Massachusetts Electric Company and Nantucket Electric Company, each d/b/a National Grid, D.P.U Energy Efficiency Plan-Year Report

Transcription

1 Stacey M. Donnelly Senior Counsel Via Hand Delivery and Mark D. Marini, Secretary Department of Public Utilities One South Station, 5 th Floor Boston, Massachusetts Re: Massachusetts Electric Company and Nantucket Electric Company, each d/b/a National Grid, - Dear Secretary Marini: On behalf of Massachusetts Electric Company and Nantucket Electric Company, each d/b/a National Grid (collectively, the Company ), enclosed is the Company s 2016 Energy Efficiency Plan-Year Report for filing with the Department of Public Utilities (the Department ). 1 Plan Year 2016 was the first year of implementation under the Massachusetts Joint Statewide Three-Year Electric and Gas Energy Efficiency Plan, as reviewed and approved by the Department in D.P.U through D.P.U Most notably in 2016, the Massachusetts Energy Efficiency Program Administrators 2 (the Program Administrators or PAs ) successfully delivered on very ambitious energy savings goals for the year - exceeding statewide energy savings goals while maintaining budgetary control and complying with the directive of the Green Communities Act to seek all available cost-effective energy efficiency opportunities. The PAs successfully implemented their programs in the field while also continuing to manage a sustainable delivery of their energy efficiency programs to meet goals not just for 2016, but for the full life of the three-year plans and beyond. The 2016 goals were intentionally designed to be very challenging goals, and despite anticipated challenges the PAs achieved statewide benefits goals. In the wake of these challenges, the PAs engaged in numerous and varied efforts to increase savings, in particular in the C&I sector, including a special focus on increased internal sales training and external workforce development training, expanded offerings, and enhanced strategies to encourage increased participation. For 1 2 This report is being submitted pursuant to the Hearing Officer s Memorandum dated May 2, 2014 adopting the Energy Efficiency Plan-Year Report Template in D.P.U A, Phase II. The Massachusetts Program Administrators are: Bay State Gas Company, d/b/a Columbia Gas of Massachusetts; The Berkshire Gas Company; Boston Gas Company, Colonial Gas Company, Massachusetts Electric Company and Nantucket Electric Company each d/b/a National Grid; Cape Light Compact; Fitchburg Gas and Electric Light Company d/b/a Unitil; NSTAR Electric Company, NSTAR Gas Company and Western Massachusetts Electric Company, each d/b/a Eversource Energy; and Liberty Utilities (New England Natural Gas Company) Corp. d/b/a Liberty Utilities. 40 Sylvan Road, Waltham, MA T: F: stacey.donnelly@nationalgrid.com

2 Mark D. Marini, Secretary Page 2 example, in 2016, the PAs worked to establish a consistent approach to large new construction projects, along with developing a statewide baseline document for custom new construction projects. The increased transparency, clarity, and consistency of program elements across all PAs reduced confusion in the marketplace for customers and design teams with projects spanning multiple PA territories. In the residential sector, the PAs achieved strong results in 2016 despite the mild winter. The Home Energy Services core initiative conducted over 75,000 Home Energy Assessments throughout the Commonwealth, and attained the highest closure rate to date. The PAs also received the ENERGY STAR Partner of the Year Award for excellence in energy efficiency program delivery for the Residential Lighting & Products core initiatives. This is the Environmental Protection Agency s ( EPA ) most prestigious award that recognizes the success and innovativeness of the PAs efforts to increase the adoption of energy efficient products in Massachusetts. In 2016, the PAs continued to enhance the energy efficiency programs to meet the needs of customers and improve the overall customer experience. As an example, the PAs procured a rebate processing vendor to work across all residential initiatives and fuels (gas, electric, oil, and propane). With their new vendor, the PAs created a single online rebate form to streamline the experience for their customers who often apply for different measures across multiple initiatives at the same time. These accomplishments demonstrate the PAs continued commitment throughout 2016 and beyond to building on the experience of their initial three-year plans, and leveraging their good working relationships to better coordinate their efforts and share ideas and best practices. The PAs management committees have continued to meet regularly to facilitate the process of enhanced integration and coordination between electric and gas programs. Given the exceptional nature of these efforts and the unprecedented goals established in the plans, plan year 2016 performance has been an outright success for energy efficiency in Massachusetts. The Program Administrators look forward to continuing these efforts and achieving additional successes going forward. If there are any questions related to this filing please contact me at Thank you for time and attention to this filing. Very truly yours, Stacey M. Donnelly Enclosures cc: Jeffrey Leupold, Department of Public Utilities Donald Boecke, Office of the Attorney General Rachel Graham Evans, Department of Energy Resources Jerrold Oppenheim, Low-Income Energy Affordability Network Members of the Energy Efficiency Advisory Council (via only)

3 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid 2016 Energy Efficiency Plan-Year Report

4 Massachusetts Electric Company Nantucket Electric Company d/b/a National Grid Table of Contents 2016 PLAN YEAR REPORT DATA TABLES Appendix 1: Appendix 2: Appendix 3: Appendix 4: Significant Core Initiative Variances & Cost-Effectiveness Benefit-Cost Ratio Screening Tool Technical Reference Manual 2016 Report Version Statewide Evaluation Studies Summary Appendix 4A - Table of Evaluation Studies Appendix 4B - Summary of the Studies with the Most Significant Effects Appendix 4C - Evaluation Study Summaries Appendix 4D Plan-Year Report Evaluation Studies Appendix 5: Appendix 6: Performance Incentives Demand Reduction Update

5 2016 Plan Year Report Variances Variances Summary National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 1 of 38 Program Variances Summary Total Program Cost Variances Lifetime Electric Savings (MWh) Total Benefits (2016$) Variances Variances Variances A - Residential -11.2% 16.4% 11.9% -21.8% A1 - Residential Whole House -6.3% 55.2% 20.9% -15.3% A1a - Residential New Construction 64.3% 369.6% 394.1% -62.1% A1b - Residential Multi-Family Retrofit 29.7% 9.6% 8.2% 19.1% A1c - Residential Home Energy Services - Measures -20.0% 41.4% -0.6% -3.4% A1d - Residential Home Energy Services - RCS 8.9% A1e - Residential Behavior/Feedback Program -0.7% 4.9% 4.6% 0.0% A2 - Residential Products -19.2% 4.1% 1.6% -30.2% A2a - Residential Heating & Cooling Equipment -4.9% -13.6% -17.8% -3.1% A2b - Residential Consumer Products -10.0% -15.0% -3.2% 13.6% A2c - Residential Lighting -22.8% 5.5% 2.8% -33.2% B - Low-Income -16.4% -17.3% -24.7% -4.3% B1 - Low-Income Whole House -15.9% -17.3% -24.7% -4.3% B1a - Low-Income Single Family Retrofit -13.8% -8.6% -17.3% -4.3% B1b - Low-Income Multi-Family Retrofit -18.1% -23.6% -37.2% -4.2% C - Commercial & Industrial 5.9% 34.9% 30.0% -0.5% C1 - C&I New Construction -26.8% -14.6% -24.7% -2.3% C1a - C&I New Buildings & Major Renovations -45.2% -40.9% -43.6% -0.5% C1b - C&I Initial Purchase & End of Useful Life -8.4% 19.3% -6.7% -3.4% C2 - C&I Retrofit 16.4% 53.3% 51.9% -0.1% C2a - C&I Existing Building Retrofit 23.1% 73.7% 67.6% -0.5% C2b - C&I Small Business 12.7% 22.4% 30.5% 0.0% C2c - C&I Multifamily Retrofit 10.5% -14.2% -30.5% 36.2% C2d - C&I Upstream Lighting -8.3% 29.9% 33.6% 0.0% Grand Total -4.5% 25.2% 18.4% -9.9% Notes Significant variances, which require explanation, are defined as: (1) variances between planned and actual core initiative budget of 15 percent or greater; (2) variances between planned and preliminary core initiative total lifetime savings showing a decrease of 15 percent or greater; (3) variances between planned and preliminar y core initiative total benefits showing a decrease of 15 percent or greater; and (4) variances between preliminary and evaluated core initiative total resource benefits showing a decrease of 15 percent or greater. Total Resource Benefits (2016$) Variances are calculated as a percent of the three-year goal, meaning variance are calculated as the percentage difference between the percentage of the Three-Year Plan goals planned to be achieved through the Plan Year Report year compared to the percentage of the Three- Year Plan goals actually achieved through the Plan Year Report year. Cells highlighted in the above tables indicate that a variance is significant enough to require explanation. Refer to the Program Administrator's Plan Year Report for explanations of significant variances.

6 2016 Plan Year Report Variances Total Program Cost Variances National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 2 of 38 Total Program Cost Variances Planned Actual Planned v. Actual (%) Program Planned 2016 Actual 2016 Planned v % Total Plan % Total Plan Actual (%) A - Residential 125,228, ,022, ,819, ,070, ,228,657 32% 28% -11.2% A1 - Residential Whole House 76,754,143 80,419,177 83,449, ,622,750 71,929,116 32% 30% -6.3% A1a - Residential New Construction 3,041,588 3,045,779 3,174,364 9,261,730 4,995,982 33% 54% 64.3% A1b - Residential Multi-Family Retrofit 10,218,336 10,550,506 10,925,042 31,693,884 13,251,051 32% 42% 29.7% A1c - Residential Home Energy Services - Measures 51,463,519 54,567,058 56,992, ,022,607 41,173,069 32% 25% -20.0% A1d - Residential Home Energy Services - RCS 5,872,408 6,107,534 6,201,602 18,181,544 6,392,254 32% 35% 8.9% A1e - Residential Behavior/Feedback Program 6,158,293 6,148,300 6,156,392 18,462,985 6,116,760 33% 33% -0.7% A2 - Residential Products 36,866,184 39,626,904 39,753, ,246,943 29,803,434 32% 26% -19.2% A2a - Residential Heating & Cooling Equipment 5,202,345 5,444,032 5,664,988 16,311,365 4,944,865 32% 30% -4.9% A2b - Residential Consumer Products 3,325,564 3,378,864 3,427,697 10,132,126 2,993,837 33% 30% -10.0% A2c - Residential Lighting 28,338,276 30,804,008 30,661,169 89,803,452 21,864,732 32% 24% -22.8% B - Low-Income 32,544,343 32,875,646 32,952,695 98,372,684 27,202,456 33% 28% -16.4% B1 - Low-Income Whole House 31,795,953 32,122,697 32,194,924 96,113,574 26,739,202 33% 28% -15.9% B1a - Low-Income Single Family Retrofit 16,455,939 16,818,896 16,886,911 50,161,746 14,178,197 33% 28% -13.8% B1b - Low-Income Multi-Family Retrofit 15,340,014 15,303,801 15,308,013 45,951,828 12,561,005 33% 27% -18.1% C - Commercial & Industrial 118,663, ,855, ,031, ,549, ,683,867 33% 35% 5.9% C1 - C&I New Construction 25,658,942 28,379,373 31,457,040 85,495,355 18,774,253 30% 22% -26.8% C1a - C&I New Buildings & Major Renovations 12,869,915 14,270,528 16,044,826 43,185,270 7,054,146 30% 16% -45.2% C1b - C&I Initial Purchase & End of Useful Life 12,789,027 14,108,844 15,412,214 42,310,085 11,720,107 30% 28% -8.4% C2 - C&I Retrofit 90,733,262 89,212,271 87,380, ,325, ,579,369 34% 39% 16.4% C2a - C&I Existing Building Retrofit 53,845,425 53,559,832 51,305, ,710,647 66,298,636 34% 42% 23.1% C2b - C&I Small Business 19,855,505 20,385,760 20,883,240 61,124,505 22,370,569 32% 37% 12.7% C2c - C&I Multifamily Retrofit 6,884,791 7,074,225 7,253,611 21,212,627 7,608,977 32% 36% 10.5% C2d - C&I Upstream Lighting 10,147,541 8,192,454 7,937,969 26,277,964 9,301,188 39% 35% -8.3% Grand Total 276,435, ,753, ,802, ,992, ,114,980 33% 31% -4.5% Notes Plan year core initiative significant variance explanations are required for: (1) variances between planned and actual core initiative budget of 15 percent or greater.

7 2016 Plan Year Report Variances Lifetime Electric Savings (MWh) Variances National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 3 of 38 Lifetime Electric Savings (MWh) Variances Planned Preliminary Planned v. Preliminary (%) Program Planned 2016 Preliminary 2016 Planned v % Total Plan % Total Plan Preliminary (%) A - Residential 2,435,610 2,455,409 2,373,069 7,264,088 2,834,607 34% 39% 16.4% A1 - Residential Whole House 586, , ,398 1,711, ,601 34% 53% 55.2% A1a - Residential New Construction 38,884 35,497 42, , ,594 33% 157% 369.6% A1b - Residential Multi-Family Retrofit 50,757 51,352 52, ,374 55,643 33% 36% 9.6% A1c - Residential Home Energy Services - Measures 413, , ,992 1,189, ,308 35% 49% 41.4% A1d - Residential Home Energy Services - RCS A1e - Residential Behavior/Feedback Program 83,928 83,931 83, ,793 88,056 33% 35% 4.9% A2 - Residential Products 1,848,941 1,886,588 1,816,671 5,552,200 1,924,006 33% 35% 4.1% A2a - Residential Heating & Cooling Equipment 75,387 76,162 77, ,552 65,167 33% 29% -13.6% A2b - Residential Consumer Products 57,232 58,570 60, ,939 48,668 33% 28% -15.0% A2c - Residential Lighting 1,716,321 1,751,857 1,679,531 5,147,709 1,810,170 33% 35% 5.5% B - Low-Income 188, , , , ,655 34% 28% -17.3% B1 - Low-Income Whole House 188, , , , ,655 34% 28% -17.3% B1a - Low-Income Single Family Retrofit 79,345 78,042 76, ,291 72,487 34% 31% -8.6% B1b - Low-Income Multi-Family Retrofit 108, , , ,508 83,169 34% 26% -23.6% C - Commercial & Industrial 3,043,259 3,220,601 3,610,935 9,874,795 4,104,659 31% 42% 34.9% C1 - C&I New Construction 826, , ,285 2,712, ,629 30% 26% -14.6% C1a - C&I New Buildings & Major Renovations 466, , ,152 1,537, ,562 30% 18% -40.9% C1b - C&I Initial Purchase & End of Useful Life 360, , ,133 1,175, ,068 31% 37% 19.3% C2 - C&I Retrofit 2,216,562 2,312,180 2,633,650 7,162,393 3,399,029 31% 47% 53.3% C2a - C&I Existing Building Retrofit 1,285,057 1,302,883 1,481,590 4,069,530 2,232,483 32% 55% 73.7% C2b - C&I Small Business 401, , ,204 1,231, ,819 33% 40% 22.4% C2c - C&I Multifamily Retrofit 29,673 30,443 31,236 91,352 25,468 32% 28% -14.2% C2d - C&I Upstream Lighting 499, , ,620 1,769, ,259 28% 37% 29.9% Grand Total 5,667,089 5,855,737 6,170,857 17,693,682 7,094,921 32% 40% 25.2% Notes Plan year core initiative significant variance explanations are required for: (2) variances between planned and preliminary core initiative total lifetime savings showing a decrease of 15 percent or greater.

8 2016 Plan Year Report Variances Lifetime Natural Gas Savings (Therms) Variances National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 4 of 38 Lifetime Natural Gas Savings (Therms) Variances Planned Preliminary Planned v. Preliminary (%) Program Planned 2016 Preliminary 2016 Planned v % Total Plan % Total Plan Preliminary (%) A - Residential (19,370,623) (19,745,180) (18,909,349) (58,025,153) (20,123,474) 33% 35% 3.9% A1 - Residential Whole House 23,040 23,040 23,040 69, ,270 33% 1015% % A1a - Residential New Construction 23,040 23,040 23,040 69, ,734 33% 578% % A1b - Residential Multi-Family Retrofit A1c - Residential Home Energy Services - Measures ,536 A1d - Residential Home Energy Services - RCS A1e - Residential Behavior/Feedback Program A2 - Residential Products (19,393,663) (19,768,220) (18,932,389) (58,094,273) (20,824,744) 33% 36% 7.4% A2a - Residential Heating & Cooling Equipment (166,450) (149,805) (134,824) (451,079) (182,028) 37% 40% 9.4% A2b - Residential Consumer Products 29,907 37,422 46, ,107 27,408 26% 24% -8.4% A2c - Residential Lighting (19,257,120) (19,655,838) (18,844,342) (57,757,300) (20,670,123) 33% 36% 7.3% B - Low-Income 2,220 2,220 2,220 6, % 9% -74.1% B1 - Low-Income Whole House 2,220 2,220 2,220 6, % 9% -74.1% B1a - Low-Income Single Family Retrofit 2,220 2,220 2,220 6, % 9% -74.1% B1b - Low-Income Multi-Family Retrofit C - Commercial & Industrial (9,288,229) (10,685,443) (24,825,062) (44,798,734) (12,585,478) 21% 28% 35.5% C1 - C&I New Construction 2,589,002 2,933,435 3,290,665 8,813,103 (629,425) 29% -7% % C1a - C&I New Buildings & Major Renovations 1,272,344 1,478,825 1,739,757 4,490,926 (240,481) 28% -5% % C1b - C&I Initial Purchase & End of Useful Life 1,316,658 1,454,610 1,550,908 4,322,177 (388,945) 30% -9% % C2 - C&I Retrofit (11,877,231) (13,618,879) (28,115,727) (53,611,837) (11,956,053) 22% 22% 0.7% C2a - C&I Existing Building Retrofit (8,411,748) (9,702,890) (23,606,130) (41,720,768) (9,372,833) 20% 22% 11.4% C2b - C&I Small Business (1,635,027) (1,667,728) (1,701,082) (5,003,838) (212,563) 33% 4% -87.0% C2c - C&I Multifamily Retrofit (128,313) (132,162) (136,127) (396,602) - 32% 0% % C2d - C&I Upstream Lighting (1,702,143) (2,116,098) (2,672,388) (6,490,629) (2,370,657) 26% 37% 39.3% Grand Total (28,656,632) (30,428,403) (43,732,190) (102,817,225) (32,708,378) 28% 32% 14.1% Notes Plan year core initiative significant variance explanations are required for: (2) variances between planned and preliminary core initiative total lifetime savings showing a decrease of 15 percent or greater.

9 2016 Plan Year Report Variances Total Benefits (2016$) Variances National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 5 of 38 Total Benefits (2016$) Variances Planned Preliminary Planned v. Preliminary (%) Program Planned 2016 Preliminary 2016 Planned v % Total Plan % Total Plan Preliminary (%) A - Residential 398,632, ,959, ,336,685 1,188,928, ,183,473 34% 38% 11.9% A1 - Residential Whole House 214,223, ,177, ,752, ,154, ,890,260 33% 40% 20.9% A1a - Residential New Construction 11,263,402 10,956,570 12,191,498 34,411,471 55,654,985 33% 162% 394.1% A1b - Residential Multi-Family Retrofit 8,740,852 8,954,267 9,298,883 26,994,002 9,456,290 32% 35% 8.2% A1c - Residential Home Energy Services - Measures 181,158, ,084, ,765, ,007, ,116,581 33% 33% -0.6% A1d - Residential Home Energy Services - RCS A1e - Residential Behavior/Feedback Program 13,061,344 12,182,604 9,497,224 34,741,172 13,662,403 38% 39% 4.6% A2 - Residential Products 184,408, ,781, ,584, ,774, ,293,213 34% 35% 1.6% A2a - Residential Heating & Cooling Equipment 9,136,044 9,181,768 9,322,535 27,640,346 7,507,014 33% 27% -17.8% A2b - Residential Consumer Products 6,980,147 6,992,813 7,112,347 21,085,307 6,754,678 33% 32% -3.2% A2c - Residential Lighting 168,292, ,607, ,149, ,049, ,031,522 34% 35% 2.8% B - Low-Income 57,546,679 57,586,199 58,340, ,473,498 43,349,623 33% 25% -24.7% B1 - Low-Income Whole House 57,546,679 57,586,199 58,340, ,473,498 43,349,623 33% 25% -24.7% B1a - Low-Income Single Family Retrofit 36,237,653 37,004,552 37,071, ,313,680 29,976,084 33% 27% -17.3% B1b - Low-Income Multi-Family Retrofit 21,309,025 20,581,647 21,269,147 63,159,818 13,373,539 34% 21% -37.2% C - Commercial & Industrial 436,755, ,323, ,043,535 1,378,121, ,716,306 32% 41% 30.0% C1 - C&I New Construction 125,046, ,642, ,754, ,442,986 94,178,649 30% 23% -24.7% C1a - C&I New Buildings & Major Renovations 61,000,154 67,120,990 74,160, ,281,438 34,403,365 30% 17% -43.6% C1b - C&I Initial Purchase & End of Useful Life 64,046,539 71,521,063 75,593, ,161,547 59,775,284 30% 28% -6.7% C2 - C&I Retrofit 311,708, ,681, ,289, ,678, ,537,657 32% 49% 51.9% C2a - C&I Existing Building Retrofit 181,049, ,466, ,083, ,600, ,461,637 33% 55% 67.6% C2b - C&I Small Business 60,302,183 60,797,720 61,706, ,805,937 78,704,269 33% 43% 30.5% C2c - C&I Multifamily Retrofit 4,080,475 3,946,514 3,882,672 11,909,661 2,836,320 34% 24% -30.5% C2d - C&I Upstream Lighting 66,275,754 71,470,039 82,616, ,362,603 88,535,430 30% 40% 33.6% Grand Total 892,934, ,868, ,720,840 2,740,524,056 1,057,249,402 33% 39% 18.4% Notes Plan year core initiative significant variance explanations are required for: (3) variances between planned and preliminary core initiative total benefits showing a decrease of 15 percent or greater.

10 2016 Plan Year Report Variances Total Resource Benefits (2016$) Variances National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 6 of 38 Total Resource Benefits (2016$) Variances 2016 Program Preliminary v Preliminary Evaluated Evaluated (%) A - Residential 401,642, ,975, % A1 - Residential Whole House 226,426, ,692, % A1a - Residential New Construction 49,532,887 18,772, % A1b - Residential Multi-Family Retrofit 6,871,289 8,184, % A1c - Residential Home Energy Services - Measures 156,359, ,072, % A1d - Residential Home Energy Services - RCS - - A1e - Residential Behavior/Feedback Program 13,662,403 13,662, % A2 - Residential Products 175,216, ,283, % A2a - Residential Heating & Cooling Equipment 7,155,615 6,930, % A2b - Residential Consumer Products 6,754,678 7,670, % A2c - Residential Lighting 161,306, ,682, % B - Low-Income 32,099,101 30,728, % B1 - Low-Income Whole House 32,099,101 30,728, % B1a - Low-Income Single Family Retrofit 22,620,392 21,648, % B1b - Low-Income Multi-Family Retrofit 9,478,710 9,079, % C - Commercial & Industrial 486,478, ,129, % C1 - C&I New Construction 90,156,266 88,087, % C1a - C&I New Buildings & Major Renovations 34,385,522 34,213, % C1b - C&I Initial Purchase & End of Useful Life 55,770,744 53,874, % C2 - C&I Retrofit 396,322, ,042, % C2a - C&I Existing Building Retrofit 254,512, ,280, % C2b - C&I Small Business 64,614,922 64,614, % C2c - C&I Multifamily Retrofit 2,628,524 3,581, % C2d - C&I Upstream Lighting 74,565,831 74,565, % Grand Total 920,219, ,833, % Notes Plan year core initiative significant variance explanations are required for: (4) variances between preliminary and evaluated core initiative total resource benefits showing a decrease of 15 percent or greater.

11 Program Administrator Budgets, Plan Year Summary 2016 Planned vs. Evaluated National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 7 of Planned Program Administrator Budget Program Program Costs Performance Total Program Program Cost per Resource Benefit Program Planning and Marketing and Participant Sales, Technical Evaluation and Market Total Program Costs Incentive Administrator Budget Participant per Program Cost Administration Advertising Incentive Assistance & Training Research A - Residential 3,749,226 4,783,984 96,983,755 16,829,489 2,881, ,228,251 6,732, ,960, A1 - Residential Whole House 1,956,017 1,492,949 58,026,834 13,331,636 1,946,706 76,754,143 3,496,082 80,250, A1a - Residential New Construction 120,170 50,620 2,378, ,685 76,112 3,041, ,568 3,204,155 1, A1b - Residential Multi-Family Retrofit 259, ,799 7,750,000 1,593, ,989 10,218,336 81,810 10,300,146 1, A1c - Residential Home Energy Services - Measures 1,349, ,659 42,126,796 6,145,185 1,306,995 51,463,519 3,044,843 54,508,361 4, A1d - Residential Home Energy Services - RCS 60, ,851-5,140, ,766 5,872,408-5,872,408 - A1e - Residential Behavior/Feedback Program 166,408 27,020 5,772,038 35, ,844 6,158, ,862 6,365, A2 - Residential Products 948,981 1,962,891 30,628,254 2,390, ,091 36,866,184 3,235,982 40,102, A2a - Residential Heating & Cooling Equipment 143, ,226 4,394, , ,892 5,202,345 97,389 5,299, A2b - Residential Consumer Products 120, ,319 1,096,115 1,190,074 81,444 3,325,564 99,453 3,425, A2c - Residential Lighting 684, ,345 25,137, , ,754 28,338,276 3,039,139 31,377, A3 - Residential Hard-to-Measure 844,228 1,328,144 8,328,667 1,106,885-11,607,924-11,607,924 - A3a - Residential Statewide Marketing - 468, , ,358 - A3b - Residential Statewide Database 61, ,510-61,510 - A3c - Residential DOER Assessment 468, , ,202 - A3d - Residential EEAC Consultants A3e - Residential Sponsorships & Subscriptions 314,515 40, , ,347 - A3f - Residential HEAT Loan - 80,954 8,098, ,156-9,000,000-9,000,000 - A3g - Residential Workforce Development , , ,177 - A3h - Residential R&D and Demonstration - 20, , , , ,329 - A3i - Residential Education - 718, , ,000 - B - Low-Income 1,410, ,381 24,591,503 5,376, ,874 32,544, ,218 33,418,561 1, B1 - Low-Income Whole House 825, ,346 24,591,503 5,376, ,874 31,795, ,218 32,670,171 1, B1a - Low-Income Single Family Retrofit 435, ,306 12,669,662 2,791, ,287 16,455, ,140 17,045,079 3, B1b - Low-Income Multi-Family Retrofit 389,511 54,040 11,921,841 2,585, ,587 15,340, ,078 15,625,092 1, B2 - Low-Income Hard-to-Measure 585, , , ,390 - B2a - Low-Income Statewide Marketing - 151, , ,239 - B2b - Low-Income Statewide Database 17, ,770-17,770 - B2c - Low-Income DOER Assessment 158, , ,766 - B2d - Low-Income Energy Affordability Network 317, , ,960 - B2e - Low-Income Sponsorships & Subscriptions 90,860 11, , ,656 - C - Commercial & Industrial 4,398,343 2,067,659 95,290,368 13,825,270 3,081, ,663,272 7,423, ,087,090 10, C1 - C&I New Construction 684, ,001 20,246,688 3,790, ,035 25,658,942 2,308,911 27,967,854 56, C1a - C&I New Buildings & Major Renovations 332, ,252 9,135,618 2,810, ,172 12,869,915 1,115,588 13,985,503 54, C1b - C&I Initial Purchase & End of Useful Life 351,276 29,749 11,111, , ,864 12,789,027 1,193,324 13,982,351 58, C2 - C&I Retrofit 2,557,583 1,068,302 74,893,681 9,749,099 2,464,597 90,733,262 5,114,906 95,848,167 8, C2a - C&I Existing Building Retrofit 1,445, ,878 43,306,000 7,177,974 1,218,484 53,845,425 2,800,011 56,645,437 62, C2b - C&I Small Business 663, ,339 17,885, , ,548 19,855,505 1,021,220 20,876,725 10, C2c - C&I Multifamily Retrofit 178,584 74,085 5,000,000 1,471, ,089 6,884,791 17,613 6,902,403 34, C2d - C&I Upstream Lighting 270,089-8,702, , ,476 10,147,541 1,276,062 11,423,602 1, C3 - C&I Hard-to-Measure 1,156, , , ,000-2,271,068-2,271,068 - C3a - C&I Statewide Marketing - 510, , ,246 - C3b - C&I Statewide Database 57, ,409-57,409 - C3c - C&I DOER Assessment 805, , ,755 - C3d - C&I EEAC Consultants C3e - C&I Sponsorships & Subscriptions 293,548 38, , ,658 - C3f - C&I Workforce Development ,000-70,000-70,000 - C3g - C&I R&D and Demonstration - 130, , , , ,000 - Grand Total 9,557,952 7,211, ,865,626 36,030,961 6,770, ,435,867 15,030, ,465,

12 Program Administrator Budgets, Plan Year Summary 2016 Planned vs. Evaluated National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 8 of Evaluated Program Administrator Budget Program Program Costs Performance Total Program Program Cost per Resource Benefit Program Planning and Marketing and Participant Sales, Technical Evaluation and Market Total Program Costs Incentive Administrator Budget Participant per Program Cost Administration Advertising Incentive Assistance & Training Research A - Residential 3,177,730 4,888,288 85,092,182 15,463,318 2,607, ,228,657 6,118, ,347, A1 - Residential Whole House 1,717,537 1,764,912 54,884,429 12,678, ,610 71,929,116 3,909,603 75,838, A1a - Residential New Construction 108,735 9,494 4,110, , ,505 4,995, ,617 5,335,599 1, A1b - Residential Multi-Family Retrofit 200, ,152 10,317,476 2,241, ,588 13,251, ,703 13,363, A1c - Residential Home Energy Services - Measures 1,035, ,451 34,617,291 4,476, ,656 41,173,069 3,233,713 44,406,782 3, A1d - Residential Home Energy Services - RCS 223, ,733 67,078 5,415,255 43,269 6,392,254-6,392,254 - A1e - Residential Behavior/Feedback Program 149, ,082 5,772,038 8,479 75,591 6,116, ,570 6,340, A2 - Residential Products 738,814 1,807,973 23,680,596 1,879,160 1,696,890 29,803,434 2,209,196 32,012, A2a - Residential Heating & Cooling Equipment 129, ,265 3,809, , ,999 4,944,865 76,835 5,021, A2b - Residential Consumer Products 144, ,793 1,318, ,701 27,865 2,993, ,393 3,121, A2c - Residential Lighting 465, ,915 18,553, ,652 1,305,027 21,864,732 2,004,968 23,869, A3 - Residential Hard-to-Measure 721,378 1,315,403 6,527, ,529 26,638 9,496,107-9,496,107 - A3a - Residential Statewide Marketing - 488, , , ,397 - A3b - Residential Statewide Database 11, ,665-11,665 - A3c - Residential DOER Assessment 694, , ,126 - A3d - Residential EEAC Consultants A3e - Residential Sponsorships & Subscriptions 5, ,560-5,560 - A3f - Residential HEAT Loan 8, ,285 6,521, ,624-7,462,665-7,462,665 - A3g - Residential Workforce Development ,247-36,247-36,247 - A3h - Residential R&D and Demonstration 1,625-5,804 65,658 19,681 92,768-92,768 - A3i - Residential Education (0) 697, , ,679 - B - Low-Income 979, ,401 21,542,505 4,131, ,393 27,202, ,565 28,005,021 1, B1 - Low-Income Whole House 661, ,253 21,542,505 4,131, ,393 26,739, ,565 27,541,767 1, B1a - Low-Income Single Family Retrofit 352, ,165 11,541,614 2,036, ,383 14,178, ,846 14,842,043 2, B1b - Low-Income Multi-Family Retrofit 308,771 37,088 10,000,891 2,095, ,010 12,561, ,719 12,699,724 1, B2 - Low-Income Hard-to-Measure 318, , , ,254 - B2a - Low-Income Statewide Marketing - 145, , ,148 - B2b - Low-Income Statewide Database B2c - Low-Income DOER Assessment 176, , ,329 - B2d - Low-Income Energy Affordability Network 139, , ,991 - B2e - Low-Income Sponsorships & Subscriptions C - Commercial & Industrial 3,758,519 2,067, ,564,863 14,553,203 1,739, ,683,867 9,835, ,519,281 8, C1 - C&I New Construction 575, ,675 13,317,343 3,967, ,669 18,774,253 1,749,641 20,523,894 19, C1a - C&I New Buildings & Major Renovations 302, ,488 3,804,436 2,275, ,473 7,054, ,216 7,741,362 27, C1b - C&I Initial Purchase & End of Useful Life 273,085 69,187 9,512,907 1,691, ,196 11,720,107 1,062,425 12,782,532 16, C2 - C&I Retrofit 2,512,396 1,146,766 90,247,520 10,420,982 1,251, ,579,369 8,085, ,665,142 7, C2a - C&I Existing Building Retrofit 1,499, ,061 54,738,432 8,705, ,471 66,298,636 4,968,667 71,267,303 49, C2b - C&I Small Business 652, ,575 20,846, , ,337 22,370,569 1,355,213 23,725,781 13, C2c - C&I Multifamily Retrofit 151,293 66,129 6,150,053 1,162,875 78,627 7,608,977 39,767 7,648,743 12, C2d - C&I Upstream Lighting 208,961-8,512, , ,270 9,301,188 1,722,126 11,023, C3 - C&I Hard-to-Measure 670, , ,640-1,330,245-1,330,245 - C3a - C&I Statewide Marketing - 495, , ,468 - C3b - C&I Statewide Database 14, ,575-14,575 - C3c - C&I DOER Assessment 648, , ,410 - C3d - C&I EEAC Consultants C3e - C&I Sponsorships & Subscriptions 5, ,826-66,707-66,707 - C3f - C&I Workforce Development ,599-65,599-65,599 - C3g - C&I R&D and Demonstration 1, ,215-39,486-39,486 - Grand Total 7,915,817 7,257, ,199,550 34,148,110 4,593, ,114,980 16,756, ,871,

13 Program Administrator Budgets, Plan Year Summary 2016 Planned vs. Evaluated National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 9 of Planned v. Evaluated Program Administrator Budget Variances (%) Program Program Costs Performance Total Program Program Cost per Resource Benefit Program Planning and Marketing and Participant Sales, Technical Evaluation and Market Total Program Costs Incentive Administrator Budget Participant per Program Cost Administration Advertising Incentive Assistance & Training Research A - Residential -15% 2% -12% -8% -10% -11% -9% -11% -15% 0% A1 - Residential Whole House -12% 18% -5% -5% -55% -6% 12% -5% -6% 12% A1a - Residential New Construction -10% -81% 73% 29% 203% 64% 109% 67% -24% 12% A1b - Residential Multi-Family Retrofit -23% 2% 33% 41% -51% 30% 38% 30% -27% -11% A1c - Residential Home Energy Services - Measures -23% 19% -18% -27% -69% -20% 6% -19% -11% 24% A1d - Residential Home Energy Services - RCS 270% 23% 5% -71% 9% 9% A1e - Residential Behavior/Feedback Program -10% 311% 0% -76% -52% -1% 8% 0% 1% 5% A2 - Residential Products -22% -8% -23% -21% 81% -19% -32% -20% -25% -12% A2a - Residential Heating & Cooling Equipment -10% 7% -13% 27% 176% -5% -21% -5% 194% -16% A2b - Residential Consumer Products 20% -10% 20% -37% -66% -10% 28% -9% 55% 22% A2c - Residential Lighting -32% -8% -26% -21% 81% -23% -34% -24% -30% -11% A3 - Residential Hard-to-Measure -15% -1% -22% -18% -18% -18% A3a - Residential Statewide Marketing 4% 6% 6% A3b - Residential Statewide Database -81% -81% -81% A3c - Residential DOER Assessment 48% 48% 48% A3d - Residential EEAC Consultants A3e - Residential Sponsorships & Subscriptions -98% -100% -98% -98% A3f - Residential HEAT Loan 60% -19% -2% -17% -17% A3g - Residential Workforce Development -75% -75% -75% A3h - Residential R&D and Demonstration -100% -97% -53% -76% -76% A3i - Residential Education -3% -3% -3% B - Low-Income -31% -16% -12% -23% -69% -16% -8% -16% 7% -11% B1 - Low-Income Whole House -20% -20% -12% -23% -69% -16% -8% -16% 8% -11% B1a - Low-Income Single Family Retrofit -19% -16% -9% -27% -69% -14% 13% -13% -27% -9% B1b - Low-Income Multi-Family Retrofit -21% -31% -16% -19% -69% -18% -51% -19% 34% -18% B2 - Low-Income Hard-to-Measure -46% -11% -38% -38% B2a - Low-Income Statewide Marketing -4% -4% -4% B2b - Low-Income Statewide Database -95% -95% -95% B2c - Low-Income DOER Assessment 11% 11% 11% B2d - Low-Income Energy Affordability Network -56% -56% -56% B2e - Low-Income Sponsorships & Subscriptions -99% -100% -99% -99% C - Commercial & Industrial -15% 0% 9% 5% -44% 6% 32% 7% -13% 20% C1 - C&I New Construction -16% 33% -34% 5% -21% -27% -24% -27% -65% -4% C1a - C&I New Buildings & Major Renovations -9% 22% -58% -19% 5% -45% -38% -45% -49% 2% C1b - C&I Initial Purchase & End of Useful Life -22% 133% -14% 73% -45% -8% -11% -9% -71% -8% C2 - C&I Retrofit -2% 7% 21% 7% -49% 16% 58% 19% -2% 32% C2a - C&I Existing Building Retrofit 4% 5% 26% 21% -49% 23% 77% 26% -20% 40% C2b - C&I Small Business -2% 17% 17% -46% -49% 13% 33% 14% 25% 18% C2c - C&I Multifamily Retrofit -15% -11% 23% -21% -51% 11% 126% 11% -65% 2% C2d - C&I Upstream Lighting -23% -2% -53% -49% -8% 35% -4% -21% 39% C3 - C&I Hard-to-Measure -42% -27% -100% -42% -41% -41% C3a - C&I Statewide Marketing -3% -3% -3% C3b - C&I Statewide Database -75% -75% -75% C3c - C&I DOER Assessment -20% -20% -20% C3d - C&I EEAC Consultants C3e - C&I Sponsorships & Subscriptions -98% -100% -80% -80% C3f - C&I Workforce Development -6% -6% -6% C3g - C&I R&D and Demonstration -100% -100% -82% -92% -92% Grand Total -17% 1% -3% -5% -32% -4% 11% -4% -9% 12% Notes Where not otherwise indicated, budgets for each year are represented in nominal dollars (2016$, 2017$, 2018$) Refer to common definitions for allocation of costs. EEAC Consultant fees on the electric side do not get paid out of the Program Administrators' budgets, but are instead paid by the DOER out of the RGGI proceeds The budgets in the above tables do not include costs associated with the Program Administrator's demand response activities The plan year variances provided above are intended to indicate the Program Administrator's performance in the plan year only. The variances used to determine significant variances are provided separately. The variances above and the significant variances use different calculations to determine variances on an annual basis and over the three-year term, respectively.

