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
justified after the fact in a Report. FEI requires the flexibility to move funds to programs like the
EEC expenditures for natural gas vehicles so that programs can be designed and implemented
efficiently within an approved funding envelope. The measure for determining whether or not the
expenditure was made appropriately is the TRC test, and FEI’s reporting obligations permit the
regular assessment of FEI’s expenditures. The Commission addressed reporting obligations on
page 42 of the EEC Decision, and expressly anticipated that shift in funding within the overall
approved envelope would be allowed provided that such a transfer is transparent and supported
with reasons:
Commission Panel directs that the annual EEC Report include the following:
• TRC, RIM, UC, and Participant test calculations of DSM at the Program Area
initiative and individual measure levels in addition to the total Portfolio level
reporting. Reporting of the Residential & Commercial EE program areas should
also be made at the New Construction and Retrofit levels.
• any inter and intra Program Area initiative funding transfers, with supporting
rationale, and the impact of such transfers on the transferor and transferee
Program areas, initiatives, and measures as the case may be. [Emphasis Added]
• data for fuel switching programs should be tracked in a manner which allows for
reporting types of fuels replaced by natural gas, including estimated GHG impacts.
While this direction does not authorize spending outside of Commission-approved Program
Areas, it does speak to the use of funds within those approved areas being managed by the
Companies, with accountability to the EEC Stakeholder Group regarding the funding decisions
as part of the annual reporting. Once the 2010-2011 RRA NSA was in place, with its
recognition of funding for Innovative Technologies, FEI proceeded to design incentive programs
and used EEC incentives in line with the approved tests. The oversight of those decisions
occurred in the context of the EEC Stakeholder Group, in the same manner as with all other
EEC spending. For the Commercial NGV Demonstration program, the EEC Stakeholder Group
was consulted on three occasions, as outlined below in Section 10.2.3.3.2.1.
As described in the Evaluation Strategy of the Commercial NGV Demonstration program (in
Section 10.1.5.2), fuel consumption data will be tracked and reviewed annually to determine fuel
switching benefits and program roll-out approaches. This data will be used to calculate and
monitor the estimated GHG emission reduction benefits.
10.2.3.1.4 Summary: Providing EEC Incentives to Natural Gas
Vehicles is Consistent with the Principles
Contained in the EEC Decision
While the EEC Decision rejected specific funding for the Innovative Technologies Program
Area, the Decision establishes certain principles and provides framework for the Company to
consider when developing and bringing forward programs in this Program Area. Specifically,
the Commission:
• Recognized the benefits of high to low carbon fuel switching in the residential context;
SECTION 10: INNOVATIVE TECHNOLOGIES PROGRAM AREA Page 210