FEI-FEVI 2010 EEC Report filed March 31, 2011 - FortisBC

2.2 Residential Fuel Switching
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Reduction in Greenhouse Gas (“GHG”) emissions is advanced by Terasen as a benefit in support of
residential fuel switching for TGI. The stated premise is that the substitution of natural gas for
electricity will reduce overall GHG emissions in the short term, by increasing the amount of
electricity available to BC Hydro to meet domestic load, thereby reducing its dependence on
imported power or, alternatively, allowing it to increase exports of clean power, thus enabling a
reduction in the regional use of gas or coal‐fired power. Terasen submits, over the longer term, to
the extent BC Hydro is able to meet its load requirements, excess clean generation could be
exported, displacing the use of gas and/or coal‐fired generation in the region (Western
Interconnection). (Exhibit B‐1, p. 63; Terasen Reply, p. 5)
Terasen states that “[t]he primary objective of the fuel‐switching offers is to promote the most
optimal balance in energy share between electricity and natural gas, preserving BC Hydro’s
generation and transmission systems for its [sic] highest value – in running lights, computers and
other technology.” (Exhibit B‐1, p. 64)
Terasen proposes to spend $3.7 million in the residential fuel switching program area. It is
proposing that only new construction fuel switching programs be offered in the TGI service area
but that both new construction and retrofit fuel switching programs be offered in the TGVI service
area.
Terasen proposes to spend the following amounts on fuel switching programs annually, over the
Funding Period.