14 Program Administrator Budgets, Three-Year Total Program Administrator Budget National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 10 of Evaluated Program Administrator Budget Program Program Costs Performance Total Program Program Cost per Resource Benefit Program Planning and Marketing and Participant Sales, Technical Evaluation and Market Total Program Costs Incentive Administrator Budget Participant per Program Cost Administration Advertising Incentive Assistance & Training Research A - Residential 3,177,730 4,888,288 85,092,182 15,463,318 2,607, ,228,657 6,118, ,347, A1 - Residential Whole House 1,717,537 1,764,912 54,884,429 12,678, ,610 71,929,116 3,909,603 75,838, A1a - Residential New Construction 108,735 9,494 4,110, , ,505 4,995, ,617 5,335,599 1, A1b - Residential Multi-Family Retrofit 200, ,152 10,317,476 2,241, ,588 13,251, ,703 13,363, A1c - Residential Home Energy Services - Measures 1,035, ,451 34,617,291 4,476, ,656 41,173,069 3,233,713 44,406,782 3, A1d - Residential Home Energy Services - RCS 223, ,733 67,078 5,415,255 43,269 6,392,254-6,392,254 - A1e - Residential Behavior/Feedback Program 149, ,082 5,772,038 8,479 75,591 6,116, ,570 6,340, A2 - Residential Products 738,814 1,807,973 23,680,596 1,879,160 1,696,890 29,803,434 2,209,196 32,012, A2a - Residential Heating & Cooling Equipment 129, ,265 3,809, , ,999 4,944,865 76,835 5,021, A2b - Residential Consumer Products 144, ,793 1,318, ,701 27,865 2,993, ,393 3,121, A2c - Residential Lighting 465, ,915 18,553, ,652 1,305,027 21,864,732 2,004,968 23,869, A3 - Residential Hard-to-Measure 721,378 1,315,403 6,527, ,529 26,638 9,496,107-9,496,107 - A3a - Residential Statewide Marketing - 488, , , ,397 - A3b - Residential Statewide Database 11, ,665-11,665 - A3c - Residential DOER Assessment 694, , ,126 - A3d - Residential EEAC Consultants A3e - Residential Sponsorships & Subscriptions 5, ,560-5,560 - A3f - Residential HEAT Loan 8, ,285 6,521, ,624-7,462,665-7,462,665 - A3g - Residential Workforce Development ,247-36,247-36,247 - A3h - Residential R&D and Demonstration 1,625-5,804 65,658 19,681 92,768-92,768 - A3i - Residential Education (0) 697, , ,679 - B - Low-Income 979, ,401 21,542,505 4,131, ,393 27,202, ,565 28,005,021 1, B1 - Low-Income Whole House 661, ,253 21,542,505 4,131, ,393 26,739, ,565 27,541,767 1, B1a - Low-Income Single Family Retrofit 352, ,165 11,541,614 2,036, ,383 14,178, ,846 14,842,043 2, B1b - Low-Income Multi-Family Retrofit 308,771 37,088 10,000,891 2,095, ,010 12,561, ,719 12,699,724 1, B2 - Low-Income Hard-to-Measure 318, , , ,254 - B2a - Low-Income Statewide Marketing - 145, , ,148 - B2b - Low-Income Statewide Database B2c - Low-Income DOER Assessment 176, , ,329 - B2d - Low-Income Energy Affordability Network 139, , ,991 - B2e - Low-Income Sponsorships & Subscriptions C - Commercial & Industrial 3,758,519 2,067, ,564,863 14,553,203 1,739, ,683,867 9,835, ,519,281 8, C1 - C&I New Construction 575, ,675 13,317,343 3,967, ,669 18,774,253 1,749,641 20,523,894 19, C1a - C&I New Buildings & Major Renovations 302, ,488 3,804,436 2,275, ,473 7,054, ,216 7,741,362 27, C1b - C&I Initial Purchase & End of Useful Life 273,085 69,187 9,512,907 1,691, ,196 11,720,107 1,062,425 12,782,532 16, C2 - C&I Retrofit 2,512,396 1,146,766 90,247,520 10,420,982 1,251, ,579,369 8,085, ,665,142 7, C2a - C&I Existing Building Retrofit 1,499, ,061 54,738,432 8,705, ,471 66,298,636 4,968,667 71,267,303 49, C2b - C&I Small Business 652, ,575 20,846, , ,337 22,370,569 1,355,213 23,725,781 13, C2c - C&I Multifamily Retrofit 151,293 66,129 6,150,053 1,162,875 78,627 7,608,977 39,767 7,648,743 12, C2d - C&I Upstream Lighting 208,961-8,512, , ,270 9,301,188 1,722,126 11,023, C3 - C&I Hard-to-Measure 670, , ,640-1,330,245-1,330,245 - C3a - C&I Statewide Marketing - 495, , ,468 - C3b - C&I Statewide Database 14, ,575-14,575 - C3c - C&I DOER Assessment 648, , ,410 - C3d - C&I EEAC Consultants C3e - C&I Sponsorships & Subscriptions 5, ,826-66,707-66,707 - C3f - C&I Workforce Development ,599-65,599-65,599 - C3g - C&I R&D and Demonstration 1, ,215-39,486-39,486 - Grand Total 7,915,817 7,257, ,199,550 34,148,110 4,593, ,114,980 16,756, ,871,

15 Program Administrator Budgets, Three-Year Total Program Administrator Budget National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 11 of Planned Program Administrator Budget Program Program Costs Performance Total Program Program Cost per Resource Benefit Program Planning and Marketing and Participant Sales, Technical Evaluation and Market Total Program Costs Incentive Administrator Budget Participant per Program Cost Administration Advertising Incentive Assistance & Training Research A - Residential 3,709,573 5,145, ,685,196 17,453,356 3,028, ,022,746 6,880, ,903, A1 - Residential Whole House 1,957,359 1,558,333 61,070,048 13,804,740 2,028,696 80,419,177 3,603,086 84,022, A1a - Residential New Construction 135,114 54,133 2,359, ,979 75,553 3,045, ,338 3,208,116 1, A1b - Residential Multi-Family Retrofit 238, ,567 8,034,000 1,651, ,586 10,550,506 87,724 10,638,230 1, A1c - Residential Home Energy Services - Measures 1,369, ,443 44,905,230 6,350,947 1,377,394 54,567,058 3,157,985 57,725,043 4, A1d - Residential Home Energy Services - RCS 62, ,111-5,339, ,806 6,107,534-6,107,534 - A1e - Residential Behavior/Feedback Program 152,027 27,078 5,771,818 41, ,358 6,148, ,039 6,343, A2 - Residential Products 904,864 2,078,534 33,128,571 2,514,895 1,000,040 39,626,904 3,277,705 42,904, A2a - Residential Heating & Cooling Equipment 134, ,067 4,500, , ,510 5,444, ,472 5,544, A2b - Residential Consumer Products 125, ,448 1,116,936 1,214,082 82,266 3,378, ,567 3,481, A2c - Residential Lighting 645,038 1,016,019 27,511, , ,264 30,804,008 3,074,667 33,878, A3 - Residential Hard-to-Measure 847,350 1,509,017 8,486,576 1,133,721-11,976,664-11,976,664 - A3a - Residential Statewide Marketing - 468, , ,631 - A3b - Residential Statewide Database 61, ,510-61,510 - A3c - Residential DOER Assessment 468, , ,202 - A3d - Residential EEAC Consultants A3e - Residential Sponsorships & Subscriptions 317,638 41, , ,875 - A3f - Residential HEAT Loan - 80,954 8,098, ,156-9,000,000-9,000,000 - A3g - Residential Workforce Development , , ,177 - A3h - Residential R&D and Demonstration - 33, , , , ,269 - A3i - Residential Education - 885, , ,000 - B - Low-Income 1,364, ,298 24,967,865 5,355, ,951 32,875, ,688 33,778,333 1, B1 - Low-Income Whole House 775, ,873 24,967,865 5,355, ,951 32,122, ,688 33,025,384 1, B1a - Low-Income Single Family Retrofit 422, ,718 13,046,024 2,769, ,868 16,818, ,585 17,440,481 3, B1b - Low-Income Multi-Family Retrofit 352,934 54,156 11,921,841 2,586, ,082 15,303, ,102 15,584,903 1, B2 - Low-Income Hard-to-Measure 589, , , ,949 - B2a - Low-Income Statewide Marketing - 151, , ,512 - B2b - Low-Income Statewide Database 17, ,770-17,770 - B2c - Low-Income DOER Assessment 158, , ,766 - B2d - Low-Income Energy Affordability Network 321, , ,227 - B2e - Low-Income Sponsorships & Subscriptions 91,762 11, , ,675 - C - Commercial & Industrial 4,472,075 2,036,183 96,064,379 14,544,923 2,737, ,855,549 8,038, ,893,620 8, C1 - C&I New Construction 702, ,851 22,695,423 4,026, ,769 28,379,373 2,635,572 31,014,945 56, C1a - C&I New Buildings & Major Renovations 336, ,243 10,364,289 2,974, ,416 14,270,528 1,261,927 15,532,455 54, C1b - C&I Initial Purchase & End of Useful Life 366,262 12,608 12,331,134 1,051, ,353 14,108,844 1,373,645 15,482,490 58, C2 - C&I Retrofit 2,609,590 1,063,053 73,191,456 10,270,953 2,077,219 89,212,271 5,402,500 94,614,771 6, C2a - C&I Existing Building Retrofit 1,414, ,154 42,628,000 7,623,904 1,202,871 53,559,832 2,888,137 56,447,969 62, C2b - C&I Small Business 776, ,319 18,257, , ,756 20,385,760 1,058,271 21,444,031 10, C2c - C&I Multifamily Retrofit 178,332 74,580 5,142,800 1,513, ,721 7,074,225 14,980 7,089,206 35, C2d - C&I Upstream Lighting 239,701-7,163, , ,871 8,192,454 1,441,111 9,633, C3 - C&I Hard-to-Measure 1,159, , , ,500-2,263,905-2,263,905 - C3a - C&I Statewide Marketing - 510, , ,791 - C3b - C&I Statewide Database 57, ,409-57,409 - C3c - C&I DOER Assessment 805, , ,755 - C3d - C&I EEAC Consultants C3e - C&I Sponsorships & Subscriptions 296,462 38, , ,950 - C3f - C&I Workforce Development ,000-70,000-70,000 - C3g - C&I R&D and Demonstration - 130, , , , ,000 - Grand Total 9,546,291 7,556, ,717,440 37,354,169 6,579, ,753,940 15,821, ,575,

16 Program Administrator Budgets, Three-Year Total Program Administrator Budget National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 12 of Planned Program Administrator Budget Program Program Costs Performance Total Program Program Cost per Resource Benefit Program Planning and Marketing and Participant Sales, Technical Evaluation and Market Total Program Costs Incentive Administrator Budget Participant per Program Cost Administration Advertising Incentive Assistance & Training Research A - Residential 3,953,301 4,885, ,074,079 17,847,507 3,058, ,819,235 6,921, ,740, A1 - Residential Whole House 2,158,751 1,530,852 63,598,083 14,091,858 2,069,886 83,449,430 3,699,597 87,149, A1a - Residential New Construction 160,675 58,946 2,447, ,290 77,042 3,174, ,615 3,367,979 1, A1b - Residential Multi-Family Retrofit 248, ,390 8,328,065 1,711, ,841 10,925,042 96,446 11,021,489 1, A1c - Residential Home Energy Services - Measures 1,530, ,629 47,049,241 6,453,206 1,413,649 56,992,030 3,266,485 60,258,516 4, A1d - Residential Home Energy Services - RCS 64, ,747-5,450, ,916 6,201,602-6,201,602 - A1e - Residential Behavior/Feedback Program 155,394 27,140 5,773,366 46, ,438 6,156, ,050 6,299, A2 - Residential Products 935,500 2,009,974 33,153,294 2,666, ,015 39,753,854 3,221,879 42,975, A2a - Residential Heating & Cooling Equipment 140, ,964 4,612, , ,873 5,664, ,001 5,770, A2b - Residential Consumer Products 139, ,341 1,135,745 1,238,587 81,967 3,427, ,193 3,535, A2c - Residential Lighting 656, ,668 27,405, , ,174 30,661,169 3,007,684 33,668, A3 - Residential Hard-to-Measure 859,050 1,344,621 8,322,701 1,089,578-11,615,951-11,615,951 - A3a - Residential Statewide Marketing - 468, , ,911 - A3b - Residential Statewide Database 61, ,510-61,510 - A3c - Residential DOER Assessment 468, , ,202 - A3d - Residential EEAC Consultants A3e - Residential Sponsorships & Subscriptions 329,338 42, , ,094 - A3f - Residential HEAT Loan - 80,954 8,098, ,156-9,000,000-9,000,000 - A3g - Residential Workforce Development , , ,177 - A3h - Residential R&D and Demonstration - 30, , , , ,056 - A3i - Residential Education - 722, , ,000 - B - Low-Income 1,406, ,255 25,006,799 5,359, ,083 32,952, ,942 33,903,637 1, B1 - Low-Income Whole House 813, ,111 25,006,799 5,359, ,083 32,194, ,942 33,145,866 1, B1a - Low-Income Single Family Retrofit 452, ,831 13,084,958 2,771, ,168 16,886, ,156 17,530,067 3, B1b - Low-Income Multi-Family Retrofit 360,361 54,279 11,921,841 2,588, ,915 15,308, ,786 15,615,799 1, B2 - Low-Income Hard-to-Measure 593, , , ,771 - B2a - Low-Income Statewide Marketing - 151, , ,792 - B2b - Low-Income Statewide Database 17, ,770-17,770 - B2c - Low-Income DOER Assessment 158, , ,766 - B2d - Low-Income Energy Affordability Network 321, , ,949 - B2e - Low-Income Sponsorships & Subscriptions 95,142 12, , ,494 - C - Commercial & Industrial 4,324,066 2,080,308 96,504,258 15,394,810 2,727, ,031,056 8,877, ,908,210 8, C1 - C&I New Construction 672, ,240 25,456,870 4,286, ,624 31,457,040 2,917,828 34,374,868 57, C1a - C&I New Buildings & Major Renovations 326, ,549 11,907,669 3,157, ,255 16,044,826 1,430,812 17,475,638 53, C1b - C&I Initial Purchase & End of Useful Life 346,701 12,691 13,549,201 1,129, ,369 15,412,214 1,487,015 16,899,229 61, C2 - C&I Retrofit 2,480,776 1,082,810 70,919,888 10,893,747 2,002,990 87,380,211 5,959,326 93,339,538 6, C2a - C&I Existing Building Retrofit 1,252, ,880 40,080,000 8,136,720 1,131,243 51,305,390 3,091,759 54,397,149 61, C2b - C&I Small Business 848, ,344 18,638, , ,290 20,883,240 1,106,451 21,989,692 10, C2c - C&I Multifamily Retrofit 163,457 75,586 5,289,884 1,557, ,844 7,253,611 13,939 7,267,550 36, C2d - C&I Upstream Lighting 216,285-6,912, , ,613 7,937,969 1,747,178 9,685, C3 - C&I Hard-to-Measure 1,170, , , ,500-2,193,804-2,193,804 - C3a - C&I Statewide Marketing - 511, , ,352 - C3b - C&I Statewide Database 57, ,409-57,409 - C3c - C&I DOER Assessment 805, , ,755 - C3d - C&I EEAC Consultants C3e - C&I Sponsorships & Subscriptions 307,382 39, , ,288 - C3f - C&I Workforce Development ,000-70,000-70,000 - C3g - C&I R&D and Demonstration - 130, , , , ,000 - Grand Total 9,684,116 7,342, ,585,135 38,602,126 6,589, ,802,986 16,749, ,552,

17 Program Administrator Budgets, Three-Year Total Program Administrator Budget National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 13 of Program Administrator Budget Program Program Costs Performance Total Program Program Cost per Resource Benefit Program Planning and Marketing and Participant Sales, Technical Evaluation and Market Total Program Costs Incentive Administrator Budget Participant per Program Cost Administration Advertising Incentive Assistance & Training Research A - Residential 10,840,604 14,919, ,851,457 50,764,181 8,694, ,070,637 19,921, ,991, A1 - Residential Whole House 5,833,647 4,854, ,552,561 40,575,226 4,982, ,797,723 11,212, ,010, A1a - Residential New Construction 404, ,573 8,916,956 1,388, ,100 11,216, ,569 11,911,694 1, A1b - Residential Multi-Family Retrofit 687,116 1,090,109 26,679,541 5,604, ,015 34,726, ,874 35,023, A1c - Residential Home Energy Services - Measures 3,934,494 1,746, ,571,763 17,280,677 3,198, ,732,158 9,658, ,390,341 4, A1d - Residential Home Energy Services - RCS 350,523 1,729,591 67,078 16,205, ,991 18,701,390-18,701,390 - A1e - Residential Behavior/Feedback Program 456, ,300 17,317,222 95, ,388 18,421, ,659 18,983, A2 - Residential Products 2,579,178 5,896,481 89,962,462 7,060,127 3,685, ,184,192 8,708, ,892, A2a - Residential Heating & Cooling Equipment 404, ,296 12,922,096 1,471, ,382 16,053, ,308 16,337, A2b - Residential Consumer Products 408,340 2,422,583 3,571,008 3,206, ,098 9,800, ,153 10,138, A2c - Residential Lighting 1,766,433 2,860,602 73,469,358 2,382,051 2,851,465 83,329,909 8,087,319 91,417, A3 - Residential Hard-to-Measure 2,427,779 4,169,042 23,336,435 3,128,828 26,638 33,088,722-33,088,722 - A3a - Residential Statewide Marketing - 1,425, ,957 1,432,939-1,432,939 - A3b - Residential Statewide Database 134, , ,685 - A3c - Residential DOER Assessment 1,630, ,630,530-1,630,530 - A3d - Residential EEAC Consultants A3e - Residential Sponsorships & Subscriptions 652,535 83, , ,529 - A3f - Residential HEAT Loan 8, ,193 22,719,134 2,443,936-25,462,665-25,462,665 - A3g - Residential Workforce Development , , ,601 - A3h - Residential R&D and Demonstration 1,625 63, , ,291 19,681 1,056,094-1,056,094 - A3i - Residential Education (0) 2,304, ,304,679-2,304,679 - B - Low-Income 3,750,959 1,051,954 71,517,169 14,847,288 1,863,427 93,030,797 2,656,195 95,686,992 1, B1 - Low-Income Whole House 2,249, ,237 71,517,169 14,847,288 1,863,427 91,056,822 2,656,195 93,713,018 1, B1a - Low-Income Single Family Retrofit 1,227, ,714 37,672,597 7,576, ,419 47,884,004 1,928,588 49,812,592 2, B1b - Low-Income Multi-Family Retrofit 1,022, ,523 33,844,572 7,270, ,008 43,172, ,607 43,900,426 1, B2 - Low-Income Hard-to-Measure 1,501, , ,973,975-1,973,975 - B2a - Low-Income Statewide Marketing - 448, , ,452 - B2b - Low-Income Statewide Database 36, ,441-36,441 - B2c - Low-Income DOER Assessment 493, , ,861 - B2d - Low-Income Energy Affordability Network 783, , ,167 - B2e - Low-Income Sponsorships & Subscriptions 187,789 24, , ,054 - C - Commercial & Industrial 12,554,660 6,184, ,133,500 44,492,937 7,204, ,570,472 26,750, ,321,111 8, C1 - C&I New Construction 1,951,588 1,035,766 61,469,636 12,280,614 1,873,062 78,610,666 7,303,040 85,913,706 39, C1a - C&I New Buildings & Major Renovations 965, ,280 26,076,394 8,408, ,144 37,369,501 3,379,955 40,749,456 45, C1b - C&I Initial Purchase & End of Useful Life 986,049 94,486 35,393,242 3,872, ,918 41,241,165 3,923,085 45,164,251 34, C2 - C&I Retrofit 7,602,762 3,292, ,358,864 31,585,683 5,331, ,171,851 19,447, ,619,450 7, C2a - C&I Existing Building Retrofit 4,166,725 2,130, ,446,432 24,466,022 2,954, ,163,858 10,948, ,112,421 56, C2b - C&I Small Business 2,278, ,239 57,741,869 1,407,069 1,266,382 63,639,569 3,519,935 67,159,504 11, C2c - C&I Multifamily Retrofit 493, ,295 16,582,737 4,234, ,192 21,936,814 68,685 22,005,499 21, C2d - C&I Upstream Lighting 664,947-22,587,825 1,478, ,754 25,431,611 4,910,415 30,342, C3 - C&I Hard-to-Measure 3,000,310 1,856, , ,640-5,787,954-5,787,954 - C3a - C&I Statewide Marketing - 1,517, ,517,611-1,517,611 - C3b - C&I Statewide Database 129, , ,394 - C3c - C&I DOER Assessment 2,259, ,259,919-2,259,919 - C3d - C&I EEAC Consultants C3e - C&I Sponsorships & Subscriptions 609,725 78,394-60, , ,945 - C3f - C&I Workforce Development , , ,599 - C3g - C&I R&D and Demonstration 1, , , , , ,486 - Grand Total 27,146,224 22,155, ,502, ,104,406 17,763, ,671,906 49,327, ,999, Notes Where not otherwise indicated, budgets for each year are represented in nominal dollars (2016$, 2017$, 2018$) Refer to common definitions for allocation of costs. EEAC Consultant fees on the electric side do not get paid out of the Program Administrators' budgets, but are instead paid by the DOER out of the RGGI proceeds The budgets in the above tables do not include costs associated with the Program Administrator's demand response activities

18 Program Administrator Budgets, Plan Year Summary Demand Response National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 14 of Planned Demand Response Budget Sector Program Planning and Marketing and Participant Sales, Technical Evaluation and Market Total Program Costs Administration Advertising Incentive Assistance & Training Research A - Residential $ 187,375 $ 210,000 $ 596,282 $ 1,778,956 $ 110,904 $ 2,883,517 B - Low-Income $ - $ - $ - $ - $ - $ - C - Commercial & Industrial $ 198,104 $ 31,500 $ 99,750 $ 642,664 $ 38,881 $ 1,010,899 Grand Total $ 385,478 $ 241,500 $ 696,032 $ 2,421,620 $ 149,785 $ 3,894, Actual Demand Response Budget Sector Program Planning and Marketing and Participant Sales, Technical Evaluation and Market Total Program Costs Administration Advertising Incentive Assistance & Training Research A - Residential $ 206,503 $ 224,063 $ 67,235 $ 242,263 $ 170,044 $ 910,108 B - Low-Income $ - C - Commercial & Industrial $ 50,852 $ 3,525 $ - $ 64,790 $ 7,311 $ 126,478 Grand Total $ 257,355 $ 227,588 $ 67,235 $ 307,053 $ 177,355 $ 1,036, Planned v. Actual Demand Response Budget Variances (%) Sector Program Planning and Marketing and Participant Sales, Technical Evaluation and Market Total Program Costs Administration Advertising Incentive Assistance & Training Research A - Residential 10% 7% -89% -86% 53% -68% B - Low-Income C - Commercial & Industrial -74% -89% -100% -90% -81% -87% Grand Total -33% -6% -90% -87% 18% -73%

19 Program Savings, Plan Year Summary 2016 Planned vs. Evaluated National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 15 of Planned Net Savings Electric Savings Natural Gas Savings Deliverable Fuel Savings Other Savings Program # of Participants Annual Capacity (kw) Energy (MWh) (Therms) Oil (MMBTU) Propane (MMBTU) Water (Gallons) Summer Winter Annual Lifetime Annual Lifetime Annual Lifetime Annual Lifetime Annual Lifetime A - Residential 2,009,604 45,485 59, ,163 2,435,610 (2,191,543) (19,370,623) 110,711 3,207,694 (17,813) 19,321 41,752, ,403,118 A1 - Residential Whole House 735,511 21,138 28, , ,670 1,536 23, ,714 4,378,225 16, ,170 40,689, ,963,539 A1a - Residential New Construction 1, ,899 38,884 1,536 23, ,618 4, , A1b - Residential Multi-Family Retrofit 10, ,444 5,297 50, ,510 74, ,111,579 14,781,055 A1c - Residential Home Energy Services - Measures 11,535 6,816 8,744 44, , ,018 4,299,217 11, ,954 38,578, ,182,483 A1d - Residential Home Energy Services - RCS A1e - Residential Behavior/Feedback Program 712,176 13,093 17,936 83,928 83, A2 - Residential Products 1,274,094 24,347 31, ,566 1,848,941 (2,193,079) (19,393,663) (133,002) (1,170,531) (34,148) (300,849) 1,062,797 7,439,579 A2a - Residential Heating & Cooling Equipment 18, ,152 5,740 75,387 (9,247) (166,450) A2b - Residential Consumer Products 21,326 1, ,808 57,232 4,272 29, ,223 1,062,797 7,439,579 A2c - Residential Lighting 1,234,203 22,667 29, ,018 1,716,321 (2,188,104) (19,257,120) (133,002) (1,170,531) (34,323) (302,072) - - B - Low-Income 17,749 2,396 4,432 20, , ,220 45, , ,098,484 21,689,388 B1 - Low-Income Whole House 17,749 2,396 4,432 20, , ,220 45, , ,098,484 21,689,388 B1a - Low-Income Single Family Retrofit 5,200 1,364 1,406 8,336 79, ,220 41, , ,143 5,621,998 B1b - Low-Income Multi-Family Retrofit 12,549 1,031 3,026 12, , ,286 83, ,295,341 16,067,390 C - Commercial & Industrial 11,664 46,077 40, ,912 3,043,259 (698,868) (9,288,229) (60,630) (388,694) - - 6,433,001 77,619,433 C1 - C&I New Construction ,857 10,071 52, , ,393 2,589,002 (2,802) (41,141) C1a - C&I New Buildings & Major Renovations 236 4,753 3,647 28, ,106 71,692 1,272,344 (3,065) (45,614) C1b - C&I Initial Purchase & End of Useful Life 218 7,104 6,424 23, ,590 76,702 1,316, , C2 - C&I Retrofit 11,210 34,220 29, ,910 2,216,562 (847,261) (11,877,231) (57,828) (347,553) - - 6,433,001 77,619,433 C2a - C&I Existing Building Retrofit ,639 12, ,735 1,285,057 (385,783) (8,411,748) 233 (10,323) - - 6,433,001 77,619,433 C2b - C&I Small Business 1,846 6,545 6,273 39, ,954 (163,503) (1,635,027) (1,849) (18,492) C2c - C&I Multifamily Retrofit ,306 4,447 29,673 (20,898) (128,313) (2,362) 11, C2d - C&I Upstream Lighting 8,302 13,796 9,877 78, ,878 (277,078) (1,702,143) (53,850) (330,400) Grand Total 2,039,017 93, , ,043 5,667,089 (2,890,094) (28,656,632) 95,795 3,722,612 (17,793) 19,456 51,284, ,711, Evaluated Net Savings Electric Savings Natural Gas Savings Deliverable Fuel Savings Other Savings Program # of Participants Annual Capacity (kw) Energy (MWh) (Therms) Oil (MMBTU) Propane (MMBTU) Water (Gallons) Summer Winter Annual Lifetime Annual Lifetime Annual Lifetime Annual Lifetime Annual Lifetime A - Residential 2,108,221 52,600 61, ,679 2,141,226 (2,696,588) (16,860,963) (24,851) 2,390,776 18, ,388 38,680, ,391,968 A1 - Residential Whole House 733,931 23,115 32, , ,041 31, , ,742 3,913,441 30, ,096 36,283, ,611,498 A1a - Residential New Construction 3,885 1,459 1,274 6,208 66,075 13, , ,965 13, , A1b - Residential Multi-Family Retrofit 17, ,965 8,064 68, ,281 26, ,324,844 30,273,908 A1c - Residential Home Energy Services - Measures 10,357 7,393 10,336 57, ,438 17, , ,202 3,878,891 16, ,108 31,958, ,337,590 A1d - Residential Home Energy Services - RCS A1e - Residential Behavior/Feedback Program 701,905 13,499 18,492 88,056 88, A2 - Residential Products 1,374,290 29,485 29, ,397 1,389,185 (2,727,843) (17,438,977) (239,593) (1,522,665) (12,119) (77,709) 2,397,210 16,780,470 A2a - Residential Heating & Cooling Equipment 6, ,442 62,651 (10,906) (189,958) (397) (3,965) (56) (555) - - A2b - Residential Consumer Products 12,415 1,637 1,080 5,668 48,668 3,915 27, , ,690 2,397,210 16,780,470 A2c - Residential Lighting 1,355,870 27,345 27, ,287 1,277,866 (2,720,853) (17,276,427) (239,632) (1,521,751) (12,448) (79,844) - - B - Low-Income 13,843 2,136 3,556 16, , , , ,959 1,107,649 7,753,543 B1 - Low-Income Whole House 13,843 2,136 3,556 16, , , , ,959 1,107,649 7,753,543 B1a - Low-Income Single Family Retrofit 6,168 1,150 1,117 6,740 62, , , , ,478 1,214,346 B1b - Low-Income Multi-Family Retrofit 7, ,439 9,288 78, ,171 6,539,197 C - Commercial & Industrial 14,209 55,007 51, ,422 4,110,999 (1,160,405) (14,199,606) (98,722) (825,035) - - 2,559,658 27,800,446 C1 - C&I New Construction 952 7,011 6,201 45, ,533 (26,182) (330,488) (7,948) (114,450) ,630 6,488,157 C1a - C&I New Buildings & Major Renovations 255 2,876 2,595 18, ,073 (4,482) (30,657) (4,033) (57,429) ,460 4,208,685 C1b - C&I Initial Purchase & End of Useful Life 697 4,134 3,606 26, ,460 (21,700) (299,831) (3,916) (57,020) ,170 2,279,472 C2 - C&I Retrofit 13,257 47,996 45, ,129 3,408,466 (1,134,223) (13,869,118) (90,774) (710,585) - - 1,673,028 21,312,289 C2a - C&I Existing Building Retrofit 1,326 21,413 22, ,419 2,231,417 (548,846) (9,372,833) (18,410) (234,961) - - 1,600,182 20,802,366 C2b - C&I Small Business 1,665 8,961 8,181 43, ,819 (220,734) (2,125,629) (2,462) (23,700) C2c - C&I Multifamily Retrofit ,464 5,018 35, , , ,922 C2d - C&I Upstream Lighting 9,634 17,384 12,685 98, ,259 (364,643) (2,370,657) (70,191) (457,067) Grand Total 2,136, , , ,129 6,393,481 (3,856,911) (31,059,995) (91,299) 2,202,683 18, ,347 42,348, ,945,956

20 Program Savings, Plan Year Summary 2016 Planned vs. Evaluated National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 16 of Planned v. Evaluated Net Savings Variances (%) Electric Savings Natural Gas Savings Deliverable Fuel Savings Other Savings Program # of Participants Annual Capacity (kw) Energy (MWh) (Therms) Oil (MMBTU) Propane (MMBTU) Water (Gallons) Summer Winter Annual Lifetime Annual Lifetime Annual Lifetime Annual Lifetime Annual Lifetime A - Residential 5% 16% 2% 8% -12% 23% -13% -122% -25% -204% 2676% -7% -23% A1 - Residential Whole House 0% 9% 12% 17% 28% 1935% 2409% -12% -11% 88% 92% -11% -26% A1a - Residential New Construction 116% 85% 185% 114% 70% 808% 1100% 39% 72% 178% 165% A1b - Residential Multi-Family Retrofit 78% 73% 36% 52% 35% -72% -64% 105% 105% A1c - Residential Home Energy Services - Measures -10% 8% 18% 30% 28% -11% -10% 48% 46% -17% -32% A1d - Residential Home Energy Services - RCS A1e - Residential Behavior/Feedback Program -1% 3% 3% 5% 5% A2 - Residential Products 8% 21% -6% 1% -25% 24% -10% 80% 30% -65% -74% 126% 126% A2a - Residential Heating & Cooling Equipment -68% -26% -35% -23% -17% 18% 14% A2b - Residential Consumer Products -42% 63% 36% -17% -15% -8% -8% 120% 120% 126% 126% A2c - Residential Lighting 10% 21% -6% 3% -26% 24% -10% 80% 30% -64% -74% B - Low-Income -22% -11% -20% -24% -25% -74% -74% -29% -30% 1290% 3582% -64% -64% B1 - Low-Income Whole House -22% -11% -20% -24% -25% -74% -74% -29% -30% 1290% 3582% -64% -64% B1a - Low-Income Single Family Retrofit 19% -16% -21% -19% -21% -74% -74% -22% -22% 1290% 3582% -78% -78% B1b - Low-Income Multi-Family Retrofit -39% -4% -19% -26% -28% -100% -100% -59% -59% C - Commercial & Industrial 22% 19% 28% 30% 35% 66% 53% 63% 112% -60% -64% C1 - C&I New Construction 110% -41% -38% -13% -15% -118% -113% 184% 178% C1a - C&I New Buildings & Major Renovations 8% -39% -29% -36% -41% -106% -102% 32% 26% C1b - C&I Initial Purchase & End of Useful Life 220% -42% -44% 16% 19% -128% -123% -1588% -1375% C2 - C&I Retrofit 18% 40% 51% 40% 54% 34% 17% 57% 104% -74% -73% C2a - C&I Existing Building Retrofit 54% 57% 83% 64% 74% 42% 11% -8008% 2176% -75% -73% C2b - C&I Small Business -10% 37% 30% 10% 22% 35% 30% 33% 28% C2c - C&I Multifamily Retrofit 216% -1% 12% 13% 21% -100% -100% -112% -56% C2d - C&I Upstream Lighting 16% 26% 28% 26% 30% 32% 39% 30% 38% Grand Total 5% 17% 11% 16% 13% 33% 8% -195% -41% -206% 2682% -17% -32% Notes The plan year variances provided above are intended to indicate the Program Administrator's performance in the plan year only. The variances used to determine significant variances are provided separately. The variances above and the significant variances use different calculations to determine variances on an annual basis and over the three-year term, respectively.

