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
Innovative Technology funding was denied, the Decision established important principles and
framework as to how FEI should evaluate EEC programs (primarily the TRC test, on a portfolio
basis), and established a specific regulatory mechanism for overseeing the Company’s use of
EEC funding (the EEC stakeholder committee). These approvals become important later in the
chronology, as the NGV funding meets the approved test for evaluating EEC funding, and the
use of EEC funding for incentives was presented to, vetted by, and generally supported by, the
stakeholder committee as confirmed by the letters of support filed with this Report.
10.2.3.1.1 Rejection of the Innovative Technology Portfolio
Including Natural Gas Vehicles
In the EEC Application, funding for NGV initiatives was sought under the umbrella of “Innovative
Technologies, NGV and Measurement”, because all these programs aim “to foster and further
the deployment of forward-looking low carbon technologies” (Page 69 of the EEC Application).
In the EEC Decision, the Commission rejected funding for the Innovative Technology, NGV and
Measurement Program Area based on “insufficient evidence” at that time. In particular, the
EEC Decision (on Page 26) states:
…Terasen acknowledges that further refinement of this program is required and indicates
uncertainty as to whether an effective program can be developed over the funding
timeframe. The Commission Panel finds that there is insufficient evidence with respect to
the nature and scope of the proposed program, and accordingly rejects the Innovative
Technologies, NGV and Measurement program expenditures at this time. Terasen may
wish to bring forward projects in this program area for consideration as they become more
fully developed.
Thus, although the Commission rejected the funding “at this time,” it did not reject the
possibilities that NGV programs be developed. Additionally, there are two other relevant parts
of the EEC Decision, discussed in the following paragraphs: (1) the approval of the TRC test for
evaluating programs by adopting the portfolio approach, and (2) the EEC stakeholder group
being established as the means of efficiently reviewing EEC program spending.
10.2.3.1.2 Recognition and Establishment of Certain
Principles
The Commission granted a number of other approvals, significant among which for the current
issue was the approval of a method for evaluating EEC initiatives. The EEC incentives for
NGVs meet the approved tests.
10.2.3.1.2.1 TRC Meets the Established Threshold
FEI assesses all EEC funding according to the framework established in the EEC Decision,
which involves, among other things, the application of TRC test, which measures the costeffectiveness
of the EEC programs.
The Commission discussed the application of a TRC at page 34 of the EEC Decision:
SECTION 10: INNOVATIVE TECHNOLOGIES PROGRAM AREA Page 206