Affordable Housing, Electricity and the Conservation Bureau

Low Income Energy Network ConferenceMay 26, 2006

Julia McNallyManagerPlanning, Coordinating and Reporting Conservation Bureau

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THREE KEY MESSAGES

Ontario Electricity Challenge

Role of the Chief Energy Conservation Officer and the Conservation Bureau

Our Conservation Challenge and Opportunities in Affordable Housing

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Ontario Power Authority

The Ontario Power Authority (the “OPA”), is a corporation without share capital created under the Electricity Act

Established in 2005 to provide leadership in planning and coordination of measures for electricity conservation and load management initiatives

OPA is responsible for ensuring an adequate, long-term supply of electricity in Ontario – this includes the integration of generation development, power system planning, and electricity sector development, in addition to the Conservation Bureau

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Conservation Bureau

Conservation Bureau is a division of the Ontario Power Authority and is headed by the Chief Energy Conservation Officer, Peter Love.

The Bureau consists of four sectionsCommercial & Institutional (includes MUSH sector)Residential Industrial & Agricultural Planning, Reporting & Coordinating

As well the Bureau has a Conservation Fund that is used to pilot projects that can be replicated across the province and Conservation Awareness budget for awareness/action projects

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2007 Targets:

5% reduction in peak electricity demand

10% reduction in electricity consumption

Long-Term Target:

Create a conservation culture

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Vision for Conservation in Ontario Ontario is a place where energy is used in an environmentally

sustainable, economically productive and socially beneficial way. As North American leaders, we demonstrate our Culture of Conservation through our choices of energy use.

Mission for the Conservation Bureau To inspire a Culture of electricity Conservation in Ontario that supports

and enables all energy consumers in making wise, efficient and productive choices, where we live, shop, play, learn and work.

Objectives of the Conservation Bureau Create and foster the development and delivery of CDM initiatives

informed by the best available market knowledge Develop needed infrastructure and market mechanisms to deliver

sustainable Conservation & Demand ManagementChampion the building of a Culture of Conservation to achieve sustained

commitment to conservation

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ONTARIO’S ELECTRICITY CHALLENGE

25,000 MW (80% current capacity) going out of service by 2025

Potential investment of $70 billion likely required

Status quo not an option

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CONSERVATION AND DEMAND MANAGEMENT

Conservation – Reduces consumption and demand at all timesDemand Management – Shifts load from peak to off-peak hours

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GOVERNMENT INITIATIVES AND TARGETS FOR 2007

25 Government initiatives summarized: Institutional framework Set goals for renewables

Includes directing OEB to develop plan to install a smart electricity meter in 800,000 Ontario homes by 2007 and in every home by 2010

Government targets for 2007: 5% Reduction in weather-

adjusted peak demand from 27,000 MW to 25,650 MW by 2007

10% Reduction by Provincial Operations by 2007, 66 Million kWh

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CURRENT CONSERVATION BUREAU INITIATIVES

Directives: 1000 MW Combined Heat and Power 500 MW DM / DR 100 MW Low Income / Social Housing 100 MW Lighting / Appliances 300 MW Toronto 150 MW Commercial Buildings/MUSH

Sector 150 MW Electrically Heated Houses and

Other Residential Upgrades

Conservation Fund & Conservation Awareness Program

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OPA Initiatives

The OPA has created a $ 1 million Technology Fund for pre-commercial products that are related to either energy efficiency or renewable energy.

This fund is jointly managed by the Conservation Bureau and the Electricity Sector Development branch of the OPA.

The OPA has recently announced a Standard Offer for renewable power:

Up to 10 MW Renewable$0.11 for wind, biomass, small hydro $0.14.5 for peak)$0.42 for solar photovoltaic

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Integrated Power System Plan and Who Does What Study

OPA is developing an Integrated Power System Plan It will deal with the conservation, supply, transmission,

distribution and procurement process for energy in the Province.