21 Program Savings, Three-Year Total Net Savings National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 17 of Evaluated Net Savings Electric Savings Natural Gas Savings Deliverable Fuel Savings Other Savings Program # of Participants Annual Capacity (kw) Energy (MWh) (Therms) Oil (MMBTU) Propane (MMBTU) Water (Gallons) Summer Winter Annual Lifetime Annual Lifetime Annual Lifetime Annual Lifetime Annual Lifetime A - Residential 2,108,221 52,600 61, ,679 2,141,226 (2,696,588) (16,860,963) (24,851) 2,390,776 18, ,388 38,680, ,391,968 A1 - Residential Whole House 733,931 23,115 32, , ,041 31, , ,742 3,913,441 30, ,096 36,283, ,611,498 A1a - Residential New Construction 3,885 1,459 1,274 6,208 66,075 13, , ,965 13, , A1b - Residential Multi-Family Retrofit 17, ,965 8,064 68, ,281 26, ,324,844 30,273,908 A1c - Residential Home Energy Services - Measures 10,357 7,393 10,336 57, ,438 17, , ,202 3,878,891 16, ,108 31,958, ,337,590 A1d - Residential Home Energy Services - RCS A1e - Residential Behavior/Feedback Program 701,905 13,499 18,492 88,056 88, A2 - Residential Products 1,374,290 29,485 29, ,397 1,389,185 (2,727,843) (17,438,977) (239,593) (1,522,665) (12,119) (77,709) 2,397,210 16,780,470 A2a - Residential Heating & Cooling Equipment 6, ,442 62,651 (10,906) (189,958) (397) (3,965) (56) (555) - - A2b - Residential Consumer Products 12,415 1,637 1,080 5,668 48,668 3,915 27, , ,690 2,397,210 16,780,470 A2c - Residential Lighting 1,355,870 27,345 27, ,287 1,277,866 (2,720,853) (17,276,427) (239,632) (1,521,751) (12,448) (79,844) - - B - Low-Income 13,843 2,136 3,556 16, , , , ,959 1,107,649 7,753,543 B1 - Low-Income Whole House 13,843 2,136 3,556 16, , , , ,959 1,107,649 7,753,543 B1a - Low-Income Single Family Retrofit 6,168 1,150 1,117 6,740 62, , , , ,478 1,214,346 B1b - Low-Income Multi-Family Retrofit 7, ,439 9,288 78, ,171 6,539,197 C - Commercial & Industrial 14,209 55,007 51, ,422 4,110,999 (1,160,405) (14,199,606) (98,722) (825,035) - - 2,559,658 27,800,446 C1 - C&I New Construction 952 7,011 6,201 45, ,533 (26,182) (330,488) (7,948) (114,450) ,630 6,488,157 C1a - C&I New Buildings & Major Renovations 255 2,876 2,595 18, ,073 (4,482) (30,657) (4,033) (57,429) ,460 4,208,685 C1b - C&I Initial Purchase & End of Useful Life 697 4,134 3,606 26, ,460 (21,700) (299,831) (3,916) (57,020) ,170 2,279,472 C2 - C&I Retrofit 13,257 47,996 45, ,129 3,408,466 (1,134,223) (13,869,118) (90,774) (710,585) - - 1,673,028 21,312,289 C2a - C&I Existing Building Retrofit 1,326 21,413 22, ,419 2,231,417 (548,846) (9,372,833) (18,410) (234,961) - - 1,600,182 20,802,366 C2b - C&I Small Business 1,665 8,961 8,181 43, ,819 (220,734) (2,125,629) (2,462) (23,700) C2c - C&I Multifamily Retrofit ,464 5,018 35, , , ,922 C2d - C&I Upstream Lighting 9,634 17,384 12,685 98, ,259 (364,643) (2,370,657) (70,191) (457,067) Grand Total 2,136, , , ,129 6,393,481 (3,856,911) (31,059,995) (91,299) 2,202,683 18, ,347 42,348, ,945,956 Electric Savings 2017 Planned Net Savings Natural Gas Savings Deliverable Fuel Savings Other Savings Program # of Participants Annual Capacity (kw) Energy (MWh) (Therms) Oil (MMBTU) Propane (MMBTU) Water (Gallons) Summer Winter Annual Lifetime Annual Lifetime Annual Lifetime Annual Lifetime Annual Lifetime A - Residential 2,004,068 44,064 57, ,603 2,455,409 (2,060,912) (19,745,180) 128,079 3,365,282 (15,320) 21,143 43,717, ,870,746 A1 - Residential Whole House 738,105 21,016 28, , ,820 1,536 23, ,263 4,560,049 16, ,939 42,387, ,562,447 A1a - Residential New Construction 1, ,575 35,497 1,536 23, ,618 4, , A1b - Residential Multi-Family Retrofit 10, ,472 5,363 51, ,308 86, ,174,927 15,224,487 A1c - Residential Home Energy Services - Measures 11,846 6,730 8,637 43, , ,768 4,468,868 11, ,723 40,212, ,337,960 A1d - Residential Home Energy Services - RCS A1e - Residential Behavior/Feedback Program 714,159 13,094 17,936 83,931 83, A2 - Residential Products 1,265,963 23,048 29, ,315 1,886,588 (2,062,448) (19,768,220) (125,184) (1,194,767) (32,087) (306,796) 1,329,757 9,308,300 A2a - Residential Heating & Cooling Equipment 18, ,192 5,783 76,162 (8,322) (149,805) A2b - Residential Consumer Products 21,689 1, ,979 58,570 5,346 37, ,531 1,329,757 9,308,300 A2c - Residential Lighting 1,225,445 21,335 27, ,554 1,751,857 (2,059,472) (19,655,838) (125,184) (1,194,767) (32,305) (308,327) - - B - Low-Income 17,749 2,356 4,373 20, , ,220 47, , ,202,818 22,419,724 B1 - Low-Income Whole House 17,749 2,356 4,373 20, , ,220 47, , ,202,818 22,419,724 B1a - Low-Income Single Family Retrofit 5,200 1,339 1,375 8,146 78, ,220 42, , ,143 5,621,998 B1b - Low-Income Multi-Family Retrofit 12,549 1,016 2,998 12, , ,939 94, ,399,675 16,797,726 C - Commercial & Industrial 13,765 49,723 43, ,147 3,220,601 (822,616) (10,685,443) (75,354) (470,126) - - 7,266,628 95,756,613 C1 - C&I New Construction ,112 11,095 57, , ,804 2,933,435 (2,760) (40,414) C1a - C&I New Buildings & Major Renovations 264 5,239 3,972 31, ,838 84,039 1,478,825 (3,023) (44,887) C1b - C&I Initial Purchase & End of Useful Life 241 7,873 7,123 25, ,583 84,765 1,454, , C2 - C&I Retrofit 13,260 36,611 31, ,989 2,312,180 (991,420) (13,618,879) (72,594) (429,713) - - 7,266,628 95,756,613 C2a - C&I Existing Building Retrofit ,784 12, ,491 1,302,883 (452,243) (9,702,890) 85 (9,906) - - 7,266,628 95,756,613 C2b - C&I Small Business 1,885 6,680 6,403 40, ,487 (166,773) (1,667,728) (1,886) (18,862) C2c - C&I Multifamily Retrofit ,343 4,572 30,443 (21,525) (132,162) (2,489) 10, C2d - C&I Upstream Lighting 10,320 15,900 11,682 93, ,367 (350,879) (2,116,098) (68,303) (411,824) Grand Total 2,035,582 96, , ,358 5,855,737 (2,883,211) (30,428,403) 100,578 3,840,089 (15,301) 21,278 54,186, ,047,083

22 Program Savings, Three-Year Total Net Savings National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 18 of Planned Net Savings Electric Savings Natural Gas Savings Deliverable Fuel Savings Other Savings Program # of Participants Annual Capacity (kw) Energy (MWh) (Therms) Oil (MMBTU) Propane (MMBTU) Water (Gallons) Summer Winter Annual Lifetime Annual Lifetime Annual Lifetime Annual Lifetime Annual Lifetime A - Residential 1,967,853 41,527 54, ,373 2,373,069 (1,833,802) (18,909,349) 148,167 3,532,428 (11,557) 38,394 44,933, ,744,502 A1 - Residential Whole House 736,472 20,769 28, , ,398 1,536 23, ,677 4,677,868 17, ,695 43,271, ,109,127 A1a - Residential New Construction 1, ,730 42,207 1,536 23, ,618 4, , A1b - Residential Multi-Family Retrofit 10, ,502 5,397 52, ,113 98, ,241,919 15,693,430 A1c - Residential Home Energy Services - Measures 11,951 6,417 8,243 40, , ,378 4,574,436 12, ,479 41,029, ,415,698 A1d - Residential Home Energy Services - RCS A1e - Residential Behavior/Feedback Program 712,112 13,094 17,937 83,934 83, A2 - Residential Products 1,231,381 20,757 26, ,516 1,816,671 (1,835,338) (18,932,389) (111,511) (1,145,440) (28,592) (294,301) 1,662,196 11,635,375 A2a - Residential Heating & Cooling Equipment 19, ,233 5,830 77,002 (7,490) (134,824) A2b - Residential Consumer Products 22,156 1, ,181 60,137 6,683 46, ,297 1,662,196 11,635,375 A2c - Residential Lighting 1,190,092 19,004 24, ,505 1,679,531 (1,834,530) (18,844,342) (111,511) (1,145,440) (28,777) (295,598) - - B - Low-Income 17,749 2,296 4,296 20, , ,220 47, , ,202,818 22,419,724 B1 - Low-Income Whole House 17,749 2,296 4,296 20, , ,220 47, , ,202,818 22,419,724 B1a - Low-Income Single Family Retrofit 5,200 1,303 1,331 7,873 76, ,220 42, , ,143 5,621,998 B1b - Low-Income Multi-Family Retrofit 12, ,965 12, , ,939 94, ,399,675 16,797,726 C - Commercial & Industrial 13,905 52,601 45, ,380 3,610,935 (1,597,334) (24,825,062) (80,622) (580,637) - - 8,098, ,133,326 C1 - C&I New Construction ,892 11,916 61, , ,240 3,290,665 (2,826) (41,525) C1a - C&I New Buildings & Major Renovations 299 5,632 4,402 34, ,152 99,824 1,739,757 (3,089) (45,999) C1b - C&I Initial Purchase & End of Useful Life 250 8,260 7,513 26, ,133 90,417 1,550, , C2 - C&I Retrofit 13,356 38,709 33, ,915 2,633,650 (1,787,574) (28,115,727) (77,796) (539,111) - - 8,098, ,133,326 C2a - C&I Existing Building Retrofit ,003 13, ,162 1,481,590 (1,219,479) (23,606,130) (66) (9,532) - - 8,098, ,133,326 C2b - C&I Small Business 1,925 6,819 6,535 41, ,204 (170,108) (1,701,082) (1,924) (19,239) C2c - C&I Multifamily Retrofit ,382 4,701 31,236 (22,171) (136,127) (2,620) 10, C2d - C&I Upstream Lighting 10,402 16,633 12,304 98, ,620 (375,816) (2,672,388) (73,185) (520,412) Grand Total 1,999,507 96, , ,901 6,170,857 (3,430,819) (43,732,190) 115,397 3,896,724 (11,538) 38,529 56,234, ,297, Net Savings Electric Savings Natural Gas Savings Deliverable Fuel Savings Other Savings Program # of Participants Annual Capacity (kw) Energy (MWh) (Therms) Oil (MMBTU) Propane (MMBTU) Water (Gallons) Summer Winter Annual Lifetime Annual Lifetime Annual Lifetime Annual Lifetime Annual Lifetime A - Residential 6,080, , ,702 1,011,655 6,969,703 (6,591,302) (55,515,492) 251,395 9,288,486 (8,281) 595, ,331,450 1,029,007,216 A1 - Residential Whole House 2,208,508 64,901 88, ,426 1,877,259 34, , ,682 13,151,358 64,516 1,274, ,942, ,283,072 A1a - Residential New Construction 7,485 3,025 2,138 11, ,778 17, , ,200 23, , A1b - Residential Multi-Family Retrofit 38,693 1,649 4,939 18, , , , ,741,689 61,191,824 A1c - Residential Home Energy Services - Measures 34,154 20,540 27, ,167 1,305,470 17, , ,348 12,922,195 40, , ,200, ,091,247 A1d - Residential Home Energy Services - RCS A1e - Residential Behavior/Feedback Program 2,128,176 39,687 54, , , A2 - Residential Products 3,871,634 73,290 85, ,228 5,092,444 (6,625,629) (56,139,587) (476,287) (3,862,872) (72,798) (678,806) 5,389,163 37,724,144 A2a - Residential Heating & Cooling Equipment 43,967 1,882 3,173 16, ,815 (26,718) (474,588) (397) (3,965) (56) (555) - - A2b - Residential Consumer Products 56,260 3,724 2,752 19, ,375 15, , , ,518 5,389,163 37,724,144 A2c - Residential Lighting 3,771,407 67,684 79, ,346 4,709,254 (6,614,854) (55,776,606) (476,326) (3,861,958) (73,530) (683,768) - - B - Low-Income 49,342 6,788 12,226 56, , , ,980 2,526, ,229 7,513,284 52,592,991 B1 - Low-Income Whole House 49,342 6,788 12,226 56, , , ,980 2,526, ,229 7,513,284 52,592,991 B1a - Low-Income Single Family Retrofit 16,568 3,792 3,823 22, , , ,101 2,337, ,229 1,779,763 12,458,342 B1b - Low-Income Multi-Family Retrofit 32,774 2,996 8,402 34, , , , ,733,521 40,134,648 C - Commercial & Industrial 41, , , ,949 10,942,536 (3,580,355) (49,710,111) (254,698) (1,875,798) ,924, ,690,385 C1 - C&I New Construction 2,006 34,014 29, ,916 2,588, ,862 5,893,613 (13,534) (196,389) ,630 6,488,157 C1a - C&I New Buildings & Major Renovations ,747 10,969 84,658 1,345, ,381 3,187,925 (10,145) (148,315) ,460 4,208,685 C1b - C&I Initial Purchase & End of Useful Life 1,188 20,267 18,243 79,258 1,243, ,481 2,705,688 (3,389) (48,074) ,170 2,279,472 C2 - C&I Retrofit 39, , , ,033 8,354,297 (3,913,217) (55,603,724) (241,164) (1,679,409) ,037, ,202,228 C2a - C&I Existing Building Retrofit 3,010 50,201 48, ,072 5,015,890 (2,220,569) (42,681,852) (18,392) (254,399) ,965, ,692,306 C2b - C&I Small Business 5,475 22,460 21, ,468 1,321,510 (557,615) (5,494,439) (6,272) (61,802) C2c - C&I Multifamily Retrofit 1, ,190 14,292 97,650 (43,695) (268,289) (4,821) 26, , ,922 C2d - C&I Upstream Lighting 30,356 49,917 36, ,200 1,919,246 (1,091,338) (7,159,143) (211,680) (1,389,303) Grand Total 6,171, , ,952 2,043,388 18,420,074 (10,170,941) (105,220,589) 124,676 9,939,496 (7,975) 601, ,769,219 1,312,290,592

23 Program Benefits, Plan Year Summary 2016 Planned vs. Evaluated National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 19 of Planned Benefits Electric Benefits Capacity Energy Program Electric Capacity Electric Energy Summer Generation Trans. Distrib. Total Capacity Benefits Electric Total Energy Benefits DRIPE DRIPE A - Residential $ 46,004,775 $ 3,815,944 $ 29,950,811 $ - $ 79,771,531 $ 182,148,742 $ 40,146,897 $ 222,295,638 A1 - Residential Whole House $ 15,663,268 $ 1,288,297 $ 10,111,662 $ - $ 27,063,227 $ 43,893,488 $ 12,042,924 $ 55,936,411 A1a - Residential New Construction $ 2,634,996 $ 177,888 $ 1,396,214 $ - $ 4,209,098 $ 3,087,357 $ 405,797 $ 3,493,154 A1b - Residential Multi-Family Retrofit $ 484,361 $ 42,372 $ 332,575 $ - $ 859,308 $ 3,807,675 $ 720,758 $ 4,528,434 A1c - Residential Home Energy Services - Measures $ 11,958,228 $ 912,011 $ 7,158,247 $ - $ 20,028,486 $ 30,718,791 $ 6,101,024 $ 36,819,815 A1d - Residential Home Energy Services - RCS $ - $ - $ - $ - $ - $ - $ - $ - A1e - Residential Behavior/Feedback Program $ 585,683 $ 156,026 $ 1,224,625 $ - $ 1,966,335 $ 6,279,665 $ 4,815,344 $ 11,095,009 A2 - Residential Products $ 30,341,507 $ 2,527,648 $ 19,839,150 $ - $ 52,708,304 $ 138,255,254 $ 28,103,973 $ 166,359,227 A2a - Residential Heating & Cooling Equipment $ 1,421,655 $ 104,439 $ 819,730 $ - $ 2,345,825 $ 5,686,247 $ 801,441 $ 6,487,688 A2b - Residential Consumer Products $ 1,173,178 $ 100,592 $ 789,532 $ - $ 2,063,301 $ 3,905,446 $ 880,175 $ 4,785,621 A2c - Residential Lighting $ 27,746,674 $ 2,322,616 $ 18,229,888 $ - $ 48,299,178 $ 128,663,561 $ 26,422,358 $ 155,085,919 B - Low-Income $ 3,537,307 $ 281,718 $ 2,211,167 $ - $ 6,030,192 $ 13,594,616 $ 2,776,669 $ 16,371,285 B1 - Low-Income Whole House $ 3,537,307 $ 281,718 $ 2,211,167 $ - $ 6,030,192 $ 13,594,616 $ 2,776,669 $ 16,371,285 B1a - Low-Income Single Family Retrofit $ 2,291,684 $ 177,091 $ 1,389,964 $ - $ 3,858,740 $ 5,722,575 $ 1,132,801 $ 6,855,376 B1b - Low-Income Multi-Family Retrofit $ 1,245,623 $ 104,627 $ 821,202 $ - $ 2,171,452 $ 7,872,041 $ 1,643,868 $ 9,515,909 C - Commercial & Industrial $ 79,630,368 $ 6,111,226 $ 47,966,157 $ - $ 133,707,752 $ 224,868,615 $ 38,034,781 $ 262,903,396 C1 - C&I New Construction $ 31,844,105 $ 2,229,109 $ 17,495,962 $ - $ 51,569,176 $ 64,460,642 $ 7,515,582 $ 71,976,224 C1a - C&I New Buildings & Major Renovations $ 12,222,418 $ 862,336 $ 6,768,357 $ - $ 19,853,112 $ 36,668,727 $ 4,205,250 $ 40,873,977 C1b - C&I Initial Purchase & End of Useful Life $ 19,621,686 $ 1,366,773 $ 10,727,605 $ - $ 31,716,064 $ 27,791,915 $ 3,310,332 $ 31,102,247 C2 - C&I Retrofit $ 47,786,264 $ 3,882,118 $ 30,470,195 $ - $ 82,138,576 $ 160,407,973 $ 30,519,199 $ 190,927,172 C2a - C&I Existing Building Retrofit $ 27,064,261 $ 2,022,388 $ 15,873,436 $ - $ 44,960,085 $ 94,694,503 $ 14,132,353 $ 108,826,856 C2b - C&I Small Business $ 9,622,380 $ 774,465 $ 6,078,671 $ - $ 16,475,516 $ 28,505,989 $ 5,399,267 $ 33,905,256 C2c - C&I Multifamily Retrofit $ 215,634 $ 20,093 $ 157,711 $ - $ 393,439 $ 2,059,561 $ 580,598 $ 2,640,158 C2d - C&I Upstream Lighting $ 10,883,988 $ 1,065,171 $ 8,360,377 $ - $ 20,309,537 $ 35,147,920 $ 10,406,981 $ 45,554,902 Grand Total $ 129,172,451 $ 10,208,889 $ 80,128,135 $ - $ 219,509,475 $ 420,611,972 $ 80,958,347 $ 501,570, Evaluated Benefits Electric Benefits Capacity Energy Program Electric Capacity Electric Energy Summer Generation Trans. Distrib. Total Capacity Benefits Electric Total Energy Benefits DRIPE DRIPE A - Residential $ 38,283,737 $ 3,583,240 $ 28,124,348 $ - $ 69,991,325 $ 153,056,365 $ 43,214,753 $ 196,271,118 A1 - Residential Whole House $ 14,521,404 $ 1,273,403 $ 9,994,762 $ - $ 25,789,569 $ 56,030,627 $ 14,952,483 $ 70,983,110 A1a - Residential New Construction $ 3,689,473 $ 259,781 $ 2,038,984 $ - $ 5,988,238 $ 5,300,628 $ 857,388 $ 6,158,016 A1b - Residential Multi-Family Retrofit $ 621,582 $ 60,082 $ 471,574 $ - $ 1,153,237 $ 5,069,470 $ 1,089,054 $ 6,158,524 A1c - Residential Home Energy Services - Measures $ 9,606,507 $ 792,677 $ 6,221,611 $ - $ 16,620,795 $ 39,079,157 $ 7,952,308 $ 47,031,465 A1d - Residential Home Energy Services - RCS $ - $ - $ - $ - $ - $ - $ - $ - A1e - Residential Behavior/Feedback Program $ 603,842 $ 160,863 $ 1,262,593 $ - $ 2,027,298 $ 6,581,371 $ 5,053,733 $ 11,635,105 A2 - Residential Products $ 23,762,334 $ 2,309,837 $ 18,129,586 $ - $ 44,201,756 $ 97,025,738 $ 28,262,269 $ 125,288,008 A2a - Residential Heating & Cooling Equipment $ 1,081,183 $ 78,924 $ 619,465 $ - $ 1,779,572 $ 4,788,511 $ 625,802 $ 5,414,313 A2b - Residential Consumer Products $ 1,914,288 $ 164,218 $ 1,288,925 $ - $ 3,367,431 $ 3,271,911 $ 720,454 $ 3,992,364 A2c - Residential Lighting $ 20,766,862 $ 2,066,695 $ 16,221,196 $ - $ 39,054,753 $ 88,965,317 $ 26,916,014 $ 115,881,331 B - Low-Income $ 3,020,633 $ 243,097 $ 1,908,032 $ - $ 5,171,762 $ 10,222,627 $ 2,141,776 $ 12,364,403 B1 - Low-Income Whole House $ 3,020,633 $ 243,097 $ 1,908,032 $ - $ 5,171,762 $ 10,222,627 $ 2,141,776 $ 12,364,403 B1a - Low-Income Single Family Retrofit $ 1,775,539 $ 139,635 $ 1,095,977 $ - $ 3,011,152 $ 4,602,252 $ 913,232 $ 5,515,484 B1b - Low-Income Multi-Family Retrofit $ 1,245,093 $ 103,462 $ 812,055 $ - $ 2,160,610 $ 5,620,375 $ 1,228,544 $ 6,848,918 C - Commercial & Industrial $ 92,983,803 $ 7,181,403 $ 56,365,822 $ - $ 156,531,028 $ 305,207,107 $ 49,554,491 $ 354,761,597 C1 - C&I New Construction $ 18,157,478 $ 1,279,380 $ 10,041,671 $ - $ 29,478,529 $ 54,491,543 $ 6,458,444 $ 60,949,987 C1a - C&I New Buildings & Major Renovations $ 7,033,031 $ 500,949 $ 3,931,880 $ - $ 11,465,861 $ 21,161,178 $ 2,638,458 $ 23,799,637 C1b - C&I Initial Purchase & End of Useful Life $ 11,124,447 $ 778,430 $ 6,109,790 $ - $ 18,012,668 $ 33,330,365 $ 3,819,985 $ 37,150,350 C2 - C&I Retrofit $ 74,826,325 $ 5,902,023 $ 46,324,151 $ - $ 127,052,499 $ 250,715,563 $ 43,096,047 $ 293,811,611 C2a - C&I Existing Building Retrofit $ 45,486,157 $ 3,347,036 $ 26,270,411 $ - $ 75,103,603 $ 167,406,740 $ 23,322,637 $ 190,729,378 C2b - C&I Small Business $ 15,005,961 $ 1,167,140 $ 9,160,717 $ - $ 25,333,818 $ 35,577,472 $ 6,023,009 $ 41,600,481 C2c - C&I Multifamily Retrofit $ 174,254 $ 17,458 $ 137,027 $ - $ 328,739 $ 2,493,768 $ 648,451 $ 3,142,219 C2d - C&I Upstream Lighting $ 14,159,954 $ 1,370,390 $ 10,755,996 $ - $ 26,286,340 $ 45,237,583 $ 13,101,950 $ 58,339,533 Grand Total $ 134,288,173 $ 11,007,740 $ 86,398,202 $ - $ 231,694,114 $ 468,486,099 $ 94,911,019 $ 563,397,118

24 Program Benefits, Plan Year Summary 2016 Planned vs. Evaluated National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 20 of Planned v. Evaluated Benefit Variances (%) Electric Benefits Capacity Energy Program Electric Capacity Electric Energy Summer Generation Trans. Distrib. Total Capacity Benefits Electric Total Energy Benefits DRIPE DRIPE A - Residential -17% -6% -6% -12% -16% 8% -12% A1 - Residential Whole House -7% -1% -1% -5% 28% 24% 27% A1a - Residential New Construction 40% 46% 46% 42% 72% 111% 76% A1b - Residential Multi-Family Retrofit 28% 42% 42% 34% 33% 51% 36% A1c - Residential Home Energy Services - Measures -20% -13% -13% -17% 27% 30% 28% A1d - Residential Home Energy Services - RCS A1e - Residential Behavior/Feedback Program 3% 3% 3% 3% 5% 5% 5% A2 - Residential Products -22% -9% -9% -16% -30% 1% -25% A2a - Residential Heating & Cooling Equipment -24% -24% -24% -24% -16% -22% -17% A2b - Residential Consumer Products 63% 63% 63% 63% -16% -18% -17% A2c - Residential Lighting -25% -11% -11% -19% -31% 2% -25% B - Low-Income -15% -14% -14% -14% -25% -23% -24% B1 - Low-Income Whole House -15% -14% -14% -14% -25% -23% -24% B1a - Low-Income Single Family Retrofit -23% -21% -21% -22% -20% -19% -20% B1b - Low-Income Multi-Family Retrofit 0% -1% -1% 0% -29% -25% -28% C - Commercial & Industrial 17% 18% 18% 17% 36% 30% 35% C1 - C&I New Construction -43% -43% -43% -43% -15% -14% -15% C1a - C&I New Buildings & Major Renovations -42% -42% -42% -42% -42% -37% -42% C1b - C&I Initial Purchase & End of Useful Life -43% -43% -43% -43% 20% 15% 19% C2 - C&I Retrofit 57% 52% 52% 55% 56% 41% 54% C2a - C&I Existing Building Retrofit 68% 65% 65% 67% 77% 65% 75% C2b - C&I Small Business 56% 51% 51% 54% 25% 12% 23% C2c - C&I Multifamily Retrofit -19% -13% -13% -16% 21% 12% 19% C2d - C&I Upstream Lighting 30% 29% 29% 29% 29% 26% 28% Grand Total 4% 8% 8% 6% 11% 17% 12% Notes Total Resource Benefits is the sum of electric benefits, natural gas benefits, and other resource benefits. The plan year variances provided above are intended to indicate the Program Administrator's performance in the plan year only. The variances used to determine significant variances are provided separately. The variances above and the significant variances use different calculations to determine variances on an annual basis and over the three-year term, respectively.

25 Program Benefits, Plan Year Summary 2016 Planned vs. Evaluated National Grid Program A - Residential A1 - Residential Whole House A1a - Residential New Construction A1b - Residential Multi-Family Retrofit A1c - Residential Home Energy Services - Measures A1d - Residential Home Energy Services - RCS A1e - Residential Behavior/Feedback Program A2 - Residential Products A2a - Residential Heating & Cooling Equipment A2b - Residential Consumer Products A2c - Residential Lighting B - Low-Income B1 - Low-Income Whole House B1a - Low-Income Single Family Retrofit B1b - Low-Income Multi-Family Retrofit C - Commercial & Industrial C1 - C&I New Construction C1a - C&I New Buildings & Major Renovations C1b - C&I Initial Purchase & End of Useful Life C2 - C&I Retrofit C2a - C&I Existing Building Retrofit C2b - C&I Small Business C2c - C&I Multifamily Retrofit C2d - C&I Upstream Lighting Grand Total Program A - Residential A1 - Residential Whole House A1a - Residential New Construction A1b - Residential Multi-Family Retrofit A1c - Residential Home Energy Services - Measures A1d - Residential Home Energy Services - RCS A1e - Residential Behavior/Feedback Program A2 - Residential Products A2a - Residential Heating & Cooling Equipment A2b - Residential Consumer Products A2c - Residential Lighting B - Low-Income B1 - Low-Income Whole House B1a - Low-Income Single Family Retrofit B1b - Low-Income Multi-Family Retrofit C - Commercial & Industrial C1 - C&I New Construction C1a - C&I New Buildings & Major Renovations C1b - C&I Initial Purchase & End of Useful Life C2 - C&I Retrofit C2a - C&I Existing Building Retrofit C2b - C&I Small Business C2c - C&I Multifamily Retrofit C2d - C&I Upstream Lighting Grand Total Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 21 of Planned Benefits Non-Electric Resource Benefits Total Resource Non-Electric, Resource Natural Gas Benefits Other Resource Benefits Benefits Non-Resource Total Benefits Benefits per Total Other Resource (Electric + Natural Gas Natural Gas DRIPE Total Gas Benefits Oil Propane Water Benefits Participant Benefits Non-Electric) $ (15,803,189) $ (3,052,013) $ (18,855,202) $ 66,717,542 $ 531,261 $ 3,783,271 $ 71,032,074 $ 354,244,042 $ 44,388,816 $ 398,632,857 $ $ 18,073 $ 2,477 $ 20,550 $ 89,379,210 $ 6,061,067 $ 3,703,902 $ 99,144,180 $ 182,164,369 $ 32,059,592 $ 214,223,960 $ $ 18,073 $ 2,477 $ 20,550 $ 96,810 $ 2,350,144 $ - $ 2,446,954 $ 10,169,756 $ 1,093,646 $ 11,263,402 $ 5, $ - $ - $ - $ 1,507,500 $ - $ 157,690 $ 1,665,190 $ 7,052,931 $ 1,687,920 $ 8,740,852 $ $ - $ - $ - $ 87,774,901 $ 3,710,923 $ 3,546,212 $ 95,032,036 $ 151,880,337 $ 29,278,025 $ 181,158,362 $ 13, $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 13,061,344 $ - $ 13,061,344 $ $ (15,821,262) $ (3,054,490) $ (18,875,752) $ (22,661,668) $ (5,529,806) $ 79,368 $ (28,112,106) $ 172,079,673 $ 12,329,224 $ 184,408,897 $ $ (139,992) $ (14,973) $ (154,966) $ - $ - $ - $ - $ 8,678,547 $ 457,497 $ 9,136,044 $ $ 23,799 $ 5,911 $ 29,710 $ - $ 22,147 $ 79,368 $ 101,515 $ 6,980,147 $ - $ 6,980,147 $ $ (15,705,068) $ (3,045,428) $ (18,750,496) $ (22,661,668) $ (5,551,953) $ - $ (28,213,621) $ 156,420,979 $ 11,871,727 $ 168,292,707 $ $ 1,670 $ 449 $ 2,120 $ 18,472,440 $ 2,438 $ 231,391 $ 18,706,269 $ 41,109,865 $ 16,436,813 $ 57,546,679 $ 2, $ 1,670 $ 449 $ 2,120 $ 18,472,440 $ 2,438 $ 231,391 $ 18,706,269 $ 41,109,865 $ 16,436,813 $ 57,546,679 $ 2, $ 1,670 $ 449 $ 2,120 $ 16,770,954 $ 2,438 $ 59,978 $ 16,833,369 $ 27,549,604 $ 8,688,049 $ 36,237,653 $ 5, $ - $ - $ - $ 1,701,486 $ - $ 171,413 $ 1,872,900 $ 13,560,261 $ 7,748,764 $ 21,309,025 $ 1, $ (7,151,723) $ (1,096,589) $ (8,248,312) $ (6,657,794) $ - $ 383,250 $ (6,274,544) $ 382,088,292 $ 54,666,792 $ 436,755,085 $ 32, $ 2,004,512 $ 248,153 $ 2,252,665 $ (751,373) $ - $ - $ (751,373) $ 125,046,692 $ - $ 125,046,692 $ 275, $ 986,934 $ 120,375 $ 1,107,309 $ (834,245) $ - $ - $ (834,245) $ 61,000,154 $ - $ 61,000,154 $ 258, $ 1,017,577 $ 127,778 $ 1,145,356 $ 82,872 $ - $ - $ 82,872 $ 64,046,539 $ - $ 64,046,539 $ 293, $ (9,156,235) $ (1,344,742) $ (10,500,977) $ (5,906,421) $ - $ 383,250 $ (5,523,171) $ 257,041,600 $ 54,666,792 $ 311,708,392 $ 22, $ (6,605,392) $ (686,033) $ (7,291,425) $ (203,787) $ - $ 383,250 $ 179,463 $ 146,674,978 $ 34,375,002 $ 181,049,980 $ 170, $ (1,213,360) $ (243,548) $ (1,456,908) $ (326,543) $ - $ - $ (326,543) $ 48,597,320 $ 11,704,863 $ 60,302,183 $ 26, $ (93,396) $ (29,121) $ (122,517) $ 268,440 $ - $ - $ 268,440 $ 3,179,520 $ 900,955 $ 4,080,475 $ 15, $ (1,244,086) $ (386,040) $ (1,630,127) $ (5,644,530) $ - $ - $ (5,644,530) $ 58,589,781 $ 7,685,973 $ 66,275,754 $ 7, $ (22,953,241) $ (4,148,153) $ (27,101,394) $ 78,532,188 $ 533,699 $ 4,397,912 $ 83,463,799 $ 777,442,199 $ 115,492,421 $ 892,934,621 $ Evaluated Benefits Non-Electric Resource Benefits Total Resource Non-Electric, Resource Natural Gas Benefits Other Resource Benefits Benefits Non-Resource Total Benefits Benefits per Total Other Resource (Electric + Natural Gas Natural Gas DRIPE Total Gas Benefits Oil Propane Water Benefits Participant Benefits Non-Electric) $ (13,385,735) $ (3,685,485) $ (17,071,220) $ 51,637,673 $ 10,230,992 $ 2,915,921 $ 64,784,586 $ 313,975,809 $ 47,587,824 $ 361,563,633 $ $ 483,154 $ 51,609 $ 534,763 $ 80,015,419 $ 11,632,301 $ 2,736,898 $ 94,384,618 $ 191,692,060 $ 35,510,941 $ 227,203,000 $ $ 227,721 $ 23,735 $ 251,456 $ 167,137 $ 6,207,858 $ - $ 6,374,995 $ 18,772,706 $ 6,123,993 $ 24,896,699 $ 4, $ - $ - $ - $ 549,315 $ - $ 322,979 $ 872,294 $ 8,184,056 $ 2,496,881 $ 10,680,937 $ $ 255,433 $ 27,873 $ 283,306 $ 79,298,967 $ 5,424,444 $ 2,413,918 $ 87,137,329 $ 151,072,895 $ 26,890,066 $ 177,962,961 $ 14, $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 13,662,403 $ - $ 13,662,403 $ $ (13,868,889) $ (3,737,094) $ (17,605,983) $ (28,377,746) $ (1,401,310) $ 179,024 $ (29,600,032) $ 122,283,749 $ 12,076,884 $ 134,360,633 $ $ (159,490) $ (17,524) $ (177,014) $ (76,356) $ (10,207) $ - $ (86,564) $ 6,930,307 $ 351,399 $ 7,281,706 $ 1, $ 20,620 $ 5,544 $ 26,164 $ 57,158 $ 48,701 $ 179,024 $ 284,882 $ 7,670,841 $ - $ 7,670,841 $ $ (13,730,018) $ (3,725,114) $ (17,455,132) $ (28,358,547) $ (1,439,803) $ - $ (29,798,350) $ 107,682,601 $ 11,725,485 $ 119,408,086 $ $ 432 $ 116 $ 548 $ 13,015,116 $ 93,486 $ 82,719 $ 13,191,322 $ 30,728,034 $ 20,713,309 $ 51,441,343 $ 2, $ 432 $ 116 $ 548 $ 13,015,116 $ 93,486 $ 82,719 $ 13,191,322 $ 30,728,034 $ 20,713,309 $ 51,441,343 $ 2, $ 432 $ 116 $ 548 $ 13,015,116 $ 93,486 $ 12,955 $ 13,121,558 $ 21,648,742 $ 16,920,517 $ 38,569,259 $ 3, $ - $ - $ - $ - $ - $ 69,764 $ 69,764 $ 9,079,292 $ 3,792,792 $ 12,872,084 $ 1, $ (11,097,249) $ (1,774,764) $ (12,872,013) $ (14,455,980) $ - $ 165,053 $ (14,290,927) $ 484,129,685 $ 83,912,464 $ 568,042,149 $ 34, $ (282,348) $ (37,637) $ (319,985) $ (2,088,759) $ - $ 67,858 $ (2,020,901) $ 88,087,629 $ 6,912,197 $ 94,999,827 $ 92, $ (44,820) $ (4,230) $ (49,050) $ (1,047,255) $ - $ 44,042 $ (1,003,212) $ 34,213,235 $ 2,961,330 $ 37,174,565 $ 134, $ (237,528) $ (33,408) $ (270,935) $ (1,041,505) $ - $ 23,816 $ (1,017,689) $ 53,874,394 $ 3,950,867 $ 57,825,261 $ 77, $ (10,814,901) $ (1,737,127) $ (12,552,028) $ (12,367,220) $ - $ 97,195 $ (12,270,026) $ 396,042,056 $ 77,000,266 $ 473,042,322 $ 29, $ (7,507,536) $ (898,895) $ (8,406,431) $ (4,238,266) $ - $ 91,754 $ (4,146,512) $ 253,280,039 $ 48,753,886 $ 302,033,925 $ 191, $ (1,575,105) $ (326,857) $ (1,901,962) $ (417,414) $ - $ - $ (417,414) $ 64,614,922 $ 14,089,347 $ 78,704,269 $ 38, $ - $ - $ - $ 104,866 $ - $ 5,440 $ 110,306 $ 3,581,264 $ 187,434 $ 3,768,698 $ 5, $ (1,732,261) $ (511,374) $ (2,243,635) $ (7,816,406) $ - $ - $ (7,816,406) $ 74,565,831 $ 13,969,599 $ 88,535,430 $ 7, $ (24,482,552) $ (5,460,133) $ (29,942,685) $ 50,196,809 $ 10,324,478 $ 3,163,693 $ 63,684,980 $ 828,833,528 $ 152,213,597 $ 981,047,125 $

