PROGRAM/PORTFOLIO FUNDING ALLOCATION Program Allocation
2%
5%
Expenditure categories were revised in 2016 to provide clarity and more accurately reflect Program costs. The four categories include Administrative, Technical and Customer Support, Incentives, and Evaluation & Research. The definitions are as follows: • Administration costs are not directly associated with a specific offering
31%
62%
activity but which are necessary to the development and administration of programs, including record keeping, payroll, accounting, auditing, billing, business management, budgeting and related activities, overhead allocation, and other costs necessary to direct the organization of the Program. This does not include Program evaluation.
Incentives
Technical & Customer Support
Administration
Evaluation & Research
Portfolio Allocation The Focus on Energy Program currently allocates approximately 60% of its budget to solutions for business customer classes and approximately 40% to solutions for residential customers. This funding allocation is consistent with the historical proportion of funding collected from each type of customer and the breakdown of future energy savings opportunities identified in a 2017 potential study. • Technical and Customer Support costs are those associated with project identification, engineering calculation and modeling, inspection of installed projects, Trade Ally contractor outreach, technical training, and customer service. • Incentive costs are cash incentives payable to Customers and Trade Allies and instant discounts received at point-of-purchase at participating retail locations. • Evaluation & Research costs are those associated with independently verifying offering energy savings and supporting continuous offering improvement through the analysis of markets, technologies, and offering operations.
22
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