Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MIDAMERICAN ENERGY COMPANY ENERGY EFFICIENCY PLAN 2019-2023 PLAN DESCRIPTIONS TABLE OF CONTENTS Title Page Executive Summary --------------------------------------------------------------------------------------------------- 1 Residential Equipment Program ---------------------------------------------------------------------------------- 11 Residential Assessment Program --------------------------------------------------------------------------------- 19 Residential Behavioral Program ---------------------------------------------------------------------------------- 26 Residential Low Income Program -------------------------------------------------------------------------------- 32 Residential Load Management Program ------------------------------------------------------------------------ 41 Nonresidential Equipment Program ----------------------------------------------------------------------------- 47 Nonresidential Energy Solutions Program ---------------------------------------------------------------------- 56 Commercial New Construction Program ------------------------------------------------------------------------ 67 Nonresidential Load Management Program -------------------------------------------------------------------- 76 Appliance Recycling Program ------------------------------------------------------------------------------------- 82 Income Qualified Multifamily Housing Program --------------------------------------------------------------- 89 Education Program -------------------------------------------------------------------------------------------------- 98 Trees Program ----------------------------------------------------------------------------------------------------- 106 Assessments -------------------------------------------------------------------------------------------------------- 111 Support Functions ------------------------------------------------------------------------------------------------- 113 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 1 of 10 MidAmerican Energy Company Iowa Energy Efficiency Plan 2019-2023 Executive Summary General Description MidAmerican Energy Company (MidAmerican) submitted its 2019-2023 Energy Efficiency Plan on November 1, 2017 (“EEP-2017-0001 Plan”) in accordance with the requirements set forth in Chapter 35 of the Iowa Administrative Code (IAC). On May 4, 2018, the Iowa Legislature passed Senate File 2311 (“Omnibus Energy Bill”), which in pertinent part changed a number of energy efficiency provisions in Iowa Code § 476. These changes were significant enough that MidAmerican sought and received approval from the Iowa Utilities Board (Board) to withdraw its EEP-20170001 Plan1 and refile it. MidAmerican now files this 2019-2023 Energy Efficiency and Demand Response Plan (Docket No. EEP-2018-0002) (referenced throughout this Application Exhibit 1 simply as the “Plan”) to reflect the legislative intent of the Omnibus Energy Bill and to comply with the requirements set forth in Chapter 35 of the Iowa Administrative Code. MidAmerican does not anticipate that the Plan’s annual spending for each year will exceed the budget limits of 2% of annual electric retail rate revenue or 1.5% of annual natural gas retail rate revenue for energy efficiency programs; nor will this Plan exceed the budget limit of 2% of annual electric retail rate revenue for its demand response programs.2 The Plan will continue to provide a variety of energy efficiency programs to all customers, but at a reduced cost compared to the Current 2014-2018 Plan. MidAmerican’s significant and growing renewable energy portfolio and its goal of acheiving 100% renewable generation within the timeframe of the Plan brings unique challenges and impacts to programs and measures included in the Plan, such as significantly reduced avoided energy costs and greater inclusion of electric measures that result in significant peak savings. Additionally, the Omnibus Energy Bill’s requirement for the cumulative ratio of rate-payer impact cost-effectiveness test for the combined electric energy efficiency and demand response plans to be one or above to maintain stability of Plan offerings, has resulted in a unique mix of Plan programs and measures.3 The Plan includes new measures like smart thermostats to capture untapped market potential and opportunities like the Small Business Express offering to increase small and mid-size customer participation and depth of savings by incorporating new market sectors, technologies, and delivery strategy improvements. The Plan continues to offer customers in every sector the flexibility to participate in energy efficiency programs at many levels, based on their individual needs and building types. The Omnibus Energy Bill requires that the Board render a decision affirming a 2019-2023 energy efficiency and demand response plan no later than March 31, 2019. Therefore, MidAmerican anticipates beginning implementation of its approved Plan no later than April 1, 2019. Several of 1 The energy efficiency changes in the Omnibus Energy Bill also mark a noticeable departure from key components of MidAmerican’s current 2014-2018 energy efficiency plan (“Current 2014-2018 Plan”). See generally, In re MidAmerican Energy Company (Docket No. EEP-2012-0002). 2 PUBLIC UTILITIES—ELECTRIC VEHICLES—INFRASTRUCTURE, 2018 Iowa Legis. Serv. Ch. 1135, § 11 (S.F. 2311) (West). 3 Id. at § 9. 1 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 2 of 10 the programs described in this Plan are already in place and operational. There are significant changes to several of the assessment-based programs that will require time to transition to the new Plan. MidAmerican will collaborate with current and prospective contractors to minimize the transition period. The table below summarizes the programs included in the Plan, as well as program marketing names and target markets (by fuel). Summary of Iowa Plan Programs Program Residential Residential Equipment Residential Assessment Residential Load Management Residential Behavioral Residential Low Income Nonresidential Nonresidential Equipment (custom equipment served in Nonresidential Energy Solutions) Nonresidential Energy Solutions Commercial New Construction Nonresidential Load Management Multiple-Sectors Appliance Recycling Income-Qualified Multi-family Housing Education Trees Assessments (Regulatory) Marketing Name (where applicable) HomeCheck® Online SummerSaversm Home Energy Reports Fuel Natural Electric Gas      Curtailment           Trees Please!         Residential Programs Residential Equipment – This program provides rebates to encourage customers to purchase high-efficiency heating and cooling equipment in new and existing homes. The program will no longer require HVAC equipment to be installed by a System Adjustment and Verified Efficiency (SAVE) certified contractor. Residential Assessment – This program provides an interactive online energy assessment and energy savings suggestions, and offers an energy efficiency kit upon completion of the online assessment. Additionally, participation in this program encourages participation in other programs by using the online energy assessment tool as a promotional vehicle. This program will no longer include in-home energy assessments. 2 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 3 of 10 Residential Behavioral – This program is designed to encourage energy savings through behavioral modification. The program provides customers with Home Energy Reports that contain personalized information about their electric energy use and provide helpful ways to make their homes more efficient. The Residential Behavioral program empowers customers to better understand their energy usage and act on this knowledge, resulting in changed customer behavior. Additionally, participation in this program encourages participation in other programs by using the Home Energy Report as a promotional vehicle. Residential Low-Income – This program provides financial incentives and education to encourage energy efficiency adoption in existing low-income housing. The program is delivered through three separate residential components to meet the needs of different customer segments. The program includes statewide weatherization, supplemental weatherization, and Home Energy Reports. While statewide weatherization addresses single-family housing, supplemental weatherization and Home Energy Reports are available to both single-family and apartment dwellers. Residential Load Management – This program provides financial incentives to customers that allow MidAmerican to control participating customers’ central air conditioning systems on summer peak days. Customers may participate through the use of a qualifying advanced smart thermostat or a MidAmerican-installed load control receiver (LCR). Nonresidential Programs Nonresidential Equipment – The Nonresidential Equipment program provides financial incentives to customers installing specific energy efficient heating and cooling and lighting equipment in existing buildings. Cost-effective qualifying nonresidential custom projects for nonstandard equipment, new technologies, and alternate strategies may receive rebates through MidAmerican’s Nonresidential Energy Solutions program. Nonresidential Energy Solutions – This program promotes comprehensive energy efficiency for existing commercial buildings and industrial facilities. The program will provide services through two offerings: 1) Small Business Express; and 2) Direct Project Assistance. These offerings are tailored to the unique needs of customers by size and purpose. Business owners can increase bottom lines and their property values by lowering their monthly operating costs and investing in advanced efficient technologies, while improving building operations and comfort. Qualifying customers receive expert advice for project evaluation and financial incentives to help offset the costs for new energy efficiency investments. This program will also serve agriculture and marketrate multi-family customers. Commercial New Construction – This program promotes the design and construction of highefficiency commercial buildings, including new building construction and major renovations of existing buildings. The program is delivered in partnership with developers, architects, engineering firms, and equipment contractors and provides a mix of technical and financial assistance to help influence projects during the planning stage. Electric energy design assistance and construction incentives are offered to reduce market barriers to incorporating electric energy efficiency in construction projects. 3 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 4 of 10 Nonresidential Load Management – This program provides commercial and industrial customers with financial incentives to reduce electric demand during peak hours when notified by MidAmerican’s internet-based monitoring and communication system. Multi-Sector Programs Appliance Recycling – This program offers financial incentives to customers to stop using old, inefficient residential-sized refrigerators and freezers and helps them dispose of the old units in an environmentally responsible manner. Income-Qualified Multi-family Housing – This program provides services and incentives to serve the specific needs of multi-family housing building owners and property managers to help improve the overall energy efficiency of their buildings and reduce their operating costs. This program provides: comprehensive on-site energy assessments to identify areas of high energy use, free direct installation measures, and incentives for measures identified during the assessment. To be eligible, a multi-family property must be housing developed under Section 8 of the U.S. Housing Act of 1937 or Low-Income Housing Tax Credit Property under the Tax Reform Act of 1986. Education – This program promotes energy efficiency education through activities organized into three general areas: 1) school curricula; 2) awareness; and 3) trade ally support. Trees – This program promotes tree planting through the Trees Please! offering. The program provides annual grants for community tree-planting projects. The program provides grants, as well as appropriate energy efficiency educational materials to participating communities. The table below summarizes the changes to MidAmerican’s 2014-2018 plan that are included in the proposed Plan. 4 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 5 of 10 2019-2023 Plan Changes Program Markets Served Changes/Details New Programs Commercial Energy Solutions and Industrial Partners programs will be combined into one program for the ease of participation and to reduce administrative costs  Nonresidential Energy Solutions All nonresidential customers Discontinued Programs/Initiatives Residential HVAC Tune Up Residential customers Residential and Nonresidential Agriculture and Multi-family Housing Programs Market-rate Multifamily, farms and agribusiness customers on residential and nonresidential rate schedules Residential New Construction Residential builders and homeowners Commercial Energy Solutions and Industrial Partners Commercial/Industrial customers Upstream Lighting  Low trade ally and customer participation  Customers will be served through the traditional residential and nonresidential equipment programs, Commercial New Construction or the Nonresidential Energy Solutions program  Low builder participation; continuous building code enhancements  Customers will be served through the the Nonresidential Energy Solutions program  Significant transformation of the market to LED technology; high freeridership and 2007 Energy Independence and Security Act backstop implementation in 2020 All customers 5 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 6 of 10 Program Markets Served Changes/Details Enhancements and Changes to Existing Programs Residential Assessments Residential Prescriptive Rebates Residential single family customers Residential customers  This will become a web-based program only; once an online assessment is completed, an energy efficiency kit is available  Prescriptive equipment incentives as a percentage of the incremental cost of the equipment installed will be reduced from the current plan Cost-effective measures included in the program are central air conditioners, furnaces, air-source heat pumps and smart thermostats Quality installation will no longer be required for all HVAC equipment by a SAVE-certified contractor in order to receive rebates Energy Wise Kits previously delivered by community action partner agencies will be eliminated from the program A Supplemental Weatherization option will be added Frequency of Home Energy Report distribution will be reduced to four reports after the first year of participation The focus of program will be changed to electric only Qualifying smart thermostats will be eligible to participate. In 2019, customers with a qualifying, existing smart thermostat who begin participating in the program will receive a $50 end-of-cycle bill credit. In 2020 and beyond, new smart thermostat participants will receive a $30 end-of-cycle bill credit. Recurring participants will receive a $30 endof-cycle bill credit. Annual incentive paid to LCR participants will be reduced after the first year from $30 to $20    Residential LowIncome Income-qualified residential customers   Residential Behavioral 200,000 electric customers   Residential Load Management Residential singlefamily customers  6 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 7 of 10 Program Markets Served Changes/Details Enhancements and Changes to Existing Programs  Nonresidential Prescriptive Rebates Nonresidential customers   Commercial New Construction New commercial construction, additions or major renovations Nonresidential Load Management Nonresidential customers with 250 kW curtailable load or greater Income-Qualified Multi-family Housing Buildings with four or more units Appliance Recycling Residential customers and landlords Trees All customers Education All residential and nonresidential customers   Prescriptive equipment incentives as a percentage of the incremental cost of the equipment installed will be reduced from the current plan Cost-effective measures included in the program are central air conditioners, furnaces, boilers and LED lighting Custom projects will be served through the Nonresidential Energy Solutions program Electric incentive and design assistance only A new incentive structure will be added for multi-family buildings to include per unit incentives for tenant living areas  The annual incentive paid will be reduced from $46/kW to $30/kW  The Nonresidential Low-income Multifamily program was renamed to IncomeQualified Multi-family Housing Attic insulation and air sealing direct install measures for common areas will be added The home energy savings kit leave behind packages for participants will be eliminated The Plant Some Shade offering will be eliminated The program will expand strategic relationships with trade allies and organizations in order to move our mutual customers to high efficiency equipment purchases and installation on a regular basis     7 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 8 of 10 Budgets for Energy Efficiency and Demand Response Plans Anticipated five-year spending for the Plan is shown in the table below. MidAmerican proposes a budget of nearly $257 million in Energy Efficiency (EE) and Demand Response (DR) programs over the five-year period. MidAmerican’s accounting systems will ensure that costs for providing the programs are recovered from the appropriate customers. Total Electric Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 9,551,692 $ 9,592,300 $ 9,792,777 $ 8,394,040 $ 8,688,600 $ 46,019,409 Incentive Cost $ 33,121,950 $ 33,464,476 $ 34,522,779 $ 37,461,361 $ 38,636,439 $ 177,207,005 Total Cost $ 42,673,642 $ 43,056,776 $ 44,315,556 $ 45,855,401 $ 47,325,038 $ 223,226,414 EE Electric Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 7,047,441 $ 7,088,050 $ 7,288,526 $ 5,889,789 $ 6,184,349 $ 33,498,156 Incentive Cost $ 23,730,200 $ 24,062,726 $ 25,091,029 $ 27,999,611 $ 29,144,689 $ 130,028,255 Total Cost $ 30,777,642 $ 31,150,776 $ 32,379,555 $ 33,889,400 $ 35,329,038 $ 163,526,411 DR Electric Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 2,504,251 $ 2,504,251 $ 2,504,251 $ 2,504,251 $ 2,504,251 $ 12,521,253 Incentive Cost $ 9,391,750 $ 9,401,750 $ 9,431,750 $ 9,461,750 $ 9,491,750 $ 47,178,750 Total Cost $ 11,896,001 $ 11,906,001 $ 11,936,001 $ 11,966,001 $ 11,996,001 $ 59,700,003 EE Gas Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 2,183,020 $ 2,199,385 $ 2,212,780 $ 1,736,530 $ 1,768,848 $ 10,100,563 Incentive Cost $ 3,851,050 $ 4,205,984 $ 4,552,206 $ 5,249,632 $ 5,455,979 $ 23,314,852 Total Cost $ 6,034,070 $ 6,405,369 $ 6,764,986 $ 6,986,162 $ 7,224,827 $ 33,415,415 Combined Plan Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 11,734,712 $ 11,791,685 $ 12,005,557 $ 10,130,570 $ 10,457,447 $ 56,119,972 Incentive Cost $ 36,973,000 $ 37,670,460 $ 39,074,985 $ 42,710,993 $ 44,092,418 $ 200,521,857 Total Cost $ 48,707,713 $ 49,462,146 $ 51,080,542 $ 52,841,563 $ 54,549,865 $ 256,641,828 Detailed budgets by spending category and staffing assumptions in full-time employee equivalents for each program are provided in Application Exhibit 4 Budget/Accounting for Costs. 8 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 9 of 10 Energy Savings for Energy Efficiency and Demand Response Plans By 2023, MidAmerican anticipates helping customers install energy efficiency measures that are expected to reduce MidAmerican’s annual energy requirements by nearly 8.3 million therms of natural gas and 898 million kilowatt-hours of electricity. Summer peak electric demand for Iowa customers is also expected to be reduced by nearly 466 megawatts. Anticipated savings levels for the 2019-2023 Plan are as follows: Total Electric Savings 2019 2020 2021 2022 2023 Total Annual kWh 164,386,141 168,404,306 175,486,586 191,407,253 198,049,787 897,734,072 Peak kW 312,764 314,778 317,449 323,144 326,179 1,594,314 EE Electric Savings 2019 2020 2021 2022 2023 Total Annual kWh 161,129,025 165,146,190 172,227,470 188,147,137 194,788,671 881,438,492 Peak kW 42,136 42,949 44,421 48,916 50,750 229,172 DR Electric Savings 2019 2020 2021 2022 2023 Total Annual kWh 3,257,116 3,258,116 3,259,116 3,260,116 3,261,116 16,295,580 Peak kW 270,628 271,828 273,028 274,228 275,428 1,365,141 Annual Therms 1,322,898 1,492,174 1,681,848 1,900,122 1,965,137 8,362,180 Peak Therms 17,591 19,064 21,465 24,760 25,634 108,514 Gas Savings 2019 2020 2021 2022 2023 Total MidAmerican has established annual combined electricity savings targets ranging from .94% to 1.11% of its participating customer retail sales forecast. 9 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 10 of 10 Cost Effectiveness for Energy Efficiency and Demand Response Plan Anticipated total net economic benefits of the Energy Efficiency and Demand Response Plan based on the Societal Cost Test (SCT) are as follows: Program Benefits Program Costs Net Economic Benefits Societal Test Ratio EE Electric $ 854,116,268 $ 311,858,574 $ 542,257,694 2.74 DR Electric $ 237,543,112 $ 56,969,586 $ 180,573,526 4.17 $ $ $ EE Gas 77,094,934 46,950,921 30,144,013 1.64 Total $ 1,168,754,314 $ 415,779,082 $ 752,975,232 2.81 Overall the programs are expected to create net benefits to Iowa’s customers of approximately $753 million. The benefit-cost ratio for the total portfolio of programs is 2.81. That translates to lowering energy supply costs by $2.81 for every dollar invested in MidAmerican’s energy efficiency programs. Cost Effectiveness for Energy Efficiency and Demand Response Plan Anticipated total net economic benefits of the Energy Efficiency and Demand Response Plan based on the Ratepayer Impact Measure (RIM) are as follows: Program Benefits Program Costs Net Economic Benefits RIM Ratio EE Electric $ 475,504,413 $ 586,798,663 $ (111,294,250) 0.81 DR Electric $ 196,872,469 $ 53,319,390 $ 143,553,079 3.69 EE Gas $ 39,353,255 $ 60,959,524 $ (21,606,270) 0.65 $ $ $ Total 711,730,137 701,077,577 10,652,559 1.02 Managing Participation and Budgets In this filing, MidAmerican provides budget estimates for each program and year based on estimates of participation and rebate levels for each measure offered in each program. For any program and any year, participation and spending may vary substantially from the estimates for a variety of reasons beyond MidAmerican’s control. Plan Organization Additional details follow regarding the Plan programs and their expected results, including:      Residential program descriptions Nonresidential program descriptions Multi-sector program descriptions Support services required to deliver the programs, including MidAmerican’s accounting and monitoring and evaluation plans Technical details and supplemental material necessary to meet the Plan’s filing requirements, which are organized in Application Exhibits 1 through 11 10 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 1 of 8 MidAmerican Energy Company Iowa Energy Efficiency Plan 2019-2023 Residential Equipment Program Description of Program The Residential Equipment program promotes the purchase of energy efficient equipment by residential customers in new and existing homes. The program provides customers with rebates to offset the higher purchase cost of efficient equipment. Targeted equipment includes heating and cooling measures. Program measures must save energy supplied directly by MidAmerican. The program is available to all residential customers and landlords for both new and existing buildings in MidAmerican’s Iowa service territory. Residential equipment installed in newly constructed single-family homes and duplexes is eligible for rebates through the Residential Equipment program. Residential equipment installed in newly constructed multi-family homes (three or more units) is not eligible for rebates through the Residential Equipment program. However, MidAmerican’s Commercial New Construction program provides services and incentives for new multi-family homes. Measure List The Residential Equipment program provides rebates and incentives for the following measures:      Natural gas furnaces Central air conditioners Air source heat pumps Ductless minisplit air source heat pumps Advanced Smart thermostats – ENERGY STAR® certified MidAmerican performs an annual review of qualifying measures and may adjust measures and eligibility requirements in the future as market conditions and equipment standards change. Budgets Anticipated five-year spending for the Residential Equipment program is as follows: Electric Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 646,742 $ 653,209 $ 653,209 $ 666,144 $ 679,079 $ 3,298,383 11 Incentive Cost $ 3,020,330 $ 3,105,075 $ 3,105,075 $ 3,526,422 $ 3,678,991 $ 16,435,892 Total Cost $ 3,667,072 $ 3,758,284 $ 3,758,284 $ 4,192,566 $ 4,358,070 $ 19,734,275 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 2 of 8 Gas Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 436,218 $ 440,581 $ 444,986 $ 458,336 $ 481,253 $ 2,261,374 Incentive Cost $ 1,023,250 $ 1,088,750 $ 1,281,250 $ 1,583,750 $ 1,612,500 $ 6,589,500 Total Cost $ 1,459,468 $ 1,529,331 $ 1,726,236 $ 2,042,086 $ 2,093,753 $ 8,850,874 Total Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 1,082,960 $ 1,093,790 $ 1,098,196 $ 1,124,480 $ 1,160,332 $ 5,559,757 Incentive Cost $ 4,043,580 $ 4,193,825 $ 4,386,325 $ 5,110,172 $ 5,291,491 $ 23,025,392 Total Cost $ 5,126,540 $ 5,287,614 $ 5,484,520 $ 6,234,652 $ 6,451,823 $ 28,585,149 Detailed budgets by spending category and staffing assumptions in FTEs for this program are provided in Application Exhibit 4 Budget/Accounting for Costs. Energy Savings Anticipated savings levels for the Residential Equipment program are as follows: Electric Savings 2019 2020 2021 2022 2023 Total Gas Savings 2019 2020 2021 2022 2023 Total Annual kWh 4,146,970 4,310,440 4,310,440 4,835,958 5,052,810 22,656,618 Annual Therms 609,831 647,486 731,497 881,654 903,272 3,773,740 Peak kW 3,254 3,366 3,366 3,799 3,968 17,753 Peak Therms 10,077 10,700 12,088 14,569 14,927 62,361 Participation Participation estimates for each measure offered in this program are provided in Application Exhibit 3 Benefit Cost (2 of 2). 12 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 3 of 8 Cost Effectiveness Anticipated total net economic benefits of the program are as follows: Program Program Benefits Program Costs Net Economic Benefits Societal Test Ratio Electric $ 53,705,267 $ 30,465,035 $ 23,240,232 1.76 $ $ $ Gas 31,036,659 19,901,034 11,135,625 1.56 $ $ $ Total 84,741,926 50,366,069 34,375,856 1.68 Operations Description of Operations The Residential Equipment program provides rebates to customers who purchase qualifying energy efficient equipment. The program is delivered in partnership with heating and cooling dealers, as well as retail outlets selling qualifying equipment. Key steps in program participation include:  Equipment purchase – The customer purchases and installs eligible equipment.  Program application submittal – Customer will submit rebate application and required documentation after qualifying energy efficiency measures have been installed. Project verification – The program contractor may conduct verification activities on existing and/or new equipment prior to installation or post installation prior to payment. Quality assurance/Quality control review – The application and supporting documentation are reviewed to determine if the project qualifies for financial incentives. Rebate processing and database maintenance – The program contractor and MidAmerican process rebates and maintain the database for tracking and reporting purposes.    