26 Program Benefits, Plan Year Summary 2016 Planned vs. Evaluated National Grid Program A - Residential A1 - Residential Whole House A1a - Residential New Construction A1b - Residential Multi-Family Retrofit A1c - Residential Home Energy Services - Measures A1d - Residential Home Energy Services - RCS A1e - Residential Behavior/Feedback Program A2 - Residential Products A2a - Residential Heating & Cooling Equipment A2b - Residential Consumer Products A2c - Residential Lighting B - Low-Income B1 - Low-Income Whole House B1a - Low-Income Single Family Retrofit B1b - Low-Income Multi-Family Retrofit C - Commercial & Industrial C1 - C&I New Construction C1a - C&I New Buildings & Major Renovations C1b - C&I Initial Purchase & End of Useful Life C2 - C&I Retrofit C2a - C&I Existing Building Retrofit C2b - C&I Small Business C2c - C&I Multifamily Retrofit C2d - C&I Upstream Lighting Grand Total Natural Gas Benefits 2016 Planned v. Evaluated Benefit Variances (%) Non-Electric Resource Benefits Other Resource Benefits Natural Gas Natural Gas DRIPE Total Gas Benefits Oil Propane Water Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 22 of 38 Total Other Resource Benefits Total Resource Benefits (Electric + Non-Electric, Non-Resource Benefits Total Benefits Resource Benefits per Participant Non-Electric) -15% 21% -9% -23% 1826% -23% -9% -11% 7% -9% -16% 2573% 1983% 2502% -10% 92% -26% -5% 5% 11% 6% 5% 1160% 858% 1124% 73% 164% 161% 85% 460% 121% -14% -64% 105% -48% 16% 48% 22% -35% -10% 46% -32% -8% -1% -8% -2% 11% 5% 5% 6% -12% 22% -7% 25% -75% 126% 5% -29% -2% -27% -34% 14% 17% 14% -20% -23% -20% 147% -13% -6% -12% 120% 126% 181% 10% 10% 89% -13% 22% -7% 25% -74% 6% -31% -1% -29% -37% -74% -74% -74% -30% 3735% -64% -29% -25% 26% -11% -4% -74% -74% -74% -30% 3735% -64% -29% -25% 26% -11% -4% -74% -74% -74% -22% 3735% -78% -22% -21% 95% 6% -34% -100% -59% -96% -33% -51% -40% 9% 55% 62% 56% 117% -57% 128% 27% 53% 30% 4% -114% -115% -114% 178% 169% -30% -24% -66% -105% -104% -104% 26% 20% -44% -39% -48% -123% -126% -124% -1357% -1328% -16% -10% -74% 18% 29% 20% 109% -75% 122% 54% 41% 52% 30% 14% 31% 15% 1980% -76% -2411% 73% 42% 67% 12% 30% 34% 31% 28% 28% 33% 20% 31% 47% -100% -100% -100% -61% -59% 13% -79% -8% -64% 39% 32% 38% 38% 38% 27% 82% 34% 10% 7% 32% 10% -36% 1835% -28% -24% 7% 32% 10% 2%

27 Program Benefits, Three-Year Total Benefits National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 23 of Evaluated Benefits Electric Benefits Capacity Energy Program Electric Capacity Electric Energy Summer Generation Trans. Distrib. Total Capacity Benefits Electric Total Energy Benefits DRIPE DRIPE A - Residential $ 38,283,737 $ 3,583,240 $ 28,124,348 $ - $ 69,991,325 $ 153,056,365 $ 43,214,753 $ 196,271,118 A1 - Residential Whole House $ 14,521,404 $ 1,273,403 $ 9,994,762 $ - $ 25,789,569 $ 56,030,627 $ 14,952,483 $ 70,983,110 A1a - Residential New Construction $ 3,689,473 $ 259,781 $ 2,038,984 $ - $ 5,988,238 $ 5,300,628 $ 857,388 $ 6,158,016 A1b - Residential Multi-Family Retrofit $ 621,582 $ 60,082 $ 471,574 $ - $ 1,153,237 $ 5,069,470 $ 1,089,054 $ 6,158,524 A1c - Residential Home Energy Services - Measures $ 9,606,507 $ 792,677 $ 6,221,611 $ - $ 16,620,795 $ 39,079,157 $ 7,952,308 $ 47,031,465 A1d - Residential Home Energy Services - RCS $ - $ - $ - $ - $ - $ - $ - $ - A1e - Residential Behavior/Feedback Program $ 603,842 $ 160,863 $ 1,262,593 $ - $ 2,027,298 $ 6,581,371 $ 5,053,733 $ 11,635,105 A2 - Residential Products $ 23,762,334 $ 2,309,837 $ 18,129,586 $ - $ 44,201,756 $ 97,025,738 $ 28,262,269 $ 125,288,008 A2a - Residential Heating & Cooling Equipment $ 1,081,183 $ 78,924 $ 619,465 $ - $ 1,779,572 $ 4,788,511 $ 625,802 $ 5,414,313 A2b - Residential Consumer Products $ 1,914,288 $ 164,218 $ 1,288,925 $ - $ 3,367,431 $ 3,271,911 $ 720,454 $ 3,992,364 A2c - Residential Lighting $ 20,766,862 $ 2,066,695 $ 16,221,196 $ - $ 39,054,753 $ 88,965,317 $ 26,916,014 $ 115,881,331 B - Low-Income $ 3,020,633 $ 243,097 $ 1,908,032 $ - $ 5,171,762 $ 10,222,627 $ 2,141,776 $ 12,364,403 B1 - Low-Income Whole House $ 3,020,633 $ 243,097 $ 1,908,032 $ - $ 5,171,762 $ 10,222,627 $ 2,141,776 $ 12,364,403 B1a - Low-Income Single Family Retrofit $ 1,775,539 $ 139,635 $ 1,095,977 $ - $ 3,011,152 $ 4,602,252 $ 913,232 $ 5,515,484 B1b - Low-Income Multi-Family Retrofit $ 1,245,093 $ 103,462 $ 812,055 $ - $ 2,160,610 $ 5,620,375 $ 1,228,544 $ 6,848,918 C - Commercial & Industrial $ 92,983,803 $ 7,181,403 $ 56,365,822 $ - $ 156,531,028 $ 305,207,107 $ 49,554,491 $ 354,761,597 C1 - C&I New Construction $ 18,157,478 $ 1,279,380 $ 10,041,671 $ - $ 29,478,529 $ 54,491,543 $ 6,458,444 $ 60,949,987 C1a - C&I New Buildings & Major Renovations $ 7,033,031 $ 500,949 $ 3,931,880 $ - $ 11,465,861 $ 21,161,178 $ 2,638,458 $ 23,799,637 C1b - C&I Initial Purchase & End of Useful Life $ 11,124,447 $ 778,430 $ 6,109,790 $ - $ 18,012,668 $ 33,330,365 $ 3,819,985 $ 37,150,350 C2 - C&I Retrofit $ 74,826,325 $ 5,902,023 $ 46,324,151 $ - $ 127,052,499 $ 250,715,563 $ 43,096,047 $ 293,811,611 C2a - C&I Existing Building Retrofit $ 45,486,157 $ 3,347,036 $ 26,270,411 $ - $ 75,103,603 $ 167,406,740 $ 23,322,637 $ 190,729,378 C2b - C&I Small Business $ 15,005,961 $ 1,167,140 $ 9,160,717 $ - $ 25,333,818 $ 35,577,472 $ 6,023,009 $ 41,600,481 C2c - C&I Multifamily Retrofit $ 174,254 $ 17,458 $ 137,027 $ - $ 328,739 $ 2,493,768 $ 648,451 $ 3,142,219 C2d - C&I Upstream Lighting $ 14,159,954 $ 1,370,390 $ 10,755,996 $ - $ 26,286,340 $ 45,237,583 $ 13,101,950 $ 58,339,533 Grand Total $ 134,288,173 $ 11,007,740 $ 86,398,202 $ - $ 231,694,114 $ 468,486,099 $ 94,911,019 $ 563,397, Planned Benefits Electric Benefits Capacity Energy Program Electric Capacity Electric Energy Summer Generation Trans. Distrib. Total Capacity Benefits Electric Total Energy Benefits DRIPE DRIPE A - Residential $ 52,608,966 $ 3,852,140 $ 30,234,909 $ - $ 86,696,015 $ 186,383,932 $ 23,385,817 $ 209,769,750 A1 - Residential Whole House $ 17,278,347 $ 1,274,881 $ 10,006,361 $ - $ 28,559,589 $ 43,078,750 $ 7,598,991 $ 50,677,741 A1a - Residential New Construction $ 2,709,341 $ 174,050 $ 1,366,095 $ - $ 4,249,486 $ 2,911,035 $ 215,574 $ 3,126,608 A1b - Residential Multi-Family Retrofit $ 549,457 $ 42,210 $ 331,297 $ - $ 922,963 $ 3,895,045 $ 429,678 $ 4,324,722 A1c - Residential Home Energy Services - Measures $ 12,901,656 $ 902,590 $ 7,084,299 $ - $ 20,888,544 $ 30,080,778 $ 3,461,622 $ 33,542,401 A1d - Residential Home Energy Services - RCS $ - $ - $ - $ - $ - $ - $ - $ - A1e - Residential Behavior/Feedback Program $ 1,117,894 $ 156,032 $ 1,224,669 $ - $ 2,498,595 $ 6,191,892 $ 3,492,117 $ 9,684,010 A2 - Residential Products $ 35,330,619 $ 2,577,260 $ 20,228,548 $ - $ 58,136,426 $ 143,305,182 $ 15,786,827 $ 159,092,009 A2a - Residential Heating & Cooling Equipment $ 1,553,821 $ 106,046 $ 832,341 $ - $ 2,492,208 $ 5,862,531 $ 482,834 $ 6,345,365 A2b - Residential Consumer Products $ 1,357,483 $ 102,968 $ 808,178 $ - $ 2,268,629 $ 4,040,437 $ 521,054 $ 4,561,491 A2c - Residential Lighting $ 32,419,315 $ 2,368,246 $ 18,588,028 $ - $ 53,375,589 $ 133,402,215 $ 14,782,939 $ 148,185,154 B - Low-Income $ 3,925,064 $ 282,403 $ 2,216,539 $ - $ 6,424,006 $ 13,147,124 $ 1,585,033 $ 14,732,157 B1 - Low-Income Whole House $ 3,925,064 $ 282,403 $ 2,216,539 $ - $ 6,424,006 $ 13,147,124 $ 1,585,033 $ 14,732,157 B1a - Low-Income Single Family Retrofit $ 2,479,955 $ 175,061 $ 1,374,026 $ - $ 4,029,042 $ 5,705,477 $ 645,565 $ 6,351,043 B1b - Low-Income Multi-Family Retrofit $ 1,445,109 $ 107,342 $ 842,514 $ - $ 2,394,964 $ 7,441,646 $ 939,467 $ 8,381,114 C - Commercial & Industrial $ 91,893,431 $ 6,481,353 $ 50,871,227 $ - $ 149,246,012 $ 241,851,776 $ 24,071,009 $ 265,922,785 C1 - C&I New Construction $ 37,364,132 $ 2,467,637 $ 19,368,135 $ - $ 59,199,904 $ 72,696,092 $ 4,999,497 $ 77,695,589 C1a - C&I New Buildings & Major Renovations $ 14,371,589 $ 953,861 $ 7,486,721 $ - $ 22,812,171 $ 41,106,679 $ 2,779,992 $ 43,886,671 C1b - C&I Initial Purchase & End of Useful Life $ 22,992,543 $ 1,513,776 $ 11,881,413 $ - $ 36,387,733 $ 31,589,413 $ 2,219,505 $ 33,808,918 C2 - C&I Retrofit $ 54,529,299 $ 4,013,716 $ 31,503,093 $ - $ 90,046,108 $ 169,155,684 $ 19,071,512 $ 188,227,196 C2a - C&I Existing Building Retrofit $ 29,820,024 $ 2,057,848 $ 16,151,757 $ - $ 48,029,628 $ 98,022,861 $ 8,476,944 $ 106,499,805 C2b - C&I Small Business $ 10,871,194 $ 790,530 $ 6,204,761 $ - $ 17,866,486 $ 29,506,692 $ 3,227,982 $ 32,734,674 C2c - C&I Multifamily Retrofit $ 257,647 $ 20,559 $ 161,363 $ - $ 439,569 $ 2,106,973 $ 342,250 $ 2,449,223 C2d - C&I Upstream Lighting $ 13,580,434 $ 1,144,779 $ 8,985,212 $ - $ 23,710,425 $ 39,519,158 $ 7,024,336 $ 46,543,495 Grand Total $ 148,427,461 $ 10,615,896 $ 83,322,675 $ - $ 242,366,032 $ 441,382,832 $ 49,041,860 $ 490,424,691

28 Program Benefits, Three-Year Total Benefits National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 24 of Planned Benefits Electric Benefits Capacity Energy Program Electric Capacity Electric Energy Summer Generation Trans. Distrib. Total Capacity Benefits Electric Total Energy Benefits DRIPE DRIPE A - Residential $ 55,256,769 $ 3,754,815 $ 29,471,013 $ - $ 88,482,596 $ 184,285,193 $ 10,181,985 $ 194,467,178 A1 - Residential Whole House $ 18,309,911 $ 1,273,300 $ 9,993,954 $ - $ 29,577,165 $ 42,390,642 $ 3,269,695 $ 45,660,337 A1a - Residential New Construction $ 3,142,650 $ 195,040 $ 1,530,840 $ - $ 4,868,531 $ 3,611,959 $ 121,369 $ 3,733,328 A1b - Residential Multi-Family Retrofit $ 606,353 $ 42,517 $ 333,712 $ - $ 982,583 $ 4,035,389 $ 213,633 $ 4,249,022 A1c - Residential Home Energy Services - Measures $ 13,377,804 $ 879,706 $ 6,904,689 $ - $ 21,162,198 $ 29,184,828 $ 1,559,789 $ 30,744,617 A1d - Residential Home Energy Services - RCS $ - $ - $ - $ - $ - $ - $ - $ - A1e - Residential Behavior/Feedback Program $ 1,183,104 $ 156,037 $ 1,224,713 $ - $ 2,563,854 $ 5,558,466 $ 1,374,904 $ 6,933,370 A2 - Residential Products $ 36,946,858 $ 2,481,515 $ 19,477,059 $ - $ 58,905,431 $ 141,894,552 $ 6,912,290 $ 148,806,841 A2a - Residential Heating & Cooling Equipment $ 1,661,280 $ 107,747 $ 845,694 $ - $ 2,614,721 $ 6,071,203 $ 253,020 $ 6,324,223 A2b - Residential Consumer Products $ 1,516,807 $ 105,758 $ 830,082 $ - $ 2,452,648 $ 4,220,403 $ 248,821 $ 4,469,224 A2c - Residential Lighting $ 33,768,771 $ 2,268,009 $ 17,801,283 $ - $ 53,838,063 $ 131,602,946 $ 6,410,449 $ 138,013,395 B - Low-Income $ 4,240,484 $ 284,234 $ 2,230,912 $ - $ 6,755,630 $ 13,852,844 $ 765,951 $ 14,618,794 B1 - Low-Income Whole House $ 4,240,484 $ 284,234 $ 2,230,912 $ - $ 6,755,630 $ 13,852,844 $ 765,951 $ 14,618,794 B1a - Low-Income Single Family Retrofit $ 2,617,208 $ 173,290 $ 1,360,132 $ - $ 4,150,630 $ 5,732,833 $ 301,297 $ 6,034,131 B1b - Low-Income Multi-Family Retrofit $ 1,623,276 $ 110,944 $ 870,780 $ - $ 2,605,000 $ 8,120,010 $ 464,653 $ 8,584,664 C - Commercial & Industrial $ 108,418,743 $ 7,145,760 $ 56,086,067 $ - $ 171,650,571 $ 279,091,350 $ 12,803,953 $ 291,895,303 C1 - C&I New Construction $ 41,281,302 $ 2,615,630 $ 20,529,712 $ - $ 64,426,644 $ 80,513,861 $ 2,822,830 $ 83,336,692 C1a - C&I New Buildings & Major Renovations $ 16,126,115 $ 1,025,299 $ 8,047,429 $ - $ 25,198,843 $ 46,754,527 $ 1,612,521 $ 48,367,048 C1b - C&I Initial Purchase & End of Useful Life $ 25,155,187 $ 1,590,331 $ 12,482,283 $ - $ 39,227,801 $ 33,759,335 $ 1,210,310 $ 34,969,644 C2 - C&I Retrofit $ 67,137,441 $ 4,530,130 $ 35,556,356 $ - $ 107,223,927 $ 198,577,489 $ 9,981,123 $ 208,558,611 C2a - C&I Existing Building Retrofit $ 35,656,470 $ 2,315,777 $ 18,176,206 $ - $ 56,148,453 $ 115,593,820 $ 4,761,573 $ 120,355,393 C2b - C&I Small Business $ 11,882,963 $ 806,931 $ 6,333,487 $ - $ 19,023,381 $ 30,628,920 $ 1,601,874 $ 32,230,794 C2c - C&I Multifamily Retrofit $ 291,133 $ 21,038 $ 165,125 $ - $ 477,296 $ 2,173,604 $ 164,773 $ 2,338,377 C2d - C&I Upstream Lighting $ 19,306,875 $ 1,386,385 $ 10,881,538 $ - $ 31,574,797 $ 50,181,144 $ 3,452,903 $ 53,634,047 Grand Total $ 167,915,996 $ 11,184,809 $ 87,787,992 $ - $ 266,888,797 $ 477,229,387 $ 23,751,889 $ 500,981, Benefits Electric Benefits Capacity Energy Program Electric Capacity Electric Energy Summer Generation Trans. Distrib. Total Capacity Benefits Electric Total Energy Benefits DRIPE DRIPE A - Residential $ 146,149,472 $ 11,190,195 $ 87,830,269 $ - $ 245,169,936 $ 523,725,491 $ 76,782,555 $ 600,508,046 A1 - Residential Whole House $ 50,109,661 $ 3,821,584 $ 29,995,077 $ - $ 83,926,323 $ 141,500,018 $ 25,821,169 $ 167,321,187 A1a - Residential New Construction $ 9,541,463 $ 628,871 $ 4,935,920 $ - $ 15,106,255 $ 11,823,621 $ 1,194,331 $ 13,017,952 A1b - Residential Multi-Family Retrofit $ 1,777,392 $ 144,809 $ 1,136,583 $ - $ 3,058,784 $ 12,999,904 $ 1,732,365 $ 14,732,268 A1c - Residential Home Energy Services - Measures $ 35,885,967 $ 2,574,973 $ 20,210,598 $ - $ 58,671,538 $ 98,344,764 $ 12,973,719 $ 111,318,482 A1d - Residential Home Energy Services - RCS $ - $ - $ - $ - $ - $ - $ - $ - A1e - Residential Behavior/Feedback Program $ 2,904,839 $ 472,932 $ 3,711,975 $ - $ 7,089,747 $ 18,331,730 $ 9,920,755 $ 28,252,485 A2 - Residential Products $ 96,039,810 $ 7,368,611 $ 57,835,192 $ - $ 161,243,613 $ 382,225,473 $ 50,961,386 $ 433,186,858 A2a - Residential Heating & Cooling Equipment $ 4,296,284 $ 292,718 $ 2,297,499 $ - $ 6,886,501 $ 16,722,245 $ 1,361,656 $ 18,083,901 A2b - Residential Consumer Products $ 4,788,579 $ 372,944 $ 2,927,185 $ - $ 8,088,708 $ 11,532,750 $ 1,490,329 $ 13,023,079 A2c - Residential Lighting $ 86,954,947 $ 6,702,950 $ 52,610,508 $ - $ 146,268,404 $ 353,970,478 $ 48,109,401 $ 402,079,879 B - Low-Income $ 11,186,181 $ 809,733 $ 6,355,484 $ - $ 18,351,398 $ 37,222,594 $ 4,492,759 $ 41,715,354 B1 - Low-Income Whole House $ 11,186,181 $ 809,733 $ 6,355,484 $ - $ 18,351,398 $ 37,222,594 $ 4,492,759 $ 41,715,354 B1a - Low-Income Single Family Retrofit $ 6,872,703 $ 487,986 $ 3,830,134 $ - $ 11,190,823 $ 16,040,563 $ 1,860,095 $ 17,900,658 B1b - Low-Income Multi-Family Retrofit $ 4,313,478 $ 321,747 $ 2,525,349 $ - $ 7,160,575 $ 21,182,031 $ 2,632,664 $ 23,814,696 C - Commercial & Industrial $ 293,295,978 $ 20,808,516 $ 163,323,117 $ - $ 477,427,611 $ 826,150,233 $ 86,429,453 $ 912,579,686 C1 - C&I New Construction $ 96,802,912 $ 6,362,647 $ 49,939,517 $ - $ 153,105,076 $ 207,701,497 $ 14,280,771 $ 221,982,268 C1a - C&I New Buildings & Major Renovations $ 37,530,735 $ 2,480,109 $ 19,466,030 $ - $ 59,476,875 $ 109,022,384 $ 7,030,971 $ 116,053,355 C1b - C&I Initial Purchase & End of Useful Life $ 59,272,177 $ 3,882,537 $ 30,473,487 $ - $ 93,628,201 $ 98,679,113 $ 7,249,800 $ 105,928,913 C2 - C&I Retrofit $ 196,493,065 $ 14,445,870 $ 113,383,600 $ - $ 324,322,535 $ 618,448,736 $ 72,148,682 $ 690,597,418 C2a - C&I Existing Building Retrofit $ 110,962,651 $ 7,720,660 $ 60,598,374 $ - $ 179,281,685 $ 381,023,422 $ 36,561,155 $ 417,584,576 C2b - C&I Small Business $ 37,760,118 $ 2,764,601 $ 21,698,965 $ - $ 62,223,685 $ 95,713,085 $ 10,852,864 $ 106,565,949 C2c - C&I Multifamily Retrofit $ 723,033 $ 59,055 $ 463,515 $ - $ 1,245,603 $ 6,774,344 $ 1,155,474 $ 7,929,819 C2d - C&I Upstream Lighting $ 47,047,263 $ 3,901,554 $ 30,622,745 $ - $ 81,571,562 $ 134,937,885 $ 23,579,189 $ 158,517,075 Grand Total $ 450,631,630 $ 32,808,445 $ 257,508,869 $ - $ 740,948,944 $ 1,387,098,318 $ 167,704,768 $ 1,554,803,085 Notes Total Resource Benefits is the sum of electric benefits, natural gas benefits, and other resource benefits.

29 Program Benefits, Three-Year Total Benefits National Grid Program A - Residential A1 - Residential Whole House A1a - Residential New Construction A1b - Residential Multi-Family Retrofit A1c - Residential Home Energy Services - Measures A1d - Residential Home Energy Services - RCS A1e - Residential Behavior/Feedback Program A2 - Residential Products A2a - Residential Heating & Cooling Equipment A2b - Residential Consumer Products A2c - Residential Lighting B - Low-Income B1 - Low-Income Whole House B1a - Low-Income Single Family Retrofit B1b - Low-Income Multi-Family Retrofit C - Commercial & Industrial C1 - C&I New Construction C1a - C&I New Buildings & Major Renovations C1b - C&I Initial Purchase & End of Useful Life C2 - C&I Retrofit C2a - C&I Existing Building Retrofit C2b - C&I Small Business C2c - C&I Multifamily Retrofit C2d - C&I Upstream Lighting Grand Total Program A - Residential A1 - Residential Whole House A1a - Residential New Construction A1b - Residential Multi-Family Retrofit A1c - Residential Home Energy Services - Measures A1d - Residential Home Energy Services - RCS A1e - Residential Behavior/Feedback Program A2 - Residential Products A2a - Residential Heating & Cooling Equipment A2b - Residential Consumer Products A2c - Residential Lighting B - Low-Income B1 - Low-Income Whole House B1a - Low-Income Single Family Retrofit B1b - Low-Income Multi-Family Retrofit C - Commercial & Industrial C1 - C&I New Construction C1a - C&I New Buildings & Major Renovations C1b - C&I Initial Purchase & End of Useful Life C2 - C&I Retrofit C2a - C&I Existing Building Retrofit C2b - C&I Small Business C2c - C&I Multifamily Retrofit C2d - C&I Upstream Lighting Grand Total Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 25 of Evaluated Benefits Non-Electric Resource Benefits Total Resource Non-Electric, Resource Natural Gas Benefits Other Resource Benefits Benefits Non-Resource Total Benefits Benefits per Total Other Resource (Electric + Natural Gas Natural Gas DRIPE Total Gas Benefits Oil Propane Water Benefits Participant Benefits Non-Electric) $ (13,385,735) $ (3,685,485) $ (17,071,220) $ 51,637,673 $ 10,230,992 $ 2,915,921 $ 64,784,586 $ 313,975,809 $ 47,587,824 $ 361,563,633 $ $ 483,154 $ 51,609 $ 534,763 $ 80,015,419 $ 11,632,301 $ 2,736,898 $ 94,384,618 $ 191,692,060 $ 35,510,941 $ 227,203,000 $ $ 227,721 $ 23,735 $ 251,456 $ 167,137 $ 6,207,858 $ - $ 6,374,995 $ 18,772,706 $ 6,123,993 $ 24,896,699 $ 4, $ - $ - $ - $ 549,315 $ - $ 322,979 $ 872,294 $ 8,184,056 $ 2,496,881 $ 10,680,937 $ $ 255,433 $ 27,873 $ 283,306 $ 79,298,967 $ 5,424,444 $ 2,413,918 $ 87,137,329 $ 151,072,895 $ 26,890,066 $ 177,962,961 $ 14, $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 13,662,403 $ - $ 13,662,403 $ $ (13,868,889) $ (3,737,094) $ (17,605,983) $ (28,377,746) $ (1,401,310) $ 179,024 $ (29,600,032) $ 122,283,749 $ 12,076,884 $ 134,360,633 $ $ (159,490) $ (17,524) $ (177,014) $ (76,356) $ (10,207) $ - $ (86,564) $ 6,930,307 $ 351,399 $ 7,281,706 $ 1, $ 20,620 $ 5,544 $ 26,164 $ 57,158 $ 48,701 $ 179,024 $ 284,882 $ 7,670,841 $ - $ 7,670,841 $ $ (13,730,018) $ (3,725,114) $ (17,455,132) $ (28,358,547) $ (1,439,803) $ - $ (29,798,350) $ 107,682,601 $ 11,725,485 $ 119,408,086 $ $ 432 $ 116 $ 548 $ 13,015,116 $ 93,486 $ 82,719 $ 13,191,322 $ 30,728,034 $ 20,713,309 $ 51,441,343 $ 2, $ 432 $ 116 $ 548 $ 13,015,116 $ 93,486 $ 82,719 $ 13,191,322 $ 30,728,034 $ 20,713,309 $ 51,441,343 $ 2, $ 432 $ 116 $ 548 $ 13,015,116 $ 93,486 $ 12,955 $ 13,121,558 $ 21,648,742 $ 16,920,517 $ 38,569,259 $ 3, $ - $ - $ - $ - $ - $ 69,764 $ 69,764 $ 9,079,292 $ 3,792,792 $ 12,872,084 $ 1, $ (11,097,249) $ (1,774,764) $ (12,872,013) $ (14,455,980) $ - $ 165,053 $ (14,290,927) $ 484,129,685 $ 83,912,464 $ 568,042,149 $ 34, $ (282,348) $ (37,637) $ (319,985) $ (2,088,759) $ - $ 67,858 $ (2,020,901) $ 88,087,629 $ 6,912,197 $ 94,999,827 $ 92, $ (44,820) $ (4,230) $ (49,050) $ (1,047,255) $ - $ 44,042 $ (1,003,212) $ 34,213,235 $ 2,961,330 $ 37,174,565 $ 134, $ (237,528) $ (33,408) $ (270,935) $ (1,041,505) $ - $ 23,816 $ (1,017,689) $ 53,874,394 $ 3,950,867 $ 57,825,261 $ 77, $ (10,814,901) $ (1,737,127) $ (12,552,028) $ (12,367,220) $ - $ 97,195 $ (12,270,026) $ 396,042,056 $ 77,000,266 $ 473,042,322 $ 29, $ (7,507,536) $ (898,895) $ (8,406,431) $ (4,238,266) $ - $ 91,754 $ (4,146,512) $ 253,280,039 $ 48,753,886 $ 302,033,925 $ 191, $ (1,575,105) $ (326,857) $ (1,901,962) $ (417,414) $ - $ - $ (417,414) $ 64,614,922 $ 14,089,347 $ 78,704,269 $ 38, $ - $ - $ - $ 104,866 $ - $ 5,440 $ 110,306 $ 3,581,264 $ 187,434 $ 3,768,698 $ 5, $ (1,732,261) $ (511,374) $ (2,243,635) $ (7,816,406) $ - $ - $ (7,816,406) $ 74,565,831 $ 13,969,599 $ 88,535,430 $ 7, $ (24,482,552) $ (5,460,133) $ (29,942,685) $ 50,196,809 $ 10,324,478 $ 3,163,693 $ 63,684,980 $ 828,833,528 $ 152,213,597 $ 981,047,125 $ Planned Benefits Non-Electric Resource Benefits Total Resource Non-Electric, Resource Natural Gas Benefits Other Resource Benefits Benefits Non-Resource Total Benefits Benefits per Total Other Resource (Electric + Natural Gas Natural Gas DRIPE Total Gas Benefits Oil Propane Water Benefits Participant Benefits Non-Electric) $ (16,496,283) $ (1,772,429) $ (18,268,712) $ 71,135,312 $ 509,475 $ 3,958,150 $ 75,602,937 $ 353,799,989 $ 45,159,314 $ 398,959,304 $ $ 18,462 $ 1,581 $ 20,043 $ 94,995,483 $ 6,303,496 $ 3,858,845 $ 105,157,825 $ 184,415,197 $ 32,762,359 $ 217,177,556 $ $ 18,462 $ 1,581 $ 20,043 $ 98,573 $ 2,382,144 $ - $ 2,480,717 $ 9,876,855 $ 1,079,715 $ 10,956,570 $ 5, $ - $ - $ - $ 1,787,797 $ - $ 162,421 $ 1,950,218 $ 7,197,903 $ 1,756,364 $ 8,954,267 $ $ - $ - $ - $ 93,109,113 $ 3,921,352 $ 3,696,424 $ 100,726,889 $ 155,157,834 $ 29,926,279 $ 185,084,114 $ 13, $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 12,182,604 $ - $ 12,182,604 $ $ (16,514,746) $ (1,774,010) $ (18,288,755) $ (23,860,171) $ (5,794,021) $ 99,305 $ (29,554,887) $ 169,384,793 $ 12,396,955 $ 181,781,748 $ $ (128,427) $ (8,660) $ (137,087) $ - $ - $ - $ - $ 8,700,486 $ 481,282 $ 9,181,768 $ $ 30,505 $ 4,303 $ 34,808 $ - $ 28,581 $ 99,305 $ 127,885 $ 6,992,813 $ - $ 6,992,813 $ $ (16,416,824) $ (1,769,653) $ (18,186,476) $ (23,860,171) $ (5,822,602) $ - $ (29,682,773) $ 153,691,494 $ 11,915,673 $ 165,607,167 $ $ 1,714 $ 264 $ 1,978 $ 19,698,268 $ 2,514 $ 239,183 $ 19,939,965 $ 41,098,105 $ 16,488,094 $ 57,586,199 $ 2, $ 1,714 $ 264 $ 1,978 $ 19,698,268 $ 2,514 $ 239,183 $ 19,939,965 $ 41,098,105 $ 16,488,094 $ 57,586,199 $ 2, $ 1,714 $ 264 $ 1,978 $ 17,720,477 $ 2,514 $ 59,978 $ 17,782,969 $ 28,165,031 $ 8,839,521 $ 37,004,552 $ 5, $ - $ - $ - $ 1,977,791 $ - $ 179,205 $ 2,156,996 $ 12,933,074 $ 7,648,573 $ 20,581,647 $ 1, $ (8,407,424) $ (805,054) $ (9,212,478) $ (8,331,181) $ - $ 433,428 $ (7,897,752) $ 398,058,567 $ 57,264,526 $ 455,323,093 $ 28, $ 2,318,199 $ 183,491 $ 2,501,690 $ (755,131) $ - $ - $ (755,131) $ 138,642,052 $ - $ 138,642,052 $ 274, $ 1,170,205 $ 91,763 $ 1,261,967 $ (839,819) $ - $ - $ (839,819) $ 67,120,990 $ - $ 67,120,990 $ 254, $ 1,147,995 $ 91,728 $ 1,239,723 $ 84,689 $ - $ - $ 84,689 $ 71,521,063 $ - $ 71,521,063 $ 297, $ (10,725,624) $ (988,544) $ (11,714,168) $ (7,576,050) $ - $ 433,428 $ (7,142,622) $ 259,416,514 $ 57,264,526 $ 316,681,040 $ 19, $ (7,766,524) $ (536,789) $ (8,303,314) $ (195,557) $ - $ 433,428 $ 237,871 $ 146,463,991 $ 34,002,777 $ 180,466,768 $ 171, $ (1,267,162) $ (151,130) $ (1,418,292) $ (342,609) $ - $ - $ (342,609) $ 48,840,259 $ 11,957,461 $ 60,797,720 $ 25, $ (98,957) $ (17,439) $ (116,396) $ 252,655 $ - $ - $ 252,655 $ 3,025,051 $ 921,463 $ 3,946,514 $ 15, $ (1,592,980) $ (283,187) $ (1,876,167) $ (7,290,539) $ - $ - $ (7,290,539) $ 61,087,214 $ 10,382,825 $ 71,470,039 $ 5, $ (24,901,994) $ (2,577,218) $ (27,479,213) $ 82,502,399 $ 511,990 $ 4,630,761 $ 87,645,150 $ 792,956,661 $ 118,911,934 $ 911,868,595 $

