406) 38, ,673 24, Portfolio level costs 28 MECA overall administration 31,089 20,949 10, Cooperative overhead / indirect 53,462 17,756 35, Tracking 5,232 5, Evaluation 1,216 21,307 (20,091) 32 Total portfolio level costs 90,999 65,240 25, Total, all costs / applications 299,744 8, ,327 (68,583) 34 Total KWH savings &revenue less costs 3.9 1,681,391 $ 38,940 1,480,382 $ (13,207) 201,009 $ 52, BTU/hr equivalents for KWH amounts 36 Residential 3,033,817, ,131,138,193.9 (2,097,320,850.3) 37 Commercial & industrial 2,703,327,505.9 (79,864,595.7) 2,783,192, Total BTU/hr equivalents 5,737,144, ,051,273, ,871,251.3 X Y Only charges from WECC are to be recorded for these programs. Onlyh direct co op EO costs are to be charged to these programs.

15 Summary of kwh Achieved including Carry forward using approved Statutory Goals Exhibit A 2 page 1 of 1 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AB Line # Total Cooperative / Municipal (D + E) (F C) (H + I + J) (K G) (M + N + O) (P L) (R + S + T) (D + I + N + S) (E + J + O + T) (X + Y) (Z V) 1 Goal Achieved Self Direct Total Goal Carry Forward Achieved Self Direct Total Goal Carry Forward Achieved Self Direct Total Goal Carry Forward Achieved Self Direct Total Goal Carry Forward Achieved Self Direct Total Carry forward 2 Alger Delta 588, , , ,741 69, , , , , , , ,254 30, , ,808 2,319, ,476, ,476, ,554 3 Cloverland Electric 8,149,044 6,470, ,900 7,365,060 8,072,976 (783,984) 9,086, ,000 8,763,551 7,984, ,575 7,876, ,000 9,028,006 7,929,262 1,043,559 7,647, ,691,501 32,135, ,081,068 1,816,900 32,897, ,239 4 Great Lakes Energy 13,240,449 10,340, ,340,706 13,302,437 (2,899,743) 19,478, ,579,005 13,316,564 3,276,568 13,550, ,826,588 13,210,313 3,510,024 10,184, ,694,421 53,069, ,553, ,553, ,108 5 HomeWorks Tri County 3,120,863 2,116, ,000 2,483,195 3,134,594 (637,668) 3,500, ,000 3,214,352 3,180,263 79,758 3,388,751 72,000 3,540,509 3,151, ,246 2,765,109 72,000 3,197,355 12,587, ,770, ,000 12,633,075 45,734 6 Midwest Energy 5,875,288 5,151, ,151,505 5,904,720 (723,783) 6,879, ,155,744 5,943, ,024 5,951, ,202,499 6,037, ,340 6,068, ,327,766 23,761, ,050, ,050, ,844 7 Ontonagon 247, , , ,689 5, , , , , , , , ,030 18, , , ,130, ,130, ,835 8 Presque Isle Electric 2,362,086 1,980, ,980,990 2,357,010 (381,096) 3,176, ,794,999 2,351, ,989 2,251, ,689,427 2,329, ,326 2,053, ,391,956 9,399, ,462, ,462,153 62,537 9 Thumb Electric 1,506,961 1,688, ,688,502 1,512, ,541 1,784, ,965,675 1,532, ,464 1,093, ,547,157 1,534,006 14,676 1,681, ,696,066 6,085, ,247, ,247, , Total Cooperatives 35,090,423 28,658,635 1,261,900 29,920,535 35,113,378 (5,169,888) 45,261, ,000 40,904,435 35,133,941 5,791,057 34,735, ,000 41,059,576 35,013,280 5,925,635 31,117,556 72,000 37,115, ,351, ,773,033 2,679, ,452,933 2,101, % 12 Escanaba 1,427,606 1,338, ,338,008 1,399,161 (89,598) 1,614, ,524,470 1,418, ,309 1,293, ,418,943 1,419, ,471, ,472,201 5,664, ,717,119 5,717,119 52, Marquette 3,097,565 2,912, ,912,058 3,052,499 (185,507) 3,826, ,641,273 3,050, ,774 2,861, ,450,207 3,070, ,261 2,727, ,126,429 12,271, ,327,439 12,327,439 56, Newberry 191, , , ,460 51, , , ,903 63, , , ,058 7, , , , , ,238 40, Stephenson 60,047 68, ,002 59,560 7,955 75, ,435 58,976 23,875 36, ,653 58,628 1,677 88, , , , ,078 31, Total Municipals 4,776,819 4,561, ,561,529 4,705,680 (215,290) 5,722, ,507,464 4,724, ,784 4,332, ,134,592 4,747, ,616 4,518, ,928,399 18,954, ,135, ,135, , % 18 Total EO Collaborative 39,867,242 33,220,164 1,261,900 34,482,064 39,819,058 (5,385,178) 50,984, ,000 46,411,899 39,858,917 6,592,841 39,068, ,000 46,194,168 39,760,359 6,335,251 35,636,339 72,000 42,043, ,305, ,908,907 2,679, ,588,807 2,283, % 13.5% 116.6% 16.5% 115.9% 15.9% 105.7% 0.0% 101.4% 1.4% 20 % of 2016 goal = 5.60%