Description of Outside Services MidAmerican staff provides overall strategic direction for the program, as well as conducts research and development, promotion, trade ally support, evaluation, and other administrative functions. The program is delivered through the assistance of a program contractor that handles processing applications, tracking program data, answering questions from dealers and customers, verifying equipment installations, and coordinating rebate distribution to customers. MidAmerican currently contracts with A-TEC Energy Corporation for management and administrative services. MidAmerican regularly reviews its contractor needs and contractual 13 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 4 of 8 agreements as part of its internal program evaluation process. MidAmerican will issue a request for proposal in 2018 for this program. Value Proposition Customers participating in the program receive three main benefits:    Customers save money in the short term through rebates and in the long term through lower utility bills. Customers receive information about high quality, energy efficient equipment from a professional source. Equipment rebates are accessible to any eligible customer for qualifying equipment. Market Barriers The table below presents the key market barriers to an effective residential equipment program and strategies the program uses to address each barrier. These program strategies can only partially offset the identified barriers. 14 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 5 of 8 Market Barriers and Strategies Market Barriers Program Strategies Higher first cost of energy efficient equipment Offer rebates Time required to fill out rebate forms Provide simple rebate forms through a variety of media (e.g., paper, online) Educate customers on the long-term energy cost-saving benefits of higher efficiency equipment Allow trade allies to complete rebate forms for customers at the time of equipment purchase Customers are not aware of qualifying products Trade ally training to help customers quickly identify appropriate products Provide in-store marketing material Market program and general efficiency awareness to customers Trade allies not marketing highefficiency equipment Provide trade ally training and outreach to explain the benefits of selling high-efficiency equipment Market program and general efficiency awareness to trade allies Customers don’t understand the Train trade allies to explain life-cycle costs to customers long-term value of high-efficiency Market program and general efficiency awareness to customers equipment Provide efficiency education to customers Dealers are unaware of program Provide outreach and marketing to dealers Incentives The program offers the following financial incentive to participants:  Rebates – Rebates are offered on a per-measure basis to program participants installing qualifying equipment. For some equipment, the rebate will be a fixed amount per measure; for other equipment, the rebate will increase with increasing equipment efficiency. The table below presents the rebates available for measures included in the Residential Equipment program. 15 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 6 of 8 Residential Equipment Rebates by Measure Measure Qualifying Efficiency Rebate Amount Central Air Conditioners SEER 15-15.9 SEER 16-16.9 SEER 17-17.9 SEER 18 and above $75 per unit $150 per unit $300 per unit $500 per unit Air Source Heat Pumps (including ductless mini-splits) SEER 15-15.9 SEER 16-16.9 SEER 17-17.9 SEER 18 and above $150 per unit $250 per unit $400 per unit $600 per unit Natural Gas Furnaces AFUE 96 and above (HVAC SAVE testing no longer required) $175 per unit Advanced Smart Thermostats ENERGY STAR® certified $75 per unit MidAmerican offers incentives for the current program year until approved funds are exhausted or until December 31 of each program year, whichever comes first. MidAmerican performs an annual review of rebate levels and performance criteria and may adjust rebates as market conditions change. This may include temporary reduction or suspension of incentives in order to appropriately manage program costs. Marketing Plan General Marketing Plan MidAmerican will target residential customers using traditional marketing channels and provide education and outreach to customers, trade allies, and industry organizations to encourage customer participation and implementation of energy efficient measures and equipment. MidAmerican will regularly review and update customer-facing program information and marketing materials as part of its internal program evaluation process, and adjust materials as needed based on program adjustments and market characteristics. Trade Ally Targets Any business that sells or installs qualifying equipment to MidAmerican customers within MidAmerican’s service area may participate in the program. The following types of trade allies are predominant:    HVAC dealers and contractors Plumbing and mechanical contractors Retail outlets 16 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 7 of 8 Trade allies play a key role in implementing the program. To support its trade allies and keep them informed of program opportunities and changes, MidAmerican maintains an active trade ally program. Further information regarding trade allies is located in the Education program section. Customer Targets The target market for this program includes residential customers and landlords of residential customers in existing housing. The program also uses residential tariff rates to target and qualify customers. MidAmerican estimates the total number of customers eligible to participate in the Residential Equipment program is 725,000. The table below outlines customer eligibility requirements. Customer Eligibility Parameters Electric Equipment Natural Gas Equipment Customer Class Residential electric rate Customer Status Customer homeowners and Customer homeowners and landlords landlords Building Type – Existing Single-family; Duplexes; Multifamily; Manufactured home Building Type – New Single-family; Duplexes; Construction Manufactured home Residential gas rate Single-family; Duplexes; Multifamily; Manufactured home Single-family; Duplexes; Manufactured home Building Vintage Existing and new construction Existing and new construction Geography MidAmerican Iowa electric service area MidAmerican Iowa natural gas service area Promotion MidAmerican will engage in a multifaceted promotional strategy, including:      Direct outreach through a network of trade allies Direct outreach for specific equipment rebate promotions/campaigns Ongoing trade ally education about program procedures and benefits, qualifying measures, and equipment and rebate structures Program promotion at industry events Periodic articles in MidAmerican’s monthly customer electronic newsletter and its quarterly newsletter sent with customer bills 17 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 8 of 8    A dedicated webpage that includes program information, qualification requirements, and a program brochure Utilization of social media channels Referrals by MidAmerican call center associates Program referrals are also expected from trade allies. Information will be available on a dedicated portion of MidAmerican’s energy efficiency website to assist trade allies in marketing and delivering energy-efficient products and services to customers, while encouraging energy efficiency programs participation. The website offers trade allies the opportunity to order program materials, learn about program changes, and provide contact information for future communications. To keep trade allies informed and engaged with the program, MidAmerican will periodically provide program information and training via a variety of different communication modes to create overarching energy efficiency and program awareness among our customers and trade allies. MidAmerican’s Trade Ally Central website provides additional resources for trade ally engagement. 18 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 1 of 7 MidAmerican Energy Company Iowa Energy Efficiency Plan 2019-2023 Residential Assessment Program Description of Program The Residential Assessment program promotes energy efficiency strategies for existing residential customers. The program is delivered through two components that assist residential customers in reducing energy usage: 1) an Online Home Energy Assessment; and 2) an Energy Efficiency Kit. Online Home Energy Assessment The online home energy assessment gives all residential customers access to an interactive home assessment. This online tool is a simple home survey that asks customers questions to determine the source of their greatest energy use. Customers also receive personalized energy tips, usage history, and information on other energy efficiency programs that may be relevant. The program is marketed under the registered trademark name HomeCheck®. Energy Efficiency Kits The energy efficiency kit offers residential customers a free kit containing simple energy efficiency measures based on the customer’s fuel source. Residential customers must complete the online home energy assessment to be eligible for the free energy efficiency kit. Kits will also contain educational material, information on other energy efficiency programs, and installation instructions. Measure List The Residential Assessment program provides rebates and incentives for the following measures:  Energy efficiency kit that may include:  Faucet aerator  Low flow showerhead  Light emitting diodes (LEDs)  Advanced power strip MidAmerican performs an annual review of qualifying measures and may adjust measures and eligibility requirements in the future as market conditions and equipment standards change. 19 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 2 of 7 Budgets Anticipated five-year spending for the Residential Assessment program is as follows: Electric Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 222,742 $ 224,969 $ 227,197 $ 227,197 $ 227,197 $ 1,129,302 Incentive Cost $ 998,519 $ 804,202 $ 745,317 $ 745,439 $ 741,567 $ 4,035,045 Total Cost $ 1,221,261 $ 1,029,172 $ 972,514 $ 972,635 $ 968,764 $ 5,164,347 Gas Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 330,340 $ 333,644 $ 336,947 $ 336,947 $ 336,947 $ 1,674,825 Incentive Cost $ 474,537 $ 531,798 $ 522,683 $ 522,561 $ 526,433 $ 2,578,011 Total Cost $ 804,877 $ 865,442 $ 859,630 $ 859,509 $ 863,380 $ 4,252,837 Total Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 553,082 $ 558,613 $ 564,144 $ 564,144 $ 564,144 $ 2,804,127 Incentive Cost $ 1,473,056 $ 1,336,000 $ 1,268,000 $ 1,268,000 $ 1,268,000 $ 6,613,056 Total Cost $ 2,026,138 $ 1,894,613 $ 1,832,144 $ 1,832,144 $ 1,832,144 $ 9,417,183 Detailed budgets by spending category and staffing assumptions in FTEs for this program are provided in Application Exhibit 4 Budget/Accounting for Costs. Energy Savings Anticipated savings levels for the Residential Assessment program are as follows: Electric Savings 2019 2020 2021 2022 2023 Total Annual kWh 5,461,277 5,283,960 5,764,320 5,764,320 5,764,320 28,038,197 20 Peak kW 671 620 677 677 677 3,321 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 3 of 7 Gas Savings 2019 2020 2021 2022 2023 Total Annual Therms 161,944 243,760 265,920 265,920 265,920 1,203,464 Peak Therms 444 668 729 729 729 3,297 Participation Participation estimates for each measure offered in this program are provided in Application Exhibit 3 Benefit Cost (2 of 2). Cost Effectiveness Anticipated total net economic benefits of the program are as follows: Program Program Benefits Program Costs Net Economic Benefits Societal Test Ratio Electric $ 29,376,116 $ 4,000,679 $ 25,375,437 7.34 $ $ $ Gas 10,900,220 2,634,504 8,265,717 4.14 $ $ $ Total 40,276,336 6,635,183 33,641,153 6.07 Operations Description of Operations The Residential Assessment program is the primary entry point for participation by MidAmerican residential customers in its energy efficiency programs. This typically leads to participation in other MidAmerican energy efficiency programs. Each component of the program employs a different implementation strategy, as outlined below. Online Home Energy Assessment This component is delivered by a program contractor who hosts the online assessment tool. MidAmerican provides weekly customer data uploads to the program contractor to improve the accuracy of the assessment. Customers can further improve the accuracy of the assessment by completing their home profile. Key steps in program participation include:   Website development – The program contractor and MidAmerican will build and customize the online assessment website for Iowa residents. The website will be linked to the MidAmerican website for easy customer access. Provide data – MidAmerican supplies the program contractor with weekly data feeds for all Iowa residential customers to ensure energy usage information shown on the home energy assessment matches the energy usage information shown on the customer bill. 21 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 4 of 7  Assessment completion – The customer completes a home profile to receive customized energy efficiency tips, recommendations for other MidAmerican programs, and the opportunity to set an energy savings goal.  Manage operations – MidAmerican’s call center answers participant questions by phone and email. The call center also updates home profiles with the customer on the phone by accessing the Customer Service Representative Web Portal. Energy Efficiency Kits The energy efficiency kit component is administered by a program contractor. The program contractor verifies eligibility and mails the kit to the customer. Customers will be required to complete the online home energy assessment prior to ordering the kit. Key steps in program participation include:       Kit development – The program contractor and MidAmerican will customize the energy efficiency kits to include general energy efficiency information, as well as information on other MidAmerican energy efficiency programs. Provide data – MidAmerican supplies the program contractor with data related to customer rate class information to determine eligibility. Distribute kits – The program contractor will distribute kits or contact the customers if they are ineligible for a kit. Kits will be mailed to eligible customers. Customers may receive one kit per year, per household. Deliver program – The program contractor and MidAmerican will jointly deliver the program. The program contractor will manage the day-to-day kit distribution and customer follow-up related to a customer’s eligibility. MidAmerican’s call center will assist with customer questions regarding the program in general. Installation assistance – The customer self-installs the measures included in the kit. If the customer has a question regarding installation or needs installation instructions, online videos will be available. The program contractor will also be available to answer installation questions if a customer does not have access to the videos. Report results – The program contractor will report kit distribution and customer eligibility results on a monthly basis to MidAmerican. Description of Outside Services MidAmerican staff provides overall strategic direction for the program, as well as conducts research and development, promotion, evaluation, and other administrative functions. MidAmerican uses program contractors to help deliver the program. The contractors handle product quality and availability, customer eligibility, delivery of services, and data reporting. MidAmerican currently contracts with Opower for program delivery of the online home energy assessment. MidAmerican regularly reviews its contractor needs and contractual agreements as part of its internal program evaluation process. MidAmerican will issue a request for proposal in 2018 for this program. 22 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 5 of 7 Value Proposition Customers participating in the program receive the following main benefits:     Convenient online home energy assessment that provides customized energy reduction recommendations Additional information regarding energy savings tips and other energy efficiency programs Heightened awareness of the relationship between energy usage decisions made in the home and the amount of energy used and the cost of this energy on monthly utility bills Immediate savings when the customer installs the kit contents, including energy efficient lighting, water heating measures, and an advanced power strip Market Barriers The table below presents the key market barriers to an effective Residential Assessment program, and strategies the program uses to address each barrier. Note these program strategies can only partially offset these barriers. Market Barriers and Strategies Market Barriers Lack of customer awareness Program Strategies Provide customer marketing and outreach to individual customers Provide efficiency education No Internet or lack of technical Provide call center support skills to complete the Ability to order the kit through the contractor’s call center assessment and order kit Offer customer support via online installation videos Unable to install kit measures Provide call center support through the program contractor who can direct customers on installation procedures over the phone Customer receives one fuel Provide electric-only and gas-only kits source from MidAmerican and one fuel source from another Program contractor determines eligibility through MidAmerican customer account data utility 23 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 6 of 7 Incentives The program offers the following types of financial incentives to participants:   No-cost online energy assessments – No-cost online energy assessments are offered to all residential customers. Free energy efficiency measures – Free energy efficiency kits for eligible residential customers. MidAmerican offers incentives for the current program year until approved funds are exhausted or until December 31 of each program year, whichever comes first. MidAmerican performs an annual review of rebate levels and performance criteria and may adjust rebates as market conditions change. This may include temporary reduction or suspension of incentives in order to appropriately manage program costs. Marketing Plan General Marketing Plan MidAmerican will market the program through multiple channels, including social media. MidAmerican will regularly review and update customer-facing program information and marketing materials as part of its internal program evaluation process, and adjusts materials as needed based on program adjustments and market characteristics. Trade Ally Targets Trade allies are not utilized to deliver the Residential Assessment program. Customer Targets This program is available to all residential customers, including apartment dwellers, who receive electric and/or gas service from MidAmerican. MidAmerican estimates the total number of customers eligible to participate in the Residential Assessment program is 535,000. The table on the following page outlines customer eligibility requirements. 24 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 7 of 7 Customer Eligibility Parameters Online home energy assessment Energy efficiency kits Customer Class Residential rates Residential rates Customer Status All All Building Type Single-family Multifamily Manufactured home Single-family Multifamily Manufactured home Building Vintage All All Geography All All Other N/A N/A Promotion MidAmerican will engage in a multifaceted promotional strategy, including:      Program promotion at industry, community, and organization/association events Periodic articles in MidAmerican’s monthly electronic newsletter and its quarterly newsletter sent with customer bills A dedicated webpage that includes program information and qualification requirements and a program brochure Utilization of social media channels Referrals by MidAmerican call center associates 25 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 1 of 6 MidAmerican Energy Company Iowa Energy Efficiency Plan 2019-2023 Residential Behavioral Program Description of Program The Residential Behavioral program is designed to encourage electric energy savings through behavioral modification. The program provides customers with Home Energy Reports that contain personalized information about their energy use and provides helpful ways to make their homes more efficient. Customers are randomly chosen to receive Home Energy Reports, but may opt out if they do not wish to participate. The Home Energy Reports compare the customer’s energy usage to 100 similarly-situated homes in their area. The reports engage customers and lead them to take action to bring their energy usage in line with similar homes. The Residential Behavioral program empowers customers to better understand their energy usage and act on this knowledge, resulting in changed customer behavior. Additionally, participation in this program encourages participation in other programs by using the Home Energy Report as a promotional vehicle. By helping customers become more energy efficient and lower their utility bills, the program will help customers understand that decisions they make regarding energy usage are important and relevant to their total monthly energy bills. Measure List The Residential Behavioral program provides incentives for the following measure:  Personalized Home Energy Reports delivered by direct mail and provided free of charge. Customers have the option to choose email delivery in addition to or instead of direct mail. Budgets Anticipated five-year spending for the Residential Behavioral program is as follows: Electric Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 545,400 $ 545,400 $ 545,400 $ 545,400 $ 545,400 $ 2,727,000 Incentive Cost $ 952,600 $ 952,600 $ 952,600 $ 952,600 $ 952,600 $ 4,763,000 Total Cost $ 1,498,000 $ 1,498,000 $ 1,498,000 $ 1,498,000 $ 1,498,000 $ 7,490,000 There are no gas costs associated with this program. Detailed budgets by spending category and staffing assumptions in FTEs for this program are provided in Application Exhibit 4 Budget/Accounting for Costs. 26 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 2 of 6 Energy Savings Anticipated savings levels for the Residential Behavioral program are as follows: Electric Savings 2019 2020 2021 2022 2023 Total Annual kWh 29,499,800 29,499,800 29,499,800 29,499,800 29,499,800 147,499,000 Peak kW 9,600 9,600 9,600 9,600 9,600 47,998 There are no gas savings associated with this program. Participation Participation estimates for each measure offered in this program are provided in Application Exhibit 3 Benefit Cost (2 of 2). Cost Effectiveness Anticipated total net economic benefits of the program are as follows: Program Program Benefits Program Costs Net Economic Benefits Societal Test Ratio Electric $ 11,570,936 $ $ 11,570,936 - Total $ 11,570,936 $ $ 11,570,936 - Operations Description of Operations The program delivers targeted messages via the Home Energy Reports to each participating customer. The reports include messaging that compares each household’s energy usage to 100 similarly-situated homes and includes energy efficiency tips that recommend simple steps each customer can take to reduce their energy usage. Messages are constantly updated and refreshed to motivate customers to take action. Key steps in the implementation of the Home Energy Report program are as follows:   Provide data – MidAmerican supplies the program contractor with weekly data feeds for all Iowa residential customers to ensure energy usage information shown on the Home Energy Report matches energy usage information shown on the customer bill. Establish groups – The program contractor utilizes test and control groups to divide the targeted population into two statistically equivalent groups. 27 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 3 of 6      Validate data – The program contractor verifies there is no historical difference in usage between participation and control groups. Mail paper reports or email reports – The program contractor mails paper reports and/or email reports to the participation group only. No action is taken with the control group. Determine energy savings – The program contractor compares average energy use preand post-reports for both groups and reports realized energy savings to MidAmerican. Manage operations – MidAmerican’s call center answers participant questions by phone and email. The call center is also able to update individual profiles with the participant on the phone by accessing the Customer Service Representative Web Portal. For example, the call center can update the square footage of the participant’s home and view the customer’s Home Energy Report so they can answer questions while looking at the same report the participant has at home. Customer Web Portal – Participants also may make updates to their profile online using the Customer Web Portal. The Customer Web Portal is available free of charge to customers who receive the Home Energy Report. It also allows customers to explore additional opportunities to save energy and money. Customers in the participation group receive either two or four Home Energy Reports per year based on the longevity of participation. Customers eligible for the program are combination service customers (customers that receive both natural gas and electricity) and customers that are electric only (customers with all electric homes). The program will only report electric savings, although combination service customers will see both electric and gas information on their reports. The program will consist of 200,000 participants in the participation group. Description of Outside Services MidAmerican staff provides overall strategic direction for the program, gathering of appropriate customer data, and call center and website support. One contractor supports the program. The contractor provides the design and content for the Home Energy Report and mails or emails the reports to customers. The contractor also provides estimates of customer savings resulting from the program. MidAmerican currently contracts with Opower for program administration. MidAmerican regularly reviews its contractor needs and contractual agreements as part of its internal program evaluation process. MidAmerican will issue a request for proposal in 2018 for this program. Value Proposition Customers selected to participate in this program may receive the following benefits:     Financial benefits in the form of reduced utility bills due to following the recommendations presented in the Home Energy Report Information regarding energy savings tips and other energy efficiency programs of interest Access to additional energy saving tips and tools through the Customer Web Portal Heightened awareness of the relationship between energy usage decisions made in the home and the amount of energy used and the cost of this energy on monthly utility bills 28 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 4 of 6 Market Barriers The table below presents the key market barriers to a successful Residential Behavioral program and the strategies the program uses to address each barrier. Program strategies may only partially offset these barriers. Market Barriers and Strategies Market Barriers Program Strategies Participant lack of confidence in Participant education and outreach the Home Energy Report and Train Call Center Representatives to answer frequently MidAmerican’s motives for asked questions and reassure participants sending them the reports. Include “Welcome” module in the first Home Energy Report to explain the program and provide instructions to the customer on how to access the Customer Web Portal for more energy saving tips and information Revise language in the Home Energy Reports when appropriate to help minimize complaints and misunderstandings Concern that homes are not being compared to comparable homes Encourage participants to update their profiles in the Customer Web Portal to ensure their home is accurately and appropriately compared Train Call Center Representatives to assist customers in updating their profiles on the Customer Web Portal Concern that reports waste money on postage and natural resources Educate customers that they may choose email reports and reassure them that the energy saved by the reports makes the expenditures of the program worthwhile Incentives The program offers the following types of incentives to participants:   Home Energy Reports – Home Energy Reports are provided at no charge. Customer Web Portal – The Customer Web Portal is available free of charge to program participants. 