30 Program Benefits, Three-Year Total Benefits National Grid Program A - Residential A1 - Residential Whole House A1a - Residential New Construction A1b - Residential Multi-Family Retrofit A1c - Residential Home Energy Services - Measures A1d - Residential Home Energy Services - RCS A1e - Residential Behavior/Feedback Program A2 - Residential Products A2a - Residential Heating & Cooling Equipment A2b - Residential Consumer Products A2c - Residential Lighting B - Low-Income B1 - Low-Income Whole House B1a - Low-Income Single Family Retrofit B1b - Low-Income Multi-Family Retrofit C - Commercial & Industrial C1 - C&I New Construction C1a - C&I New Buildings & Major Renovations C1b - C&I Initial Purchase & End of Useful Life C2 - C&I Retrofit C2a - C&I Existing Building Retrofit C2b - C&I Small Business C2c - C&I Multifamily Retrofit C2d - C&I Upstream Lighting Grand Total Program A - Residential A1 - Residential Whole House A1a - Residential New Construction A1b - Residential Multi-Family Retrofit A1c - Residential Home Energy Services - Measures A1d - Residential Home Energy Services - RCS A1e - Residential Behavior/Feedback Program A2 - Residential Products A2a - Residential Heating & Cooling Equipment A2b - Residential Consumer Products A2c - Residential Lighting B - Low-Income B1 - Low-Income Whole House B1a - Low-Income Single Family Retrofit B1b - Low-Income Multi-Family Retrofit C - Commercial & Industrial C1 - C&I New Construction C1a - C&I New Buildings & Major Renovations C1b - C&I Initial Purchase & End of Useful Life C2 - C&I Retrofit C2a - C&I Existing Building Retrofit C2b - C&I Small Business C2c - C&I Multifamily Retrofit C2d - C&I Upstream Lighting Grand Total Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 26 of Planned Benefits Non-Electric Resource Benefits Total Resource Non-Electric, Resource Natural Gas Benefits Other Resource Benefits Benefits Non-Resource Total Benefits Benefits per Total Other Resource (Electric + Natural Gas Natural Gas DRIPE Total Gas Benefits Oil Propane Water Benefits Participant Benefits Non-Electric) $ (16,024,279) $ (997,129) $ (17,021,409) $ 75,695,330 $ 818,768 $ 4,063,085 $ 80,577,182 $ 346,505,548 $ 44,831,136 $ 391,336,685 $ $ 18,739 $ 1,066 $ 19,805 $ 99,117,602 $ 6,462,431 $ 3,938,954 $ 109,518,988 $ 184,776,294 $ 32,976,356 $ 217,752,650 $ $ 18,739 $ 1,066 $ 19,805 $ 100,146 $ 2,405,530 $ - $ 2,505,676 $ 11,127,339 $ 1,064,159 $ 12,191,498 $ 6, $ - $ - $ - $ 2,074,011 $ - $ 167,424 $ 2,241,435 $ 7,473,040 $ 1,825,843 $ 9,298,883 $ $ - $ - $ - $ 96,943,445 $ 4,056,901 $ 3,771,531 $ 104,771,876 $ 156,678,691 $ 30,086,354 $ 186,765,045 $ 13, $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 9,497,224 $ - $ 9,497,224 $ $ (16,043,018) $ (998,195) $ (17,041,213) $ (23,422,273) $ (5,643,663) $ 124,131 $ (28,941,805) $ 161,729,254 $ 11,854,781 $ 173,584,035 $ $ (117,187) $ (5,306) $ (122,493) $ - $ - $ - $ - $ 8,816,450 $ 506,085 $ 9,322,535 $ $ 38,560 $ 3,160 $ 41,720 $ - $ 24,625 $ 124,131 $ 148,756 $ 7,112,347 $ - $ 7,112,347 $ $ (15,964,390) $ (996,049) $ (16,960,440) $ (23,422,273) $ (5,668,289) $ - $ (29,090,561) $ 145,800,457 $ 11,348,696 $ 157,149,152 $ $ 1,735 $ 158 $ 1,893 $ 20,028,989 $ 2,558 $ 239,183 $ 20,270,729 $ 41,647,047 $ 16,693,574 $ 58,340,621 $ 2, $ 1,735 $ 158 $ 1,893 $ 20,028,989 $ 2,558 $ 239,183 $ 20,270,729 $ 41,647,047 $ 16,693,574 $ 58,340,621 $ 2, $ 1,735 $ 158 $ 1,893 $ 18,017,777 $ 2,558 $ 59,978 $ 18,080,312 $ 28,266,966 $ 8,804,508 $ 37,071,474 $ 5, $ - $ - $ - $ 2,011,212 $ - $ 179,205 $ 2,190,417 $ 13,380,081 $ 7,889,066 $ 21,269,147 $ 1, $ (19,830,879) $ (1,135,965) $ (20,966,845) $ (10,657,392) $ - $ 483,498 $ (10,173,894) $ 432,405,136 $ 53,638,399 $ 486,043,535 $ 31, $ 2,639,199 $ 142,694 $ 2,781,894 $ (790,988) $ - $ - $ (790,988) $ 149,754,241 $ - $ 149,754,241 $ 272, $ 1,396,477 $ 75,157 $ 1,471,634 $ (877,229) $ - $ - $ (877,229) $ 74,160,295 $ - $ 74,160,295 $ 248, $ 1,242,722 $ 67,537 $ 1,310,260 $ 86,241 $ - $ - $ 86,241 $ 75,593,946 $ - $ 75,593,946 $ 302, $ (22,470,079) $ (1,278,660) $ (23,748,738) $ (9,866,403) $ - $ 483,498 $ (9,382,906) $ 282,650,895 $ 53,638,399 $ 336,289,294 $ 21, $ (19,009,934) $ (983,414) $ (19,993,348) $ (188,384) $ - $ 483,498 $ 295,113 $ 156,805,612 $ 31,278,167 $ 188,083,778 $ 189, $ (1,309,198) $ (97,180) $ (1,406,378) $ (357,337) $ - $ - $ (357,337) $ 49,490,460 $ 12,215,574 $ 61,706,034 $ 25, $ (103,068) $ (10,538) $ (113,606) $ 238,019 $ - $ - $ 238,019 $ 2,940,085 $ 942,586 $ 3,882,672 $ 14, $ (2,047,879) $ (187,528) $ (2,235,406) $ (9,558,701) $ - $ - $ (9,558,701) $ 73,414,737 $ 9,202,072 $ 82,616,809 $ 7, $ (35,853,423) $ (2,132,937) $ (37,986,360) $ 85,066,927 $ 821,325 $ 4,785,766 $ 90,674,018 $ 820,557,731 $ 115,163,109 $ 935,720,840 $ Benefits Non-Electric Resource Benefits Total Resource Non-Electric, Resource Natural Gas Benefits Other Resource Benefits Benefits Non-Resource Total Benefits Benefits per Total Other Resource (Electric + Natural Gas Natural Gas DRIPE Total Gas Benefits Oil Propane Water Benefits Participant Benefits Non-Electric) $ (45,906,298) $ (6,455,043) $ (52,361,341) $ 198,468,315 $ 11,559,234 $ 10,937,156 $ 220,964,706 $ 1,014,281,346 $ 137,578,275 $ 1,151,859,621 $ $ 520,355 $ 54,256 $ 574,611 $ 274,128,504 $ 24,398,229 $ 10,534,697 $ 309,061,430 $ 560,883,551 $ 101,249,655 $ 662,133,206 $ 254 $ 264,922 $ 26,382 $ 291,304 $ 365,856 $ 10,995,532 $ - $ 11,361,389 $ 39,776,900 $ 8,267,867 $ 48,044,767 $ 5,314 $ - $ - $ - $ 4,411,123 $ - $ 652,824 $ 5,063,947 $ 22,854,999 $ 6,079,088 $ 28,934,087 $ 591 $ 255,433 $ 27,873 $ 283,306 $ 269,351,524 $ 13,402,697 $ 9,881,873 $ 292,636,094 $ 462,909,421 $ 86,902,699 $ 549,812,120 $ 13,554 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 35,342,231 $ - $ 35,342,231 $ 17 $ (46,426,653) $ (6,509,299) $ (52,935,952) $ (75,660,189) $ (12,838,994) $ 402,459 $ (88,096,724) $ 453,397,796 $ 36,328,620 $ 489,726,415 $ 117 $ (405,105) $ (31,490) $ (436,595) $ (76,356) $ (10,207) $ - $ (86,564) $ 24,447,243 $ 1,338,766 $ 25,786,008 $ 556 $ 89,684 $ 13,007 $ 102,691 $ 57,158 $ 101,906 $ 402,459 $ 561,523 $ 21,776,002 $ - $ 21,776,002 $ 387 $ (46,111,232) $ (6,490,816) $ (52,602,048) $ (75,640,991) $ (12,930,694) $ - $ (88,571,684) $ 407,174,551 $ 34,989,854 $ 442,164,405 $ 108 $ 3,881 $ 538 $ 4,419 $ 52,742,373 $ 98,558 $ 561,084 $ 53,402,015 $ 113,473,186 $ 53,894,977 $ 167,368,163 $ 2,300 $ 3,881 $ 538 $ 4,419 $ 52,742,373 $ 98,558 $ 561,084 $ 53,402,015 $ 113,473,186 $ 53,894,977 $ 167,368,163 $ 2,300 $ 3,881 $ 538 $ 4,419 $ 48,753,370 $ 98,558 $ 132,911 $ 48,984,839 $ 78,080,739 $ 34,564,547 $ 112,645,286 $ 4,713 $ - $ - $ - $ 3,989,003 $ - $ 428,174 $ 4,417,176 $ 35,392,447 $ 19,330,431 $ 54,722,877 $ 1,080 $ (39,335,552) $ (3,715,783) $ (43,051,335) $ (33,444,552) $ - $ 1,081,979 $ (32,362,573) $ 1,314,593,388 $ 194,815,388 $ 1,509,408,776 $ 31,390 $ 4,675,051 $ 288,548 $ 4,963,599 $ (3,634,878) $ - $ 67,858 $ (3,567,020) $ 376,483,922 $ 6,912,197 $ 383,396,120 $ 187,701 $ 2,521,861 $ 162,690 $ 2,684,551 $ (2,764,303) $ - $ 44,042 $ (2,720,261) $ 175,494,520 $ 2,961,330 $ 178,455,850 $ 214,526 $ 2,153,190 $ 125,858 $ 2,279,048 $ (870,575) $ - $ 23,816 $ (846,759) $ 200,989,403 $ 3,950,867 $ 204,940,270 $ 169,224 $ (44,010,603) $ (4,004,331) $ (48,014,934) $ (29,809,674) $ - $ 1,014,121 $ (28,795,553) $ 938,109,465 $ 187,903,191 $ 1,126,012,656 $ 23,527 $ (34,283,994) $ (2,419,098) $ (36,703,092) $ (4,622,208) $ - $ 1,008,681 $ (3,613,527) $ 556,549,642 $ 114,034,829 $ 670,584,471 $ 184,920 $ (4,151,465) $ (575,167) $ (4,726,632) $ (1,117,360) $ - $ - $ (1,117,360) $ 162,945,641 $ 38,262,382 $ 201,208,024 $ 29,762 $ (202,025) $ (27,977) $ (230,002) $ 595,540 $ - $ 5,440 $ 600,980 $ 9,546,400 $ 2,051,484 $ 11,597,883 $ 9,250 $ (5,373,119) $ (982,089) $ (6,355,208) $ (24,665,646) $ - $ - $ (24,665,646) $ 209,067,783 $ 33,554,496 $ 242,622,279 $ 6,887 $ (85,237,969) $ (10,170,288) $ (95,408,257) $ 217,766,136 $ 11,657,793 $ 12,580,219 $ 242,004,148 $ 2,442,347,920 $ 386,288,640 $ 2,828,636,560 $ 396

31 Cost-Effectiveness, Plan Year Summary 2016 Planned vs. Evaluated National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 27 of 38 Program Total Program Costs Performance Incentive Participant Costs Total TRC Test Costs A - Residential ,899, ,632, ,228,251 6,732,064 40,663, ,733,232 A1 - Residential Whole House ,010, ,223,960 76,754,143 3,496,082 20,575, ,213,335 A1a - Residential New Construction ,131,995 11,263,402 3,041, ,568 3,868,536 7,131,407 A1b - Residential Multi-Family Retrofit 0.89 (1,105,530) 8,740,852 10,218,336 81,810 (653,555) 9,846,382 A1c - Residential Home Energy Services - Measures ,281, ,158,362 51,463,519 3,044,843 17,360,370 72,876,988 A1d - Residential Home Energy Services - RCS 0.00 (5,872,408) - 5,872, ,872,408 A1e - Residential Behavior/Feedback Program ,575,195 13,061,344 6,158, ,862-6,486,149 A2 - Residential Products ,496, ,408,897 36,866,184 3,235,982 20,088,449 60,911,973 A2a - Residential Heating & Cooling Equipment 1.00 (371) 9,136,044 5,202,345 97,389 3,734,935 9,136,415 A2b - Residential Consumer Products ,434,976 6,980,147 3,325,564 99,453 1,057,325 4,545,171 A2c - Residential Lighting ,062, ,292,707 28,338,276 3,039,139 15,296,189 47,230,387 A3 - Residential Hard-to-Measure 0.00 (11,607,924) - 11,607, ,607,924 B - Low-Income ,505,670 57,546,679 32,544, ,218-34,041,009 B1 - Low-Income Whole House ,254,060 57,546,679 31,795, ,218-33,292,619 B1a - Low-Income Single Family Retrofit ,870,666 36,237,653 16,455, ,140-17,366,987 B1b - Low-Income Multi-Family Retrofit ,383,394 21,309,025 15,340, ,078-15,925,632 B2 - Low-Income Hard-to-Measure 0.00 (748,390) - 748, ,390 C - Commercial & Industrial ,642, ,755, ,663,272 7,423,817 58,856, ,113,011 C1 - C&I New Construction ,836, ,046,692 25,658,942 2,308,911 7,767,855 36,209,914 C1a - C&I New Buildings & Major Renovations ,357,362 61,000,154 12,869,915 1,115,588 4,426,600 18,642,792 C1b - C&I Initial Purchase & End of Useful Life ,479,416 64,046,539 12,789,027 1,193,324 3,341,255 17,567,122 C2 - C&I Retrofit ,076, ,708,392 90,733,262 5,114,906 51,088, ,632,029 C2a - C&I Existing Building Retrofit ,149, ,049,980 53,845,425 2,800,011 44,253, ,900,914 C2b - C&I Small Business ,437,209 60,302,183 19,855,505 1,021,220 4,605,872 25,864,974 C2c - C&I Multifamily Retrofit 0.63 (2,361,428) 4,080,475 6,884,791 17,613 (584,301) 6,441,903 C2d - C&I Upstream Lighting ,851,517 66,275,754 10,147,541 1,276,062 2,813,400 14,424,237 C3 - C&I Hard-to-Measure 0.00 (2,271,068) - 2,271, ,271,068 Grand Total ,047, ,934, ,435,867 15,030,099 99,520, ,887,252 Program Benefit-Cost Ratio Benefit-Cost Ratio 2016 Planned Total Resource Cost Test (2016$) Net Benefits Total TRC Test Benefits 2016 Evaluated Total Resource Cost Test (2016$) Net Benefits Total TRC Test Benefits Total Program Costs Performance Incentive Participant Costs Total TRC Test Costs A - Residential ,808, ,563, ,228,657 6,118,799 49,062, ,755,504 A1 - Residential Whole House ,011, ,203,000 71,929,116 3,909,603 19,135,733 95,191,100 A1a - Residential New Construction ,950,911 24,896,699 4,995, ,617 12,597,527 17,945,788 A1b - Residential Multi-Family Retrofit 0.91 (1,109,555) 10,680,937 13,251, ,703 (1,601,654) 11,790,492 A1c - Residential Home Energy Services - Measures ,291, ,962,961 41,173,069 3,233,713 8,139,860 52,671,635 A1d - Residential Home Energy Services - RCS 0.00 (6,424,279) - 6,392, ,424,279 A1e - Residential Behavior/Feedback Program ,303,497 13,662,403 6,116, ,570-6,358,906 A2 - Residential Products ,303, ,360,633 29,803,434 2,209,196 29,926,563 62,057,087 A2a - Residential Heating & Cooling Equipment 0.93 (586,080) 7,281,706 4,944,865 76,835 2,826,699 7,867,785 A2b - Residential Consumer Products ,275,780 7,670,841 2,993, , ,310 3,395,061 A2c - Residential Lighting ,613, ,408,086 21,864,732 2,004,968 26,856,554 50,794,241 A3 - Residential Hard-to-Measure 0.00 (9,507,317) - 9,496, ,507,317 B - Low-Income ,356,903 51,441,343 27,202, ,565-28,084,440 B1 - Low-Income Whole House ,820,888 51,441,343 26,739, ,565-27,620,455 B1a - Low-Income Single Family Retrofit ,685,140 38,569,259 14,178, ,846-14,884,119 B1b - Low-Income Multi-Family Retrofit ,748 12,872,084 12,561, ,719-12,736,336 B2 - Low-Income Hard-to-Measure 0.00 (463,984) - 463, ,984 C - Commercial & Industrial ,926, ,042, ,683,867 9,835,413 81,328, ,115,808 C1 - C&I New Construction ,079,946 94,999,827 18,774,253 1,749,641 5,036,247 25,919,881 C1a - C&I New Buildings & Major Renovations ,271,969 37,174,565 7,054, ,216 1,981,727 9,902,596 C1b - C&I Initial Purchase & End of Useful Life ,807,977 57,825,261 11,720,107 1,062,425 3,054,520 16,017,284 C2 - C&I Retrofit ,184, ,042, ,579,369 8,085,773 76,292, ,857,754 C2a - C&I Existing Building Retrofit ,916, ,033,925 66,298,636 4,968,667 66,128, ,117,368 C2b - C&I Small Business ,385,304 78,704,269 22,370,569 1,355,213 6,488,313 30,318,965 C2c - C&I Multifamily Retrofit 0.55 (3,082,436) 3,768,698 7,608,977 39,767 (823,402) 6,851,134 C2d - C&I Upstream Lighting ,965,143 88,535,430 9,301,188 1,722,126 4,498,525 15,570,287 C3 - C&I Hard-to-Measure 0.00 (1,338,174) - 1,330, ,338,174 Grand Total ,091, ,047, ,114,980 16,756, ,390, ,955,753 Costs Costs

32 Cost-Effectiveness, Plan Year Summary 2016 Planned vs. Evaluated National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 28 of 38 Program 2016 Planned v. Evaluated Total Resource Cost Test (2016$) Variances (%) Benefit-Cost Ratio Net Benefits Total TRC Test Benefits Total Program Costs Performance Incentive Participant Costs Total TRC Test Costs A - Residential -5% -13% -9% -11% -9% 21% -5% A1 - Residential Whole House 14% 18% 6% -6% 12% -7% -7% A1a - Residential New Construction -12% 68% 121% 64% 109% 226% 152% A1b - Residential Multi-Family Retrofit 2% 0% 22% 30% 38% 145% 20% A1c - Residential Home Energy Services - Measures 36% 16% -2% -20% 6% -53% -28% A1d - Residential Home Energy Services - RCS 9% 9% 9% A1e - Residential Behavior/Feedback Program 7% 11% 5% -1% 8% -2% A2 - Residential Products -28% -41% -27% -19% -32% 49% 2% A2a - Residential Heating & Cooling Equipment -7% % -20% -5% -21% -24% -14% A2b - Residential Consumer Products 47% 76% 10% -10% 28% -77% -25% A2c - Residential Lighting -34% -43% -29% -23% -34% 76% 8% A3 - Residential Hard-to-Measure -18% -18% -18% B - Low-Income 8% -1% -11% -16% -8% -17% B1 - Low-Income Whole House 8% -2% -11% -16% -8% -17% B1a - Low-Income Single Family Retrofit 24% 26% 6% -14% 13% -14% B1b - Low-Income Multi-Family Retrofit -24% -97% -40% -18% -51% -20% B2 - Low-Income Hard-to-Measure -38% -38% -38% C - Commercial & Industrial 12% 40% 30% 6% 32% 38% 17% C1 - C&I New Construction 6% -22% -24% -27% -24% -35% -28% C1a - C&I New Buildings & Major Renovations 15% -36% -39% -45% -38% -55% -47% C1b - C&I Initial Purchase & End of Useful Life -1% -10% -10% -8% -11% -9% -9% C2 - C&I Retrofit 18% 73% 52% 16% 58% 49% 28% C2a - C&I Existing Building Retrofit 23% 107% 67% 23% 77% 49% 36% C2b - C&I Small Business 11% 41% 31% 13% 33% 41% 17% C2c - C&I Multifamily Retrofit -13% 31% -8% 11% 126% 41% 6% C2d - C&I Upstream Lighting 24% 41% 34% -8% 35% 60% 8% C3 - C&I Hard-to-Measure -41% -41% -41% Grand Total 5% 14% 10% -4% 11% 31% 4% Notes The Green Communities Act requires that energy efficiency programs be cost-effective. G.L. c. 25, 21(a), 21(b)(3). If a core initiative is not cost-effective, the Program Administrator has provided an explanation in its report filing. The plan year variances provided above are intended to indicate the Program Administrator's performance in the plan year only. The variances used to determine significant variances are provided separately. The variances above and the significant variances use different calculations to determine variances on an annual basis and over the three-year term, respectively. * Prior to October 2016, the Company recovered other energy efficiency-related labor benefits through the Company s base distribution rates. These energy efficiency related labor benefits are included in this column and are included in the Company s Total Resource Costs for the purposes of determining cost-effectiveness. However, these costs are excluded from the Company s energy efficiency expenditures pursuant to the Department s finding in D.P.U , at , 171. The Company transferred these costs from its base distribution rates to the EES in order for the EES to uniformly and appropriately include the same costs as the other Massachusetts Program Administrators, including the Company s gas affiliates with the Department s approval of the Company s Second Amended Compliance Filing on February 17, Beginning in October 2016, all energy efficiency related labor benefits are collected through the EES and will be included in the Company s total expenditures. Costs

33 Cost-Effectiveness, Three-Year Total Total Resource Cost Test (2016$) National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 29 of 38 Program Total Program Costs Performance Incentive Participant Costs Total TRC Test Costs A - Residential ,808, ,563, ,228,657 6,118,799 49,062, ,755,504 A1 - Residential Whole House ,011, ,203,000 71,929,116 3,909,603 19,135,733 95,191,100 A1a - Residential New Construction ,950,911 24,896,699 4,995, ,617 12,597,527 17,945,788 A1b - Residential Multi-Family Retrofit 0.91 (1,109,555) 10,680,937 13,251, ,703 (1,601,654) 11,790,492 A1c - Residential Home Energy Services - Measures ,291, ,962,961 41,173,069 3,233,713 8,139,860 52,671,635 A1d - Residential Home Energy Services - RCS 0.00 (6,424,279) - 6,392, ,424,279 A1e - Residential Behavior/Feedback Program ,303,497 13,662,403 6,116, ,570-6,358,906 A2 - Residential Products ,303, ,360,633 29,803,434 2,209,196 29,926,563 62,057,087 A2a - Residential Heating & Cooling Equipment 0.93 (586,080) 7,281,706 4,944,865 76,835 2,826,699 7,867,785 A2b - Residential Consumer Products ,275,780 7,670,841 2,993, , ,310 3,395,061 A2c - Residential Lighting ,613, ,408,086 21,864,732 2,004,968 26,856,554 50,794,241 A3 - Residential Hard-to-Measure 0.00 (9,507,317) - 9,496, ,507,317 B - Low-Income ,356,903 51,441,343 27,202, ,565-28,084,440 B1 - Low-Income Whole House ,820,888 51,441,343 26,739, ,565-27,620,455 B1a - Low-Income Single Family Retrofit ,685,140 38,569,259 14,178, ,846-14,884,119 B1b - Low-Income Multi-Family Retrofit ,748 12,872,084 12,561, ,719-12,736,336 B2 - Low-Income Hard-to-Measure 0.00 (463,984) - 463, ,984 C - Commercial & Industrial ,926, ,042, ,683,867 9,835,413 81,328, ,115,808 C1 - C&I New Construction ,079,946 94,999,827 18,774,253 1,749,641 5,036,247 25,919,881 C1a - C&I New Buildings & Major Renovations ,271,969 37,174,565 7,054, ,216 1,981,727 9,902,596 C1b - C&I Initial Purchase & End of Useful Life ,807,977 57,825,261 11,720,107 1,062,425 3,054,520 16,017,284 C2 - C&I Retrofit ,184, ,042, ,579,369 8,085,773 76,292, ,857,754 C2a - C&I Existing Building Retrofit ,916, ,033,925 66,298,636 4,968,667 66,128, ,117,368 C2b - C&I Small Business ,385,304 78,704,269 22,370,569 1,355,213 6,488,313 30,318,965 C2c - C&I Multifamily Retrofit 0.55 (3,082,436) 3,768,698 7,608,977 39,767 (823,402) 6,851,134 C2d - C&I Upstream Lighting ,965,143 88,535,430 9,301,188 1,722,126 4,498,525 15,570,287 C3 - C&I Hard-to-Measure 0.00 (1,338,174) - 1,330, ,338,174 Grand Total ,091, ,047, ,114,980 16,756, ,390, ,955,753 Program Benefit-Cost Ratio Benefit-Cost Ratio 2016 Evaluated Total Resource Cost Test (2016$) Net Benefits Total TRC Test Benefits 2017 Planned Total Resource Cost Test (2016$) Net Benefits Total TRC Test Benefits Total Program Costs Performance Incentive Participant Costs Total TRC Test Costs A - Residential ,623, ,959, ,752,434 6,710,349 39,753, ,335,348 A1 - Residential Whole House ,752, ,177,556 78,427,128 3,513,835 23,089, ,424,850 A1a - Residential New Construction ,042,313 10,956,570 2,970, ,316 3,726,630 6,914,257 A1b - Residential Multi-Family Retrofit 0.90 (964,166) 8,954,267 10,289,161 85,551 (656,967) 9,918,433 A1c - Residential Home Energy Services - Measures ,755, ,084,114 53,215,387 3,079,759 20,020,240 77,328,166 A1d - Residential Home Energy Services - RCS 0.00 (5,956,246) - 5,956, ,956,246 A1e - Residential Behavior/Feedback Program ,874,858 12,182,604 5,996, ,208-6,307,747 A2 - Residential Products ,551, ,781,748 38,645,313 3,196,514 16,664,084 59,230,505 A2a - Residential Heating & Cooling Equipment ,121 9,181,768 5,309,179 97,983 3,662,282 9,171,647 A2b - Residential Consumer Products ,481,005 6,992,813 3,295, ,026 1,053,504 4,511,808 A2c - Residential Lighting ,060, ,607,167 30,040,967 2,998,505 11,948,297 45,547,051 A3 - Residential Hard-to-Measure 0.00 (11,679,993) - 11,679, ,679,993 B - Low-Income ,019,343 57,586,199 32,061, ,327-33,566,856 B1 - Low-Income Whole House ,753,641 57,586,199 31,326, ,327-32,832,558 B1a - Low-Income Single Family Retrofit ,672,734 37,004,552 16,402, ,188-17,331,818 B1b - Low-Income Multi-Family Retrofit ,080,906 20,581,647 14,924, ,139-15,500,740 B2 - Low-Income Hard-to-Measure 0.00 (734,298) - 734, ,298 C - Commercial & Industrial ,244, ,323, ,886,628 7,838,962 59,174, ,078,979 C1 - C&I New Construction ,350, ,642,052 27,676,392 2,570,287 8,568,700 39,291,712 C1a - C&I New Buildings & Major Renovations ,852,392 67,120,990 13,917,036 1,230,668 4,889,171 20,268,598 C1b - C&I Initial Purchase & End of Useful Life ,497,949 71,521,063 13,759,357 1,339,619 3,679,529 19,023,114 C2 - C&I Retrofit ,101, ,681,040 87,002,410 5,268,675 50,605, ,579,441 C2a - C&I Existing Building Retrofit ,154, ,466,768 52,233,111 2,816,596 43,255,873 99,311,859 C2b - C&I Small Business ,912,105 60,797,720 19,880,788 1,032,057 4,588,678 25,885,615 C2c - C&I Multifamily Retrofit 0.61 (2,502,766) 3,946,514 6,898,991 14,609 (588,676) 6,449,280 C2d - C&I Upstream Lighting ,537,352 71,470,039 7,989,520 1,405,413 3,349,678 12,932,687 C3 - C&I Hard-to-Measure 0.00 (2,207,826) - 2,207, ,207,826 Grand Total ,887, ,868, ,700,351 15,429,638 98,928, ,981,183 Costs Costs

34 Cost-Effectiveness, Three-Year Total Total Resource Cost Test (2016$) National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 30 of 38 Program Total Program Costs Performance Incentive Participant Costs Total TRC Test Costs A - Residential ,451, ,336, ,222,793 6,582,822 36,951, ,885,491 A1 - Residential Whole House ,497, ,752,650 79,366,412 3,518,583 22,969, ,254,764 A1a - Residential New Construction ,266,928 12,191,498 3,019, ,142 3,662,137 6,924,570 A1b - Residential Multi-Family Retrofit 0.93 (719,571) 9,298,883 10,390,501 91,728 (665,364) 10,018,453 A1c - Residential Home Energy Services - Measures ,464, ,765,045 54,203,522 3,106,662 19,972,759 78,300,265 A1d - Residential Home Energy Services - RCS 0.00 (5,898,170) - 5,898, ,898,170 A1e - Residential Behavior/Feedback Program ,383,919 9,497,224 5,855, ,051-6,113,305 A2 - Residential Products ,000, ,584,035 37,808,775 3,064,239 13,982,264 55,583,122 A2a - Residential Heating & Cooling Equipment ,376 9,322,535 5,387, ,815 3,591,872 9,183,159 A2b - Residential Consumer Products ,632,639 7,112,347 3,259, ,900 1,053,428 4,479,708 A2c - Residential Lighting ,228, ,149,152 29,160,978 2,860,524 9,336,963 41,920,255 A3 - Residential Hard-to-Measure 0.00 (11,047,605) - 11,047, ,047,605 B - Low-Income ,467,778 58,340,621 31,340, ,414-32,872,843 B1 - Low-Income Whole House ,188,472 58,340,621 30,619, ,414-32,152,148 B1a - Low-Income Single Family Retrofit ,074,316 37,071,474 16,060, ,688-16,997,158 B1b - Low-Income Multi-Family Retrofit ,114,156 21,269,147 14,559, ,726-15,154,990 B2 - Low-Income Hard-to-Measure 0.00 (720,695) - 720, ,695 C - Commercial & Industrial ,179, ,043, ,109,242 8,442,812 66,123, ,863,982 C1 - C&I New Construction ,084, ,754,241 29,917,909 2,775,064 9,498,763 42,670,205 C1a - C&I New Buildings & Major Renovations ,806,901 74,160,295 15,259,784 1,360,805 5,500,041 22,353,394 C1b - C&I Initial Purchase & End of Useful Life ,277,135 75,593,946 14,658,124 1,414,259 3,998,722 20,316,811 C2 - C&I Retrofit ,181, ,289,294 83,104,868 5,667,748 56,624, ,107,311 C2a - C&I Existing Building Retrofit ,942, ,083,778 48,795,118 2,940,485 50,394, ,141,261 C2b - C&I Small Business ,834,869 61,706,034 19,861,464 1,052,315 4,571,571 25,871,165 C2c - C&I Multifamily Retrofit 0.60 (2,561,178) 3,882,672 6,898,706 13,257 (593,027) 6,443,849 C2d - C&I Upstream Lighting ,965,774 82,616,809 7,549,580 1,661,692 2,250,845 11,651,036 C3 - C&I Hard-to-Measure 0.00 (2,086,466) - 2,086, ,086,466 Grand Total ,098, ,720, ,672,419 15,930, ,074, ,622,316 Program Benefit-Cost Ratio Benefit-Cost Ratio 2018 Planned Total Resource Cost Test (2016$) Net Benefits Total TRC Test Benefits Total Resource Cost Test (2016$) Net Benefits Total TRC Test Benefits Total Program Costs Performance Incentive Participant Costs Total TRC Test Costs A - Residential ,883,278 1,151,859, ,203,883 19,411, ,768, ,976,343 A1 - Residential Whole House ,262, ,133, ,722,656 10,942,021 65,195, ,870,713 A1a - Residential New Construction ,260,151 48,044,767 10,985, ,075 19,986,294 31,784,616 A1b - Residential Multi-Family Retrofit 0.91 (2,793,291) 28,934,087 33,930, ,982 (2,923,985) 31,727,379 A1c - Residential Home Energy Services - Measures ,512, ,812, ,591,978 9,420,135 48,132, ,300,067 A1d - Residential Home Energy Services - RCS 0.00 (18,278,694) - 18,246, ,278,694 A1e - Residential Behavior/Feedback Program ,562,273 35,342,231 17,967, ,829-18,779,958 A2 - Residential Products ,855, ,726, ,257,523 8,469,949 60,572, ,870,715 A2a - Residential Heating & Cooling Equipment 0.98 (436,583) 25,786,008 15,641, ,633 10,080,853 26,222,591 A2b - Residential Consumer Products ,389,424 21,776,002 9,548, ,319 2,350,243 12,386,578 A2c - Residential Lighting ,902, ,164,405 81,066,677 7,863,997 48,141, ,261,547 A3 - Residential Hard-to-Measure 0.00 (32,234,915) - 32,223, ,234,915 B - Low-Income ,844, ,368,163 90,604,129 2,587,307-94,524,140 B1 - Low-Income Whole House ,763, ,368,163 88,685,882 2,587,307-92,605,162 B1a - Low-Income Single Family Retrofit ,432, ,645,286 46,641,142 1,881,722-49,213,096 B1b - Low-Income Multi-Family Retrofit ,330,811 54,722,877 42,044, ,585-43,392,066 B2 - Low-Income Hard-to-Measure 0.00 (1,918,977) - 1,918, ,918,977 C - Commercial & Industrial ,350,007 1,509,408, ,679,738 26,117, ,625, ,058,769 C1 - C&I New Construction ,514, ,396,120 76,368,554 7,094,991 23,103, ,881,797 C1a - C&I New Buildings & Major Renovations ,931, ,455,850 36,230,966 3,278,689 12,370,939 52,524,588 C1b - C&I Initial Purchase & End of Useful Life ,583, ,940,270 40,137,588 3,816,302 10,732,771 55,357,209 C2 - C&I Retrofit ,468,150 1,126,012, ,686,647 19,022, ,522, ,544,506 C2a - C&I Existing Building Retrofit ,013, ,584, ,326,864 10,725, ,779, ,570,488 C2b - C&I Small Business ,132, ,208,024 62,112,820 3,439,584 15,648,562 82,075,745 C2c - C&I Multifamily Retrofit 0.59 (8,146,380) 11,597,883 21,406,674 67,632 (2,005,105) 19,744,264 C2d - C&I Upstream Lighting ,468, ,622,279 24,840,288 4,789,232 10,099,048 40,154,009 C3 - C&I Hard-to-Measure 0.00 (5,632,466) - 5,624, ,632,466 Grand Total ,620,077,309 2,828,636, ,487,751 48,116, ,393,863 1,208,559,251 Notes The Green Communities Act requires that energy efficiency programs be cost-effective. G.L. c. 25, 21(a), 21(b)(3). If a core initiative is not cost-effective, the Program Administrator has provided an explanation in its report filing. Costs Costs

35 Core Initiatives, Plan Year Summary Residential Programs National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 31 of 38 A1 - Residential Whole, 2016 Summary A1a - Residential New Construction Metric Units Planned Preliminary Evaluated Plan v Plan v Preliminary v Plan v Plan v Preliminary v Metric Units Planned Preliminary Evaluated Preliminary Evaluated Evaluated Preliminary Evaluated Evaluated Annual Energy MWh 2,899 17,156 6, % 114% -64% Annual Energy MWh 5,740 4,583 4,442-20% -23% -3% Lifetime Energy MWh 38, ,594 66, % 70% -64% Lifetime Energy MWh 75,387 65,167 62,651-14% -17% -4% Annual Natural Gas Therms 1,536 20,162 13, % 808% -31% Annual Natural Gas Therms (9,247) (10,113) (10,906) 9% 18% 8% Lifetime Natural Gas Therms 23, , , % 1100% -31% Lifetime Natural Gas Therms (166,450) (182,028) (189,958) 9% 14% 4% Total Benefits 2016$ 11,263,402 55,654,985 24,896, % 121% -55% Total Benefits 2016$ 9,136,044 7,507,014 7,281,706-18% -20% -3% Total Program Costs nominal$ 3,041,588 4,995,982 4,995,982 64% 64% 0% Total Program Costs nominal$ 5,202,345 4,944,865 4,944,865-5% -5% 0% Total Resource Costs 2016$ 7,131,407 17,945,788 17,945, % 152% 0% Total Resource Costs 2016$ 9,136,415 7,867,785 7,867,785-14% -14% 0% Benefit Cost Ratio B/C % -12% -55% Benefit Cost Ratio B/C % -7% -3% A1b - Residential Multi-Family Retrofit A2b - Residential Consumer Products Metric Units Planned Preliminary Evaluated Plan v Plan v Preliminary v Plan v Plan v Preliminary v Metric Units Planned Preliminary Evaluated Preliminary Evaluated Evaluated Preliminary Evaluated Evaluated Annual Energy MWh 5,297 5,838 8,064 10% 52% 38% Annual Energy MWh 6,808 5,668 5,668-17% -17% 0% Lifetime Energy MWh 50,757 55,643 68,472 10% 35% 23% Lifetime Energy MWh 57,232 48,668 48,668-15% -15% 0% Annual Natural Gas Therms Annual Natural Gas Therms 4,272 3,915 3,915-8% -8% 0% Lifetime Natural Gas Therms Lifetime Natural Gas Therms 29,907 27,408 27,408-8% -8% 0% Total Benefits 2016$ 8,740,852 9,456,290 10,680,937 8% 22% 13% Total Benefits 2016$ 6,980,147 6,754,678 7,670,841-3% 10% 14% Total Program Costs nominal$ 10,218,336 13,251,051 13,251,051 30% 30% 0% Total Program Costs nominal$ 3,325,564 2,993,837 2,993,837-10% -10% 0% Total Resource Costs 2016$ 9,846,382 11,790,492 11,790,492 20% 20% 0% Total Resource Costs 2016$ 4,545,171 3,395,061 3,395,061-25% -25% 0% Benefit Cost Ratio B/C % 2% 13% Benefit Cost Ratio B/C % 47% 14% A1c - Residential Home Energy Services - Measures A2c - Residential Lighting Metric Units Planned Preliminary Evaluated Plan v Plan v Preliminary v Plan v Plan v Preliminary v Metric Units Planned Preliminary Evaluated Preliminary Evaluated Evaluated Preliminary Evaluated Evaluated Annual Energy MWh 44,472 65,556 57,953 47% 30% -12% Annual Energy MWh 195, , ,287-2% 3% 5% Lifetime Energy MWh 413, , ,438 41% 28% -9% Lifetime Energy MWh 1,716,321 1,810,170 1,277,866 5% -26% -29% Annual Natural Gas Therms - 17,309 17,309 0% Annual Natural Gas Therms (2,188,104) (2,219,693) (2,720,853) 1% 24% 23% Lifetime Natural Gas Therms - 301, ,536 0% Lifetime Natural Gas Therms (19,257,120) (20,670,123) (17,276,427) 7% -10% -16% Total Benefits 2016$ 181,158, ,116, ,962,961-1% -2% -1% Total Benefits 2016$ 168,292, ,031, ,408,086 3% -29% -31% Total Program Costs nominal$ 51,463,519 41,173,069 41,173,069-20% -20% 0% Total Program Costs nominal$ 28,338,276 21,864,732 21,864,732-23% -23% 0% Total Resource Costs 2016$ 72,876,988 52,671,635 52,671,635-28% -28% 0% Total Resource Costs 2016$ 47,230,387 50,794,241 50,794,241 8% 8% 0% Benefit Cost Ratio B/C % 36% -1% Benefit Cost Ratio B/C % -34% -31% A1e - Residential Behavior/Feedback Program Metric Units Planned Preliminary Evaluated Plan v Plan v Preliminary v Preliminary Evaluated Evaluated Annual Energy MWh 83,928 88,056 88,056 5% 5% 0% Lifetime Energy MWh 83,928 88,056 88,056 5% 5% 0% Annual Natural Gas Therms Lifetime Natural Gas Therms Total Benefits 2016$ 13,061,344 13,662,403 13,662,403 5% 5% 0% Total Program Costs nominal$ 6,158,293 6,116,760 6,116,760-1% -1% 0% Total Resource Costs 2016$ 6,486,149 6,358,906 6,358,906-2% -2% 0% Benefit Cost Ratio B/C % 7% 0% A2 - Residential Products, 2016 Summary A2a - Residential Heating & Cooling Equipment Notes The plan year variances provided above are intended to indicate the Program Administrator's performance in the plan year only. The variances used to determine significant variances are provided separately. The variances above and the significant variances use different calculations to determine variances on an annual basis and over the three-year term, respectively.

36 Core Initiatives, Plan Year Summary Low-Income Programs National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 32 of 38 B1 - Low-Income Whole House, 2016 Summary B1a - Low-Income Single Family Retrofit Metric Units Planned Preliminary Evaluated Plan v Plan v Preliminary v Preliminary Evaluated Evaluated Annual Energy MWh 8,336 7,372 6,740-12% -19% -9% Lifetime Energy MWh 79,345 72,487 62,651-9% -21% -14% Annual Natural Gas Therms % -74% 0% Lifetime Natural Gas Therms 2, % -74% 0% Total Benefits 2016$ 36,237,653 29,976,084 38,569,259-17% 6% 29% Total Program Costs nominal$ 16,455,939 14,178,197 14,178,197-14% -14% 0% Total Resource Costs 2016$ 17,366,987 14,884,119 14,884,119-14% -14% 0% Benefit Cost Ratio B/C % 24% 29% B1b - Low-Income Multi-Family Retrofit Metric Units Planned Preliminary Evaluated Plan v Plan v Preliminary v Preliminary Evaluated Evaluated Annual Energy MWh 12,632 9,244 9,288-27% -26% 0% Lifetime Energy MWh 108,875 83,169 78,605-24% -28% -5% Annual Natural Gas Therms Lifetime Natural Gas Therms Total Benefits 2016$ 21,309,025 13,373,539 12,872,084-37% -40% -4% Total Program Costs nominal$ 15,340,014 12,561,005 12,561,005-18% -18% 0% Total Resource Costs 2016$ 15,925,632 12,736,336 12,736,336-20% -20% 0% Benefit Cost Ratio B/C % -24% -4% Notes The plan year variances provided above are intended to indicate the Program Administrator's performance in the plan year only. The variances used to determine significant variances are provided separately. The variances above and the significant variances use different calculations to determine variances on an annual basis and over the three-year term, respectively.

