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
5 HIGH CARBON FUEL SWITCHING PROGRAMS
5.1 Overview
The High Carbon Fuel Switching program area initiatives are designed to result in lower overall
GHG emissions by using natural gas in place of higher emissions carbon fuels such as coal, oil,
diesel, or propane. In addition, further GJ savings are recovered by replacing older, less efficient
high-carbon appliances with high efficiency natural gas technologies. The first fuel switching
program is the residential retrofit program, focused on converting oil or propane heating
systems to ENERGY STAR® natural gas appliances. This program, called the Switch N’ Shrink
program, saves money and energy and results in significant GHG emissions reductions.
In Order No. G-36-09, the Companies received approval for residential fuel switching program
funding for fuel switching from fossil fuels with higher carbon content than that of natural gas. In
the residential sector, this applies to the installation of ENERGY STAR® and EnerChoice
equipment for customers choosing to convert to natural gas. FEVI received approval for the
extension of 2010 high carbon fuel conversion funding amounting to $1.5 million for 2011 in
Order No. G-140-09, as part of the 2010-2011 Revenue Requirements Application’s Negotiated
Settlement Agreement. This funding is in place to develop EEC programs that benefit customers
transitioning from higher carbon fuels such as coal, oil, diesel, or propane to natural gas.
This principle of moving customers from higher carbon fuel to natural gas also applies in other
sectors, including the transportation sector. As described in the Innovative Technologies
program area, heavy duty vehicles fuelled by lower carbon Compressed Natural Gas (“CNG”)
can displace higher carbon diesel to achieve significant environmental benefits. The
Companies’ target market includes operators of commercial, return-to-base heavy duty fleet
vehicles such as garbage trucks, waste haulers, and buses. Improvements in engine
technology, combined with an attractive price differential between natural gas and diesel have
stimulated renewed interest in CNG NGVs in recent years.
5.1.1 RESIDENTIAL HIGH CARBON FUEL SWITCHING PROGRAM GOALS
Residential fuel switching programs encourage households to replace their higher carbon
heating systems with lower carbon natural gas. These programs add value to new and existing
customers through reduced fuel costs, minimizing the environmental hazards associated with oil
storage tanks, decreasing the need to import fuel from other provinces, and improved air quality
in the home. Residential fuel switching programs support the following objectives:
• Educate customers about the advantages of replacing higher carbon heating systems
with lower carbon natural gas in terms of lower fuel cost, GHG emissions reductions,
and other benefits;
• Upgrade low efficiency systems to high efficiency systems in order to capture energy
savings associated with reducing the overall consumption of fuel; and
SECTION 5: HIGH CARBON FUEL SWITCHING PROGRAMS Page 99