29 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 5 of 6 Marketing Plan General Marketing Plan The Home Energy Report program is opt-out, instead of opt-in. A “Welcome” module is included in each participant’s first Home Energy Report. The “Welcome” module explains the program and how to access more information on the Customer Web Portal. The “Welcome” module will encourage customers to visit the online web portal to update their home profile for a more accurate report. MidAmerican has a dedicated Call Center team that can help customers with questions and profile updates. By providing customers the opportunity to update their home’s profile upfront, customer concerns about the Home Energy Reports can be lessened. Customer Targets Customer targets include Iowa residential customers that receive both electric and natural gas service or only electric (all electric homes) from MidAmerican. MidAmerican estimates the total number of customers eligible to participate in the Residential Behavioral program is 380,000. The table below outlines customer eligibility requirements. Customer Eligibility Parameters Electric Customer Class Residential electric rate and also receives natural gas service; or is an electric-only home Customer Status Customer homeowners; apartment dwellers Building Type Single-family; Manufactured Home; Multifamily Building Vintage Existing construction (at least 1 full year of account history) Geography MidAmerican Iowa service territory Trade Ally Targets Trade allies are not utilized to deliver the Residential Behavioral program. 30 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 6 of 6 Promotion The Home Energy Report program is an opt-out program and, therefore, not available for customer opt-in. Therefore, MidAmerican will provide information to the general public about the program on its website, but will not promote it through other means. 31 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 1 of 9 MidAmerican Energy Company Iowa Energy Efficiency Plan 2019-2023 Residential Low Income Program Description of Program The Residential Low Income program provides financial incentives and education to encourage energy efficiency in existing low income housing. The program is delivered through three separate residential components to serve different customer segments: 1) statewide weatherization; 2) supplemental weatherization; and 3) and Home Energy Reports. The statewide weatherization only addresses single-family housing, whereas supplemental weatherization and Home Energy Reports are available to both single-family home and apartment dwellers. The statewide weatherization program is delivered through the Iowa Department of Human Rights (IDHR), which contracts with local community action program (CAP) agencies and other subcontractors to deliver program services. The supplemental weatherization program is delivered by Green Iowa AmeriCorps (GIAC) which works with CAP agencies to provide supplemental weatherization to customers on weatherization waiting lists. The Home Energy Report component consists of the Home Energy Reports described in the Residential Behavioral program, with messaging specifically crafted for low income customers. The various components of this program are described below. Statewide Weatherization MidAmerican provides funding to supplement the IDHR’s existing low income weatherization program funded by the Federal Weatherization Assistance Program (WAP). Weatherization services include energy assessments and direct installation of energy efficiency measures delivered by CAP agencies throughout MidAmerican’s service area. Supplemental Weatherization MidAmerican will work with GIAC in the communities in which GIAC operates to develop a supplemental weatherization program for customers on CAP agency waiting lists in those communities. Services include energy assessments and direct installation of simple energy efficiency measures. Home Energy Reports MidAmerican will send Home Energy Reports to approximately 20,000 customers identified as low income. Customers chosen for this component will be chosen based on participation in the Low Income Home Energy Assistance Program (LIHEAP) and based on neighborhood income census data. The reports will be tailored to include low cost and no cost energy efficiency tips and will be sent either two or four times per year based on longevity in the program. 32 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 2 of 9 Measure List The Residential Low Income program provides rebates and incentives for the following measures:        Energy efficient showerheads Faucet aerators Pipe insulation Light emitting diode (LED) bulbs Programmable thermostats High efficiency natural gas furnaces Appliances: refrigerators and freezers       Cleaning and tuning of natural gas furnaces Infiltration measures Insulation measures General repairs in support of successful application of efficiency measures Energy assessments Home Energy Reports MidAmerican performs an annual review of qualifying measures and may adjust measures and eligibility requirements in the future as market conditions and equipment standards change. Budgets Anticipated five-year spending for the Residential Low Income program is as follows: Electric Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 43,000 $ 43,860 $ 43,860 $ 44,720 $ 45,150 $ 220,590 Incentive Cost $ 343,549 $ 293,228 $ 284,477 $ 373,332 $ 400,458 $ 1,695,044 Total Cost $ 386,549 $ 337,088 $ 328,337 $ 418,052 $ 445,608 $ 1,915,634 Gas Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 192,000 $ 195,840 $ 195,840 $ 199,680 $ 201,600 $ 984,960 Incentive Cost $ 936,586 $ 1,051,024 $ 1,060,108 $ 1,313,518 $ 1,398,152 $ 5,759,388 Total Cost $ 1,128,586 $ 1,246,864 $ 1,255,948 $ 1,513,198 $ 1,599,752 $ 6,744,348 33 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 3 of 9 Total Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 235,000 $ 239,700 $ 239,700 $ 244,400 $ 246,750 $ 1,205,550 Incentive Cost $ 1,280,135 $ 1,344,253 $ 1,344,585 $ 1,686,850 $ 1,798,610 $ 7,454,433 Total Cost $ 1,515,135 $ 1,583,953 $ 1,584,285 $ 1,931,250 $ 2,045,360 $ 8,659,983 Detailed budgets by spending category and staffing assumptions in FTEs for this program are provided in Application Exhibit 4 Budget/Accounting for Costs. Energy Savings Anticipated savings levels for the Low Income program are as follows: Electric Savings 2019 2020 2021 2022 2023 Total Gas Savings 2019 2020 2021 2022 2023 Total Annual kWh 113,505 72,663 72,663 97,050 105,013 460,893 Annual Therms 35,391 36,646 36,646 48,945 52,961 210,589 Peak kW 32 28 28 38 41 167 Peak Therms 368 381 381 509 551 2,190 Participation Participation estimates for each measure offered in this program are provided in Application Exhibit 3 Benefit Cost (2 of 2). Cost Effectiveness Anticipated total net economic benefits of the program are as follows: Cost Effectiveness Program Program Benefits Program Costs Net Economic Benefits Societal Test Ratio Electric $ 638,354 $ 1,830,826 $ (1,192,472) 0.35 34 $ $ $ Gas 1,574,768 6,435,022 (4,860,253) 0.24 $ $ $ Total 2,213,122 8,265,847 (6,052,725) 0.27 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 4 of 9 Operations Description of Operations MidAmerican provides a comprehensive program designed to reach low income customers in a variety of situations. MidAmerican assists qualified LIHEAP residential customers by providing funds for assessments and weatherization assistance for occupants of single-family dwellings, supplemental weatherization assistance for single-family home occupants and apartment dwellers, and Home Energy Reports, which provide no cost and low cost energy saving tips and information to a cross section of low income customers. Each component of the program employs a different implementation strategy, as outlined below. Statewide Weatherization Implementation of statewide weatherization is delivered through local CAP agencies responsible for promotion, qualification, assessments and installations, administration, data tracking, and support of program-wide evaluation efforts. Key steps in the statewide weatherization component include:  Determine eligibility – Identifying customers that qualify for LIHEAP and prioritizing them according to utility bill expense, income level, and other criteria.  Complete on-site assessments – Completing on-site energy assessments, during which auditors directly install simple energy efficiency measures and evaluate eligibility for a predetermined list of more complex measures, such as building insulation and replacement of furnaces, water heaters, and appliances.  Install measures – Coordinating, where appropriate, with network contractors for measure installation.  Document results – Documenting program results for IDHR and MidAmerican. Supplemental Weatherization This component is delivered by GIAC, who is responsible for CAP agency relations, promotion, qualification, assessments and installations, administration, data tracking, and support of programwide evaluation efforts. Key steps in the supplemental weatherization component include:  Determine eligibility – Through CAP agency relationships, identifying customers on the WAP waiting list.  Complete on-site assessments – Completing on-site energy assessments, during which auditors directly install simple energy efficiency measures, such as basic infiltration measures, energy efficient showerheads, faucet aerators, LED bulbs, pipe insulation, and programmable thermostats.  Document results – Documenting program results for MidAmerican. 35 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 5 of 9 Home Energy Reports The operations of this component are detailed in the Residential Behavioral section. Home Energy Reports for the Residential Low Income program will operate similarly to those in the Residential Behavioral program with the following exceptions:  Tailored tips – The tips found in the reports will be tailored for low income participants.  Provide data – MidAmerican will provide a supplemental data feed to the implementation contractor listing all Iowa customers that qualified for LIHEAP assistance so the implementation contractor can choose participants. In addition to LIHEAP, other census and neighborhood income data will be used to further expand the customer base. Description of Outside Services MidAmerican energy efficiency staff provides overall strategic direction for the program, conducts research and development, and provides promotion, trade ally support, and other administrative functions. Local CAP agencies are responsible for qualifying single-family households for the program when they apply for Federal LIHEAP assistance and for delivering services to LIHEAP-eligible customers. Additionally, other implementation contractors support the program and deliver program services. GIAC is responsible for delivering a supplemental weatherization program for customers on CAP agency waiting lists in those communities targeted for participation. GIAC will submit quarterly reporting to MidAmerican outlining participation levels and installed measures. The IDHR submits monthly reports to MidAmerican outlining participation levels and installed measures for the weatherization component. Each year, the IDHR, through a contractor retained by IDHR and the investor-owned utilities, submits an annual Statewide Low Income Collaborative Evaluation report detailing program expenditures and savings of the weatherization component. MidAmerican currently contracts with the IDHR, GIAC, Dalhoff Associates, and Opower, Inc. for administration and evaluation services. MidAmerican regularly reviews its contractor needs and contractual agreements as part of its internal program evaluation process. MidAmerican will issue a request for proposal in 2018 for the Home Energy Report component of the program. Value Proposition Customers participating in the program receive four main benefits:    Reliable energy savings recommendations from trained auditors Immediate savings through the direct installation of low cost lighting, water heating, and other energy saving measures Additional savings from behavior changes as a result of energy efficiency education provided through the Home Energy Reports 36 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 6 of 9  Significant savings, increased comfort, and increased property values through the direct installation of insulation and other efficiency measures Market Barriers The table below presents the key market barriers to an effective low income program, and strategies the program uses to address each barrier. Note these program strategies can only partially offset the identified barriers. Market Barriers and Strategies Market Barriers Program Strategies Higher initial cost of energy Provide direct installation of low cost measures efficient equipment Provide free weatherization and equipment measures Educate customers on the long-term energy cost saving benefits of higher efficiency equipment Lack of customer awareness Provide customer marketing and outreach Provide efficiency and energy usage education Provide free Home Energy Reports Provide free energy assessments Customers reluctant to ask for help Work through CAP agencies, which have existing relationships with customers Provide confidential program qualification and implementation process Incentives The program offers participants the following financial incentives:    Free energy assessments – Customers participating in the statewide and supplemental weatherization components receive free energy assessments. Full subsidies – Full subsidies are offered for low-cost measures directly installed during the assessment and for higher cost energy efficiency measures specified during statewide weatherization assessments. Likewise, full subsidies are offered for low-cost measures directly installed during the supplemental weatherization assessments. Home Energy Reports – Home Energy Reports are provided free of charge and can prompt changes in participants’ energy use. The table below outlines the current schedule used to reimburse the IDHR and participating CAP agencies for program measures. The reimbursement limit is intended to cover 100% of the costs required to install eligible measures and also to cover the administrative costs incurred by the IDHR and the agencies to operate the program. This schedule will be reviewed and updated as required when MidAmerican and IDHR enter into a new weatherization agreement for the years 2019-2023. 37 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 7 of 9 Iowa Reimbursement Limits for Low Income Measures Measure1 Minimum Efficiency Level and Performance Criteria (if applicable) Reimbursement Limit Low-flow showerheads 2.0 GPM – max 2 per house $10 each Faucet aerators 1.5 GPM Brass with chrome finish – max 3 per house $5 each Pipe insulation Rigid 0.5” foam with 0.75” diameter – max 2 6foot sections per house $10 each High efficiency light bulbs 5 to 30 watts ENERGY STAR® certified $7 each 3-way high efficiency light bulbs 5 to 30 watts ENERGY STAR® certified – max 2 per house $15 each Programmable thermostat Must be 7-day, 5 + 2 day or 5-1-1 day program $100 High-efficiency furnace 92+% AFUE in single-family homes or 90+% AFUE in mobile homes – max 1 per house $3,500 Natural gas water heater 0.67 EF – max 1 per house $1,500 Electric water heater Where no gas service or it is infeasible to install $1,000 gas water heater – 0.89 EF – max 1 per house Venting for furnace or water Heater Refrigerator $250 each Replacement is indicated based on baseload appliance rating tool (BART) test – max 1 per house $850 Freezer Replacement is indicated based on BART test – max 1 per house $650 Clean and tune natural gas furnace May be performed on 1 existing natural gas furnace per house, regardless of efficiency level $125 Infiltration measures Caulking and sealing of whole house as indicated by initial assessment including attic bypass sealing $500 Duct sealing Only applicable to ducts in unconditioned space $350 Insulation measures Includes wall, attic, floor or foundation, duct, underbelly, and band joist insulation or a combination thereof2 General repairs In support of successful application of efficiency $400 measures 1 MidAmerican $4,000 must directly provide the energy (either natural gas or electricity) used by the weatherization measure being installed and the customer must be on a residential rate. 2 CAP agencies may request a waiver from the utility when the size of the home requires additional insulation to achieve the required goal. 38 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 8 of 9 MidAmerican offers incentives for the current program year until approved funds are exhausted or until December 31 of each program year, whichever comes first. MidAmerican performs an annual review of rebate levels and performance criteria and may adjust rebates as market conditions change. This may include temporary reduction or suspension of incentives to appropriately manage program costs. Marketing Plan General Marketing Plan Marketing and outreach for MidAmerican’s statewide weatherization program is performed by the CAP agencies using their existing network and infrastructure. Marketing and outreach for the supplemental weatherization program is performed by both GIAC and CAP agencies using their existing network and infrastructure. Home Energy Report participants are selected by the implementation contractor based on eligibility and do not require marketing and outreach. Trade Ally Targets The trade allies that support the statewide weatherization component work as subcontractors to the CAP agencies responsible for program administration. Additionally, HVAC contractors and appliance dealers provide replacement equipment for qualifying participants. Customer Targets All three components of the program are available to qualified low income customers in existing single-family housing and some low income multi-family housing (e.g., supplemental weatherization for apartment dwellers). Program measures are only available to MidAmerican customers. To participate in the program, customers must meet income and other guidelines of the Federal LIHEAP or equivalent assistance programs. MidAmerican estimates the total number of customers eligible to participate in the Residential Low Income program is 218,000. The table on the following page outlines customer eligibility requirements. 39 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 9 of 9 Customer Eligibility Parameters Electric Equipment Natural Gas Equipment Customer Class Residential electric rate Residential natural gas rate Customer Status Customer homeowners; apartment dwellers Customer homeowners; apartment dwellers Building Type Single-family; Manufactured home; Multifamily Single-family; Manufactured home; Multifamily Building Vintage Existing construction Existing construction Geography MidAmerican Iowa electric service territory* MidAmerican Iowa natural gas service territory* * When possible, MidAmerican will coordinate with other participating utilities in joint efforts to promote energy efficiency. Promotion Marketing and outreach for MidAmerican’s statewide weatherization program is performed by the CAP agencies using their existing network and infrastructure. Marketing and outreach for the supplemental weatherization program is performed by both GIAC and CAP agencies using their existing network and infrastructure. Home Energy Report participants are selected by the implementation contractor based on eligibility and do not require marketing and outreach. 40 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 1 of 6 MidAmerican Energy Company Iowa Energy Efficiency Plan 2019-2023 Residential Load Management Program Description of Program The Residential Load Management program provides financial incentives to residential customers in exchange for allowing MidAmerican to control their central air conditioning on hot summer days when MidAmerican forecasts the possibility of setting a system peak demand or when operational conditions require program use (an “event”). The program is promoted under the service mark SummerSaverSM. The program reduces the peak demand for electricity by cycling participants’ air conditioners or air-source heat pumps during the course of an event. Customers can participate through the use of a qualifying smart thermostat or a MidAmerican-installed load control receiver (LCR). Residential electric customers who live in owner-occupied, single-family homes and have a qualifying central air conditioning system are eligible for the program. Additionally the customer must live in a town serviced by the program, and the customer’s air conditioning system must be in good working order with demonstrated usage. Certain models of central air conditioners, however, may not be compatible with the technology of the program, and will not be able to participate. Additionally, customers with geothermal heat pumps are not eligible for the program. Measure List The Residential Load Management program provides rebates and incentives for the following measures:   LCR installed for central air conditioner or air-source heat pump cycling Qualifying self-installed smart thermostats MidAmerican performs an annual review of qualifying measures and may adjust measures and eligibility requirements in the future as market conditions and equipment standards change. Budgets Anticipated five-year spending for the Residential Load Management program is as follows: Electric Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 1,904,251 $ 1,904,251 $ 1,904,251 $ 1,904,251 $ 1,904,251 $ 9,521,253 There are no gas costs associated with this program. 41 Incentive Cost $ 1,340,000 $ 1,350,000 $ 1,380,000 $ 1,410,000 $ 1,440,000 $ 6,920,000 Total Cost $ 3,244,251 $ 3,254,251 $ 3,284,251 $ 3,314,251 $ 3,344,251 $ 16,441,253 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 2 of 6 Detailed budgets by spending category and staffing assumptions in FTEs for this program are provided in Application Exhibit 4 Budget/Accounting for Costs. Energy Savings Anticipated savings levels for the Residential Load Management program are as follows: Electric Savings 2019 2020 2021 2022 2023 Total Annual kWh 487,100 488,100 489,100 490,100 491,100 2,445,500 Peak kW 39,817 41,017 42,217 43,417 44,617 211,083 There are no gas savings associated with this program. Participation Participation estimates for each measure offered in this program are provided in Application Exhibit 3 Benefit Cost (2 of 2). Cost Effectiveness Anticipated total net economic benefits of the program are as follows: Program Program Benefits Program Costs Net Economic Benefits Societal Test Ratio Electric $38,052,481 $15,533,587 $22,518,894 2.45 Total $38,052,481 $15,533,587 $22,518,894 2.45 Operations Description of Operations Participants agree to allow MidAmerican to control customer cooling equipment during the four summer months (June to September). Participation can be through an LCR or a qualifying selfinstalled smart thermostat. For customers participating through an LCR, MidAmerican installs a device on participants’ houses near their outside disconnect switches and air conditioning compressors. An outside disconnect switch for the air conditioning system is required for program participation. If the customer’s home does not already have one, MidAmerican installs one for no charge to facilitate program participation. LCRs operate by overriding customers’ thermostats and shutting down the outdoor compressor, but allowing the indoor furnace fan to continue circulating previously cooled indoor air. MidAmerican activates the LCRs through a pager network. 42 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 3 of 6 Customers participating through a qualifying smart thermostat will have the temperature remotely adjusted by the thermostat’s manufacturer during an event. MidAmerican’s cycling periods run from 2:00 to 7:00 p.m., with randomized programming to minimize impacts on local distribution systems. The actual start time can vary between 2:00 and 2:30 p.m., with corresponding end times between 7:00 and 7:30 p.m. Cycling events may be called by MidAmerican or its Regional Transmission Organization, the Midcontinent Independent Transmission Operator, Inc. Key steps in the program include:          Solicit participants – Soliciting new program participants through direct mailings to targeted customers Enroll participants – Enrolling new participants Install LCRs – Coordinating installation of LCRs Verify qualifying smart thermostat – Determining if the registered thermostat will respond to a cycling event Manage events – Managing cycling events during the summer season Maintain LCRs – Servicing and maintaining installed LCRs Process incentives – Processing incentive bill credits through the billing system Manage participants leaving program – Processing customers leaving the program, including removing LCRs (if necessary) and paying partial credits via check Recruit participants that move – Contact customers moving into homes of previous participants and current participants that move into new eligible homes Description of Outside Services MidAmerican staff provides overall strategic direction for the program, conducts research and development, and provides promotion, trade ally support, evaluation, and other administrative functions. MidAmerican’s program contractor answers customer questions using a dedicated toll-free phone line, tracks program data, operates program software and hardware systems, and helps coordinate incentives with MidAmerican’s billing and accounts payable departments. The program contractor also maintains a network of electrical contractors responsible for installing and removing LCRs on customers’ homes. The program contractor provides oversight and is a liaison between MidAmerican and the smart thermostat manufacturer(s), verifying data transfers between manufacturer(s) and MidAmerican. MidAmerican currently contracts with A-TEC Energy Corporation for administrative services. MidAmerican procures statewide 900 MHz statewide simulcast paging service from Electronic Engineering, Inc. MidAmerican utilizes Cannon Technologies Inc., a division of Eaton Corporation, LLC, for LCRs, software systems, and software system support. MidAmerican will issue a request for proposal in 2018 for all components this program. 43 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 4 of 6 Value Proposition Customers participating in this program receive the following benefits:  Financial benefits in the form of annual incentive payments that reward them for participation  Minimization of environmental impacts of their energy usage by reducing demand during peak periods, which reduces the need for new generation  Information regarding all other residential energy efficiency programs available to MidAmerican customers Market Barriers The table below presents the key market barriers to an effective residential load management program and the strategies the program uses to address each barrier. Note these program strategies can only partially offset these barriers. Market Barriers and Strategies Market Barriers Lack of customer awareness Program Strategies Consumer education and outreach Program promotion/advertising Promotion through other residential programs Negative opinion of program expressed by heating/cooling contractors to customers concerning LCR equipment Ongoing dealer communications, outreach, and education including promotion of HVAC Dealer Information Sheet Concern that participation will result in homes being too hot during cycling events Customer education and outreach Incentives The program offers the following financial incentive to participants:  Bill credits – Rebates are offered as a credit on customers’ October or November utility bills at the completion of the cooling season.  LCR participants – First-year participants receive a $30 end-of-season bill credit and recurring participants receive a $20 bill credit.  