37 Core Initiatives, Plan Year Summary C&I Programs National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 33 of 38 C1 - C&I New Construction, 2016 Summary C2 - C&I Retrofit, 2016 Summary C1a - C&I New Buildings & Major Renovations C2a - C&I Existing Building Retrofit Metric Units Planned Preliminary Evaluated Plan v Plan v Preliminary v Plan v Plan v Preliminary v Metric Units Planned Preliminary Evaluated Preliminary Evaluated Evaluated Preliminary Evaluated Evaluated Annual Energy MWh 28,832 18,429 18,421-36% -36% 0% Annual Energy MWh 101, , ,419 64% 64% 0% Lifetime Energy MWh 466, , ,073-41% -41% -1% Lifetime Energy MWh 1,285,057 2,232,483 2,231,417 74% 74% 0% Annual Natural Gas Therms 71,692 (17,108) (4,482) -124% -106% -74% Annual Natural Gas Therms (385,783) (548,846) (548,846) 42% 42% 0% Lifetime Natural Gas Therms 1,272,344 (240,481) (30,657) -119% -102% -87% Lifetime Natural Gas Therms (8,411,748) (9,372,833) (9,372,833) 11% 11% 0% Total Benefits 2016$ 61,000,154 34,403,365 37,174,565-44% -39% 8% Total Benefits 2016$ 181,049, ,461, ,033,925 68% 67% 0% Total Program Costs nominal$ 12,869,915 7,054,146 7,054,146-45% -45% 0% Total Program Costs nominal$ 53,845,425 66,298,636 66,298,636 23% 23% 0% Total Resource Costs 2016$ 18,642,792 9,902,596 9,902,596-47% -47% 0% Total Resource Costs 2016$ 101,900, ,117, ,117,368 36% 36% 0% Benefit Cost Ratio B/C % 15% 8% Benefit Cost Ratio B/C % 23% 0% C1b - C&I Initial Purchase & End of Useful Life C2b - C&I Small Business Metric Units Planned Preliminary Evaluated Plan v Plan v Preliminary v Plan v Plan v Preliminary v Metric Units Planned Preliminary Evaluated Preliminary Evaluated Evaluated Preliminary Evaluated Evaluated Annual Energy MWh 23,170 26,971 26,873 16% 16% 0% Annual Energy MWh 39,684 43,561 43,561 10% 10% 0% Lifetime Energy MWh 360, , ,460 19% 19% 0% Lifetime Energy MWh 401, , ,819 22% 22% 0% Annual Natural Gas Therms 76,702 (26,393) (21,700) -134% -128% -18% Annual Natural Gas Therms (163,503) (220,734) (220,734) 35% 35% 0% Lifetime Natural Gas Therms 1,316,658 (388,945) (299,831) -130% -123% -23% Lifetime Natural Gas Therms (1,635,027) (212,563) (2,125,629) -87% 30% 900% Total Benefits 2016$ 64,046,539 59,775,284 57,825,261-7% -10% -3% Total Benefits 2016$ 60,302,183 78,704,269 78,704,269 31% 31% 0% Total Program Costs nominal$ 12,789,027 11,720,107 11,720,107-8% -8% 0% Total Program Costs nominal$ 19,855,505 22,370,569 22,370,569 13% 13% 0% Total Resource Costs 2016$ 17,567,122 16,017,284 16,017,284-9% -9% 0% Total Resource Costs 2016$ 25,864,974 30,318,965 30,318,965 17% 17% 0% Benefit Cost Ratio B/C % -1% -3% Benefit Cost Ratio B/C % 11% 0% Notes The plan year variances provided above are intended to indicate the Program Administrator's performance in the plan year only. The variances used to determine significant variances are provided separately. The variances above and the significant variances use different calculations to determine variances on an annual basis and over the three-year term, respectively. C2c - C&I Multifamily Retrofit Metric Units Planned Preliminary Evaluated Plan v Plan v Preliminary v Preliminary Evaluated Evaluated Annual Energy MWh 4,447 4,016 5,018-10% 13% 25% Lifetime Energy MWh 29,673 25,468 35,971-14% 21% 41% Annual Natural Gas Therms (20,898) % -100% Lifetime Natural Gas Therms (128,313) % -100% Total Benefits 2016$ 4,080,475 2,836,320 3,768,698-30% -8% 33% Total Program Costs nominal$ 6,884,791 7,608,977 7,608,977 11% 11% 0% Total Resource Costs 2016$ 6,441,903 6,851,134 6,851,134 6% 6% 0% Benefit Cost Ratio B/C % -13% 33% C2d - C&I Upstream Lighting Metric Units Planned Preliminary Evaluated Plan v Plan v Preliminary v Preliminary Evaluated Evaluated Annual Energy MWh 78,044 98,131 98,131 26% 26% 0% Lifetime Energy MWh 499, , ,259 30% 30% 0% Annual Natural Gas Therms (277,078) (364,643) (364,643) 32% 32% 0% Lifetime Natural Gas Therms (1,702,143) (2,370,657) (2,370,657) 39% 39% 0% Total Benefits 2016$ 66,275,754 88,535,430 88,535,430 34% 34% 0% Total Program Costs nominal$ 10,147,541 9,301,188 9,301,188-8% -8% 0% Total Resource Costs 2016$ 14,424,237 15,570,287 15,570,287 8% 8% 0% Benefit Cost Ratio B/C % 24% 0%

38 Core Initiatives, Three-Year Total Residential Programs National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 34 of 38 A1 - Residential Whole, Summary A1a - Residential New Construction Metric Units 2016 Evaluated 2017 Planned 2018 Planned Total Metric Units 2016 Evaluated 2017 Planned 2018 Planned Total Annual Energy MWh 6,208 2,575 2,730 11,513 Annual Energy MWh 4,442 5,783 5,830 16,055 Lifetime Energy MWh 66,075 35,497 42, ,778 Lifetime Energy MWh 62,651 76,162 77, ,815 Annual Natural Gas Therms 13,946 1,536 1,536 17,018 Annual Natural Gas Therms (10,906) (8,322) (7,490) (26,718) Lifetime Natural Gas Therms 276,479 23,040 23, ,559 Lifetime Natural Gas Therms (189,958) (149,805) (134,824) (474,588) Total Benefits 2016$ 24,896,699 10,956,570 12,191,498 48,044,767 Total Benefits 2016$ 7,281,706 9,181,768 9,322,535 25,786,008 Total Program Costs nominal$ 4,995,982 3,045,779 3,174,364 11,216,124 Total Program Costs nominal$ 4,944,865 5,444,032 5,664,988 16,053,885 Total Resource Costs 2016$ 17,945,788 6,914,257 6,924,570 31,784,616 Total Resource Costs 2016$ 7,867,785 9,171,647 9,183,159 26,222,591 Benefit Cost Ratio B/C Benefit Cost Ratio B/C A1b - Residential Multi-Family Retrofit Metric Units 2016 Evaluated 2017 Planned 2018 Planned Total Metric Units 2016 Evaluated 2017 Planned 2018 Planned Total Annual Energy MWh 8,064 5,363 5,397 18,825 Annual Energy MWh 5,668 6,979 7,181 19,828 Lifetime Energy MWh 68,472 51,352 52, ,089 Lifetime Energy MWh 48,668 58,570 60, ,375 Annual Natural Gas Therms Annual Natural Gas Therms 3,915 5,346 6,683 15,944 Lifetime Natural Gas Therms Lifetime Natural Gas Therms 27,408 37,422 46, ,607 Total Benefits 2016$ 10,680,937 8,954,267 9,298,883 28,934,087 Total Benefits 2016$ 7,670,841 6,992,813 7,112,347 21,776,002 Total Program Costs nominal$ 13,251,051 10,550,506 10,925,042 34,726,600 Total Program Costs nominal$ 2,993,837 3,378,864 3,427,697 9,800,399 Total Resource Costs 2016$ 11,790,492 9,918,433 10,018,453 31,727,379 Total Resource Costs 2016$ 3,395,061 4,511,808 4,479,708 12,386,578 Benefit Cost Ratio B/C Benefit Cost Ratio B/C A1c - Residential Home Energy Services - Measures Metric Units 2016 Evaluated 2017 Planned 2018 Planned Total Metric Units 2016 Evaluated 2017 Planned 2018 Planned Total Annual Energy MWh 57,953 43,418 40, ,167 Annual Energy MWh 200, , , ,346 Lifetime Energy MWh 529, , ,992 1,305,470 Lifetime Energy MWh 1,277,866 1,751,857 1,679,531 4,709,254 Annual Natural Gas Therms 17, ,309 Annual Natural Gas Therms (2,720,853) (2,059,472) (1,834,530) (6,614,854) Lifetime Natural Gas Therms 301, ,536 Lifetime Natural Gas Therms (17,276,427) (19,655,838) (18,844,342) (55,776,606) Total Benefits 2016$ 177,962, ,084, ,765, ,812,120 Total Benefits 2016$ 119,408, ,607, ,149, ,164,405 Total Program Costs nominal$ 41,173,069 54,567,058 56,992, ,732,158 Total Program Costs nominal$ 21,864,732 30,804,008 30,661,169 83,329,909 Total Resource Costs 2016$ 52,671,635 77,328,166 78,300, ,300,067 Total Resource Costs 2016$ 50,794,241 45,547,051 41,920, ,261,547 Benefit Cost Ratio B/C Benefit Cost Ratio B/C A1e - Residential Behavior/Feedback Program Metric Units 2016 Evaluated 2017 Planned 2018 Planned Total Annual Energy MWh 88,056 83,931 83, ,922 Lifetime Energy MWh 88,056 83,931 83, ,922 Annual Natural Gas Therms Lifetime Natural Gas Therms Total Benefits 2016$ 13,662,403 12,182,604 9,497,224 35,342,231 Total Program Costs nominal$ 6,116,760 6,148,300 6,156,392 18,421,452 Total Resource Costs 2016$ 6,358,906 6,307,747 6,113,305 18,779,958 Benefit Cost Ratio B/C A2 - Residential Products, Summary A2a - Residential Heating & Cooling Equipment A2b - Residential Consumer Products A2c - Residential Lighting

39 Core Initiatives, Three-Year Total Low-Income Programs National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 35 of 38 B1 - Low-Income Whole House, Summary B1a - Low-Income Single Family Retrofit Metric Units 2016 Evaluated 2017 Planned 2018 Planned Total Annual Energy MWh 6,740 8,146 7,873 22,759 Lifetime Energy MWh 62,651 78,042 76, ,597 Annual Natural Gas Therms Lifetime Natural Gas Therms 574 2,220 2,220 5,015 Total Benefits 2016$ 38,569,259 37,004,552 37,071, ,645,286 Total Program Costs nominal$ 14,178,197 16,818,896 16,886,911 47,884,004 Total Resource Costs 2016$ 14,884,119 17,331,818 16,997,158 49,213,096 Benefit Cost Ratio B/C B1b - Low-Income Multi-Family Retrofit Metric Units 2016 Evaluated 2017 Planned 2018 Planned Total Annual Energy MWh 9,288 12,462 12,275 34,025 Lifetime Energy MWh 78, , , ,238 Annual Natural Gas Therms Lifetime Natural Gas Therms Total Benefits 2016$ 12,872,084 20,581,647 21,269,147 54,722,877 Total Program Costs nominal$ 12,561,005 15,303,801 15,308,013 43,172,818 Total Resource Costs 2016$ 12,736,336 15,500,740 15,154,990 43,392,066 Benefit Cost Ratio B/C

40 Core Initiatives, Three-Year Total C&I Programs National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 36 of 38 C1 - C&I New Construction, Summary C1a - C&I New Buildings & Major Renovations Metric Units 2016 Evaluated 2017 Planned 2018 Planned Total Metric Units 2016 Evaluated 2017 Planned 2018 Planned Total Annual Energy MWh 18,421 31,457 34,781 84,658 Annual Energy MWh 166, , , ,072 Lifetime Energy MWh 274, , ,152 1,345,063 Lifetime Energy MWh 2,231,417 1,302,883 1,481,590 5,015,890 Annual Natural Gas Therms (4,482) 84,039 99, ,381 Annual Natural Gas Therms (548,846) (452,243) (1,219,479) (2,220,569) Lifetime Natural Gas Therms (30,657) 1,478,825 1,739,757 3,187,925 Lifetime Natural Gas Therms (9,372,833) (9,702,890) (23,606,130) (42,681,852) Total Benefits 2016$ 37,174,565 67,120,990 74,160, ,455,850 Total Benefits 2016$ 302,033, ,466, ,083, ,584,471 Total Program Costs nominal$ 7,054,146 14,270,528 16,044,826 37,369,501 Total Program Costs nominal$ 66,298,636 53,559,832 51,305, ,163,858 Total Resource Costs 2016$ 9,902,596 20,268,598 22,353,394 52,524,588 Total Resource Costs 2016$ 138,117,368 99,311, ,141, ,570,488 Benefit Cost Ratio B/C Benefit Cost Ratio B/C C1b - C&I Initial Purchase & End of Useful Life C2 - C&I Retrofit, Summary C2a - C&I Existing Building Retrofit C2b - C&I Small Business Metric Units 2016 Evaluated 2017 Planned 2018 Planned Total Metric Units 2016 Evaluated 2017 Planned 2018 Planned Total Annual Energy MWh 26,873 25,700 26,684 79,258 Annual Energy MWh 43,561 40,525 41, ,468 Lifetime Energy MWh 428, , ,133 1,243,176 Lifetime Energy MWh 491, , ,204 1,321,510 Annual Natural Gas Therms (21,700) 84,765 90, ,481 Annual Natural Gas Therms (220,734) (166,773) (170,108) (557,615) Lifetime Natural Gas Therms (299,831) 1,454,610 1,550,908 2,705,688 Lifetime Natural Gas Therms (2,125,629) (1,667,728) (1,701,082) (5,494,439) Total Benefits 2016$ 57,825,261 71,521,063 75,593, ,940,270 Total Benefits 2016$ 78,704,269 60,797,720 61,706, ,208,024 Total Program Costs nominal$ 11,720,107 14,108,844 15,412,214 41,241,165 Total Program Costs nominal$ 22,370,569 20,385,760 20,883,240 63,639,569 Total Resource Costs 2016$ 16,017,284 19,023,114 20,316,811 55,357,209 Total Resource Costs 2016$ 30,318,965 25,885,615 25,871,165 82,075,745 Benefit Cost Ratio B/C Benefit Cost Ratio B/C C2c - C&I Multifamily Retrofit Metric Units 2016 Evaluated 2017 Planned 2018 Planned Total Annual Energy MWh 5,018 4,572 4,701 14,292 Lifetime Energy MWh 35,971 30,443 31,236 97,650 Annual Natural Gas Therms - (21,525) (22,171) (43,695) Lifetime Natural Gas Therms - (132,162) (136,127) (268,289) Total Benefits 2016$ 3,768,698 3,946,514 3,882,672 11,597,883 Total Program Costs nominal$ 7,608,977 7,074,225 7,253,611 21,936,814 Total Resource Costs 2016$ 6,851,134 6,449,280 6,443,849 19,744,264 Benefit Cost Ratio B/C C2d - C&I Upstream Lighting Metric Units 2016 Evaluated 2017 Planned 2018 Planned Total Annual Energy MWh 98,131 93,401 98, ,200 Lifetime Energy MWh 649, , ,620 1,919,246 Annual Natural Gas Therms (364,643) (350,879) (375,816) (1,091,338) Lifetime Natural Gas Therms (2,370,657) (2,116,098) (2,672,388) (7,159,143) Total Benefits 2016$ 88,535,430 71,470,039 82,616, ,622,279 Total Program Costs nominal$ 9,301,188 8,192,454 7,937,969 25,431,611 Total Resource Costs 2016$ 15,570,287 12,932,687 11,651,036 40,154,009 Benefit Cost Ratio B/C

41 Greenhouse Gas Reductions, Plan Year Summary GHG reductions are provided for information purposes only. They are not included in the TRC test. National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 37 of Planned Greenhouse Gas Reductions Adjusted Gross Annual Savings GHG Factors Annual Emissions Reductions (Short Tons) Sector Electric Energy Natural Gas Oil NOX SO2 CO2 (MWh) (Therms) (MMBTU) Electric Energy Electric Energy Electric Energy Natural Gas Oil NOX SO2 CO2 A - Residential 411,070 (2,874,389) 55, ,481 B - Low-Income 20, , ,996 C - Commercial & Industrial 269,060 (685,800) (50,498) ,482 Grand Total 701,098 (3,559,872) 50, , Evaluated Greenhouse Gas Reductions Adjusted Gross Annual Savings GHG Factors Annual Emissions Reductions (Short Tons) Sector Electric Energy Natural Gas Oil NOX SO2 CO2 (MWh) (Therms) (MMBTU) Electric Energy Electric Energy Electric Energy Natural Gas Oil NOX SO2 CO2 A - Residential 416,818 (3,259,995) (83,111) ,314 B - Low-Income 16, , ,953 C - Commercial & Industrial 341,160 (1,084,945) (79,210) ,387 Grand Total 774,006 (4,344,858) (130,048) , Planned v. Evaluated Greenhouse Gas Reductions Variances (%) Adjusted Gross Annual Savings GHG Factors Annual Emissions Reductions (Short Tons) Sector Electric Energy Natural Gas Oil NOX SO2 CO2 (MWh) (Therms) (MMBTU) Electric Energy Electric Energy Electric Energy Natural Gas Oil NOX SO2 CO2 A - Residential 1% 13% -250% 0% 0% 0% 0% 0% 1% 1% -7% B - Low-Income -24% -74% -29% 0% 0% 0% 0% 0% -24% -24% -25% C - Commercial & Industrial 27% 58% 57% 0% 0% 0% 0% 0% 27% 27% 24% Grand Total 10% 22% -356% 0% 0% 0% 0% 0% 10% 10% 4% Notes The GHG factors have been updated since the Plan in coordination with the Department of Environmental Protection to reflect the most up to date information available

42 Greenhouse Gas Reductions, Three-Year Total GHG reductions are provided for information purposes only. They are not included in the TRC test. National Grid Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Master Data Tables 38 of Evaluated Greenhouse Gas Reductions Adjusted Gross Annual Savings GHG Factors Annual Emissions Reductions (Short Tons) Sector Electric Energy Natural Gas Oil NOX SO2 CO2 (MWh) (Therms) (MMBTU) Electric Energy Electric Energy Electric Energy Natural Gas Oil NOX SO2 CO2 A - Residential 416,818 (3,259,995) (83,111) ,314 B - Low-Income 16, , ,953 C - Commercial & Industrial 341,160 (1,084,945) (79,210) ,387 Grand Total 774,006 (4,344,858) (130,048) , Planned Greenhouse Gas Reductions Adjusted Gross Annual Savings GHG Factors Annual Emissions Reductions (Short Tons) Sector Electric Energy Natural Gas Oil NOX SO2 CO2 (MWh) (Therms) (MMBTU) Electric Energy Electric Energy Electric Energy Natural Gas Oil NOX SO2 CO2 A - Residential 405,484 (2,804,896) 67, ,674 B - Low-Income 20, , ,026 C - Commercial & Industrial 286,039 (800,127) (62,542) ,566 Grand Total 712,131 (3,604,706) 53, , Planned Greenhouse Gas Reductions Adjusted Gross Annual Savings GHG Factors Annual Emissions Reductions (Short Tons) Sector Electric Energy Natural Gas Oil NOX SO2 CO2 (MWh) (Therms) (MMBTU) Electric Energy Electric Energy Electric Energy Natural Gas Oil NOX SO2 CO2 A - Residential 388,449 (2,621,854) 84, ,336 B - Low-Income 20, , ,843 C - Commercial & Industrial 312,460 (1,632,194) (73,581) ,272 Grand Total 721,057 (4,253,731) 58, , Greenhouse Gas Reductions Adjusted Gross Annual Savings GHG Factors Annual Emissions Reductions (Short Tons) Sector Electric Energy Natural Gas Oil NOX SO2 CO2 (MWh) (Therms) (MMBTU) Electric Energy Electric Energy Electric Energy Natural Gas Oil NOX SO2 CO2 A - Residential 1,210,751 (8,686,745) 69, ,325 B - Low-Income 56, , ,822 C - Commercial & Industrial 939,658 (3,517,266) (215,334) ,225 Grand Total 2,207,193 (12,203,295) (18,047) ,372 Notes The GHG factors have been updated since the Plan in coordination with the Department of Environmental Protection to reflect the most up to date information available

43 Massachusetts Electric Company Nantucket Electric Company d/b/a National Grid APPENDICES

44 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 1, Significant Variances & Cost-Effectiveness Page 1 of 15 APPENDIX 1 Significant Core Initiative Variances & Cost-Effectiveness Program Administrator-Specific Narrative Explanations for Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid (the Company ) are as follows. I. RESIDENTIAL PROGRAMS A. RESIDENTIAL WHOLE HOUSE The actual 2016 benefit-cost ratio for the Residential Whole House program is The projected benefit-cost ratio for the plan term is 2.14 after accounting for actual results from Residential New Construction a. Significant Variances 1 A significant variance for the 2016 plan-year exists between: (1) planned budget and actual budget and (2) preliminary and evaluated total resource benefits. Actual expenditures for Residential New Construction & Major Renovation core initiative were 64 percent higher than the planned budget. The primary reason was that actual expenditures in the participant incentive cost category were 73 percent higher than planned due to customer participation being 116 percent above planned. A significant variance exists between preliminary and evaluated total resource benefits for the Residential New Construction core initiative. Evaluated total resource benefits were 62 percent less than preliminary total resource benefits. The decrease in benefits was caused by a decrease in energy savings due to the Massachusetts Single-Family Code Compliance Baseline Study, which is included as Attachment 4D, Study This study updated the User Defined Reference Home ( UDRH ), last updated in 2011, and is based on current common installation practices for non-participating homes. The study found significant increases in the installation of several energy efficiency measures in non-participating homes. Some of these measures included duct leakage, air infiltration and ceiling 1 Plan-year core initiative significant variances are defined in the D.P.U , Phase II Plan-Year Report Template as: (1) variances between planned and actual core initiative budget of 15 percent or greater; (2) variances between planned and preliminary core initiative total lifetime savings showing a decrease of 15 percent or greater; (3) variances between planned and preliminary core initiative total benefits showing a decrease of 15 percent or greater; and (4) variances between preliminary and evaluated core initiative total resource benefits showing a decrease of 15 percent or greater.

45 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 1, Significant Variances & Cost-Effectiveness Page 2 of 15 insulation. The UDRH updates increased the baseline for this initiative and resulted in decreased total claimable resource benefits by 64 percent for the non-lighting lowrise portion of the Residential New Construction core initiative. In addition, the end of useful life ( EUL ) for EISA compliant LED measures were reduced based on the results of the Lighting Market Adoption Model included as Attachment 4D, Study 16-4, which also resulted in lower than planned total resource benefits. In response to the above variances, the Company plans to make the following change in program design/implementation: The Program Administrators ( PAs ) have designed a new performance-based incentive structure in this core initiative that, starting July 2017, will be utilized to enhance program savings and align builder incentives more closely to those savings. The Blended Savings Approach combines incentives for kwh and MMBtus saved with an incentive for percent savings over baseline to encourage better energy efficiency buildings practices and equipment. Participants can enter the program at 5 percent savings above the UDRH, versus the previous benchmark of 15 percent savings. Overall the new incentive structure aims to streamline the program for both participants and the PAs to encourage more savings and reduced administration. The Company plans to work with the statewide Residential New Construction core initiative vendor to implement broad marketing tactics to increase awareness among builders and raters about the new incentive structure, and the program in general. With this new incentive structure and marketing tactics, the Company is projecting to achieve its savings and benefits goals by the end of the Three-Year Plan term for this core initiative. The Company will monitor this core initiative s activity for the remainder of the plan term and determine if a midterm modification or EEAC review is necessary. b. Program Cost-Effectiveness The actual 2016 benefit-cost ratio for the Residential New Construction core initiative is The projected benefit-cost ratio for the plan term is 1.51 after accounting for actual results from Residential Multi-Family a. Significant Variances

46 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 1, Significant Variances & Cost-Effectiveness Page 3 of 15 A significant variance for the 2016 program year exists between the planned budget and actual expenditures. Actual expenditures for the Multi-Family Retrofit core initiative were 30 percent higher than the planned budget. The primary reason was that actual expenditures in the participant incentive cost category were 33 percent higher than planned due to greater than anticipated customer participation. Preliminary lifetime savings do not reflect this increase in participation due to a change in the way savings for some measures were calculated compared to plan. Based on the outcome of two evaluation studies, which indicated that lighting savings estimates for this initiative were not being calculated accurately, (2013 National Grid Multifamily Program Gas and Electric Impact Study and the Multifamily Program Improvement Strategies: Preliminary Results study included as Attachment 4D, Studies and 16-14), the PAs and EEAC evaluation consultants determined that the PAs would change the methodology for assigning energy savings to lighting measures installed in dwelling units from vendor-calculated savings using site-specific delta watts and hours of use to deemed savings. The deemed savings that were assigned are lower than the average vendor-calculated savings previously used by the Company in the three-year plan, resulting in a decrease impacting both the preliminary and evaluated gross savings. In response to the above variances, the Company plans to make the following change(s) in program design/implementation: Based on a review of 2016 measures installed, the Company is discontinuing the installation of in-unit fixtures installed in the initiative. Moreover, the Company is working with its vendors on additional ways to streamline program delivery to ensure it is pursuing all opportunities while increasing the diversity of measures installed to maximize savings while reducing transaction costs. The Company will monitor this core initiative s activity for the remainder of the plan term and determine if a midterm modification or EEAC review is necessary. The Company is projecting to achieve its savings and benefits goals by the end of the Three-Year Plan term for this core initiative. b. Program Cost-Effectiveness The actual 2016 benefit-cost ratio for the Residential Multi-Family core initiative is The projected benefit-cost ratio for the plan term is 0.91 after accounting for actual results from This core initiative is not cost-effective for the 2016 program year. The Company planned with a 60 percent placeholder realization rate based on the preliminary results from the 2013 National Grid Multifamily Program Gas and Electric Impact Study

47 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 1, Significant Variances & Cost-Effectiveness Page 4 of 15 impact evaluation, which resulted in a planned benefit-cost ratio of 0.89 for this core initiative. In accordance with the GCA and Department Orders, the PAs review costeffectiveness at the program and core initiative levels. PAs offer non-cost-effective measures when deemed appropriate, so long as they are balanced out by other measures such that the core initiative is cost-effective overall. The specific measures offered in this core initiative that are not cost-effective are in-unit and common area lighting fixtures, which the PAs continued to offer in 2016 as they were important 'gateways' to getting owners to participate in the program in order to leverage deeper savings measures. In the past, the residential multi-family core initiative has remained cost-effective, even when offering these gateway measures. However, in 2016, the cumulative impact of the various evaluations on this core initiative, especially the lighting evaluation that reduced measure lives (2016 Lighting Market Adoption Model included as Attachment 4D, Study 16-4 and the 2016 Interim Reflector Market Adoption Model included as Attachment 4D, Study 16-4), resulted in the initiative falling below a 1.0 benefit-cost ratio for Moving forward, the PAs have ceased to offer in-unit fixtures, and expect that the core initiative will be cost-effective for the remainder of the term. 3. Residential Home Energy Services a. Significant Variances A significant variance exists between the planned budget and actual expenditures. Actual expenditures for the Home Energy Services Measures core initiative were 20 percent lower than planned. There are three main reasons for this variance. The first reason is because this core initiative budget includes anticipated costs to meet new code requirements for installing attic insulation. This code requirement added significantly to the Home Energy Services Measures core initiative budget. After the final three-year plan was filed, the Board of Building Regulations and Standards ruled that this core initiative was exempt from these new requirements, which meant the budgeted money was not spent. The second reason that contributed to the underspending is that the Company planned on installing more Wi-Fi thermostats in the direct install delivery channel than in the mail-in rebate delivery channel while actual participation showed a greater than expected amount of mail-in delivery participation. The mail-in rebate delivery channel costs less, and therefore, the Company spent less than planned on this measure. Yet another factor was the slower than anticipated launch of duct sealing and insulation, a new measure in the initiative. Finally, the lower than planned participation contributed to the underspending in this core initiative. The lower participation rates are due to the warm winter in as well as the sudden closure of the core initiative s largest Home Performance

48 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 1, Significant Variances & Cost-Effectiveness Page 5 of 15 Contractor ( HPC ). This HPC drove close to 25 percent of the previous years participants through its proprietary marketing and outreach. In response to the above variances The Company plans to make the following change in the program design/implementation: The Company has increased marketing spending and restructured contractor incentives to fill the void left by the closure of the largest HPC. The Company is projecting to achieve its savings and benefits goals by the end of the Three-Year Plan term for this core initiative. The Company will monitor this core initiative s activity for the remainder of the plan term and determine if a midterm modification or EEAC review is necessary. b. Program Cost-Effectiveness The actual 2016 benefit-cost ratio for the Residential Home Energy Services core initiative is The projected benefit-cost ratio for the plan term is 2.64 after accounting for actual results from Residential Behavior/Feedback a. Significant Variances There are no significant variances to report for this core initiative. The Company is projecting to achieve its savings and benefits goals by the end of the Three-Year Plan term for this core initiative. b. Program Cost-Effectiveness The actual 2016 benefit-cost ratio for the Residential Behavior/Feedback core initiative is The projected benefit-cost ratio for the plan term is 1.88 after accounting for actual results from B. RESIDENTIAL PRODUCTS The actual 2016 benefit-cost ratio for the Residential Products Program is The projected benefit-cost ratio for the plan term is 2.77 after accounting for actual results from Residential Heating & Cooling Equipment a. Significant Variances

49 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 1, Significant Variances & Cost-Effectiveness Page 6 of 15 A significant variance for 2016 exists between the planned and preliminary total benefits. Preliminary total benefits for the Residential Electric Heating and Cooling core initiative were 18 percent lower than planned. The primary reason for this variance is that the quantity of the majority of measures incentivized through this initiative was lower than planned. Since total benefits for this core initiative are comprised mostly of electric benefits, the lower than planned quantities contributed largely to this variance. The remaining reduction in benefits is due to the measure mix. Fewer measures with non-energy impacts were incentivized than planned, such as duct sealing, downsizing, quality installation verification, central air conditioning, central heat pumps, and measures with a negative natural gas impact, such as furnaces with electrically commutated motors ( ECMs ). In response to the above variance, the Company plans to make the following change in program design/implementation: The Company is increasing engagement with the contractor community to increase production and encourage participation in service measures by increasing outreach through supply houses and manufacturer trainings, as well as direct contractor communications. The Company is projecting to achieve its savings and benefits goals by the end of the plan term for this core initiative. b. Program Cost-Effectiveness The actual 2016 benefit-cost ratio for the Residential Heating & Cooling core initiative is The projected benefit-cost ratio for the plan term is 0.98 after accounting for actual results from This core initiative is not cost-effective for the 2016 program year, which is a result of a combination of lower than planned quantities of incentivized measures and higher than planned expenditures in the Sales, Technical Assistance and Training ( STAT ) and Evaluation & Market Research cost categories. As outlined in the planned to preliminary total benefits variance explanation, lower than planned quantities led to 17 percent lower lifetime savings, as well as 20 percent lower total benefits because of the measure mix (fewer measures with non-energy impacts were incentivized than planned). STAT costs were 27 percent higher than planned, and evaluation costs were 176 percent higher than planned. As stated above, The Company is increasing engagement with the contractor community to increase production and encourage participation in service measures. Changes were made mid-2016 to the core initiative to decrease STAT costs, including

50 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 1, Significant Variances & Cost-Effectiveness Page 7 of 15 developing an online portion of AC Check training designed to reduce the cost of inperson training and streamlining the AC Check reporting process. Results of these changes are expected to be seen in STAT costs will continue to be monitored. Evaluation spending is anticipated to be significantly lower in 2017 and The Ductless Mini-Split Heat Pump Impact Evaluation included as Attachment 4D, Study 16-15, was completed at the end of 2016 and there are no large-scale evaluations of this core initiative currently planned. 2. Residential Lighting a. Significant Variances Significant variances exist between (1) planned budget and actual expenditures and (2) preliminary and evaluated total resource benefits. Actual expenditures for the Residential Lighting core initiative were 23 percent lower than the planned budget. The primary reason for this variance is the rapid reduction of the cost of LED and CFL light bulbs and fixtures. In many bulb categories, actual incentives per bulb were half of what the Company planned. Evaluated total resource benefits are 33 percent lower than preliminary total resource benefits, which is due to evaluation results. In January 2017, the U.S. Department of Energy issued a ruling that changed the definition of bulbs subject to the Energy Independence and Security Act ( EISA ) beginning on January 1, Due to the method the PAs use to calculate an EUL for EISA compliant residential lighting measures, the EUL for the aforementioned measures that will be subject to EISA beginning on January 1, 2020, was significantly reduced. Specifically, the EUL for these measures was reduced from 17 years to 8 years, which resulted in lower than preliminary total resource benefits. Moreover, the EULs for EISA compliant LED measures were reduced based on the results of the 2016 Lighting Market Adoption Model included as Attachment 4D, Study 16-4 and the 2016 Interim Reflector Market Adoption Model included as Attachment 4D, Study 16-4, which also resulted in lower than preliminary total resource benefits. In response to the above variance, the Company plans to increase the volume of incentivized bulbs as it is encouraged by lower bulb prices. The Company will monitor this core initiative s activity for the remainder of the plan term in order to determine if the savings and benefits goals can be achieved by the end of the plan term for this core initiative and whether a midterm modification or EEAC review is necessary.

51 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 1, Significant Variances & Cost-Effectiveness Page 8 of 15 b. Program Cost-Effectiveness The actual 2016 benefit-cost ratio for the Residential Lighting core initiative is The projected benefit-cost ratio for the plan term is 3.20 after accounting for actual results from Residential Consumer Products a. Significant Variances There are no significant variances to report for this core initiative. The Company is projecting to achieve its savings and benefits goals by the end of the Three-Year Plan term for this core initiative. b. Program Cost-Effectiveness The actual 2016 benefit-cost ratio for the Residential Consumer Products core initiative is The projected benefit-cost ratio for the plan term is 1.76 after accounting for actual results from II. LOW-INCOME PROGRAMS A. LOW-INCOME WHOLE HOUSE The actual 2016 benefit-cost ratio for the Low-Income Whole House program is The projected benefit-cost ratio for the plan term is 1.81 after accounting for actual results from Low-Income Single Family Retrofit a. Significant Variances A significant variance exists between planned and preliminary total benefits. Preliminary total benefits were 17 percent lower than planned because the actual measure mix installed was different than planned. The Company completed fewer than expected insulation jobs and heating system replacements (boilers) in oil heated homes, which resulted in lower than planned oil benefits. Since oil benefits comprise a large part of the total benefits for this core initiative, the lower than planned oil benefits contributed to the significant decrease of 17 percent between planned and preliminary total benefits.

52 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 1, Significant Variances & Cost-Effectiveness Page 9 of 15 In response to the above variances, the Company is working with its lead vendor to increase outreach to oil heated homes. The Company will monitor this core initiative s activity for the remainder of the plan term and determine if a midterm modification or EEAC review is necessary. The Company is projecting to achieve its savings and benefits goals by the end of the plan term for this core initiative. b. Program Cost-Effectiveness The actual 2016 benefit-cost ratio for the Low-Income Single Family core initiative is The projected benefit-cost ratio for the plan term is 2.29 after accounting for actual results from Low-Income Multi-Family Retrofit a. Significant Variances Significant variances exist between (1) planned budget and actual budget, (2) planned and preliminary lifetime savings, and (3) planned and preliminary total benefits. Actual spending was 18 percent lower than planned budget because there were fewer opportunities than expected through the Community Action Program ( CAP ) agency intake process and participation was therefore lower than expected. Preliminary lifetime savings and preliminary total benefits were 24 and 37 percent lower than planned, respectively, because of the lower than expected participation, as well as differences in the actual measure mix installed. In particular, the Company completed no projects in oil heated properties, which resulted in a significant impact on total benefits. In response to the above variances, the Company plans to make the following change(s) in program design/implementation: The Company is working with its lead vendor and marketing department to develop a multi-faceted customer outreach approach to increase participation. The Company recently completed income eligible customer focus groups in order to understand how to better engage this market. The Company will be launching a targeted marketing campaign to increase participation rates in specific customer segments, such as oil heated buildings.

