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entrants to the California market. These Aggregators will compete for funding through Power Savings Agreements (PSA). • The Business Equipment Early Retirement HOPP(SDG&E). This pilot is open to all business customers in the C/I/A segments with aging HVAC equipment. Some old inefficient equipment has been kept in service past its expected useful life. Customers often choose to repair, rather than replace, their aging equipment because the current rebates offered for such measures are insufficient to defray a meaningful portion of new equipment costs. Such existing equipment may be far below current code. The untapped savings represented by replacing an old inefficient unit with a new efficient one may be considered the stranded savings potential. • The Tiered Incentive Custom Calculated HOPP (SDG&E). This pilot targets mid-sized to large-sized(above 200kW) non-residential customers with retrofit opportunities for large To- Code and Above Code energy savings. Tiered Incentives will target customers who have large To-Code and Above Code projects that have previously been rejected, or those with known equipment that has not been replaced due a lack of incentives. Historically, utilities have not been able to provide incentives for projects that yield only To-Code savings which has created stranded savings in these projects. HOPP programs offer new opportunities for CCA's to participate in existing energy efficiency programs while also allowing program administrators added flexibility in program design and savings attribution. For example, the SDG&E multifamily HOPP may offer a template for Alameda county to serve it's middle and low income customers, while the PG&E Residential Pay-for-Performance HOPP may offer opportunities for the County to share in revenue earned by aggregators of PACE program savings operating within the County, thereby providing an incentive for the County to help drive and expand these programs. In summary, the preceding discussion on energy efficiency potential indicates that; • A review of energy sales and market characteristics indicate that estimates of energy efficiency potential for the overall PG&E service territory can be allocated to Alameda County in proportion to the County's share of PG&E total electricity sales, which is about 7.5%. • An analysis of the potential study developed by the CPUC to assess the market potential from energy efficiency in PG&E service territory indicates that there is the potential for energy efficiency in Alameda County beyond what is being delivered by the current suite of energy efficiency programs operating in the county. • A review of current and emerging energy efficiency technologies and innovative new programs designs indicate that it is possible to install higher levels of energy efficiency than has historically been achieved at cost-benefit thresholds that are acceptable under current CPUC guidelines. F-26