Smart thermostat participants –  In 2019, customers with a qualifying, existing smart thermostat who begin participating in the program will receive a $50 end-of-cycle bill credit.  In 2020 and beyond, new smart thermostat participants will receive a $30 end-ofcycle bill credit.  Recurring participants will receive a $30 end-of-cycle bill credit. 44 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 5 of 6 NOTE: Participants leaving the program prior to September 30 receive checks for prorated incentives. Customers already participating in the program with an LCR are not eligible to transition to participation via a smart thermostat until the LCR replacement date or the end of their LCR’s useful life. Marketing Plan General Marketing Plan MidAmerican solicits new participants in this program as needed to maintain current participation levels through annual mailings to targeted customers. MidAmerican provides educational materials to trade allies who provide maintenance services or sell HVAC equipment. The materials describe program benefits to customers, how equipment installed on customer’s homes works, and explain how the LCR equipment does not adversely impact the customer’s equipment. Trade Ally Targets MidAmerican’s program contractor maintains a network of heating and cooling and electrical subcontractors responsible for installing, maintaining, and removing LCRs. Trade allies providing air conditioner maintenance and selling air conditioning equipment also can influence customers’ decisions to participate in the program. However, the program relies primarily on MidAmerican staff, program contractors, and subcontractors for program delivery. To support trade allies and keep them informed of program operations and changes, MidAmerican maintains an active trade ally program. An HVAC Dealer Information Sheet is prepared annually to educate HVAC dealers on the program operation. This sheet is provided at MidAmerican’s annual trade ally meetings, on MidAmerican’s website, and is also included with each email notification of a cycling event that is sent to all HVAC dealers in MidAmerican’s database. Customer Targets Any Iowa residential electric customer located in a town or area currently serviced by the program that lives in an owner-occupied, single-family home and has central air conditioning or an airsource heat pump with demonstrated usage in good working condition is eligible for the program. Certain models of central air conditioners may not compatible with the LCR technology and, therefore, will not be able to participate. Also, customers with geothermal heat pumps are not eligible for the program. MidAmerican estimates the total number of customers eligible to participate in the Residential Load Management program is 525,000. MidAmerican targets the following customers:   Residential customers with significant summer electricity usage (750 kWh or greater average during summer months) Customers moving into homes previously enrolled in the program 45 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 6 of 6    Customers previously enrolled in the program moving to new homes in MidAmerican’s service territory Customers who currently have a qualifying smart thermostat (1st year only) Customers purchasing a qualifying smart thermostat The table below outlines customer eligibility requirements. Customer Eligibility Parameters Electric Customers Customer Class Residential rates Customer Status Homeowners Building Type Single-family; Owner-occupied Building Vintage All Geography Iowa towns and areas serviced by the program Size All Other Must have central air conditioning or air-source heat pump Promotion MidAmerican will engage in a multifaceted promotional strategy, including:     Direct mailings to recruit and retain program participants Periodic articles in MidAmerican’s monthly electronic newsletter, as well as its quarterly newsletter sent with customer bills A dedicated webpage that includes program information, qualification requirements, and a program brochure Utilization of social media channels MidAmerican will continue to cross-market other energy efficiency programs through outreach and education efforts with customers participating in this program. 46 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 1 of 9 MidAmerican Energy Company Iowa Energy Efficiency Plan 2019-2023 Nonresidential Equipment Program Description of Program The Nonresidential Equipment program promotes the purchase of energy efficient equipment by nonresidential customers. The program offers financial incentives to customers installing energy efficient equipment in existing buildings. Program measures must save energy supplied directly by MidAmerican. Cost-effective qualifying nonresidential custom projects for non-standard equipment, new technologies, and alternate strategies may receive rebates through MidAmerican’s Nonresidential Energy Solutions program. The program is available to all nonresidential customers for existing buildings in MidAmerican’s Iowa service area. Nonresidential equipment installed in newly-constructed commercial buildings or multi-family housing facilities is not eligible for rebates through the Nonresidential Equipment program. However, MidAmerican’s Commercial New Construction program provides services and incentives based on the energy saving strategies chosen for renovation of existing buildings converted to apartments, as well as construction of new commercial buildings and multi-family housing facilities containing three or more units. Transportation gas customers with daily metering are ineligible for gas measure incentives; however, customers with monthly metering under the Monthly Metered Transportation service gas tariff are eligible for energy efficiency incentives. Measure List The Nonresidential Equipment program provides rebates and incentives for the following measures:   Heating and cooling equipment, including:  Central air conditioners  Natural gas furnaces  Natural gas boilers Retrofit lighting equipment, including:  LED lamps  LED fixtures Cost-effective qualifying energy efficiency measures not listed as a prescriptive measure above may be eligible for an incentive through the Nonresidential Energy Solutions program. Examples of custom projects that may qualify are:  Heat recovery systems   Variable air volume conversions Ventilation control systems 47 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 2 of 9 MidAmerican performs an annual review of qualifying measures and may adjust measures and eligibility requirements in the future as market conditions and equipment standards change. Budgets Anticipated five-year spending for the Nonresidential Equipment program is as follows: Electric Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 792,145 $ 792,145 $ 792,145 $ 807,988 $ 823,831 $ 4,008,254 Incentive Cost $ 4,850,623 $ 4,860,748 $ 4,860,748 $ 6,053,627 $ 6,468,286 $ 27,094,032 Total Cost $ 5,642,768 $ 5,652,893 $ 5,652,893 $ 6,861,615 $ 7,292,117 $ 31,102,287 Gas Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 142,065 $ 144,906 $ 147,804 $ 150,761 $ 153,776 $ 739,312 Incentive Cost $ 97,120 $ 117,588 $ 140,285 $ 163,802 $ 167,673 $ 686,468 Total Cost $ 239,185 $ 262,494 $ 288,089 $ 314,563 $ 321,449 $ 1,425,780 Total Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 934,210 $ 937,051 $ 939,950 $ 958,749 $ 977,607 $ 4,747,566 Incentive Cost $ 4,947,743 $ 4,978,336 $ 5,001,033 $ 6,217,429 $ 6,635,959 $ 27,780,501 Total Cost $ 5,881,953 $ 5,915,387 $ 5,940,983 $ 7,176,178 $ 7,613,566 $ 32,528,067 Detailed budgets by spending category and staffing assumptions in FTEs for this program are provided in Application Exhibit 4 Budget/Accounting for Costs. Energy Savings Anticipated savings levels for the Nonresidential Equipment program are as follows: Electric Savings 2019 2020 2021 2022 2023 Total Annual kWh 27,286,125 27,344,775 27,344,775 34,092,300 36,453,656 152,521,631 48 Peak kW 9,733 9,754 9,754 12,157 12,996 54,394 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 3 of 9 Gas Savings 2019 2020 2021 2022 2023 Total Annual Therms 90,978 110,772 131,412 153,567 157,441 644,169 Peak Therms 1,125 1,370 1,626 1,900 1,948 7,968 Participation Participation estimates for each measure offered in this program are provided in Application Exhibit 3 Benefit Cost (2 of 2). Cost Effectiveness Anticipated total net economic benefits of the program are as follows: Program Program Benefits Program Costs Net Economic Benefits Societal Test Ratio Electric $ 138,277,217 $ 76,418,629 $ 61,858,588 1.81 Gas $ 5,127,892 $ 2,357,529 $ 2,770,363 2.18 Total $ 143,405,109 $ 78,776,158 $ 64,628,951 1.82 Operations Description of Operations Key steps in program participation include:      Pre-Notification submittal – Funding is limited; therefore, nonresidential prescriptive projects with projected rebate amounts greater than or equal to $25,000 will require prenotification to MidAmerican to reserve funds. MidAmerican must provide pre-notification approval prior to the purchase and installation of equipment or systems. Funds that have been reserved for specific applications are not transferable to other projects, facilities/ campuses, and/or customers. A reservation does not guarantee an incentive. Project installation – Customer may begin installation of equipment after receiving prenotification approval and must complete installation within 90 days of pre-notification approval. Final Application submittal – Customer will submit a final application with required documentation after installation of qualifying energy efficiency measures has been completed. Trade allies may assist a customer with this step. Final applications must be received within 90 days after reservation date or within 60 days of the dealer’s invoice for the equipment/materials purchased, whichever is less. Project verification – The program contractor may conduct verification activities on existing and/or new equipment prior to installation or post-installation prior to payment. Quality assurance/Quality control review – The application and supporting documentation is reviewed to determine if the project qualifies for financial incentives. 49 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 4 of 9  Rebate processing and database maintenance – The program contractor and MidAmerican process rebates and maintain the database for tracking and reporting purposes. Description of Outside Services MidAmerican staff provides overall strategic direction for the program, conducts research and development, and provides promotion, trade ally support, evaluation, and other administrative functions. The program is delivered through the assistance of a program contractor that provides call center and rebate processing services. MidAmerican currently contracts with A-TEC Energy Corporation for management and administrative services. MidAmerican regularly reviews its contractor needs and contractual agreements as part of its internal program evaluation process. MidAmerican will issue a request for proposal in 2018 for this program. Value Proposition Customers participating in the program receive these benefits:    Customers save money in the short term through rebates and in the long term through lower energy bills. Customers receive reliable advice about high quality energy efficient equipment from a trustworthy source. The process is simple and straightforward. Equipment rebates are accessible to any eligible customer for qualifying equipment. Market Barriers The table on the following page presents the key market barriers to a successful nonresidential equipment program and strategies the program uses to address each barrier. These program strategies can only partially offset these barriers. 50 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 5 of 9 Market Barriers and Strategies Market Barriers Program Strategies Higher first cost of energy efficient equipment Offer rebates Educate customers on the long-term energy cost-saving benefits of higher efficiency equipment Time required to fill out rebate forms Provide simple rebate forms through a variety of media (e.g., mail-in, online) Allow trade allies to fill in rebate forms for the customers at the time of equipment purchase Customers do not bother to look for qualifying measures Trade ally training to help customers quickly identify appropriate measures and products Market program and general efficiency awareness to customers Provide efficiency education to customers Lack of availability of qualifying equipment Promote programs to customers so they ask for qualifying equipment and dealers stock it Provide trade ally training Customers do not understand the long-term value of high efficiency equipment Train trade allies to explain life-cycle costs to customers Market program and general efficiency awareness to customers Provide energy efficiency education to customers Dealers are unaware of the program Provide outreach and marketing to dealers Incentives The program offers the following financial incentive to participants:  Prescriptive Rebates – Rebates are offered on a per-measure basis to program participants installing qualifying equipment. For some equipment, the rebate will be a fixed amount per measure; for other equipment, the rebate will increase with increasing equipment efficiency. Prescriptive rebates are capped at $25,000 per project. The table on the following page presents the rebates available for measures included in the Nonresidential Equipment program. 51 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 6 of 9 Nonresidential Equipment Rebates by Measure Measure Qualifying Efficiency* Rebate Amount Central Air Conditioners SEER 15-15.9 SEER 16-16.9 SEER 17-17.9 SEER 18 and above $75 per unit $150 per unit $300 per unit $500 per unit Natural Gas Furnaces AFUE 96 and above $175 per unit Natural Gas Boilers 0.87-0.899 AFUE 0.90-0.949 AFUE 0.95 AFUE and above $4.00 per MBtuh $5.00 per MBtuh $6.50 per MBtuh LED Linear Replacement Lamps <1,200 to 4,000 Lumens $3.00 per lamp LED Troffers fixtures & Retrofit kits 1,500 to 7,500 Lumens $15 to $30 per fixture or kit LED Linear Ambient Fixtures 3,000 to 7,500 Lumens $30 per fixture LED Low and High-Bay Fixtures <10,000 to 30,000 Lumens $40 to $324 per fixture LED Exterior Fixtures <10,000 to 15,000 Lumens $50 to $400 per fixture * Based on the Iowa Technical Reference Manual Customer Rebate Cap Available Per Program Year – Rebates are subject to limits to encourage equitable distribution of limited funds among as many utility customers as possible. Customer rebate limits are across all projects under one tax identification number. The total customer cap (across all facilities saving electricity and/or natural gas) for installing eligible measures is $250,000 per program year, excluding rebates received through the Commercial New Construction program. The rebate limit is based on actual payments (prescriptive and/or custom) per customer and applies even if payments for some or all projects are paid to one or more trade allies. MidAmerican offers incentives for the current program year until approved funds are exhausted or until December 31 of each program year, whichever comes first. MidAmerican performs an annual review of rebate levels and performance criteria and may adjust rebates as market conditions change. This may include temporary reduction or suspension of incentives in order to appropriately manage program costs. 52 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 7 of 9 Marketing Plan General Marketing Plan To encourage customer participation and implementation of energy efficient measures and equipment, MidAmerican will target nonresidential customers using traditional and non-traditional marketing channels, and provide education and outreach to customers, trade allies, and industry organizations. MidAmerican account managers will promote the program to mid-size and large commercial and industrial customers during routine contacts. Additionally, account managers generally provide printed program brochures to their assigned accounts during the first quarter, which allows the account managers to review the program and answer any questions these customers may have regarding the program. MidAmerican will regularly review and update customer-facing program information and marketing materials as part of its internal program evaluation process, and adjust materials as needed based on program adjustments and market characteristics. Trade Ally Targets Any business that sells or installs qualifying equipment within MidAmerican’s service territory may participate in the program. The following types of trade allies are predominant:        HVAC equipment distributors, dealers, and service providers Plumbing and mechanical contractors Lighting distributors and dealers Electrical contractors Boiler distributors and dealers Engineering firms Architects Trade allies play a key role in program implementation. To support its trade allies and keep them informed of program opportunities and changes, MidAmerican maintains an active trade ally program. Further information regarding trade allies is in the Education program section. Customer Targets The target market for this program includes commercial and industrial customers of all sizes for existing facilities. MidAmerican estimates the total number of customers eligible to participate in the Nonresidential Equipment program is 110,000. The table below outlines customer eligibility requirements. 53 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 8 of 9 Customer Eligibility Parameters Electric Equipment Natural Gas Equipment Customer Class Nonresidential electric rates Nonresidential natural gas rates. Gas transportation customers with daily metering are ineligible Customer Status Building or business owners; property managers of customers Building or business owners; property managers of customers Building Type All All Building Vintage Existing Existing Geography MidAmerican’s Iowa electric service area MidAmerican’s Iowa natural gas service area Promotion MidAmerican will engage in a multifaceted promotional strategy, including:          Direct outreach through account managers and a network of trade allies Direct outreach to specific customer types/classes for specific campaigns Direct outreach to targeted trade allies Ongoing trade ally education about program procedures and benefits, qualifying measures, and equipment and rebate structures Attendance and program promotion at industry, community, and organization/association events Periodic articles in MidAmerican’s monthly electronic newsletter and its quarterly newsletter sent with customer bills A dedicated webpage that includes program information, qualification requirements, and a program brochure A direct marketing campaign targeting specific nonresidential segments with industryspecific information through direct mail, phone calls, or emails to encourage participation Utilization of social media channels Program referrals are also expected from trade allies. Information will be available on a dedicated portion of MidAmerican’s energy efficiency website to assist trade allies in marketing and delivering energy efficient products and services to customers, while encouraging participation in energy efficiency programs. The website offers trade allies the opportunity to order program materials, learn about program changes, and provide contact information for future communications. To keep trade allies informed and engaged with the program, MidAmerican will periodically provide program information and training via a variety of different communication modes to create 54 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 9 of 9 overarching energy efficiency and program awareness among its customers and trade allies. MidAmerican’s Trade Ally Central website provides additional resources for trade ally engagement. 55 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 1 of 11 MidAmerican Energy Company Iowa Energy Efficiency Plan 2019-2023 Nonresidential Energy Solutions Program Description of Program The Nonresidential Energy Solutions program promotes comprehensive energy efficiency for existing commercial buildings and industrial facilities through two offerings: 1) Small Business Express; and 2) Direct Project Assistance. These offerings are tailored to the unique needs of nonresidential customers by size and purpose. Business owners can increase their bottom lines and property values by lowering monthly operating costs and investing in advanced efficient technologies while improving building operations and comfort. Qualifying customers receive expert project evaluation advice and financial incentives to help offset the costs of new energy efficiency investments. This program will also serve agriculture and market-rate multi-family customers. For multi-family properties, the existing structure must have three or more units and be served through nonresidential rates. These participants generally are property management companies or multi-family housing property owners. The Nonresidential Energy Solutions services are available to all commercial and industrial (manufacturing) facilities, multi-family properties, and agriculture customers that receive electricity and/or natural gas directly from MidAmerican. Transportation gas customers with daily metering are ineligible for gas incentives. However, customers with monthly metering under the Monthly Metered Transportation service tariff are eligible for these energy efficiency incentives. Small Business Express Small Business Express is a turnkey offering targeted at small commercial buildings and small manufacturers, generally fewer than 50,000 square feet and less than $100,000 per year in energy costs. Third-party qualified service providers will identify energy efficiency opportunities, equipment upgrades customized for their facility, and reduced cost installation services. These buildings can generally achieve good energy savings from simple energy efficiency strategies without having to incur the expense and capital investments to replace equipment. Eligible participants must complete multiple equipment/measure improvements after wholebuilding energy savings opportunities are identified. Incentives are issued directly to the qualified service provider, which reduces the upfront cost to customers. Examples of corrective measures might include lighting, advanced controls, refrigeration, steam trap repair and replacement, failed pipe insulation repair, boiler tune-up, and building optimization. Direct Project Assistance Direct Project Assistance is targeted to mid-to-large commercial and industrial facilities with customer-identified projects. Assistance will be provided throughout the project cycle at no cost to customers. Assistance includes system-specific engineering consultations, project evaluation 56 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 2 of 11 services, and project support to motivate customers to pursue energy-saving opportunities. These services may take the form of:    Consultation – flexible, timely analysis to assist in the decision-making process and quick, first-order analysis/estimates Engineering support – this service is designed to take a comprehensive look at projectspecific equipment and processes within a facility and provide a cost-effective, energysaving recommendation Implementation support – will provide varying levels of implementation support depending on the customer need, project complexity, and size of a project. This support may include answering project-specific questions, assisting with the development of detailed requests for proposals, reviewing vendor bids, reviewing proposals on systems that require additional detailed study, assisting with applications for rebate, and other support. Measure List Any prescriptive or cost-effective qualifying custom energy efficiency measure is potentially eligible for the Nonresidential Energy Solutions program. Typical measures include:      LED Lighting systems Daylighting and other lighting controls Advanced HVAC controls Process controls Specialty process equipment specific to individual customers MidAmerican performs an annual review of qualifying measures and may adjust measures and eligibility requirements in the future as market conditions and equipment standards change. Budgets Anticipated five-year spending for the Nonresidential Energy Solutions program is as follows: Electric Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 1,552,673 $ 1,583,727 $ 1,583,727 $ 1,647,709 $ 1,680,664 $ 8,048,500 Incentive Cost $ 7,699,854 $ 7,980,959 $ 7,980,959 $ 8,812,702 $ 8,939,516 $ 41,413,989 Total Cost $ 9,252,527 $ 9,564,686 $ 9,564,686 $ 10,460,412 $ 10,620,179 $ 49,462,489 Gas Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 100,890 $ 102,908 $ 104,966 $ 107,065 $ 109,206 $ 525,035 Incentive Cost $ 516,569 $ 541,005 $ 618,334 $ 692,192 $ 728,423 $ 3,096,522 Total Cost $ 617,459 $ 643,912 $ 723,299 $ 799,257 $ 837,629 $ 3,621,557 57 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 3 of 11 Total Spending 2019 2020 2021 2022 2023 Total $ $ $ $ $ $ Administrative Cost 1,653,563 1,686,634 1,688,693 1,754,774 1,789,870 8,573,535 $ $ $ $ $ $ Incentive Cost 8,216,422 8,521,963 8,599,292 9,504,894 9,667,939 44,510,511 $ $ $ $ $ $ Total Cost 9,869,985 10,208,598 10,287,985 11,259,669 11,457,809 53,084,046 Detailed budgets by spending category and staffing assumptions in FTEs for this program are provided in Application Exhibit 4 Budget/Accounting for Costs. Energy Savings Anticipated savings levels for the Nonresidential Energy Solutions program are as follows: Electric Savings 2019 2020 2021 2022 2023 Total Gas Savings 2019 2020 2021 2022 2023 Total Annual kWh 60,114,520 62,907,760 62,907,760 69,301,240 70,161,312 325,392,592 Peak kW 11,845 12,318 12,318 13,527 13,666 63,673 Annual Therms 199,555 213,810 262,623 283,937 306,344 1,266,268 Peak Therms 2,107 2,264 2,778 3,012 3,252 13,414 Participation Participation estimates for each measure offered in this program are provided in Application Exhibit 3 Benefit Cost (2 of 2). Cost Effectiveness Anticipated total net economic benefits of the program are as follows: Program Program Benefits Program Costs Net Economic Benefits Societal Test Ratio Electric $ 299,840,004 $ 134,901,599 $ 164,938,406 2.22 58 $ $ $ Gas 12,695,249 6,965,265 5,729,984 1.82 $ $ $ Total 312,535,253 141,866,864 170,668,389 2.20 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 4 of 11 Operations Description of Operations The program uses distinct processes for each of the offerings, which are detailed below. Small Business Express – the Small Business Express offering is designed to provide small commercial buildings and industrial facilities with a streamlined approach to achieve energy savings. Participants are encouraged to pursue comprehensive energy saving opportunities and will work in conjunction with a network of trade allies. Key steps in the Small Business Express operation include:        Screening – MidAmerican will confirm the eligibility of customers interested in participating in Small Business Express. Energy efficiency opportunities identified – A qualified service provider will review the commercial building or industrial facility and operating equipment, systems, and processes. Energy-saving opportunities will be recorded using a program-provided tool. Energy savings opportunity report – A report will be generated by the tool and provided to the customer. The report will summarize the recommended energy-saving opportunities, incentives, and next steps. The results will provide the details necessary to allow the customer to make an informed decision about which energy-saving opportunities to pursue. Implementation support – The customer selects a qualified service provider to implement the upgrades. The program contractor may provide varying levels of implementation support depending on the customer needs. Project preapproval and/or pre-notification will apply to the projects in the Small Business Express offering in the same manner as the process outlined in the Nonresidential Equipment program. Installation – The qualified service provider will coordinate installation of the selected energy-saving opportunities and communicate project completion. Verification – The program contractor may conduct verification activities on existing equipment prior to installation or post-installation prior to payment. Rebate processing and database maintenance – The program contractor and MidAmerican staff process rebates and maintain the database for tracking and reporting purposes; rebates will be paid directly to the qualified service provider. Direct Project Assistance – Key steps in the Direct Project Assistance include:    Project Evaluation – Customer-identified projects can be further evaluated to refine savings estimates and/or compare the advantages of various implementation approaches to help customers make an informed business decision. Project preapproval and/or prenotification will apply to the projects in the Small Business Express offering in the same manner as the process outlined in the Nonresidential Equipment program. Rebate application – When a customer completes a prescriptive or custom project, they submit an application form for review and processing. Verification – The program contractor may conduct verification activities on existing equipment prior to installation or post installation prior to payment. 