2016 Annual Report Our Best Year Ever
Year In Review
In 2016, Energy Trust exceeded all annual electric and natural gas efficiency goals and installed more standard solar capacity and generation than ever before—while maintaining very low costs.
As a newcomer to Oregon in 2016, my priority was to visit many of the communities we serve and learn firsthand about the needs of people around the state. Successful change starts at the local level. Energy Trust can support local goals, from economic development and managing population growth to mitigating drought and boosting resiliency.
Clean energy is critical to Oregon’s economy and lower carbon future. While we have been successful in our first 15 years at saving enough energy equal to the output of a power plant, there is still plenty more to accomplish. And opportunities to generate clean energy from Oregon’s sun, water, waste and wind are abundant. Energy Trust is leading the rest of the country in finding new technologies and strategies to help capture efficiency and generate renewable resources—one community at a time.
The road ahead is full of opportunity.
Michael Colgrove
Executive Director
In 2016, Central Oregon customers of Pacific Power and Cascade Natural Gas:
- Invested in clean energy upgrades at 5,670 sites
- Saved $4.8 million on utility bills
- Were served by 190 Energy Trust trade allies
In 2016, Eastern Oregon customers of Pacific Power, Cascade Natural Gas and Avista:
- Invested in clean energy upgrades at 780 sites
- Saved $1.4 million on utility bills
- Were served by 190 Energy Trust trade allies
In 2016, Southern Oregon customers of Pacific Power, NW Natural and Avista:
- Invested in clean energy upgrades at 10,960 sites
- Saved $9.7 million on customer utility bills
- Were served by 260 Energy Trust trade allies
In 2016, Willamette Valley customers of Portland General Electric, Pacific Power and NW Natural:
- Invested in clean energy upgrades at 14,660 sites
- Saved $15.3 million on utility bills
- Were served by 375 Energy Trust trade allies
In 2016, North Coast customers of Pacific Power and NW Natural:
- Invested in clean energy upgrades at 1,280 sites
- Saved $957,000 on utility bills
- Were served by 80 Energy Trust trade allies
In 2016, Portland Metro and Columbia Gorge customers of Portland General Electric, Pacific Power and NW Natural:
- Invested in clean energy upgrades at 47,250 sites
- Saved $65.8 million on utility bills
- Were served by 670 Energy Trust trade allies
Energy Trust in Your Community
Annual Results
Exceeded Energy Savings Goals
In the highest ever year for electric and gas savings, Energy Trust exceeded all annual electric and gas efficiency goals while maintaining very low costs.
(aMW is average megawatts and MMTh is million annual therms.)
GREW RENEWABLE GENERATION PIPELINE
Energy Trust exceeded its standard solar generation goal and fell short of its overall renewable energy goal due to the delay of two custom projects to 2017. We also built a robust pipeline of renewable energy projects expected to generate energy in future years.
THE LOWEST COST ENERGY WE CAN BUY
Energy efficiency is the lowest-cost energy utilities can buy at just a fraction of the cost they would pay for other energy sources. For every $1 we invest in energy efficiency, customers will save nearly $3. Overall, customers and utilities will save approximately $2.6 billion from utilities not needing to invest in additional generation, transmission, distribution or fuel purchases.
Levelized cost is Energy Trust’s total cost to save or generate each unit of energy over the life of an upgrade, which can range from one to more than 20 years.
- 2.6 cents/kWh (compared to 7.6 cents/kWh utilities would otherwise pay)
- 27.9 cents/therm (compared to 47 cents/therm utilities would otherwise pay)
REVENUES AND EXPENDITURES ON TARGET
- Revenues totaled $148.9 million, on target with budget
- Expenditures totaled $183.8 million, on target with budget (as planned, used reserved to meet expenses in excess of revenue)
- Delivered $109.2 million in incentives—with the remainder going to delivery of customer services
- Spent less than 6.2 percent of annual revenues on administrative and program support costs to ensure proper oversight of ratepayer funds ($9,283,716)
- Achieved an unmodified financial opinion from an independent auditor, available online
- Kept staffing costs low at 6.6 percent of total expenditures, calculated on a three-year rolling average. In 2016, Energy Trust spent $12,049,558 on staffing costs.
MET PERFORMANCE MEASURES SET BY THE OREGON PUBLIC UTILITY COMMISSION
The Oregon Public Utility Commission oversees Energy Trust’s investment in energy-efficiency and renewable power programs and sets minimum performance measures to ensure Energy Trust delivers value to customers.
| Category | 2016 Performance Measures | 2016 Results | Status |
|---|---|---|---|
| PGE efficiency | 28.6 aMW | 36.5 aMW saved | |
| Levelized cost not to exceed 3.4 cents/kWh | 2.6 cents/kWh | ||
| Pacific Power efficiency | 18.2 aMW | 23.6 aMW saved | |
| Levelized cost not to exceed 3.5 cents/kWh | 2.6 cents/kWh | ||
| NW Natural efficiency | 4.5 million annual therms | 6.2 million annual therms saved | |
| Levelized cost not to exceed 37 cents/therm | 27 cents/therm | ||
| Cascade Natural Gas efficiency | 0.40 million annual therms | 0.51 million annual therms saved | |
| Levelized cost not to exceed 47 cents/therm | 33 cents/therm | ||
| Renewable energy | Report project development assistance results | Paid $1,807,019 and committed $2,985,081 in project development assistance to 48 projects | |
| 1.6 aMW net-metered standard projects | Standard solar generation 2.3 aMW | ||
| Not to exceed $25/allocated MWh for non-solar custom projects | $15.82/MWh on a 3-year rolling average | ||
| Report selection criteria for custom solar projects | Dedicated funding for one custom net-metered solar project selected based on business plan | ||
| Financial integrity | Unmodified financial opinion | Unmodified | |
| Administrative/ program support costs | Below 8% percent of annual revenues | 6.2% | |
| Staffing expenditures | Not to exceed 7.75% of total organization expenditures calculated on a three-year rolling average | 6.6% | |
| Customer satisfaction | Demonstrate greater than 85 percent satisfaction rates for interaction with program representatives and overall satisfaction | Achieved 96% and 93% satisfaction, respectively | |
| Benefit/cost ratios | Report benefit/cost ratios for both utility system and total resource perspective | All benefit/cost ratios were greater than 1.0 and no mid-year update needed |
One average megawatt, aMW, of electricity is the generation of one megawatt every hour for one year.
Levelized cost is Energy Trust’s total cost to save or generate each unit of energy over the life of the measure (which ranges from one to 20 years or more).
Financials
Overview
These financial highlights are excerpts from independently audited financial statements prepared by Moss Adams LLP.
See the full set of audited financials for 2016 »
Balance sheet
| Assets | $68,704,657 |
| Liabilities | $34,830,732 |
| Net assets | $33,873,925 |
Revenues
| PGE | $77,246,163 |
| Pacific Power | $53,149,641 |
| NW Natural | $18,551,534 |
| Cascade Natural Gas | $1,687,981 |
| Avista | $156,000 |
| Other sources | $531,294 |
| Total revenue | $151,323,244 |
Expenses by utility service territory
| PGE | $96,346,463 |
| Pacific Power | $63,519,800 |
| NW Natural | $23,475,184 |
| Cascade Natural Gas | $2,253,785 |
| Avista | $87,383 |
| Total expenses | $185,682,617 |
Expenses by type
| Energy efficiency | $159,719,969 |
| Renewable energy | $19,596,783 |
| Administration | $6,365,865 |
| Total expenses | $185,682,617 |
As intended and in agreement with utilities and the OPUC, Energy Trust used program reserves to meet expenses in excess of revenue.