It will involve extensive stakeholdering

“Who Does What” in Conservation Looking at best way to operationalize government policy set

out in Electricity Act 2 Phases

Phase 1 – role of LDC’s and CB in 2007, responsive to OEBPhase 2- role of all players future CDM market

To be completed over summer 2006

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BUREAU RECOMMENDATIONS

Ontario Energy Efficiency Act

Ontario Building Code

Ontario Fire Code

PST Rebates

Ozone Depleting Substances

Other Barriers

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Program Implementation Strategies

• Fill the gapsFill the gaps

– Complement and leverage existing energy efficiency and conservation programs

• Federal Government

• LDCs and Gas Utilities

• Local Community Groups

– Facilitate maximum savings

– Province-wide program access

• Utilize strategies that acquire resources Utilize strategies that acquire resources in the near and long termin the near and long term

– Promote energy efficient products and services that will benefit residents and building owners alike

• Support and build on existing market Support and build on existing market provider networksprovider networks

• Enabling Enabling

– Address multiple barriers to energy management program implementation and participation

• Legislative

• First cost and access to financing

• Information

• Perceived risks

• Phased approachPhased approach

End State: Market TransformationEnd State: Market Transformation

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Social HousingSector*

Low Income Housing Markets

ProgramComponents

Private RentalHousing

Single Homes / 1st Nation

Communities

Energy EfficientEnd-use Products

Building Envelope

Improvements

Operational Improvements

Phase l:Launched

March 28, 2006

Low-Income Conservation and Demand Management Program

* For OPA’s program development purposes, the Affordable Housing Program initiative is categorized within the Social Housing Sector.

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Energy Efficient Product List

•Qualified List – Triple E Working Committee

•TRC Cost Effectiveness Test

Financial Incentives

•Loan Guarantee

•Interest Buy-Down or Financial Grant

Program Management Procurement

•Program Management Services

•Education

•Measurement & Verification

Low Income CDM Program – Phase 1 Social Housing Implementer: SHSC “Green Light” Initiative Launched

March 28, 2006

Program Mix

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Every Kilowatt Counts

The program was created to give every Ontario resident the ability to make effective conservation decisions.

Money savings coupons will include the following: $5 off a two-pack or more of ENERGY STAR qualified compact

fluorescent light bulbs; $15 off a programmable thermostat to keep homes cool only when

needed; $5 off an electrical timer so lights are off when not needed; and $25 off an ENERGY STAR qualified ceiling fan so that Ontarians

can set their air conditioners’ temperatures a little higher and still feel the cooling benefits of well-circulated air.

The coupons will be redeemable at more than 1,600 participating retail locations in more than 400 communities across Ontario.

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Cool Savings RebateThis program offered to Ontario residents with existingcentral Air Conditioning (AC) systems.

Money savings coupons will include the following: $50 REBATE ON AN AC TUNE-UP

Residents that are currently on an AC annual maintenance plan do not qualify for this rebate.

Tune-up must be performed between April 21 to June 30, 2006. Claims for Tune-up rebate must be received by August 1, 2006.

$75 (UP TO) REBATE TOWARDS NEW, INSTALLED PROGRAMMABLE THERMOSTAT

Only applies to customers who do not currently have a programmable thermostat.

Service must be performed between April 21 and August 31, 2006.Claims for thermostat rebate must be received by October 1, 2006.

$500 REBATE ON REPLACEMENT OF AN EXISTING SYSTEMWITH AN ENERGY STAR® QUALIFIED SYSTEM

Installation must occur between April 21 and August 31, 2006. Claims for ENERGY STAR® qualified system rebate must be received

by October 1, 2006.

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Economic Demand Response (DR)

Participants will remove load from the grid at a 3 hour ahead signal based on a certain price level.

The price level at which curtailment occurs is known as the strike price and is agreed to by the participant and the OPA based on the season and the business situation.

By reducing the size of demand peaks through DR initiatives Ontario can potentially

avoid the cost for some expensive generation capacity avoid the need for some expensive imports of electricity power preserve the integrity of the transmission system and reduce some

of the cost required for system capacity improvements

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Q & A

“The "Conservation Bureau" wordmark, "C Star" logo, and "Power Of Conservation" tagline are trade-marks owned by the Ontario Power Authority”.

Julia McNallyEmail: julia.mcnally@conservationbureau.on.ca

Website: http://www.conservationbureau.on.ca