59 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 5 of 11  Rebate processing and database maintenance – The program contractor and MidAmerican process rebates and maintain the database for tracking and reporting purposes. Description of Outside Services MidAmerican staff provides overall strategic direction for the program, conducts research and development, and provides promotion, trade ally support, evaluation, and other administrative functions. The program is delivered through the assistance of a program contractor(s) that provides energy analysis, energy management education, project management, verification, and information technology services. The contractor(s) also helps MidAmerican strengthen relations with key trade allies and assists with data tracking and rebate processing. MidAmerican contracts with CLEAResult and Nexant, Inc. to administer the Commercial Energy Solutions and Industrial Partners assessment programs currently offered in MidAmerican’s 20142018 energy efficiency plan. MidAmerican also currently contracts with A-TEC Energy Corporation for administrative and evaluation services for commercial customers. MidAmerican regularly reviews its contractor needs and contractual agreements as part of its internal program evaluation process. MidAmerican will issue a request for proposal in 2018 for this program. Value Proposition Customers in the Nonresidential Energy Solutions program will receive these main benefits: Financial Assistance    Rebates that reduce the payback of implemented energy efficiency measures Energy savings for the lifetime of the installed measures Increased property values due to lower monthly operating costs, investment in advanced efficient technologies, and improved building operation and comfort Project Assistance     Access to a team of independent, unbiased engineers to help evaluate energy-saving opportunities Comprehensive information regarding the costs and benefits of project specific energy efficiency strategies Assistance with obtaining qualified trade allies to ensure successful project implementation Professional, independent estimation and verification of measure savings Market Barriers The table on the following page presents the key market barriers to an effective Nonresidential Energy Solutions program and strategies the program uses to address each barrier. These program strategies may only partially offset the barriers. 60 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 6 of 11 Market Barriers and Strategies Market Barriers to Energy-Efficient Buildings Program Strategies High cost of efficient equipment and competition for capital expenses Provide rebates set at levels to help offset incremental costs and compete favorably with other investments Time and resource constraints Provide free project assistance to help evaluate costeffective options Empower facility staff to identify and implement lowcost/no-cost operational improvements within their facilities Provide a flexible and streamlined participation process Provide customers with the tools and program resources needed to help organize and strategically implement identified efficiency opportunities Maintain a network of qualified trade allies to assist with obtaining a qualified contractor Deliver a program that offers participants flexibility, high-level customer support and follow-through Provide simple maintenance tips for ongoing savings Lack of confidence in savings estimates from vendors Offer independent third-party estimation and verification of energy savings Develop and share case studies of actual projects with energy savings where appropriate Low customer awareness of program Marketing and direct outreach to targeted customers Low trade ally awareness Ongoing trade ally communications and outreach Split incentive (i.e., rental property owners own the building, but the tenants pay the utility bills) Provide financial incentives for energy efficiency upgrades Educate landlords about increasing property values and greater demand for units resulting from energy upgrades Develop a network of qualified trade allies who are capable of effectively promoting the program to potential participants 61 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 7 of 11 Market Barriers and Strategies (continued) Market Barriers to Energy-Efficient Buildings Program Strategies Building owners often choose to use their limited resources to make capital improvements to items seen by their tenants (e.g., paint, floor coverings, decorations) Educate the building owner on the importance of energy-related capital improvements such as ENERGY STAR® certified appliances, heating and cooling improvements, and efficient lighting products Agriculture sector equipment may be used heavily during short time periods (e.g., during harvest) and, therefore, does not always fit into incremental cost versus savings eligibility criteria Offer a combination of prescriptive and custom incentives Support leveraging additional funds through the federal Farm Bill and other programs Incentives MidAmerican offers the following financial incentives to participants through this program: Small Business Express Prescriptive rebates, as outlined in the Nonresidential Equipment program, will apply to projects in the Small Business Express offering; additional rebates may be developed for other common measures encountered in small commercial buildings or industrial facilities.  Project rebates – Rebates are offered either on a per-measure basis or a fixed rate per kilowatt-hour/therm of annual energy savings to program participants installing qualifying equipment. Rebates are capped at $25,000 per project. Direct Project Assistance   Project assistance – Project assistance is provided throughout the project cycle at no cost to customers. Assistance includes system-specific engineering consultations, project evaluation services, project management support to help customers develop, manage, and implement energy efficiency action plans, and verification of installed projects. Implementation support – Customers have the option of receiving additional assistance with project implementation, which may include:  Obtaining and reviewing vendor bids  Performing and/or refining energy analysis as project scope matures 62 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 8 of 11   Equipment incentives    Acquiring and reviewing trend data as required by the program or to help inform an investment decision Prescriptive Rebates – Prescriptive rebates, as outlined in the Nonresidential Equipment program, will apply to projects in the Nonresidential Energy Solutions program. Rebates are offered on a per-measure basis to program participants’ installing qualifying equipment. For some equipment, the rebate will be a fixed amount per measure; for other equipment, the rebate will increase with increasing equipment efficiency. Electric prescriptive rebates are capped at $25,000 per project. Gas prescriptive rebates are capped at $5,000 per project. Custom Rebates – Rebates are offered on a fixed rate per kilowatt-hour/therm of annual energy savings to program participants installing qualifying equipment. Custom rebates are limited to $100,000 per project.  Rebates for Electric improvements:  HVAC – $0.12 per kilowatt-hour saved  Lighting – $0.10 per kilowatt-hour saved  Process/Other – $0.08 per kilowatt-hour saved  Rebate for Natural Gas improvements:  All improvement types – $1.00 per therm saved NOTE: All of the above project incentives will be included in the Customer Rebate Cap per Program Year.  Customer Rebate Cap Per Program Year – Rebates are subject to limits to encourage equitable distribution of limited funds among as many utility customers as possible. Customer rebate limits are across all projects under one tax identification number. The total customer cap (across all facilities saving electricity and/or natural gas) for installing eligible measures is $250,000 per program year, excluding rebates received through the Commercial New Construction program. The rebate limit is based on actual payments (prescriptive and/or custom) per customer and applies even if payments for some or all projects are paid to one or more trade allies. MidAmerican offers incentives for the current program year until approved funds are exhausted or until December 31 of each program year, whichever comes first. MidAmerican performs an annual review of rebate levels and performance criteria and may adjust rebates as market conditions change. This may include temporary reduction or suspension of incentives in order to appropriately manage program costs. Marketing Plan General Marketing Plan The Small Business Express offering will target small commercial buildings and industrial facilities through a network of qualified service providers. For Direct Project Assistance, MidAmerican will also use traditional and nontraditional marketing channels to provide education and outreach to 63 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 9 of 11 customers, trade allies, and trade organizations to encourage customer participation and implementation of customer identified energy-saving opportunities. MidAmerican will regularly review and update customer-facing program information and marketing materials as part of its internal program evaluation process, and adjust materials as needed based on program changes and market characteristics. Trade Ally Targets The program relies primarily on the following trade allies for program delivery:     Lighting dealers and installers HVAC contractors Mechanical, electrical, and equipment contractors Specialized farm equipment dealers, developer/contractors Trade allies play a key role in supporting the program. To support its trade allies and keep them informed of program opportunities and changes, MidAmerican maintains an active trade ally program. Further information regarding trade allies can be found in the Education program section. Customer Targets The program targets existing commercial buildings and industrial facilities of any size and multifamily market-rate housing building owners of three or more tenant-occupied units. MidAmerican estimates the total number of eligible customers to participate in the Nonresidential Energy Solutions program is 213,000. The table on the following page outlines customer eligibility requirements. 64 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 10 of 11 Customer Eligibility Parameters Electric Equipment Customer Class Natural Gas Equipment Commercial and Industrial – Nonresidential electric rates Commercial and Industrial – Nonresidential natural gas rates Multi-family Market Rate and Agribusiness or Farms – Nonresidential electric rate Multi-family Market Rate and Agribusiness or Farms – Nonresidential gas rate Gas transportation customers with daily metering are ineligible Customer Status Building Type Building Vintage Customer facility or company management Customer facility or company management Landlords of customers Landlords of customers Commercial buildings Commercial buildings Industrial facilities Industrial facilities Grain, dairy, livestock, and specialty farms (e.g., grain elevators) Grain, dairy, livestock, and specialty farms (e.g., grain elevators) Multi-family housing three units or more (e.g., apartment buildings, condominiums, mixed-use) Multi-family housing three units or more (e.g., apartment buildings, condominiums, mixed-use) Existing commercial buildings; industrial facilities; multi-family housing; agriculture buildings Existing commercial buildings; industrial facilities; multi-family housing; agriculture buildings New industrial construction facilities New industrial construction facilities Building Size Geography All – commercial buildings; industrial All – commercial buildings; industrial facilities; agriculture buildings facilities; agriculture buildings Multi-family – three or more living units Multi-family – three or more living units MidAmerican Iowa electric service territory MidAmerican Iowa natural gas service territory 65 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 11 of 11 Promotion MidAmerican will engage in a promotional strategy that includes:           Direct outreach through a network of qualified service providers for the Small Business Express offering Direct outreach to specific customer types/classes for specific campaigns Direct outreach to targeted trade allies Ongoing trade ally education about program procedures and benefits, qualifying measures, and equipment and rebate structures Attendance and program promotion at industry events, trade shows, and educational events across the state Periodic articles in MidAmerican’s electronic newsletter and its quarterly newsletter sent with customer bills Advertisements and case studies in appropriate professional and trade journals and publications A dedicated webpage that includes program information and qualification requirements A reference to MidAmerican’s energy efficiency website will appear periodically on customer bills and in the electronic newsletter Utilization of social media channels Program referrals also are expected from trade allies. Information will be available on a dedicated portion of MidAmerican’s energy efficiency website to assist trade allies in marketing and delivering energy-efficient products and services to customers, while encouraging participation in energy efficiency programs. The website offers trade allies the opportunity to order program materials, learn about program changes, and provide contact information for future communications. To keep trade allies informed and engaged with the program, MidAmerican will periodically provide program information and training via a variety of different communication modes to create overarching energy efficiency and program awareness among its customers and trade allies. MidAmerican’s Trade Ally Central website provides additional resources for trade ally engagement. 66 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 1 of 9 MidAmerican Energy Company Iowa Energy Efficiency Plan 2019-2023 Commercial New Construction Program Description of Program The Commercial New Construction program promotes the design and construction of highefficiency commercial buildings, including new building construction and major renovations of existing buildings. The program is delivered in partnership with developers, architects, engineering firms, and equipment contractors, and provides a mix of technical and financial assistance to help influence projects during the planning stage. Electric energy design assistance and construction incentives are offered to reduce market barriers to incorporating electric energy efficiency in construction projects. All commercial new construction projects are ineligible for residential or nonresidential equipment prescriptive rebates. Natural gas only customers are ineligible for program participation. The program will offer a variety of services, tailored to the varying needs of different market segments. Based on project type, size, etc., the program will assign the new construction project to the appropriate service that best fits the customer’s needs. The services include:     Standard Small Service – Targets smaller projects that can be served effectively through an online energy modeling and decision-making tool, conference call assistance, and limited face-to-face meetings. Several building types up to 15,000 square feet are eligible. Standard Large Service – Targets projects larger than 15,000 square feet interested in pursuing more standard energy efficiency strategies. This service can readily accommodate fast-track projects, often smaller in size or with less complicated designs. Custom Strategy Service – Targets projects larger than 15,000 square feet interested in pursuing customized energy efficiency strategies. This service provides energy modeling of custom efficiency strategies selected by the owner/design team. Multi-family Service – Targets the needs of high-rise and low-rise multi-family housing projects. Whole-building energy analysis will be provided to guide the selection of efficiency strategies. Evaluates energy efficiency opportunities of the building, both as a whole and as individual housing units, to increase energy savings and drive energy efficiency. Services are also available as a volume-build process for retail/chain buildings that follow an organization’s standard building footprint, regardless of building size. Owners with multiple buildings with identical designs may participate through this streamlined volume-build process. Data Centers – Newly-constructed data centers are served through the Commercial New Construction program and will be provided the appropriate service. Due to the energy intensity of these building types, they are prime targets for energy efficient design measures. Energy-saving design opportunities will be identified for the customer’s unique data center environment. 67 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 2 of 9 Measure List All electric measures or strategies that improve energy efficiency relative to the State of Iowa Energy Code are potentially eligible for the Commercial New Construction program. Typical measures include:           Glazing systems and window layouts Daylighting controls Envelope systems Lighting controls and lighting designs Heating and cooling systems Load-responsive fan and pump motor controls Outside air control systems Plug Loads Kitchen equipment Other strategies unique to the project, such as data centers All commercial new construction projects are ineligible for residential or nonresidential equipment prescriptive rebates. MidAmerican performs an annual review of qualifying measures and may adjust measures and eligibility requirements in the future as market conditions and equipment standards change. Budgets Anticipated five-year spending for the Commercial New Construction program is as follows: Electric Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 660,832 $ 660,832 $ 855,832 $ 855,832 $ 1,084,835 $ 4,118,163 Incentive Cost $ 4,400,000 $ 4,600,000 $ 5,694,118 $ 5,941,688 $ 6,361,873 $ 26,997,680 Total Cost $ 5,060,832 $ 5,260,832 $ 6,549,950 $ 6,797,520 $ 7,446,708 $ 31,115,843 Detailed budgets by spending category and staffing assumptions in FTEs for this program are provided in Application Exhibit 4 Budget/Accounting for Costs. Energy Savings Anticipated savings levels for the Commercial New Construction program are as follows: Electric Savings 2019 2020 2021 2022 2023 Total Annual kWh 26,608,208 27,817,672 34,408,092 35,904,096 39,075,936 163,814,004 68 Peak kW 5,699 5,958 7,369 7,690 8,369 35,085 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 3 of 9 Participation Participation estimates for each measure offered in this program are provided in Application Exhibit 3 Benefit Cost (2 of 2). Cost Effectiveness Anticipated total net economic benefits of the program are as follows: Program Program Benefits Program Costs Net Economic Benefits Societal Test Ratio Electric $ 293,724,186 $ 52,881,112 $ 240,843,074 5.55 Total $ 293,724,186 $ 52,881,112 $ 240,843,074 5.55 Operations Description of Operations The program uses a similar process for each of the electric energy design assistance services, although services are tailored to project timing, technical expertise, and other needs of each market segment. Key steps in program operation include:         Application – The design team or owner submits an application form to prequalify the project. Screening – MidAmerican screens the project to verify that it meets program guidelines. Strategy discussion – Upon acceptance, MidAmerican’s energy design consultant facilitates energy design assistance meetings with the design team to develop optional energy conservation strategies for analysis. Consultation – The program contractor facilitates discussions and energy modeling of various energy-saving strategies. A final energy design report is provided to the owner and design team describing implementation, energy savings, and simple paybacks for the strategies. MidAmerican pays a design team participation incentive to help offset the design team members’ expenses associated with program participation. Selection – The building owner and design team choose strategies that will be incorporated into construction. After energy-saving strategies are chosen, the construction phase begins. Design requirements provided – MidAmerican provides a list of design requirements necessary to achieve the energy efficiency goal and receive the full incentive. Final verification – After construction is completed and the building is occupied, MidAmerican’s consultant will review final documents to create a final verification report and may conduct a site visit. Rebate processing and database maintenance – The program contractor and MidAmerican staff process rebates and maintain the database for tracking and reporting purposes. 69 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 4 of 9 Description of Outside Services MidAmerican staff provides overall strategic direction for the program, conducts research and development, and provides promotion, trade ally support, evaluation, and other administrative functions. The program is delivered through the assistance of a program contractor(s) that provide(s) energy design assistance, project management, and verification services. The contractor(s) also help(s) MidAmerican strengthen relations with key trade allies. A fulfillment contractor assists with data tracking and rebate processing. MidAmerican currently contracts with The Weidt Group, Inc. and A-TEC Energy Corporation for administrative and evaluation services. MidAmerican regularly reviews its contractor needs and contractual agreements as part of its internal program evaluation process. MidAmerican will be issuing a request for proposal in 2018 for this program. Value Proposition Customers participating in the program receive three main benefits: Financial benefits including:    Free energy design assistance and modeling Comprehensive construction incentives that reduce the payback period of selected energy efficiency measures Increased property values and occupancy rates due to lower monthly operating costs, investment in advanced efficiency technologies, and improved building operation and comfort Decision support including:     Valuable information on the costs and benefits of energy efficiency strategies customized to the building Detailed design specifications for selected measures Interactive online energy modeling and evaluation of energy savings strategies Multi-family projects will have energy cost savings and rebate information reported on a per housing unit basis Confidence in final design decisions due to:   Owner/developer involvement in the measure selection and review process Independent verification that selected measures are included in design specifications construction documents, and final installation 70 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 5 of 9 Market Barriers The table below presents the key market barriers to an effective commercial new construction program and strategies the program uses to address each barrier. Note these program strategies can only partially offset the barriers. Market Barriers and Strategies Market Barriers to Energy-Efficient Buildings Program Strategies Higher cost of building due to energy efficient strategies Offer incentives to help offset costs at the design phase, as well as at the construction phase Offer incentives on a per-unit basis for multi-family buildings Provide education during the process to help customers understand the benefits of these strategies Limited time to engage in long design process Offer incentives to design team as compensation for time Use a streamlined, efficient, and responsive program process Help design team bring added value to customers Lack of customer awareness of alternative design strategies Provide free design assistance Encourage high-level decision maker involvement throughout the design process Support program with education appropriate to different types of program participants (e.g., designers, owners) Customers value design features Raise customer awareness through energy design over efficiency; reluctant to spend assistance process resources on energy features Focus on long-term benefits of energy efficiency features Provide rebates to lower incremental cost of efficiency features Provide energy model results for the new technology to encourage implementation in this building or their next project Low customer awareness of program Ongoing trade ally communications and outreach Marketing and outreach to targeted customers Social media and video to reach new customers 71 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 6 of 9 Market Barriers and Strategies continued Market Barriers to Energy-Efficient Buildings Low trade ally awareness Program Strategies Ongoing trade ally support and education Ensure trade allies are aware that training sessions for this program are eligible for LEED Continuing Education Credit Late project involvement in program Develop relationships with architects to ensure contact as early as possible in the design stage Educate designers and developers about program requirements and commitments Provide information regarding prescriptive and custom incentives offered through the Nonresidential Equipment program that would be available if the project does not qualify the Commercial New Construction program Incentives MidAmerican offers the following financial electric incentives to participants:     No-Cost Energy Design Assistance – MidAmerican’s program contractor works with customers, architects, and developers during the planning and design stage and studies and tests energy efficiency strategies to be incorporated into construction plans. Design Team Incentives – Architects and engineers must dedicate considerable resources to the energy design process. To prevent the extra cost from being allocated to the customer, design team participants receive electric incentive payments to help offset expenses associated with program participation. The program offers varied amounts of electric design team incentives ranging from $1,000 to $5,500 depending on the service provided and complexity of the project. Construction Incentives – Construction incentives are paid to the building owner when a target level of energy savings above the Iowa Energy Code is achieved. Construction incentives are designed to help offset the additional cost of optimizing energy efficiency strategies in the construction of commercial buildings. The program offers electric incentives for projects resulting in at least five percent energy savings above Code, based on ASHRAE-90.1-2010 Appendix G. The program will update the Code baseline for new project starts when/if Iowa adopts a new Code. Standard Services and Custom Strategy Service Incentive Structure – Electric incentives increase with savings, from $0.06/kWh to $0.17/kWh for savings ranging from 5% to 40+% above baseline. Incentives may be revised during the plan, particularly for compatibility with Iowa’s expected energy code changes. Project incentives will be capped at a one year simple payback, may not exceed 50% of the total bundled incremental project cost beyond energy code requirements, and may not exceed $200,000 per building. 