53 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 1, Significant Variances & Cost-Effectiveness Page 10 of 15 The Company is working with its lead vendor and CAP agencies to address any other barriers to participation. The Company will monitor this core initiative s activity for the remainder of the plan term and determine if a midterm modification or EEAC review is necessary. The Company is projecting to achieve its savings and benefits goals by the end of the Three-Year Plan term for this core initiative. b. Program Cost-Effectiveness The actual 2016 benefit-cost ratio for the Low-Income Multi-Family core initiative is The projected benefit-cost ratio for the plan term is 1.26 after accounting for actual results from III. COMMERCIAL & INDUSTRIAL PROGRAMS A. C&I NEW CONSTRUCTION The actual 2016 benefit-cost ratio for the C&I New Construction program is The projected benefit-cost ratio for the plan term is 3.55 after accounting for actual results from C&I New Buildings & Major Renovations a. Significant Variances A significant variance exists between the (1) planned and actual budget, (2) planned and preliminary lifetime savings, and (3) planned and preliminary total benefits. Actual spending was 45 percent below planned, preliminary lifetime savings were 41 percent below planned, and preliminary total benefits were 44 percent below planned. These variances are due to a number of factors. Throughout the term, the C&I New Construction program was successful due to the ease of participation of the upstream lighting delivery model, some modest strengthening of the new construction market in the Company s electric service area, and an increase in customers looking to install new equipment and replace failed equipment in their facilities. The 2016 program year was the first time new construction activity has been its own core initiative. The number of completed whole building approach projects has slowed as the Company s electric service area is still not experiencing the number and size of new

54 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 1, Significant Variances & Cost-Effectiveness Page 11 of 15 buildings comparable to the Greater Boston area and as a result, the New Buildings & Major Renovation core initiative did not grow as much as planned and lifetime savings were 41 percent below plan. The Company saw a 64 percent decline in the number of whole building approach projects, which are typically the second largest component, after lighting, of New Buildings and Major Renovation core initiative market activity. This decline resulted in a 36 percent decrease in lifetime savings from 2015 and a 41 percent decrease from 2016 planned values. Total benefits, which are a byproduct of lifetime savings, were 39 percent below planned values. Spending in the New Buildings and Major Renovations core initiative, which was 45 percent below planned, is a direct result of savings generating projects that are not being identified and closed in quantities sufficient enough to meet the planned savings target. In response to the above variances, the Company plans to make the following changes in program design/implementation: Improvements to streamline the offerings and communications to market actors have been and are continuing to promote and coordinate the whole building approach to new construction solutions on a statewide basis, which should positively impact participation, specifically in the whole building approach for large complex buildings, in the New Buildings and Major Renovations core initiative. It is important to note that after IECC 2015 enactment on January 1, 2017, permitted buildings will have fewer claimable savings because the code will increase the baseline efficiency of the building. Marketing & Outreach Improved targeting and communication of information based on advanced analytics, cross-program selling, increased outreach through associations, industry groups and events, and segment-specific messaging to improve response rates and build awareness amongst market actors. Program Offerings Efforts have been taken to make new construction more transparent and accessible to market actors for ground up, major renovation, as well as tenant fit-out projects. The Company will monitor this core initiative s activity for the remainder of the plan term and determine if a midterm modification or EEAC review is necessary. The Company does not believe these variances will affect its ability to achieve its savings and/or benefits goals by the end of the three-year term.. b. Program Cost-Effectiveness

55 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 1, Significant Variances & Cost-Effectiveness Page 12 of 15 The actual 2016 benefit-cost ratio for the C&I New Buildings & Major Renovations core initiative is The projected benefit-cost ratio for the plan term is 3.4 after accounting for actual results from C&I Initial Purchase & End of Useful Life a. Significant Variances There are no significant variances to report for this core initiative. The Company is projecting to achieve its savings and benefits goals by the end of the Three-Year Plan term for this core initiative. b. Program Cost-Effectiveness The actual 2016 benefit-cost ratio for the C&I Initial Purchase & End of Useful Life core initiative is The projected benefit-cost ratio for the plan term is 3.70 after accounting for actual results from B. C&I RETROFIT The actual 2016 benefit-cost ratio for the C&I Retrofit program is The projected benefit-cost ratio for the plan term is 2.33 after accounting for actual results from C&I Existing Building Retrofit a. Significant Variances A significant variance exists between planned and actual budget. Actual expenditures were 23 percent above planned, which is the result of higher participation than planned. The higher than planned participation in this core initiative resulted in 74 percent more lifetime savings than planned. Importantly, the higher than planned savings relative to plan did not result in a proportional increase in program costs over plan because the actual incentive cost of savings was $24.53 per lifetime MWh versus a planned incentive cost of $33.70 per lifetime MWh, which is a 27.2 percent reduction. The Company does not plan to make any significant changes to core initiative design at this time. The Company will monitor this core initiative s activity for the

56 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 1, Significant Variances & Cost-Effectiveness Page 13 of 15 remainder of the plan term and determine if a midterm modification or EEAC review is necessary. The Company is projecting to achieve its savings and benefits goals by the end of the Three-Year Plan term for this core initiative. b. Program Cost-Effectiveness The actual 2016 benefit-cost ratio for the C&I Existing Building Retrofit core initiative is The projected benefit-cost ratio for the plan term is 1.97 after accounting for actual results from C&I Small Business a. Significant Variances There are no significant variances to report for this core initiative. The Company is projecting to achieve its savings and benefits goals by the end of the Three-Year Plan term for this core initiative. b. Program Cost-Effectiveness The actual 2016 benefit-cost ratio for the C&I Small Business core initiative is The projected benefit-cost ratio for the plan term is 2.45 after accounting for actual results from C&I Multi-Family Retrofit a. Significant Variances A significant variance exists between planned and preliminary total benefits. Preliminary total benefits were 31 percent lower than planned because of the difference in way the Company calculated planned and actual non-resource benefits. The Company planned with custom non-resource benefits for all measures; however, the PA Common Assumptions working group decided that because the core initiative is implemented in the same way as the Residential Multi-Family Retrofit core initiative, the residential non-resource benefits should be applied to the majority of measure types (with the exception of any custom measures). Since residential nonresource benefits are lower than custom non-resource benefits, the total benefits for this initiative were lower than planned. Moreover, the Company installed a large number of in-unit lighting measures, which as explained in the variance explanation provided in the Residential Multi-Family

57 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 1, Significant Variances & Cost-Effectiveness Page 14 of 15 Retrofit core initiative, have lower than planned preliminary gross savings due to the results of the 2013 National Grid Multifamily Program Gas and Electric Impact Study and the Multifamily Program Improvement Strategies: Preliminary Results study (included as Attachment 4D, Studies and 16-14). These lower than planned gross preliminary savings contribute directly to the result that preliminary electric benefits are lower than planned. Electric benefits are part of what makes up total benefits, which as a result contributed to preliminary total benefits being lower than planned In response to the above variances, the Company is working with its vendors to ensure we are pursuing all energy efficiency opportunities while increasing the diversity of measures installed to maximize savings and benefits while reducing transaction costs. The Company will monitor this core initiative s activity for the remainder of the plan term and determine if a midterm modification or EEAC review is necessary. The Company is projecting to achieve its savings and benefits goals by the end of the Three-Year Plan term for this core initiative. b. Program Cost-Effectiveness The actual 2016 benefit-cost ratio for the C&I Multi-Family core initiative is The projected benefit-cost ratio for the plan term is 0.59 after accounting for actual results from The Company planned with a 60 percent placeholder realization rate based on the preliminary results from the 2013 National Grid Multifamily Program Gas and Electric Impact Study, which resulted in a planned benefit-cost ratio of 0.89 for this core initiative. Similar to the residential multi-family core initiative, in the C&I multi-family core initiative, the Program Administrators have been offering certain measures that are not cost-effective on their own, but allow the PAs to attract participants and lead to deeper savings. In the past, when the multi-family programs were offered solely through residential, these measures were offset by more cost-effective measures, keeping the core initiative cost-effective overall. While the multi-family vendors continue to screen projects based on the whole building, starting in 2016, the PAs now report a separate C&I multi-family core initiative to reflect C&I meters in multifamily buildings. Due the evaluation results and the lack of more cost-effective residential-metered measures (such as insulation), this core initiative did not screen as cost-effective in 2016.

58 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 1, Significant Variances & Cost-Effectiveness Page 15 of 15 Going forward, the PAs have ceased to offer in-unit fixtures in order to mitigate the cost-effectiveness concerns. However, the PAs will continue to offer common area fixtures, which the PAs believe are necessary to attract owners to participate in the program. While the vendor ensures that the whole building screens as cost-effective, the C&I multi-family program may not be cost-effective on its own during the term. The PAs believe that it is important to continue to offer this core initiative in order to maintain equitable service to multi-family buildings. 4. C&I Upstream Lighting a. Significant Variances There are no significant variances to report for this core initiative. The Company is projecting to achieve its savings and benefits goals by the end of the Three-Year Plan term for this core initiative. b. Program Cost-Effectiveness The actual 2016 benefit-cost ratio for the C&I Upstream Lighting core initiative is The projected benefit-cost ratio for the plan term is 6.04 after accounting for actual results from 2016.

59 APPENDIX 2 Benefit-Cost Ratio Screening Tool Massachusetts Electric Company Nantucket Electric Company d/b/a National Grid Appendix 2, Benefit-Cost Ratio Screening Tool Page 1 of 1 Please see the CD-ROM accompanying this report for the Benefit-Cost Ratio Screening Tool in Microsoft Excel format. As part of ongoing discussions with the Department of Energy Resources initiated pursuant to the Department s Three-Year Plans Order, the electric Program Administrators have provided expanded information on C&I measures in this report version of the BCR Screening Tool. This does not alter the format of the BCR screening models (the measures can still be rolled up to end uses), but does provide additional details on actual C&I performance. Consistent with the Department s Order, C&I data in planned models will continue to be presented at the end use level. There are no changes to the gas BCR models, which already present data at the measure level.

60 APPENDIX 3 Massachusetts Electric Company Nantucket Electric Company d/b/a National Grid Appendix 3, Technical Reference Manual Page 1 of 1 Statewide Technical Reference Manual 2016 Report Version Please see Statewide Appendix 3: Technical Reference Manual 2016 Report Version, filed under separate cover. The electronic version, the Technical Reference Library, is available at:

61 APPENDIX 4 Statewide Evaluation Studies Summary Massachusetts Electric Company Nantucket Electric Company d/b/a National Grid Appendix 4, Statewide Evaluation Studies Summary Page 1 of 1 Please see Statewide Evaluation Studies Summary, filed under separate cover.

62 APPENDIX 5 Performance Incentives Massachusetts Electric Company Nantucket Electric Company d/b/a National Grid Appendix 5, Performance Incentives Page 1 of 1 Please see the attached Performance Incentive calculation tables for calculations of performance incentives based on 2016 achievement.

63 Massachusetts Electric Company Nantucket Electric Company d/b/a National Grid 2016 Energy Efficiency Plan Year Report Appendix 5, Performance Incentives Page 1 of Energy Effiency Performance Incentives (PI) ($2016) National Grid Electric Total Comment 1 Plan Benefits $ 892,934,621 D.P.U through , Exh. Comm-1, App. R (updated December 21, 2015) 2 Threshold Benefits $ 669,700,966 Line 1 * 75% 3 Evaluated Benefits $ 981,047,125 Cost-Effectiveness (2016$): Total Evaluated Benefits 4 Savings Payout Rate $ D.P.U through , Exh. Comm-1, App. R (updated December 21, 2015) 5 Plan Savings Incentives $ 9,422,068 Line 1 * Line 4 6 Cap on Savings Incentives $ 11,777,584 Line 5 * 125% 7 Evaluated Savings Incentives $ 10,351,813 Line 3 * Line 4 if Line 3 is greater than or equal to Line 2. Otherwise, $0. 8 Claimed Savings Incentives $ 10,351,813 Minimum of lines 6 and 7. 9 Plan Net Benefits Excluding PI $ 512,077,468 D.P.U through , Exh. Comm-1, App. R (updated December 21, 2015) 10 Threshold Benefits $ 384,058,101 Line 9 * 75% 11 Evaluated Total Costs $ 396,198,975 Cost-Effectiveness (2016$): Total Resource Costs (which includes Line 12 below) 12 PI (included in Line 11) $ - Estimated Performance Incentive before final 13 Evaluated Net Benefits Excluding PI $ 584,848,150 Line 3 - (Line 11 - Line 12) 14 Value Payout Rate $ D.P.U through , Exh. Comm-1, App. R (updated December 21, 2015) 15 Plan Value Incentives $ 5,608,016 Line 9 * Line Cap on Value Incentives $ 7,010,020 Line 15 * 125% 17 Evaluated Value Incentives $ 6,404,965 Line 13 * Line 14 if Line 13 is greater than or equal to Line 10. Otherwise, $0. 18 Claimed Value Incentives $ 6,404,965 Minimum of lines 16 and Total Planned Peformance Incentive $ 15,030,084 Line 5 + Line Total Claimed Peformance Incentive $ 16,756,778 Line 8 + Line Percent Earned 111%

64 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 6, Demand Reduction Page 1 of 9 APPENDIX 6 Demand Reduction Update I. Statewide Summary In the Massachusetts Joint Statewide Three-Year Electric and Gas Energy Efficiency Plan ( Plan ) the Program Administrators ( PAs ) committed to exploring creative new approaches to cost-effective demand reduction. These potential new approaches are in addition to the significant amount of demand savings planned to be achieved through energy efficiency programs in the Three-Year Plan. See Plan at 19 (577 MW summer demand savings and 618 MW winter demand savings). Consistent with the Plan, in 2016 the Program Administrators assembled a Demand Savings Group ( DSG ) consisting of a small group of interested and qualified experts, to research potential electric and gas demand reduction efforts. Through this highly collaborative and expert driven process, the PAs have considered various approaches to demand demonstration projects, and coordinated with each other to examine various innovative technologies and approaches that could potentially be successfully deployed to address unique opportunities in the Commonwealth. Below is a brief summary of the efforts undertaken by the PAs and DSG in 2016 to investigate potential cost-effective approaches to achieve active demand reduction. The PAs developed the Initial Report on Scope, Task, and Timelines for the Demand Savings Group ( Initial Report ), which was filed with the Department on March 31, This Initial Report sets forth the structure, scope, milestones, tasks, and timeline for the PAs. Throughout the spring and summer of 2016, the Program Administrators held several productive formal and ad hoc meetings with subject matter experts, including vendors, evaluators, and industry experts. During this time, the PAs continued to analyze demand reduction reports and evaluations and review demand reduction strategies deployed in other jurisdictions. In order to fully assess potential demand reduction strategies beyond those used in other jurisdictions, the PAs issued a joint statewide Request for Information ( RFI ) in September 2016 to help assess potential technologies and solutions emerging in the market. The PAs also convened Demand Savings Group meetings, participated in meetings with the Energy Efficiency Advisory Council ( EEAC ) consultants (including a conference call with Council consultant Mary Ann Piette of Lawrence Berkeley National Lab), and supported the Demand Reduction Subcommittee of the EEAC by providing regular updates on the PAs progress, lessons learned, and draft proposals. Below is a list of the formal DSG and Demand Reduction Subcommittee meetings. Additionally, two PAs with approved demonstrations designed and implemented first year field deployments to get experience through the summer of 2016,

65 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 6, Demand Reduction Page 2 of Formal Demand Savings Group Meetings Date February 26, 2016 March 1, 2016 March 7, 2016 May 26, 2016 August 15, 2016 October 21, 2016 December 2, 2016 Topic DSG structure, milestones, tasks, and AESC Update Roundtable with demand response vendors: Enernoc, Comverge, and Weatherbug Wholesale Markets at ISO-NE Distribution and Infrastructure Progress Update, Cost-Effectiveness, Lessons Learned, Priorities, 2017 Demonstration Proposals Demand Response Presentation by Mary Ann Piette of LBNL Gas Capacity and Distribution, and potential for Gas Demand Response under GCA 2016 Demand Reduction Subcommittee Meetings Date Topic February 18, 2016 Subcommittee Charter and Responsibilities, Terminology, PA Analytical Framework, March Report March 10, 2016 PA Report on Roundtable with demand response vendors, Draft Initial Report, AESC Update June 1, 2016 Demonstration Project Update, Cost- Effectiveness, Preview of EEAC presentations October 5, 2016 Demonstration Project Update and 2017 Demonstration Project Proposals December 7, 2016 Milestones and Timelines, Matrix of Research Questions and Technologies Details regarding the various subject matter expert and DSG meetings and/or lessons learned are outlined in the Initial Report, Matrix of Opportunities memorandum dated September 28, 2016, the December 2016 Overview of Proposed/Approved Peak Demand Reduction Demonstration Projections, and the numerous presentations provided to the DSG, the Demand Reduction Subcommittee, and the EEAC.

66 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 6, Demand Reduction Page 3 of 9 Statewide PA Reports and Presentations Date Setting Topic Link 2/18/2016 Demand Reduction Subcommittee Demand Reduction Subcommittee PA Framework & Updates 2/26/2016 DSG DSG Coordination, Scope, Milestones, and Timeline Attachment A 2/26/2016 DSG Draft Milestones Attachment B 3/10/2016 Demand Reduction DSG Update and Attachment C Subcommittee Draft PA Report 3/31/2016 DPU Initial Report of the Demand Savings Group 6/1/2016 Demand Reduction Subcommittee Cost-Effectiveness 6/21/2016 EEAC Update from PAs on Demand Savings Group 8/15/2016 DSG Lessons Learned and Priorities 9/28/2016 Demand Reduction Matrix of Subcommittee Opportunities 10/5/2016 Demand Reduction Seasonal and Load Subcommittee vs. Pricing Priorities 10/19/2016 EEAC Review of Demand Priorities, Timeline Update, and Next Steps 10/21/2016 DSG New Directions in Demand Response by Mary Ann Piette Attachment D Attachment F Attachment G SubCom-PA-Framework- Updates.pdf Report-of-the-Demand- Savings-Group-w-App pdf Savings-Group.pdf Attachment E Priorities-PA-Analysis- 1.pdf Attachment H

67 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 6, Demand Reduction Page 4 of 9 12/2/2016 Demand Reduction Subcommittee Overview of Proposed/Approved Demand Reduction Demonstration Projects 12/2/2016 DSG Natural Gas Systems Overview 12/7/2016 Demand Reduction Subcommittee 2/23/2017 Demand Reduction Subcommittee 2/23/2017 Demand Reduction Subcommittee Upcoming Milestones for Peak demand Reduction Demand Reduction Update & Milestones Demand Reduction Projects Evaluation Plan Update 3/15/2017 EEAC Demand Reduction Update & Milestones Memorandum pdf Attachment I Timeline-2017.pdf Demand-Reduction- Projects-Evaluation-Plan- Update-1.pdf Demand-Reduction- Updates-Milestones pdf Through research, the RFI, and meetings with industry experts, the PAs have sought to identify successful models and innovative demand reduction strategies that could potentially be cost-effectively implemented in Massachusetts. Each electric PA has developed its own demonstration projects designed to test potentially viable cost-effective peak demand reduction technologies/strategies. The gas PAs continue to seek potentially viable gas demand reduction demonstrations that can be appropriately implemented under the GCA and do not rely on using other fuels, such as oil. Using a collaborative approach allows the PAs to collectively test a variety of potential initiatives and leverage each other s results. Consistent with the Department approved Plan, National Grid and the Cape Light Compact deployed their approved demonstration projects in 2016 and worked to build the necessary capabilities for their 2017 demonstrations. National Grid and the Cape Light Compact continuously shared lessons learned and evaluation results, as they became available, with the other PAs to ensure that the full PA team benefitted from these

68 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 6, Demand Reduction Page 5 of 9 early demonstration projects. Leveraging the results of the RFI and lessons learned from collaboration among the PAs and from other pilots around the country, Eversource and Unitil developed their own demonstration projects in 2016, being conscious to minimize overlapping efforts in order to broaden the statewide scope of demonstration projects, sought and received EEAC approval, and are currently seeking approval of the Department of Public Utilities to proceed with implementation. As evidenced in the matrix below and the Statewide PA Reports and Presentations and Documents listed above, through collaboration, the PAs are able to use innovative approaches to collectively deploy and test several technologies in a strategic manner, while minimizing costs. The projects use various technologies and vendors, and include direct load control, energy management systems, battery storage, thermal storage, behavior, training, and permanent load shift approaches. The PAs plan to implement, evaluate and analyze these demonstration projects in order to inform potential designs of full scale demand reduction programs to be implemented at the earliest appropriate time (e.g., during the term). Matrix of Demonstration Projects PA Residential C&I Small Mid Large National WiFi Tstat DLC WiFi Tstat DLC WiFi Tstat DLC Interruptible load Grid (Central A/C) approaches Eversource EMS Lighting/HVAC controls WiFi Tstat DLC CLC Unitil WiFi Tstat DLC (Central A/C) Behavioral DLC on DMSHP Battery Storage for existing solar PV systems Key DLC Direct Load Control DMSHP Ductless Mini-Split Heat Pumps BTM Behind the Meter EMS Energy Management System BTM thermal storage Software & Controls Onsite training Process audits Batteries Thermal storage BTM thermal storage Software & Controls Onsite training Process audits Real time info Batteries Thermal storage Demand response Operations Changes to Reduce Demand

69 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 6, Demand Reduction Page 6 of 9 II. PA-Specific Summary of Demand Reduction Demonstration Projects and Proposals A Demonstration Projects 2016 activity was mostly residential in nature with the deployment of the National Grid Residential Direct Load Control (DLC) demonstration project. The Company also launched a DLC demonstration with small business customers in August of The DLC project aims to test the impact of calling demand response (DR) events using direct load control of connected devices in homes. The DLC demonstration project is testing various thermostats, the ability to actively reduce demand (KW), the magnitude of that active demand reduction, as well as testing marketing messages, identifying the primary motivation for customers, and measuring participation rates during events. National Grid released the demonstration project in May of 2016, following the Department s order on January 28, 2016, to enroll National Grid electric service customers with Wi-Fi thermostats and central air conditioning units already installed in homes, which may or may not have been incentivized by through EE programs. Over the course of the summer, 1,782 devices enrolled in the DLC demonstration offering. National Grid's Residential Wi-Fi Thermostat DR DLC approach includes two demonstration offerings: ConnectedSolutions (CS) and Rush Hour Rewards (RHR). Each offering varies in thermostat model, event attributes (frequency, duration), incentive mechanism, among others. In 2016, the demonstration project relied upon an existing device approach reaching customers with installed Wi-Fi thermostats and incentivizing them to participate in the demonstration, as well as reaching customers through the Home Energy Services Program. In 2017, the Company plans to reach a greater scale of customers through both channels as well as introducing new Wi- Fi thermostats and devices like Wi-Fi Hot Water heaters to the demonstration. Surveys of participants experience, motivations, and expectations were conducted along with measurement of impacts, participation and opt-out rates to provide an overall picture of customer acceptance and reduction impacts. This work is being conducted through the evaluation contractor following the statewide evaluation framework. The 2016 Residential Wi-Fi Thermostat DR Evaluation Final Report, authored by Navigant, is included in this Appendix. The final report details the activities and findings of the 2016 program year. The final report details the following in greater granularity and depth: Customer Enrollments 1,782 thermostats were enrolled as of Sep 30, 2016 Customer Satisfaction

70 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 6, Demand Reduction Page 7 of 9 Over 85% of customers stated that they would participate in these programs next year. Opt Out Rates Considerable differences in participation are seen for each thermostat type. o o o ecobee thermostats had few opt outs or connectivity issues. Together, opt outs and connectivity issues accounted for less than 15% of total participation for ecobee users. Honeywell thermostats had few opt outs but more connectivity issues (about 20%) than ecobee or Nest. Nest had few connectivity issues but, on average, more than 20% of Nest users opted out of events. Savings Impacts The maximum DR occurred on August 26, 2016, with a total DR of 775 kw. Navigant estimates there could have been 1 a DR of 650 kw on August 12, 2016 (the 2016 ISO-NE system peak day) had an RHR demonstration event been called that day Navigant s evaluation of the Company s Residential Wi-Fi Thermostat DR demonstration evaluation found it was successful in testing the effectiveness of thermostats as a residential DR technology and customer acceptance of the program offering. The evaluation shows promise for thermostats as a residential DR technology, though important differences exist across different thermostat models and customer acceptance has not been adequately tested due to the relatively mild temperatures on event days. In addition, the evaluation revealed important findings regarding how various program design features affect customer acceptance of the DR offerings and resulting reductions. National Grid is now positioned to leverage the experience of the 2016 program year to further test the technology and the Residential Wi-Fi Thermostat DR demonstration offering in The evaluation resulted in several key findings and recommendations (described in Table 7-1 of the report include in this Appendix) that will inform future program planning. 1 The RHR demonstration evaluation methodology used August 12 th as a control day so no event was called. In a normally operating program the trigger criteria for RHR would have been met and the DR activity would have likely resulted in 650 kw reduction on the peak day.

71 B Demonstration Projects Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 6, Demand Reduction Page 8 of 9 For 2017, the DLC demonstration project intends to retain enrolled customers, and enroll more thermostat devices, both the residential and small business customer s devices. The DLC demonstration project also plans to add new device integration to the platform for devices like water heaters, washers, dryers, dehumidifiers, and mini-splits. The Company intends to modify the demonstration offering based on learnings from the 2016 deployment and 2016 Residential Wi-Fi Thermostat DR Evaluation Final Report. These modifications include changes to program design (event notification), event criteria (number, duration, and trigger), and improvements to the customer experience and engagement in a search for scale in terms of controllable demand reduction. Evaluations of improvements and additions will be conducted in parallel with implementation in order to have actionable results ahead of the planning period. Demonstration project efforts for the Commercial and Industrial sector consisted of planning in 2016 for the 2017 recruitment of customers and deployment in the summer of The demonstration project was designed to attract incrementally more megawatts than currently exists in the ISO-NE Forward Capacity Market and target system peaks. Through the use of preferred curtailment service providers (CSPs), customers, without an ISO-NE obligation, will commit to active demand reductions to be delivered when called during summer 2017 events. National Grid intends to attract 40 MW of active demand reduction for approximately 20 hours between 1 and 5pm on summer weekdays to learn about customer acceptance and reliability of this dispatchable resource. Evaluation of C&I activities will be conducted in parallel with implementation in order to have actionable results ahead of the planning period. C. Copies of PA-Specific Presentations Date Setting Topic Link 3/15/2017 EEAC National Grid Residential and C&I Demonstration Update 2/23/2017 Demand Reduction Subcommittee National Grid Residential and C&I Demonstration Update 10/19/2016 EEAC National Grid Residential Demonstration Update content/uploads/national-grid-residential-ci- DR-Demonstration-Projects.pdf content/uploads/national-grid-residential- Demand-Reduction-Demonstration-Project.pdf content/uploads/ngrid_resi_octeeac_ pdf 10/19/2016 EEAC National Grid

72 Massachusetts Electric Company and Nantucket Electric Company d/b/a National Grid Appendix 6, Demand Reduction Page 9 of 9 C&I Demonstration Update content/uploads/ngrid_ci_octeeac_draft_ pdf

73 Appendix 6, Att. A Page 1 of 19 PA Demand Savings Group Coordination

74 Appendix 6, Att. A Page 2 of 19 Overall Organization Full EEAC Small group of councilors, led by DOER EEAC Demand Sub- Committee Frequent communications and exchange of ideas PA Demand Savings Group Summer System Winter System Distribution Core group referenced in term sheet invited to all meetings but attendance not mandatory Other TBD* *Evaluation, cost-effectiveness, cost recovery Will leverage other working groups like AESC and CAM as necessary 2

75 Appendix 6, Att. A Page 3 of 19 Internal Organization Goal is for group to be agile and expert - Less focused on process, more on substance No need for a formal steering committee - Mike Goldman and Ezra McCarthy as overall PA leads - Mike and Ezra heavily involved with liaising with EEAC subcommittee and wider EEAC when appropriate - Mike and Ezra responsible for liaising with sub-groups - There should still be a representative from each electric PA and one representative for all gas PAs Approximately four sub-groups comprised of subject matter experts and PA representatives - Summer System - Winter System - Distribution - Other - TBD 3

76 Appendix 6, Att. A Page 4 of 19 Sub-Group Composition* *ILLUSTRATIVE ONLY, NO ONE CONFIRMED. SEEKING ADDITIONAL INPUT. Sub-Group Person Organization Role Summer System Peak Greg Geller Enernoc Director Summer System Peak Eric Winkler ISO-NE Technical Manager System Planning Summer System Peak Henry Yoshimura ISO-NE Director, Demand Resource Strategy Summer System Peak Summer System Peak Summer System Peak Someone from CA and dealing with duck curve Someone from NY that is working on REV Someone from First Fuel or Retroficiency or Nest (load disaggregation) Winter System Load Eric Winkler ISO-NE Technical Manager System Planning Winter System Load Someone from ICF that worked on ISO studies** Distribution Peak Keith Jones or eqv Eversource System Planning Engineer Distribution Peak Dave Dobratz Eversource DR Implementation, CT Distribution Peak Bill Kallock Integral Analytics VP, Grid Analytics Distribution Peak Lindsey Foley National Grid Invite individual councilors with specific expertise as necessary; Jeremy Newberger to assist on AESC Others: Brett Feldman, Navigant (PLMA); Dunsky on geo-targeting; Richard Baxter, Board member of Energy Storage Association ** 4

77 Appendix 6, Att. A Page 5 of 19 Note on Sub-Group Participation Subgroup experts may include representatives from relevant industries and businesses. To the extent practicable, subgroups will include representatives from multiple businesses to avoid the appearance of a competitive advantage. Business representatives will be asked to share their industry expertise but are not guaranteed to be selected to run demand programs or otherwise participate in the implementation of demand programs developed by the Group. 5

78 Appendix 6, Att. A Page 6 of 19 Identify Objectives Recommend topic for early group meeting convene DSG to identify core objectives Determine what Group wants to achieve and then develop appropriate work plan - Reduce costs to customers? (System wide or individual?) - Use demand more efficiently? - Increase reliability of the system? - Others? How do we do it? - Reduce Installed Capacity Requirement (ICR)? - Reduce or reallocate ICAP tag? - Reduce peak to average energy ratio? - Flatten load curves? - Others? As we think of objectives, we must keep in mind the materiality and relevance of the potential solutions 6

79 Appendix 6, Att. A Page 7 of 19 Possible First Meetings ISO-NE - A first priority and key stakeholder - Get a better understanding of how EE impacts ICR and ICAP - Get a better understanding of how capacity requirements impact costs, i.e. how costs are set - Get a better understanding of the timing lag associated with actions and reflections in price - Get a better understanding of the winter peak pricing issue - Understand what is happening in other jurisdictions, including CT and RI (possible to look at non ISO-NE areas as well, such as NY) 7

80 Appendix 6, Att. A Page 8 of 19 Possible First Meetings Retroficiency / First Fuel / Nest* Get a better understanding of end use disaggregation and the actual composition of load This will be critical in understanding what measures and strategies can help achieve our objectives Get a better understanding of winter load * Coordinate with DOER and potentially piggyback off of their pilot 8

81 Appendix 6, Att. A Page 9 of 19 Possible First Meetings Large C&I Customers with high kw demand and relatively inefficient use of demand - Use TOU data to identify customers with this usage pattern - Understand what factors are driving this usage pattern and what types of solutions might mitigate this inefficient use of demand - Potentially work with Bob Rio and other key stakeholders/ experts Load Duration Chart Peak Demand Vs Percent Occurance kw % 4% 8% 12% 16% 20% 24% 28% 32% 36% 40% 44% 48% 52% 56% 60% 64% 68% 72% 76% 80% 84% 88% 92% 96% 100% Inefficiecnt Efficient 9

82 Appendix 6, Att. A Page 10 of 19 Possible First Meetings Software and implementation vendors that have developed load flattening programs This example is from Integral Analytics 10

83 Appendix 6, Att. A Page 11 of 19 Possible First Meetings Software and implementation vendors that have developed load flattening programs This example is from Integral Analytics 11

84 Appendix 6, Att. A Page 12 of 19 Deliverables by End of Q1 Structure of Group Scope of Group Milestones Timelines From the Term Sheet:.the PAs will provide a report to the Council setting forth the specific scope, tasks, and detailed timelines for this group by the end of Q

85 Appendix 6, Att. A Page 13 of 19 Structure of Group In process, described on previous slides 13

86 Appendix 6, Att. A Page 14 of 19 Scope of Group Review 3 distinct issues associated with peak demand Summer system peak, winter system load, distribution Long term strategy for flattening load Actionable projects focusing on C&I to move towards those goals Evaluate potential of residential programs SUBJECT TO ADDITIONAL INPUT 14

87 Milestones Appendix 6, Att. A Page 15 of 19 Suggested milestones below in no particular order, specific milestones have not yet been discussed or agreed upon. Provide background and context of problem Form subgroups Receive recommendations from sub groups Develop cost effectiveness screening Set evaluation protocols Identify measures with most potential Reassess milestones as appropriate Put demonstration projects in field (When? DOER funds?) Develop cost recovery and incentive structure Report results from NGRID and CLC demonstration projects 15

88 Timelines Appendix 6, Att. A Page 16 of 19 Timelines will be developed and put against specific milestones that are identified as relevant to the core objectives of the Group Milestone Q Q Q Q Q Q Q Q Q Q Q Q Quarterly reports to sub-committee 16

89 Appendix Appendix 6, Att. A Page 17 of 19

90 Appendix 6, Att. A Page 18 of 19 Analytical Framework Initial goal is to develop a strategy and analytical framework to dictate how we should be thinking about issues surrounding demand reductions Overarching Methodology Identify the problems Evaluate solutions Analyze costs and risks Identify system and customer challenges What are the specific drivers of those challenges? Identify where in the system those challenges are occurring? Who and where should we target? What types of technologies and solutions will customers adopt? Are there timing and/or geographic constraints? Is the solution material to overall customer and system issues? How much will this cost? Are there any unforeseen risks? What additional benefits can be quantified? Are there issues with T&D planning? 18

91 Appendix Appendix 6, Att. A Page 19 of 19 The PAs and the Council recognize the growing economic importance of achieving demand reduction goals and mitigating winter and summer peaks. The Term Sheet does not include targets for potential new statewide summer and winter demand peak reduction initiatives, and does not reflect costs, benefits or incentives associated with such initiatives. Subject to open meeting law requirements, PA representatives will work with a small Demand Savings Group that includes the DOER, the Attorney General s Office, the Low-Income Energy Affordability Network, interested expert and qualified stakeholders and the Council s consultants to explore approaches to cost-effective new demand reduction/peak reduction electric and gas initiatives. This Demand Savings Group will be addressing challenging and important matters, and all parties are committed to the successful development and actual implementation in-the-field during the Plan period of new demand/peak reduction initiatives. To ensure that this in-the-field implementation goal is reached, the PAs will provide a report to the Council setting forth the specific scope, tasks, and detailed timelines for this group by the end of Q This report will also provide an anticipated, high-level in-the-field deployment schedule for based upon the then most current information. Deployment in-thefield will be subject to approval by the Department of Public Utilities and confirmation of cost-effectiveness. The PAs will also provide a report to the Council on the ongoing super peak avoided cost study on or before December 31, 2015 (if that study is delayed, this PA deliverable date will be appropriately adjusted). 19

92 Milestones Appendix 6, Att. B Page 1 of 2 Suggested milestones below in no particular order, specific milestones have not yet been discussed or agreed upon. Milestone Tasks Summary of background and provide context of problems/issues Refine analytical framework Develop costeffectiveness screening Obtain ISO forecasts of demand vs. energy Show level of demand resources in FCM over time (to give sense of scale) Show historical peaks and prices Show current Pricing and Rate design and implications Prepare summary of background information for reference purposes Solidify initial analytical framework Answer questions posed in the framework Analyze other approaches Obtain or estimate costs of DR approaches Identify avoided costs applicable to DR and differences from current EE methodology Set evaluation protocols Release RFQ for short term evaluation from existing vendors Issue RFP for longer term evaluation team Develop cost recovery and incentive structure Review methodologies/structures from other jurisdictions Propose methodology to EEAC and DPU 1

93 Milestones Appendix 6, Att. B Page 2 of 2 Suggested milestones below in no particular order, specific milestones have not yet been discussed or agreed upon. Milestone Tasks Engage Experts Reach out to potential experts Arrange meetings as appropriate Receive, develop, and revise recommendations Identify approaches with most potential Put demonstration projects in field Determine demand reductions from different measure classes Analyze each measure classes or approaches kw reduction coincidence with certain peaks Plan Approach/Program Design Select customer, technology, and vendor Install equipment and metering as necessary Deliver program / call events as appropriate Measure results Reassess milestones Ensure timelines are appropriate Ensure that milestones are useful in meeting goals Report results from demonstration projects Presentation to Demand Reduction Sub-Committee Assess potential for broader program application 2

94 Appendix 6, Att. C Page 1 of 18 Demand Savings Group Update and Draft PA Report to EEAC Presentation to the Demand Reduction Subcommittee March 10, 2016

95 Appendix 6, Att. C Page 2 of 18 Discussions with Experts PAs have held several productive meetings with industry experts, including internal experts, demand response program implementers, and ISO-NE. Takeaways include: Challenges to demand response exist (wholesale market rules, volatility and unpredictability of prices, time lag for impact, differences in customers and building stock, and climate) Demand reduction programs in Mass. will likely have higher costs and lower benefits compared to other jurisdictions Despite challenges, there may be opportunities for successful programs and entities are willing to work with the DSG to address challenges Successful demand programs exist PAs do not need to reinvent the wheel PAs have worked with TCR to complete AESC addendum 2

