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
• Support government policy on energy efficiency and GHG emissions reductions,
especially in relation to efficient building strategies 31 through incentives and education to
customers and other industry stakeholders.
5.2 2010 Residential High Carbon Fuel Switching Program Area Results
The 2010 High Carbon Fuel Switching program, Switch N’ Shrink, resulted in the replacement of
178 heating systems through a cost effective program with a TRC score over 1.2, as outlined in
Table 5-1. Further analysis based on the amount of oil displaced reveals that customers
reduced their fuel costs by $596,000 32 over the lifetime of the measure, thereby reducing over
1,170 tons of GHG emissions. Please note natural gas savings are negative for this program
since the addition of these customers is building load.
Program
Table 5-1: High Carbon Fuel Switching 2010 Results
Incentives & Non-Incentive
Expenditure ($000s)
NPV Energy Savings (GJ) TRC
FEI FEVI Total FEI FEVI Total FEI FEVI
Swtich 'N' Shrink 75 225 299 (6,103) (32,529) (38,632) 1.2 1.4
In addition to appliance replacement, this program met EEC program objectives by educating
customers and trades about the benefits of replacing higher carbon heating systems with
energy efficient appliances. These benefits include the reduction of ongoing fuel costs,
improved air quality, and decreased environmental risk associated with oil tanks and fuel
transport. The primary program benefit was supporting government policy initiatives to reduce
GHG emissions.
5.3 2011 Residential High Carbon Fuel Switching Program Area Outlook
The 2011 outlook for the High Carbon Fuel Switching program area at this time consists only of
the residential Switch N’ Shrink program although. The Companies are assessing other
opportunities for this program area in the coming months. By building on 2010 program
awareness, program participation is expected to more than double for a total of 420 participants
as outlined in Table 5-2 for the 2011 forecast. The 2011 program cost effectiveness is higher
than 2010 due to decreased marketing expenditures required in the second year and the higher
avoided cost of oil that is forecasted to increase from $22 per GJ in 2010 economic models, to
$25 per GJ in 2011 based on Vancouver, BC pricing. 33
31
BC Energy Efficient Buildings Strategy: More Action, Less Energy. BC Ministry of Energy and Mines Publication,
2008.
32
www.kentmarketingservices.com Prepared by MJ Ervin, Kent Marketing Services, for source of Vancouver fuel
oil prices. For economic modeling, 2010 cost of oil was assumed to be $22.01 and 2011 cost of oil was assumed
to be $25.39.
33
ibid
SECTION 5: HIGH CARBON FUEL SWITCHING PROGRAMS Page 100