72 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 7 of 9  Multi-family Service Incentive Structure – Electric incentives will be provided on a sliding scale for residential incentives as shown in the table below. Incentives may be revised during the plan, particularly for compatibility with Iowa’s expected energy code changes. Project incentives will be capped at a one year simple payback, may not exceed 50% of the total bundled incremental project cost beyond energy code requirements, and may not exceed $200,000 per building. % Whole Building Energy Savings Compared to Energy Code 5% - 10% above energy code 11% - 15% above energy code 16% - 20% above energy code 21% - 25% above energy code 26% above energy code Incentive Per Unit $100 $300 $500 $700 $900 MidAmerican offers electric incentives for the current program year until approved funds are exhausted or until December 31 of each program year, whichever comes first. MidAmerican performs an annual review of rebate levels and performance criteria and may adjust rebates as market conditions change. This may include temporary reduction or suspension of incentives in order to appropriately manage program costs. Marketing Plan General Marketing Plan MidAmerican will target new construction projects using traditional and nontraditional marketing channels and provide education and outreach to customers, trade allies, and building community organizations to encourage customer participation and implementation of energy efficient measures and equipment. MidAmerican will regularly review and update customer-facing program information and marketing materials as part of its internal program evaluation process, and adjust materials as needed based on program adjustments and market characteristics. Trade Ally Targets The program relies primarily on the following trade allies for program delivery:      Architect and engineering firms Developers Construction firms/building contractors Design-build contractors Mechanical, electrical, and equipment contractors Trade allies play a key role in supporting the program. To support its trade allies and keep them informed of program opportunities and changes, MidAmerican maintains an active trade ally program. Further information regarding trade allies can be found in the Education program section. 73 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 8 of 9 Customer Targets The program targets electric owners, builders, and developers engaged in new construction or major renovations of buildings in the commercial sector, including qualifying low-rise and high-rise multi-family housing facilities. This program is not designed to assist industrial customers constructing new manufacturing facilities and processes. These customers may be eligible for services for new manufacturing facilities under the Nonresidential Energy Solutions program. However, industrial customers building new non-process buildings (e.g., office space, non-process warehouses) are eligible for this program. MidAmerican estimates the total number of customers eligible to participate in the Commercial New Construction program is 25,000. The table below outlines customer eligibility requirements. Customer Eligibility Parameters Electric Equipment Customer Class Nonresidential electric rates Residential electric rates for multi-family for separately metered multi-family units only Customer Status Building owners and developers Building Type Commercial buildings and low rise multi-family 3 units and greater (i.e., multi-family housing; nonmanufacturing) Building Vintage New construction Major renovation Geography MidAmerican Iowa service territory Building Size Minimum of 5,000 sq. ft. Promotion MidAmerican will engage in a multifaceted promotional strategy that will include:     Direct outreach to commercial building owners, architectural and engineering firms, builders, developers, and trade allies Promotional and educational activities, such as workshops and presentations for customers, as well as other stakeholders in the nonresidential building community Attendance and program promotion at architectural and building conferences and trade shows Recognition and awards to trade allies and customers for successful projects 74 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 9 of 9       Advertisements, customer success stories, and case studies in appropriate professional and trade journals and publications Periodic articles in MidAmerican’s electronic newsletter and its quarterly newsletter provided with customer bills A dedicated webpage that includes program information, qualification requirements, and a program fact sheet A reference to MidAmerican’s energy efficiency website that will appear periodically on customer bills and in the electronic newsletter Earned media from press releases regarding successful, high-profile projects Social media and program video Program referrals also are expected from key account managers, economic development managers, and trade allies. Information will be available on a dedicated portion of MidAmerican’s energy efficiency website to assist trade allies in marketing and delivering energy efficient products and services to customers, while encouraging participation in energy efficiency programs. The website offers trade allies the opportunity to order program materials, learn about program changes, and provide contact information for future communications. To keep trade allies informed and engaged with the program, MidAmerican will periodically provide program information and training via a variety of different communication modes to create overarching energy efficiency and program awareness among our customers and trade allies. MidAmerican’s Trade Ally Central website provides additional resources for trade ally engagement. 75 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 1 of 6 MidAmerican Energy Company Iowa Energy Efficiency Plan 2019-2023 Nonresidential Load Management Program Description of Program The Nonresidential Load Management program provides large nonresidential customers with financial incentives to reduce demand during MidAmerican’s system peak hours. Customers must commit to providing a specified amount of load reduction when called for by MidAmerican during the curtailment season (June 1 to September 30). Customers use one or more of three strategies to reduce demand during curtailment events: 1) they shed load; 2) shift load to non-peak periods; or 3) generate replacement power with on-site generators. MidAmerican staff and customers use a software system to monitor load levels in near-real time during curtailment events. Customers also receive ongoing support from their MidAmerican key account managers to assist them with program compliance and support. The program is marketed to customers as the Curtailment program. Measure List The Nonresidential Load Management program provides rebates and incentives for peak demand reduction using one or more of the following methods:    On-site generator(s) Shed load Shift load to non-peak hours Budgets Anticipated five-year spending for the Nonresidential Load Management program is as follows: Electric Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 600,000 $ 3,000,000 Incentive Cost $ 8,051,750 $ 8,051,750 $ 8,051,750 $ 8,051,750 $ 8,051,750 $ 40,258,750 Total Cost $ 8,651,750 $ 8,651,750 $ 8,651,750 $ 8,651,750 $ 8,651,750 $ 43,258,750 There are no gas costs associated with this program. Detailed budgets by spending category and staffing assumptions in FTEs for this program are provided in Application Exhibit 4 Budget/Accounting for Costs. 76 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 2 of 6 Energy Savings Anticipated savings levels for the Nonresidential Load Management program are as follows: Electric Savings 2019 2020 2021 2022 2023 Total Annual kWh 2,770,016 2,770,016 2,770,016 2,770,016 2,770,016 13,850,080 Peak kW 230,812 230,812 230,812 230,812 230,812 1,154,058 There are no gas savings associated with this program. Participation Participation estimates for each measure offered in this program are provided in Application Exhibit 3 Benefit Cost (2 of 2). Cost Effectiveness Anticipated total net economic benefits of the program are as follows: Program Program Benefits Program Costs Net Economic Benefits Societal Test Ratio Electric $ 199,490,631 $ 41,435,999 $ 158,054,632 4.81 Total $ 199,490,631 $ 41,435,999 $ 158,054,632 4.81 Operations Description of Operations The program is delivered through MidAmerican’s energy efficiency, key account management, and electric trading staff. Key steps in program participation include:  Customer information – Customer provides information to MidAmerican regarding strategy for curtailment and demonstrating ability to reduce load  Program contract – Customer signs a program contract, which describes the rights and responsibilities of customers and MidAmerican in program operations as defined by the curtailment tariff rider System installation – Necessary hardware and software systems that require, at a minimum, the installation of electric meters that can record interval data and communication lines (telephone or Internet TCP/IP) to transmit the interval data to MidAmerican for monitoring and evaluation  77 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 3 of 6      Test event – Program operations are tested during an optional mock curtailment event that MidAmerican conducts each year prior to the curtailment season Event notice – Notice of curtailment events is provided to customers at least two hours in advance of events, but commonly up to 24 hours in advance Event operation – Curtailment events are triggered by guidelines detailed in MidAmerican’s tariff rider and communicated to customers through personal communications from key account managers and through monitoring software Performance evaluation – Customer and program performance is evaluated after the curtailment season Incentive processing – Incentives are calculated and curtailment payments are processed and delivered directly to customers Participants are required to provide a dedicated meter data communication line (telephone or Internet TCP/IP) in order to use MidAmerican's web-based software application for monitoring electric loads and curtailment performance in near-real time during curtailment events. This software also includes energy analysis modules that can help customers track and manage energy consumption and costs throughout the year. These additional modules are provided at no cost to customers. Customers may also choose to install additional systems to help their facilities meet their curtailment requirements (e.g., generators, control systems). Under the terms of the tariff riders, customers that do not fully meet their contract requirements may be penalized by MidAmerican and/or removed from the program. Description of Outside Services MidAmerican energy efficiency staff provide overall strategic direction for the program, including research and development, promotion, trade ally support, evaluation, and other administrative functions. MidAmerican utilizes the Schneider Electric Energy Profiler Online Curtailment Event Manager web-based data management software application. MidAmerican regularly reviews its contractor needs and contractual agreements as part of its internal program evaluation process. Value Proposition Customers participating in the program receive three main benefits:  Financial benefits in the form of incentive payments that compensate customers for reducing load during MidAmerican’s system peak hours  Detailed information that helps customers manage their energy consumption, including advice from key account managers on curtailment strategies, near-real time load monitoring, and other tools available through MidAmerican's monitoring software and analyses of interval load data  Customers make a positive impact on future generation needs by shifting energy use away from peak times, potentially reducing the need for construction of additional electric generation 78 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 4 of 6 Market Barriers The table below presents the key market barriers to an effective nonresidential load management program and the strategies the program uses to address each barrier. Note that these strategies may only partially offset the barriers. Market Barriers and Strategies Market Barriers Customers incur costs, lose revenue and experience operational disruptions when curtailing load Program Strategies Provide financial incentives Work with customer to identify effective curtailment strategies Provide case study examples of successful curtailment strategies, including shed, shift, and generate Program requirements not well understood Provide program brochures, contracts and tariffs that clearly explain program requirements Provide ongoing support from key account managers and program implementation staff to help customers understand program requirements Lack of customer awareness Targeted marketing campaign Use other nonresidential programs to recruit eligible curtailment prospects Utilize trade allies to recruit curtailment prospects Customers do not understand their peak demand loads or potential to curtail Work with customers to analyze summer peak load data Provide engineering assistance if needed, through Nonresidential Energy Solutions program Incentives Incentives are defined on the basis of dollars per contracted kilowatt demand reduction versus achieved kilowatts of reduced demand. Customers are offered contracts in which curtailable load levels are established for all curtailment events. Payment is made at the end of the curtailment season, after MidAmerican evaluates performance. Customers delivering curtailed load below that which is required by curtailment contracts receive payment equivalent to the percentage of curtailment achieved. For example, a customer delivering only 90% of its contract amount receives 90% of the total contract incentive. Customers cannot receive more than 100% of their contract 79 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 5 of 6 incentive, even if they deliver curtailed load above their contract requirements. Customers will receive $30 per kilowatt curtailed per season. MidAmerican performs an annual review of incentive levels and performance criteria and may adjust incentives in the future as market conditions change. Marketing Plan General Marketing Plan The program is primarily marketed to the target key account customer base through one-on-one interaction with key account managers. Occasionally the program website generates leads for potential new participants. Trade Ally Targets This program is primarily delivered through MidAmerican’s internal staff. However, trade allies providing services and equipment that enable customer participation also can be helpful in identifying potential new participants. These include:   Firms that sell, specify or service emergency generators Firms that sell, specify or service energy management systems To support its trade allies and keep them informed of program opportunities and changes, MidAmerican maintains an active trade ally program. Further information regarding trade allies is found in the Education program section. Customer Targets This program targets large electric customers with a minimum of 250 kilowatts of curtailable load during MidAmerican’s peak demand periods. MidAmerican estimates the total number of customers eligible to participate in the Nonresidential Load Management program is 1,503. These target customers include:       Customers with on-site generation already installed for emergency purposes Industrial customers who can shed or shift process activities from system peak hours Customers with energy management systems or other controls that allow them to shift or shed load from system peak hours Customers in manufacturing, warehousing, hospitals, government, large offices, and data/call centers Customers with consistent load patterns throughout the summer period Sophisticated customers with on-site energy managers 80 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 6 of 6 The table below outlines customer eligibility requirements. Customer Eligibility Parameters Electric Equipment Customer Class Nonresidential electric rates serving larger customers Customer Status Customer facility or business owners Building Type All Business Type All Building Vintage Existing and new construction Geography MidAmerican’s Iowa electric service territory Able to provide at least 250 kilowatts of curtailable load Size Promotion The promotional strategy for this program relies primarily on one-on-one marketing to prospective customers by MidAmerican key account managers. The program is promoted through a program brochure that clearly explains the program, customer requirements, financial incentives and program compliance, case studies of successful curtailment strategies used by existing customers, and a program-specific Web page on MidAmerican’s energy efficiency website. 81 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 1 of 7 MidAmerican Energy Company Iowa Energy Efficiency Plan 2019-2023 Appliance Recycling Program Description of Program The Appliance Recycling program offers financial incentives to customers who stop using inefficient refrigerators and freezers, and helps customers dispose of the units in an environmentallyresponsible manner, removing such units from the market. It provides rebates to customers participating in the program, and also provides free pickup and disposal of appliances. The program extends to working, qualifying equipment, and does not require the purchase of new equipment to participate. The program primarily targets residential electric customers, but is available to all electric customers recycling residential-sized equipment, including businesses and multi-family buildings. Nonresidential expenditures will be tracked in the accounting system separately. Program measures must save electricity supplied directly by MidAmerican. Measure List The Appliance Recycling program provides rebates and incentives for the following measures:   Refrigerators Freezers MidAmerican performs an annual review of qualifying measures and may adjust measures and eligibility requirements in the future as market conditions and equipment standards change. Budgets Anticipated five-year spending for the Appliance Recycling program is as follows: Residential Budget Electric Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 205,916 $ 205,916 $ 205,916 $ 210,035 $ 210,035 $ 1,037,818 82 Incentive Cost $ 876,920 $ 876,920 $ 876,920 $ 956,640 $ 956,640 $ 4,544,040 Total Cost $ 1,082,836 $ 1,082,836 $ 1,082,836 $ 1,166,675 $ 1,166,675 $ 5,581,858 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 2 of 7 Nonresidential Budget Electric Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 10,550 $ 10,550 $ 10,550 $ 10,761 $ 10,972 $ 53,383 Incentive Cost $ 43,450 $ 43,450 $ 43,450 $ 47,400 $ 47,400 $ 225,150 Total Cost $ 54,000 $ 54,000 $ 54,000 $ 58,161 $ 58,372 $ 278,533 There are no gas costs associated with this program. Detailed budgets by spending category and staffing assumptions in FTEs for this program are provided in Application Exhibit 4 Budget/Accounting for Costs. Energy Savings Anticipated savings levels for the Appliance Recycling program are as follows: Residential Savings Electric Savings 2019 2020 2021 2022 2023 Total Annual kWh 5,256,115 5,256,115 5,256,115 5,733,943 5,733,943 27,236,230 Peak kW Annual kWh 142,406 142,406 142,406 155,352 155,352 737,922 Peak kW 732 732 732 798 798 3,791 Nonresidential Savings Electric Savings 2019 2020 2021 2022 2023 Total 24 24 24 26 26 124 There are no gas savings associated with this program. Participation Participation estimates for each measure offered in this program are provided in Application Exhibit 3 Benefit Cost (2 of 2). 83 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 3 of 7 Cost Effectiveness Anticipated total net economic benefits of the program are as follows: Residential Cost Effectiveness Program Program Benefits Program Costs Net Economic Benefits Societal Test Ratio Electric $ 10,371,924 $ 4,023,031 $ 6,348,892 2.58 $ $ $ Total 10,371,924 4,023,031 6,348,892 2.58 Nonresidential Cost Effectiveness Program Program Benefits Program Costs Net Economic Benefits Societal Test Ratio Electric $ 307,382 $ 199,995 $ 107,387 1.54 Total $ $ $ 307,382 199,995 107,387 1.54 Operations Description of Operations MidAmerican’s program contractor will determine eligibility of appliances requested for recycling, will pick up eligible appliances at customer premises for no charge, and will arrange for environmentally-responsible disposal of the appliances. To be eligible for program services and rebates, appliances must be working and, for refrigerators, must be at least 10 cubic feet in size. Environmentally-responsible disposal involves removing chlorinated fluorocarbons (CFCs) from the refrigerant (and possibly from foam insulation), preparing refrigerant for reclamation or recycling, and recycling other materials such as metal (and possibly plastic) components. The program contractor will provide turnkey services to manage and administer the program, including scheduling pickups, tracking program data, answering questions from customers, and providing customer and transaction information to MidAmerican for rebate processing and tracking. MidAmerican staff provides overall strategic direction for the program, conducts research and development, and provides promotion, evaluation, and other administrative functions. Key steps in program participation include:    Appliance pickup scheduling – The customer calls the program contractor to schedule a pickup or is transferred by MidAmerican. The customer also may submit an online form to receive a call to schedule pickup. Equipment qualification – The program contractor determines whether the equipment is eligible. Recycling process – The program contractor picks up the appliance, transports the appliance to a recycling facility, recycles applicable components, and appropriately disposes of remaining components. 84 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 4 of 7   Tracking appliances – The program contractor maintains documentation to demonstrate that the materials are recycled appropriately. Rebate processing and database maintenance – The program contractor and MidAmerican process rebates and maintain the database for tracking and reporting purposes. Description of Outside Services MidAmerican staff provides overall strategic direction for the program, conducts research and development, and provides promotion, trade ally support, evaluation, and other administrative functions. This program is delivered through a program contractor that provides turnkey services to manage and administer the program, including scheduling pickups, tracking program data, answering questions from customers, and providing customer and transaction information to MidAmerican for rebate processing and tracking. MidAmerican currently employs CLEAResult for management and administrative services. MidAmerican regularly reviews its contractor needs and contractual agreements as part of its internal program evaluation process. MidAmerican will be issuing a request for proposal in 2018 for this program. Value Proposition Customers participating in the program receive three main benefits:    Customers eliminate the difficulty and cost associated with the disposal of large, inefficient, and unwieldy appliances Customers save money through rebates and reduced energy bills Customers can trust that the materials in their old appliances have been recycled and disposed of properly Market Barriers The table on the following page presents the key market barriers to a successful appliance recycling program and the strategies the program uses to address each barrier. 85 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 5 of 7 Market Barriers and Strategies Market Barriers Lack of customer awareness Program Strategies Consumer education and outreach Program promotion/advertising Promotion through other residential programs Trade ally outreach sales training Low dealer awareness Ongoing dealer communications, outreach, and education Time required to schedule pickup Promotion of the online scheduling tool to give customers flexibility to schedule and manage their own appointment Customers feel they need Customized educational materials that highlight the cost to operate an extra refrigerator an old refrigerator or freezer Explanation of environmental benefits of eliminating inefficient appliances Incentives MidAmerican offers the following financial incentives to participants:   Free pickup and disposal – Customers receive free pickup and disposal of appliances. Rebates – A $50 incentive is paid to the customer on a per-unit-recycled basis. MidAmerican offers incentives for the current program year until approved funds are exhausted or until December 31 of each program year, whichever comes first. MidAmerican performs an annual review of rebate levels and performance criteria and may adjust rebates as market conditions change. This may include temporary reduction or suspension of incentives in order to appropriately manage program costs. Marketing Plan General Marketing Plan MidAmerican will target residential sector customers using traditional marketing channels, providing education and outreach to customers and trade allies to encourage customer participation. MidAmerican will reach out to landlord associations to increase the recycling of qualifying units in multi-family buildings. MidAmerican may participate in citywide recycling events, recycling conferences, or home shows. MidAmerican will regularly review and update customer-facing program information and marketing materials as part of its internal program evaluation process, and adjust materials as needed based on program adjustments and market characteristics. 