FEI-FEVI 2010 EEC Report filed March 31, 2011 - FortisBC

FORTISBC ENERGY INC. AND FORTISBC ENERGY (VANCOUVER ISLAND) INC.
2010 ENERGY EFFICIENCY AND CONSERVATION ANNUAL REPORT
Administration To be determined
Communications To be determined
Evaluation
Strategy
of incentives over administration and marketing costs.
• Prepare the way for and support any provincial regulation requiring
increased commercial cooking appliance efficiency.
To be determined
Implementation
4.4.3.4.2 2011 Commercial Kitchen Program Performance
Forecast
The Companies are currently in the process of engaging an external consultant to develop an
outline of a commercial cooking natural gas efficiency program for FortisBC.
As with the low flow pre rinse spray valve programs, the Companies believe the dynamics of the
food service industry make it necessary to operate a DSM program in order to capture the
potential natural gas savings offered by higher efficiency cooking equipment. The commercial
food service sector tends to be exposed to significant volatility, making “cheapest first cost” a
critical purchase decision criteria for any item not critical to customer service. Food service
establishments typically lack the time or resources to research energy saving options or
understand the benefits provided. A utility funded DSM program would make it easy for
participants to save natural gas by largely eliminating both the effort and risk that potential
participants would normally associate with the selection of high efficiency options.
The Commercial Kitchen program will also help to introduce a new concept to the food service
industry, namely that energy is a variable cost. The Companies believe most food service
establishments consider energy to be a fixed cost, and believe that changing this mindset is
essential to ultimately bringing about market transformation.
The remaining development work preceding the program roll out is significant; however, the
Companies’ hope to launch the program towards the end of 2011. BC Hydro has recently
launched a new program aimed at encouraging energy efficiency in commercial food service
establishments. The Companies and BC Hydro have expressed interest in working together to
promote greater energy efficiency among commercial food service establishments.
4.4.3.4.3 Commercial Kitchen Program Summary
The Companies believe commercial cooking operations represent a significant consumer of
natural gas that is underserved by the current program offerings. Providing incentives to
significantly reduce the incremental cost of higher efficiency cooking equipment is expected to
encourage customers who would normally purchase and install standard efficiency equipment to
purchase high efficiency options instead and reduce natural gas use as a result.
SECTION 4: COMMERCIAL ENERGY EFFICIENCY PROGRAM AREA Page 93