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
6 CONSERVATION FOR AFFORDABLE HOUSING PROGRAMS
6.1 Overview
The Conservation for Affordable Housing program area is the Companies’ area of DSM
programming specifically created to meet the needs of our low income customers. One of the
EEC program principles is that “programs will have a goal of being universal, offering access to
energy efficiency and conservation for all residential and commercial customers, including low
income customers through the DSM for Affordable Housing initiative” (Energy Efficiency and
Conservation Programs Application, May 28, 2008, pg 47). The Companies are staying true to
this principle by developing and implementing programs that are of no cost or low cost to low
income participants. Further, as per the Demand-Side Measures Regulation, a utilities’ DSM
portfolio is considered adequate (by the authorities) when there is “a demand-side measure
intended specifically to assist residents of low income households to reduce their energy
consumption” (November 7, 2008, Regulation of the Minister of Energy, Mines and Petroleum
Resources, Ministerial Order No. M 271, Section 3[a]). In order to recognize its importance, the
Companies created a discrete program area for Conservation for Affordable Housing in 2009,
which focuses on assisting our low income customers to reduce their energy consumption,
which in turn reduces their energy costs.
In line with the Commission’s encouragement to “re-allocate funding from other approved areas”
(EEC Decision, Order No. G-36-09), the Companies requested and were approved for an
annual total budget of $3 million for 2010 and 2011, encompassing both FEI and FEVI in this
program area (as part of Orders G-141-09 and G-140-09 approving negotiated settlement
agreements in FEI’s and FEVI’s 2010 - 2011 Revenue Requirements Applications). With energy
rates generally increasing, it will remain important for the Companies to create energy
conservation opportunities for this segment in a manner that allows customers to participate
without having to spend a significant amount of their limited income.
Low income customers are known to be difficult to reach and be integrated into utilities’ DSM
programs; therefore, this program area is especially well suited to working collaboratively with
FortisBC Inc. and BC Hydro in order to simplify the application processes for the customer and
share administration and outreach activities and costs. This streamlined approach allows the
Companies to maximize every contact to ensure that once a low-income customer is engaged,
an optimal amount of energy savings can be realized.
It should be noted that providing conservation and energy efficiency programs for low income
customers can be challenged in terms of achieving a positive TRC score, both at the program
area and individual program levels, despite the 30 percent benefits adder provided for in the
DSM regulation. This is because of the relatively high cost of providing conservation services to
this important customer segment. Recognizing that the provision of conservation services to low
income customers is a requirement for adequacy of utility DSM activity, the Companies intend to
work with government to explore amending the DSM regulation to ensure conservation activity
serving this customer segment is able to continue.
SECTION 6: CONSERVATION FOR AFFORDABLE HOUSING PROGRAMS Page 105