86 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 6 of 7 Trade Ally Targets Any business that sells qualifying equipment within MidAmerican's service territory may participate in the program. The following types of trade allies are predominant:    Appliance stores Electronics stores Home improvement stores Trade allies play a key role in promoting the program. To support its trade allies and keep them informed of program opportunities and changes, MidAmerican maintains an active trade ally program. Further information regarding trade allies can be found in the Education program. Customer Targets This program targets residential electric customers who own working refrigerators and freezers, as well as customers purchasing new appliances. Nonresidential customers with residential-sized appliances are welcome to participate, including businesses and multi-family building owners. Program objectives are to prevent customers from keeping their existing units when they purchase new ones and to prevent growth in the secondary market for used, inefficient appliances in MidAmerican’s service area. MidAmerican estimates the total number of customers eligible to participate in the Appliance Recycling program is 670,000. The table below outlines customer eligibility requirements. Customer Eligibility Parameters Electric Customers Customer Class All electric rates Customer Status All Building Type Residential homes Multi-family housing (e.g., apartment buildings, condominiums, mixed-use) Commercial buildings Building Vintage All Building Size All Geography MidAmerican Iowa electric service area 87 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 7 of 7 Promotion MidAmerican will engage in a multifaceted promotional strategy, including:        Direct outreach to targeted trade allies Ongoing trade ally education about program procedures and benefits, qualifying measures, and equipment and rebate structures Attendance and program promotion at industry, community, and organizational events such as city-wide recycling events, recycling conferences, and landlord association meetings Periodic articles in MidAmerican’s monthly electronic newsletter and its quarterly newsletter sent with customer bills A dedicated webpage that includes program information, qualification requirements, and a program brochure A direct marketing campaign targeting specific nonresidential segments with industryspecific information through direct mail, phone calls, or emails to encourage participation Utilization of social media channels Program referrals are also expected from trade allies. Information will be available on a dedicated portion of MidAmerican’s energy efficiency website to assist trade allies in marketing and delivering energy efficient products and services to customers, while encouraging participation in energy efficiency programs. MidAmerican’s website offers trade allies the opportunity to order program materials, learn about program changes, and provide contact information for future communications. To keep trade allies informed and engaged with the program, MidAmerican will periodically provide program information and training via a variety of different communication modes to create overarching energy efficiency and program awareness among our customers and trade allies. MidAmerican’s Trade Ally Central website provides additional resources for trade ally engagement. 88 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 1 of 9 MidAmerican Energy Company Iowa Energy Efficiency Plan 2019-2023 Income-Qualified Multi-family Housing Program Description of Program The Income-Qualified Multi-Family Housing program provides services and incentives to serve the specific needs of multi-family housing building owners and property managers to help improve the overall energy efficiency of their buildings and reduce their operating costs. MidAmerican targets existing income-qualified multi-family housing, institutional housing, and emergency shelters. This offering provides comprehensive on-site energy assessments to identify areas of high energy use, free direct installation measures, and incentives for measures identified during the assessment. Participants are subject to prequalification. For eligibility, a multi-family property must be housing developed under Section 8 of the U.S. Housing Act of 1937 or Low-Income Housing Tax Credit Property under the Tax Reform Act of 1986. An on-site assessment is available to owners of multifamily buildings that contain four or more units that receive electricity and/or natural gas supplied from MidAmerican. To qualify for the Income-Qualified Multi-Family Housing program, the existing structure must be at least ten years old. Participants in the program may be served on residential rates, nonresidential rates or a combination of both. Generally, participants are property management companies or multi-family housing property owners. MidAmerican’s Commercial New Construction program provides services and incentives based on the energy savings strategies chosen for renovation of existing buildings converted to apartments, as well as construction of new multi-family housing facilities containing three units or more. Transportation gas customers with daily metering are ineligible for program gas measures. However, customers with monthly metering under the Monthly Metered Transportation Service gas tariff are eligible for energy efficiency incentives. Measure List The Income-Qualified Multi-Family Housing program provides rebates and incentives for the following measures: Direct install measures:   Air sealing – (co-pay may be required) Attic insulation – (co-pay may be required)   Linear LEDs for 24 hour common area lighting LED lamps    Faucet aerators Low-flow showerheads Programmable thermostats 89 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 2 of 9 Participants are eligible for enhanced custom rebates. Typical measures include:   Heating and cooling equipment Common area lighting Property owners and tenants who choose to participate in the online home assessment available to single family and multi-family residential properties will have the option to receive an energy efficiency kit. MidAmerican performs an annual review of qualifying measures and may adjust measures and eligibility requirements in the future as market conditions and equipment standards change. Budgets Anticipated five-year spending for the Income-Qualified Multi-Family Housing program is as follows: Electric Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 162,441 $ 162,441 $ 165,690 $ 169,003 $ 172,187 $ 831,762 Incentive Cost $ 544,356 $ 545,544 $ 547,365 $ 589,761 $ 597,357 $ 2,824,383 Total Cost $ 706,797 $ 707,985 $ 713,055 $ 758,764 $ 769,544 $ 3,656,145 Gas Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 36,507 $ 36,507 $ 37,237 $ 38,741 $ 41,066 $ 190,057 Incentive Cost $ 802,988 $ 875,820 $ 929,547 $ 973,809 $ 1,022,799 $ 4,604,962 Total Cost $ 839,494 $ 912,326 $ 966,784 $ 1,012,550 $ 1,063,864 $ 4,795,019 Total Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 198,947 $ 198,947 $ 202,926 $ 207,745 $ 213,253 $ 1,021,819 Incentive Cost $ 1,347,344 $ 1,421,364 $ 1,476,912 $ 1,563,570 $ 1,620,156 $ 7,429,345 Total Cost $ 1,546,291 $ 1,620,311 $ 1,679,838 $ 1,771,314 $ 1,833,408 $ 8,451,164 Detailed budgets by spending category and staffing assumptions in FTEs for this program are provided in Application Exhibit 4 Budget/Accounting for Costs. 90 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 3 of 9 Energy Savings Anticipated savings levels for the Income-Qualified Multi-Family Housing program are as follows: Electric Savings 2019 2020 2021 2022 2023 Total Gas Savings 2019 2020 2021 2022 2023 Total Annual kWh 2,500,100 2,510,600 2,521,100 2,763,078 2,786,528 13,081,405 Annual Therms 225,200 239,700 253,750 266,100 279,200 1,263,950 Peak kW 546 550 553 604 611 2,865 Peak Therms 3,469 3,682 3,864 4,041 4,228 19,285 Participation Participation estimates for each measure offered in this program are provided in Application Exhibit 3 Benefit Cost (2 of 2). Cost Effectiveness Anticipated total net economic benefits of the program are as follows: Program Program Benefits Program Costs Net Economic Benefits Societal Test Cost Ratio Electric $ 16,304,882 $ 4,264,077 $ 12,040,805 3.82 $ $ $ Gas 15,760,146 6,741,839 9,018,306 2.34 $ $ $ Total 32,065,028 11,005,916 21,059,112 2.91 Operations Description of Operations MidAmerican provides a comprehensive program designed to reach income-qualified multi-family housing building owners and managers. 91 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 4 of 9 Income-Qualified Multi-Family The Income-Qualified Multi-Family Housing program is available to existing income-qualified multifamily housing, institutional housing, and emergency shelters. Energy assessments are performed by a program contractor with expertise in building envelope, common area energy-using equipment, and energy use within the apartments units themselves. Recommendations and energy efficiency program information are provided to assist property owners in completing projects and obtaining available incentives. To be eligible, a multi-family property must be housing developed under Section 8 of the U.S. Housing Act of 1937 or Low-Income Housing Tax Credit Property under the Tax Reform Act of 1986. Key steps in program participation include:        Scheduling/Screening – The customer calls the program contractor to schedule an assessment or is transferred by MidAmerican. The program contractor screens the caller to determine the number of units or buildings in a complex: type of building (e.g., apartments, condominiums, mixed-use); income qualifications; central or individual heating and cooling systems; any specialized commercial equipment; and residential or commercial utility meter(s). On-site energy assessment completion – The program contractor: performs an energy assessment walkthrough to visually inspect energy-using equipment; informs building owners of ways to operate building energy systems more efficiently; evaluates eligibility for financial incentives; and provides contact information and information regarding how to participate in MidAmerican’s other energy efficiency programs. Energy assessment report – The program contractor provides an assessment report, which recommends energy efficiency measures, such as improvements to the building shell, central heating and cooling equipment, and lighting, in common areas and in tenantoccupied space. Air infiltration and direct-install measures – The program contractor installs energy saving measures within common areas and individual apartment units. In addition, the program contractor identifies if the building is a proper candidate for air sealing and/or attic insulation measures. If the building qualifies, the property owner/manager is notified and the installation is scheduled. Implementation support – The program contractor provides continuous energy advising services to help convert energy efficiency recommendations into completed projects. Project preapproval and/or prenotification will apply to the projects in the same manner as the process outlined in the Nonresidential Equipment program. Verification – The program contractor may conduct verification activities on existing equipment prior to installation or post-installation prior to payment. Rebate processing and database maintenance – When a customer completes a project as a result of their assessment, they submit a completion form for review and processing. The program contractor and MidAmerican process rebates and maintain the database for tracking and reporting purposes. 92 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 5 of 9 Description of Outside Services MidAmerican staff provides overall strategic direction for the program, conducts research and development, and provides promotion, trade ally support, evaluation, and other administrative functions. MidAmerican currently uses two program contractors to help deliver the Income-Qualified MultiFamily Housing program. One contractor handles program enrollment and data tracking. The contractors work directly with customers to conduct the on-site energy assessments. The other contractor handles associated rebate processing for recommended measures that are installed following an assessment. MidAmerican currently employs The Energy Group and A-TEC Energy Corporation for administrative and evaluation services. MidAmerican regularly reviews its contractor needs and contractual agreements as part of its internal program evaluation process. MidAmerican will issue a request for proposal in 2018 for this program. Value Proposition Building owners participating in the program receive the following main benefits:     Building owners receive reliable energy-savings recommendations from trained energy assessors. Building owners save money in the short term through rebates and in the long term through lower utility bills. End-use customers (tenants) save energy instantly as a result of the direct install measures. Building owners generally have a higher occupancy rate due lower monthly energy bills. Apartments with low monthly energy costs are viewed favorably by prospective tenants. Existing tenants are more likely to stay in units with low energy costs. Market Barriers The table on the following page presents the key market barriers to a successful Income-Qualified Multi-Family Program and strategies to address each barrier. Note these program strategies can only partially offset these barriers. 93 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 6 of 9 Market Barriers and Strategies Market Barriers High incremental cost of efficient equipment Program Strategies Offer rebates at levels to help offset costs Educate building owners regarding the benefits of higher-efficiency equipment Conduct targeted trade ally outreach and training Limited time and information to consider Engage in ongoing trade ally communications and education efficiency in emergency replacement Implement efficient program requirements Lack of building owner and trade ally awareness Educate building owners through program promotion/advertising Use traditional and nontraditional marketing approaches Engage in ongoing trade ally outreach and training Provide financial incentives for energy efficiency upgrades Provide free energy assessments Split incentive (i.e., rental property owners own the building, but the tenants Educate landlords about increasing property values pay the utility bills) and greater demand for units resulting from energy upgrades Focus on individual units and common areas Target new purchases and equipment replacement Energy is a small part of overall operating markets costs Target marketing materials and education efforts Building owners often choose to use their limited resources to make capital improvements to items seen by their tenants (e.g., paint, floor coverings, decorations) Educate the building owner on the importance of energy-related capital improvements such as heating and cooling improvements and efficient lighting products Incentives MidAmerican offers the following incentives to participants:    No-cost energy assessments – No-cost energy assessments are offered to help participants identify how they use energy and what actions can be taken to reduce energy use. Low-cost energy efficiency measures – MidAmerican’s program contractor installs lowcost energy efficiency measures during the assessment, at no cost to the customer. Technical assistance – Technical assistance is provided at no cost to participants. Assistance may include expert information regarding building shell and central heating/cooling plant-specific equipment, recommendations regarding energy-saving 94 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 7 of 9  actions, estimates of energy-saving potential, and general cost estimates for recommended actions. Equipment incentives – Rebates are offered to help offset the cost to purchase and install energy efficient equipment. Income-qualified multi-family participants are eligible for enhanced rebates based on the cost effectiveness of measures identified during the on-site assessment. For purposes of evaluating equipment rebate levels, MidAmerican defines cost effective measures as those having a customer payback that is shorter than the expected lifetime of the measure. For cost effective measures, the incentive paid is 40% of the total installed cost. If the measure does not meet this definition of cost effectiveness, MidAmerican provides an incentive of five times the annual energy bill savings. MidAmerican offers incentives for the current program year until approved funds are exhausted or until December 31 of each program year, whichever comes first. MidAmerican performs an annual review of rebate levels and performance criteria and may adjust rebates as market conditions change. This may include temporary reduction or suspension of incentives in order to appropriately manage program costs. Marketing Plan General Marketing Plan To encourage building owner participation and implementation of energy efficient equipment, MidAmerican will target multi-family building owners using traditional and non-traditional marketing channels and provide education and outreach to customers, trade allies, and industry organizations. MidAmerican will focus on landlord associations by attending their trade shows, educational seminars, and lunch and learn meetings to make them aware of the program offerings. Building owners have direct access to MidAmerican staff and/or their implementation contractors to answer questions. MidAmerican will regularly review and update customer-facing program information and marketing materials as part of its internal program evaluation process, and adjust materials as needed based on program changes and market characteristics. Trade Ally Targets Any business that sells or installs qualifying equipment to MidAmerican's customers within MidAmerican’s service area may participate in the program. The following types of trade allies are predominant:  Heating, ventilating, and cooling contractors    Lighting contractors Large multi-family property owners Property management companies Trade allies play a key role in implementing the program. To support its trade allies and keep them informed of program opportunities and changes, MidAmerican maintains an active trade ally program. Further information regarding trade allies is found in the Education program section. 95 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 8 of 9 Customer Targets This program targets income-qualified multi-family housing building owners of four or more tenant-occupied residential units. Buildings with three or fewer residential living units are directed to MidAmerican’s online home energy assessment in its Residential Assessment program. MidAmerican estimates the total number of buildings eligible to participate in the Income-Qualified Multi-Family Housing program is 116,000. Customer eligibility requirements are outlined in the table below. Customer Eligibility Parameters Electric Equipment Natural Gas Equipment Customer Class Residential or nonresidential electric rate or a combination Residential or nonresidential natural gas rate schedules Gas transportation tariff rate customers with daily metering are ineligible Customer Status Building owners; property managers; tenants Building owners; property managers; tenants Business Type Income-qualified multi-family housing (e.g., apartment buildings, condominiums, mixed-use), institutional housing, emergency shelters Income-qualified multi-family housing (e.g., apartment buildings, condominiums, mixed-use), institutional housing, emergency shelters Geography MidAmerican Iowa electric service territory MidAmerican Iowa natural gas service territory Size Four or more residential living units Four or more residential living units Promotion MidAmerican will engage in a multifaceted promotional strategy, including:      A dedicated brochure that outlines the program’s features, benefits, eligibility requirements, and financial incentives Outreach and educational opportunities for trade allies, multi-family housing associations, and support organizations Attendance, material distribution, and presentations at multi-family housing events, trade shows, and educational events across the state Periodic articles in MidAmerican’s monthly electronic newsletter A dedicated webpage that includes program information and qualification requirements and a program brochure 96 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 9 of 9   A direct marketing campaign by multi-family housing specific segments with industryspecific information through direct mail, phone calls or emails to encourage participation. This includes face to face meetings with owners of large multi-family housing properties to promote the program. Utilization of social media channels. Program referrals also are received from trade allies. Information is available on a dedicated portion of MidAmerican’s energy efficiency website to assist trade allies in marketing and delivering energy efficient products and services to customers, while encouraging participation in energy efficiency programs. The website offers trade allies the opportunity to order program materials, learn about program changes, and provide contact information for future communications. To keep trade allies informed and engaged with the program, MidAmerican periodically provides program information and training through a variety of different communication modes to create energy efficiency and program awareness among its customers and trade allies. MidAmerican’s Trade Ally Central website provides additional resources for trade ally engagement. 97 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 1 of 8 MidAmerican Energy Company Iowa Energy Efficiency Plan 2019-2023 Education Program Description of Program The Education program promotes energy efficiency education through activities organized into three general areas: school curricula, awareness, and trade ally support. School Curricula MidAmerican works with schools to integrate energy efficiency education into curriculum and extracurricular activities. In this Plan, MidAmerican will continue to offer a curriculum to elementary and middle school educators, students, and students’ families throughout its service area by:   Offering interactive website tools Offering energy efficiency curriculum materials Awareness MidAmerican engages in a number of activities to increase energy efficiency awareness in general and in the Company’s programs in particular. Current offerings in this area include:       MidAmerican’s energy efficiency website Customer communication through social media, email, and newsletters Educational materials promoting energy efficiency benefits and programs Outreach at events such as the Iowa State Fair, community events, home and trade shows Customer support through MidAmerican’s account managers and its call center MidAmerican’s trade ally outreach program, described below In this Plan, MidAmerican will continue its awareness offerings by:   Updating energy efficiency information on the Company’s website Sponsoring presentations and demonstrations to employees of key account customers and in town hall meetings, community group presentations, and other venues   Participating in local energy education events Leveraging educational opportunities available through MidAmerican's existing energy efficiency programs Identifying opportunities to cross-promote programs  98 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 2 of 8 Trade Ally Support MidAmerican engages in a number of activities to fully inform trade allies of program changes, encourage trade allies to promote MidAmerican’s energy efficiency programs, and recognize outstanding trade ally performance. MidAmerican currently offers a wide range of support services to its trade allies, including a Trade Ally Network website, dedicated support staff, formal and informal training, personal communication through in-person meetings, focus groups, phone calls, email, newsletters, and advertising support. In this Plan, MidAmerican will continue its trade ally support offerings by:    Allocating dedicated resources for trade ally training, communication, and education Enhancing awareness of customer and trade ally tools that connect MidAmerican’s customers to trade allies to help with completing energy efficiency projects Keeping trade allies informed about MidAmerican’s program activities and encouraging participation Measure List  There are no measures that receive rebates or incentives in this program. Budgets Anticipated five-year spending for the Education program is as follows: Residential Budgets Electric Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 180,000 $ 180,000 $ 180,000 $ 180,000 $ 180,000 $ 900,000 Incentive Cost $ $ $ $ $ $ - Total Cost $ 180,000 $ 180,000 $ 180,000 $ 180,000 $ 180,000 $ 900,000 Gas Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 280,000 $ 280,000 $ 280,000 $ 280,000 $ 280,000 $ 1,400,000 Incentive Cost $ $ $ $ $ $ - Total Cost $ 280,000 $ 280,000 $ 280,000 $ 280,000 $ 280,000 $ 1,400,000 99 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 3 of 8 Total Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 460,000 $ 460,000 $ 460,000 $ 460,000 $ 460,000 $ 2,300,000 Incentive Cost $ $ $ $ $ $ - Total Cost $ 460,000 $ 460,000 $ 460,000 $ 460,000 $ 460,000 $ 2,300,000 Electric Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 420,000 $ 420,000 $ 420,000 $ 420,000 $ 420,000 $ 2,100,000 Incentive Cost $ $ $ $ $ $ - Total Cost $ 420,000 $ 420,000 $ 420,000 $ 420,000 $ 420,000 $ 2,100,000 Gas Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 120,000 $ 120,000 $ 120,000 $ 120,000 $ 120,000 $ 600,000 Incentive Cost $ $ $ $ $ $ - Total Cost $ 120,000 $ 120,000 $ 120,000 $ 120,000 $ 120,000 $ 600,000 Total Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 540,000 $ 540,000 $ 540,000 $ 540,000 $ 540,000 $ 2,700,000 Incentive Cost $ $ $ $ $ $ - Total Cost $ 540,000 $ 540,000 $ 540,000 $ 540,000 $ 540,000 $ 2,700,000 Nonresidential Budgets Detailed budgets by spending category and staffing assumptions in FTEs for this program are provided in Application Exhibit 4 Budget/Accounting for Costs. Energy Savings There are no gas or electric savings associated with this program. Cost Effectiveness Anticipated total net economic benefits of the program are as follows: 100 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 4 of 8 Residential Cost Effectiveness Program Program Benefits Program Costs Net Economic Benefits Societal Test Ratio Electric $ $ 862,078 $ (862,078) - Gas $ $ 1,341,010 $ (1,341,010) - Total $ $ 2,203,087 $ (2,203,087) - Nonresidential Cost Effectiveness Program Program Benefits Program Costs Net Economic Benefits Societal Test Ratio Electric $ $ 2,011,514 $ (2,011,514) - Gas $ $ $ 574,718 (574,718) - Total $ $ $ 2,586,233 (2,586,233) - Operations Description of Operations Each component employs a slightly different implementation strategy, as follows: School Curricula MidAmerican provides curricula and other activities for use by schools. Key steps in program operations include:    Identify curriculum – Identifying curriculum and other educational activities appropriate to MidAmerican’s service territory Develop strategies – Developing and implementing marketing and communications strategies appropriate to each activity Educator outreach – Contacting teachers and administration officials to make them aware of the offerings   Curricula fulfillment – Fulfilling orders for materials from schools Assembly fulfillment – Delivering activities through schools in MidAmerican’s service area  Evaluate programs – Evaluating the effectiveness of each activity Awareness MidAmerican provides a number of activities to increase energy efficiency awareness among customers and trade allies. Awareness and outreach can include a broad range of activities, including social media, educational materials, and customer support. Program operation steps may vary by program. Key steps in program operations can include:   Planning – Planning for awareness activities such as participation in events, social media campaigns, presentations, and other activities Coordinating – Coordinating activities with partners and contractors 101 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 5 of 8     Developing materials – Developing materials such as media publications, brochures, and other materials Implementing strategies – Developing and implementing marketing strategies appropriate to each activity Evaluating activities – Evaluating the effectiveness of each activity System upgrades – Enhancing customer and trade ally communications on rebate processing and notification Trade Ally Support MidAmerican provides a number of activities to support trade allies. Key steps in area program operations vary by activity, but generally include:     Managing communications channels – Coordinate and attend meetings, events, and other activities Trade ally outreach – Outreach to and communication with trade allies Coordinate activities – Coordinate activities with partners and contractors Evaluate activities – Evaluation of the effectiveness of each activity Description of Outside Services MidAmerican staff provides overall strategic direction for the Education program, conducts research and development, and provides promotion, trade ally support, evaluation, and other administrative functions. The Education program is delivered through the assistance of a program contractor(s). MidAmerican currently contracts with Flynn Wright for advertising and awareness services, Nexant for Trade Ally support, and Culver Company, LLC for school curricula development services. MidAmerican regularly reviews its contractor needs and contractual agreements as part of its internal program evaluation process. MidAmerican will issue a request for proposal in 2018 for this program. Value Proposition Customers participating in the Education program receive these benefits:     Participants expand energy efficiency knowledge through job- and interest-related trainings, increasing employment skills, and promoting economic development. Participants invest in future generations by promoting energy efficiency education in schools and increasing opportunities for children to live in a clean and healthy environment. Participants receive energy savings and quality services by incorporating energy-saving behaviors into their everyday lives and by using the education programs as a stepping stone toward MidAmerican’s other energy efficiency programs. Customers receive information to help them choose a qualified contractor to help improve energy efficiency in their homes and businesses. 