96 Appendix 6, Att. C Page 3 of 18 Summer and Winter Peak Summer Peak Load Highest peaks and most potential for benefits Currently, most residential demand response programs focus on single family homes with central air conditioning (multi-family do participate in certain situations) o Get additional benefits when coupled with other measures C&I programs are designed based on particular customer s discretionary load and the ability/willingness to shift load Current active DR in ISO-NE market are primarily facilities with behind the meter generation Winter Peak Pricing Winter peak pricing is not necessarily coincident with winter peak load Current active DR programs must use non-natural gas alternatives ISO-NE winter reliability program is expected to continue need to show incremental reductions above capacity supply obligation Less opportunities available compared to summer 3

97 Advanced Meters and Real Time Appendix 6, Att. C Page 4 of 18 Data AMI meters can provide helpful data but are not necessary can implement certain demand reduction without AMI Time of use rates can help send better price signals certain demand reduction programs do not require time of use rates Real-time price signal information to customers is not necessary programs should provide some form of after-the-fact cost savings information 4

98 Appendix 6, Att. C Page 5 of 18 Wholesale Market Background New England is different than other jurisdictions in terms of industry, grid, climate, and wholesale market rules Texas lots of large industry with discretionary load PJM no telemetry requirement for active DR, different market in terms of transmission and generators ISO-NE was an early actor in DR field successful programs were deployed in CT ISO-NE paid for metering active demand response participation has declined from 2,000 MW to 300 MW mainly behind meter generation ISO-NE has recently changed some rules that effect market participation ISO-NE is moving forward with market integration in accordance with the recent Supreme Court decision Offsetting demand could help Commonwealth s efforts under GWSA 5

99 Appendix 6, Att. C Page 6 of 18 Wholesale Market Potential Potential to Impact ICR (installed capacity requirement) Energy efficiency and active DR are reconstituted for ICR purposes Reduce ICR by reducing demand but not bidding into the FCM market o Section 12.8 Reduce cost-allocation and ICAP tag by reducing demand during annual system peak (one hour period based on actual meter data) o o Hard to predict when this will occur Not direct pass through to customer Ways to Participate Wholesale Market Bid active demand response into FCM Participate as passive DR in FCM Participate in energy market Do not participate in the wholesale market but put downward pressure on prices by lowering peak demand 6

100 Appendix 6, Att. C Page 7 of 18 FCM Participation FCM participation allows project to be eligible for capacity payments; however, there are financial risks Qualification process for active demand response Provide granular level information, such as distribution zone (~7 distribution zones in Massachusetts). Demonstrate deliverability in distribution zone o Project deliverability is not guaranteed Bid size may be trimmed during ISO due diligence process Demonstrate likelihood of the project coming to fruition Meet telemetry requirements o Hard for residential but there may be alternative approaches Deadlines for participating in the market May seek to bid into primary FCA and/or the annual reconfiguration auctions Process can take at least 14 months (can operate and reduce customer demand during time period complete process for FCM revenue payments) o Process includes: a show of interest, qualification, auction, and then delivery. o Next show of interest deadline for primary auction is April 22, 2016 for Feb 2017 auction and delivery in 2020/2021 o There are opportunities to advance commercialization date 7

101 Appendix 6, Att. C Page 8 of 18 Considerations and Next Steps Need to assess the potential value of a demand reduction program holistically wholesale, distribution, and customer levels Assess both benefits and detriments of proposed approaches, including unintended consequences Consider both long and short term benefits Next steps: Schedule additional meetings with demand response experts/consultants Schedule distribution topic based meeting with system planning experts Review results of RFQ for short term evaluator Review and analyze suggested recommendations and high level strategies Implement approved demonstration projects Determine cost effectiveness of various strategies 8

102 Appendix 6, Att. C Page 9 of 18 Draft Initial Report Plan and Term Sheet The PAs will provide a report to the EEAC setting forth the specific scope, tasks, and detailed timelines for the demand savings group by March 31, DPU Order On or before March 31, 2016, the PAs must provide the Department with a copy of the report. In addition, the PAs must submit to the Department for information purposes copies of any future findings and reports from the demand savings group. The PAs have circulated a working draft of the Initial Report. Additional information will likely be added and further formatting and revisions are expected, including: o Gantt chart or similar for the timeline o Synthesize discussion of lessons learned from initial meetings (currently in bullet, outline, and notes format) o Outline potential benefits of this effort o Include next steps in conclusion 9

103 Appendix 6, Att. C Page 10 of 18 Draft Initial Report - Format Introduction general summary of background and purpose of Initial Report Organizational Structure explains the organizational structure of the Demand Reduction Subcommittee and the Demand Savings Group Scope outlines the scope and purpose of DSG Goals and Objectives lists the four high level goals and eight objectives for the DSG to further the group s efforts to meet the goals 10

104 Appendix 6, Att. C Page 11 of 18 Draft Initial Report - Format Milestones and Tasks Timeline initial timeline for each task based on current estimates PAs will reassess and make adjustments as appropriate o changes in the timeline will be shared with the Demand Reduction Subcommittee complete timeline for all demonstration projects approved by DPU have been included in Initial Report potential additional demonstration projects not included in timeline o review and analyze information received to identify potential projects and determine whether such additional demonstration projects are appropriate o ensure existing work is leveraged and not duplicated o assess need for DPU approval o will add to timeline as PA begins to design project 11

105 Appendix 6, Att. C Page 12 of 18 Draft Initial Report - Format Progress to Date provide summary of some challenges identified and lessons learned to date highlight some materials reviewed by the PAs and meetings held with experts section is mostly an outline/notes in current draft Conclusion 12

106 Appendix Appendix 6, Att. C Page 13 of 18

107 Appendix 6, Att. C Page 14 of 18 Background Trends from ISO-NE ISO-NE does transmission planning on a 10 year outlook Projections are based on serving the highest peak day (think of third or fourth day of heat wave - 98 degrees) - Highest summer peak Highest winter peak 2004 ISO-NE projects that for the year 2025 that without solar PV and passive demand reduction (primarily EE) that capacity needs would be in the mid-34,000 MW range. With projected solar PV and passive demand reduction the projected capacity demand is about 29,000 MW. Energy forecasts are projected to stay relatively flat, possibly deep negative - ISO-NE said our EE programs are a big driver of that forecast 14

108 Appendix 6, Att. C Page 15 of 18 Energy Forecast 15

109 Appendix 6, Att. C Page 16 of 18 Capacity Forecast 16

110 Appendix 6, Att. C Page 17 of 18 Analytical Framework Initial goal is to develop a strategy and analytical framework to dictate how we should be thinking about issues surrounding demand reductions Overarching Methodology Identify the problems Evaluate solutions Analyze costs and risks Identify system and customer challenges What are the specific drivers of those challenges? Identify where in the system those challenges are occurring? Who and where should we target? What types of technologies and solutions will customers adopt? Are there timing and/or geographic constraints? Is the solution material to overall customer and system issues? How much will this cost? Are there any unforeseen risks? What additional benefits can be quantified? Are there issues with T&D planning? 17

111 Appendix Appendix 6, Att. C Page 18 of 18 The PAs and the Council recognize the growing economic importance of achieving demand reduction goals and mitigating winter and summer peaks. The Term Sheet does not include targets for potential new statewide summer and winter demand peak reduction initiatives, and does not reflect costs, benefits or incentives associated with such initiatives. Subject to open meeting law requirements, PA representatives will work with a small Demand Savings Group that includes the DOER, the Attorney General s Office, the Low-Income Energy Affordability Network, interested expert and qualified stakeholders and the Council s consultants to explore approaches to cost-effective new demand reduction/peak reduction electric and gas initiatives. This Demand Savings Group will be addressing challenging and important matters, and all parties are committed to the successful development and actual implementation in-the-field during the Plan period of new demand/peak reduction initiatives. To ensure that this in-the-field implementation goal is reached, the PAs will provide a report to the Council setting forth the specific scope, tasks, and detailed timelines for this group by the end of Q This report will also provide an anticipated, high-level in-the-field deployment schedule for based upon the then most current information. Deployment in-thefield will be subject to approval by the Department of Public Utilities and confirmation of cost-effectiveness. The PAs will also provide a report to the Council on the ongoing super peak avoided cost study on or before December 31, 2015 (if that study is delayed, this PA deliverable date will be appropriately adjusted). 18

112 Appendix 6, Att. D Page 1 of 6 Active Demand Reduction Cost- Effectiveness Considerations Demand Reduction Subcommittee June 1, 2016

113 Precedent Appendix 6, Att. D Page 2 of 6 DPU A, Phase II January 31, Program Benefits Avoided Capacity summer-period & winter-period Avoided Energy summer-period peak/off=peak & winter-period peak/off-peak Avoided Transmission Avoided Distribution Capacity DRIPE Energy DRIPE Non-Electric Benefits Resource Benefits Non-Resource Benefits Additional Analysis to seize more benefits Avoided Energy at Super Peak - Complete Reduced ICR (Installed Capacity Requirement) - >3 years from program start Reduce Cost Allocation for MA - >2 years from program start 2

114 Diagram of Benefits & Costs Appendix 6, Att. D Page 3 of 6 DR Cost-Effectiveness Example Generation Avoided Energy ($0.098/kWh) Avoided Energy DRIPE ($3.29/kWh) Avoided Capacity ($153.89/KW-yr Other Potential Benefit Streams 100 KW of C&I Load Curtailment DR for 40 summer hours in 2017 Estimate - Not Actuals DR Resource - Load Curtailed Hours available 100 KW 40 hrs Costs of Generating, Transmitting, and Distributing Energy Distribution System Vendor Transmission System Customer National Grid Avoided Tx ($10.74/KW-yr) Avoided Dx ($84.30/KW-yr) Implementation Costs STAT, PPA & Marketing Vendors Incentives Staff Marketing Planning Customer Costs Changes to Ops Loss of Productivity Overtime System Config. Savings & Benefits - flow back to the system - ICR Reduction - Reduced Cost Allocation to MA Avoided Cost Benefit $/unit Benefit Value Avoided Energy ($/kwh) $ $ Avoided Energy DRIPE ($/kw $ 0.06 $ Avoided Capacity ($/KW-yr) $ $ 15, Avoided Tx ($/KW-yr) $ $ 1, Avoided Dx ($/KW-yr) $ $ 8, Total Benefit $ 25, Estimate - Not Actuals DR Resource - Load Curtailed Hours available BCR = KW 40 hrs Cost to Deliver From Plan $ $/KW-yr FCA 8 ( ) $ $/KW-yr Total Cost to Deliver $ 15,

115 Concerns Appendix 6, Att. D Page 4 of 6 Persistence Assume 1 Year Measure Life Unlike EE in this way Similar to the OPower Behavioral approach FCM Requirement Need to bid into FCM in order to claim Avoided Capacity Benefit Largest portion of Avoided Benefits (~60% in previous example) With FCM comes complication, expense, and risk Treatment of Avoided Distribution Costs Grid Mod did not include distribution benefits ~33% in previous example Planning perspective that it must have a 5 year track record in order to factor into planning and actual defer infrastructure How does the timing of ICR reductions and Cost Allocations applied back to the State effect what can be counted? 4

116 Further Reading Appendix 6, Att. D Page 5 of 6 A Framework for Evaluating the Cost-Effectiveness of Demand Response: CA 2010 Demand Response Cost Effectiveness Protocols: pdf 5

117 Thank you Appendix 6, Att. D Page 6 of 6

118 Appendix 6, Att. E Page 1 of 8 Demand Savings Group Handout Monday, August 15, 2016

119 Lessons Learned Appendix 6, Att. E Page 2 of 8

120 Progress on Analytical Framework Appendix 6, Att. E Page 3 of 8 Identify the Problems ISO Level Amount of capacity Cost of capacity Distribution Level System constraints, planning horizons Customer Level Evaluate Solutions Review potential solutions 2016 Demonstrations - Enrolling Now Analyze costs, risks, and benefits Cost effectiveness screening Steps Taken: Conducted meetings with: ISO-NE System planning engineers PA customers Reviewed available documents Worked with Fraunhofer to model measures Talked with PAs in other jurisdictions Met with vendors Leveraging existing program pathways Using learnings from others both in-state and in other jurisdictions Talked to outside vendors about models for DERs in other jurisdictions Revisited whether existing avoided costs are appropriate and are optimized Developed draft screening models Lessons Learned: Changes in ISO market rules present opportunities and challenges Capacity v. Energy only Opportunity for programs to impact ISO forecasts without bidding into market but potential cost effectiveness issues System planners need to know reliability of reductions within 5 year planning horizon May be able to impact planning indirectly by lowering peak demand Large customers are concerned about ICAP tags and demand charges Dispatchable assets have highest peak coincidence reduction values Some customers want choice, control and predictability Residential customers with Wifi Tstats connected to central AC have a high potential for load reductions within the sector Tstat manufacturers have customer experiences that they want to maintain even with BYOD approach Discussed in detail later in presentation 3

121 Initial Conclusions/Lessons Learned Appendix 6, Att. E Page 4 of 8 There are multiple ways to impact system peak with differing costs, risks, and potential benefits. Bidding demand response savings into capacity market includes strict telemetry requirements, a must offer requirement in the energy markets, and pay-for-performance standards which entail penalties. There is inherent risk in this option but could deliver significant benefits. Program models in other jurisdictions have been successful at lowering demand but have faced challenges in doing so, especially related to peak demand. Some jurisdictions have seen increased opt-outs/overrides during extreme heat waves (when peak demand reduction is needed most) Other ISOs have different market rules, influencing other PAs willingness to participate in wholesale markets. Need to address cost-effectiveness questions. Current B/C model used for EE captures most costs and benefits moderate refinements needed to address granular temporal nature of active demand reduction. Avoided Capacity and Avoided Distribution benefits are the greatest currently understood proportion of active demand reduction benefits. Other jurisdiction models and assumptions are based on their particular energy markets & rules, utility structure, PUC requirements which are different from Massachusetts. E.g., California does not have a capacity market. The avoided cost of capacity is set by the California PUC and it is above the market capacity rate. The presently used cost-effectiveness model may require hourly values for energy. Additional benefit streams will need to be built into the model when identified and quantified. 4

122 Appendix 6, Att. E Page 5 of 8 Some Data that has Informed Priority Areas

123 Why Focus on Summer? Appendix 6, Att. E Page 6 of 8 Top Ten Highest Hourly LMPs in 2015 Top Ten Highest System Loads in 2015 Date Hour Real Time LMP Date Hour System Load 5/10/15 21 $ /20/ ,437 8/15/15 17 $ /29/ ,437 2/21/15 19 $ /29/ ,399 1/03/15 18 $ /08/ ,368 9/07/15 18 $ /20/ ,365 8/24/15 17 $ /20/ ,357 8/24/15 16 $ /08/ ,338 9/08/15 15 $ /08/ ,291 9/08/15 16 $ /20/ ,291 12/21/15 18 $ /09/ ,275 Highest hourly LMPs occur throughout the year In 2015: 6 of the 10 highest LMPs were in the summer 1 in Spring 3 in Winter However, highest system loads are consistently in the summer and within consistent time frames 6

124 Peaks are unpredictable Appendix 6, Att. E Page 7 of 8 # of Occurrences Top 1% of LMPs in 2015 The top 1% of hours, in terms of LMP, occur throughout the day There some groupings of hours but still not consistent Hard to develop programs around Hour Ending A comparison of Day Ahead vs Real Time LMP shows that the Real Time LMP of the top 1% of hours is on average 241% higher than the Day Ahead LMP 7

125 Peaks are not sustained Appendix 6, Att. E Page 8 of 8 LMPs for days with top ten highest hourly LMPs in $/MWh Hour Ending Prices spike for an hour and then come back down Difficult to design a program around unpredictable hours and when you can not give much advance notice Most programs are designed to last multiple hours, you may be over paying if you only need the reduction for an hour 8

126 Appendix 6, Att. F Page 1 of 3 Matrix of Opportunities Prioritization of Research Objectives In the INITIAL REPORT ON SCOPE, TASKS, AND TIMELINES FOR THE DEMAND SAVINGS GROUP submitted on March 31 st, the PAs listed three main areas of preliminary inquiry summer peak demand, winter peak pricing, and distribution related issues. At this time, the PAs are still evaluating potential solutions to the various issues associated with each one of the topics listed above but have begun to prioritize certain elements. At this time, summer peak demand issues are being prioritized for further exploration and testing. This decision reflects the fact that the highest system loads tend to occur in the summer months, meaning that the amount of capacity procured in the Forward Capacity Market (FCM) is driven by summer usage. Additionally, many of the highest Real Time LMP hours occur in the summer (please see table 1). Focusing on summer months allows the PAs to potentially impact both capacity costs and some of the highest hourly energy costs. Summer months usually contain large amounts of discretionary load, that is to say load that can be adjusted with minimal customer operational interference. This usually manifests itself in AC load and there are many commercially viable technologies and solutions to address this load that can be tested for customer adoption. Table 1. Top Ten Hourly LMPs and System Loads in 2015 Top Ten Highest Hourly LMPs in 2015 Top Ten Highest System Loads in 2015 Date Hour Real Time LMP Date Hour System Load 5/10/15 21 $ /20/ ,437 8/15/15 17 $ /29/ ,437 2/21/15 19 $ /29/ ,399 1/03/15 18 $ /08/ ,368 9/07/15 18 $ /20/ ,365 8/24/15 17 $ /20/ ,357 8/24/15 16 $ /08/ ,338 9/08/15 15 $ /08/ ,291 9/08/15 16 $ /20/ ,291 12/21/15 18 $ /09/ ,275 Strategies specifically focused on distribution issues are still of interest but are not a high priority at the moment. Measures that have limited (or negative) energy efficiency impacts, have demand only impacts, and are utilized to offset specific distribution projects, are perhaps better categorized as a distribution asset. Accordingly, these assets may be more appropriately paid for and compensated as distribution assets. While the PAs strive to capture all cost effective energy efficiency and demand reduction savings, geo-targeting specific areas raises questions surrounding spending a disproportionate amount of budget on a limited geographic area. Additionally, many similar distribution related issues are being considered in the PA s Grid Modernization dockets. At this time, winter peak pricing has also been de-prioritized but not eliminated from consideration for further action. While winter does contain some of the highest hourly LMP costs, it is difficult to draw a strong correlation between those high LMPs and either load or temperature. Initial analysis indicates that winter peak pricing is more highly correlated with natural gas pricing and one off events such as transmission line outages and curtailments from neighboring systems. Designing programs or strategies

127 around relatively unpredictable events would be very challenging. Unlike summer, there is usually less discretionary load in winter as equipment like ACs, pool pumps, and dehumidifiers are not running, making it much harder to find large loads that can be reduced. Also, focusing on winter usage is unlikely to have an impact on reducing the ISO s Installed Capacity Requirement (ICR) and thus no impact on capacity prices. Matrix of Solutions The PAs have worked collaboratively to develop a slate of demonstration projects that will test different strategies and span across different customer segments. Table 2 outlines the proposed demonstration projects by PA and sector. The proposed demonstration projects will hit all sectors and will help the PAs understand customer willingness to adopt different strategies and technologies. Table 2. Proposed Demonstration Projects by Sector C&I PA Residential Small Mid Large National WiFi Tstat DLC WiFi Tstat DLC WiFi Tstat DLC Interruptible Grid (Central A/C) load approaches Eversource EMS Lighting/HVAC controls WiFi Tstat DLC CLC WiFi Tstat DLC (Central A/C) Behavioral DLC on DMSHP, window A/C Unitil Battery Storage (or Muni project) BTM thermal storage Software & Controls Onsite training Process audits Batteries Thermal storage BTM thermal storage Appendix 6, Att. F Page 2 of 3 Software & Controls Onsite training Process audits Real time info Batteries Thermal storage Demand response Operations Changes to Reduce Demand It should be noted that while some of the demonstration projects appear similar in the above table, they will actually be testing different things. For instance, the residential WiFi thermostat direct load control demo projects will be testing different triggers for calling events, different types of thermostats, and different peaks. This will allow the PAs to gain valuable information about savings values and opt-out rates when events are called at different trigger points and whether savings values are impacted by the type of thermostat installed in a customer s home. Analytical Framework Update

128 Appendix 6, Att. F Page 3 of 3 Throughout the course of 2016 the PAs have been working towards answering, or developing a strategy to answer, the critical questions laid out in the Analytical Framework that was presented as part of the INITIAL REPORT ON SCOPE, TASKS, AND TIMELINES FOR THE DEMAND SAVINGS GROUP as Appendix H. Figure 1 below shows progress to date and is separated in to 3 categories. For most of the questions, developing answers required initial research that could be completed through literature reviews, interviews with other PAs, or discussions with other experts. The Research Complete column denotes whether that initial task has been competed ( ) or is in In Progress (IP). In order to fully answer many of the questions posed in the Analytical Framework, it is necessary to test hypothesis with in-the-field demonstration projects, in addition to the initial research. The column marked In-field highlights the progress to date with the in-the-field portion of the research. Finally, the Next Steps column is meant to be illustrative of what the PAs plan to do in order to fully answer the questions in the framework. Figure 1. Progress to Date on Analytical Framework

129 Appendix 6, Att. G Page 1 of 8 PA Areas of Focus for Demand Demonstration Projects Seasonal and Load vs. Pricing Priorities

130 Why Focus on Summer? Appendix 6, Att. G Page 2 of 8 Top Ten Highest Hourly LMPs in 2016 to date Top Ten Highest System Loads in 2016 to date Date Hour Real Time LMP Date Hour System Load 8/11/16 15 $1, /12/ ,521 8/11/16 18 $1, /12/ ,495 8/11/16 17 $ /12/ ,206 8/11/16 16 $ /12/ ,074 8/14/16 19 $ /11/ ,037 8/11/16 19 $ /11/ ,968 8/11/16 14 $ /11/ ,845 8/12/16 15 $ /11/ ,672 8/12/16 16 $ /12/ ,600 1/5/16 8 $ /12/ ,446 Highest hourly LMPs occur throughout the year In 2016 to date: 9 of the 10 highest LMPs were in the summer 1 in Winter However, highest system loads are consistently in the summer and within consistent time frames 2

131 Top 1% of 2016 LMPs and System Loads Appendix 6, Att. G Page 3 of 8 The general trend of a wide temporal distribution of LMPs but more concentrated system loads holds true when examining the top 1% of hours When did the top 1% of 2016 LMPs occur? When did the top 1% of 2016 system loads occur? Jan Feb Mar Apr May Jul Aug 0 Jul Aug Top 1% of hours in 2016 is 59 observations to date 42% of the hours in the top 1% of LMP hours are in the top 1% of load hours 3

132 Top LMPs - Winter vs Summer Appendix 6, Att. G Page 4 of 8 The top 50 LMP hours for Winter vs Summer 2016 show that the summer costs are consistently higher $1,600 $1,400 Winter 2015/16 Summer 2016 $1,200 RT LMP $/MWh $1,000 $800 $600 $400 $200 $ Ordered Occurrence 4

133 10 Year Summer vs. Winter View Appendix 6, Att. G Page 5 of 8 Key Points: Summer load has been higher than winter load Winter price spikes don t necessarily mean a cost of energy higher than in summer 5

134 Pricing Peaks are not sustained 2016 to date Appendix 6, Att. G Page 6 of 8 LMPs for days with top ten highest hourly LMPs during 2016 to date $/MWH Hour Ending 05-Jan 06-Jan 06-Jul 28-May 29-Jul 15-Feb 04-Apr *excludes August 6

135 Peaks are getting later in the day Appendix 6, Att. G Page 7 of 8 It is becoming increasingly important to develop programs that can have an impact later on the day 22 Hour When Daily Peak Occurred Non-Holiday Weekdays June, July, August Hour Ending /18/ /06/ /22/ /10/ /27/ /15/ /31/ /18/ /06/2017 7

136 Proposed Demonstration Projects by Sector Appendix 6, Att. G Page 8 of 8 PA Residential National Grid WiFi Tstat DLC (Central A/C) Eversource (contingent on EEAC and DPU approval) CLC WiFi Tstat DLC (Central A/C) Behavioral DLC on DMSHP, window A/C Unitil (contingent on EEAC and DPU approval) C&I Small Mid Large WiFi Tstat DLC WiFi Tstat DLC Interruptible load approaches EMS Lighting/HVAC controls WiFi Tstat DLC BTM thermal storage Software & Controls Onsite training Process audits Batteries Thermal storage BTM thermal storage Software & Controls Onsite training Process audits Real time info Batteries Thermal storage Demand response Battery Storage Operations Changes to Reduce Demand DLC Direct Load Control DMSHP Ductless Mini-Split Heat Pumps BTM- Behind the Meter 8

137 Appendix 6, Att. H Page 1 of 19 Mary Ann Piette, Division Head, Building Technology and Urban Systems New Directions in Demand Response

138 Motivation for Demand Response Appendix 6, Att. H Page 2 of 19 Manage Peak Capacity During Hot Summer Days Improve Affordability of Electricity Improve Grid Reliability Enable More Renewables on Grid

139 Demand Response Simplified Objectives Data Model Automation Control Strategies Appendix 6, Att. H Page 3 of 19 Reliability Schedule Manual Centralized D Economics Price Automated Gateway Congestion Signaling Standards Embedded Intermittent Resources

140 Open Automated Demand Response Appendix 6, Att. H Page 4 of 19 Open standardized DR interface Allows elec providers to communicate DR signals directly to customers Uses XML language and existing communications e.g., Internet Pricing Data Models Physical Communications Control Strategies Price Signal $/kwh Data Model OpenADR Comm Internet Auto-DR Client Server End-Use Controls Building Action

141 Historic focus on Seasonal Grid Stress Appendix 6, Att. H Page 5 of 19 OpenADR PG&E Demand Bid Test Day 7.0 OpenADR Northwest Test on Cold Morning Test Period OpenADR Cumulative Shed in July CPP MA Baseline :00 AM 1:00 AM 2:00 AM 3:00 AM 4:00 AM 5:00 AM 6:00 AM 7:00 AM 8:00 AM 9:00 AM 10:00 AM 11:00 AM 12:00 PM 1:00 PM 2:00 PM 3:00 PM 4:00 PM 5:00 PM 6:00 PM 7:00 PM 8:00 PM 9:00 PM 10:00 PM 11:00 PM 12:00 AM 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 Power [MW] Seattle Municipal Tower Mckinstry Target - T1284 3/10 BL OAT Reg BL Whole Building Power (kw)

142 Need for Electric Supply Changing Appendix 6, Att. H Page 6 of 19 with More Renewables

143 Appendix 6, Att. H Page 7 of 19

144 Appendix 6, Att. H Page 8 of 19

145 Appendix 6, Att. H Page 9 of 19

146 Appendix 6, Att. H Page 10 of 19

147 4 Types of DR Modeled Appendix 6, Att. H Page 11 of 19 Shape Shift Shed Shimmy Years Seasons Days AM/P M Incentivize EE and Mitigate bahavior ramps and change capture surplus renewables Hours Minutes Manage contingency events and coarse net load following Fast DR to smooth net load and support frequency Seconds

148 Cost for Automating DR Systems Appendix 6, Att. H Page 12 of 19 Note- Some projects include efficiency technology and not just DR systems

149 Enabling Technologies Summary Phase 1 Model Sector End-Use Enabling Technology Summary Appendix 6, Att. H Page 13 of 19 All Residential Commercial Industrial Battery-electric & plug-in hybrid vehicles Behind-the-meter batteries HVAC- Air Conditioning Pool Pumps HVAC Lighting Refrigerated warehouses Processes & large facilities Agricultural & municipal pumping Data centers Wastewater treatment Level 1 & Level 2 charging interruption Automated DR (Auto-DR). Direct load control (DLC), smart thermostats DLC Depending on site size, energy management system Auto-DR, DLC, and/or smart tstats. A range of luminaire, zonal & standard control options. Auto-DR Automated and manual load shedding & process interruption. Manual, DLC & Auto-DR Manual DR Automated & manual DR

150 Key Technology Input: Depth of Shed for Industrial Sector Appendix 6, Att. H Page 14 of 19

151 Key Technology Input: Commercial Shed Percentages Appendix 6, Att. H Page 15 of 19

152 Key Technology Input: Depth of Shed for Residential Sector Appendix 6, Att. H Page 16 of 19

153 Preliminary Results on DR Potential Appendix 6, Att. H Page 17 of 19

154 Demand Response and Codes Low cost way to enable DR is require it in building code for new buildings Effort in California has limited success Controls require following features: - Automatic Demand Shed Control. Upon receipt of a DR signal, space-conditioning systems conduct a centralized demand shed, as specified in Sections Period 120.2(h)1 and 120.2(h)2. ACTIVE IDLE Appendix 6, Att. H Page 18 of 19 High Price Nor. Mod. Start Time Load Level End Time

155 The Future - Dynamic Communication and Aggregation Appendix 6, Att. H Page 19 of 19 ENABLE NEW MARKETS

156 Appendix 6, Att. I Page 1 of 28 PA Demand Savings Group Discussion Natural Gas Systems Overview December 2,

157 LDC Supply Responsibilities Appendix 6, Att. I Page 2 of 28 Provide for a safe, reliable service to all firm customers on its distribution system Long term planning focus Reliable capacity primary firm capacity for firm needs Balance load variations (Storage, LNG etc.) Portfolio planning horizon must look forward well into future given lead times Ensure an adequate supply of natural gas into the distribution system under design weather conditions 2 Manage supply portfolio to provide for lowest reasonable costs to consumers

158 Gas Supply Planning Appendix 6, Att. I Page 3 of 28 New England s gas requirements are highly weather sensitive Reliability paramount restoration complex Capacity planning long lead time primary firm Design Demand Scenario New England is design day driven Must secure firm supply to accommodate expected demand on a design day, winter, and year. Take into account each LDC s territory and distribution system 3

159 Gas Supply Planning and Process Appendix 6, Att. I Page 4 of 28 Long Term: Gas Supply Demand Balances (Typically 5-10 Years) under Normal & Design weather conditions Seasonal (Winter, Summer & Shoulder) LDC s evaluate the market place and near-term load requirements to determine portfolio mix of base-load and daily supplies Daily/Intraday LDC s forecast load requirements daily/intra day and are prepared with underlying assets to respond to dynamic customer load changes (LDCs are the parties responsible for balancing customer needs and nominated supplies at the city gate) 4

160 Long-Term Planning Appendix 6, Att. I Page 5 of 28 LDC s in MA required to file 5 yr forecasts and supply plans to the DPU every 2 yrs The DPU reviews each LDC s plan to ensure that the plan is reviewable, appropriate and reliable. The DPU also reviews and approves any additions to the supply portfolio mix of gas pipeline, underground storage and on-system peak facilities to ensure it is in the best interest of the customers. Generic Forecast of Natural Gas Demand and Supply FIRM DESIGN DAY DEMAND FORECAST (MMBtu) 2013/ / / / /18 Demand 100, , , , ,243 Pipeline 50,000 50,000 60,000 60,000 60,000 Storage 30,000 30,000 30,000 30,000 30,000 LNG 30,000 30,000 30,000 30,000 30,000 Sub-total 110, , , , ,000 5 Net 10,000 8,000 15,960 13,879 11,757

161 LDC Supply Planning Considerations Appendix 6, Att. I Page 6 of 28 Reliability - Firm Customers high standard due to impact of shut-off and long recovery time to re-light pilots lights - LDC s contract for primary firm capacity Diversification limit dependence on one supply/price source Flexibility ability to adapt to changing conditions Best Cost Balance between reliability /price/flexibility, Liquidity, New Capacity and Renewals, FERC/Pipeline Issues, Volatility Discrete Distribution System Requirements Must tailor portfolio to each LDC s unique territory or distribution system 6 Demand Impacts - Peak/Winter/Shoulder/Summer Conditions

162 LDC Portfolio to Meet Customer Load Requirements Appendix 6, Att. I Page 7 of 28 Temperature sensitive load Illustrative Load Duration Curve Three physical delivery resources are available to satisfy these requirements Interstate pipeline transportation Deliveries from underground storage facilities Peaking supplies Dekatherms Peaking Resources (LNG, Propane Air) Deliveries from Underground Storage Pipeline Transportation from Production Areas (e.g. LNG Vaporization) # of Days 7

163 Daily Operations Forecasting Loads and Procuring Supply Appendix 6, Att. I Page 8 of 28 Each day will begin with a review the previous gas day s throughput, verified weather information and the corresponding variation (if any) to the forecast. LDC s receive weather forecasts for the next 7 days provided by various service companies. Gas Supply will add forecast into its model along with any other specific load information to determine the next day s requirements. This is typically completed by 8AM ECT These load requirements are then input into the daily load planner which essentially outlines all available supplies for the given day against the requirements The gas market for the next gas day begins at 10AM ECT Trading typically opens around 8AM ECT and will continue with varying levels of liquidity until 12:30 PM ECT The LDC s procure the least cost supply available to them to meet their operational requirements for the next day 8

164 Daily Operations Nominating and Scheduling the Gas Supply Appendix 6, Att. I Page 9 of 28 Once the LDC has secured its required supply, it must nominate the delivery of its gas on the corresponding interstate pipeline Electronic Bulletin Boards EBB prior to the timely cycle,12:30 PM ECT. This includes all pipeline supply from production area meters and storage withdrawals and/or injections. 9

165 Daily Operations Confirming the Gas Supply Appendix 6, Att. I Page 10 of 28 Each afternoon, the LDC s will ensure that its gas supply was confirmed by the pipeline that nominated receipt points to respective delivery points are scheduled The LDC s will then confirm that the Third-party suppliers have successfully scheduled the requisite amount of gas to the LDC s citygates for delivery on its distribution system and rectify any variances as necessary. Gas Supply will monitor any changes to the weather forecast and the system loads with Gas Control throughout the work day. Gas Control will contact Gas Supply as needed to address any supply requirement changes 24 hours a day. 10

166 Appendix 6, Att. I Page 11 of 28 Regional Gas Infrastructure 11

167 Pipeline System at Capacity Appendix 6, Att. I Page 12 of 28 New England has no natural gas production or underground storage facilities Region is directly served by: Six interstate pipeline systems Algonquin Gas Transmission Tennessee Gas Pipeline Iroquois Gas Transmission Maritimes & Northeast Pipeline Portland Natural Gas Transmission Granite State Gas Transmission Four LNG import terminals Distrigas Of Massachusetts (Everett, MA0 Canaport LNG (Saint John, New Brunswick) Northeast Gateway (offshore MA) Project Neptune (offshore MA) Peak shaving facilities 16.2 Bcf of LDC-owned LNG storage 20 Propane/LP Air sites Pipeline Systems Serving New England Regional LDC Peak Day Demand ~4.3 Bcf/day 12 Source: Northeast Gas Association

168 Appendix 6, Att. I With power generation and LDC growth -> Pipeline Utilization at all time highs Page 13 of 28 13

169 Appendix 6, Att. I Page 14 of 28 Major NE LNG Storage Facilities New England has the highest concentration of on-system LNG storage in the United States LNG has been used since the 1970s to economically meet short-term, needle peaking requirements Weather dependent heating loads require delivery capacity 3 times greater than average usage Not generally available to assist market as needed for Design Winter requirements Liquefaction capability and refill options limit turnover of capacity 14

170 Appendix 6, Att. I Page 15 of 28 Impact of Inadequate Gas Capacity on New England Power Markets 15

171 Appendix 6, Att. I Page 16 of 28 New England Lacks Pipeline Infrastructure 16

172 Appendix 6, Att. I ISONE has becoming increasingly reliant on natural gas to generate power Page 17 of 28 17

173 Benefits of increased use of Gas-Fired Generators Appendix 6, Att. I Page 18 of 28 18

174 Gas and Electric Price Highly Correlated Appendix 6, Att. I Page 19 of Source: ISO-NE State of the Grid 2016 Presentation January 26, 2016

175 ISO-NE Required to Dispatch Coal and Oil During Winter Seasons for Reliability Appendix 6, Att. I Page 20 of Source: ISO-NE State of the Grid 2016 Presentation January 26, 2016

176 Owning pipelines insulates gas customers from price volatility Appendix 6, Att. I Page 21 of 28 21

177 LDC Customer Prices Stable with Capacity vs. Appendix 6, Att. I Secondary Market Prices Page 22 of 28 NE LDC CGA vs. Henry Hub and AGT City Gate $/MMBtu 22

178 The FERC Application Process Appendix 6, Att. I Page 23 of 28 FERC approval for interstate pipeline facilities are petitioned through an Application for a Certificate of Public Convenience and Necessity (CPCN) Applications presented for FERC action must demonstrate the following key criteria: Market need New projects or expansions must be supported with firm market commitments for long-term (10+ year) transportation service agreements at tariff or negotiated rates Just and reasonable rates Demand charge based, fee-for-service structure with maximum rates set by FERC under traditional cost of service ratemaking methodology Environmental impact mitigation Comprehensive environmental impact analysis and mitigation measures Compliance with pipeline safety standards Built and operated in compliance with US Department of Transportation rules and procedures FERC will undertake a comprehensive review of an applicant s proposal and determine whether the action meets the standard of being in the interest of the public convenience and necessity and will issue an approval or denial of a project based on meeting this test 23

179 FERC s Capacity Release Overview Appendix 6, Att. I Page 24 of 28 > FERC unbundled gas supply from transportation in its Order 636 > As part of that unbundling FERC establish a secondary market for capacity with two main goals Transparency - In the reallocation of capacity Efficiency - To ensure that capacity is allocated to the shipper willing to pay the highest price > To ensure transparency FERC mandated that pipelines bid out available capacity through their EBB (Electronic Bulletin Boards) > FERC establish a set of rules that would help ensure that released capacity would be allocated to the highest bidder Shipper Must Have Title No Tying Prohibit Buy/Sell Transactions > FERC revised some of the rules under Order 712 to allow and promote AMA s (Asset Management Agreements) 24

180 Northeast Gas Infrastructure Development Projects Appendix 6, Att. I Page 25 of 28 25