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
The Switch N’ Shrink program provided EEC funding for 178 conversions from oil to natural gas.
Table 5-4 demonstrates the program is cost effective with a TRC score of 1.4. Approximately
$100,000 was invested in print and radio advertising in the fall of 2010 to drive program
awareness and educate homeowners about the benefits of replacing higher carbon fuels with
lower carbon fuels.
Utility
NPV Natural
Gas Incurred
(GJ)
Table 5-4: 2010 Switch N’ Shrink Program Benefits
NPV Oil
Displaced
(GJ)
NPV Energy
Savings (GJ)
NPV Costs to
Purchase
Natural Gas
($000s)
NPV Costs to
Purchase Oil
($000s)
Table 5-5 provides insight into the considerable program benefits over the lifetime of the
measure. For 178 conversions, there were 5,696 net GJs of energy saved, $596,000 35 in net
cost savings for these customers, and 1,171 net tons of CO2e reductions.
5.4.1.1.3 2011 Performance Outlook
NPV Cost
Savings upon
Conversion
($000s)
Table 5-5: 2011 Switch N’ Shrink Program Performance Forecast
GHG Savings
(Ton CO2
equivalents)
FEI 6,103 7,222 1,119 61 159 98 200
FEVI 32,529 37,106 4,577 337 835 498 971
Total 38,632 44,328 5,696 398 994 596 1,171
Utility Participants
Incentive
Expenditure
($000s)
Non-Incentive
Expenditures
($000s)
Annual Energy
Savings (GJ/yr)*
NPV Energy
Savings
(GJ)*
Free Rider
Rate
FEI 100 100 21 (1,720) (17,116) 50% 1.7
FEVI 320 320 83 (6,880) (69,861) 50% 1.8
Total 420 420 104 (8,600)
(86,976)
The Switch N’ Shrink program will remain in market for 2011 and 2012 subject to BCUC funding
approval for fuel switching activities. By leveraging program awareness from the fall 2010
35 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.
SECTION 5: HIGH CARBON FUEL SWITCHING PROGRAMS Page 103
TRC
50% 1.8
* Note: Energy savings in a fuel switching program are negative since this is a load building program from higher carbon fuel sources
(oil and propane) to lower carbon na tural gas .