102 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 6 of 8 Market Barriers The table below presents the key market barriers to a successful education program and strategies to address each barrier. Note program strategies can only partially offset the identified barriers. Market Barriers and Strategies Market Barriers Program Strategies Lack of customer awareness of educational opportunities Outreach through traditional and nontraditional mechanisms Cross promote programs when possible Lack of time and resources to participate Provide full subsidies for educational opportunities Provide flexible scheduling Streamline programs to ensure efficient use of participants’ time Lack of profitability for education providers attempting to develop programs for local market Leverage programs and curricula created by national organizations Perceived lack of value from the Trade Ally Network Educate trade allies on the value and benefits of participating in the Trade Ally Network Incentives The incentive strategy is to overcome the financial barriers facing customers and trade allies using the following types of incentives:  Full subsidies – MidAmerican will continue to offer school curricula, awareness, and trade ally support programs free of charge. For these activities, MidAmerican covers the full cost to program contractors for the coordination, promotion, development, and implementation of educational events. MidAmerican will continue to offer Trade Ally Ambassadors as a main point of contact for trade allies, a Trade Ally Portal, and a trade ally search tool for customers. Marketing Plan General Marketing Plan MidAmerican’s education program will be available to all customers and trade allies throughout the Company’s Iowa service area. MidAmerican follows a comprehensive marketing plan that includes traditional and nontraditional marketing strategies for its entire portfolio, as well as for individual energy efficiency programs. The general marketing strategies for each program component include: School Curricula Email and a direct mail communication is sent to educators, providing information and instruction on how educators can request materials to be sent directly to them. Additionally, an interactive 103 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 7 of 8 website is available to educators, students, and their families offering further engagement, interactive online games, experiments, and other energy efficiency activities. Awareness Educational materials, social media messaging, press releases, customer newsletters, and a dedicated energy efficiency website allow all customers to access energy efficiency tips, programs, and applications. Program presentations at community centers, business fairs, and educational sessions with MidAmerican’s employees will also continue to highlight all energy efficiency programs. Trade Ally Support MidAmerican’s entire Trade Ally Network helps to deliver MidAmerican’s program awareness activities. To support its trade allies and inform them of program opportunities and changes, MidAmerican will maintain an active trade ally outreach program. This includes ongoing communication, online tools and resources, marketing support, and trade ally recognition. Trade Ally Targets School Curricula Curricula targets educators in grades K-6, principals, curriculum coordinators, educators, and students. Awareness MidAmerican’s awareness activities are targeted to all customers and trade allies, which includes energy professionals, interested homeowners, and businesses. Additionally, groups such as the Midwest Energy Efficiency Alliance help to coordinate activities among Iowa’s utilities. Trade Ally Support Trade ally support and outreach targets dealers, installers, contractors, suppliers, and design professionals that help our mutual customers upgrade to higher efficiency equipment. Customer Targets Customer targets include all residential and nonresidential customers. MidAmerican estimates the total number of customers eligible to participate in the Education program is 840,000. 104 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 8 of 8 Customer eligibility requirements are outlined below. Customer Eligibility Parameters Electric Customers Natural Gas Customers Customer Class All residential and nonresidential electric rate schedules All residential and nonresidential natural gas rate schedules Customer Status No restrictions No restrictions Business Type No restrictions No restrictions Geography MidAmerican Iowa electric territory MidAmerican Iowa natural gas territory Size No customer size limitations No customer size limitations Promotion MidAmerican will engage in a multifaceted promotional strategy, including:              Direct outreach through account managers and a network of trade allies Direct outreach to specific customer types/classes for specific campaigns Direct outreach to targeted trade allies with Trade Ally Ambassadors Ongoing trade ally education about program procedures and benefits, qualifying measures, and equipment and rebate structures Program promotion at industry, community, and organization/association events Periodic articles in MidAmerican’s electronic newsletters and its quarterly newsletter included with customer bills Utilization of social media channels Dedicated online content that includes program information and qualification requirements Customer and trade allies program materials, fact sheets, and general low- and no-cost tips A search tool for customers and trade allies Educational or program specific bill inserts and bill messaging Energy efficiency educational materials for school curriculum Recognition for trade allies that heavily participate in MidAmerican’s energy efficiency programs 105 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 1 of 5 MidAmerican Energy Company Iowa Energy Efficiency Plan 2019-2023 Trees Program Description of Program The Trees program promotes tree planting through the Trees Please! offering. The program provides annual grants for community tree planting projects. Any municipality in MidAmerican’s service area may submit a grant request annually for tree planting projects in common areas such as publically-owned properties and city-owned rights of way. Communities may receive enhanced grants through the program to recover from a natural disaster. Communities are given information on the benefits of planting trees in an energy efficient landscape and they are directed to the website to learn more about other MidAmerican energy efficiency programs available in Iowa. Measure List The Trees program provides grants for the following measure:  Trees Please! MidAmerican performs an annual review of qualifying measures and may adjust measures and eligibility requirements in the future as market conditions change. Budgets Anticipated five-year spending for the Trees program is as follows: Electric Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 105,000 $ 105,000 $ 105,000 $ 105,000 $ 105,000 $ 525,000 Incentive Cost $ $ $ $ $ $ - Total Cost $ 105,000 $ 105,000 $ 105,000 $ 105,000 $ 105,000 $ 525,000 Gas Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 45,000 $ 45,000 $ 45,000 $ 45,000 $ 45,000 $ 225,000 Incentive Cost $ $ $ $ $ $ - Total Cost $ 45,000 $ 45,000 $ 45,000 $ 45,000 $ 45,000 $ 225,000 106 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 2 of 5 Total Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 750,000 Incentive Cost $ $ $ $ $ $ - Total Cost $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 750,000 Detailed budgets by spending category and staffing assumptions in FTEs for this program are provided in Application Exhibit 4 Budget/Accounting for Costs. Energy Savings There are no gas or electric savings associated with this program. Cost Effectiveness Pursuant to 199 IAC 35.8(2)“a”, tree planting programs shall not be tested for cost-effectiveness, unless the utility wishes to present the results of cost-effectiveness tests for informational purposes. At this time, MidAmerican has not tested its tree planting programs for cost-effectiveness and does not have any results to present for informational purposes. Operations Description of Operations The program processes are detailed below. This program is delivered and implemented directly by MidAmerican staff. Key steps in this offering include:       Grant requests – Grant information is distributed to city administrators and community leaders each fall, including educational materials, detailed instructions on program operation and participation, and a grant application. Cross promotion – Communities are directed to MidAmerican’s energy efficiency website to learn more about MidAmerican’s energy efficiency programs. Grant application review and processing – Grant applications are reviewed and approved for projects in community spaces, schools or other public property. Check delivery – Checks are delivered to recipients. Recipient reporting – Recipients submit a report to MidAmerican detailing project progress and plans for completion. Recipients must complete the project and submit a final report in order to be eligible for future grant funding. Support – A dedicated trees phone number and email address is available for customers to contact MidAmerican staff directly with specific questions related to the Tree program. 107 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 3 of 5 Description of Outside Services MidAmerican staff provides overall strategic direction for the program, conducts research and development, and provides promotion, trade ally support, evaluation, and other administrative functions. Value Proposition Customers participating in the program receive benefits in the form of: Financial benefits:     Grants to help provide windbreaks and energy efficiency benefits to community spaces, schools or other public property Increased property values resulting from energy efficiency benefits achieved by planting trees into an energy efficient landscape design Education on how to plant trees to create a more energy efficient landscape Awareness to participate in other MidAmerican energy efficiency programs to save money and energy in their homes and communities Environmental benefits:  Planting trees improves air quality, provides a windbreak, offers shade to reduce summer cooling energy use, absorbs carbon dioxide, and helps to protect and replenish the soil. Market Barriers The table below presents the key market barriers to an effective tree planting program and strategies the program uses to address each barrier. Note these program strategies can only partially offset the barriers. Market Barriers and Strategies Market Barriers Lack of customer awareness of program Program Strategies Identify municipalities that do not participate in Trees program and send program information Lack of customer awareness of Provide information on proper tree planting and care proper tree selection and planting practices Lack of customer awareness of program purpose to plant trees for energy efficiency benefits Improve communication and awareness for energy efficiency benefits on grant applications 108 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 4 of 5 Incentives MidAmerican offers the following financial incentive to participants:  Grants – The financial incentive for this offering is a $1,000 - $5,000 grant distributed to municipalities. Municipalities applying for grant funds must provide 50% cost-sharing, either in cash or through in-kind services. MidAmerican offers incentives for the current program year until approved funds are exhausted or until December 31 of each program year, whichever comes first. MidAmerican performs an annual review of rebate levels and performance criteria and may adjust rebates as market conditions change. This may include temporary reduction or suspension of incentives in order to appropriately manage program costs. Marketing Plan General Marketing Plan The Trees program is promoted through annual direct mail or e-mail to community leaders that includes program information and grant application packages for Trees Please! MidAmerican’s website provides contact information for program information and general tree planting education. Customer Targets The Trees program targets all of the communities in MidAmerican’s Iowa service area. Stand-alone community organizations are no longer eligible to participate. The table below outlines customer eligibility requirements. Customer Eligibility Parameters Electric Customers Natural Gas Customers Customer Class Governmental (stand-alone community organizations no longer eligible) Governmental (stand-alone community organizations no longer eligible) Customer Status Public-owned properties Public-owned properties Building Type N/A N/A Building Vintage N/A N/A Geography MidAmerican Iowa service area MidAmerican Iowa service area Building Size N/A N/A 109 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 5 of 5 Promotion MidAmerican will engage in a multifaceted promotional strategy, including:     Press releases Utilization of social media channels Periodic articles in MidAmerican’s electronic newsletters and its quarterly newsletter sent with customer bills A dedicated webpage that includes program information and qualification requirements This program also helps cross-promote MidAmerican’s programs by directing customers to the energy efficiency website and by offering brochures, flyers, and tips on how to save energy and money for their home and in their community. 110 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 1 of 2 MidAmerican Energy Company Iowa Energy Efficiency Plan 2019-2023 Assessments Description of Program Assessments include the money MidAmerican collects from customers to fund the Iowa Energy Center, the Center for Global and Regional Environmental Research, and to pay the Iowa Utilities Board for direct assessments related to regulation of energy efficiency issues. Pursuant to Iowa Code § 476.10A, all gas and electric utilities are required to remit one-tenth of 1% of the total gross operating revenues derived from intrastate public utility operations to the State Treasurer of Iowa. Of the amounts collected, 85% is appropriated to the Iowa Energy Center and 15% is appropriated to the Center for Global and Regional Environmental Research. These amounts are in addition to amounts permitted to be assessed pursuant to Iowa Code § 476.10. Funding for both the Iowa Energy Center and the Center for Global and Regional Environmental Research ends on July 1, 2022. These assessments are allocated between residential and nonresidential customer classes as follows:   Electric assessments:  45% residential  54% nonresidential  1% lighting Natural gas assessments:   60% residential 40% nonresidential Measure List There are no measures for this program. Budgets Anticipated five-year spending for the Assessments program is as follows: Electric Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 1,500,000 $ 1,500,000 $ 1,500,000 $ $ $ 4,500,000 111 Incentive Cost $ $ $ $ $ $ - Total Cost $ 1,500,000 $ 1,500,000 $ 1,500,000 $ $ $ 4,500,000 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 2 of 2 Gas Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 500,000 $ 500,000 $ 500,000 $ $ $ 1,500,000 Incentive Cost $ $ $ $ $ $ - Total Cost $ 500,000 $ 500,000 $ 500,000 $ $ $ 1,500,000 Total Spending 2019 2020 2021 2022 2023 Total Administrative Cost $ 2,000,000 $ 2,000,000 $ 2,000,000 $ $ $ 6,000,000 Incentive Cost $ $ $ $ $ $ - Total Cost $ 2,000,000 $ 2,000,000 $ 2,000,000 $ $ $ 6,000,000 Energy Savings There are no gas or electric savings associated with this program. Participation Not applicable. Cost Effectiveness Anticipated total net economic benefits of the program are as follows: Program Program Benefits Program Costs Net Economic Benefits Societal Test Ratio Electric $ $ $ - 112 Gas $ $ $ - Total $ $ $ - Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 1 of 5 MidAmerican Energy Company Iowa Energy Efficiency Plan 2019-2023 Support Functions Monitoring and Verification Plan – Portfolio Review MidAmerican will contract with an independent third-party energy efficiency program evaluator to conduct analyses of MidAmerican’s energy efficiency portfolio across all states it serves. MidAmerican will review with the Iowa Office of Consumer Advocate and other interested Iowa stakeholders any requests for proposals to be issued to obtain the services of the third-party evaluator and will consult with these groups on the selection of the third-party evaluator. A full analysis of each program will be conducted once during the 2019-2023 energy efficiency plan. The analyses will consist of a process review and an impact review of each of MidAmerican’s energy efficiency programs. Process Review The primary goals of the process reviews will be to provide actionable recommendations to MidAmerican to improve the design and implementation of its energy efficiency programs and to develop a best-in-class evaluation infrastructure. Process evaluations will be systematic and transparent. Program evaluations will begin with documentation of current program design and results including successes and challenges. It is anticipated that researchable issues will emerge that will encompass:           Program performance and operations Quality of installations Process time for incentives Effectiveness of program marketing Collateral and outreach methods How program marketing and implementation processes can be revised to optimize costeffectiveness Performance of newly selected implementation contractors Satisfaction of participants and other market actors Barriers to participation and/or more effective implementation Means for overcoming those barriers, and  Effectiveness of the program delivery mechanism. It is anticipated that the process of making recommendations related to researchable issues will involve interviews with program staff, customers, and market actors. Additionally, the third-party process review will include an evaluation of areas that affect all energy efficiency programs (information technology, marketing, and organizational issues). Included in the cross-cutting evaluation will be interviews with trade and customer relations teams, energy efficiency advertising and promotion teams, and the regulatory group. 113 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 2 of 5 Impact Review The primary goals of the impact reviews will be to verify and document reported energy and demand savings associated with the programs and to provide additional due diligence to project savings in addition to what is being provided by implementation contractors. Impact evaluations will be systematic and transparent. The goals of the impact reviews will be to verify gross ex-ante savings and to estimate net savings. Verification of Gross Savings Verification of gross savings will involve verification that measures are installed and operating as anticipated and a review of the savings algorithms and deemed values used by MidAmerican in determining ex-ante savings. This review will include an estimation of the reasonableness of these calculations relative to calculations used in other programs, a review of inputs (including costs and savings) used in the calculations and verification that these inputs are properly recorded in MidAmerican’s tracking systems, and an independent confirmation of savings estimates using simulation modeling. In addition, the impact verification may include a shelf survey to retailers to determine available measure stock and exit interviews with customers of retailers including information about purchases made, choices considered, and factors determining choice. In the case of custom projects, the review should include:          Review of project description, documentation, and specifications Review of invoices and dates of completion. In many cases, invoices provide the source of the specification via equipment identification, descriptions, and model numbers Review of engineering analyses for technical soundness, appropriate baselines, and appropriateness for the specific application Review of methods for determining demand savings to ensure they are consistent with program and/or utility methods for determining peak load/savings Review of input data for appropriate baseline specifications and variables such as weather data, burn hours, total annual hours, and consistency with facility operation. Review of project cost and baseline appropriateness. For example, should incremental costs and incremental savings versus a competing alternative be used or should the total cost of the measure and savings versus the actual old equipment be evaluated? Phone interview with the customer to verify the measure has been implemented, hours of use, duty cycle, and equipment make and model. Phone interview of the contractor or design professional responsible for the implementation to gather additional project specifics and operating characteristics as needed. Determination that the measure complies with program rules and is eligible based on payback limits, fuel switching issues, supply side technologies, and minimum equipment performance requirements. 114 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 3 of 5 The results of these analyses will yield realization rates by program and measure within each program that can be used to estimate gross ex-post savings both proactively and on a forwardlooking basis Internal Verification of Projects MidAmerican will conduct verification activities to ensure that measures have been installed across the energy efficiency portfolio. MidAmerican inspects all projects that:   Are self-installed equipment (e.g., insulation) Have rebates above $20,000 For other programs/measures, MidAmerican will select a random sample of program participants for verification. Contractors that are new to programs or have had failed past verifications will receive an oversample of verification visits and these will gradually be reduced (although not eliminated completely) with high compliance rates. During the site visits, MidAmerican’s program contractors verify that the equipment is installed, operating, and matches measure characteristics tracked in MidAmerican’s Energy Efficiency Management Information System. Timeline In 2019, MidAmerican will prepare draft evaluation, measurement, and verification (EM&V) plans for each program in its Plan. The impact evaluation methods will conform to the protocols developed under the United States Department of Energy’s Uniform Methods Project. MidAmerican will seek input for the draft EM&V plans and any Request for Proposal from the Office of Consumer Advocate and other Iowa stakeholders. MidAmerican will provide informational updates throughout the implementation of evaluation plans, contractor selection, scope of work, and results. MidAmerican will consult with stakeholders prior to taking a remedial action such as EM&V contractor dismissal. The proposed timeline for evaluation activities is summarized below: Activities Start Date Draft Plan 6/1/2019 Draft Request for Proposal 6/1/2019 Obtain Input from Stakeholders 7/15/2019 Finalize Plan and Request for Proposal 8/15/2019 Issue Request for Proposal 9/1/2019 Contractor Selection 12/1/2019 Program Evaluations 1/1/2020 Issue Final Report and Recommendations End Date 7/15/2019 7/15/2019 8/15/2019 9/1/2019 -------12/31/2019 6/30/2021 12/31/2021 MidAmerican will file all final EM&V reports with the Board once generated. 115 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 4 of 5 Statewide Technical Reference Manual MidAmerican will continue to support the maintenance and revision of the Iowa Technical Reference Manual (TRM) and support the TRM working group. The TRM is a document that contains a set of savings and incremental cost algorithms, information needed to determine gross energy savings, and non-energy benefits associated with the offering of various energy efficiency measures and programs. The TRM is used by all investor-owned utilities (IOUs) offering energy efficiency programs in Iowa. Objectives The TRM is intended to achieve the following objectives:    Provide a basis for the consistent and reliable estimation of measure-level gross savings for electric and gas programs Serve as a common reference document for all IOUs, stakeholders, program implementers, and regulators to provide transparency regarding savings assumptions, calculations, and sources. Serve as a primary calculation document for the Statewide Assessment of Energy Efficiency Potential. Organization The TRM is maintained by a third-party through a joint contract with the Iowa IOUs. The thirdparty contractor is supported by a standing steering committee with representation from each of the Iowa IOUs and the Office of Consumer Advocate. A larger stakeholder advisory group is organized to provide input in the development process, thus ensuring that the TRM has input and support from a broad stakeholder group. The TRM is a living document. It is expected that substantial resources will continue to be involved in maintenance of the TRM. Collaboration with Stakeholders MidAmerican intends to continue to participate in the collaborative process established in the last plan. Pursuant to the settled Issue 10 found in the Settlement Agreement in Docket No. EEP-20120002 and approved by the Iowa Utilities Board in its Final Order, MidAmerican has agreed to a specific format for collaborating with interested stakeholders. This format is set forth in Appendix 3 to the Settlement Agreement entitled, “Collaboration Plan for MidAmerican and 2014-2018 Plan Stakeholders.” Key collaborative activities will include:      Fall Operations Report/Review of program changes and updates; Reporting of impact and spending progress; Annual report and meeting; EECR filing; and Collaborative topical meetings as requested. 116 Filed with the Iowa Utilities Board on July 9, 2018, EEP-2018-0002 MidAmerican Energy Company Application Exhibit 1 Energy Efficiency Plan Page 5 of 5 Reporting MidAmerican will conduct analyses of its programs and will report annual results to the Iowa Utilities Board. Annual reports will provide the following information:           Energy and demand electric and gas savings by program and measure within each program on the following bases: o Gross ax-ante o Gross ex-post (where information is available from impact reviews) Comparisons of gross ex-ante savings to plan goals Net savings based on the most recent available net-to-gross research Estimated program lifetime savings Spending by program and measure within each program Comparisons of spending to plan goals Cost-effectiveness calculations by program based on the Societal Cost, the Total Resource Cost, the Utility, the Ratepayer Impact, and the Participant tests Load shapes and avoided costs used in the cost effectiveness analyses will be consistent with those used in the development of this Plan Measure lives and incremental costs will be consistent with information in the TRM Calculations will be conducted on a gross ex-ante basis MidAmerican will communicate informally with Iowa Utilities Board staff in the event that any changes to the operational details of the programs are needed. 117