16 Memo to: Art Thayer, MECA From: Tim Hennessy, DNV GL. Santosh Lamichhane, DNV GL Date: Wednesday, February 17, 2016 Certificate of Savings from the 2015 Energy Optimization Programs of the Michigan Electric Cooperative Association Energy Optimization Collaborative 1 CERTIFICATION We, DNV GL, as an independent evaluation contractor, certify that the Michigan Electric Cooperative Association Energy Optimization Collaborative s (MECA-EOC) incremental energy saving for its 2015 Energy Optimization (EO) programs is 35,636,339 kwh. 2 BACKGROUND DNV GL conducted an annual independent expert study of the 2015 EO programs to certify the incremental energy savings. The study was completed in accordance with the Clean, Renewable, and Efficient Energy Act (Act 295 of 2008) and the EO Plans Settlement Agreements approved by the Michigan Public Service Commission (MPSC). The certification of savings is for programs implemented on behalf of eight cooperative utilities: Alger Delta, Cloverland, Great Lakes Energy, HomeWorks Tri-County, Midwest Energy, Ontonagon County REA, Presque Isle Electric and Gas, and Thumb Electric and four municipal utilities; City of Escanaba, Marquette Board of Light and Power, Newberry Water and Light Board, and City of Stephenson. DNV GL verified proper documentations and reviewed tracking data of the claimed energy savings to certify the incremental energy savings. The certification of savings for the specific programs and utilities in the collaborative are presented in Table 1 and Table 2. DNV GL 2 Hyde Road, Clark Lake, Michigan, Certificate Memo v4

17 Page 2 of 2 Table 1: Savings by Program Program kwh Savings Residential Low Income Services 1,093,918 Residential & Small Business ENERGY STAR Products 7,562,785 Residential Appliance Recycling 2,845,744 Residential HVAC Equipment 1,098,274 Residential Audit, Weatherization, & New Construction 227,960 Residential Educational Services 583,658 Residential Pilot Programs 972,764 Residential Farm Services 573,999 C&I General Business Services 19,307,298 C&I Educational Services 513,728 C&I Pilot Programs 856,213 Total 35,636,339 Table 2: Savings by Member Utility kwh Savings Alger Delta 698,374 Cloverland 7,647,942 Escanaba 1,471,409 Great Lakes Energy 10,184,397 HomeWorks Tri-County 2,765,109 Marquette 2,727,168 Midwest Energy 6,068,426 Newberry 231,388 Ontonagon 18,288 Presque Isle 2,053,630 Stephenson 88,818 Thumb Electric 1,681,390 Total 35,636,339 Certificate Memo v4